and investors are keeping an eye on earnings. joining us is lindsey bell what is the quality of earnings this season? >> it's been a good earnings season we expected a decline of 2%, but we're going to see up side of 1.3% we're about 65% of the way through, but to dovetail a what you just said, the best performing sector really has been technology. when you take into account both sales and earnings, that has been a sector where we have seen 8 po% of companies that have reported so far beat on both top and bottom lines. >> do you think that earnings is driving the narrative? are we still squarely focused on coronavirus? >> i think corona is leading the headlines, but i think the undertone that earnings and some of the commit data we got last week has supported up side in this market. >> plus lindsey, thank you very much let us focus more on the other big stories. as always, we have got full team coverage for you josh lipton is tracking the impact of the coronavirus on apple. and the grows feud from apple and the trump administration and more information about the massive equifax hack let us begin with the coronavirus. the death toll now topping 910 that does top the sars outbreak of 2003. as chinese citizens remain nearly on a lockdown, companies are beginning to feel the impact as well. let's bring in josh lipton with specifically the details on coronavirus and apple. josh >> so, brian, china remember is a key link in apple supply chain. there's a fox cuss cus on foxcon reportedly the factory is back open for business. apparently 10% of workers are still back this plant is described as the most critical iphone production site it's located only a couple hundred miles from the epicenter of the outbreak. reuters says another foxconn plant in shenzhen is coming back online remember apple operates 42 stores there the company has extended store closures, and apple says its online store does remain open. the situation remains fluid, which is exactly why apple issued wider than expected q2 guidance. >> josh, thank you. farce it relates to the supply chain and stock performance on apple, is there anything that investors should be wary of or should you just assume it's going to make up for lost opportunity. >> i do think it will come back, but i think the near-term impact, i have to question, what investors, how they're going to react not just to apple, but when we hit the first and second month of weak data, then i think we might have an issue >> following up on sara's questions send kind of a throwaway quarter? >> yes, i think so by the way, analysts have been cutting earnings estimates for the first quarter pretty sharply, looking for just under 1% earnings growth so i think investors are planning to look past that the question is when the real numbers come in, how will they act? >> for more on how the coronavirus is impacting business tune in at 7:00 p.m. for a special report "outbreak coronavirus. over the jedi cloud contract, ylan has the story. >> they want to depose james mattis and mark es per, as well as president trump himself, regarding possibly -- president trump's comments that he wanted to screw amazon, and the question is whether the president should be allowed to use the budget of the dod to pursue his own personal and political ends guys, we expect a judge to rule on this request sometimes within the next two months. back over to you. >> ylan, thank you amazon's symptom performance has been very strong >> i think the biggest thing here with the u.s. government is giving the stamp of approval to microsoft on the clout computing, and azure is coming up on the tails of aws in the opening five minutes of the show we've been talked about the coronavirus impact, and potential political impact on the world's second or third largest company. yell here we are with the dow up 100 points the market doesn't seem to care, lindsey. >> you know what does care is the bond market? i mentioned this to sara when we started. the ten-year started the year add over 1.eight, so there is some worry there this is a heck of a story, eamon. >> it sure is. earlier today attorney general william barr laying out the case that chinese military stole data from nearly half the population, as he ace nounced indictments against four members to cover their tracks, the attorney general said the hackers routed data through approximately 34 servers in nearly 120 different countries the attorney general says the chinese are using the data to feed artificial intelligence tools and help intelligence services target americas equifax's ceo said the attack was on u.s. consumers as well as the united states, guys. so another case of a company fighting off against a nation state intelligence services. this is very different for american companies to deal with, guys. >> absolutely. thank you. in the next hour we will talk to the ceo on equifax mark begor let's send it over to mike santoli for the market dashboard. >> here's what's on the slate. first up in the clouds, that's where this market continues to hover, led by the tech stocks, cloud software in particular and then on the sale rack, a couple news items that is suggests the reckoning and rationalization phase is washing through. and under the covers, a couple signs of risk aversion in the market, not really in the overall equity market, but we'll highlight a couple those, and then overs a thin cushion, do they provide any buffer right now against future volatility. that would be the question so look at a one years just to get the setup straight here. we have actually gone nowhere in about three weeks. essential have gone flat for about three weeks. it probably has alleviated some of those excesses in terms of technical positioning and sentiment. this pullback sort of looks a bit like what we got in october in particular, about a 3% down, less than a few weeks, we'll see if we can go up from there, or if we're going to go deeper, if in fact the bond market is selling us something if the nasdaq 100 divided by the s&p 500, ten-year chart. very sturdy up trend you wouldn't want to beth this will outright reverse, but this verse cal move shows an acceleration in it is huge cap stocks that probably can't be sustained. the question is what might happen to the rest of the market if that cools off or come in at least a little clearly the u.s. market is the haven, tech is a haven within the u.s. market, perceived as such, and then software and megacap tech is working in and out. we'll see how narrow we can get before we get perhaps a pullback in activity. >> i posted something on twitter from data trek this morning. the s&p is up, what, 3% this year, 67% of that gain was just the four stocks that -- the maga stocks we talk about all the time big-cap tech continues to work, and fantastic piece you wrote on microsoft over the weekend these stocks, the importance of them i don't believe can be overstated >> it can't. look, the mast says the 496 other stocks in the s&p did their part by not going to zero, but that's, you know, obviously taking it to an extraordinary. these are the drivers, they're getting more than their share of incremental new money. we know why, the question is how long can it last >> lindsey, what does it say to you? what investors should do if they're in other names >> i think if you are in those names, i think you need to be prudent and vigilant, rebalance your portfolio you can stay in those names and i think they'll continue to be the leaders, at least in the near term. our whole entire economy and society is shifting to being tech driven, so it's understandable, but you need a diversification of products. >> i ran the numbers this morning. 82 s&p 500 companies as of the premarket were in bear markets, down more than 20% from the highs. 227 s&p 500 companies are down this year. >> tesla will be more more than exxon. >> i don't know that i would recommend going into tesla, but simply because of that, there is opportunity out there. there's value out there to be found in this marketplace. >> all right on deck, speaking of tesla, tesla shares, they're up just 80% this year. exactly who has been buying the stock? we're going to bring in new data about how millennial feel about tesla. later, today's closer, henry nn's csays why there's a wierurse suddening up in the market make fitness routine with pure protein. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu woman: what does the word "partner" really mean? 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(impact, click) who is with me for the long-term. who understands i'm dealing with lives, not only livelihoods. that in order to help people, i need more than products, i need quality support and insights. can i find someone who partners with me to achieve people's long-term success? with capital group, i can. talk to your advisor or consultant for investment risks and information. on you . welcome back, tesla shares have skyrocketed over the last few months as wall street realizes the company's being advantage in battery packs phil lebeau has the details. >> this is new research from karen energy research advisers when you look at this, this is a huge advantage that tesla has. first of all, how much their battery packs costs have come down 42%. it's now down to $156 per kilowatt hour. how does that compare with other automakers well, because tesla is the only one that uses cylindrical battery cells, it comes in at $162, everybody uses the pouch pack or prismatic cell pack. if you look at shares of tesla, elon musk has been hitting this part very hard that the battery is the key to the growth at tesla. they'll be holding a battery day in april when you'll hear more from his vision about the batteries in the future. the reason i'm showing this to you is because gm and volkswagen are widely considered to be the two u established automakers for at least a couple years, if not long ir. >> big deal here, phil, is this new vertical integration that tesla wants to go through. now they share that -- i would imagine that they want to be free of any supply-chain conrestaurants and maybe panasonic decided to cut deals with other automakers. >> they did announce is deal with toyota where they'll work on a joint venture where they'll make battery packs you'll see this in the allo industry this is going to be more common here, we're already seal it will accelerate over the next few years. this is some interesting new data out of td ameritrade. out of all the attention tesla has been getting, it's one of the most sold stocks by millennial clines in january the trend looks like it will continue in february, as a very small net buyers during the wild ride last week >> absolute lid. let's keep in mind one thing you guys are nice enough to have me on regularly to talk about what our clients are doing if you remember last year, for most of the year, especially when the stock was under $300, we talked about how our clients were net buyers of tesla sixth most-held stocks by our millennial clients if i look at last week, stock above 900 were selling above with both hands, but our clients, as this incredible run-up happened end of january into february, our clients started to become sellers of the stock, taking some profits, and god bless them, i hope they've been riding it up all the way. >> it suggests your clients are very active. this isn't like a long-term esg, we're going to hold it forever >> first of all, you knee, we measure those who trade at least once a month here. the second part is, yes, they may have been -- i'm going to keep it forever change the world, but when the stock has the type of move that it's had to lighten up on that position probably makes sense and that is the biggest thing most people struggle with is their tame frame of when they invest are you trying to get in to gamble that you have a quick $20 move probably not the best philosophy right now. are you saying this is going to change the world one thing i would like to add to that if you look at from now to friday, the expected -- one standard deviation move is $89.89 most people would be awesome with that if the stock goes up that much, but are you prepared if the stock goes down that much >> did you see the story in the journal over the weekend about the people who dared bet against tesla, they've been destroyed. they were not necessarily professionals, but they bought some options, bought the equity short, and got just crushed. it's a dangerous stock either way, it's dangerous. >> go to vegas, get the free drink, right if you're just speculating that being said, brian, first of all for the individual investors and our firm and most firms, they won't be able to sell it short, because it's so volatile. it's been well over is a% of the overall trades the good things about that, i guess, most -- your risk is fixed. you know exactly what you could lose going in. in any investment, i think that's a good part of it, but overall, this is not for the faint of heart the moves are amazing. >> what's the takeaway that you guys are predicting that tesla might go down because you have this leading indicator that there was a lot of selling at around 900 or it's not a leading indicator? what i would say to people is there are over 4,000 more stocks you don't necessarily have to be -- and we have something that's clear from our imx cloverall, i think it's again it's interesting to people to know that the retail clients i think are doing a very good job, especially those who are at least taking once a month to be involved, of understanding their risk of taking advantage of some of the market situations. >> this follows up on sara's point. i don't think this is just another stock. i think this is a company where particularly climate-sensitive millennial believe this is one of, if not the only pure plays on climate change, by the way, sexy company, sexy leader despite his causen, right? the esg aspect out there i'm not going to say this is a cult, but certainly people believe in this company as a major force. some people say it will be the biggest company in the world in a decade. >> i read one of the knotts googled phrases is "should i buy tesla stock? but i also think that you can tie it into what we're seeing with uber and lyft, the run-up, as people start to think about driverless -- >> what we saw is spc's space, virgin technology was people some something that they think will work on the in the long term, that they do want some of their portfolio involved in. >> that ain't oil. >> can i add one thing exxon mobil, one of the most bought stocks by our millennial last month, which i think is really interesting anecdotally talking to some of the people who have bought it, it's about the fact they think that crude oil does have a bottom, at least in the shorter term it's all about the yield you have a 5.6 yield, just over that as of today, so they also like, yeah, i might get capital appreciation on bonds, but even with that i'm only going to be currently 6.1% they think with a great yield, it might be a good play. >> that's surprising thank you, j.j. >> always a pleasure. we have 47 minutes to go until the bell we are around session highs. the dow is up is it 1 points still ahead we have a big first on cnbc interview coming your way, we'll talk to equifax's ceo mark begor morgan stanley says one company's climate-friendly plan could drive big up side on the stock. that car company is not tesla. so who is it you've got to stk ouicarnd to find out that's the appointed point of a tees and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... 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lately >> oil is a four-letter word and that's d-e-b-t it's not the price of oil, but the debt the very real threat of bankruptcy for companies like chesapeake and others who are already technically in default sue herera has our update. here's what's happening at this hour. it is week 4 of the harvey weinstein trial. in the strongest defense testimony yet, a witness said she stood by and did nothing while the movie mogul groped a victim she says it never happened. a new york police officer was released from the hospital jose guerrero was greetedly a line of waiting officers, including the police commissioner, as he left the hospital, his arm in a sling into in turkey airline crews continue to dismantle a turkish plane which skidded off a runway last week. the process began after investigators instead the wreckage on saturday three people were killed as the plane broke into three pieces. and the los angeles chargers and quarter philip rivers have mutually agreed to part ways after 16 seasons he will flow enter free agency he was named to eight pro bowls during his time with the team. you are up to date guys, back downtown to you brian? sue, thanks very much. lindsey is picking warm-up part of the market where which he says is ripe to dealing. and we'll sit down with mark begor, we'll get his reaction to the indictment of four chinese citizens ever the company's massive data breach. as we head to break, a quick check on bonds, treasury yield sliding, ten-year note year currently an 1.55% "closing bell" will be right back do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. ♪ mike >> a couple news stories show parts of legacy retail on the sale rack. simon property group agreeing to acquire toddman center es this is a chart of what bespoke investment group calls the death by amazon -- now, obviously amazon is not the inversion of old retail. but it's behaved that way. what's interesting is the comeback you had through much of last year now a bit of a reversal it's interesting to see these deals happening or at least trickling out. just to see what real money strategic bike es oar financial buyers are willing to do here. but at this point i do think it's a one by one type of story. no doubt when you get this combination happening, it's going to be mean closure >> it's up 53% right now the pretty big premium there it obviously required a pretty being premium. i do think you can have a bit of confidence knowing what you're dealing with you obviously have leases it seems like this is an environment you with finance most decent assets maybe it just show you for urgency if you're a buyer in this environment to say we need to do something. >> i wonder if there is an implied simon's malls, they're fancy. on tallman they operate outdoor outled centers, sort of the bargain shopping experience, so simon is going downmarket. i wonder if that's sending a message. they're not making any more elite premium class aa malls you're not going to necessarily find too many other out there. >> good stuff there. up next, one of your last-chance trade and lindsey is looking at one etf up so% 10 in last 90 days. coming up we'll talk to the ceo of equifax in a first on cnbc interview you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. - when i see obstacles, i create opportunities. 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(cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. about 17 minutes left here on a monday. we are again on report close watch. both up s&p 500 and the nasdaq there's also a look at some of the biggest leaders on the nasdaq 100 today tesla up another 3.5%. >> let's check in on another individual mover edgewell personal care soaring on news that it did scrap its $1.37 billion deal for harry's it claimed it will block the competition, claiming it would harm competition edgewell also said the plan to sue the company over the abandoned deal shaping the market has been long shaped by -- it was shaken up by competitors. u.n. you lever bought dollar shave club for a billion dollars. certainty investors are cheering the news they didn't like the deal. i do think the ftc decision comes as a big surprise, and sends a big of a warning to big brands that want to go direct-to-consumer, that they'll be up for competition scrutiny from the department. it's often thought of differently, going direct-to-consumer, e-commerce can a different play, but here we go. >> our do it like -- let's get your last chance trade, lindsey. what is it >> i did like that joke. so this way i wanted to look at the biotechnology instrument we have seen a lot of volatility return to the market i expect it's going to stick around for a while, so this is a way to get some exposure in a defensive way while still taking advantage of potentially growth on the up side while i think about the biotechnology stocks in general. these have solid stories, but they also have an attractive valuation. they really have improved their cash flows over the last several years while maintaining their ability to invest in r&d which is all important in the industry the improved cash flow of course, we've seen it leading the health care sector, last year it was one of the biggest trying to m & a. from a value per peck tiff on a forward p.e. basis, that's in line with a historical average and that's pretty good in a market where it's hard to find any industry or sector trading at a discount. biotech, thank you very much, lindsey. up next, we're gel to bring you uninterrupted coverage of the final minutes of trait we taye you inside the market zone we set out to make the best bike on the market, find the best instructors in the world, and tie it all together with a world-class software experience. we ended up creating, as you all know, so much more. peloton is truly a category of one and we're just getting started. now, let's do this. together, we are going further than we ever thought possible. doprevagen is the number oneild mempharmacist-recommendeding? 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i don't want to call it a fad. it got a lot of attention. it is delicious. >> you can almost predict in 12 months they're going up against a -- plus it's a relatively small piece of the overall company. >> and they were quite well. yum brands, mcdonald's they've had great results lately >> also chick-fil-a introduced a new chicken sandwich, too. very impressive numbers. i used to cover retail and i don't think i've ever seen a same-sydor sales that high. >> because we and others are doing stories on, you know, people lining 100 cards through the drive-thru, people throwing things at each other, but to mike's points the comping will be very, very difficult here also to mike's point if you're buying restaurant brands, you're basically buying burger king and some other stuff. >> yeah, mostly burger king. >> is it worth anybody's money >> i don't know, if it trades as it has in the past as the next tier after mcdonald's in terms of the overall casual designing. >> i just want to point out seven minutes to the close shares of slack are halted right now. remember, we did have this report out that ibm would be deploying slack across all of it's 350,000 employees that send shares up what werely today. so maybe it had something to do with that. >> you wonder if there's elaboration or clarification or that, or perhaps something else. >> let's bo to bob pisani. maybe he can tell us more on slack being halted. >> yeah. we're getting down to the closing bell here, so it's not clear if it's going to hop oar hall it as you mentioned here. ibm essential moving the entire workforce making it their single biggest customer to date when you get an announcement this late in the day, sometimes they try to get it at the close bell, but they have rules here internally to give post notice a bit earlier. so about two, three minutes, we'll have a better idea we don't know. we're still waiting. back to you. 350,000 employees, saying this could add about $15 million to the top line, but more importantly, it's just the idea that it ibm embraces slack, that maybe these big lessacy other companies will it's not the newer ones that may latch on. >> software as a service is a main thing anything that a company can use that kind of leverage to reduce the overall costs, that's going to make a big difference that's why we see software as a services a gigantic business out there. >> it also counters the criticism that microsoft and its aggressive teams platform isn't just going to take the fortune 500 businesses and the well established players. it doesn't get bigger and more established. it runs counter to the -- and also the microsoft is eating their lunch. >> the idea that i think every one of our viewers can understand, which is that e-mail is the scourge of humanity >> there's no doubt it's a workaround as well as being kind of a cultural trend going in this direction this isn't about a contract with ibm. my thought is it has to be more. >> eli lilly reporting disappointing results. meg tirrell has the details. >> it's unfortunately the latest in the long trail of failures in alzheimer's drug development the me since both targets the plaque in the brain associated with the disease, but they weren't shown to slow memory declines in the study leading some to further question the hypothesis, an approach taken by biogen chug expected to be filed for fda approval this year the stocks had been down earlier today, but they have all come back, sara. >> meg, thank you. we are at session highs here, getting a nice boost into the close, mike. what are you seeing in terms of the internals? >> a little more ambiguous, still okay, but if you look at up versus down, than in up stocks you had it's the same story. >> happen the s&p 500 is not participating. it's down year to day. >> when they're plus or minus a couple >> you'll see exactly what you're talking about one is you have 9%, the other is down 10% >> you might just ask for stuff. >> i think it prepares really, really well. >> it's an exaggerated version of growth versus value, is essential what we're saying. mgk, i didn't ask for this before, but the mega path growth index, it's low yield, pushing into longer -- let's get to rick santelli for a check on the bond market, which happens to be telling a very different story than the bond market, rick. >> it's telling a different story, but i'm not sure it's the story it thinking it's telling and remember, the dame before, the 151 we're basically right there. it's the narrowest in 27 months. finally one week up six off suction days, and bertha the nasdaq is up five out of the six days in february the mega caps at all-time highs. amazon had been such a laggard it is now contributing moraine gan inmore than apple and alphabet in the meantime we're seeing a bounce today hitting a new 52-week high the online gaming platform, also moves higher it hasn't happened yet essential it's the closing print. we're waiting for that to happen up stop opens, and we still don't have -- it looks like it's open into the close. we have about ten seconds to see if it makes a decision again maybe something will rap right after the close. i'll let you know immediately. that's a double-record close. welcome, everyone, to "closing bell." >> i'm sara eisen. >> and i'm brian sullivan in for wilfred frost this morning we're knicks to mike santoli record highs for the s&p and the nasdaq the russell 2000 on the move as well by the way, all the major indexes did end on their highs of the day a lot of momentum in that last 20 minutes could pour tend well for tuesday's trade. coming up our "closing bell" closer, henry mcvey, why he's super bullish on china. >> and four members of the chinese military in the equifax data breach joins us first on cnbc in a few minutes. barry bannister joins the conversation later still with us is lindsey bell. first to, mike, what was a broad rally, but only energy closed lower. >> below the senior pass, it was not as uin this muss as the megacap , and the defensives would have it. >> when we have this new low or near low in the cycle for treasury yields today, the market doesn't take that as we should be negative on stocks it's decides which stocks to actually buy it is the growth stocks and the defensive stocks that act a bit as quality defensive bond proxies. right orb wrong, that's how this market is metabolizing low bond yields it's looking like that trend is getting stretched, but it has seemed that way for a while. >> greatest economy we're told yet the impound market appears to be saying we're going to go in recession by the way, we haven't mentioned it, we're almost reinverting the yield curve. we're getting close again. does the bond market know something that the equity mark does not know. that's always a question, right? >> i they they close around 155. questionable, like i stated earlier, at the beginning of the year started and we haven't gotten back to that level. certainly they play a role into that and lead investors into the u.s. treasury, which will help hold down those interest rates, but i do think it's something to worry about. i think it's an indicate that volatility could continue to come in the equity markets, especially in the equity markets trade at these premiums. the coronavirus as it works its way through the economic data, i think it will be important to watch how that plays out if the economic data in china comes in significantly worse than the lower numbers that people are expecting, or even data in the u.s. comes in worse, we're expecting the slowdown that we think are comfortable with, there could be volatility in the market. i think in the near term, it will be contained volatility because of the all the liquidity coming into the market from central banks around the world i do think you'll see us trade in this range for a while. >> barry bannister, how are you thinking about the impact on china's gdp? and what that could do to the global economy and how u.s. stocks continue to plow forward? >> yeah, if you think about the coronavirus, it's like a gut punch to global gdp expectations in the first quarter it's going to hit china the harders and spill own are over if you look%, during and after recessions, that was about 36%. it takes right back to where we are now, so we have to climb that wall of worried on a recession. >> it seems as if they strategies that are essential saying we don't really see a u.s. recession, we think slowdown in growth overseas is probably going to be earned back shortly after the virus scare passes, so therefore it doesn't necessarily -- >> is that being overly optimistic >> maybe, maybe, but the market is willing to make that bet right now. i keep talking about how people have been hedging the democratic primaries, there's a lot of -- and i think a lot of the mechanics are such that it kind of creates a bit of squeeze in the market >> we're talking about one sixth of global gdp going off potential a month, maybe a quarter. >> there's retail investors that are -- shares of slack halted just before the close. before that, it is stock jumped after reports that ibm is my greating its employees over to the platform form he talked about their growing customer base and what investors are not appreciating about the company listen. >> just in finance services we have investment banks, insurance companies, vanguard northwestern mutual, so it's a pretty great set of customers i think that's driven largely by the invested in security, and i think people don't appreciate that or understand it. they think slack is still for small tech startups or purely for media companies, where it's a global footprint >> slack's ceo still waiting for news we don't know what the news is, about you this report about ibm, this would be their biggers customer and also squash a lot of concerns, and this idea that it was just a start-up >> i just don't know in the fog being up on heavy volume causes the exchange to say is there any news beyond what we know out there? i'm not sure -- >> you guys are here every day it's unusual to see a stock halted five minutes before the close. >> and this particular news have been out all day wework executive chairman sat down with our andrew ross sorkin this morning. they discussed everything from the fallout to the botch ipo, and what they took from the experience >> maybe the lack of involvement that we had in the business, the complete and open truth, we did a good job in terms of -- >> we're talking about adam newman >> yes we are now more involved we have active board members in all of our businesses. so i think that's what i'm referring to as a mistake. we're not saying this is business is a mistake, by no means. this is a great business. >> the ceo also talked about the perception on softbank and that it was having trouble raising money for the second vision fund >> obviously performance is key. and the crazies in and all of that the fund is performing well. we've had a lot of complaints about uber uber is up 18% from what we invested complaints guess wework, we feel very good about our platform. andrew has more of this interview which covered a lot of topics for you, what stuck out the most from that interview? >> you know, the company, in terms of how i think he thinking about wework going forward, this is a firm now, softbank that's, that has effectively had something on the order of 14, 15 billion into this company on the books. they have marked it at something like $8 billion. the question is how do you become money good? how do you actually make money doing this if you really listen to them carefully, they'll be leasing on these long-term leasing, selling them on a short-term basis, which has always been a big question there's the management component, which is a bit like a more outor a hot that they don't have the lease, but they'll do the management service piece and he talked about something else, which franchise opting, on trying to understand all of that whether that gets the multiple that would have ever gotten this company into a 20, 30 billion place, is going to be a real challenge for them to get to that place i think just to get to money good will be a challenge whether there is a tech company that gets some kind of extra special multiple or whether it's just another real estate company. given the new ceo they just hired who is a real estate executive, i think this is now a real estate company. >> the narrative has not been good lately. they're expecting to report a double-digit operates loss you notice have elliott management in there. uber, how do they address what's happening? and then of course the second vision fund and whether they're having trouble raising money. >> here's the thing that i think is misunderstood broughtly marcelo is correct in that we focus on the vision fund that is this 100 billion piece, and they obviously have a big piece of that. softbank is a much larger business frankly, a day or two of alibaba, one of their biggest holdings going up, makes up frankly for any loss in the vision fund or anywhere else it doesn't mean everybody is always aligned in terms of which investors we're talking about. but i think there's a missed understanding or missed thinking about which ones matter. the other people is the vision fund is a venture fund, so you will see failures, and it may be just a much smaller failure that was announced today, but the way venture works, as we all know, the goal is to hit one or two or three grand slam home runs and that's supposed to make up for all the other failures we as the media, investors, and everybody else will be focused on this, and they massively disrupted this whole space, but i think we need to be more focused on the prize, and that's where elliott is and everything else, elliott is not looking specifically at one of the visions funds, how to think about the entirety of the company. >> that's a good point i also thought it was notable that you kind of cleared up the whole headline did adam newman getting 1.7 billion or something like that. he elaborated on what the pay package would be. >> i don't think peeble undertoad is it. that's not even fair i think people understood it and people wrote headlines that frankly were unfair at the time. i understood this was always a tender offer, but the idea of what that even means is largely misunderstood. invariably you'll see a headlines that, he'll get x if he tenders all his shares into it could he have structured manage where he's not a beneficiary, that's something more interesting. marcel wanted to sort of thing about it, or he wanted to -- coulda, woulda, shoulda. >> so he is or isn't going to get a billion? >> well, he may very well get a billion. it will depend he may decide not to he may let it ride he may try to get as far away from this thing as humanly possible i think there's various stages of grief that go on when you're ousted in a company. he may well think this is his baby today >> you're probably already working on this. if it doesn't work out for neumann, you have your next show called thousands. >> i believe, by the way, there's multiple tv shows, multiple movies and books all in the work on wework if you don't have enough of it now, wait two years, adam drivers has to be the lead, right? >> the other actor that's been named in this, who is part of the peter churnen package is the actor in succession, the tall cousin >> cousin greg. >> the nice guy. >> cousin greg is one of the people tapped to play adam nuemann. >> andrew ross sorkin, see you tomorrow morning just hitting the broader market barry bannister, some final thoughts as we look -- we were talking a lot about the outperformance of big tech stocks, stick with those kind of winners or some under-appreciated ones >> mike ace point earlier was exactly correct. the fed has added 200 billion of excess reserves just in september. that's a lot of base money also china seems to be throwing their financial derisking caution to the wind. they'll probably do a huge round of first calendar quarter stimulus they have done it the last five years, a lot of their stimulus in the first quarter so when you at those two together, there's a reason for optimism as the year goes on we could have an environment where cyclicals, where value and growth are working together, like a couple months ago that would be growth working for cheap money and low yields and value works for better global gdp, which would weaken the dollar somewhat. we could have a resumption of the bull tend if we could get past some virus fear es. thank you for joining us still to come, we'll talk about the pressure tore profitable henry mcvey. four chinese members of the military have been indicted today for hacking into the financial information of millions of america. we'll have that and more when we calm back. so we can spend a bit today, knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so... what do you think, peanut? nope! honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement. when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. it has more than 900 days when equifax found a massive data breach, including names, birth dates and social security numbers. today attorney general william barr and the department of justice say they know who was behind the hack. >> i'm here to anounce the indictment of chinese military hackers, special four members of the chinese people's liberation army for breaking into the computer systems of the credit reporting agency equifax and for dealing the sensitive personal information. near liter half of all american citizens, and also equifax's hard-earned intellectual property joining us for a first on cnbc interview mark begor. good to see you again. thanks for joining us. good for having me on, sara. >> how involved have you been with the federal government as it relates to today's indictment in how long did it take to get there? >> we started collaborating with them right after the incident. you know, i joined a fee month later, but this collaboration was going on for quite some time i think today's announcement showed house fist kated the hackers were to defend against the military arm of another government, in this case china, really raises the bar not only for equifax, but for every company around the globe and in the united states in defending against cyberattacks >> on page 3 much the indictment, it does say that announced a vulnerability in your system of the software and the u.s. computer emergency readiness team did issue a threat warning notice on the following day, but it wasn't patched up and wasn't contained. how much responsibility are you taking at equifax? >> well, sara, you know we took quite a bit of respond earlier, last summer we announced the largest consumer fund ever related to data security also had settlements with the tornadoes general from across the united states, the ftc and cfb. most importantly we spent the last two years the largest investment in our history, $1.25 billion investment in our technology and security, with you goal of versus the industrial-leading security. we know the data we manage and possess is extremely sensitive that's why we're taking it so seriously. we're about two thirds of the way through that believe is going to give us the best security in the industry. >> what do you think about the fact, mark, that members of the chinese military, official government agent, four guys, were able to break in and steal effectively the information on, what, half the adult community of the united states of america? how does that happen >> yeah, well, it's -- there's hackers out there, i think you know the justice department also indicted china's same military arm for the anthem health breach a number of years ago. the attorney general this morning talked about the fact they believe marriott's breach was a result of the same hackers. these are clearly very sophisticated individuals, with a team with very extensive resources. it raises the bar for all of us. we're investing in our technology. >> mark, here's the problem. i think -- i'll just speak as a consumer, not a journalist if i choose to do business with target, maybe i give them my information. you guys get our information without us choosing to do business with equifax. so people get frustrated and say you got all this information on me, i don't even know what you've got and now the chinese notice more about what my credit profile may look like. >> the three bureaus provide a greats service to allow consumers to get access to credit we know we have a real responsibility with that, which is why we're investing so heavily in a our data security and transforming or technology to make sure the security is the strongest out there. we know it's a response we have to have, and one we take very seriously. >> could anything like this happen again >> we're working hard to make sure it doesn't, sara. that's why we're investing solve in our tech noel and security. we're moving to a cloud-based environment that we believe will provide the best security and best technology and also allow us to service our customers much be in the future >> eamon javers has been reportsing on this for us and covering security. is it ever possible for private sector companies like yours to ever compete with state-sanctioned intelligence services and hackers >> i think you raise a great point. it definitely raises the bar we've been very public with what happened to equifax to our competitors, our customers, our poors, we believe a combination of partner/government partnership, we believe you can't do it alone, and you also have to invest a the lot of money. you think of ha company our side investing a billion and a quarter, we're taking this extremely seriously, and the bar is higher, but i do believe we can defend again that. we get attacked every day, just like most companies. we have much stronger security today, even stronger tomorrow. >> what do you think was the issue? just a lax attitude toward security not just your company, but others that are hacked as well >> i think the bar has been raised when you think about the scale of the attacks as you pointed out, versus the mel tear arm of a foreign government must have a team that is focused on doing this to u.s. companies and u.s. consumers, it raises the bar that's happened in the last couple years it's one where we have to be focus odd it, vigilant any idea what they want the data for? >> we're not the experts on that you heard from attorney general barr this morning talk about they believe the data is become accumulated to use for spying purposes he used the term a.i perhaps influencing elections. that's what our experts tell us, is not only china but other nation states are looking to accumulate vast resources on americans to use for some way in the future, either for spying purposes or corrupt a government officials or some other reason if they know your financials, they know your health, if they know where you're traveling, there's a bunch the data there that's why we have to be so vigilant about securing that data. >> mark begor, thank you for joining us. >> thank you. on today's indictment news. meantime one of an after the bell earnings alert. seema? >> the stock is moving, chegg reporting a revenue growth the company says our direct-to-students services continues to deliver the stock is down about 1.5% but it's consistently outperformed the s&p in the last eight quarters. tomorrow on the show we're going to talk to the ceo of chegg about the results and much more dan rosensweig is our closer up next here on "closing bell", we're going to break down charts to explain why there may be a now reason to worry about this market. later find out would today's closer henry mcvey says a winner's curse is developing in this market. "closing bell" will be right back athway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. mike as the third dashboard. >> you see those three things, you would think it's an environment where there's a big agrees of risk, but some are thog there is some caution this is an index by jim paulson which measures a couple things first of all it's the ratio of gold to other commodities, and the ratios of small-cap russell 2000 so you see a greater risk aversion, because the other is s&p over russell the point being in these points right here, people are -- if you want to own gold or pressure metals, it does suggest there was a risk aversion under the surface. also pointing out they are actually underperforming quite a bit. one could argue the market a meting out the worry in relatively rational ways here. so this is a net positive, because it suggests there is a relatively decent wall of worry out there. >> which means stocks can -- >> people are not being complacent or reckless. up next, ckkr's henry mcvey is today's closer. and as he we had to break, here's a look at slack, by the way, halted right before the closing bell it's been halted about ten minutes before the bell, with news pending we don't know. we get breaking news on a stock up 15% today we'll let you know, and we're back 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built for right now. edward jones. it's time for investing to feel individual. . here's what's happening at this hour. a u.s. investor suspected of embezzlement in russia has had his house arrest extended. michael calvey has denied any wrongdoing her lawyers are triing to get all 11 charges thrown out, which includes charges he defrauded investors. the judge took it under submission german chance report angela merkel respects but also regret the decision by her heir apparent to resign. and former iowa governor tom vilsack has claimed a $150,000 powerball price. lottery officials say he won his prize in the drawing on january 22nd when the game's jackpot had grown to an estimated $327 million. he got every number correct, but one. i would think you would get more than $150,000 if you get every number but one, but that's me. >> should have used him in the caucus he has good counting skills. >> there you go. brian, back to you. sue herera, thank you very much it is the 20-year anniversary of the pets.com ipo, remember that, the little sock puppet, which infamous blew up months after going public. and maybe basket business models have hopefully changed >> heal, brian props are back in focus, but that's a recent shift. take a look. 2018 was the least profitable year for ipos since they went public, only 15% of companies listed were profitable eventually it appears to be swinging back. uber moved up the timeline for profitability, and this morning weworks said he was looking for discipline. >> when you ask about wework, the plan calls for us to be profitable by 2021, cash positive by 2022, and approximately $1 billion of free cash by 2024 >> startups are staying private twice as long as they were in the dot-com days, and we're seeing an 87% drop in the last 20 years brian? kate rooney, thank you. kkr is out with its 2020 outlook. among the key things to watch, number one, a winner's curse is developing number two, bullish on asia. the millennial update, and three, slowing gdp joining us is henry mcvey. welcome, nice to see you. >> thanks for having me. >> who does a winner's curse mean >> what happens, and you see this sometimes in delayed stages of a bull market the companies that probably have the best advantage competitively, the market cap goes, the valuation increases, and ultimately it gets harder to compound what you have seen over the past few years is the top leaders have gotten more expensive and said our view has been these are good companies, we obviously operate on the private side, fix these companies up and bring them back to be winners, but ultimately in a public market, people have started to just -- this has been through momentum streejs, and what you just put on the tape earlier, we see the same type of pushback from moody's where we think there's a pretty big shift where last year was somewhat of an end of the total addressable market, where someone -- where it's going to be a time where you want to focus on cash flow and you see, i think when we look back from three years from now, the companies that have done the best will have high cash flow conversion, more profitability, sow get secular shift, and in our view k.k.r. is one of those. >> would you be looking to buy on that chart the cheapest pieces it seems as if people have been waiting and waiting for pure value worth. >> i don't and we outline that in the report. we think we're in an industrial revolution where technology has created massive dislocation. you guys have been reporting on that very effectively. our view is many of those companies are business model, certainly that wouldn't be somebody that i think public invest are arors should chase, where we chase it is that great unlove maybe he missed earnings, made a tactical mistakes, the market doesn't want to pay to that right now, what can we do to help them grow their business through operational expertise, and ultimately realize value when we bring them back to the public market. the idea we'll have this massive rotate to value, i don't buy that, but look what happened in the real estate -- you had simon by talman, and all of a sudden the stock is up 100%, so people focus on hard assets, on cash flow, and that makes sense as we get later cycle. >> there's a viewpoint that stocks will keep going up, henry, until bond yields stop going down effectively when you look at '08, '12 and'sr '16 we had credit events. we had brek i had last week, and the bond market didn't move. do you see continued low yields, which makes risk assets more attractive no matter what is going on >> ultimately or view is we're in a low inflation environment i spend a lot of time in asia, or firm is kind of a dominant alternatives in asia, and we see a lot of disinflation. and you see that in india, china and other emerging asian tigers. excess capacity is being dumped on the market. you come back to the u.s. where it's closer to home. ultimately it has to be 50 basis points just to stand still, so bond yields are sniffing that out. ultimately our view is people will want to own more collateral, and so never say never. what would change my view, one of two things. one would be that we have an earnings recession, which is not what our models or companies are saying or two, it was a policy mistake. i think in the fourth quarter of 2018, we came close to a policy mistake whether the central banks were shrinking their balance sheets too quickly right now we're in a decent spot where central banks are putting liquidity in the system, but maybe not as much as they were when things took off my personal take is, had we not had the emergence of the coronavirus, which obviously is a human tragedy, but when you look at that, i think the federal reserve actually would be ready to slow things down on the liquidity if it wasn't for the global uncertainty right now. the finance conditions in the u.s. are at the best levels they've been in two decades. >> so you mentioned the coronavirus. one of your best ideas is in asia i don't know if that public or pride equity or both, but how has the virus and the near halted growth of china affected that >> ultimately most of our capital is locked up for 5 to 10 years where long-term investors, we try to compound kamtsds asia has 800 millennial. they're inflecting upwards in terms of their financial services, health care, environmental safety and technology we are going to be a dominant firm investing behind those names. that's one point two is there's a massive possibility. most people affiliate kkr with private equity, but if you look at what we've done, we're a major player and we'll continue to invest in that. our first point is i would say this is -- there's a human element to this and our hearts go out on that second is we're not losing focus of the long term ultimately we've been through ebo ebola, through sars, the firm has been here for years, and we continue to find ways to do the right thing even during what is a very unsettled time. >> more opportunity in china or the u.s. right now >> i think the biggest statistic i would say is last year kkr put in 2 1/2 times outside the u.s. as in the u.s. the valuations are more attractive in non-u.s. markets right now. >> we keep hearing that yet u.s. markets keep growing. >> what people shouldn't do is go out and just buy emerging markets. they're tied into underperforming multinationals, and people say they're cheap, but you have to understand where you're investing we're trying to get behind the rising gdp per capita, but you just raised the key issue, which is you can't go blindly go by those markets. >> henry mcvey, thank you for joining us. thank you for having me. let's get back to slack. the stock reopening in the aftermarket. seema mody has fresh details. >> slack has resumed trade here's the satire. the company downplaying a story published by "business insider" says ibm has slack's biggest cuss slack is therefore not updating the financial guidian. you can see the stock is down about 6% after hour, brian, closing up by as much as 15% on the day. >> oh, i think the technical term on that is, wrong the story wasn't correct it sounds like the story was just not accurate. >> potentially downplays the story, providing more guidance brian? mike >> i think that's why you have to come out and clarify things, whether it was the exchange that says, look, you have seven times normal volume, stock is at 15%, is there anything else >> it's only down 5% -- >> sure. this thing has been on the up swing, a lot of the 2019 class of ipos -- >> i think seema made the key point. ibm is already our biggest customer, and was before the story. >> we'll see tomorrow. let's look at how media stocks are seeing a boom thanks to one presidential candidate, chl bloomberg and his ad spending spree stick around through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk othroughout the country for the past twelve years,. mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. michael bloomberg's entrance in the race to the white house has been as boon for media companies. robert has the numbers. >> as one analyst put it, when the politicians go to war, buy the arms dealsers. he announced plans to double his ad spending. sh of that flowing to three of the biggest local broadcasters that's nexstar, and they're also about ig in texas. gray big in texas, and the south. wells fargo media analyst writing that broadcasters are, quote, jazzed to have bloomberg in the race. record 3.5 billion in total spending this election cycle that is up more than 11% bloomberg is also driving up ad rates in other candidates in other races after an ad buy in houston, rates for that station jumped by 45%. guys, back to you. >> not helping sinclair's stock much >> they have issue with his leverage, but it could have been bloomberg. >> the bloomberg stimulus. thank you very much. still ahead, we will look at whether the market would be able to deal with the potential black swan event mike santoli is heading to the telestrator to find out. verizon keeps business ready for what's next. 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