Transcripts For CNBC Closing Bell 20240713

The very best in the future and delighted in the knowledge that well be seeing him stauchoften. Having established and shown us how its done, on and offscreen, youre an example to us all, particularly the younger members of the onair talent like myself and courtney bill, thank you. You know, when the stakes and nerves are high, hes a mentor thats taught so much to so many of us, both directly and indirectly while his career cant be topped, bill also taught me to look at life as a threelegged fool, work, family and friends, and faith. Hopefully, weapon fi find a newc here with his new position as anchor at large. You know what he would be doing, he would be telling you that we have 59 minutes of trade, and in record close watch. Here is whats driving the action this afternoon. Stocks hitting record highs once again with the s p 500 poised for its straight fourth week of gains. Boeing weighing on the dow of troubles raise new red flags for investors. And Consumer Staples leading the charge joining us, charles bre zzincoy pretty bullish you are i would say a year ago, we had people talking about a recession coming, an inverted yield curve, people worried about brexit we had people worried about a trade war. A lot of those problems have gone away, but we havepeople too cautious about the economy the u. S. Economy has grown 3. 2 per year over year over the last 60 years im saying its going to be a little over 3 , which i think is a down the middle forecast, but people take that as amazing growth i think theyre still conservative charlie, stick with us. Youll be us for the hour. Well focus in on the big stories were watching here. And were also covering a pair of boeing stories. Phil lebeau has new details on the boeing 737 max saga and Morgan Brennan is at the Kennedy Space center well start with seema at the exchange at record day for the stock market and while nike shares may be down today, comments from management on the strength of the Global Consumer is noteworthy, mentioning growth and emerging markets you compare that to what fedex ceo fred smith earlier this week that germany is struggling and china slowdown with will continue, it illustrates the strong consumer, weak backdrop u. S. Steel is down over 10 on a dividend cut, weak guidance, whereas carnival with its focus on the consumer is up 8 after reporting better than expected earnings seema, thanks so much for that one name sitting out todays rally is boeing, the worst performer in the dow for the week as a hole phil lebeau has the latest on the 737 max and another airline pushing back the return date for the plane. Wilf the significance here is that were now starting to see cancellations creeping out to june, which means theyre starting to threaten or potentially could threaten the busy Summer Travel season. Thats where the Airlines Make their money. United says they will not be flying the max until june 4th. Meanwhile, Spirit Aerospace out of witchta, kansas, has announced today it will be halting 737 max fuselage production they get about 57 of their revenue from the boeing 737. Theyre going to try to assess what theyre going to do for the 12,000 employees there in witchta. In terms of big numbers, guys, this is the one the focus on total cancellations of max flights here in the u. S. , go back to the grounding in march, all the way through when theyre supposed to come back on the schedule, 145,000. Thats how many max flights have been canceled and will be canceled going into spring of next year. Take a look at shares of boeing. We remind you that max production, it is going to be stopping in january on a temporary basis. Not surprisingly, Spirit Aerosystems trading in tandem with boeing under pressure over the last year. Guys, back to you. I guess that 145,000 is higher if you factor in the other region on the point of other regions, we talk so much about where the faa is in terms of the timing and likelihood of when it might reissue authority. What about european regulators do we have any inclination of how close they are the brazilne nesians and othr working closely with the faa it doesnt mean as soon as the faa authorizes the plane to fly again, that youll hear the same thing, but they wont be far behind the expectation is that it may be a week, two weeks, maybe three weeks at the most that they are going to say, okay, weve been looking at the same data as the faa regulators and theyre going to sign off on it as well. Got it. Thank you very much, phil. Were keeping you up to date with all of these continual delays sticking with boeing, the companys star liner spacecraft failing a key part of its test Mission Today after launching from the Kennedy Space center in florida. Morgan brennan is there with the details. Hi, morgan hi, courtney. After another painful week on the commercial side, boeing really needed a win in its defense, space, security business instead, star liner suffered an automation malfunction in this first flight to space, meaning that it will not be making its intended trip to the international space. I asked nasa administrator Jim Bridenstine earlier where the financial hit would be felt if the timeline slips back even further. He said, theres no doubt therell be an impact. If there is a setback, obviously, that can have feedback when it comes to maybe a provider not being able to win the next contract. Whether its nasa or some err commercial company that wants access to space for the value of microgravity thats up to those commercial companies to figure out. Reporter so star liner is part of nasas commercial crew program. Its a multibilliondollar program alongside spacex, which has one more safety test of its own before humans can board its capsule, which is called the crew dragon. That first manned flight for spacex is expected in the first half of next year. As for star liner, a lot of questions marks and a lot of unknowns in terms of next steps, largely because right now, everyone is focused on getting that vehicle back to earth in a safe and successful landing, one thats expected to happen as early as sunday morning. Morgan, thank you very much, for following all of those details for us all day long. For more on this, lets bring in chad anderson, a spacefocused firm with investments in more than 30 space startups including spacex chad, thank you for being with us here today. How much of a setback is todays failed mission for boeing especially its a big one for their space and security business, especially this is eight years in the making and they were in the final stretch and this was a key milestone. It was a big deal. Can they rethink things this was a big milestone, a big test this was a dress rehearsal eight years culminating in this milestone. To miss this is a pretty big deal, i think. This is really fresh so i think were waiting to see exactly how this shakes out, but already, you know, spacex was talking about launching a q1 next year. Boeing was out to mid2020 this might push them out past 2020, leaving spacex with a launch vehicle for u. S does this help spacex not that that i haeyve had a ss history, but does this give them a leg up certainly they were already in the lead. And i would say theyre firmly in the lead. They were already planning on launching in q1. Theyve already done this milestone and passed this milestone. So i think that whats most interesting about today and whats so significant about today is wily in a completely different paradigm than eight years ago when this program started and when we shut down the Space Shuttle program. Today, were not reliant on one company or one program we now have were tracking 500 Space Companies that have raised 25 billion over just the last ten years boeing has a setback today, but spacex still pushing ahead and theyre going to be launching in q1 that said, without the centralization and organization that nasa traditionally brought, has the u. S. Fallen a little bit behind its rivals or perhaps a bit less far ahead than it used to be with its rivals in the kind of whole space arena . I think weve stuttered in our benchmarking against ourselves. So the Space Shuttle program when it was canceled in 2011, that was pretty bankrupt and we expected to have this commercial capability online in a couple of years. That didnt happen so now its been eight years, right . And weve had this gap during this period, weve been paying the russians 80 million a seat to get us to the space station until these capabilities come online. Remember, boeing was a safe bet here spacex was a relatively unknown quantity when this started and boeing was a safe bet. And it shows day got twice as much money to do essentially the same work that spacex did. And now spacex is farther ahead . Charlie, when you look at the landscape for space, you have some companies that you could be invested in, certainly boeing, part of their business but you also have Virgin Galactic doing Something Different than todays launch, at least is this an interesting area for you, because the future is so unknown and opportunities could be vast . As value investors, this has got a lot of the things we dont like it has very little proven. It has a lot of different competitors. It has huge upfront they would pick a provider and many providers to spread the jobs out around the country and that world has become much more competitive today, much tougher to pick a winner what about boeing stock, though i would have said before today that everything that had gone wrong could go wrong and this happened. As a good chicago company, we think its very well positioned. Longterm, very well positioned. Its going to be bumpy, but now with all of this bad news, now is a great time to be looking at it chad, i want to pivot back to the Space Investments you guys have made. Are they all private market investments, or do you start to see a bit of value in the Public Market in terms of pure space plays whether thats Virgin Galactic or others this has been a monumental decade for commercial space, without a doubt. Ten years ago, there was no entrepreneurial opportunity in space to speak of. It was really a handful of defense contractors. But that is no longer the case today. Were tracking hundreds of 500 plus companies that have raised 25 plus billion so were in the early phases were seeing the First Companies raise Venture Capital. Some of those are going on to be acquired and weve just seen the first ones start to go public. But were just scratching the surface and on the edge of something really big still to come, carnivals stock higher is on the back of earnings, but making headlines for another reason today as two Carnival Cruise ships collided off the coast of mexico. Well speak with Ceo Arnold Donald in a cnbc exclusive interview coming up next and as we head to break, heres a check on our data tracker. The final reading of Third Quarter gdp coming in at 2. 1 . That matches estimates and consumer sndpeing also matching estimates, climbing 0. 4 in the month of november pch. Closing bell will be right back welcome back to closing bell. Let me send it over to mike santoli. He has todays market dashboard. Going to start with an extreme tilt that would be the extreme skew of the stock indexes to the upside and what that might mean for the shorter term time for a reversal. Look at the sector and performance breakdown for this year and ask whether we might see some turn about there going into 2020. Not standing still, whats supposed to be kind of a boring state, Asset Allocation, balanced strategy between stocks and bonds was anything but boring this year and well take a look at that. And long, sharp horns. The bulls are starting to get aggressive so a sentiment check in the next hour an extreme tilt, though. Take a look at a twoyear chart of the s p 500 this is not only catching last years dramatic drop, but also the january 2018 weve kind of obliterated all of that i think the key thing right now people are looking at is that you kind of have these trend lines here where the market has been riding the upper end of it for quite a while right now. 3230, i mentioned earlier this week, its been a common shortterm target for a lot of traders, as maybe the upside extent of this rally youre definitely stretching things to the upside, but its also been a very older rally, its not been hampered by a lot of divergences the bond market is diverting whats going on here not too many holes in the bullish story. It definitely looks like a clear breakout, but it does get stretched. This is from ned davis, looking at the last few times actually, all times that the market has had a 10 rally in 50 days, as we just have, and that the rally was not proceeded by a big drop so basically, the market was only down 6 before this run what happened three, six, 12 months later well, three months later, you actually didnt have a particularly strong proportion of up versus down, but on average, you were slightly higher 15 up, 11 down scenarios also, out of six months. And basically, you had an average annual return of 9 but also 6 down and the last five times this has happened, theyve all been downover the last six months. Its merely a tactical point to say, hey, the market doesnt always kind of keep giving you more once youve had 10 over 50 days, guys mike, thanks so much for that see you again in a little while. Now, Carnival Corporation stocks soared after beating the str streets estimates on thetop and bottom lines joining us now in a cnbc exclusive interview is Arnold Donald ceo of carnival cooperation. Thank you so much for joining pups good afternoon, arnold. Good afternoon, wiffle, courtney, charlie. Good to be with you guys we definitely want to talk about your excellent Earnings Results in just a moment but if we can, arnold, we want to start with this collision between two of your cruise ships earlier today. Were playing some video of it but talk us through what happened here and first and foremost, if everyone was all right. First of all, everyone is all right. Thats breaking news for me, to be honest with you but in cozumel, we had the carnival glory she had a collision with the carnival legend, which was already docked theyre both now safely in port. You know, our highest responsibility and our Top Priorities are always safety, environmental protection, and compliance and so, you know, we will do a deep investigation on this, but most important thing is the ships are able to sail, they can continue on with guests having a great vacation theres no major damage to either ship. Theres some damage to the glory, which will be i believe the glory, which will be repaired shortly. But everybody will be able to continue the sailings, people have booked on either ship will be able to continue their vacations. There were some minor injuries as people tried to leave the dining room, but everyones fine and i know theres been one or two individual ship tragedies in your industry in the past and thankfully, of course, this is far, far from a tragedy but have there actually been a cruise shiptocruise Ship Collision before how confident can we be that this wont happen again . Occasional, theyll touch or bump in this case, well have to do a full investigation there was probably a sudden squall, or wind, that pushed a ship but occasional, ships will touch. In port, of course, you try to avoid that again, this is not a serious any collision we take seriously, but theres no real major damage to the ships and no one was injured, seriously injured if we can towner your Earnings Report today, you did beat expectations for both profit and revenue and looking towards the next year, your bookings are so far higher than what we saw this year, but at lower prices can you explain what youre expecting for the year to come our guidance, we gave Earnings Guidance of 430 to 460 at the midpoint. That would be yet again another record earnings. Were enjoying record book occupancy at this point, the high test weve ever had in the history of the company we do have headwinds in europe, especially in germany and in Southern Europe, where in germany, this year in 19, there was afterpretty sudden downturn in Consumer Attitude about overall travel we had a great increase in capacity in germany, 20 increase so i was very proud about doing that, but in that environment, its tough to get yeartoyear yield increases. However, were still very profitability. Germany is one of our highest return on capital targets. But as we look ahead, we will look to perhaps moderate Capacity Growth in germany and Southern Europe to reflect the macro head winds there and our guidance, we reflect a continuation of trends but macro headwinds, are you seeing them broadly, because 2020 bookings seem to be pretty strong overall, what was your confidence that the macro Consumer Outlook for next year the bookings are strong theyre strong everywhere. But again, when you have that level of capacity increase, and an environment where people are overall traveling less, its tough to get the kind of price increases that obviously we like to see in the u. S. , in the caribbean, things are very strong we have were ahead on bookings and ahead on price, so on so the north America Market overall is strong. And europe is strong its just hard to get the yeartoyear yield increases but we are growing profits there. Today, you also announced that youre canceling eight sailings of the new mardi gras ship because of a delivery delay. Can you explain whats going on there . What is the reason behind this delay . Yeah, what happened, we have what we call prototypes. We also had a delay with a ship thats sailing today were very happy about that. Shes set and sailing for the very first time, one of our newest ships she was a prototype and previous to that. Our nova was a prototype those prototypes sometimes get delayed because theyre brandnew ships. Usually the second, third, fourth ships in the generation of ships, you dont have that. So mardi gras is a similar class ship, but special for the carnival brand and she will be delayed partly because of the delay that was experienced with the costas miralda. The guests will be well taken care of, they have future cruise credits and the mardi gras will be a fabulous ship meanwhile, we launched carnival panora panorama, which is sailing now from the west coast, that happened now in 2019 and that ship is doing well, as are all the ships. Theyre all heavily booked and guests are very excited to visit. Well, thank you for joining us here today, Arnold Donald, the ceo of carnival on a day thats a bit complicated for the company. Complicated, but were good thanks, donald. Thank you very much. Charlie, you are a holder of the stock. Were owned Royal Caribbean in a much bigger position. Historically, people thought of carnival as being the better operator versus royal, higher returns on capital this is a extremely capital intensive business, and thats really flipped royal has something they call the double, double program, which is double digit Earnings Growth per year and doubledigit return on invested capital and theyve achieved that. Carnival hasnt quite kept up with royal royal stock has gone from 5 in 09 to 130 today carnival has had nothing like that kind of appreciation. Carnival is trying to get its swagger back these are good numbers today still happy holder of both. Im a very happy owner of royal. Im an expectant holder of carnival there we go gracious way of putting it charlie, thank you shares are up about 8 today. We have about 35 minutes left before that sounds. After the break, two firms out with bullish notes on apple today, including one highlighting the big opportunity for airpods in 2020. 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Org or shop wherever you see the st. Jude logo. We have a new alert on softbank josh lipton has details for us hi, josh so we have some news here on softbank clearly going on the defensive here, after that really revealing critical story in bloomberg businessweek, discussing its culture the head of Division Fund writing to his employees in an email obtained by cnbc, really shooting down these rumors of disarray internally within the vision fund as partners, saying, clearly, weve made some mistakes along the way, as weve acknowledged were learning and we welcome the scrutiny, but we cant accept unsubstantiated and reckless personal attacks on our employees. This was a story that was tough on softbank. It was tough on masa san coming on the heels of softbank trying to raise its second vision fund. Guys, thanks so much for that just scanning through that, rather pushing back on pretty strong, as you said, article from bloomberg switching forecas ining focus, t word on the street Piper Jaffrey raising its price target citing interest in 5g and bernstein out with a positive note on apple as well, air pods could be a profit generator moving forward that stock flat on the day, but up 77 so far this year. Next, wells fargo raising its price target on citi to 87 from 97 to 85 jpmorgan are offering their price target from 150 to 125 the firm cite can go improved credit and rate improvements for the banks calling the extended stay of citis activist investor a popular catalyst for the stock. And susquehanna raising its price target on nike from 115 to 106 per share. Calling nikes bead on earnings quote evidence of nikes strength across geographies, categories, and channels outgoing Ceo Mark Parker addressing his transition on the Earnings Call last night as most of you know, this is my final quarterly Earnings Call as nikes ceo. I strongly believe the best time to make change is from a position of strength and our brand and our business are as strong as theyve ever been were focused, were competitive, were creating a future of our own design most of all, the time is right because of the team we have at nike and of course, john donahoe, himself. Charlie, are you interested at all in shares of nike so, full disclosure, john rogers, our ceo, is on the board of nike. So we dont own it, but just as an outside observer, hes right, things are going extremely well. The brand is as in as good shape as its ever been. The problems in china people worried about after the Houston Rockets dont seem to have materialized everything is clicking and of course, that can be dangerous, because this is a fashion conscience business, but, boy, things are going well. His to upgrades go for the cheapest and the most expensive. I was just going to say that. And it kind of highlights the ov overall theme. The interstate environment is a bit more encouraging i think jpmorgan, everybody loves, jamie dimon is a wonderful banker, citi, everyone hates. I think the price disparity is too much there citi trading well below book the name we love in the middle is Goldman Sachs very cheap, great positioning, but not loved the way jpmorgan is thank you very much, charlie. Well, its time now for a cnbc news update with sue herrera hello, courtney hello, everyone. Heres whats happening at this hour prrp has accepted an invitation from House Speaker nancy pelosi to visit the chamber that impeached him just two days ago. The president will deliver his state of the Union Address on february 4th an Early Morning shooting at public works building in wins n winstonsalem North Carolina has left two people dead witnesses say the shooting stemmed from an argument between two workers. Police have yet to identify the gunman, but say there is no further threat Facebook Says it has remove separate pages that were posing as news organizations and public figures. Its all part of facebooks efforts to keep fake accounts from spreading false information. And Health Officials may be getting closer to figuring out what is causing lung illnesses in people who vape the cdc is calling a former of vitamin e a very strong culprit. You are up to date thats the news update this hour guys, ill send it back down to you. Wilf thanks very much. Coming up, charlies picking a name thats been a big underperformer so far this year. That call, straight ahead. And later, theo poshmark joins us to talk about the ipo landscape and the lastminute Holiday Shopping rush. And heres a check on bonds. Treasury yields on the rise once again today, capping off pretty sizable jump for the week. The tenyear note is currently yielding around 1. 9 , sitting at 1. 97 closing bell will be back after this brakes screeching okay. So, today youre going to leave your phone with a guy named flip. ding but its more than your phone, its your business, your customer data, your sales figures. And who can forget, those happy hour selfies . Not flip. honking, gasping this isnt working. Introducing samsung Business Security solutions, with knox software. With the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isnt. Samsung business solutions. Welcome back to the closing bell. Weve got about 24 minutes left of the session lets take a check in on the sector heat map. All 11 sectors are higher. The sector heat map is coming. Well, i can tell you, confirm for you that it is all 11 sectors are Higher Energy leads the charge up a full percent followed by staples towards the bottom of the pile, you have the likes of financials and Consumer Discretionary well, here we have about 23 minutes left to go here are the three things driving action today stocks hitting record highs once again. The s p 500, poised for its fourth straight week of gains. Boeing weighing on the dow after united delayed 737 max return and part of a spaceship test Mission Failed this morning. All s p sectors are higher today. Utilities, Consumer Staples are leading the pack with gains of around 1 . With just 23 minutes left of the session, lets get over to mike for the second installment of the market dashboard. Yeah, going to actually take a closer look at the sector breakdown and say maybe its time for a reversal or sturdy enough to continue this is the breakdown from best to worst of the sector so technology, Communication Services, financials, they are the only three sectors to actually outperform thes p 500 this is on a price basis, not including dividends. So that shows you, obviously, its been a little bit of a fewer winners than losers, but really on an outright basis, no losers energy, obviously, barely kind of doing midsingle digit returns. The rest of them clustered so its a pretty positive story. Youre not going to complain about being up, you know, 25 in industrials on a yeartodate basis, even though it didnt beat the s p 500 there is a strategy that some have advocated over the years of buying the second bestperforming sector in a given year, as a bet on outperformance the next year it doesnt have necessarily a very robust history to it. But it has worked on balance over time. So that would mean Communication Services in this case. But really, that is a dramatic thing. Apple, no small reason that technology is just far and away, has outpaced everything along with semiconductors. Thank you very much, mike well continue this conversation a bit with utilities, one of the betterperforming sectors today. Well get to seema mody for a better look if investors should own this space next year hey, courtney a growing number of companies are trying to incorporate initiatives that make them more environmentally friendly and this trend is actuallytaking hold in the utility sector as well, exploring renewable energy, powersaving projects and the smart grid s p global conducted a comprehensive analysis of companies that are actively trying to reduce their carbon footprints and three u. S. Companies were highlighted thats one Way Investors could say bullish on this sector plus, high dividend yields, more than half of the sector still boasts yields higher than 3 and one name im particular to watch is Nexterra Energy thats the largest producer of wind and solar energy. Its one of the most favored defensive stocks on wall street, despite being up around 40 this year 90 of analysts on the street still have a buy rating on the stock. Guys, back to you. Seema, thanks so much for that a quick view on the sector, charlie . I want to call this out there are a number of sectors that are very tied to the Interest Rate. This has benefited from the high dividend yield, as we still have very low Interest Rates. Were predicting that Interest Rates will be ticking up next year thats not going to be good for utility stocks people have been hiding in these names and searching for yields we would frankly be recommending that people not move into utilities. Thanks for that meantime, a news alert on Citadel Securities ylan mui has the details the dow jones is reporting that the scc is investigating the ipos of slack and other unicorns listed on the New York Stock Exchange over how they handled the first days of trading. Citing sources familiar, the dow jones has sent letters to Citadel Securities over how it opens slacks stock for trading. Specifically, they are looking for emails that may have been sent before those first trades as well as the policies for complying with the rules of the exchange now we will point out that we have reached out to the s. E. C. , they have declined to comment and we have not yet heard back from citadel ylan, thanks very much for that thats an interesting story, of course, some of those being not full ipos as opposed to being direct listings. Weve got 19 minutes left of the session. We are set for record alltime closes once again. Healthy gains for all of the indices and all 11 sectors object son the s p are higher and shares of u. S. Steel are getting crushed. Well dive into whats behind that drop. As we head into break, win beneo is higher by almost 8 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. Dont get mad. Get e trade, dawg. Welcome back 15 minutes left of the session heres a check on the closing bell big board. The three major averages all set for record closes. In the middle, some of todays dow leaders, merck, verizon, and cocacola. And the biggest dow laggards at the bottom, nike, boeing, and cisco. Well, we have just 15 minutes left to go, so charlie, what is your last chance trade on this last friday before christmas . Ive got a new name today that i havent talked about before we talked about how everything was going wrong for boeing another company that everything is going wrong for is mosaic the Fertilizer Company used to be part of cargill it was spun out on its own and literally everythings gone wrong. Last year, it rained heavily and they lost an entire planting season thats like macys missing christmas. There was a big flood in their mine down in brazil. Theres been a competitive outbreak of too much capacity coming on. But the good news is demand for fertilizer grows every year as populations grow its a product that works. It produces more Agricultural Products demand for Agricultural Products is going to go up. The stock right now is trading at about 70 of book and its almost impossible to get a new Phosphate Mine licensed because of the environmental impacts. So this is, we think, the bottom right now in terms of whats been a very tough year and its up as well today a couple of their competitors have announced cutbacks in production the industry brought too much capacity onboard now a bunch of those mines are being closed there is a sense that supply and demand is coming into balance. The stock has done pretty well the last couple of weeks in a week, up about 13 but down 27 yeartodate. The lastchance trade is mosaic this is now the last commercial break well take before the close. We will bring you uninterrupted coverage of the final minutes of trade when we you take you inside the market zone, next spotlight. And a drumroll, please. [ hisses ] [ hisses and snarls ] [ bell chimes ] lets dance and now the icing on the cake when i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. 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Lets kick things off with boeing under pressure after the boeing star failed a key part of its nasa mission meantime, boeing still feeling the fallout from the 737 max crisis United Airlines pulled its max aircraft offschedule until june. And a key supplier for boeing will end large deliveries for the max. Boeing, one of the biggest drags on the dow today and down 3 for the week mike, we were talking about this earlier. Felt like it couldnt get much worse. For the week as a whole, it could have traded down more than it has, given how much its been there was what seemed could have been an important little bounce one of the days this week, it started lower. I dont think you could have looked at the way its traded and say that sentiment has washed out there has been this hopefulness that were going to get to this point where we can get through the Free Cash Flow burn and all the rest of it the stock is trying to hang in there. Very hard to say whether thats going to be the low, ultimately. Amazon is track to deliver 3. 5 billion packages by year end. Kate rogers has more details the tech giant says it is tracking to hit that big 3. 5 billion number global ly this year amazon has been growing its fleet of delivery planes, trucks, and vans as it takes on fedex and u. P. S. Fedex ended its relationship with amazon over the summer, while u. P. S. Continues to deliver. Morgan stanley estimates to Amazon Logistics delivered 20 tact of its own packages last year and nearly 46 through august of this year. Amazon stock is up about 20 yeartodate, as is u. P. S. , while fedex is struggling, down more than 8 for the year. Back over to you guys. Kelly, thanks so much charlie, do you feel like enough of the bad news is in the fedex price now, or do you actually think that u. P. S. Is due for a pullback to match some of the underperformance weve been looking hard at this it has the wonderful value attributes that we like. They werent making that much money off amazon before when they had the business. The problem is that amazon that fedex, excuse me, is about flying packages around the world. And whats happening now, its shorter land delivery. Its going from a warehouse in cleveland to a house in cincinnati not the airplane that made fedex so profitable. We worry about the capex and frankly its been a tough thing to be competing with amazon in any business i found it interesting they called out weakening economic macro conditions it does Say Something about the global piece its a little bit more exposed to the macro conditions that theyre probably citing than u. P. S. Is, which is a somewhat more domestic business but at some point, investors are saying, you cant all beat the macro. Its very interesting i wonder what ends up with happening with amazon and if that brings up more antitrust concerns they probably say, maybe its a necessity, but its not particularly a seamless valueadded activity for amazon. Its struggled value added perhaps for the customers, which is always amazons end goal. For investors, remains to be seen shares of u. S. Steel plunging after the company cut its dividend and released Fourth Quarter guidance well below the streets expectations. The Steel Company also announcing it would idle a portion near detroit and lay off nearly 1,500 employees on pace for its worst week since september. Charlie, when you look at u. S. Steel or the sector in general, opportunities there . These things have moved around the afraid talks, last year, when the first tariffs came out, people thought that be wonderful. And its been good and bad a very capitalintensive business frankly, too capital intensive for us we have been passing lets move on and talk about carnival we, of course, were talking about it earlier trading higher on the back of earnings, but earlier today, two Carnival Cruise ships collided off the coast of mexico. Ceo Arnold Donald joined us exclusively with his reaction. Well do a deep investigation on this, but most important thing is the ships are able to sail, theres some damage to the glory, which will be i believe the glories with tglo be repaired shortly. But people will be able to continue their sailings. There were some minor injuries as people tried to leave the dining room that was impacted on one, but everyones fine t the stock trading up today. Whats interesting, in addition to carnival being up, Royal Caribbean and norwegian are two of the top ten stocks on the day following carnivals numbers. It seems the market issing with to give the benefit of the doubt. Pretty cheaplooking stocks. If the consumer is in decent shape, thats the triangulation rationale people are using maybe not stellar results, but good enough in this kind of market i was just wondering how much we can extrapolate from Consumer Spending on Something Like a cruise and carnivals results based on their commentary to Broader Consumer trends. Its a good question. Obviously, its relevant to Broader Consumer trends, but what i always find amusing, when times get tough, the cruise l e linlin lines have this line saying, were a countercyclical. Sturdy pricing is better for them than not. And consumers can handle it right now. I would just point out that the outlook is actually for better booking, but at lower prices, which is a little bit disappointing to me. Carnivals outlook. Yeah, which is to me, better than maybe peopled that fared, but not particularly good. Youre standing yet youre close to selling this stock. The stock went from 80 to 50. This was hit hard. And they havent had the wonderful operating performance that royal has had so i think we have said that the market overreacted that these ships are in place, theres not a lot of new capacity coming, the market will tighten up and the business will be better. We need to see some better results. And we did ask the ceo about exactly what you said, with the outlook for higher bookings, record levels, but lower prices. A concern for others mark has more on the market internals on what seems to be a bit of a defensive day its a little lukewarm. Its positive, but it doesnt reflect an up day. New highs versus new lows. I keep pointing it out new highs swamping new lows versus where weve come from a year ago thats a positive. And take a look at the microcap etf. Youre starting to see a little more speculative activity. That up almost 5 , close to double the s ps performance two minutes left of the session. Lets get a check in on bonds and rick santelli. You know, wilf, its been a big week, especially if youre looking at longdated treasuries and or sovereigns across the globe. Look at a oneweek of tens, up nine on the week, even though its virtually unchanged on the session. The dollar index also recouped lots of its losses this week over a penny recouped from last fridays lows. And if you look month to date, you can see the improvement. If you hook in an extra month, you can see now how nasty november was reporter the nasdaq on pace for its seventh Straight Record close, five dozen alltime highs on the index today, including ame amd, which is the best stock of the year, doubling this year havent seen a down week since the end of september marriott, its not just chips, also at an alltime high, and that one looks like its on a record run, nine straight weeks of gains and tesla today, once again hitting an alltime high second straight session above 400. Looks like its getting ever closer to that notorious 420 high seema, i wonder whether elon musk will tweet when it reaches there. Bertha, we are at the 30second record close for the s p 500 right now. The dow is close to the highs of the session, up a hundred points, led by shares of ca caterpillar. Small caps have been really left out of the broader rep bound weve seen in large caps the index now about 4 away from a new high and thats due if part to that weaker dollar environment. Theres carmax, weaker than expected earnings. Theyre down over 6 theres the closing bell. The s p 500 at 3220. Dow jones industrial now up 73 welcome to the closing bell. Im wilfred frost. Lets check in on how we finished record closes once again major averages up, all of the sectors in the s p were higher, led higher by Energy Utilities and health care. That relatively defensive tone as courtney was just mentioning. The dow up about a third of one percent and the nasdaq up 0. 4 joining us to talk about the market day, Charlie Bobrinskoy at aerial investments. Still with us liter with peter shekini at Kantor Fitzgerald mike, wilf pointing out the defensive tone and yesterday we mentioned we might see some interesting moves today because of it being an options expiration day and the last friday before christmas but relatively quiet session it was really more of the same the market continues to levitate in a calm way. Seasonal forces. It seems like whatever they had in the risk budget, lets spend it down and turn it into stock it seems to me that the bull case is certainly very plausible, its just also very well known everybody seems to be broad agreement on why the market is doing what its doing. And the question is how far that can go right now, things appear stretched. It wouldnt be surprising if now was the time when it took a little bit of a rest pete, god od to see you and have you join us ive got to ask, you were fairly bearish coming into Fourth Quarter. I think what we missed was really just momentum and sentiment. Markets get well overbrought and well oversold. And just as this time last year, we were having a conversation where the market was at 2,400, i saw to recession for 2019 and pa really for 2400 and thought fair value was somewhat closer to 2800 or 2900 thats been our position while uncomfortable for sure, this is reminiscent to me in terms of how stretched sentiment is of 1999 we have valuations that are really, really excessive, by almost every measure pricetorevenue, 2. 3 times. Enterprise value of ebitda and the s p at about 14 times. I could go on and on we could talk about price earnings ratios on an ltm basis of about 21. 5 times. The market did not have any Earnings Growth this year. The yield curve inverted, something we forecast. The trade war was prolonged, also something weve forecast. All of the conditions prescient to our caution in the second half occurred. But at times, sentiment overwhelms the sort of rationale analysis that were supposed to be doing as strategists. So what did we get wrong we got sentiment wrong on a risks are behind us narrative. And by the way, listen to fedex, listen to u. S. Steel i can go on and on those risks by my estimation are not behind us. Whats the catalyst for this pullback that you still expect and how big a pullback do you think you can see the timing, we have gotten wrong. It is difficult to see how much longer this rally on sentiment can last catalysts can be numerous. Sometimes its what i call the weight of water. Meaning people just kind of wake up to the fact that markets are pricing in a perfect scenario, which is exactly what theyre doing next year. Earnings expectations for next year are plus 10 . And the market has completely looked through what was going to be flat Earnings Growth for this year the market has rallied almost solely on buybacks and multiple expansions any hiccups in earnings in the first quart Fourth Quarter could be one of those catalysts. The one area i would disagree is i think people are not excited enough about the economy. Were predicting a 3. 2, 3. 5 gdp growth since world war ii, the u. S. Has kbro grown an average of 3. 2 per year so were saying an inline growth rate. We have a stronger consumer and a lot of the fears american ceos were very worried this year. I think theyll be spending more money next year, so well be modestly bullish on the economy. The final reading of q3 gdp was 2. 1 for q3. Peter, where do you stand for the q4 yeah, look, i think our assessment for gdp is, obviously, a bit more bearish. We think that the data will start to roll over the consumer has been extremely dependent on the credit markets. Real wage growth has been lackluster at about 0. 8 relative to about 1. 6 during that period of time during post world war ii credit is really, really important for the market Earnings Growth, relatively flat next year by our estimation, so corporate profits will not be a driver and look, monetary policy, a very important piece here. Not as efficacious as it used to be, globally as well in the u. S. , it doesnt have much room to cut and lastly, the benefit of the tax cut is really in the Rearview Mirror here, and i think thats an important, alongside what are massive deficits, which are impacting the credit markets, in the repo market specifically, and the fed is increasing the size of the balance sheet. But thats the counteractive dislocation that happened in the repo market in september mike, looking ahead to next week as we think about the santa claus rally timeline, it begins, right . Tell me when the actual thats right. Its supposed to be, i guess, from christmas through new years or maybe through january 2nd or Something Like that but basically, its more like a negative test. Historically, it shows you if the market does not go up over a few days, its often some kind of a warning for the First Quarter. Its not so much saying it always goes up over that span. But obviously, weve put a lot in the bank in terms of gains already in the First Quarter im not sure that it will be that significant 2 gdp, inflation, and 2 tenwreten tenyear treasury yields that is fine although valuations are now higher over most of the time weve had. Something could come along to disturb that idea that were going to be in that zone mike, to charlies point, if we had a 3 gdp growth next year, is that a kind of bad thing or good thing or depends on where bond yields go . I think its a good thing you would have to know what the counter to that would be in the way of what happens to longer term bond yields this bull market has done made no progress with bond yields on a net basis of up 2. 5 maybe it will, but it hasnt if you get to that point and have that test, is the fed really, really resolute in doing nothing in that type of environment . Im not sure but that would be the thing the look for stocks finishing the week in the green. Well send it over to seema mody for a look at the biggest winners and losers s p now riding a fourweek winning streak thanks to further evidence of the Consumer Holding up well as we close out the year strong earnings from conagra brand. And retail ended up being one of the betterperforming sectors for the s p, led by shares of gap, up 7 no surprise, industrials, transports were the laggards on news that boeing is halting production of the 737 max, shares of ge but fedex by far the worst performer in the s p on weak earnings, lowering its 2020 kbi guidance as it doubles down on investing and ecommerce on rival amazon as we look at 2020, can you give us some of your best picks well, we want to buy whats out of favor and inexpensive and not buy whats in favor and whats expensive when you talk about the market, thats counting the amazons and the apples and the microsofts. So the spread between nasdaq and value is very wide so were saying, value stocks are going to do better were saying bond substitute stocks are going to do worse, as Interest Rates go up and we think theres going to be a little bit more inflation. So things like Fertilizer Companies and maybe even Energy Stocks are going to do better next year in a strong economy. Charlie, you are big on the likes of blockstone and kkr, theyve done very well youre also very big on lazard, hasnt done well are you still bullish on that . Its because black tonne and kkr were partnerships and couldnt be owned by the indexes. And lots of money has been flowing into indexes they made the smart move to convert into c copperrp. S both were up literally 90 lazard is still a partnership and cant be owned by the s p 500. Its trading at 11 times earnings, where blackstone is close to 18. Were hoping they will see the light and convert to an s corp peter, whats your top pick for next year . I think we like reits i actually think the tenyear will have a lot of trouble getting above 2 or 225 rates will go lower on the slowdown we expect and reit reis tend to be very slow cycle its not easy being the grinch we appreciate your honest perspective on whats going on and whats to come thank you for joining us coming up next, well talk to former twitter executive katie jacob stton out anabher new femalefocused Venture Capital fund why she says now is the right time to launch closing bell is back in about 90 seconds 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. So wim 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. Welcome back to closing bell. New Research Shows Venture Capital funding by allfemale Companies Hit an alltime high 3. 3 billion went towards all female founded companies while thats an increase from 2017 and 2018, it still only represented 2. 8 of capital invested one vc fund is looking to increase investments in Companies Led by women and other underrepresent eed groups. The funds founder and partner joins us now katie, i dont understand why theres only 2. 8 of these funds going to female founders it doesnt make sense to me. Are there not enough female founders no. It doesnt make sense to me either i think its great opportunity i think that there are a lot of amazing female founders and a lot of amazing people to have color founder who have been left out of the system and theyve been underestimated. And im really excited i think of this as this amazing opportunity to be able to back their changing world positive ideas. And katie, does it also mean that there are bern returns potentially available because of these founders and their companies have been overlooked thus far and therefore maybe the valuations or the Growth Opportunities are better relative to the market absolutely. The data has shown that when you have more diverse founders and more diverse leadership teams, youre able to see a lot better financial returns. I think that this is an enormous opportunity for more women founders, for more women Fund Managers and more female investors to be able to move the Industry Forward so why is now a good time for you to launch this fund . And if there is a female founded company out there thats listening, can you explain exactly what youre looking for . I think its a great time, because i do think that founders are looking for Something Different. Theres a lot of capital out there. And founders are looking for people like me, looking for other types of investors who have operational experience and product and marketing and bringing products to scale globally theyre also looking for people that may have a different industry expertise in climate and Life Sciences and other types of industries. So i think there are a lot of opportunities, more ways to get funded im looking for exceptional founders who have these world positive items im always looking for at least one technical founder. And looking to, you know, learn more about them. Katie, its been a bit of a trap for people to predict the peak of the Silicon Valley cycle. At least five years, it seems like things have been rolling around for a while what businesses, what types of businesses do you think have a lot of opportunity right now that people ahave not fully explored to date i think there are a number of new trends i think well see a lot more ai, Machine Learning types of Software Companies i think well see a lot of really interesting enterprise companies. We know those have been really good to invest in. I think beyond meat and impossible burger have really led the way for more food tech and ag tech. And imvery hopeful well see whole new wave of climate tech to be able to address some of the pressing challenges that we have in front of us. If you found a really great Investment Opportunity and the numbers looked phenomenal, but the founder wasnt in some way from a minority or female, would you still consider it or not absolutely. I do think that, you know, its important to be able to back the very best founders, but i also think its good to be intentional about making sure your deal flow is representative of the real world. So im looking to back any kind of great founder and supporting them with different types of network and operational experiences to help them achieve their investigation. Katie stanton, thanks so much for joining us thank you very much for having me. Still to come here on closing bell, we will break down the charts to explain why the traditional portfolio strategy of 60 stocks, 40 bonds may not be coming obsolete, as some claim. And later, we will discuss enomrccoans veha be faring this Holiday Shopping season, particularly the resale players when we speak exclusively with the ceo of posh marc powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back lets get over to mike for the third installment of todays dashboard. A very basic traditional Asset Allocation strategy, 40 bonds, 60 stocks. A lot of people are saying that for various reasons, it might actually be obsolete or dying. Look at the total return this year, including income on top of price kbgains of the vanguard fund, its about 20 yeartodate the very longterm average for this Asset Allocation mix is about 8 and look at the smoother ride that you go with those bonds diversifying you the jagged move with stocks. In a very strong year, the stocks are always going to outperform the starting bond yields right now if you were to invest fresh money in this strategy are 2 to 3 depending on corporates or treasuries or whatever thats basically what your return will be over the longterm. They say, whats the opportunity . Thats basically where inflation tend to be they diversify you it seems like that effect that has not gone away. Its worth the reminder that you shouldnt ditch this idea, because buying yields seem low its quite interesting. 21 this year. Obviously, starting off of a low base but bonds have done so well. I guess the fear for the traditional holder of that type of portfolio is that the worstcase scenario of a big equity pullback because rates are rising means you should just hold cash. And it doesnt hurt to have some of that in there, too it would have an exacerbating effect we havent really seen that so far. Its something people will fear coming around the corner. Coming up next, black rocks says this years rally will carry over into the new year find out where he sees the biggest investopportunities for investors, straight ahead. Which names are shaping up to be the big winners thats later here on closing bell. speaking japanese where am i . woman speaking french are you crazy nuts . Cyclist pip pip woman speaking french im here, look at me. Its completely your fault. man speaking french ok . Its me. Its my fault . No, i cant believe how easy it was to save hundreds of dollars on my Car Insurance with geico. pterodactyl screech believe it. Geico could save you 15 or more on Car Insurance. 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. Welcome back heres a look at the closing bell big board. Record highs for all three of them then weve got the bestperforming sectors today. A fairly defensive tilt, but a very positive day overall. All 11 sectors higher. Underneath, a quick glance at the tenyear note yields, picked up nicely over the week. Slippage for gold and oil. It is now time for a cnbc news update with sue herrera hi, sue. Hello, courtney hello, everyone. Heres whats happening at this hour Austin Police say one person has been arrested and charged with kidnapping a mother and her infant daughter. Investigators had been searching for Heidi Broussard and her baby for more than a week last night they believe they found the baby alive as well as the body of broussard inside a houston area home. A woman was dragged by a car after being robbed in a st. Paul, minnesota, parking lot this weekend the woman was not seriously hurt the images were caught by a Security Camera and police think this is a string of purse snatchings in that area. The queen of england began in norfolk today to begin her christmas break at the royal family sandringham family estate her husband, prince phillip, is not with her he is spending a few days at London Hospital for observation after being admitted this morning. Andrew bailey is being admitted a as the new grn of the bank of england. He has spent a majority of his career at the bank and will have the task of steering britain i through brexit back downtown to you, wilf i dont envy him that task of getting the country through brexit going to be a tough one. Well, yes, but i think it much tougher for the Prime Minister and his team than the central bank governor, who has to finesse the thing to the edge that was a picture of the chancellor, who announced that it would be andrew bailey, whos seen as a safeand sensible choice hes been in the bank before and has headed the ft arna, since t. The question mark for the bank of england is that there is already inflation. So if we do see the economy improve a little bit, there havent been any rate hikes like the fed went through over the course of the last couple of years. Theres potential for a hike if brexit doesnt derail things well have to wait and see we will wait and see, indeed. Have a great weekend thank you and have a wonderful christmas thank you, i, too li will not be here next week the msci world index hitting alltime highs will the rally continue and whats the best place to put your money joining us, Portfolio Manager of black rocks Global Allocation Fund ross, good afternoon thanks for joining us. Thank you, happy holidays like woowise what is your outlook for the economy next year . We think the economy looks fairly solid its not going to be a return to the late 90s we think between the strength of the u. S. Consumer, and the pivot by the world Central Banks earlier in the year , the basic underpinnings look relatively stable and it should be a year of decent, maybe uninspiring, but decent growth for the global economy. And so that means stay in equities it does mean stay in equities i think the real question for 2020 is when are those gains likely to occur and what types of equities are going to do best would you stick with some of the winners . As i look at the nasdaq 100 performance, up 37 yeartodate, those big tech names still look attractive to you . I think for the most parts, they do. Were still in an environment where there are segments of the economy, and i would name technology, communications, health care, parts of the Consumer Discretionary space that are benefiting from very powerful secular tail winds. This is where we see cash flow generation, profitability, sustainability and Earnings Growth and if were still in an environment where its decent growth, but its not the type of growth that produced the value rally in late 16, we still believe a lot of those secular growers like technology, you want to stick with them into 2020 what about overseas equities . Overseas is going to be a bit trickier you know, this has really been a decade where the u. S. Has dominated. We expect that to continue into 2020 that said, we know most investors have too much equity in the u. S we would diversify outside of the country, we see some of the best opportunities in asia, particularly in emerging markets one of the places weve been overweight in the global allocation portfolio has been china. Its been a bit of a rough ride, but youve seen some tremendous performance out of the more domestically oriented companies, particularly in areas like internet commerce, which are just taking off in asia. So speaking of domestic versus international, if you look at your expectations for the dollar, how would that play into your theory for 020 and what makes sense here . So the dollar is always critical the first thing with the dollar is the dollar does affect financial conditions it does affect liquidity if we had a much stronger dollar, that would be a bit of a head wichwind for u. S. Equities not our base case for 2020 we think the fed is on hold and we think that some of the softness weve seen in europe is probably passed a little bit of a better growth environment which means that should esuppsu some of those emerging markets we spoke about do impeachment and the election concern you impeachment, this is going to play out, i think so far this week, we saw a big yawn from investors. Part of the reason for that is no that its not critical, but most people have already discounted the outcome, which means that trump will be impeached in the house hes very likely to not to be acquitted in the senate. I think the election will be a big deal and this is one of the reasons when we think about 2020, we expect a decent year for stocks. We think that the gains may be disproportionately experienced early in the year, particularly in january, because as you great into february and march, attention is going to turn to the election and it may be a longer period than people are expecting. Now, this could go all the way to the convention. Thats going to produce some uncertainty and thats why we think a lot of the gains might be earlier in the year russ. I wonder, thats a fairly, i would say, standard take so why are people going to decide not to recognize that the lerks uncertain election uncertainty is coming and im wondering about the cadence of things as we get into next year. I dont think its just january. Its a totally fair point. But you think about some of the things that are supporting stocks into the beginning of the year you have a lot of momentum generally, its been a strong rally, but a lot of people did not participate. Particularly retail investors. We saw a massive sellin of stocks for much of the year, etf and mutual funds people come into the new year, they put new money to work, particularly after a strong year like 2019. So i think were going to see some early momentum in the year. When the election starts to affect markets is an open question, because it does depend on what happens inary, new hampshire, and south carolina. Duh bu as we get into the spring, we could see a bit more volatility russ, we were talking earlier about the 60 40 portfolio split, do you think for the next decade, holding mondays will be a good diversifying tool against equities or not . I do believe it you know, this is something that as your previous guest mentioned, has been thrown out many, many times it continues to work and i think the reason it continues to work is youre still getting that hedge from bonds in your portfolio. And the reason is, stocks and bonds continue to trade with a negative correlation and i think thats likely to continue the times that you see that changing, tend to be times where you either have seen an acceleration of inflation or a more hawkish tilt of the fed thats not our base case and the thing that typically share s investors is normally fears about growth in those types of scares, bonds actually work as a better hedge than cash, which is why we would stick with the 60 40 allocation going forward. So what is the biggest shark close to the boat . In your opinion . The biggest risk to 2020 for your base case you know, we were just talking about that today the big risks are not as obvious. Throughout much of the year, we had china and brexit, both of which have temporarily been taken off the table. I think the issue is still, are we going to see something in policy, the u. S. Election is potentially one catalyst that undermines confidence, whether on the corporate side or the consumer side, that starts to erode at this very fairly constructive scenario many of us have that could be a game changer, but for now, we think the economy looks fairly solid and we remain tilted towards equities going into 2020 well, thank you very much, russ, for giving us your outlook for 2020 thank you up next here on closing bell, we will discuss how facebook chief operating officer Sheryl Sandbergs legacy has been impacted by the companys scandals over the last decade. Plus, the ceo of Ecommerce Company poshmark tells us what protections they have in place to ensure products are authentic when closing bell returns. [grunting] [maniacal laughter] gold. 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. For facebooks Sheryl Sandberg, 2010 saw the highest of highs and the lowest of lows. Cnbcs digital Sal Rodriguez is here with more, having written this article on cnbc. Com, sal, its titled, heres how Sheryl Sandberg plunged from global icon to just another powerful tech executive its a great read, sal i recommend everyone go to cnbc. Com to read it. I wonder whether the term plunged in the title, you feel, really sums things up. When you read the full article, i dont feel like youve come away thinking that this decade has been that bad for her at all. Yeah, well, thank you, wilf, for having me. I think the word fits in that her highs were just so high at the start of the decade, right she took, you know, facebook from 2 billion in revenue in 2010 to projected 70. 5 billion in 2019. And all of that success, you know, it made her a billionaire, it made her a board member for the company, a female icon in the Business World and a household name across america. But more recently for facebook, following the Cambridge Analyticas scandal, all the election interference, thats really been a dent for the company andalso for sheryl as well but do you think that that some of those scandals, like youre talking about with Cambridge Analytica and the election interference has damaged the progress that shes made for women in the workplace with her lean in books and the like well, i think it certainly has its made a dent in her reputation i think specifically, with the scandals, Cambridge Analytica, there was a report last year from the wall street journal that Mark Zuckerberg blamed her specifically for that whole mess so that along with some of the criticism that her book lean in, has received from people who point out that, you know, its not very encompassing of, you know, minority women or women from lower social classes. That has really damaged the progress that she had made prior to all of these scandals sal, thanks so much for joining us i recommend everyone go to cnbc. Com to read the full write writeup thank for having me well, coming up next, fast fashion. Secondhand Ecommerce Company po poshmark taking more traditional retailers by srmto, but can it combat customers authenticity concerns well hear directly from poshmarks ceo thats straight ahead. Each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Welcome back the major averages closed at new highs once again today, as Trading Volume soared on wall street seema mody has the details for us thats right. Despite the holidayshortened week coming up, today was the heaviest single volume day of the year, doubling the 50day average, and that is because its the third friday of the month, also known as quadruple witching day, the quarterly expiration of stock and Index Futures and options. Volume on ttripled its 30day average. K see on the bottom, 145 million shares exchanging hands. Typically, you would see a number close to 57 million certainly notable as stocks close at record highs. Thank you, seema. Something we discussed a little bit earlier in the show. Online secondhand shops gaining ground poshmarks boasts 50 million users with one sale made every second and the resale market is growing ever more popular among millennials and gen z consumers. Thank you for joining us theres been a lot of talk about the resale market in retail and you see retailers like macys trying to experiment and trying to figure out how they might be able to tap into this market, with one of your competitors doing a Pilot Program with threadu threadup we have had a couple of different conversations, havent finalized a direction there, but it is a huge trend and something that i think gen z and gen y are really latching on to. And its gaining very rapidly. So your platform works perhaps a little different than some of the other platforms, where the sellers of the goods for the most part retain the goods themselves and theyre in charge of posting the photos, doing the descriptions and posh marc is the platform that connects the buyers and the sellers. You take a 20 commission and the buyer ends up paying for the shipping so im wondering when you have products exchanging hands sort of peertopeer and there isnt poshmark getting involved and touching or seeing the product, what do you if a product is misrepresented for a buyer so we have a sort of threestep process in terms of making sure that the transaction goes smoothly. The first thing is really validating the content that the sellers are posting online and so that is something that is a constant process of both using Machine Learning, community moderation, andcentralized moderation to make sure that that content is as good and as high quality as we can we have over 100 million items posted at any given point in time the second thing is protection that we offer for buyer and seller and the way that the transaction works is that the after the buyer has had the item and they have accepted it. If they have a problem, they dispute it we value we verify the dispute and have the item shipped back to the seller for items 500 and over, we actually physically authenticate them they go through something called posh authenticateand we physically authenticate them and reship the items to the shopper. And with that last program, you do say shop with confidence knowing that your purchase will be 100 authentic 100 of the time how can you guarantee that im not sure if youre familiar, but cnbc did a pretty indepth investigation with the real real with a similar promise and it turns out they werent able to do that 100 of the time one of the challenges in authentication as you pointed out in that article and as we see that is we can do our best and we try to eliminate as much as the defects as possible, but the world continues to innovate very much like with what you saw with highend paintings and the qualities of fakes can sometimes be very, very high so we try to extend the warranty, and if you have other problems, even after youve received that item, we try to serve you as best we can for example, for some of the more exotic things like channel and others, where you may have vintage jewelry or bags, we employ external authenticates to help verify. Theres no such things that can be 100 guarantee, but we try to get you that 100 guarantee. Manish, i wonder if you do analysis on what average price discount your products go for from their at least, most comparable original value. Are we talking people buy stuff and exchange stuff for 10 of its original value or 90 . Its typically between 50 to 70 off from sort of suggested retail price there are items that will only go for 10 to 20 , some items may go for a premium a lot of items may go for 90 off. It depends on the popularity of the item, the age of the item, the quality of item, and then sort of the recirculation value, you know, for example some of the belts ive bought, theyre barely 20, 25 off, at the same time, sometimes ill be shirts that are almost 80 off their retail price so to what extent do you feel like the brands consider you as a direct rival i would imagine if these are old items with huge discounts, it doesnt bother them too much but if youre talking only 20 discount, i imagine the brands dont like you very much i think we are sort of talking to brands, weve partnered with several brands and i think this sort of continuum of retail and resale is something thats being triggered by the consumer. Were not sort of necessarily always creating it were giving away for the consumer to participate. And when you think of Something Like gen z, theyre obsoleting their items. They focusing on building out these communities that we offer them a way to move the item forward. And ultimately a nice Pa Partnership with brands will work very well and before we let you go, we should ask you about your forward plans. Are you looking to ipo, similar to what we saw from the real real, perhaps . We certainly can comment. I think the business is scaling very nicely. We have distributed over 2 billion to our seller stylists and continue to see the business scaling, both for gen y and gen z and certainly some of the core commerce. So well look at the right plans in 2020. Its a nice decade opening up. Manish, thanks so much for joining us thank you for having me still ahead, were only five days away from christmas and retailers are expecting a huge shopping surge in the next few days mi uhatoat, wt wch congp. Clpriority. The number one i would declare a state of emergency on day one. Congress has never passed an important climate bill, ever. This is a problem which continues to get worse. Ive spent a decade fighting and beating oil companies, stopping pipelines, stopping fossil fuel plants, ensuring clean energy across the country. How are we going to pull this country together . We take on the biggest challenge in history, we save the world and we do it together. Apple card. Is a new kind of credit card, created by apple, so its simple and transparent with a new level of privacy and security. It lives here and here on your iphone, and it will save you 6 on Holiday Gifts at apple; like iphone, apple watch, airpods pro and so much more. Apply in as little as a minute, right in the wallet app. Welcome back lets send it over to mike for the final installment of todays dash board. A long more sharp horns waved around the market from the bulls. The we cannily check of bull and ber indicator. A measuring of positioning and sentiment the we try to gauge if the market went to successive highs as bullish orb optimistic theyre. Your at the 18 month high for the indicate are this gave you an excellent buying ton overshot to the downside back in august and september thats about almost a twoyear high because it gets you back to the spring of 2018 however, on a longer term chart you can see the upper bound of extreme bullishness is not that close. This suggests there is room to have people get more aggressively positioned and in a better mood before this gives you a clear signal that the rally run its course. That last time we went above the extreme bull was when. This is the run to january of 2018 and then you plunge from there i think it was last around the levels in march, april of that year on the way down. In terms of the other indicators, overbought oversold. Theyre getting there more overbought which just means a strong rally and shortterm indicators mood indicators suggest people are bullish right now but not in a way that says they are positioned in a speculative aggressive way. Got it. Thank you, mike. Up next, the wall street look ahead, the key things every investor needs to watch when we head into a new trading week when closing bell comes right back what if numbers tell only half the story . At t. Rowe price, hundreds of our experts go beyond the numbers to examine Investment Opportunities firsthand. Like a biotech firm that engineers a patients own cells to fight cancer. This is strategic investing. Because your investments deserve the full story. T. Rowe price. Invest with confidence. Welcome back looking ahead to next woke in the final stretch for Holiday Shoppers with christmas just five days away court is standing by with a look at what that means for retailers. But new home sales due out monday and diana here a look at that. New home sales have been choppy this year but improved from last year the average rate on the 30year fixed is full percentage point lower than a year ago. Housing starts have been improving this fall and Builder Sentiment at the highest level in 24 hours. At supply of existing homes for sale is slim the wildcard will be affordable. Well pay close attention to the price numbers on monday. Back to you. Diana, thank you for that. Were just five days away as we said from christmas. Headed into the final stretch for shoppers and retailers courtney has a look at what means for stocks. Makes sense the final week before christmas always sees significant volume for retail. But this year more critical. Six fewer days between thifgt and christmas and the overlap of hannukkah and christmas happens this time too. 56 of shoppers will still buy the final gift in the week leading up to christmas. Tomorrow is called supersaturday, the nrf expects nearly 148 Million Consumers will shop in store and online. Thats up from 134. 3 million last year. It could make it the biggest shopping day of the year, though shopper track puts tomorrow at number two for stores. Either way a huge day. Standard shipping for christmas ended midday today for target. Com walmart. Com and amazon. You have more time for macys and nordstroms you are taking a risk. Be careful. Im in the final 56 . Me too. But partly because calculated decision, the pound may have recovered but still weak in any general term ill do it back there. This study that you mentioned court did not account for arbitrage of currency. You dont have to think about a about that. Im making the most of it. So macys and nordstrom do they do anything different that allows them to guarantee it. Such a great question i dont know that in particular. Because i would have thought that target or walmart would have had extended days comparison to macys or frord nordstroms especially with the proximity of the stores and the omni channel i was surprised when i checked on it. There was a 12hour benefit to macys and nordstrom i think its risky though. Mike spins to the broader markets. Clearly record closes, strong volume and near the highs of the session at the close. Its unassailable and a completely 1807 from a year ago. A year ago earn was negative people selling stocks hand over physical and a great buying opportunity. Its not the opposite right now. Because uptrending markets tend not to turn on a dime in the country shendo the ways the ones going down do. Worth keeping in mind if you felt smart for buying the panic, how do you feel when you have the exub rans. Fair point. Closing at record highs for all three major averages again today. That does it for closing bell. Fast money begins right now. Yes it does courtney and wilf thank you very much live from the Nasdaq Market site over looking times square, this is fast money im Brian Sullivan in for melissa again. Hi, tim. Your traders tim selmer carter worth and guy adami on fast its been a no good bad woke for boeing opinion rumbling the max could be out of service until summer well talk about the impact from the stock straight ahead plus ripple makes a splash the jaw dropping valuation that Crypto Company locked in thanks for get going. And check ou