Transcripts For CNBC Closing Bell 20240713

Bullish analyst note down 26 points on the dow. Cash flow marj j. Stock up as we said 10. 3 the session was 109 at about in terms of the deliveries, what 11 00 a. M. Are you looking out for on that joining us for the first hour of the show, steve weiss from short tascha well we already have the delivery numbers hills capitals partners. So we know that those came in slightly below estimates steve, earnings so far have been they were about 97 now compared good, bad, mediocre . To say 99. Is that the key with markets same as always. But i think overall, revenue we either worry about earnings we expected it to be a bit lower or have high expectations. We find that corporate because of the model 3 managements do a pretty good job and, again, the longterm managing expectations into the margins are what we care about quarter. Thats not to say there havent so we think that, you know, been surprises both to the tesla said they could achieve a upside and down side one of the biggest surprises of the quarter is caterpillar, 25 gross margin on the cars we because the number was not good, think it could be higher at 35 evs are the longterm potential yet the stock had a nice of the auto Market Recovery after that. The auto market sales are down for whatever reason, i dont but electric vehicles are picking up know boeings numbers, i own boeing and tesla is the leader in that market. 15 decline quarter over clearly, the story was not what quarter in operating expenses. The number was going to be i mean, any sense of whether it was the information going to that was, you know, he will well get about the relaunch and that was positive more exaggerated thaen you stocks retreated somewhat. It was crazy, up 3 , 4 earlier. Expect is that something you would look for. Thats certainly going to be a surprise for investors, yeah now its flatlined i think it should be up a little and i think, you know, it fwoes bit, given what we heard last week in the downgrades. To say that tesla is really focused on the numbers chatter out there that part of the reason you see i think that one thing that id the recovery in cat today, signs like to hear about on the call of stabilization in machinery thats not talked about enough sales. You dont buy it is the amuse driving business. I dont buy it. Ive known the sto owned the i dont think any investors are taking that into account it could add tusa stock price. Stock for a long time. Phil lebeau is back with us and diving through the numbers. Others asked me if i would buy cat and i have other places well which will of theyre crunching the numbers back in where my money could wither and the newsroom you see the spike because the die. Its energy centric. Adjusted eps a 1. 86 a share there are other industrials, rather than guessing if this is the bottom or if numbers get a number of analysts said they worse. This Management Team is better than the old Management Team but they still have to play with expected a loss of 42 cents a the hand theyre dealt share. Its just not a deck i want to some of the folks crunching the numbers are reconciling the big get involved in. All right were all over todays big, difference between the 1. 86 breaking news. While many expected a also Facebook Ceo Mark Zuckerberg testifying before the house revenue as you mentioned did come in a tad under expectations Financial Services committee at 6. 30 billion ylan mui has the highlights so far. Former facebook chief privacy the gap automotive margin 22. 8 . Officer is also with us to weigh in and bob pisani is at the and a couple of notes regarding production, trial production in china from the plant in exchange for a look at all of shanghai, that has been has todays market action. Ylan is on capitol hill. Begun. Remember they expect that to ramp up heading into the end of ylan reporter morgan, zuckerberg the year and have some deliveries in china. And also the model y is ahead of has been taking hits during this hearing from lawmakers he is still defending his schedule they are expecting production to decision to move forward with begin by the summer of next libre. He said if the u. S. Doesnt act, year guys, back to you. China will. Phil, thanks very much for i just think that we cant that tascha thanks for joining us as sit here and assume that because well and rolling with the late release of tesla numbers up america is today the leader that it will always get to be the sharply in after hours as we leader if we dont innovate. Mentioned. And innovation means doing new mike, final thoughts finish the session eyes slight things and that does mean new things gains in light of poor earnings. The it firmed up. Have risks. Basically the market is zpising reporter zuckerberg did tell the misses and assume it might have been the trough quarter for lawmakers he wouldnt launch Earnings Growth. Libre anywhere in the world we are out of time on unless he gets approval of u. S. Closing bell thanks for regulators and if he doesnt get the approval, he would be watching. Fast money begins right willing to leave the libre now. Life from the Nasdaq Market site over looking new york citys times square. Association. N now, the questions during this hearing did range far beyond this is f2 fast money. Libre. They included hate speech, traders are pete narjen stim extremism, sex trafficking seymour and guy adam a mark one of the most tense exchanges actually came when zuckerberg tepper president of strategic welt partners. Was grilled about civil rights we are still waiting on several earningspalooza. E ebay pay paul onthe move key lawmakers to take their after results. Ment of the Conference Calls under way beginning with the turn, including aoc and presley. Highlights and the big mover, tesla just well keep watching and give you reporting results. The big mover. The latest. The stock ripping higher zpoit a ylan, thank you for that. Im sure welln miss we have full Team Coverage in the show. Gene munster is live in lets bring in chris kelly thanks for joining us. Thanks for having me. Youve been keeping an eye on minneapolis. But phil le poe has been digging in the numbers and continues to. The proceedings today. We go straight to him how do you think mr. Zuckerberg is doing so far . Hes moving along theres been a wideranging set of questions he has been able to keep most of the focus on libre there have been other areas touched. Most of the critiques being offered before are being offered again today. That should have been something he should have expected and it looks like he did. Libre where Tech Innovation is concerned or is that too simple theres a very real competition going on with chinese systems that theyre trying to take across the globe at this point. And American Innovation has to be operational here. And, you know, libre is a big swing. And its a big attempt to change things that havent really been changed in the last 50 years about payments infrastructure. Mark is doing a very good job, as david marcus did beforehand, about setting out the various, you know, concerns that particularly Central Banks can and should have about this, but ways that they can be mitigated by the operation of the libre association and calibria making decisions on its own. The sound bite we heard from mr. Zuckerberg, if the u. S. Doesnt act, china will. Thats accurate. I get that. China has thats one of the things we have to talk about. Sure. Sure but if facebook doesnt act, it doesnt mean that the u. S. Doesnt act at all there are lots of other players that could well act and fill that space, who have earned the trust when it comes to such an important thing as payments infrastructure and maybe face better regulation, more than facebook has is that fair to say . I think on a regulatory side, obviously, the company has chosen now to be in a very engaged posture, which is quite important. Its one of the things we try to do on safety early on, when i was there. But, you know, that outreach is critical obviously, there have been some missteps in the meantime theyre running the company very differentlynow in trying to make sure that this is very consultative launching without approval is how theyre trying to move this forward. Now, obviously, the innovation that the company has driven is something they very much want to continue thats why taking this big step is part of the plan from here. But trying to do it in a way that makes sure that legitimate concerns, especially of sovereign nations, are brought to bear is a critical part of doing this in the right way. Now, right now, we have a Public Private infrastructure around payments, visa, mastercard, paypal and the Major Players are taking cuts every step along the way. In a lot of ways facebook stepping into it is just bringing another competitor to the table. Thats something that generally should be encouraged. So, to dig into that a little bit more, chris, it seems one hand you have facebook facing this credibility issue, right . That was evidenced today in terms of the wideranging types of questions and topics that were being asked on the hill by lawmakers. On the other hand, one of the key things that gives the government power is its control over its currency. If you see Widespread Adoption of a crypto currency like, for example, maybe libra, that could call that into question. If it wasnt facebook and i realize theyre doing this with an association, with other companies as well, but if it wasnt facebook that was essentially spearheading it, do you think it would be gaining as much scrutiny as it currently is i actually think it would the threat there, perceived threat is that somehow theres a replacement. But i think mark was very good this morning, explaining that this is extending the reach of the dollar, given that thats the major part of the basket of currencies that they want to make it stable. I want to step away, chris, from libra if i may. At the vanity fair event, Sheryl Sandberg said the newsfeed on facebook actually enhances peoples access to a broader range of views, as opposed to inhibits it. Do you agree with that statement . It depends. Because every individual newsfeed is so individualized over time, from one person to another, thats hard to say. On balance they have a lot of research that shows that there are people who have different identification among their friends and see different, you know, political posts in their newsfeed so, you know, the key is what were moving from is a sort of world where not everything was sort of captured in terms of actions and shares, and now it is and the algorithms trying to work this out, trying to present it to people in a current fashion. For a while, you might end up with things where people have said that theres a filter level that youre getting yourself caught in. Youre only reinforcing information. But quite a number of people say im worried about that, so im going to make sure im following things that are a little bit different and im going to adjust my feed that way. Its th is all part of a longterm Media Literacy in a new era that its retraining for a lot of people. I watch my kids, using online sites and playing games, limiting screen time, too, theyre getting used to a world where a lot of stuff is presented to them by algorithms. They have to know whats behind them thats a very open discussion thats being had and that facebook and a number of other researchers are trying to bring good, solid techniques to bear about is this actually enhancing wellbeing facebook, in the past, has been a bit dismissive of that, certainly has been accused of being dismissive of that theyre fully engaged. I think thats a good thing for the company and a good thing for the world. As a former general counsel, privacy officer at facebook, if we simplify, admitting i am simplifying the threats to facebook into three buckets, one being antitrust in its overall size of the market, one being user privacy and the other being accuracy of the information that people are posting and whether its a publisher or not, which of those do you think facebook has to be most worried about, that they could see successful legislation or regulation against them obviously theres a lot of heat around the antitrust issue right now. One of the things as a former antitrust lawyer and trained antitrust attorney and someone who has gone on the offensive with antitrust actions with netscape representing microsoft, when they have monopoly power its not clear that facebook has monopoly power in a relevant market its not clear that social media is in a relevant market. Its about communications and things that are broader. Coming into a market where they dont have a presence like payments is an indication of a desire to compete instead of to leverage a monopoly in the area. I dont think that a lot of the antitrust language has been around oh, theyre just too big and too powerful at the end of the day when you have to put that argument before a court, it doesnt go so well, when you have to adhere to existing antitrust law. Could a variety of players try to seek different rules under new antitrust laws and propose that as Elizabeth Warren has proposed, to have a platform rule sure thats a risk to the company and a possible direction that people could go but if this were brought as an antitrust case by the state ags or the doj, for instance, theyve got to show that theres a monopoly that operates and theres been anticompetitive conduct. Its hard to say that either of those are present at this point. Chris kelly, thanks for joining us today. Thank you so much. Important day to get your take, especially as a former facebook insider appreciate it. Turning now to the broader markets. Bit of a mixed bag for big name earnings today bob pisani is here. Caterpillar post is trading up, despite its significant earnings miss. Thats pretty big. Reduced dealer inventory due to uncertainty on the global economy, end user demand being flat stock is trading up. Same with boeing huge miss, 30 executives there maintaining theyre sticking to their expectation that the 737 max would receive certification this year good news for both of these Companies Holding up under what looks like fairly bad news remember, we have a couple of highprofile misses this year, fedex in the early season, mcdonalds missing as well a lot of people wondering if this is the start of a trend i think these are a bit of an outlier situation. Maybe not caterpillar but the other ones 13 of companies have missed expectation. Thats historical average. Were not seeing anything unusual, except these are wellknown names if fedex, boeing, mcdonalds were really part of a global slowdown, you would see many more companies missing expectations and Earnings Guidance much worse than weve been getting thus far. Im not terribly worried, at least not yet. Weve only got a quarter of the companies reporting. Theres always room for more, additional information. Bob pisani, thank you as always. A massive afternoon of earnings tesla, microsoft, ford, paypal many more. All of that coming off the close, which is just 45 minutes away were back in a couple of minutes. Is the monolithic view of emerging markets obsolete . At pgim, we see alpha in the trends driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. S. Welcome back. Lets get out to mike for todays market dashboard. Fogging a mirror, spotlighting an area of the market thats been left for dead well see what that means. Seek a second wind overall market has been a little fatigued one graphical expectation of that, what that might mean and downwind of danger, a lot of investors are short crude oil. Maybe thats hazardous right now. Great sucking sound, another take on the massive run of outflows from equity funds first, take a look at the biogen, along with three other drug stocks. One of these is another bio tech company. But generic drug makers have had a similar trajectory, policy concerns, really worried about what the pricing trend is going to be. Biogen, thats that pop yesterday, which has held up today on the fact that theyre actually going to seek approval for this hotly anticipated alzheimers drug here is when they decided to pull it. Its not quite recovered back to the levels from where they actually pulled back on that effort take a look at the valuations in this group if you did a screen for the cheapest stock notice s p 500, these stocks are all over it you see in the midsingle digits for the generics and a little higher, highsingle digits for biogen the question is, is this kind of the market getting it wrong . That, in fact, there will be no Pricing Power and these groups are permanently challenged or, in fact, has the market figured out this is not a place to look for growth b biogen trying to buck that theme. Seems a little morbid, your theme, death. You may be overthinking it. Well talk about it later. Thank you biogen or some of the other pharmaceuticals . Sign on the xpi definitive track how its going to run epilepsy drug. Generics are done not just by Generic Company but big names as well generic makers have their margins. Have you bipartisan support not that well see legislation of any sort in this administration or even the next. Weve got bipartisan support why not why dont you think so take a look at zuckerberg hearings, huge question mark do you think those people can get anything done, anywhere . Its doubtful. Im staying away from it there are other places to find value in the market. I bought fedex, one bob talked about, when it got crushed thats where i would rather go real fundamentals that dont have regulatory overhangs. Thats where i prefer to be. Got t 40 minutes before the close. Dow is back down on session lows 32 points right now. After the break, analysts are weighing in as stocks take a leg lower despite upbeat Third Quarter results. Well get the word on the street on that name. Steeking of earnings after the break, Hawaiian Airlines about his companys numbers and how boeings troubles are impacting the Airline Industry back in a couple of minutes. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to the closing bell. It is time now to get the word on the street. U. P. S. On coca cola, citing price increases in the u. S. , global refranchising and new innovative products, that stock is up 1 . Morgan stanley raising its price on apple to 2. 87. They expect them to boost growth to 20 in 2020 bernstein also raising price target to 2. 25 from 2. 05. Jp morgan updating snap to overweight from neutral. Increasingly compelling after more than 20 pullback from recent highs and encouraging trends in q3 earnings. Stock low today on weak q4 guidance lets start with snap. Engagement was pretty good even if the guidance was soft. Yeah. The death of snap has been exaggerated. So many people are saying this is going away and it hasnt. Kudos to them. Its not been acting well. It closed yesterday on the lows. Its down again today, unless its recovered that will be interesting ive been on the site, just looking at what the advertising is, because thats where theyre making the money its not been impressive im a little worried about it. Some of the others, like apple, a stock that had no expectations, right, that had basically, you know, all upside. Now its risen so high as analysts trip over themselves to raise the price higher on the street i own that also. Im not going to sell. Its one of my 5g plays. I think theyll do well. Its not one i would buy into the quarter. The Morgan Stanley note, a, bull case is 4. 07 price target, significantly higher than her bear case is, lower than the base case. But the other point is almost all the apple notes weve talked of the last two or three months have been upgrades based on the iphone not being as bad as feared this one is bringing it back to services and putting it on that longterm growth target, particularly looking at how the new tv offering will be accounted for and Services Growth without being such a big weight on costs as it is for netflix, for example, to crow ate content. I ran Global Research department, 500 people around the world. If they came to me and said i want to raise my price target on apple because iphone wont be as good, as bad as people think, i would say thats been done find another reason. It would be services katie had lowered her price target, maybe it was a year. You need a reason to raise it. I personally dont think thats going to be the reason for the stock moving its going to be 5g and the next upgrade cycle. Im a little speechless. Shes a great analyst. Always been bullish on the stock. Thats the way to be its not a criticism but coming in this late you have to ask, okay, do you just want to raise your target because its getting within your target and you dont want to downgrade . Find a good reason. All right shares of apple meantime was that too cynical . No, i love it. Its interesting because a lot of times you see analysts get more bearish before earnings come out its been the opposite this time around. Can i go to coke for a second give me a break. Come on. Were going to get to that. Stocks always pull back. Turning now to Hawaiian Airlines, shares down 6 , despite a beat on earnings, revenue came in just short of expectance are you surprised to see the stock down this much on your numbers, especially given the fact that Current Quarter outlook was increased . Well, its always a little hard for us to predict the daytoday movements in our stock. It tends to be a little volatile sometimes. Weve been up a fair bit over the last few weeks, heading into earnings and so im never really a good predictor of our stock price in the short term ive got a lot of confidence about our ability to move the numbers up in the long term. Peter, theres so much extra capacity coming online this year and next year to hawaii, whether thats coming at you from east or to west do you think all of that will still be in place say come 2023 . Weve seen a lot of capacity come in over the last two years. If you look at capacity from north america to hawaii, which is the biggest part of our network, it accounts for about half of our revenue, weve seen capacity in 2019 will be up almost 17 above where it was just a few years ago in 2017 and were still producing, you know, year to date we have a pretax margin of 11. 1 , 14. 6 in the Third Quarter. So, i think were really demonstrating that were resilient and that our focus on coming to, from within hawaii is a proven formula to allow us to be successful in any market. To dig into the thesis a little more, given the fact that some of these hawaiian routes have become more competitive, your airline has not been impacted you dont have the 737 max planes from boeing in your fleet. Some of your competitors do. Have you been able to benefit from that return to Service Delay that were seeing play out for the boeing aircraft . Yeah, its hard to say how much of an impact its had you know, there are a couple of competitors, as you say, that were flying the max initially into hawaii. They largely backfilled that capacity southwest is obviously one of the carriers thats most affected by the grounding of the max. But the airplane that they launched, their Hawaii Service earlier this year with is a 737 800. Whether they would have grown a little more this year if they had more aircraft overall available is something that i cant really tell, because we dont know what they would have done otherwise but we are seeing a lot of competition. We may see some more next year and were very well prepared to compete with that. So i dont think the max has been a big impact on flying to hawaii. Peter, well have to leave it there. Thank you so much for joining us. All right thank you very much. Appreciate it. Pete ingraham of hawaii we have breaking news on target. Lets get right to Courtney Reagan hey, court. Hi, wilf. Ceo going over a variety of things saying look, 2018 was the strongest year target had in a decade the momentum has continued into 2019 while the Third Quarter isnt over yet he expects to see traffic grow, comp sales growth, market share and Earnings Growth expansion for that quarter he continues to see a very healthy u. S. Consumer. He pointed to a number of Macro Economic reasons why he never felt better going into a Holiday Season a Holiday Season which, by the way, is going to be six days shorter. Target is going to be spending 50 million more in employee payroll this year over last year, increasing the number of employees serving guests in the stores and in those different fulfillment services, offering Free Shipping again with no minimum purchase starting november 1st and says its new Loyalty Program, which it started october 6th, has already signed up 25 million shoppers and in the Pilot Program shoppers in the Loyalty Program did end up spending about 2 to 5 more. Back over to you guys. I dont think our viewers know quite how perfect a reporter you are for this story. They dont know how much you love not just the holidays, but holiday decorations. Even though its only the 23rd of october. I know, right you must be delighted to be as the color of her dress points out. Exactly. Im already we were already singing Christmas Carols here we are ready for you and i know your previous guests was from Hawaiian Airlines so mel ka leeak. Im just trying to get through halloween here, but i appreciate it. Here are the three things driving the action lets look at whats driving the action disappointing earnings soaking Global Growth concerns caterpillar and boeing Holding Steady in the face of soft numbers while apple is up a percent on the back of bullish analyst sentiment. It is time now for cnbc news update with sue herera sue . Here is whats happening at this hour, everyone. Russian military police have begun patrols on part of the syrian border. The kremlin has warn ed syrian fighters to pull back. Kurdish forces were given a deadline to pull back from border areas they have not already left rude dy giulianis associat were both arraigned in federal court in new york and both were released on Million Dollar bond. Many false things have been said about me and my family in the press recently i look forward to defending myself vigorously in court and im sure in time the truth will be revealed and i will be vindicated. A group of House Republicans stormed a secure room where testimony is being heard in the impeachment inquiry, delaying the start of a closed door testimony by laura cooper. She is the top pentagon official overseeing policy in ukraine they were protesting the democrats handling of the probe, arguing that the process was not fair to republicans or the president. You are uptodate thats the news update i will send it back downtown to you. Thank you, sue. See you next hour. Still ahead, steve has his pick 27 minutes left of the session. Quick check on bonds tenyear yield still below 1. 8 . Well be right back. Staffing a Small Business is challenging. Filmgate is growing really quickly and. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow second installment of the dashboard. Hi, mike. Hi, wilf. Seeking a second wind right now, hovering in the zone little below the alltime highs for a week and a half, narrow 1. 5 range. Look at this graphical representation of the s p 500 relative to its 50day average its made to tell you whether the market is overbought, oversold the market has really failed in the last two rallies to get and stay overbought. Theres not been a lot of thrust behind these rallies you may say thats great because its not vulnerable to the upside or pullback strong rallies from earlier this year tend to get overbought and stay that way for a little while. Thats why a lot of people are wondering whether the market is showing resilience or more fatigue. Were not really going to be able to tell this unless in retrospect it shows you, weve not really had, at least on the index level, impetus at the higher levels because you have such a rotation in the market, that its not really moving the oefall s p forward at a very rapid clip just yet, guys. Its fascinating how tight that range is in the last few months thank you. I think were in trading range. Maybe we go up a little bit, upper end. Looking at the chart seeing lower highs is never good from a chart standpoint i dont spend a lot of time looking at technicals but you need a real catalyst, and that has to be china, to get you above the trading range. 21 minutes before the bell here is where we stand all the major averages are hanging on to gains, albeit fractionally dow is back in the green, 22 points and s p back at 3000. Nasdaq and russell 2000 ever so slightly higher. Up next, your last chance trade. Plus earnings from tesla, microsoft, ford and more well break down the numbers, coming up. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Takin it off road station ted goiwagon, eh . Ip, huh . You know its an suv your family is duckin and rollin. While we stowin and goin but thats cool, i know for a fact your suv does not suck. And why is that . It aint got that vacuum in the back, whoo sucking stuff up what else are we gonna find . We got to go. Vacuum in the back, hallelujah get 0 financing for 60 months plus 2,250 total bonus cash on the 2019 chrysler pacifica. 18 points higher on the dow. Steve, what have you got boeing. I dont know if the next event, headline just hit. You can walk to any business and it will tell you that it has some pressure. If you look out a year, i dont think anybody will disagree with this, boeing will be higher than it is now. Probably meaningfully, assuming the market stays in a constant state. Buy it now the next event may be europe coming out and saying were going to approve it for the relaunch as well, the max. So, you get rare opportunities to buy companies on sale you have to be able to withstand the volatility its not risk. Its opportunity thats when you make the most money. I bought some too soon i bought some more yesterday but it was expected. Two things on this. The first, as a shareholder in boeing already, were you surprised they didnt extend out the deadline or forecast i should say yeah. And i think thats why was i surprised . Yes, that surprised me i did not expect that. Now, hopefully, to live up to it and im betting on im always concept cal of announcements this one has such focus on it, you have to believe they know what theyre saying. Anything could happen, of course, in the interim but i believe right now that boeing believes it will relaunch. My second question for you, they have a sizeable defense business and it would seem like its something that mullenberg talked about. That its two businesses that are continuing to grow and essentially keep the broader portfolio afloat right now are you watching that closely . I am. You look at the companies that report, lockheed martin, those are annuity businesses the next flash point is mullenbergs testimony in front of Congress Last week. As our saying off air thats the best way for a company to get their stock up go in front of congress. They look who is on one side who is on the other side they say, wow, were going with the ceo. Facebook, today there was a lot of concern about facebook being bashed and they were, but zuckerberg, i think, did a phenomenal job i expect mullenberg to be assaulted even more so but do a great job and i think the stock will trade higher after. One more caveat, all people get pressure in their jobs, the line is crossed when lives are lost. I agree thats a huge issue. I think it was preventible i think the faa shares a lot of blame. The other regulators in other countries and i said this why have they not taken it out of service that was a major statement i think personally they should move on from mullenberg. The culture is not what i would like to see. Maybe that happens next. Yeah. Of course, there are criminal and civil investigations afoot as well. Up next, well take you inside the market zone well preview what to expect from tesla and microsoft earnings and so many more when closing bell returns 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. Weve got 11 minutes left in the trading day. We are now in the closing bell market zone, commercialfree coverage of all the action as we go into the close. Cnbc market commentator mike santoli is along and steve weiss is here as well. Lets start with the big story of the day Facebook Ceo Mark Zuckerberg testifying on capitol hill ylan mui has the latest. Ylan reporter that hearing turned a little testy when Ayanna Presley questioned Mark Zuck Zuckerberg about his behind your childrens inheritance in libra . Congresswoman do you believe in what youre building yes, i do. I think its a fair question. Because youve proven that we cannot trust you with our emails, with our phone numbers. Reporter and that, again, was congressmanwoman Ayanna Presley. The question of a breakdown in trust came up multiple times in the hearing, not just a breakdown in the platform and its users but obviously between congress and the company as well for the record, guys, zuckerberg did eventually say that he would leave his childrens inheritance in libra because its backed onetoone by sovereign currencies back to you. Ylan, thanks for that i guess theres a bit of room for inheritance to fall anyway and they would still be all right. Mike and its convertible into all the existing currencies. Yeah, why not exactly. Im changing my name to libra, actually. Mike, in terms of this stock and what sort of level Political Risk is priced in at the moment, more focus on the ag than libra. Big picture, structure of the company and what the ags might be able to put forward in court. The stock, its interesting. Its trading at a level it first got to in january 2018 its been stuck between these regulatory and antitrust concerns and the fact that business is performing pretty well and, actually, the valuation has been compressed a bit. I dont think its any different than alphabet. The others are stuck its just big tech, throw amazon in that, hasnt been able to move and get out of its own way. Look, i think you look at facebook Going Forward, that there will be these regulatory issues, however it turns out is really not the question. It will take forever for it to turn out you just want to say, do i want to own it for the quarters and hope they outperform in the quarters thats where you would do well. S p now twotenths of one percent. Eight minutes left boeing reported a miss on earnings this morning. Phil lebeau has a breakdown for us hey, phil. A miss by a wide margin some tesla excuse me, some boeing bulls have for this stock. It was up substantially earlier in the day its pulled back a little bit, still trading positively yes, they missed by a wide margin its all about the 737 max and the guidance it remains unchanged from the company. They plan on it being back in service, or at least deemed safe to fly by the faa or other regulators by the end of the year by the way, the max costs up 900 million in the Third Quarter. Its now totaling more than 3. 7 billion. I mentioned tesla. Thats because tesla is on my mind earnings are coming out after the bell chien ra production, is it starting up or is it close to starting up . Auto gross margins, are they growing as many expect its what happens during the Conference Call with ceo ilan musk those numbers come out shortly after the close of trading today. Guys, back to you. Phil, seeing more of you in the next hour for sure phil lebeau. Mike, boeing, the fact its at 1 right now has such a big impact on the broader dow. Is it a situation where it wasnt as bad as feared . Thats for sure not as bad as feared and the market is trying to make a Fair Assessment of whether the companys guidance is roughly correct about whether theyre going to get approval again. Clearly, 2019 is a loss for earnings this stock when it got up to those highs earlier this year, it was about a clarity of vision of many, many years of Free Cash Flow youve got one year set aside. The market still wants to believe in the very long future in terms of the next decade or more of that backlog well see if that pans out. Texas instruments dragging the chip segment lower today lets get to josh lipton josh morgan, thats right. Texas instruments reporting and disappointing. Chip maker getting crushed in todays trade, weighing on the semis more broadly as well you can look at the smh, etf that tracks the chips lower. Those still up very strong for the year our own jim cramer as the business has weighed so heavily to industrials sure, he says, you may sell exp on this news but not amd, to his point. Q1 eps of 1. 25 on revenue of 32. 2 billion, representing jumps of 9 and 11 back to you. Josh, thanks so much for that mike, whats the setup for microsoft as we come into these numbers . The stock has flattened out the last few months. Its still widely loved by the street estimates for the quarter have come up in the past three months, unusual for a big company. The bar is relatively high, people believing its almost an automatic earnings story for microsoft. Steve, where do you stand on this one i own the stock look, im concerned because there may be a slight miss its not going to be big, frankly. If it got hit i would buy some more 140, it cant get past there its not cheap but a lot of stocks arent cheap. High quality doing a phenomenal job im sticking with it. Those numbers after the close. Well bring them to you as soon as they hit. Und under five minutes left to trade. Biogen, taking a breather after posting huge gains yesterday meg tirrell spoke to the companys ceo. Meg . Once the dust settled, that biogens alzheimers drug is back the response has been puzzled. Consensus on wall street is that its still not clear just how well the drug actually works we spoke with biogens michel vounastsos this morning. The evidence came over time as a ceo im reasonably confident. Really . This can lead to market approval. Some analysts say the chance this drug does get approved means its hard not to own biogen stock back over to you. Meg tirrell, thank you. Chipotle posting earnings. Morgan, really Strong Quarter for chipotle beats, sales at 11 . Big part of the chipotle story has been digital growth, up 88 in the quarter, representing 18 of sales ceo brian nickel joined us on cnbc and said the brand is really just Getting Started when it comes to growing that part of the business take a listen. We heard early on that our consumers and our customers wanted more access to this business, to our food and the way they wanted that access was through Digital Access so weve done that i believe theres still a lot of room for growth in this space. Now the company will continue to leverage digital with its Loyalty Program, which has added 7 million members in over six months as well as its chipotleans for digital orders it could be pushed into 2020, putting your lanes, you put in your digital order and pick it up, those stores take a little longer to actually get built the construction time is longer. Some of their store openings could be delayed somewhat. Back over to you guys. Kate, quickly, miss from dominos, miss from mcdonalds and not from chipotle but stock is trading lower right now, what does that tell us about the consumer i think the consumer is still really strong. With dominos and mcdonalds, really Competitive Pressures from other players in this space, arguably, you could say chipotle could be taking business from those brands mcdonalds seeing it from chickfila, popeyes and more two Different Things are happening today. We heard from nickel and they think its really, really strong with an 11 comp, through the lens of chipotle, looks like hes right. Near the session highs for the s p at least, which is up about 0. 3 lets get to mike on the market internals today. Mike been positive all day, even when the market was flat to down 1. 8, 1. 7 to 1 is the range right there. S p value against s p growth this is over the last week or so youll see this spread value outperforming, roughly flat today. Pretty much the consistent theme for some time, even in the overall mark has been kind of sideways. 90 seconds left to go Bertha Coombs at the nasdaq. The stock is up, alexion, helping bio tech get out of correction apple setting yet another new record high. Its interesting when you look at it on a 12month basis, apple versus facebook and the fangs, fangs peaked in july apple is surging now and beyond meat, which will be reporting earnings next week is the other big volume mover, down on twice the daily volume now, below 99 over to seema. Bob. Sorry. Hi, bertha. Near the closing highs for the day. Weve had interesting Earnings Reports today and some of them were better than feared overall, not just caterpillar hilton, for example, had a decent number even though their revenue per available room guidance was a bit low expectation. Good enough there. The bond trading business is doing very well. Market access reported better than expected earnings in revenues nice little pop today. Not all good news. Lower merger, wellknown Investment Banking adviser there is the closing bell. Dow industrial average higher today. S p 5 h00 at the highs of the dy welcome to the closing bell. Im wilfred frost. And im Morgan Brennan in for sara eisen along with mike santoli. Market action on the right side of your screen the story is coming up on the tabs at the bottom of your screen. Lets check in at how the markets closed high for all the four major indices, not the case at the start of the show. Dow up. 2, as was the nasdaq and russell, holding on. 1 gains. Energy with Consumer Discretionary at the bottom. Big earnings from tesla, microsoft, ford, Las Vegas Sands, paypal and ebay well break down the results with an allstar panel coming up. Joining us to talk about the market day, steven weiss, as well as joe tanius, from Bessemer Trust mike in terms of the general market performance, there was some negative earnings but the market shrugged it off, which is encouraging. It kind of absorbed the negatives and not really take them as an excuse to back off. The market tends to be pretty firm in this range, the majority of stocks. Even the semi conductors group, important leadership area. They only selectively got hit on the Texas Instruments news and caterpillar and boeing at this point, you have to say net positive the market refuses to buckle it is sort of acting a little bit tired, whether that will manifest itself in sitting around for a while or managing to get another second wind is not known yet. Steve, we got some pretty conscious commentary, especially from a number of Industrial Companies that have reported earnings in the last 12 to 24 hours, Texas Instruments i realize theyre a semi conductor, will its caterpillar, ww grange, just to name a couple. Does that concern you . No, it doesnt. You saw trouble with the earlier we saw you didnt mention u. P. S it was not a great quarter yesterday fedex was up today market goes up 85 of the time were still early in earnings season and critical companies have done well, and thats really set the tone Going Forward. Joe, whats your take on the quality of earnings season so far . Well, i think its certainly better than feared if you think about how expectations have been incredibly low heading into this earnings season, thats not necessarily saying much. Overall, we are seeing positive Revenue Growth, which is encouraging, in light of the slowing Global Economic data weve seen when that translates into earnings per share even after you get the benefit from share buybacks, the Earnings Data itself isnt all that inspiring. Were not looking for much Earnings Growth coming from this earnings season in the quarter ahead. Joe, just to dig into that a little bit further then, when you look out to 2020, are the expectations still too high . I think they are. And i do think that is a big risk if you look at bottom of consensus estimates for 2020, theyre Still Holding in at around 178 per share for the s p 500. We havent really seen that number come down when you consider again the slowing pace of Global Economic growth, its really difficult to imagine that that number is going to stay that high. Of course, as those estimates start to kind of feed through and you see that consensus number come down, now all of a sudden you start to have more people and more critics talk about marks potentially getting too expensive. Stephen, overall your Risk Appetite at the moment youve been trimming your holdings ive been trimming. I agree with everything that was said there i think theres complacency about what can go wrong, including impeachment. Its not like the last two impeachments you have gridlock there, a burgeoning budget deficit. Who know what is china will do they may say this doesnt look good for trump lets wait a number of risks there. I dont see europe having weve seen yields back up and the market is taking that as an indication that the economy is Getting Better globally. Im not sure thats the case. First big Earnings Report out of the afternoon its microsoft josh lipton has it for us. Wilf, eps of 1. 38, expectations of 1. 25. Revenue up to 33. 1 billion analysts had been expecting 32. 2 billion. Just looking quickly through the segments here, revenue and productivity and business processes, that clocks in at 11. 1 billion. Office 365 commercial Revenue Growth, they say within that 25 . Revenue and intelligent cloud, that is 10. 8 billion, up 27 within that division, microsoft is saying azure Revenue Growth 59 . And finally revenue in more personal computing, 11. 1 billion, Conference Call kicks off at 5 30 eastern. Thats when you expect cfo amy hood to deliver guidance well be on that call. Gakback to you. Josh, thanks so much for that mi mike, beats on both lines, cloud not a huge part of that beat just fractionally ahead. It was across the line. You had about 900 million upside revenue versus the estimates and it was pretty well distributed. I think you see the reaction as being, you know, a good quarter was certainly where people were positioned and you see it kind of knocking around flatline after hours. Azure growth, 59 increase as well another earnings alert to get to, and phil lebeau has that its on ford. Company beating in the Third Quarter, 34 cents a share versus estimate of 26 cents a share 33. 93 billion, automotive revenue. Free cash flow of 207 million as they continue to do better when it comes to Free Cash Flow. Thats an improvement there. But in terms of the companys guidance thats going to get a fair amount of attention specifically when you look at that guidance, they brought down their fullyear guidance it was between 120 and 132 a share for the full year or 135 now theyre bringing it down to 132. Consensus is 126 full year earnings, they were previously saying we expect to make between 7 and 7. 5 million. Now theyre saying they expect to make between 6. 5 and 7 million. North america is where theyre making all of their money. The headwinds theyre facing in addition to this turn around, higher warranty costs, higher than expected incentives in north america and lower sales in china. Back to you. Phil lebeau, thank you. Ford has been a company struggling with its own specific company woes, including expanding and moving in china. I wonder if you see these numbers as the readthrough to the broader industry right now. I think a lot of headwinds, gm is arguably a betterrun company. They have the sameyou have roug. Bang, there goes more than half. Theres other places i would rather put my dough. Stephen to your point on microsoft, its hard to get above that level its trading along the flat line. I dont know what anybody is trading on here. Its all about the guidance. Stock should be up marginally. It was a good beat the bar is so high for a beat, though yeah. Youve got to really beat. You have to take a sledge hammer and invest over the head with it. Azure growing 59 , that represents a slightly slower rate of growth than in previous quarter. Who cares, its one quarter theyve got this business. Who cares . Its true although i have to say literally 94 of analysts are saying buy this thing i think the story is so well believed. Thats my biggest concern who is the marginal buyer . Who is coming in here and taking the next leg another Earnings Report out Las Vegas Sands. Contessa has it for us hi, there, contessa. Hi, wilf. Little light here. Revenues expectations were 2. 29 billion. They came in 3. 25 billion. Meeting expectations at 75 cents on share macaw and the softness theyre experiencing there with the questions over trade as an overhang as well as a slowing chinese economy. In this case, were looking at adjusted numbers coming in, analysts were expecting 777 million and instead came in at 755 adjusted, same story with revenues its really what happens in macaw thats driving the future. Earnings call starts in about 20 minutes. The big question is, will we hear from the ceo and chairman shelden adleson . Sources from las vegas say he has recovered somewhat they are expecting him to take the helm weve not heard that in several quarters, guys. Contessa brewer, thank you. Joe, whether its Las Vegas Sands or some of the other names that have reported earnings so far we know growth is slowing in chien wra right now we know there are impacts from all of these trade tensions between that country and the u. S. How much of that, do you think is already priced into some of these names coming into their reports . I think its certainly having an impact on earnings estimates, right . The reality is at the end of every single quarter, its almost like the same movie whoo he see every single time, roughly between 70 and 76 of Companies Beating earnings slowdown in Economic Growth as trade tension, which has been brewing between the u. S. And china is, without a doubt, having impact on these earnings estimates. Its encouraging and comforting to see the same level of beats again i tend to focus on the underlying Earnings Growth in yearoveryear terms, Revenue Growth what does that say about the prospects of future growth, which ultimately is required in order to drive markets even higher joe, thanks for joining us today. Great to see you. Thank you. Our thanks, also, to stephen weiss. Good to have you with us up next, an allstar panel to weigh in on microsoft Earnings Results as we are still waiting on numbers from tesla due any minute now were back in 90 seconds microsoft posting a beat on the top and bottom lines buy rating on the stock and ed lee from the new york times, from our desk at the stocks desk upstairs ill start with with you, dan. Take on the numbers . Really strong earnings. I look at azure growth and cloud, it shows theres some share gains here nervousness overall in cloud Workday Service now. I view this as a feather in the cap for the bulls. Knee jerk stocks down a bit. Ultimately this is what the bulls need to drive the stocks higher. Look at the cloud numbers from microsoft weve seen some signs that ceos and companies are starting to maybe slow down, tap the brakes on some of their spending. Is this something that could affect that business no doubt. But i think you have to look where we are in the cycle. Only about 30 of workloads are in the cloud today, go to 55 the next three years still in the second, third inning of this when you look at where microsoft and nadella are focused, were still in the early innings of this growth cycle and cloud starting to transform. I think thats the key with these numbers. Ed lee, was this cloud print good enough . The cloud im with dan here that cloud number was really impressive you know, to the earlier point about, you know, where things are shaking out in the economy and investment and Capital Improvements and stuff, cloud is one of those things that they cant let go of. They cant skimp on just because so much of Business Operations are part of that now its really the fabric of the business and, you know, whats going to be one of the last things you sort of want to shave down, maybe if you slow down some of the investments. But its just Going Forward, thats where everything goes as the internet grows, cloud grows. Thats where the future growth is going to come from. To dig into this a little bit more, dan, there has been this controversial, beleaguered, delayed. Its now even further delayed because the defense secretary is stepping back from it. But this jed icljedi cloud conto the pentagon, seen as one that is truly a dog fight between microsoft and amazon and one that could, depending who wins it, really sort of set the stage for further government contracts. How closely are you watching that and how much could government migration to the cloud mean to a company like microsoft we watched jedi extremely close. Right now its caught in a bit of red tape. Ultimately, a year ago, there was an 80 chance for amazon bezos to win. Today its 50 50, tipping the hand of microsoft winning the deal you look at government where they are today, only 8 to 10 have upgraded to the cloud jedi is the super bowl of cloud. I think over the coming weeks, we hope to get some sort of details. In terms of where microsoft sits here, theyre in a position of strength few years ago, definitely, more back against the wall. What about office, linkedin, anything else jump out at you . Linkedin. We like to know more about how theyre monetizing it. 25 , thats huge thats big of course, on relative basis, its a much smaller business how theyre monetizing, taking better advantage of it, they have linkedin premium, which a lot of hr offices and recruiting firms use as well as companies in general but how they can tap into that better we want to know more about. Thanks for the instant reaction to microsoft post earn i ings as we await that Conference Call, ill have you both stick around for tesla reaction when we get those numbers as well. Much more reaction to tesla ruls when we speak to an analyst. Lots more reaction to come, of course, coming up throughout the rest of the show plus, we will break down the ic mts to show you why oil presay be mirroring a bottom [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu welcome back Earnings Report on paypal. Leslie has the numbers for us. Hey, wilf Third Quarter numbers both beat on the top and bottom lines. Nongap eps beat by nine cents, paypal reporting 61 cents a share. Unrealized losses in Strategic Investments and uber in libra. Both numbers far exceed analyst estimates of 52 cents per share. Top line also beat, slimmer margin refb new at 4. 38 billion compared to 4. 35 billion analysts were expecting. Total payment volume also came in above estimates, 179 billion for the Third Quarter. Other notable numbers in this release include 9. 8 million net new active accounts and paypal said for the first time ever, it processed 1 billion transactions per month in the quarter you can see the stock reacting up 4. 5 in after hours trading back to you. Leslie, thank you lets send it over to ed lee now for your reaction to these numbers as weve gotten them on paypal. I was looking at the numbers here i was zooming in on venmo, actually the payments app that paypal manages and owns theyre talking about credit card, Consumer Brand credit card expected some Time Next Year they process Something Like, what is it, 27 billion total payment volume, 6 increase. In terms of growth, where its going to come from, what should we look to next, at least for me thats what im looking at. Ed, thank you so much paypal, of course, has been on a bit of a plateau, after being on a tear the past couple of years. Venmo growing quickly but not making any money for the company. I think thats the question long term mike has the final installment of the dashboard. Theres a bit of a crowded trade ont the data by way of ned davis that may be a bit dangerous. Pop on crude unexpected decline in invintoentorinventories. This is about over 35 lets look at some other points when we were up roughly in this area you can see it corresponds a little more to trading lows in crude oil. Positioning would suggest might be a little more room for oil prices to go up. It doesnt mean its a decisive move higher, obviously but it definitely suggests that bottom of the range action in crude oil has attracted a lot of folks betting against it right now. Mike, thank you another earnings alert this time on ebay eric thats right, morgan. Stock down 3 to 4 right now. They did beats on the top and bottom line. Pushing the stock lowe guidancen both the eps and revenue lines those are coming in a little less than the street was expecting. Gross volume number was less than analysts had been expecting, bringing the stock down now 3 on ebay. Back to you. Thank you so much, eric down 3 ebay more to come on that Mark Zuckerbergs hearing has just wrapped up on capitol hill. We should see mr. Zuckerberg exit, over six hours of testimony in front of congress and live interview with Maxine Waters, chair of the committee mr. Zuckerberg has been testifying in front of well be back in a couple of minutes. Still ahead, Facebook Ceo Mark Zuckerberg. Crypto currency plans. Well hear from an antitrust expert on why hes so critical on facebook to create its own currency. Later, dont miss an exclusive interview with ceo of Cleveland Cliffs hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. With original medicare, youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each and then youre still responsible for 20 of the cost. Next, lets look at a Medicare Supplement plan. As you can see, they cover the same things as original medicare and they also cover your medicare deductibles and coinsurance. But they often have higher monthly premiums and no Prescription Drug coverage. Now, lets take a look at humanas Medicare Advantage plans. With a humana medicare plan, hospital stays, Doctor Office visits and medicare deductibles are covered. And, of course, most humana Medicare Advantage plans include Prescription Drug coverage. In fact, in 2018, humana Medicare Advantage Prescription Drug plan members saved an estimated 7400, on average, on their prescription costs. Most humana Medicare Advantage plans help you stay active and keep fit by including a Silver Sneakers Fitness Program at no extra cost. And, you may be able to save on dental and vision expenses, because coverage is now included with most humana Medicare Advantage plans. You get all this coverage for as low as a zero dollar monthly plan premium in many areas. And your doctor and hospital may already be a part of humanas large network. If you want the facts, call right now for the free decision guide from humana. There is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you can save on your prescriptions and to get our free decision guide. Licensed humana sales agents are standing by, so call now. Mark zuckerberg just leaving the hearing on capitol hill. Ylan mui tried to track him down moments ago. Mark, are you ready for 2020, Going Forward . Are you looking for support of members of congress, mark . Ylan mui there. Another valiant attempt. Weve seen a few of these from ylan the last couple of weeks, trying to track down mr. Zuckerberg on capitol hill when he was leaving six hours, to be fair to him, im sure he was fairly tired and didnt want to take any more questions. Reporter thats right. We also have learned that after the hearing was over, he did the chair woman of the committee, Maxine Waters they spoke for five or six minutes or so. She said later to reporters that she still has not changed her mind about libra, eep after all of this testimony, even after his defense, framing this as a way to help people who do not currently have access to Financial Services get it. She still has questions and does not support this crypto currency we heard an attempt to show lawmakers that facebook has the interest of the American Public at heart however, democrats, in particular, were very skeptical of that message and hit him on a number of fronts, not just on libra, but wide range of issues, election security, political speech, discrimination, diversity. All of these things are contributing to the intense scrutiny of this company on capitol hill at a very sensitive time as its company ramps up for the 2020 elections. Quite a number of topics, ylan always fast on your feet we appreciate that. Mike santoli, one of the things we havent mentioned is whats happened to bitcoin. It got a big boost, this ratification of crypto it was down big today, not just necessarily about facebook but google announcing achievements in quantum computing sentiment in bitcoin that might very long term undermine the crypography but the facebook scrutiny and skepticism greeting this effort is not helping the general crypto space, at least in the short term. Back below 7500 time now for cnbc news update with sue herera hello, sue. Here is whats happening at this hour, joe biden returned to his childhood hometown in pennsylvania to pitch his candidacy as one centered on boosting the fortunes of the middle class he said a reversal of president trumps tax cuts and loopholes would be an immediate boost for everyday americans. Wall street did not build america. Investment bankers did not build america. Hardworking middle class built america. Unions built the middle class. And the middle class built this country. A man who shot five people inside a pennsylvania walmart last year has been convicted of attempted murder 31yearold keenan jones pulled out a semi automatic handgun while in a checkout line and randomly shot five shoppers. He will be sentenced in january. Beer brewed by breaking bad actor dean norris sold out in a matter of hours last weekend in albuquerque called schrader brow beer norris plans to eventually take his beer nationwide. Thats the news update this hour back down to you. Yes i dont even drink beer but love this idea. I do, but i havent seen breaking bad im still positive on it. Sue, thanks so much for that. Got it. Still to come, interview with Maxine Waters want to hear about the tone of that private fiveminute nvsaonitcoerti wh Mark Zuckerberg after the sixhour testimony we just heard about from ylan. Does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. There are zero reasons to invest anywhere else. Takin it off road station ted goiwagon, eh . Ip, huh . You know its an suv your family is duckin and rollin. While we stowin and goin but thats cool, i know for a fact your suv does not suck. And why is that . It aint got that vacuum in the back, whoo sucking stuff up what else are we gonna find . We got to go. 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Get your info kit now Mark Zuckerberg testifying on capitol hill today, questioned about libra and not to place political ads on the platform author of goliath the 100year war on democracy. Thank you so much for joining us good to see you. What do you think about libra itself, meant to be the focus of todays hearing . I dont think its going to happen it introduces too many problems into the monetary system, systemic risk, National Security problems, privacy problems, competition problems its crazy its a crazy idea. So libra itself specifically is not going to happen or a stable coin or crypto currency run by consortium in general isnt going to happen . I think the consortium is not going to happen. I think youll see a stable coin but its going to be linked to a currency, digital dollars, digital yen, digital euros we solved this problem in 1913 with the Federal Reserve we dont need to go back and have more financial crises and problems than we had before that. Whats your response to zuckerbergs point today, that if someone in the u. S. Doesnt do this, then china will he might be right he might be wrong. But if were going to need sovereign power to do something with our currency, our government has to do it. Mark zuckerberg is not going to protect us from the Chinese Communist party. The u. S. Government has to do that we have to do that through our politics and its crazy to ask Mark Zuckerberg to do that, especially because of his close relationship with china until it was clear he couldnt get his product into china. I wonder what you think about. Theres been this bigger broader brewing debate around section 230 for these Companies Like facebook would that be the answer, especially when you have topics, like in todays hearing that have nothing to do with libra but have things to do with housing, advertising on the site good question section 230 regulates tech platforms like utilities but it lets them do anything they want, even if its not utilitylike business advertising is not a utility business they get the liability shield like theyre a utility what we should really be doing with Something Like section 230, we should be saying if youre paid like a utility, youre paid for service. Youre paid like the water company, electric company, then youget a liability shield. If youre going to act like a publisher, then youre going to be regulated like a publisher. Step away from todays hearing and libra debate what do you think about the state ags proposals and broader regulatory there are at the moment do you think its likely theyll get broken up . I think its going to happen. Youre seeing a return to the 1930s. We have a crisis of capitalism in monopoly all over the country and theyre the pace setters antitrust action all over the world, youre seeing it in congress youre seeing it at a state level and now on a federal level. And youre seeing it in the president ial campaigns, which we havent seen for a really long time were in for a very interesting ride. There are monopolies over what part of the economy you know the argument, Digital Advertising is not in itself the entire market. So the australian competition commissioner said they are a monopoly over social media advertising, which is a specific place where marketers have to use. But they also have substantial market power over news referrals. So, they use that power to coerce publishers into handing them data, which then makes their advertising more valuable. Do you think they should be defined as publishers . I think they should be broken up into information utilities and i think they should be barred from advertising. The problem that you have 1998, larry page wrote a paper saying advertising search engine, social network is similar to search engine, its information utility. Inherent inherently deals in self profit and hes right. Congresswoman Maxine Waters, chair of the House Financial Service committee where Mark Zuckerberg was just testifying she joins us now thank you very much for joining us, congresswoman. Youre very welcome thank you. I understand from our reporter, ylan mui, after the hearing ended you had a fiveminute or so conversation with Mark Zuckerberg can you tell us what the tone of that conversation was like it was simply my thanking him for showing up and telling him that i knew that he would be uncomfortable because we had some tough questions and not only about libra, but about other concerns that we have, such as targeting, diversity and inclusion, housing discrimination and so i thanked him for coming and i told him that we would have to focus on also what hes doing with his new approach about freedom of speech and the way that he is basically isolating elected officials who purchase ads and basically saying he will do no Fact Checking and sending a message that we can say or do anything that we want to do or say on those ads. So it was just to kind of recap some of what had taken place during the hearing. As you said, lots of tough questions posed by you and your colleagues to mr. Zuckerberg how did he do, in your eyes . Well, i think there are still some answers that we need to explore. We did not get all of the answers that we need about some of these issues and were going to have to keep working on every aspect of our concerns about libra and about facebook and also about the freedom of speech issue, about the targeting, about the algorithms we have a lot of work to continue to do. On libra specifically, congresswoman, was enough done today in terms of this testimony from Mark Zuckerberg to pr sue the Major Concerns do you think theres a path forward for this crypto currency i think you heard a commitment from Mark Zuckerberg that they would not launch until there is a Regulatory Regime that is put together to oversee libra. And so thats very important i had asked for a moratorum. He said they would slow down i think his commitment sounded a little stronger today. We have a long way to go before we can make a determination about libra. We dont know much about it. We dont know what it really is. He talks about wanting to have a project or crypto currency he wants to talk about a Payment System we dont know exactly what it is and what agencies should give the kind oversight to libra that it should have so we have a long ways to go. He said today, chairwoman waters, that if the u. S. Doesnt innovate in this space, then china will, and china will move ahead. Whats your response to that well, you know, my thoughts are this that the United States of america is capable, competent, intelligent enough, smart enough, organized well enough to do what it needs to have done in order to be competitive in any field that were discussing. Whether were talking about with crypto currency or other kinds of areas, well be fine. Im not so worried about china of course were going to keep an eye on china were going to know exactly what they are doing but we will be competitive in the world. Chairwoman, are we going to see a regulation either out of your committee or out of congress more broadly where facebook and these Big Tech Companies are concerned . We have a lot of work to do, in addition to learning more about libra and how it is organized, we will be talking with the regulators, some of whom have set up advisory committees, to talk about what they know and what they understand about it. So, when all of this work is done, i think there will be decisions made about whether or not we have enough in law to deal with oversight, whether or not we need additional legislation or what needs to be done so again we have a ways to go before those decisions are made. Would you ultimately like to see facebook broken up well, i said to him today that he had created this discussion that put it on the table for us to think about. And so, as you know, Elizabeth Warren has already talked about it should be broken up shes opened up the opportunity for us to take a look at it, to discuss it and make decisions about it the discussion is now in the air. I think it will take place, discussing what should be done. One final question i wanted to switch topics, if all right you and i have discussed wells fargo many vw was on the appointment of the new ceo is he the right man . Whats your take on if he hits all of his targets he could be paid 20 million in his first year well, i dont know except to say this it is not the matter of simply getting a new ceo. It is a matter of understanding the culture that had developed in wells fargo and how deep that goes in wells fargo. It was not only about the fact that they were opening up accounts in their customers names. Its also about the fact this they were charging them for insurance that they did not need and so all of this has to be looked at. I believe, and i have said that i believe that wells fargo was too big. Now, ive made some decisions in my mind about wells fargo. Theyve been fined billions of dollars. And it seems this is just the cost of doing business and i think that we have got to make sure that wells fargo does not continue in any shape or form that it has worked in, that weve got to correct all of the fraud, all of the ways that they have gotten people involved in doing whatever it takes to get a bonus and so im very, very firm about wells fargo. Congresswoman Maxine Waters, thank you so much for joining us. Youre so welcome and thank you. Up next, drilling down on earnings ceo of Cleveland Cliffs joins us ahead for an exclusive interview. A stake on companys earnings and Economic Outlook after the break. Sus omus still waiting for reltfr tesla well bring you the numbers as soon as theyre released welcome back to closing bell. Cartila caterpillar wasnt the only other bellwether company Cleveland Cliffs, stock hitting a 52week low after lowering its forecast for shipping of iron ore pricing. Joining us is ceo lourenzo gonzales here at post nine. Thank you, morgan pleasure to be here with you. Whats your take . We continue to be influenced by everything china related. China continues to overproduce, continues to explore the inertia throughout the entire world, particularly the fact that they pollute the world and now that they dont have a dumping ground in the United States, they moved into europe. Biggest thing in the business is the amount of europe affecting our oil prices. A year after we saw those steel tariffs put in place and pretty widespread, not just on china, but in so many of our trading partners as well, would you have expected to see such softness in pricing today . No because at the time, i believe that other countries that could be potential victims, like the United States has been for a long, long time, would take advantage of the fact that the United States was leading and would also act to avoid the presence of chinese steel in their grounds. Im talking about canada, mexico all the european countries, brazil and these folks didnt act instead of acting against the perpetrator, that is china, they acted against the United States, as if we were doing something evil and, okay, now they are being hurt badly i guess you could frame it differently and say the president perhaps should have sought a consensus among allies first before acting. But regardless of that whats your take on u. S. Manufacturing strength at the moment we have seen the data slip a bit. Do you feel like its got further to fall. I dont think so. I believe that we have suffered enough and i also believe that its about time for the market in general, investors particularly esg conscious investors even more to start giving credit to the importance of having manufacturing this this country we manufacture without pollution. Weany workers the right wages. And the social issues that follow, oregonens and things likes that we are second to none esg conscious investors its time to understand that manufacturing in the United States is a good thing for the world. So much much your mining of iron ore is focused on the u. S. Specifically tp steel is a big xenoennant in the Defense Sector has that been a tailwind, a what. What weve seen in defense, has that within a tailwind. No, i think that defense has always been steady and good. I dont know if i can call real tailwind because i havent seen massive improvements but it has been good and continues to be good. Laurenco thank you for joining us my pleasure. 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All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. From the start, the cclass was ahead of its time. Still, we never stopped making it stronger. Faster. Smarter. Because to be the best, is to never ever stop making it better. The 2020 cclass family. Lease the c 300 sedan for just 419 a month at your local mercedesbenz dealer. Welcome back tesla just hitting and we are digging through the numbers. We bring you the details once we have them ready. But here joining us now to talk more on tesla is our ark Investment Analyst ment there is a 4,000 price target on the stock. What would change your these zblies at arc we are longterm investors. Any one quarter shouldnt change the thesis too much. What we are excited to hear about on the call, first wed love to hear the update on the full selfdriving, the progress they make with that. They said that by the end of 2019 thiel be feature complete launching in 2020 for you a thompson taxis longterm we looked at tesla gross margin which i think are a concern for investors this quarter. And we have actually predicted using rights law, law we use to predict many Innovative Technologies we think by the end of 2020 that tesla should be able to achieve a 30 gross margin on the model 3. You guys were selling shares into the quarter is that right. Im glad you brought that up. Yes. This was more of a Portfolio Management thing so in certain of our funds, you know, tha