Transcripts For CNBC Closing Bell 20240713

That china would take more measures to bolster its economy. Companies from adidas to tyson are spelling out what the impact will be on their bottom lines and the pace of homebuilding fell less than expected and it surged to a 13year high our closer today, with the debate just showers way, former chair sheila bair willbe here to discuss a wealth tax, financial transaction tax and how markets are responding why she says as a republican shes voting for warren. Thats all coming up after the bell joining us for the hour, keith bliss, welcome back, keith. Thank you very much. The question has been asked a lot of times, and yet you still look at these markets and record high territory going up every day despite the coronavirus warnings and fears and cases and you wond frer if theres a disconnect. I dont think theres a disconnect i didnt think there was going to be much to this story its a serious story and could impact the markets the longer it goes on. Now were starting to see the trend is coming down for new cases and there are vaccines that have been developed and are going to be tested this market remains the best in town and maybe the best around the world. Weve got lots to discuss with keith for the full first hour of the show were in record close territory with 58 minutes left lets focus in on the big story. If rise of speculative stocks. Bob pisani is having a look at the huge move in various names phil lebeau has the biggest price hikes for tesla and well break down the short selling in one of wall streets hottest stocks, Virgin Galactic. Momentum and growth are not always the same thing, but in this case for the start of the year they sure are the same thing. Let me show you what is ruling in terms of momentum first off, tech rules virtually everything at this point and making nice moves up overall in the groups microsoft particularly, any of the semiconductor stocks, amd, Applied Materials doing well lam research in that group but theres also a large group of consumer names that have had tremendous momentum, im talking about visa in the credit card space, Sherwin Williams and costco have been monsters and in fact all of the Home Builders have been outperforming. I want to show you theres an etf. Mtum is what you want to watch this is versus the s p 500 the white line has been o outperfo outperforming all throughout the year remember, momentum is not always associated with growth, but in this case for the year to date its been almost all growth, almost no value has had any momentum at all. Guys, back to you. Bob, thanks speaking of momentum, tesla on track to close at a record after a bullish call by Piper Sandler today. Phil lebeau with the details. The question is whether the tesla shares close over 900. The highest interday is 960. There was a steep selloff late in the day and it has never closed above 900 right now it is on track for a record close look at whats happened over the last couple of months to the price targets. You mentioned Piper Sandler out with a new price target. As analysts have ratcheted up their price target look at what has happened back in december it was down to 343. Now its 534 by the way, one other note regarding tesla, late today there was word from a tesla website, seven le these are fans of tesla who track reservations. They say that there are more than 500,000 cyber truck reservations its 100 just to put down what you would call a reservation this truck is not scheduled to be built until late next year. So if this truck is built, the question is whether or not those 500,000 people will follow through and buy it back to you. Phil, as you mentioned, there are lots of price target upgrades the average is still well below where we are today and in fact a lot more sell ratings still than buy ratings. Right, youve seen fewer buy ratings as the price of the stock has gone higher. Noticeably fewer and there are a lot more people who say, look, this stock should be sold. There are more than a few people out there, analysts out there who believe that this stock is due for a major correction but weve heard that now for a couple of weeks and yet we still see the stocks hovering in the 700 to 900 range and today its going to go likely over 900 if it stays on target, it could close over 900. Phil, youve got yourself a nice new studio backdrop. You like that i do. Yeah, well. Every once in a while she sethe something out to us here in the midwest. Thank you very much keith, what do you think of this run it was striking to me what phil just said, people are looking for a correction i think weve been saying that a correction to tesla is coming for four years even elon musk tried to dampen the stock a little bit if i look at it from a quantitative perspective and technical perspective, its certainly overbought and you would expect it to come back down but so far the money just seems to keep want to pour into that and when you see people buying one share of tesla, that kind of demand and robust demand will be with us for a while. So i dont see a correction any time soon. Its not that the analysts are changing their thesis, theyre just catching up with the incredible price run its interesting that the stock moves on the analyst calls but it also moves on days when theyre on the analyst calls. Just huge momentum its up 6 today and shares, by the way, of Virgin Galactic beating tesla, 13 higher. Theyve skyrocketed nearly 50 in the past week some have said the move looks like a short squeeze but our next guest disagrees he studies short selling and says theres been a recent increase in Short Interest for Virgin Galactic. Thank you so much for joining us explain what you mean by this, that you dont think virgins move of late has anything to do with a short squeeze theres always an idea of a short squeeze when we see a pullback in price. But here weve got shorts just continuing to trade into this rally with over 3 million share shortage and another 800,000 shares shorted over the past week so it doesnt mean theres been a short squeeze, it means that theyre shorting into the rally and hoping for a price pullback. Do you have any idea on who the buyers are is this a Retail Investor driven valley thats exactly what we see when you look at some of the retail platforms youll see that space, Virgin Galactic is the second most added name of all the long buyers youre also seeing a lot of momentum traders getting into the name because theres a lot of money to be made on the wild fluctuations of price. A lot of people are comparing the move to the move in tesla, the sort of parabolic move do you see any parallels on the short side yeah, this might be a junior tesla without the trench warfare. We dont see the longs and shorts really being that vocal in the name yet. So its not quite as dirty a short as tesla is. We do have a lot of shorts with huge convictions, taking a large amount of losses over 330 million worth of losses this year so far. You provide this information and this research that you do on shorts to hedge funds. What do they do with it . We have an app that provides daily Short Interest and rates and information for hedge funds brokers and retail clients we have a retail app as well theyre seeing trends and market movements. They want to be ahead of the curve. The important thing is not to be selling at the tail end of the move or for long investors, they want to see what the shorts are doing. Keith, to the point that this might be driven by Retail Investors coming in for Virgin Galactic, that was one of the potential not criticisms of the run of tesla, but caveats people were talking about it did then pull back and then clearly moving higher again. Where do you stand on whether virgin is a pullback or whether this can continue for a while . I think its interesting of the three space companies, Virgin Galactic is the only true Public Company so thats where youre seeing a lot of the money flow into. If they could put money into spacex or blue origin with amazon, you might see a different picture. But those Retail Investors, maybe the tail end of the millennial generation, they believe that space travel and tourism is going to be with us and if you look at Virgin Galactics book, its about 80 million i want to in time for flights that might not take off for 18 to 24 months. So people are trying to get ahead of the curve and to ihors point, theyre not taking losses or doing what we call getting their faces ripped off. Were just kind of waiting back, and therefore you have the longs that are coming into the name and they keep pushing up the stock. It will be interesting to see if the trend does rold branson is t like some people in our industry people dont bet against him. People say that about elon musk. Probably the biggest thing is the shorts are building their bo positions over time. They are kind of growing as the price moves. A lot of these price moves are right at the open so they cant get out. Theyre sitting here with markettomarket losses so theyll sit in and hope for a pullback if theyre looking to get out early. But usually theyre saying i took a hit, let me see if i can increase my bet and make it back. Ihor, thank you so much for joining us. Thank you. Elon must have been lamenting having a listed company. He probably regrets not having both of his Companies Listed now. Coming up, next week on squawk box, they will talk to the chairman of Virgin Galactics board hes going to guest host on tuesday from 8 00 to 9 00 a. M. Eastern. With probably a bigger smile the coronaVirus Outbreak in china taking a toll on sales consumer brands. And steven roach explains why he believes the virus could bring the Global Economy to the brink of recession as we head to break, heres a our data tracker, surging higher than expected, 0. 5 , the largest increase since october 2018, including food andne ergy. Prices jumped by 0. 4 . Were back in a couple of minutes. So why isnt it all about you, when it comes to your money . So. Whats on your mind . We are edward jones, a 97yearold firm built for right now. With one Financial Advisor per office, were all about knowing whats important to you the one who matters. Edward jones. Its time for investing to feel individual. The new rx. Crafted by lexus. Lease the 2020 rx 350 for 419 a month for 36 months. Experience amazing at your lexus dealer. Doprevagen is the number oneild mempharmacistrecommendeding . Lease the 2020 rx 350 for 419 a month for 36 months. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Market movers. Analog did warn it could see a multimillion dollar hit in the Second Quarter due to the coronavirus. Meanwhile, it looks like investors are turning to zoom video as a coronavirus play as fears of facetoface meetings grow analysts say some companies in china are telling workers to stay home longer, which could mean increased work done on teleconference this stock up by 8 . And tyson foods dropping, the Poultry Company saying theyre seeing a slowdown because ports are backed up due to the coronavirus. Stock down 2 today. More retailers are warning today about the coronaVirus Outbreak and that it may hurt their sales in china adidias saying since the new year business has dropped 85 . But they say the slowdown not just confined to china theyre saying theyve seen declining traffic in other markets like japan and south korea but its too early to assess the impact at this time another german sports wear maker, puma, also cautioning that it expects the outbreak to hit profits, though the company says it is working under the consumption that the situation in china will normalize and puma will still be able to meet its goals for the year asia makes up about a third of total sales for both puma and adidas and Morgan Stanley came out and said its not worried about the coronavirus affect on nike the firm reiterated it as overweight and call the coronavirus a transitory challenge and suggesting investors buy the stock on any pullback, keith, and investors are buying on any pullback the resilience in the market does show up in some of these names like nike, puma and adidas theyre stocks are holding up just fine. Its all about the timing and when this coronavirus epidemic, not quite yet a global pandemic, but when it runs its course. And the other school of thought when you look at Companies Like puma and adidas is will some of the demand get pushed forward once people are able to come out of their homes and go shopping. Will they be spending double . Does it get pushed forward you have to look and i dont know the seasonality of the sales trends for those companies in china is it perhaps the case where in september and october theyre not selling a lot of goods and as a result their sales will double so i think thats one of the things that people are looking at mostly and most importantly, most people are thinking this is going to tb as the note said, a transitory challenge, we are starting to see a trending down in the cases and tlr vaccines that are ready for testing so perhaps it could end quickly and china could get back online. Nike is trading up off the upgrade. Weve got just 42 minutes left of the session were up about 140 points on the dow. The dow is not quite set for a record closing, but the s p and nasdaq are as things stand up next, its word on the street, featuring four surprising stocks that are dominating popular esg funds in the u. S. And later, get another read on the consumer when we analyze earnings from i max, as viand zillow all due out after the bell announcer Market Movers is sponsored by payden regal. Under 40 minutes left of trade. Time now for word on the street. Citi group says it expects group to reach fresh highs of 2,000 an ounce in the next 12 to 24 hours. The firm expects investor inflows and gold buying to offset any risks from physical demand, for instance, in asia. Bernstein upgrading nvidia to outperform the firm downgrading the stock last february on significant head winds but is saying that the Current Situation seems more stable with upcoming analyst day and the closer with the chip company and it also had a very Strong Quarter which has helped nvidia rebound. And Credit Suisse says esg investing is becoming increasingly popular funds tracked by the firm reached 1. 3 billion at the end of 2019, compared to virtually zero in 2017 the most popular stocks include microsoft, alphabet, apple and amazon i mean, my only argument with this is a lot of people own those stocks anyway. Its not like this report unveiled some really clever new small cap, you know, very greenfocused stock. Its more i guess a sign of some of the ones that people avoid that were already aware of like Energy Stocks. The thing about esg funds that we have to remember is theyre there to make money for their investors, just like any other fund so theyre going to make the case for why microsoft and apple, or an alphabet fits into a bucket and some of them do. Microsoft has Good Governance on their side and youre going to see a lot of Tech Companies because theyre not oil and gas companies, i guess you could say. But i agree with you a little bit. Its not all that surprising to see that these are the names. Microsoft was not surprising, as google i thought was more surprising, or its one of thos, theres not a rule book on what constitutes an esg name. So people are putting in what they want. Was most interesting to me thats not in there is tesla so tesla is well known and well regarded to be this electronic car Company Saving the planet with their products. But it also gets back to even in esg funds, they dont just buy things to buy things its probably too expensive for a lot of those funds right now. The other point on the gold note, which is bearish on jewelry demand, overall very net positive and outlines all of the macro drivers for gold with that in mind its not that bullish a price target gold again, it just sort of continues to make sense to own it but not huge returns if you look on only the 6 to 12month. I think theres a couple of things going on. Number one is the price in the 1,100 to 1,300 and even below that so its poking its head up out of the ground. And the second thing is you have fundamental drivers going on Fund Structures that are starting to use it as a hedge and Central Banks that are to push the price higher but it certainly will be enough to offset the jewelry demand. Over the longer term, the best investment is still equities, gold is a safe harbor to store value and protect you against some event that may occur. But youre right, as we get longer in the global cycle and longer in the u. S. Cycle, people become more nervous about the political situation, youre going to see more people. But you stay stocks over gold. Always. Coming up, weve got your last chance trade with keith. And former fdic share sheila bair will make the republican case for why democratic candidate Elizabeth Warren may have crossparty appeal. As we head to break, bonds yields with ticking slightly higher, tenyear 1. 5 , so resistance to move higher, the tenyear were back in a couple of minutes. Announcer the bond report is sponsored by pimco memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk woi felt completely helpless. Hed continuonline. Alk. 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 18778668555. Its almost like a challenge everyday to see 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 welcome back to closing bell. 32 minutes left of trade youve got the sector heat map on the s p almost an exact reversal of yesterday. Technology, financials, energy lead the charge. Utilities stay at the bottom that sort of discrepancy between financials and real estate and utilities suggests weve got a big move higher in yields and a fractional move higher than yields in fact, the dow not quite in record territory, but the s p and nasdaq are. The 3380 is the close for the s p to watch. Here are the key things driving the action were on Nasdaq Record close watch as we saw some signs that the spread of the coronavirus is slowing and new expectations that china would take more measures to bolster the economy. S p as well as we just mentioned. Companies are spelling out the impact that the virus will have on their bottom line and the pace of homebuilding fell less than expected as the Housing Market continues to show strength time now to get a news update withcourtney reagan good afternoon. Heres whats happening at this hour President Trump ousting the pentagons top policy official who certified last year that ukraine had made enough anticorruption progress to justify the release of the u. S. Aid to kiev. Resigning, saying he was leaving at trumps request the president thanked him for his service. Two 13 year olds have been arrested in connect with a fire in california. The blaze at a local library left one firefighter dead and another unaccounted for. Officials identifying the deceased firefighter as 30yearold ray onfigurela and the several is still on for 25 year old patrick zones. And the first lady is receiving an award acknowledging her work on issues affecting children. It is my hope that by promoting the best values we will give a voice to the concerns and struggles of our children and help them overcome the challenges they face on a daily basis. Thats a cnbc update at this hour back over to you. Courtney, thank you. The head of the imf warning today that the Global Economy is on far from solid ground, saying, quote, the coronaVirus Outbreak is the most pressing uncertainty. It is a stark reminder of how a fragile recovery could be threatened by unforeseen events. Last year the Global Economy grew at 2. 9 , the weakest year since 2009 and dangerously close to the recession threshold of 2. 5 . So will the coronavirus push the world into recession joining me is steven roach, former Morgan Stanley agent chairman always nice to see you what kind of a slowdown are we looking at for china and the Global Economy thank you china is flatlining right now, if you look at the daily data on coal consumption, intercity traffic, the normal rebound after a Lunar New Year holiday is completely absent coal is down about 45 still, year on year, and tran 80 as on year so the growth rate in china, which slowed to a 27year low of 6 in the final quarter of 2019 could be 3 or 4 this quarter it could be a little bit better than that in the Second Quarter. I do look for virus containment and a pretty significant rebound in the second half of this year. But nothing like we saw in the 2003 sarsrelated rebound. And just the final point to pick up on the imf warning, its well taken, the world is only about fourtenths of the point above the global recession threshold, and since that update was published japan has gone probably back into another recession, germany and france industrial output plunged in december previrus so with europe and japan and china in trouble, the u. S. Certainly will not once again be the oasis that the markets seem to think it will be in 2020. Clearly china is injecting a lot of monetary stimulus, but what about the Smaller Private Companies . How much will they be hurting from this falloff in demand and how many more months of a lack of demand would we need to see before you start seeing some of those Smaller Private Companies actually go bust well, wilf, i think, first of all, the stimulus that china is injecting right now mainly through the central bank, does nothing to really arrest the dry cone yen quarantines and bans on intercity travel. Those are ongoing and in large part that is the front line of containing this disease, but also in limiting the ability of 270 million Migrant Workers to get back to their factories and put china back to work the Smaller Companies that youre alluding to, i think the government is making an effort to provide special lending assistance to smes and i think some further measures were announced, reported in a reuters story today. These measures, though, will just reinforce recovery once the disease is contained they will not arrest the virtual lockdown of the chinese economy thats ongoing today so what do you make of this market, steven the fact that were at record highs now for the s p and the nasdaq, all the companies so far that have warned, including apple, just shoot back up even if they get a minor hit. The chinese stock market has recovered all of its losses from the first fear of coronavirus. Does that make sense well, its a loaded question. Certainly it doesnt make sense. Irrational exuberance never makes sense. But as long as Central Banks are opening up the liquidity spigot as wide as they are, the markets pay absolutely no attention to any potential threats to economic activity. Its the here and now and it works until it doesnt and i think if the Global Economy is as weak as i think it is in the first half of this year, that points to a pretty serious reckoning for a frothy financial market. Steven, quickly your take on president xi jinping and whether hes going to face serious repercussions from this once things have calmed down and were back on the right back will he see a hit to his power and authority . I dont think so, wilf. I think a lot is being made out of that by the western press who is always looking to knock down the chinese system or the chinese leader i think once we move to the other side of this virus, there will be a return to focus on chinas major problems, such as debt intensive growth, Environmental Issues and the ongoing conflict with the United States this is a serious issue right now. I dont want to minimize that at all. But i was in china during sars and the government is being much more aggressive in dealing with the coronavirus today than it did 17 years ago, i can assure you of that. Thanks for joining us great to see you, as always. Thank you. Up next, weve got your last chance trade keith is looking at one etf he thinks is oversold. And later were talking politics and the markets with our closing bell closer of the day, sheila bair shell tell you which democratic candidate she prefers to see on the ballot and what she thinks of the transactional tax well be right back. Announcer sponsored by sector spdr etfs specter spdr etfs. Visit us on the web at sector spdr. Com dont get mad. Get e trade, dawg. vo in every trip, theres room for more than just the business you came for. This wave is rolling, lets get going we got places to be heyeyey vo whether thats taking in every moment. Or capturing a moment worth bringing back. Thats room for possibility. Lets see how far we can go, oh oh oh oh oh 20 minutes left of trade, a check on our closing bell big board. Were on record high watch for s p and nasdaq heres a look at some of todays biggest leaders in the group diamondback up 6 , crude oil prices settling at a nearly threeweek high, so having some love after what has been a tough year year to date down 12. 5 , mainly over economic worries about china. Despite a geopolitical bid at the start of the year as well. Keith, what are you going for . In a market that its tough to find things that are getting too stretched or good short plays, i came up with the fxe which is the etf that tracks the euro so one of the patterns we pick up in our work which is a pretty good definition of where the market is going to be is when you get an overbought dollar versus an oversold euro, thats typically negative when you think about the flows of funds that will occur as a result of that and those two currencies will typically its a reversion to mean trade so now the fxe is oversold and it should come back up to a neutral level and i think in the next couple of weeks you should see a rise in that. This is a trade everyone got wrong. Everyone expected the dollar to weaken this year whatever you want to call it, its been a safe haven, an outperformer on growth, the least likely to ease from Central Banks, money keeps rushing into the u. S. Thats right, but kind of take a look at whats happened since the beginning of the year. We had the first news of the coronavirus that was starting to break in january there were creeks in the Global Economy. Youve seen that revealed in the tenyear yield and other yields. So thats why people got on the wrong side of the trade. But we are in a situation now where the euro is oversold at the same time the dollar is overbought that typically is negative for u. S. Equities, so even though i think this is an upward trending market, we could see equities pull back a little bit as the euro comes up. I think the other point is the dollar is the only safe haven this year because the yen suffering beca really poor growth rates in japan. That also applies to the euro. France recently disappointing data the guard has taken a tough job. Right, figure out new tools stimulate the economy or call on the government fiscal policy marks makers. Its not like the German Government has got much ability to do that you talk about the elections which looks likely now. As the euro weakens, the market expects it. Weve got 18 minutes left of the session, nearly 17 well take you inside the market zone coming up next to find out what is behind groupons big drop that story and much more on the other side of this break limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Sponsored by etrade get 100 on us when you deposit 5,000 14 minutes left in the trading day. We are now in the closing bell market zone, commercialfree coverage of all the action going into the close. Today weve got keith bliss and chief executive officer of Boston Private Wealth. We are set for a record closing high on the s p 500 and also on the nasdaq, its not quite there. But its still up 120 points lets kick things off with another look at the massive up in two stocks. Virgin galactic is up 17 or so and over 200 year to date in 2020, as Retail Investors bet on the future of space travel telling cnbc it is seeing seven times more trading activity in the stock than it did in 2019. Remember, they went public in october for a merger with a Holding Company run by a tech investor meantime, tesla stock seeing a massive run up, into record territory. Wall street is growing more confident in the electric vehicle, upping the price target to 928, just one day after bullish calls from Morgan Stanley and price target increases. Shannon, whats your take on the run up in these two stocks tesla ive been wrong on. I wasnt expecting the run up that weve seen. Obviously investors care a little bit about management and governance and care more about the innovative nature of the business for this stock. I think that with price points where they are, there is some risk of recessionary impact. But i think the capital raises will continue to be well digested by investors. So i think the stock has some room to move would you jump on this momentum bandwagon, keith . I dont think so right now. Its a little overdone for me. Just to be clear, tesla were talking about. Exactly so theres a lot of demand on the secondary offering and that gave a big pop to the stock. But i think of it is being run up on i think not just the technology, but youve got a rock star ceo that lots of Retail Investors, especially the young ones love, and theyre going to make a bet on him. About 11 minutes left of trade. Shares of groupon dropping 40 after Fourth Quarter earnings and revenue missed estimates hitting an alltime low today, the ceo admitting that their q4 performance disappointed by, quote, nearly every measure. Groupon is a shadow of its former self. It once had ambitions to be a major shopping platform and now its exiting the goods category to focus on experiences. The onetime tech darling has struggled with vendors and bargain oriented customers and certainly with competition a Silver Lining writing that this raises the likelihood of a merger and it could be creating with an iac steward to manage it all, guys. Thanks so much for that keith, it does appear more and more like a takeover target, which would find some support . Groupon is out on an island when you look at some of the competitors, theyre backed by larger conglomerates and it will be a takeover target. Its losing at 43 of its value. It will be driven down and somebody will come in and scoop it up at a very cheap price. Dish out with earnings this morning. The company beating on the top and bottom lines Julia Boorstin joins us now. Consumers are ditching their bundles, albeit at a slower rate than past declines dish lost nearly 200,000 subscribers, fewer than a year ago and sling Tv Streaming Service recorded its first ever subscriber loss of 94,000 in the quarter. Those losses are the result of the removal of certain channels and growing competition. Hulu now has more subscribers than sling tv. Analysts have watching dishs mobile play as it buys sprints prepaid business dish says it expects to spend more than 1 billion on its wireless build out this year. Shannon, where do you sit on dish and where it fits in in terms of how you feel about the stock versus some of its big competitors . I feel like content is king here and thats what youve seen dish suffer from, not being able to keep channels on the stations i think theres probably still a place for dish, especially in more rural areas that dont have Broadband Access but going into the wireless space, highly competitive and expensive. Im a little bit concerned theyre not going to be able to deliver over the next three to five years. Keith, your take on the Telecom Media space . I think subscriber tv is dead once and for all and even in rural areas theres technologies that are going to provide broadband across radio towers. This was the grand vision when we were doing dialup at 1200 baud rate. And now everybody has fast internet, good streaming so paid tv as a service is over. Its all going to be streaming Services Going forward. Oil prices down more than 12 so far in 2020 as the coronaVirus Outbreak weighs heavily on demand. Jpmorgan out with a new note on the transportation sector today saying while the Virus Outbreak has been viewed as a head wind on activity, the drop in net fuel prices could be a tail wind for some, including fedex. Fedex trading higher as they note they will see a larger benefit because they use more jet fuel shannon, how do you feel about that call . We sold fedex last year fuel costs are not the problem that fedex has they have a poorly executed integration of their european business, and they have a last mile problem theres not going to be this integration of ground and express that folks are expecting. And so while there may be a modest benefit, theres a lot of places you can go in your portfolio that are going to benefit from lower fuel prices and fedex wouldnt be my choice. Which would be . Would you like one of the emergency stocks i think energy has a place here i think theres still opportunities there. Were not loading up on energy, but you can also see it in areas like chemicals, so certain industrial names that have a meaningful chemical component, that could benefit i think its a bit of a reach for fedex to want to buy the stock on lower oil prices. What do you make of Energy Stocks its been dead money for a while, as weve seen throughout 2019 and im of the opinion that were going to have oil kind of stuck in this channel for a while between 50 and 65. Were still pumping more than we can deal with down in the other shell formations so im not sure i would play in the energy space right now. Weve got six minutes left in the session. Were up by 114 points on the dow. We hit session highs about 45 minutes ago. Apple says the impact of the coronavirus could continue into april. Josh lipton has a look at what products could be most hit josh. Wilf, take the iphone it accounted for 61 of revenue in q1. Apple now saying that iphone supply will be temporarily constrained. That means its likely consumers when ordering online might have to wait longer until their new phones arrive. And the biggest risk is if china doesnt get back on its feet that apple runs out of supply. They say that is a low risk. Reportedly the lowcost iphone still launches next month. Thats important its estimated they could sell as many as 30 million of those phones this year or about 15 of total units. Wearables accounted for an estimated 8 of revenue in q1. Even before the outbreak apple was supply constrained on the air pods and finally some analysts think services could get a boost as more chinese consumers stay home and download apps for entertainment. Back to you. Josh, how much supply disruption or how long could this last before we would see, for instance, apple have to delay getting new products out so you do have to count on analysts, the near rough math on this Morgan Stanley, she was telling that apple exits with about three weeks of iphone inventory. The question becomes how quickly can apple get back to normal levels that will depend on quickly the manufacturing facilities can ramp back up. Josh, thanks so much. Where do you stand, shannon, on apple . I think this is horrible timing for apple weve seen great momentum on services and wearables if we see the narrative start to pivot back to hand sets thats certainly not a conversation that apple wants to be involved in and especially with this lower price hand set, they were anticipating upwards of 15 Million Units to be done by the middle of the year and that timeline which was rather accelerated, is put in jeopardy, again i feel like the analysts are going to start to go back to the hand set conversation, which is not where apple wants the narrative to go. It doesnt seem to be hurting the stock all that much. But is anything hurting any stocks weve been talking about this for the last few days. And again, theres some potentially bad things that could happen to apple stock because of supply chain disruptions, but i agree with shannon, the bigger risk is if the narrative turns back to hand sets and gets away from wearables and services, which is where they want to drive the narrative. That may have a larger impact than a disruption in their sales figures. Shares of zillow are up higher we have the one thing to watch. Deeply involved in the direct buying and selling of homes, so zillow reports Fourth Quarter earnings and investors will be looking for any update on progress, especially how the company is improving economics there and growing in its existing market. So on a note yesterday, raymond james, which as the market performed on the stock did point out that zillow has older homes on its Balance Sheet that have been marked down significantly also noting that until those homes are sold, the home segment will continue to have its share of skeptics. Right now up 4 . Back over to you. Thank you very much keith, your take on this i mean, housing data seemingly been supportive of late. The stocks moved up because of that its not only been supportive but we also have a housing shortage in the United States. So more permits, more homes come online that should certainly benefit zillow and the other housing related stocks i would be bullish. Up about 4 on the dow. Time for a check in on bonds, rick santelli. Wilf, looking at highly unchanged. We settle add 156, despite 13year best inhousing starts and permits. No response, virtually none. Look at bar clays, the spread is at 97. You add in the 156 for tenyear note yields, at 253, thats the tightest the Investment Grade spread has ever been dollar index up 11 in 13 sessions, the chart takes you back to 2016 finally, bertha, todays range is 30 points above yesterdays thats strong. Yeah, were seeing that momentum come right back a big snap back. Tesla a big reason why its adding almost as much in terms of point impact as apple today, although it is a fraction of the size. You take a look at the chart, tesla has added about 70 billion in market cap over the last four weeks. Other momentum stocks, the momentum indices are all at new highs with about 40 of the stocks hitting new highs, including nvidia and take a look at the gaming stocks that have been on fire while the buying guys that have china ex spoposue are down, the locally sourced guys are doing great. Thank you dow up today helped by goldman sachs. The bank is acting a little better after a few down days i want to highlight the role of momentum, were talking about all the stocks that are primarily tech, like microsoft, visa, semis like amd this is a new high for that particular index i also want to highlight the role of esg, environmental social and governance. A lot of activity in these etfs. For example, the lithium, this is a play on lithium batteries, and tesla has practically been moving lock step with tesla. Theres a new high for that particular etf theres the closing bell Dow Jones Industrial average just off of the highs, closing at 116 new high for the s p good afternoon, and welcome to the closing bell. Ill wilfred frost. And im sara eisen. Take a look at how we finished up on wall street. Record high again. Theres the s p, a new record close. All we need to do is have 3380, up about half a percent. Nasdaq also closing at a new record high. That would be its 15th so far this year in terms of a record close. Up until ninetenths as you heard bertha kooms say tesla a big driver and the nasdaq up a nice 115 points on its own and you add rotation versus what we saw yesterday because yields were a little bit higher today and that certainly helped the banks and it helped technology, consumer discretionary, health care, energy, though, the best performing group today for a change after oil prices. Well get earnings from zillow, avis, budget group, and imax well bring you numbers as soon as they hit. Former fdic chair sheila bair, well get her reaction to bloombergs financial transaction tax ahead of tonights debate joining us head of u. S. Economics at Macro Research and still with us chief Investment Officer of Boston Private Wealth and keith bliss, ceo avenue iq capital, usa keith, lets start with you and talk a little bit about the rotation we saw today. Energy soaring, technology, financials also leading the way. Almost a direct bounceback from yesterday in terms of sector performance. And youre going to have money pour into those riskier sectors and industries as theyre chasing the market a little bit again, its one of those things when you look at the market, we dont have the Broader Market oversold or overbought there are certain pockets in there that are like nasdaq has been overbought for some time but it continues to run higher and i think youre getting into a situation where youre going to have money that needs to be put to work, its got to be put to work, its going to come into u. S. Equities its the best game, maybe the only game in town right now, especially as we look across the broad broader globe. The fed is on extended hold and thats likely to be the case until inflation turns up in a meaningful way. Could they loosen, with china, with japan, with germanys growth i think the odds are that they do nothing. If theyre going to move this year, its going to be a cut my own expectation is were not likely to see anything for the next 12 months. I was just wondering because the market i for the summer so is the market ahead of the fed here often thats the case. But is the market going to be proven right or wrong . Lets let the market get a chance to catch up to the data obviously weve seen Interest Rates come down quite a bit because of sort of weakness and fears around whats going on globally but you look stateside, things are looking up and thats not just this mindless nonsense about the fed inflating its Balance Sheet and all this other ridiculous sort of chatter you hear from the bears. The Housing Market is up Building Permits are up 20 year over year. Thats a leading indicator for economic activity. End of discussion. So i think the real Growth Outlook in the u. S. Is looking fav favorable and what were telling our clients is as the fears subside, position for a bear steepening of the yield curve. The long end is going to do most of the leg work, at least in my view. Earnings, avis budget numbers, phil lebeau with the details. Beat by a wide margin for avis earning 73 cents a share, the estimate was 50 cents a share. Revenue coming in better than expected what stands out is the guidance from the company it is now expect to go earn between 375 and 475 a share for 2020 the consensus out on the street, 399 a share so a little bit better than consensus. Revenue better than many people are expecting in terms of guidance 9. 4 to 9. 6 billion most were expecting revenue close to just 9. 35 billion. So you see shares of avis budget moving guys, back to you. Thanks so much for that one lets go back to the Broader Markets. Shannon, what do you make of the comments, the fed is going to stay on hold and well see a kind of bear steepening of a bull steepening, excuse me, of the yield curve . I agree i think the bond market is ahead of the fed here. I think that they have been reading into the comments of the fed around the coronavirus as being a meaningful gdp disrupter globally this year and i think that that will be borne out to be less of an impact than what the bond market is seeing here im a bit concerned, however, that the fed cut three times last year and we have obviously seen the yield curve flatten once again i know that there is some flight to safety that were seeing on the tenyear, but my concern is how much more room does the fed really have to move in moving the yield curve. And without clear some clear indications of inflation or an inflection higher in Global Growth, im not so sure were going to see the yield curve steepening that we would like to see later in the year. Yeah, i would just say, look, if you look at i mean, the fed has to tell the story for why it wants to cut with strong Economic Growth and low inflation. And if they want to do that, they should start telling that story now. And basically theyre moving in that direction of average inflation targeting. If you look at their models, if they cut Interest Rates twice, lets say next year, that could help them back to a path of over 2 inflation. Theyve got plenty of reasons to cut if they want to theyre missing on the inflation target, Global Growth is slowing. Im surprised you havent mentioned the dollar. The dollar is very strong yeah, i would also say that wage growth is likely to pick up when the Housing Market is better i agree with what youre saying. Thats why i say the risks are that they cut. If they want to talk about why they need to pull the trigger right now in june, they havent really told that story. Investors are pouring money into Communication Services and health care and pulling out of sector like discretionary sectors and technology thats according to a new bank of america note that looked at the buying trends. Also noting that hedge funds and ins strugzle client flows have increasing i correlated over the past year suggesting heightened risks to the most crowded stocks keith, what do you make of that posture . It seems to be in line with what were seeing in the overall market right now they would have to theyre looking for justification of where the money flows are going to be back and forth so i would follow along with that lodge ib a little bit and investors just need to be a little bit careful of where theyre looking to put their money. If you think the economy is doing well like kneel says, wouldnt you want to be in cyclical yes, probably so right now. But i think i would be a little bit guarded right now. I think neil makes a good point. I agree with his assessment, i think if i were a betting man, despite what the market may tell you, the fed is actually going to do nothing this year. While they do have some good reasons that they may want to cut, theyre not hitting inflation targets and so on and so forth, theres also a few reasons on why they should just wait and see whats going on at this point in time and therefore, that may dampen the effect of actually getting in cyclicles with all the free money sloshing around. Shannon, its been interesting and been reported by a few companies, but it comes at a time when banks have recovered well over the last couple of weeks. What do you make of the banks at the moment challenging investing in banks is challenging given where we are from a yield curve perspective i think theres still opportunities if you look at those that generate a reasonable amount of fee income and are not as beholden to Net Interest Income on their earnings but i think that as it ebbs and flows, financials are hit by two things theyre hit by the yield curve and theyre hit by does this value rotation end up having legs and i think that investors need to see both of those before theyre going to want to move quickly and meaningfully into financial stocks for a longer term holding period. Zillow numbers have just hit. Lets get to them. So it looks like it was a better than expected quarter lets start with the huge beat it,in ate expectation had been million. So it doesnt seem like eps was provided, but it appears there be a smaller than expected loss. And the quarterly revenue grew and that was driven by rapid expansion. The ceo and cofounder also saying that he would characterize 2019 as, quote, tum ul witchly remarkable. Up 4. 4 as you said i did get a chance to catch up with the ceo earlier and he said pretty remarkable in terms of the top line growth. He said it was pretty stunning he did say zillow offers, where theyre buying and selling homes specifically was what drove the surprising growth. That came in at about 603 million in revenue it was expected about 150 lower. So that kind of was a big part of the beat. They sold 1,902 homes in q4. That was up from 1,211 in q3 that was well ahead of expectations and they do expect that to continue so bullish on that side of the business he said one of the interesting things for investors is the stabilization and acceleration in core advertising, business called premier agent as well so the core business doing well oo even if the beat was driven by zillow homes broader comments, he said the market is Pretty Healthy didnt necessarily say it was outright strong. Continues to say that prices look good as opposed to outright volumes and the type of inventory is a key factor there, as opposed to hugely bullish what is your take, neil . My take is that for the overall market Housing Construction continues to lag orders for most of the major builders, and as a result Construction Spending is likely to accelerate this year. You know, the cfo of caterpillar in their earnings comments talked about how construction was going to be slower this year i think that some of these companies, with the global tilt, theyre a little bit too cautious on whats happening right now in the u. S because i do think there is ample scope for both housing, res res denchl and nonresidential of whats going to happen this year. Weve got more earnings, imax Julia Boorstin has the numbers. Imax is spiking after beating estimates on both the top and bottom line. Adjusted earnings are coming in at 35 cents, better than the 31 cent estimated revenues coming in at 124. 3 million. The estimates were for 117. 5. Shares are now up 7 of course with imax theres always a question about the companys exposure to china and now with the risk of coronavirus in those 70,000 theatres in china, clugt the imax theatres have been shut down since the end of january in the, report, the ceo says in terms of the Health Crisis in china, we are continuing to monitor the situation closely. Needless to say, the safety of our team and audiences is our top priority and we look forward to circumstances improving and imax continuing to satisfy chinas Strong Demand for premium Quality Content and entertainment experiences. So no specific guidance there in terms of when they expect the theatres to reopen but imax shares spiking despite that exposure to china back over to you yeah, up more than 5 keith, overall on earnings, i mean, besides the coronavirus commentary, which is interesting, what sort of trends are you getting as it relates to the forwardlooking view and the health of growth in the u. S. Again, you have to go sector by sector, industry by industry. But i think the forwardlooking guidance that a lot of companies are coming out with is a little more positive than what we were led to believe at the beginning of the quarter if you look at the s p 500 in a vacuum, the performance on the top line and bottom line has been better than expectations, overall, with roughly 80 of the companies having reported. And then the guidance going forward, theyre saying, listen, maybe we underestimated where we were going to see 2020 theres lots of exogenous factors that may be impacting individual businesses that were seeing and may come later on but as long as you have an come dafb environment, Monetary Policy and a growing economy and you have wages increasing, you have Industries Like housing, to neils point, that are going to be accelerating in 2020. Youre going to see more money in peoples pockets and certainly Companies Like imax should benefit. Well leave it there. Thank you all so much. Up next, well look at why we could see an uptick in ecommerce spending due to the coronavirus. Plus our closing bell closer, sheila bair joins us to weigh in on the democratic president ial hopefuls out of tonights debate shell tell us which candidate she prefers to see on the ballot closing bell back in 90 seconds. Announcer this cnbc program is sponsored by pimco. Or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. the number of confirmed coronavirus cases now stands at more than 75,000, this including 23 in north america. The total number of deaths now topping 2,000 and Companies Like adidas, tiesen foods and apple are all warning about the potential negative impact the virus could have on their businesses but some casinos are expected to reopen tomorrow. Lets bring in the longtime adviser to chinas leaders and multinational corporations and authored dozens of books, including how chinas leaders think. Good to see you again, robert. Whats the latest contact youve had with the chinese leadership over the coronavirus i stay in touch with them regularly. The hope is now for 15 Straight Days the number of cases reported in provinces other than hubei have been declining. It started around 800, and the last few days 70, 80 thats a very good sign. People are encouraged that the peak has been reached, but that is still uncertain there are possibilities that some carriers can have long incubation periods, purchases 24 days so nobody is resting on their laurels. Everybody is looking at this very seriously i think in the history of global epidemics, how china has dealt with this will be looked upon as a remarkable case study. Do you feel like the level of fear has also peaked and is coming down . What type of level of inclination do people have to go back to work well, i think people are afraid you see that in terms of the dramatic drop in Certain Industries obviously anything having to do with transportation, airlines, trains, hotels, restaurants, m gymnasiums, malls, anything that has public exposure people are sensitive to thats why you see the Online Activity and ecommerce growing and i expect that thats going to be a more permanent change as people get used to that trend that was occurring anyway, but now it will be accelerating. People are taking this very seriously. A friend of mine who lives in a Luxury Development in beijing, maybe 2,000 or 3,000 people, there was one case, potential case, and they locked down the whole area to where nobody could leave there. You could only go out to the checkpoint to get food delivered through ecommerce so taking it very seriously every single case. Its really a remarkable situation. Locking down wuhan with 11 Million People, hubei province, 60 Million People literally under lockdown doortodoor checks. Mobilizing the Chinese Military with 5,000, 6,000 medical and military personnel flown in. Building the hospitals, which everybody sees, in literally ten days so remarkable activity although, on the other side, there were informational dthings at the beginning that caused it to be more serious and the Chinese Government has said they have learned from the experience and well have to wait and see what those would be. You said it would be a remarkable case study. Theres room for criticism here as ell, right . In terms of the transparency early on the fact that it took so long for them to get International Authorities into the country i dont know if the cdc is allowed into the country at this point. And i just wonder if you think theyre worried about a credibility issue from this as it was already weakening in light of the u. S. chain trade dispute and the protests. And thats circulating in china as well. Its not just externally at the beginning, clearly local officials prevented information from being used effectively, and thats an important probe of the system because for all the things that a oneparty system can do effectively, i point out always the war on poverty where 800 Million People over the last couple of decades have been brought of prov tee, 100 million in the last eight or nine years and the remarkable way of organizing the party at five levels of local government, the municipal, county, township and village with the central government, and you see the same thing in this activity but on the other hand, that system lends itself to where local officials are scared to do anything unless they have higher authorization. And that delay has exacerbated the epidemic there was one party secretary, a mayor of a small city in hubei who on his own saw about 30 cases and immediately put a quarantine into effect when he had no authority to do it. And hes now looked on as a hero because he in a sense violated the system in order to help the people. Have you been in touch, robert, at all with the very, very top leadership, and what level of pressure are they feeling . Well, i think you can see by a very interesting article that was published in the leading communist party kind of theoretical journal, which was a reproduction of a speech that president xi jinping gave to the Standing Committee of the bureau, which is the highest authority, Governmental Authority in the country and the speech was given on february 3rd and in that speech president xi said that he was first made aware of the epidemic on january 7th, which was almost two weeks before he made a Public Statement about that. So people kind of rolled their eyebrow at that, not certain what communications occurred then but clearly on the 20th of january and this is stated in the article, very explicit where president xi is using these kinds of revelations of interactivity at the highest level of china are unusual so we take that seriously. And then he gave the order on the 22nd, and at that point there was a huge transformation in terms of the procedure. But before then, there is definitely a period of time in which the system itself was preventing the information, which led to a purchase igmuch epidemic. Thanks so much for joining us still ahead, republican and former fdic chair sheila bair says she wants a democrat on the president ial ballot and she will discuss with us who in particular she is considering supporting everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Welcome back avis budget shares surging after a profit beat and up 13 zillow spiking, much better than expected sales, its up 8. 5 , been on a strong run since about october. Imax jumping after beating on the top and bottom line. The company did not give any guidance on when it will be able to reopen theatres in china. And cheese cake factory shares falling after a profit and revenue miss, down 4. 6 . Up next, Mike Bloomberg will make his president ial Campaign Debate debut tonight in las vegas. Find out how it could impact his race for the white house. Plus former fdic chair sheila bair says one candidate on the debate stage tonight could have crossover appeal to reblanpuics. Its probably not who you think. Tune in. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 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 isnt just a result, its a responsibility. Emerson. Consider it solved. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk here is a check on the big board. It was another record day. Nasdaq closing at a record high. So did the s p 500 as far as the nasdaq is concerned, heres a look at some of the biggest leaders, some high flyers like tesla up another 7 almost today. Nvidia coming off of a great quarter, another 6 today. A lot of the chips stocks rallied. Big moves, were talking 2 to 3 moves carrying us forward not too concerned about the slowdown in china and the coronavirus headlines. Its time now for an update wilf, heres whats happening at this hour an australian climate scientist says that Global Warming is leading to an irreversible melting of artic ice this is according to an International Study she coauthored. With ice sheets its very easy to melt them. But building them back up again takes thousands and thousands of years. So what were seeing with the west an artic ice sheet is that the starting of the melt will continue, despite our efforts to stop it. Military units from the u. S. And greece taking part in a live Fire Training exercise at the foot of mount oh limp is they finalized an agreement three weeks ago. Its driven by border disputes. Prince harry and his wife meghan will be returning to Great Britain this month to do their final working engagements with the royal family. That is the cnbc update at this hour i will send it back to you i was just wondering, when do we stop calling them prince harry . Does that change dl forever be prince harry. Duke and duchess of sussex. I hope they have a nice final home and they have a fond fare well. Mike bloomberg will make his debut on the democratic president ial stage tonight in las vegas. Kayla has a preview for us he has yet to appear on any of the early state voting ballots, but tonight Mike Bloomberg will be on the debate stage for the ninth democratic debate earlier this afternoon. He got a feel for the arena, for the podium, walking around, checking out the space at the venue here in vegas. He qualified by notching more than 10 support in four national polls, but also because the dnc dropped a requirement for grassroots donors. Thats something that his rivals will continue to seize on, as well as his ties to wall street and his policies during his term as mayor bloombergs campaign has also teased his own attacks on frontrunner Bernie Sanders and said hes willing to dish out many counterpunches. Hes not going to be a punching bag he is a new yorker and hes a tough guy. So hell be certainly polite, cool, calm, collected, but hes not going to be taking a whole lot of stuff from folks. If they come at him, they should anticipate a whole lot more coming back. Here in nevada, candidates on the ballot saturday are vying for the support of the influential Culinary Union representing the Hospitality Industry the group declined to endorse sanders because they like the Health Insurance offered by their companies. Sanders still has a double digit lead nationwide and a significant lead here in nevada. Thank you very much for that. And former fdic chair sheila bair has been outspoken about the election and has described herself as a republican looking for a democrat on the ballot to support and in her most recent piece she made the case for Elizabeth Warren saying warren is quote, no socialist and she joins us now for the closer belle closer good afternoon to you. Thanks for joining us. Thank you. Theres been two op eds the first one was more broad saying as a republican i want a democrat to vote for but you were unsure who. Then quite clearly on january 30th coming out for Elizabeth Warren what changed and why senator warren i think the first piece was a plea for government experience i was very concerned about Pete Buttigiegs rise i dont think hes qualified i think in 20 years hell be great. Now hes not ready and you get this dynamic where people tend to vote negatively, which always helps people who dont have much experience they dont have a record to shoot at so people like warren or biden, which i also mention favorably in that piece are at a disadvantage i know joe biden, i think there are a number of fine people in the race but i do know Elizabeth Warren quite well ive worked with her and it concerned me the way shes being portrayed by her critics and some of the media as a left wing socialist. She is a capitalist. She just wants the market to work for everyone. The one pushback here is that thats fine, shes a capitalist and she wants the markets to work for everyone but she also wants a lot of regulation and she wants a lot of taxation and she wants a lot of those things that are not traditional republican values. Yeah, so i think on taxes, i think she wants to correct the system there are different ways to go about it but the tax system now is rigged for the higher income people and Capital Gains are taxed at a much lower rate than labor income in a steppedup basis, you just sit on your Capital Gains and then your heirs can inherit it taxfree so there are a lot of ways that currently favor the wealthy that have helped incentivize these massive accumulations of wealth. You do want to sit on it if you never have to pay Capital Gains and you just die and leave it to your heirs so there are different ways to approach that. But the point is these massive accumulations of wealth have been facilitated by a tax code which shes trying to correct. The wealth tax is one piece of that there may be other approaches. But you want a higher corporate tax, a wealth tax, an exit tax. You know, i think shes also a realist. This idea that, you know, taxing Investment Income at a higher rate is going to slow Economic Growth thats just not true the world and the country is awash in Investment Income but everybody has got money to chase returns. The last thing we need is more tax incentives to incentivize more investment chasing and fewer opportunities for return so granted t combination of these things need to be thought about carefully, but i think increasing taxes on the great wealth, these massive accumulations of wealth, as long as equalizing the Investment Income and earned income rates is important im a republican so i worked in the senate in 1986 when we did the tax reform bill over reagan and the rates were equalized so this is not really a partisan issue but a fairness issue. Of the candidates on the stage tonight, the one that was once a republican is mayor bloomberg. He doesnt appeal to you well, i think he was a good mayor. I think there were some things he did quite well. I care a lot about gun control and thats not my portfolio professionally, but as a mother i care about it and hes been a big supporter of scholarship funding, another key area for me but on financial reform hes not been good. I mean, i had a personal experience with it when i was chairing at the fdic he was really pushing us to implement these european this agreement which would have really lowrd big Bank Capital Requirements we had to fight a lot of people. He was pushing for deregulation before the crisis and after the crisis i didnt hear him raise his voice to support reform. And i wasnt aware of the red lining comments that he made in 2008, but i was a bawled i couldnt believe how anybody would think that way so i am concerned that hes captured by this kind of narrow wall street ecosystem, he cant see how ridiculous it is to say things like ending discrimination against minority neighborhoods somehow caused the financial crisis and that is what he said he can say he didnt but that is what he said and it would be helpful for me if he would personally repudiate that. How about Bernie Sanders . Hes a socialist. What u do you make of the fact that as his odds have gone up the market has not seemed concerned about him . What do you think he would look like for may be skepticism about whether he can really win. Im skeptical how much he would accomplish because he doesnt have a strong record in the senate hes not been somebody who has built a lot of relationships so that may be part of it, too, perception, even if he could win he wouldnt have the skill set and relationships to do much with it. A quick banking question, if i may, to round things off 5,000 or so fdic in banks at the moment what will the number be in ten years time or five years time . Thats a good question. Were starting to see some movement for Bank Charters and i think thats a good thing. You dont want special rules but if they want to become banks and have the same regulation i think thats good and more competition is better. I do think that for the smaller banks, community banks, regulators need to be mindful of not putting undue regulatory burdens on them. Im not sure thats always been the case that will shrink the number, which i dont think is a good thing. You dont think there will be a lot of shrinkage the regulatory costs i think has already forced some consolidation and it could be more i think theres new players coming on the scenes and i think some adjustment in terms of how we approach community banks, it has been too heavy handed. They didnt have anything to do with the financial crisis. Theyre not perfect and they had nothing to do with 2008 and they kind of got caught in the web, which was unfortunate. Thanks for joining us. Happy to be here. How much hate mail did you get when you said republicans should vote for warren on the op ed page of the wall street journal yeah, some pretty significant pushback people feel strongly about her one way or the other theyre a supporter or a critic. So i think i did get a lot of emails saying well, you pointed out some things i hadnt thought about before, so ill take that. Sheila, thank you very much still ahead, attorney general bill barr taking aim at big techs liabityli shield. How that could impact the tech sector coming up announcer cnbc update is sponsored by comcast business. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. vo in every trip, theres room for more than just the business you came for. Lets make the most of what weve been given whether thats getting a taste of where you are. Lets get to living. Or bringing some of that flavor back home. Thats room for possibility. Lets get to living try to win by attacking, now, we know the trump strategy distorting, dividing. Mr. President it. Wont. Work. Newspapers report bloomberg is the democrat trump fears most. As president , universal healthcare that lets people keep their coverage if they like it. A record on job creation. A doable plan to combat climate change. I led a complex, diverse city through 911 and i have common sense plans to move america away from chaos to progress im Mike Bloomberg and i approve this message. Attorney general bill barr blasting big tech, raising the prospect the companies could be held liable for dangerous content online. Those comments came during a workshop today on section 230. That is the liability shield that gives Company Immunity from the content thats posted on their platforms. Barr said that companies are stretching the protections of the law. Giving broad immunity to platforms that purposefully blind themselves and Law Enforcement to illegal conduct on their services does not create incentives to make the online world safer for children. In fact, it may do just the opposite. Barr also warned that the doj would not delegate its responsibility to protect americans to the judgment calls of profitseeking private firms. Guys, back to you. Thank you up next, forget tesla. Wall street has found its new favorite speculative stock and space investors are over the moon about it. Well discuss straight ahead. And dont miss cnbcs interview with the nasdaq ceo, 5 00 p. M. Closing bell back in a couple. But in a world full of talking, shouldnt somebody be listening . So. Lets talk. 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. Gimme two minutes. Eligible for medicare. And ill tell you some important things to know about medicare. First, it doesnt pay for everything. Say this pizza. [mmm pizza. ] is your part b medical expenses. This much about 80 percent. Medicare will pay for. Whats left. This slice here. Well. Thats on you. And thats where an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company comes in. This type of plan helps pay some of what medicare doesnt. 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Tick, tick, tick, time for a wrap up. A Medicare Supplement plan helps pay some of what medicare doesnt. You know, the pizza slice. It allows you to choose any doctor, who accepts medicare patients. And these are the only plans of their kind endorsed by aarp. Whew call unitedhealthcare today and ask for this free decision guide. Higher today, which means it is now up 233 this year. Here for more on whether the rally holds is an analyst at arc invest we know you guys as super bullish on tesla what about Virgin Galactic i think Virgin Galactic is a perfect example where you have investors getting ahead of the engineers. Thats not to say theyre on the wrong path they think their goal of hypersonic goal to goal travel is a huge opportunity, its a 270 billion market annually its the right path, just very early. So for them you think longterm at least that the bull case is not what theyre doing first, which is space travel, when they adapt their technology to make travel from places like london to sydney or whatever it might be much quicker . Exactly and i think what youll see and what were looking for, is there a demand for the shortterm Space Tourism and i think thats already panning out. You see with their reservation numbers. And the question is will this business put off enough cash flow for them to continue to invest in r d for hypersonic in our u. S. Domicile products we do not hold Virgin Galactic current. What do you think has driven it recently . So i think theinvestors hav the right level of excitement for the space industry its just been all focused onto this one stock we think over the next five years the space industry as a whole is very exciting we see the cost declines for reasonable rockets for satellites, for drones as well so we think the Aerospace Industry is very exciting. But all of this has been focused on just this one stock. Critics of tesla could say the same for electric vehicles into one stock for tesla so the difference there is Virgin Galactic still has to put the first human in flight. So theyre at pretty much square one. Tesla i think is much further along. Theyve proved themselves. Theyve overcome a lot of scaling issues if you look at their autonomous data collection, theyre much closer to this huge end market than Virgin Galactic is. All right, sam, thank you for stopping by. Thanks. Coming up next, breaking the mold, burger king is shaking up how it makes its iconic whopper and its new campaign is having alofl wall street buzzing well discuss coming up. E. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. Courses on options trading, webcasts, tutorials. Yeah. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well exactly. Well except now, youre binge learning. Oh, i like that. Thank you, i just came up with that. Youre funny. Learn fast with the Td Ameritrade education center. Call 8662967451 or visit tdameritrade. Com learn. Get started today, and for a limited time, get up to 800 when you open and fund an account. Thats 8662967451, or tdameritrade. Com learn. [ fastpaced drumming ] welcome back lets have a collect on some stocks that just reported earnings shares of boston beer getting crushed. The maker of sam adams beating Sales Estimates but missing profitable forecast because of fall in gross margin and soaring advertising expenses the stock down about 10 . Time for the buzz on wall street olay says it will stop retouching skin in advertisements by 2021 part of the print campaign called my lay featuring. It tested the no touch policy in the Super Bowl Ad this year. Its bizarre you were able to do that. Its like fake advertising a product meant to keep the skin in good quality and you air brush its lying. Sure its embellishing. You want perfect hair and perfect skin and perfect everything so usually. You cheat. The pictures are retouched. Its a common magazine practice. Sure. Its not just for advertisements. Anyway. I think it speaks to what Consumers Want which is authenticity. Right. And real people and why Victoria Secret and other brands are doing well because theyre for real people and not everyone looks like the supermodel. Burger king cutting artificial preservativives from the signature whopper. Creating a unique ad highlighting the change with a Global Ad Campaign featuring a moldy whopper supposedly 28 days old. Where says the beauty of no artificial preserves this after mcdonalds removed the artificial additives in seven burgers in 2018. Personally i see what they are trying to do for me this doesnt look more appeals. They are getting buzz on wall street and maritimes media people are saying look taking out preservatives, the real deal the question is how long it takes to getmoldy. 28 days, they said. I dont know i might it still doesnt inspire hunger. Not juicy and yummy looking usually you see that again, era over of the retouched faces. There we go. Up next the wall street look ahead. Vye com, cbs and drop box on deck for earnings tomorrow what Everyone Needs to be watching for in those results. Ahead. [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Lease the glb 250 suv for just 419 a month at your local mercedesbenz dealer. The unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. Looking ahead to tomorrow, drop box said to report results after the bell dee bosa standing by with that but Julia Boorstin with a preview of viacom cbs. Its the first Earnings Report as a combined company and just as important as revenue, projected at 7. 4 billion in earning processes at expected at 1. 44 a share is what the ceo says about the streaming strategy we have heard from source that is viacom cbs will combine the free pan ad supported streaming Services Like pluto with premium subscriptions such as showtime packaging them similar to what nbc is doing with the peacock service. They have to see whether it has adequate scale or more deals are coming since the stock started trading, via shares are down about 10 . Back to you. Drop box also reporting tomorrow deidre bosa with what to watch tomorrow. Drop box has to prove that it can continue to vertigo free users into paid. Has to show momentum behind the desk top app from the likes of google, microsoft and apple. Short sellers are circling spruce spoint capital says the ceo taking a spot on the facebook board of directors is a distraction and the new headquarters is a poorly timed and expensive vanity project shares underperforming the Broader Market this year and below the 2018 ipo price guys dee, thank you for that broader thoughts today, another record alltime close despite all sorts of headwinds dow missed out, about 200 points away from the record nasdaq and s p records. Look at the why for today what the articles and traders tell you, coronavirus fierce recede but when the coronavirus fierce were elevated the market went up on the idea that there is a whole lot of stimulus to wash away the economic pain, monetary and fiscal potentially from china. You have a Glass Half Full kind of market. Which weve had some time. And whether its driven by Central Banks or fundamental strength in the u. S. , or, you know, thoughts that china is getting in under control, all of that factors into what is another record day. Also point out that yields havent moved up but the dollars continue strong. Big story out of me tomorrow on that. Out of time that does it for closing bell. Fast money begins right now. Coming to you from new yorks time limits times square, this is fast money. As always, we are live at the Nasdaq Market site im Brian Sullivan welcome, glad to have you with us tonight the team of traders includes tim seymour karen finerman, dan nathan and guy adami tonight on fast. Tech stocks taking flight. And taking the nasdaq with them. Google, garmen, netflix at multiyear alltime highs opinion and