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