Transcripts For CNBC Closing Bell 20240713

We want europe to take some of necessary prisoners, they came from several countries well, none from greece, so far. Good. Youre lucky youre lucky we have a lot of people right now in prison, isis fighters, that are tough fighters, and they are where they should be. I think we have done a fantastic job, but eventually, we want to be able to let iraq run its own affairs. Thats very important. At some point we want to get out, but this isnt the point. If we do get out, weve spent a tremendous amount of money on building airports, one of the largest embassies we have in the world, mike, and we want to be reimbursed for the various costs weve had. Well work something out i talk sanctions, but im only talking sanctions if were not treated with respect we have to be treated with respect. Ill tell you what, with what we did excuse me, wait wait wait one second with what we did with isis, and this was done during my administration, because it was a mess before we got here with what we did with isis, we have done the middle east and a lot of other countries a tremendous favor. Yeah, go ahead reporter turkish population in eastern are you willing to talk to your counterpart and yeah when youre talking about libya, youre talking about libya, and many of the other countries, i spoke with the chancellor of germany angela, and we talked about that subject specifically, libya, whats going on. Well be talking to russia, theyre involved a lot of countries are involved with respect to libya, and its right now a mess they do know where we stand. We have a very distinctionive stand. We have meetings set up. Were going to see if we can work out some plan for peace i think its important mr. President , may i make one point . One point on this issue. I think it is important to point out that the agreement signed with turkey and infringes on greeces sovereign rights, and causes great concern in an area of instability, so were very much looking to your support to make sure that these types of provocative agreements are not being put into place, and i think we should refrain in general in the east and mediterranean for any sort of activity that inflames passions and doesnt promote Regional Peace and security we are looking forward to your support on this issue, because it is a very important issue for my country. Reporter mr. President , the Iraqi Government says it sets u. S. Forces to leave the country after after the letter it received that was received by mistake, the general said. What do you think . I dont know about the letter i understand it was an unsigned letter, so maybe i could let mike speak to it i dont know if it was a hoax or unsigned or what the reporter but the Iraqi Government is saying that they expect u. S. Forces to leave. I think its the worst thing that could happen to iraq. Iran would have a much bigger foothold that i can tell you. Well see how it all works out i know its going to work out well for us. We want to bring our soldiers back home. I will say that we have had tremendous support from the people of iraq appreciating what we have done, and they dont want to see iran go into iraq. But theyre neighbors, and over a period of years, something will happen. Well see what that is what was said yesterday i didnt know about. What is that, mike i just know there was a draft letter that was a draft, unsigned, and the media knew that. The iraqi people understand that were there to help them stand up the iraqi people were not happy when the suggestion was made yesterday that we were thinking about leaving at some point. They were not happy, but at some point we will want to leave. Steve, go ahead. What reporter are you ready for the senate trial whenever it is. Its become a laughingstock all over the world there was nothing done wrong the two articles sent are not even serious, and by the way theyre not a crime the republicans voted approximately 1960. It was never meant that way, as they said, by the founders it turned out to be a totally partisan hoax, witchhunt. Frankly its been going on from before i came down the escalator with our great first lady. This has gone on for three years, and probably longer than that it would be interests when the facts are release d in many ways its the greatest hoax ever perpetrated on our country its one of the great hoaxes ever it started with an illegal document that turned out to be false. The fake document that you know so well, the dossier as they call it, and it went on from there. It was set up by a bunch of dirty cops and others working with the dnc, working with the democrats, and from the day i ran, from the day i was elected and probably before that substantially not probably. If you look at the insurance policy, the insurance policy was long before that that means before i ever goat elected they were working on something thats so illegal i assume that would be announced some time in the future. The impeachment story is its just a continuation it really is a shame that we cant focus on all of the things you know, today we talked about iran, we talk about iraq, we talk about economic development. We have the greatest stock market weve ever had in the history of our country, the greats economy in the history of our country, setting unemployment records, employment records also were going to have almost 160 Million People working we have to work on this partisan scam its a shame we have to take time, is a shame all right. Thats about it. One more. Go ahead. Reporter will you be okay if john bolton it was he indicated that he would if he was subpoenaed. That would be up to the lawyers, up to the senate. Well see how they feel. He would know nothing about what were talking about, because if you know, the Ukrainian Government came out with a strong statement, no pressure, no anything. Thats from the boss, thats from the president of ukraine. The foreign minister came out with a statement that was equally as strong. Frankly if you look at it, and you look at everything, all they have to do is read the transcripts. You take a look not just at one. Look at two transcripts. They were absolutely perfect there was absolutely nothing done wrong there was no false statement its crazy that its gotten to a point where, look, ukraine the president of ukraine said there was no pressure whatsoever there was no pressure in his country whatsoever by the way, in terms of the money, it got there two or three weeks ahead of excel, long before it was supposed to be there. There was absolutely nothing done wrong the one thing i look at it corruption, the other is i look at is why isnt france and why isnt germany, and maybe i could say why isnt greece, but why arent all these countries, why arent they paying why is it the United States always has to pay . In fact its in the transcript, but the press doesnt cover it why is it that the United States pays and it affects europe far more than the United States why isnt it that france, germany, all of those countries in europe that are so strongly affected, why arent they paying thats one question. The other question is always about corruption were sending all this money where is it going . Where is it going . The president , by the way, got elected on anticorruption. I think hes going to do a great job. But i appreciated the statement. Hes made it many times. No appreciate whatsoever thank you all very much. The president just wrapping up some comments there to the press alongside the greek prime minister, referring to the assassination of general soleimani, saying it saved a lot of lives and the he United States is prepared to goo forward. Welcome to closing bell. For more on the News Conference that just wrapped up, hi, eamon. Reporter the president touching on a lot of topics. All of the above there he was asked whether his former National Security adviser john bolton should testify in a Senate Procedure the president saying that will be up to the senate. Of course it would be up to the president whether or not if thats moving forward he wants to invoke any kin of executive privilege. The president on iraq saying the United States is not leaves that country anytime soon, though he does suggest he wants to get out of iraq, not putting a specific time frame on the withdrawal despite the nonbiding vote by the iraqi parliament, suggesting that the United States should leave. On iran, defending once against his decision to kill the top iranian general soleimani last week thats provoked this cries the president sending another strong warning to the iranians not to retaliate, but not specific in terms of what he might do if the iranians do take some sort of military action the president also suggesting here he would send some of the evidence of to capitol hill of exactly what it was the United States saw mar esper said about as much, an exquisite piece of evidence that will only get revealed to the gang of eight, the top leaders cleared to receive the most sensitive it intelligence. So presumably members of congress at some point will get a more detailed picture of why it was the president felt he had to take such dramatic action, as he did last week now the president clearly suggesting the United States is prepared to handle any potential fallout from his decision, guys. Eamon javers, in front of the ever whiter white house there with the snow fall behind him. Thats right. A quick check on the markets. We have just 48 minutes left of the trading session. Were mixed. The best performing sectors is materials. Joining us for the hour Short Hills Capital partner chief Investment Officer steve wyche. Are you surprised at how teflon this market as remained even with these big geopolitical events playing out im not surprised at all. Thats been the pattern we have seen the last few years, geopolitical unrest, a oneday event, thats typically lounge they last. They typically be an opportunity to provide you too whats a happening over there of course, oil comes to mind were now the predominant producer in the world. Theres a lot of production thats stilled bottled up. Thats the only thing that could hurt the economy, could hurt inflation. I dont see it happening this is not to say that we shouldnt be concerned about, but in terms of the Investment Case, that doesnt influence me at all it doesnt define the direction of the market. The market right now is just looking to First Quarter earnings if what we have seen from some that have been small, theyre going to be good, foxconn had their secondbest quarter ever up 25 percent sequentially thats after being down for the year look, i think you dont need to hit these lofty targets of 8 to 10 earnings growth. Im still skeptical about europe and skeptical about asia, though all you need to show is a pause in momentum, because the market trades on direction i think the direction will be fine. We are trading higher on the nasdaq with 45 minutes left to trade. Stephen is with us the furse show. Up next how the try is dealing with Higher Oil Prices, when we sped to ed bastian. And a check on the daily data tracker falling to 43. 1 billion, the lowest level in three years. 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We are edward jones. With one Financial Advisor per office, were built for hearing whats important to you. One to one. Edward jones. Its time for investing to feel individual. Lets check on some individual Market Movers today, apache, the Oil Exploration and production company, surging after it announced a major oil discovery. And gm is slipping after sales in china dropped 15 in 2019, the company says it expects the downturns to continue in 2020 ces kicking off in las vegas. Delta air lines announcing a number of new services and a new venture into robotics, delta is exploring the use of exoskeleton use. The employees can wear with helping to lift heavy cargo or machine sit. Machine sit a very good afternoon to you, sir. Good afternoon. Hey, wilf thanks for having me a lot going on out here. I bet weve had great coverage from our colleagues all day delighted for you to be a part of it. Tell us what youve been launching there. Not typical for an airline to be there, its an appbased expansion . Yeah, it was great. We delivered i delivered the opening keynote for ces, the first time an airline had ever done that. In fact the opening question that i was given is why is an airline here we have the most reliable, highest performance airlines in the industry, investing billions in dollars, in the inflight experience and now were doing to improve the ground experience. And that was an opportunity to describe that. In terms of the new technology aspect, to what extent is it for on the Ground Services for the consumers. Disappointed that free wifi is still not a reality. Were working on free wifi. Were committed, but it has to be wifi that has the expectations that consumers deserve. Highquality content, bandwidth and speed. Were not quite there yet, and i said this morning we will get there within the next two years, sooner if we can when we get there, we have to make it the same price on the ground, which is generally free. So you explained a bit about technology, helping the operations of delta. What about on the quiter facing side when we all travel, its become stressful experience, but have been really announced any technology for making my experience less stressful . Sure, that was one of the key things for the presentation, is we need to find ways to destress consumers as theyre traveling we all know theres stress in the environment, particularly in the ground experience. We announced, together with lyft, a close are integration, so when youre traveling on delta, yew the flydelta app, youll be able to monitor your arrival or destination information through lyft we unveiled a vision of the future, really a visionnary presentation whereby you dont even node to bring your bag to the airport. Why not, so its waiting for you when you arrive at the hotel you can go directly to a business even theres many, many things that were doing, but we have the credibility now its our opportunity to make a real difference with our consumers. Today the boeing saying its going to push for a Simulator Training for all pilots moving forward, but either way theres been a delay after delay to what extend do industrial executives like yourself losing fate whether its related to the 737 max, are you losing faith in the ability of this company to meet the promises it makes . Well, wilf, as you know, we dont fly the 737 max, so were not directly impacted by that issue. Weve been monitoring it weve been in touch with boeing around it. Yes, we do have concerns regarding what it will mean for future development, future technology in our space. We basically have two suppliers, airbulls and boeing. We need boeing to get through this crisis. That were waiting to order and they continue to push or industry forward, not just from an efficiency with cleaner emissions, but also better comfort for our customers. I have confidence in dave calhoun, but it is frustrating, yes. Is there a part of you that really welcomes further delays the 737, because the dont fly the plane, have there been some market share gains for you no were hoping for that plane to get in the sky. Youre right we have on the margin some additional revenue but all the other airlines have dover a good job of covering off their key markets. Planes move, they can fly to difficult revenue pools to make sure theyre protecting their key markets. When it does come back, im sure there will be marginal impact. Its not good for any of us to have that plane out of the sky. Ed, theres been a lot of focus on the Energy Market this week, after the events in iran after the assassination of the general. What is your outlook for jet fuel prices, as Energy Prices moved higher show are you focused on the cost of jet fuel Going Forward this year we built our business to be able to sustain shortterm shocks like this, you know, weve built on a model where we had to cover over 100 a barrel not that long ago. I think the industry is in a good spot. We expect oil to be on the range between 60 and 80. If it gets above 80 obviously theres decision we have to take, but theres no strange to our strategy were not seeing any real negative impacts i wanted to ask you about the investment you made in the Airlines Group is that a sign that you think the domestic is somewhat saturated, and if at the moment 72 of your revenue comes from the domestic market, where where will that number by in five years . Significantly lower . Well, its a fair point over time not yet, but over time the domestic market will become relatively saturated. You see how congested air travel can be were building bigger airplanes, bigger errantairports, but not r destinations over time, certainly as we entered the next century of our future, which will be happening in the next few years, international i think is the play we need to be thats why were investing in latam. Really important future partner for us were investors in virgin, air france, klm, korean, china eastern. We have taken a contrarian view we need to get inside, not just as commercial partners, but equity owners to try to bring a longerterm opportunity for us and them to the future thanks for joining us appreciate you guys having me ed bastian, ceo of delta air lines, joining us from ces. Switching focus phil lebeau has more on tesla delivers its first chinabuilt model 3 cars hey, phil. Wilf, a big day for elon musk well talk about the shareholders in a bit. First, elon musk, we dont see him dance very often, but he was doing it today, at the new giga factory plant, musk also told the crowd theyre planning more investments in china remember, as you look as overall deliver yes, sir, they did hid the guidance in 2019 of 360,000 or more, came in at 376,000. We will get the guidance for 2020 likely next month i mentioned the shareholders are having a big day now up at 400 at 471, up another basically 20 bucks today guys, even at 344, theres a lot of people saying those price starts should be moves higher. With a move like that, more ceos should start dancing. Thank you, phil. Well send it over to mike santoli for todays dashboard. Want to dance for you . I will not, but perhaps elon musk thinking that embarrassing videos are good for his stock price. Here are a few way to say regard the tesla overall value. These tell la in terms of stock market capitalization. Offly its been a slow climb, and almost got vertical, its now Something Like 82 billion for tesla right now. Gm and ford pretty stagnant. Theres another way to view it the enterprise value calculations, which includes not just stock market value, but also the net debt for each company, it shows you that the economic footprint of gm and ford is still much larger. A lot of the debt that they are reported to have held is really not corporate debt its basically vehicle financed debt its loans that are backed bick car receivables, things like that its not so much comp value, but nonetheless this still shows that as an economic entity gm and ford still much larger out there, but, you know, the market wants to value teslas future, and the past businesses. Now, let lookic at this list, a lot of stocks not tesla by far the largest, followed by a bunch of stocks that cant be in the s p 500. This is a pipeline, uber is not yet profitable sh shopify, and currently dr. Pepper, its mostly a private company. Tesla could be close to getting the four consecutive quarters. Maybe that makes them eligibility. Mike, thanks so much for that, stephen, this is another reminder of the extraordinary valuation multiple, even if you take away from the p. E. , which he know is a stretch for a still relatively even on a sales its an extraordinary comparison teslas revenue around 20 billion. Its very, very stark difference. I dont think there is a valuation to measure, but weve seen this before we saw it with amazon, we saw it with netflix the only thing that matters with tesla is, are they reaching making the goals that musk is setting out. So they achieve their guidance if they do, all that the market is trading on is fundamentals of this its ignoring valuation. How i invest im a skeptic, not a skeptic on musk, hes obviously brilliant its a waste of time for the valuation. It just doesnt matter if youre concerned about valuation at all, you dont own this, you dont own amazon, and you dont own any biotech stocks you do it for the milestones they reach. Down 16 today, acstin marti. Sure theres a prison affiliation there. We have just abo a britisn there. The nasdaq is marginally positive. Well be join by twitters ad rtrsf to discuss the new panehip and the impact of banning political ads. Were back in a couple minutes before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Sini wasnt sure. Clot was another around the corner . Or could things go a different way . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another, and eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be worth waiting for. Ask your doctor about eliquis. Here is our update with sue. Hello, everybody. Heres whats happening at this hour Senate Leaders from both sides of the aisle addressing the latest crisis with withdrawn from the senate floor. Iran was stronger and more lethal at the end of the president obama legacy than at the beginning. So i ask my democratic colleagues to not rush to lash out at president trump, when he actually demonstrates that he means what he says ive grown increasingly concerned about the strike against sole manu and what it might mean for the safety of troops in the region and the full of americas involvement. The red sox are facing allegations of sign stealing during the 2018 regular season a new report claims the team used their video replayroom to steal signs from opposing teams. The red sox won the world series that year, but they couldnt use this method during the playoffs, because baseball placed observers in all of the replay rooms. You are up to date wilf, down to you. Sue, thanks so much for that lets get back over to mike for the second installment of the dashboard. Investors, despite the fact that financial stocks were one of the best performing sectors, according to a survey, theyre not particularly heavily exposed to financial stocks. I was surprised to hear this it seems like a popular pick for this year. What it shows is over the last ten years what clients said in terms of being overweight, equal weight or underweight. This blue line shows the net value of net weighting essentially, so its overwaited minus underweighted. Its the lowest since to 12. By the way, in the year to 12, financial stocks outperformed the s p 500 by more than ten percentage points. It seems as if this could be a decent contraindicator if it reflects the aggregate mike, i agree with you, sort of surprising extent of that, they did have a good run from an incredibly cheap base, so i guess it puts it in that perspective as opposed to the valuations ever getting stretched. I do agree essential people feel maybe they had their move, and the beginning of last year they were appreciably more positive on the move. Mike, thanks so much. We have just 22 minutes left in the session at the moment we are down 81 points or so on the dow, well off the session lows, down 148 points. Up nexyot ur last chance trade, feature a redhot tech stock you dont want to miss it. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. This rounds on me. Eat. Hey, can you spot me . Come on in. Find your place today, with silversneakers. Included in most Medicare Advantage plans. Enroll today by calling the number on your screen or visit getsilversneakers. Com steve, whats your lastchance trade here today im going with alibaba. Since they had a listing in hong kong, youve seen greater about the in the stock its not just about consumers buying it, its about chinese, Insurance Companies, banks being able to buy it for the first time youll see more, probably j. D. , maybe trip. Com, but more so with china throwing so much liquidity into the system and the consumer and industry recovery, it will go to baba, and they are following the game plan in terms of the cloud and the web sure there are some issues on some opaque accounting, but so what you have to kim to grips with that how much further to be comfortable to ride this out its impossible to pick targets with certainty sometimes you cant trust them were suing a Chinese Company right now i. E. Car rental service, which went private, aftersh and the talha family that owns enterprise they partnered, ripped off shareholders in my view, so were in litigation with them. So you have to be careful. But alibaba, a big company, important to operate until the right circumstances, so i think momentum certainly with it at the moment, trading around 218 we have a news alert on impossible foods hey, kate. Wilf, thats right, impossible say its no longer trying to win a deal to supply mcdonalds with the plantbased burgers. This is according to reuters beyond meat is getting a bit of a pop on this news impossible saying it cant produce enough of its meat right now to partner with mcdonalds and that big partnerships like this dont do the company any good until it scales up even further. Mcdonalds does have a Test Partnership with beyond meat in canada, and impossible teams teamed up with burger king they announced a once again, as you can see, beyond meat moving slightly herer on this news that theyre banding effort to team up with mcdonalds. Kate, thanks so much for that we have got just 17 minutes into the session. Up next, well take you inside the mark zone for commercialfree coverage of the final mys of trade and cselo look of the big moves. Dont go anywhere. At leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Welcome back w50e6g9 just 12 1 2 minutes. Market zone commercialfree coverage of all the action. From Short Hills Capital, he is still here with us. Oil down nearly 1 as they assess risk. Michael worth on squawk on the street saying he doesnt anticipate significantly Higher Oil Prices at this point. We still have the attack last year on Critical Infrastructure in saudi arabia, and pretty quickly the market reverted to areas, you know, a price range where it had been before we continue to be in a pretty wellsupplied market, and this event while certainly is news worthy didnt fundamentally Strike Energy infrastructure or change the supplyanddemand dynamics in the market so i think certainly a reminder of the risk that exists in our business that fundamentally hasnt shifted supply and demand. Mike, we were chatting earlier with steve in terms of the impact, but best indicated by the old price, pulling back over a percent today. Just complete lid leveled off back to where it was it had been on a decent run before this, but i do think that right now just because of the supply issues, its not a market susceptible to kind of maintaining that big geopolitical premium certainly not in an anticipatory way. It would have to have some kind of disruption, perhaps its purely speculative market when i think of the number of investors like an andy has that was supposed to be, was briggian, and its where money go to speculate, youre just not going togenerate performance there. Heres the real news with boeing today and changes boeing will be this could delay airlines, and this will definitely mean the additional loss for boeing. For those that fly the max, theyre all expecting between april and jung to bring back the max. The big question will become d. It it was a report that Berkshire Hathaway might be gut in guys anytime you mention that its going to push that stock higher. Yet still, pretty disappointed with the company sure, they do is boeings in their fleet. Its not like delta doesnt, but yeah, theyre dispoppy are appointed. Not only with boeing, but really for the entire industry. Ive talked to them about this it makes people skittish even the people who fly the max donnell believe it will be a longterm impact, but no doubt this incident has had an impact on the airline instrument. Phil, thank you very much steve, what is your take on bose it seems like every day we get a new headline today shares of boeing are higher. Which the news hits, i dont know which way its going, but you do own the stock the Investment Case is very succinct i have two suppliers, boeing and airb airbus, thats all you need to know when regulation comes in it makes it tougher for other competitors who dont have access to capital. This is this is a brilliant move you ask yourselves, why wouldnt they ask for it particularly with their safety history, but it takes the cloud away. Will they or wont they . Its highly volatile, i get it, but i think its an attractive stock here. Erring on the side of safety seems to be the good decision here yes ye josh lipton, hi. According to new chip names moving higher, taking my chron to outperform, says dram fundamentals could improve earl quler than expected, as some natknown as launcheses tighten supply, he also upgraded Western Digital in part on better nan pricing, beating and race it says both names are still both attractive valuations, news from mike roar chip as well raising guidance, saying it continues to be strong bookings guys, back to you. Josh, thanks so much for that steve, talk us through that. I have positions in my chron, skyworks, smh. Its a very attractive space these companies have gotten smarter. Right now, those three producers talked about how cutting back on capacity, yet racing prices. Particular ly, its going to be one of the biggest investment cycles a 13 trillion opportunity, and they own the space all three of the major averages now in the red, though not too significantly. In the meantime, another state is a step close tore legalizing Recreational Marijuana Frank Holland looks at the trading today. 5 lower, as the competition increases. South dakota, it votes on legalizing Recreational Cannabis in november. U. S. Based producers are expecting a boost from those headlines, theyre falling as well analysts say conservatively. 70 are retail investors, and likely selling on the downturn i think theyre buying after they have bought all the supply in illinois, theres no fundamental story here theres so much capacity, so much acreage out of canada the reason why its being approved is for taxation purposes so its going to be very difficult to make money. Talking about commodity, you can grow is yourself im not giving away secrets, wilf it all happens along with decriminalization. Not much space in nigh apartment, so ill pass for now. You cant fit it next for the astin martin meg tirrell has an update. Boosted the stock of appellate, that would settled back down since then its a drug for a rare disease, which is also the tarik of alex ons 3. 5 billion drug. It showed analysts point out that there are some potential safety concerns like injection site reactions that that think they could hinder the adoption guys, back to you. Im going to stick with pnh quite a mouthful there the internals a big of slippage thats not dramatic one way or another. Pretty representative, i would point out, though, look at the fiveday chart in fact, every day within the span, if you had the visit daze, youve had a low made in the morning right after the close. Good es what today maybe finally too many people tried to make that 3we9 the low for the day on the s p is 3232. Were just a few points above that right now obviously the market is a bit tired, trying to figure out if we need to come off the boil in terms of the sentiment. Weve had a couple of those days led by selling internationally. Not actually the case today, but with some of nose geopolitical concerns. Just a tentative on epps, and somebody bought the dip. Until day, the pattern might be breaking. Two minutes left to go over to Rick Santelli has a check on the bond market. Hi, and thank you year to date of 10, we were in the 190s before thursdays issues presented themselves with the iranian hitman scenario, but we have finally started to move higher nothing shows this better than bund and europe. That would have been the highest yield close in almost seven months minus 30 finally the dollar index, look at this yeartodate chart this is the best close in a week and a half, because we failed the last time. Bertha, around lunchtime it looked like a 90, 92, but really reversed. We sort of faded here, but software has been a stand out, the fact that weve got a number of them at alltime highs. Retailers at highs today as well, saying that december spend trend data better than expected. They think it will be pretty good like ross, also at a historic high. And bob, we already have a handful all ready on the pipeline to go public this year. Over to you. Lows of the day for the Dow Jones Industrial average, just off the s p 500. Good day for Goldman Sachs, sort of reshuffling their financial disclosures. Good for them overall, but were losing some momentum here. Walmart is down three days in a row. Verizon has been down two days, lowers since november. Cocacola, much more about that later on guys, back to you. Welcome to closing bell. Im wilfred frost. Im Courtney Reagan in for sara eisen lets check in on where the markets closed red for each of the major indic indices. The dow is the worst performer of the major indices all sectors was dipping into the red. Terrible and Information Technology had outperform, but just in the red at the close still withes is stephen weiss. You know, i want to dial it back a bit a smidge higher year to date we came into in year obviously pretty much at a high, very strong year, very strong month, very strong Fourth Quarter the question was, do we have to cool off, shake out overly complacent sentiment new flows jed seemed like they wanted big growth charts, but in general i think were digesting what happened at the end of last year. Clearly we havent had a resounding positive stock to the year, but Still Holding up does that make sense to you when you assess the various assets class opportunities ahead . Yeah, it does i think Portfolio Managers assessed the news over the weekend. I spoke to some managers yesterday. The resounding conclusion is where else were you going to put money . I think equities are where still more investors will place their bets i think thats a great result given all the conclusions at the end of the year. I think thats impressive. Would you look at clearly its a safe haven trade. If youre fearful of a big explosion, obviously you want to Pay Attention there. Its a great hedge, but i think theres more optimism that is pessimism, and i think thats probably just that, a hedge. Steve, we glossed over a bit so far lightly better than expected yeah, i agree with that whats interesting about that, despite the headlines, you continue to see the consumer hold up. The services, you know, wee seen both disappointments and better than expected. It wasnt that long ago the ism send of disappointing, right its been very disappoint, look, the momentum continues here. Im surprised we didnt have more of a selloff, because so many people made so much money last year, didnt want to sell last year, and booked those gains, so i thought they would do it more in january. We really havent seen that. Though, you know, we dont know, right . Four days, its not like anybody had to rush to do itat some point in january, theres a bit of a givebash. To quiter on tuesday. Meanwhile, analyst raising their price target on tesla to 340 a share from 200, saying they give credit to tesla in multiple ways, but maintains an underperformed rating. Right now they were about higher by 4 in the session a lot going on and that run we have seen has been very incredible in the last three months. I reminiscent of several years ago where there was a similar run and the stock sprinted ahead, it stayed extremely overbought, shorts got murdered along the way, and it held for a while. It does go in these stretches where all that matters is theres a momentum to the story, not just a momentum to the stock. Right now i guess were in one of those phases. Its the dynamic where analysts try to move in direction of the stock. Yeah, a sort of begrudging price upgrade. Mark, where do you stand on tesla . Delivering cars, the short is where its at right now. That had to be the most brutal short of 2019. I think mikes right it reminds me of days gone by when you thought you were right with the fundamentals, but cant be short a stock our analyst is very bullish on the delivery numbers for 2020. The clock has clearly run ahead of its stock, and i mean its going to be a painful 2020 like it was in 2019 stephen, when we look at tesla, were thinking about things Going Forward, like the model y being popular. Is that a huge catalyst . I think youre clearly building in part of it. To me its amazing there are still shorts out there most of them had to leave the business its just been a painful short look, there will be competition eventually, but were not seeing it right . So with audi, you have great competition. The electric cars in europe, but not so much here so they own that market right now, and thats part of the scarcity value of their cars i cant own it here. If i didnt own it at 200, not here its out of my realm of investing, but i think it continues to go until it doesnt. All of a sudden the focus is were they 2,000 up, 1,000 down did they have real cash flow there was a lotof tricks that they used, and then it becomes a different conversation versus theyre now going to own china it goes back and forth. I mean, im still waiting for the solar panels to be, because more city was funded by spacic, until the government says you cant keep them governance is one major issue with this company. One of the big leaders, the Company Announced its reorganizing the segments ahead of earnings next week, its crucial investor day at the end of the month as things stands, the breakdown is institutional client services, investment banks, investment management, and finally i. N. L. , i l, investing and lending. Global market, investment banks, Asset Management, and finally consumer and Wealth Management the investing part will go mainly into Asset Management the lending parts split out based on the clients corporate will go into Investment Banking i l have always been seen as a bit of a black box, and therefore commanded lower multiples. They changes are an attempt to rectify that, and also to allow ceo David Sullivan more clearly an ability to articulate his longterm priorities at the investor day, where theyre going to break it out for the first time here are the share prices over the last couple days not just today bush weektodate, mike, about 3 ahead of the kpw bank estimate clearly the first 48 hours reaction to this news has been positive it seems that the market is essential inferring that this is, you know, showing a priority at getting the stock price a higher valuation lets be honest theres no other reason to do it. Also, you would only do this if theres no locker you want to expose that fact that its at much more predict a able business. It has all right rallied quite heart. That said, the price, the book multiples still at about 7 discount to that of morgan stanl stanley. Theres still some left of easy brown, before it becomes focused on the epart. One is still the consumer part of the business, which we no is less than a i think well see quite a big focus on if they can grow that part, gathering assets to gain fees from that, and i think well hear an emphasis about private equity growth. The other part is that the biggest segment, which is trading, which now falls in the market division, is actually going to grow. For all of this focus on the new tech focus, consumer focus on Goldman Sachs, the shuffling will see it grow significantly with this reorganization it if they can impress investor with his traditional high returns and say the big investment is behind us, that might be something that can excite people, but its kind of a focus on the old as opposed to the new. I own the stock as favorite financial, and carlisle, but, look, youve got the right ceo for the right time you know David Sullivan very well hes a great communicator and a visionary. What the Company Needs is a visionary at this point that can execute. He can do both in fairness, full disclosure, my daughter does work there, but that didnt have me in the stock before now, and shes been there for five years i love it. Its got the most up side. Theres no reason for Morgan Stanley to be at a premium to goldman. Well see if the reshuffle works. Banks earnings kicking off next tuesday toward the end of the move stephen weiss, thank you so much up next, whether the company has seen any created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. Doprevagen is the number oneild mempharmacistrecommendeding . That doesnt accept apple pay yet, memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back with partners ranging from blizzard to the 2020 olympics. Live from c. E. S. , global Vice President of partnerships at twitter, hes with our own Julia Boorstin reporter thank you so much matt, thank you so much for joining us here today at c. E. S great to be here. Well talk about your the most recent with the abc and the oscars, another one with the nbc and the olympics how important of the partnerships to reassure advertiser about the context in which people will be seeing their ads . Thesh theyre important,u. S. For twitter in general we want to enrich the partnership, and or with abc and the academy. Its an opportunity for the marketers to align themselves with incredibly safe content around some of the biggest conversations happening on twitter, and for abc and the academy, you can imagine it enriches the conversation and the broadcast thats happening with our partnership, theyll have allaccess red carpet treatment. The other thing youre talking about here thats new is some in ad format. Which of these announcements or strategy is which is google and facebook, and then these rising stars such as snap and even tiktok. And one of the things that we are absolutely a helping partners launch something. We saw it just a few weeks ago with disney plus, where they used a format called a promoted transspotlight. Its edgetoedge, immersive video. Its where the conversation is happening and it gives brands a chance what we announced yesterday, is were expanding it, so now we can continue to strength every around helps brands launch around the world. That allows many brandt to launch products in a powerful way. It has major implications on the earned portion, so we how hard is this to enforce how many more people do you need to hire to sift think issue as s is it a brand thats promoting their products fortunately we have an incredible team, to work at scale around the world this is something that we are working on were iterating it on every single week, but we field like were in a good position we feel like we made the right decision for us and our customers. It is a controversial decision some would say companies can still promote policies and advertise for what theyre doing, if, say, you have an oil company promote drilling in the arctic, and say its not an issue ad, because theyre just promoting some of their business practices, and say if youre against that practice, a nonprofit could not take sort of the opposite stance. We are allowing issuebased ads with certainly limitations as long as those ads arent focused on a particular legislation or candidate, we allow organizations to ties, but with limitations we want to make sure we dont create filter bubbles with this powerful system we have. Reporter it sounds like its tough to enforce that. No, i think weve actually done that. One of the things were focused on to is just making twitter a safer play in general for people and make it easier to get that content. Will be twitter results missed expectation due to a product bug. I know you cant give us Financial Results yet, but looking ahead to 2020, do you feel like you have the systems in place to allow you to do your job, which is to deploy advertising without the massive problems you had last quarter . In our and i think the amount of focus and innovation, making it easier to follow whats ha up on twitter. On the ad side, we feel like we have the core of the launch in connection down with marketers, on mobile app downloads, we did but not an existential one. Both in mobile app downloads, but also in performance marketing in general, theres a huge opportunity for us there. I they we have the appropriate amount of focus on it. Do you feel like theres the risk of other similar bugs pops up i think were as well positioned as weve ever been. We have some incredible innovation were going to make it as easy to follow a topic as it is to follow an account, really take off the customer and actually put it on twitter. Im excited about some of that i think were wellpositioned going into next year. Great we look forward to hearing about more of those iterations matt derel will a, thank you. Thank you, julia. We do have breaking news on carlos ghosn his defense team is out with a statement today, essential ripping nissen, as we continue to see nissen verse the ghosn camp going back and forth over allegations whether he was basically taken down a coup when he was arrested in japan nissen says they conduct add robust investigation, and a gross perversion of the truth. Rather, the facts demonstrate that investigation was never about predetermined purpose of taking done carlos ghosn, to prevent him from further interesting grating nissen and renault. They then list five examples that they say justify that statement of why they believe this was a setup werenot going to read all of those to you, but thats a taste of what we will hear from carlos ghosn when he talks. He will hold a Immediate Use vent in beirut. Phil, of course it promises to be an electric media event at that as to those five points, one of them that stands out specifically to me is the point in which they highlight that nissen to date has failed to share with mr. Ghosn, the evidence against him that they purported to find. Of course thats a true statement. Im not sure if under japanese law, had the trial proceeded, whether the public whether we would have seen that evidence or not, but i guess as things stand were stuck in limbo we will not see the evidence if he doesnt go on trial so i guess its impossible for him to prove innocence, but hes also not going to get the challenge, or attempt to prove hes guilty. Thats what youre stuck with for the next several months, several years, as long as the story goes on, wilf, you will have the ghosn camp laying out that he was sudden up. That may be compelling, but on the flip side you have nissen and the japanese government, if they dont throw out what they consider evidence, youve got one side versus the other side the end result here is does anybody really thank their pin he wants to prove his innocent i dont nong that he will get a chance to do so if hes not in a true court of law. And ghosns wife continually getting dragged into this. Right. With regard to perjury charges. She is now with him in lebanon she is in beirut with him im sure she will be at the media event. This is primarily him talking. One other thing. Ive heard this from people who have talked me, will he go into details about how he escaped no, hes not going to go into detail he may talk about how bad it was to be held under the conditions he was held under, but he wont go into details. No, none of that theres no need for them to go into that regard, as far as theyre concerned. Dont expect to hear those details tomorrow not even which type of Musical Instrument case it was no, we were showing you that it was the musical equipment box, not an instrument, but a musical equipment box. We had a picture of that on cnbc. Com that is believed to be the box when they brought him into the airplane i was just at this timing thank you, phil, as always. Thanks, guys. Mike santoli has a deep dive on the s p 500 rally. And sonos sounding off over google over tepant infringement. Those detailser later on closing bell. 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. 2000 also lost 0. 3. Coming up, we will discuss the top retail trends for 2020, and the retailers facing bankruptcy with pauline brown. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Nasdaq outperform iing. The do yw was the laggard. Micron,dig digital som best performers. Its now time for an update. Good afternoon, sue. Heres whats happening this hour, mark esper says he has not received in the request from iraq for the u. S. To leave the country. Announcing , she found the a hostile workplace where numb lutz females were subject to harassment no how, seemingly powerful the owner,. You are up to date back downtown to you for the third installment of the dashboard. Listening for some echos in the way the market is acting going back to 2017, now starting in about accelerating earlier in october that took you back to 2017 and the them the start of the years, about 7 in just three or four weeks to start january, that made. Of optimism. Since october, into the year end, but we have chopped around now, taken a bit of the a bit of the steam out of this market, we got resolution of the trade war, so there was the opportunity in theory for people to feel like we have an allclear runway it doesnt seem like the market is acting that way its probably a net positive that were not going on a vertical spike i wonder it if its Something Like these digestion periods, where a lot of indicator saying wouldnt be surprising to get a 2 or 4 pullback, but i think that is the spot were in right now. The key thing is earnings season and whether we meet targets or not. Exactly to me the key is the reaction to earnings season. So weve had a downgrade of expectations going into the reporting season is it already in the price that we actually are going to beat those numbers, and whats the response going to be a big focus. Coming up next, bankruptciesic rocking the retail world what could be ahead for the sector this new years . Thats coming up next. Houses front andenr, cte lennar earnings tomorrow most people think of verizon 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. Its almost like a mywchallenge everyday to seeey. How well i can eat and still enjoy myself all day long. I wake up every morning to see how much weight ive lost and how much better i look. Myww join today with the ww triple play well, 2019 marked another big year for retail bankruptcies 23 retailers filed thats on top of the 17 bankruptcies in 2018 just this week pier 1 imports announced plans to close up to half their stores. Its now just a 20 million company. Joining us now, to talk about it is pauline brown, the former chairman, and also the author of aesthetic intelligence it seems like every time we talk about retail, everyone brings up that work apocalypse i cover retail, i dont think were there, but were certainly shaking out weaker players do you feel like weve hit the bottom i think well many more weak players. There may not be many more bankruptcies, but many more closing. Its announced today macys is closes another 15 or so. I think there will be shedding of location. Were simply overstored and big box are too big and to inflexible for the environment were in. But everything still sort of points full steam ahead as far as the u. S. Consumers is concerned. Balance sheets look good, but they have the ability to be discerning it seems theres more options than ever before as you look forward in 2020, do you think that were going to still by buying stuff versus experiences, or is that shift further moving into the services and the experience with this type of retail its been moving toward the services and experiences people say it went from services to experiences to transformation, so the real growth is in areas where people can transform their lives, whether its wellness, whether its entertainment, escapism in the form of vacation and travel, so i think that trend will continue and youre absolutely right. The issue is not consumer spend, at least not at this juncture. The issue is simply we have too much merchandise sitting in places that are very unalluring. What is the key metric to look at to get a feel how close we are to when the shuttering of brickan brickan brickan brickandmortar stores peaks . The next closest market in terms of per capita footage is canada were about four time action much as capital retail. Some of issues have to do with the but some of it is just that the footprint is too big, period were seeingiumer consumers, are looking at more sustainable practices. They do seem to care about that and moves purchasing even towards some retail apps would they ever look at buying back potential some of their old merchandise, so that they can resell it to their consumers, as opposed to it end up saying on a i could see them creating competitors to a company like real real. What they have done historic hear, rather than allow excess to be on a market, they just take it and they have destroyed it that mass caused other issues on the sustainability front, as you point out. Because the amount of destruction of unsold goods is considerable that was all in an attempt to state of off the gray market and secondary market as something with a background, ive been saying for year its conspicuous theres not been a wave of buyouts in the distressedseeming retail ers do the bigger chains get cheap enough that the math works to private equity at this point . The bigger changes are so big. For Something Like gap, that used to be a big number. Theres always a price. I think the problem is that the headwind is still pretty harsh and for most of these retailers, theyre selling products that people dont femmally need if i see a supermarket getting cheap theres a consumable, people still need to go to the supermarket. People do not need to go to a Department Store to buy more clothes, so i think it will be a long way before we see it tempting to private equity good to see you. Thank you for having me. Sonos is suing google for allegedly stealing is Smart Speaker technology and up ahead, well have their take on the energy landscape. Welcome back sonos suing google for allegedly infringing on the multiroom patten. The ceo says google left them with no choice that its blatantly copying Patent Technology and has not shown a willingness to work with them. Google goes on the offense on what it acknowledges an important partner in google and they also could be taking it its the bail to capitol hill. Google, for its parts, disputes the claim and says they will defend them vigorously guys do you think there will be more lawsuits against other tech giants from some of these partners or smaller players because of similar issues . Thats a good question. In the last few years, as we see increased screwed any, we have seen some of these Smaller Companies that may never dream of taking on they tech giants go guess some of these davis versus goliath battles. You have seen yelp speak out about the Google Search engine as well. This could ramp up, particularly in an Election Year when lawmakers have their eyes on antitrust concerns is it content to settle as quickly as possible or they dont want to set a precedent . I guess it depends on what that settlement would look like. If they dont have to say they have actually infringed on patents, perhaps thats how it gets settled, but i think what sonos and other Companies Want an even playing field. Now all of a sudden google and amazon have their own home Smart Speakers and are competing with a lot more might against them. Thank you so much for that. Um next, fang friends, two of the biggest technames have seen pretty close market moves over the last couple years, mike will head to the telestrator with that. Bed back b yond report in tomorrow well have a look ahead. Mike santoli has the final dashboard. Yeah, looking at the two biggest Digital Media stocks that are acting in a friendly manner for all the talk about the differences between facebook and alphabet in terms of their approach to social media and in terms of their different treatment perhaps by regulators or whatever the story might be, over the last five years they have almost been perfectly in lock step. So it has with the way that the investors treat and value these different types of businesses. And if you dial it back a little bit further, they have not necessarily been so closely linked this is since facebooks ipo in may of 2012, but still, the cadence, ttrajectory, mostly is there. And really poor debut for facebook after its ipo, but it more than has made up the ground but i look back and facebook has been public for a little over 7 years and five months or Something Like that. And their performance relative to google when it was also public for the same amount of time pretty close, 29 annualized gain to 27 annualized gain. And both of these youd put in mega cap tech bracket, but similar pes as well today. Good top line growth absolutely. And as a matter of fact for most of the time, facebook had a substantial premium to alphabet, but they converged with facebook shares kind of flattening out a little bit and then google getting revalued higher. Im pretty fascinated by what may or may not happy with this new privacy law that was paused in california. Because they rely so much on data and the market seems to be saying ill leave it impacts the true Business Model when i see it and they of course can handle whatever cost burdens that might come along with it, but it is a legitimate question. Mike, thank you up next, your wall street look ahead, the key things every investor needs to watch. And speaking of things that you must watch, elon musks dance moves. But he didnt the first ceo to bust a move. Steve ballmer famously danced at the microsoft presentation and you have David Solomon not dancing well, gigging you might say. We werent allowed to include theresa may. A politician doesnt count as a ceo. I guess not, but good moves well, good is generous. I guess it is generous for all of these but respect, dancing in public i dont want to dance on tv, so respect to them i agree only happens after serious amounts of alcohol for me. Anyway, there we go. Credit to them and a lot of coverage for elon musk today and a 4 share price gain. [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 aleits a master stroke ofes heartachew. And redemption. The lexus nx. Modern utility for modern obstacles. Lease the 2020 nx 300 for 359 a month for 36 months. Experience amazing at your lexus dealer. You still have service . Call the Insurance Company sfx [phone ringing] its them, calling us. Its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . By automating claims with Machine Learning and analytics, cognizant is helping Insurance Companies advance how they serve even hard to reach customers. Cool. Lets take a look at how we finished the day major averages finished in the red. Dow down by 0. 4, worst performer of the s p 500 down nine points. And then the nasdaq just a hair negative by three points and looking ahead to tomorrow, bed bath abeyond set t report results and also lenar and Weekly Mortgages. And lennar reports and analysts are predicting lower shares we did see sentiment bounce. And we get Weekly Mortgage applications tomorrow and a bonus two weeks worth due to holiday closures rates saw a recent peak on Christmas Eve but have fallen since so it may be a mixed bag back to you. And courtney, youre having a look at Bed Bath Beyond. And this reports after the bell tomorrow. First for the new ceo who joined from target. And investors are pretty anxious for any insight into his strategy as the company attempts to work truehrough a turnaround. Street expects a fall of nearly 5 the home goods retailer is he evaluating every area of the business and on monday, Bed Bath Beyond announced a 250 million sale lease back arrangement and the ceo ousted six executives. So a lot of changes still afoot. Shares higher today by almost 2 and so big swings as of late and the three month rally, is that due to tritton . I think that it is due to the company trying to make some moves out of the prehistoric area because they had fell mind and l behind and let sofamazon and otr take their lunch and the housing data that were getting tomorrow it will be watched. There has been fits and starts in some of the housing numbers so it will be watched. And i believe that we get the adp employment numbers that hasnt necessarily been on target in terms of forecasting a good or very good official jobs report, but i do think that it gets watched we are watching every bit of macro data to see if this recovery or reacceleration we priced this will come to pass. Transports were one area that we saw a bit of gain here, but we saw you a pretty big slide after all of the action. It has been a bounce at this point. It is not that far off of like a 52 week high, so it has not been a terrible spot, but interestingly, it really has been the big kind of same old Growth Stocks that have captured much of the attention coming into this year so whether it is just the way that the market is kind of playing a bit of defense and just buying the familiar stuff until we kind of wait for this choppy period to pass. And all sectors ended lower, but not significant declines all in all the Market Holding up relatively well. Yeah, i would call it tentative at this point. It was kind of light volumes and things today, but i would say waiting to see if we need a bigger pull back is the way im focusing on it because it seemed like a lot of things heading into this year said that we wouldnt be surprised if we got Something Like that. And that does it for closing bell. Fast money begins right now. Energy front and center as tensions rise in the middle east were live on the ground at the Goldman Sachs Energy Conference. The biggest names in the industry are here. Their take on the iran threat, crude prices and if energy can go there worst to first in your portfolio. A special he had decisiedition live from miami starts right now. And welcome from the Goldman Sachs Energy Conference live in miami beach. Im Brian Sullivan a bit of a different loo