Remains solid. Joining us for the hour is stephanie link what do you think the theme is here we started the day up almost triple digits on the day then loss were down triple digits now were somewhere in the middle crazy with earnings nonstop. The theme today is the shift right back to growth from value. Thanks to paypal, thanks to microsoft, thanks to service now, and value is under performing because i think its all about 3m and what they said. Weak china, weaken you a, to no green shoots after yesterday where caterpillar gave us some hope and boeing gave us hope today took it all back some commentary from the industrials so far, honeywell last week as well, some of the commentary has been a little bit better around china so i wonder how much of this you think is 3m specific and where their end markets are focused versus the broader sector especially in electronics i do think they have high variable costs at 3m so they have some Company Specific issues. They didnt take production down quick enough yes, some of it is 3m. We felt so much better yesterday postboeing. Those stocks ended up yesterday. They are giving back a little bit today. Lots to discuss throughout the course of the next hour. Markets see the dow lower. S p higher lets focus ing stories were watching bob pisani is tracking all the movers here at the Stock ExchangeBertha Coombs is doing the same. Kayla tausche is covering comments from Vice President pence on china and nike. Lets kick things off with you a little bit focus on chinese, autos and industrials lets take a look at the movers on the dow 3m are down. Their comments exposure to china to autos, poor guidance. Big drag on the dow. Mcdonalds has been down every single day last three days down about 6 for the week 1. 5 today good couple of days in Health Care Stocks but they reversed today. Pfizer and merck is down not so the bank. Jpmorgan another new high. Bank of america another new high banks have been terrific since earnings season began. Well hear from capital one and visa tonight those are the only two banks that are up. The other big four of the big six are slightly lower yields have slipped important thing is overall you get typically these banks trading down the kb will trade down as you move into earnings season. Its been on the upside since then thats a little bit of a reversal were kicking off the two hours. You just mentioned industrials as well. We can talk with whatever you like get it in to you before you get the big tech earnings. The nasdaq outperforming throughout todays session lets get to Bertha Coombs for more this morning was led by apple but apple has slipped. Still the earnings movers today that are still going strong. Among the big gainers uniform maker cintas raised its outlook reaching an all time high. Some forefor oreilly you a the to motif paypal narrowed its guidance analysts are encouraged by the top line beat. Chip equipment makers lam research and mks instruments leading the Semiconductor Sector they reported better than expected results and lifted guidance providing a halo effect for applied materials. Meantime take a look at invisalign in china they made a big bet on the china teen market. When you look at that chart, a little bit like a ground, literally turned upside down stock up 19 for the year after being hammered for much of the year back to you. Okay appreciate the metaphor. Twitter shares down 21 after the Company Reported revenue earnings and guidance that fell short of expectations despite adding double the number of new daily active users as analysts had expected twitter attributing the short fall to a technical bug. Rbc writing twitter having nowhere near the reach of google of pinterest or pull of snap it can ill afford any ad product mistakes were seeing that today. Goldman sachs downgrading the stock to neutral and cutting its price target on the stock. Back to you. You happen to hold this in the past i have. Where do you stand now . I sold a little bit before the quarter. I bought alphabet. Im down 21 is way overdone user growth, 17 that accelerated sequentially. To me they have the users. I know they have to monetize it. Thats the big question. They will fix it eventually. Im not buying it today because its down a lot. Ill buy it back at some point was this a twitter specific own goal in strategy or is it sort of a sign of things to come that facebook hasnt encountered yet or is this twitter its a twitter thing. A bug. They didnt get it fixed or fixed fast enough. We dont know when it will get fixed. Thats why the stock is trading off so much. Its an opportunity. Nike and fresh comments from Vice President pence about the companys business in china. Kayla tausche has more in washington for us. Reporter President Trump has often criticized the Progressive Social politics of nikes athletes but today it was the Vice President , mike pence affirming the administrations avid support of demonstrators in hong kong and take nike and the nba which have been in hot water with beijing after an owner pro hong kong tweet have kowtowed to china. Nike promotes itself as a social justice champion. When it comes to hong kong, it prefers checking its social conscience at the door its siding with the Chinese Communist party and silencing free speech. The nba is acting like a wholly owned subsidiary of that regime. It was a criticism on chinas record on human rights and trade. Pennsylvania said they will fight chinas aggression which has gotten worse in the last year they dont support economic decoupling and hope to sign that phase one trade deal now on tuesday i did ask outgoing nike Ceo Mark Parker about china and the nba. Heres what he said. Were obviously standing very close to the situation, and like all of us, we hope there can be a peaceful resolution. You know, were in the midst of some very complex times, and i think its important that in this incredibly dynamic environment that we are very thoughtful and deliberate in every situation. Mark parker there earlier this week. I do think theres an interesting kind of difference here they take a position on a social issue, a couple of social issues here domestically but dont do so in china and it does raise the question why . Because chinese sales may fall if they do and u. S. Sales were supported. China is a huge market for them they dont want to upset the apple cart at this point its something that absolutely has to be monitored and pence is right in terms of being very critical the only thing i would say with the pence speech overall clearly not the outright support of china but flashback a year ago, not as harsh. It wasnt as severe as we got a year ago which was we were waking up to the scale of the trade war. Okay they mean business. This one was almost serious, but following all the tariffs weve seen like a net improvement from where weve been which was a good thing. Can you imagine if it was harsher. That would be worse. The market would tumble 200 point or 300 points. Looking not decouple. China on firm footing. This is a rising power competitor for us, strategic competitor for us on the military side was pretty notable as well. Turning to the big r big picture, big winner, tesla soaring on strong earning after the bell last night including a surprise profit for the Third Quarter. For more lets bring in jed and joe. Joe, ill start with you big mover seeing higher in tesla now. Warranted . To some extent. Look they surprised us on profitability. Ive never seen a company with black revenue come up with that kind of upside on profitability. So to some extent its merited ill say the reason we downgraded the stock which is the top line decelerating why were not buying it today. Ledge mall surprise but still some concerns out there about the rate at which they can grow this business. Joe, is that bottom line improvement sustainable or a one time leap . Well, part of whats interesting about covering this company is the extraordinary margin of volatility quarter to quarter. You look at it and say hey thats great look they are bringing this china fabrica online. I dont have a lot of conviction this is the new formal when i was debating last night to upgrade the stores thats one of the reasons i didnt, im not sure thats sustainable. Do you see this as a shift in the narrative . Is profitability going something our sustainable and here to stay yeah. You know, i think to a certain extent maybe you dont see the improvements is definitely here to stay. You know, we tend focus onless s which is how they are able to deliver a car that gets, you know, 40 , 50 greater range than other ev companies. And that is resulting in a fundamentally lower cost structure which i think is what were seeing bear some fruit today. Joe, selfdriving, automation piece of all of this and all the software that tesla is pushing out to its vehicles on the road. Is that a real the threat to the other players in selfdriving cars right now honestly, if you were to ask me how i valued the stock theres not a lot that im assigning to, you know, the selfdriving or vehicle autonomy features were a long way away from that. I will say i agree with jed. Right . They are still building the best electric vehicles out there. They are way ahead of everybody. That should stand in their favor. Dont be buying the stock because of the vehicle autonomy. Jed, does the competition ever catch up with them or do you think they are always able to innovate and stay ahead or is there a definitive time period where they have to cease their advantage and grab market share. To be seen. With that being said, having been an operator at a large fortune 500 its challenging for hundred year old Business Models to catch up. I think they do have an advantage. They have a technology advantage. You know, its going to be to be seen whether or not they can capitalize on that to the fullest extent that being said they continue to derisk the stock and thats why the stock continues to move higher jed, joe, thanks for joining us today stock moved 17 . We were talking about the big down side move on twitter. This big upside move on the tesla, is this warranted still down 10 for the year its had a tough struggle. The Free Cash Flow is very impressive they lowered their debt levels that was also a good sign. This is a stock you either believe in it or you dont its still down 10 . Too much for me. We got 46 1 2 minutes left of trade. Were down on the dourw, highern the s p. Amazon, intel, visa, and many more gearing up to report results after the bell well have some preview. Tech executives under fire as Mark Zuckerberg faces pressure from washington. Ra swisher joins us to break it all down. I love most about g a scientist at 3m is that im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. From packaging tape. To tape that can bond materials to buildings. And planes. One idea can unlock a breadth of solutions. At 3m, we are solving problems that improve lives. One idea can unlock a breadth of solutions. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Weve got just under 45 minutes, 43 minutes left to trade. Lets get over to mike for todays market dashboard cheap and dear. We talked about revival of inexpensive value stocks well see if that continues. Rust and shine Industrial Metals against gold is an interesting cyclical indicator. Fear and greed check of Investors Sentiment hit been despondent. Ebb and flow take a look at s p 500 value etf against the saul s p 500 the overall index. They are exactly just about tied right . About less than one tenth of one percent in terms of dwreer date performance. Back here you had some relatively wide spread of 2. 5 Percentage Points under value. Its showing you theres more comfort about the cyclical story, less confidence in big secular Growth Stocks. Whats the Biggest Holding in the s p 500. Its april approximately another one is japan morgan. One eighth of this value etf is those two stocks that have been hitting all thiems the question is whether those two stocks can keep clicking higher so interesting. One of those does have quite a lot of top line growth still the other has recently but doesnt represent a sector that is otherwise considered having top line growth. Also jpmorgan is also not by a long shot the cheapest of the large bank stocks. Some of it is portfolio construction how we define these categories on a pe basis its still relatively cheap where do you stand on this and does that worry you if it means we dont have a clear market leadership for more Growth Stocks at the moment . I have a value bias i hope this continues. You do have to believe that Global Growth has stabilized you have to believe that isms globally have stieblized theres some debate. Our own p and i of not so good theres still value in financials, certainly energy, pockets of industrials materials have been left for dead these are the groups that will go if we see stabilization around the world well see mike brought up jpmorgan. I have to respond. I know. I know after the break, heres another one. Morgan stanley out with a new note on the battle between uber and lyft which name they say is the better buy big day for Airline Earnings with southwest and american out already. Well speak exclusely th tivwihe ceo about the numbers as soon as tilden but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Welcome back to closing bell. Time the to get word on street bernstein initiating peloton the company is leading the destructive way towards connective market and has a market of 50 million households in the u. S Deutsche Bank downgrading ford from buy to hold. Firm says it worries about fords preparedness for an u. S. Industry downturn. Also says benefits from its 7 billion Restructuring Program could take longer to materialize than prefl expected. Shares are down 6. 5 Morgan Stanley is out with a new note on ride sharing, lifrt at equal weight firm forecasts generation z as driving lyfts rider growth higher by 11 . Morgan stanley says it prefers uber over lyft citing improving u. S. Ride share profit trends at uber nonetheless lyft shares are up 1 today steph, heres what tickles me about the bernstein note on peloton. Price tar get is 29 thats the ipo price i know. They werent on the deal thats okay. I think its a thoughtful notes. I like the sum of the part analysis the question i have can they get 40 subscription as a total percentage of revenue over the next three to five years thats a big ask, i think. If they do thats is going to explode margins and costing will be coming down youll see positive operating leverage thats the big question. Can they get to 40 . We had these buy notes. The ones on monday were on the ipo. Like you i take much bigger issue when they are buys at the ipo price. From here its a bit cheeky. Across all of these notes, the two issues i worry about, one they are very bullish what the Addressable Market is for the product and quite hard the to break that down. The proof will come in years to come the other is not address the Outstanding Music issue with the publishers it is an overhang for the stock. None have addressed that that to me they dont think its a big issue but maybe they are confident of that but dont address it at all. Thats the overhang and why he some of the parts multiples she is use using is much less. Peloton up 1 on that buy note today still well below the ipo price of 29 bucks. Coming up we got your last chance trade steph is picking one of the worst performers today why she says its a buy. Thats coming up. Onethird way through the earnings season. Well discuss what we learned so far and what the rest of earnings season has in store as we head to break heres a check on bonds u. S. Treasury ticking a bit higher ten year yield above 1. 6 . Stay with us closing bell will be right back with time, comes change thats for sure. 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Cvs stores confirming its removing 20 ounce Johnson Johnson baby powder from its stores and website store this coming after j and j initiate at recall of its baby Powder Products last week out of an abundance of caution following concerning fda tests, j and j shares dropped as much as 3 on the news but have since recovered a little bit down now about 1. 5 back to you. Thank you steph, whats your take on this . I leicht. I like the stock its very cheap. They had a good Earnings Report. They dont car