Headlines are moving stocks much higher were going to dig into those. And driving the action this week, media disruption well get the Details Behind hbo max, friday is the launch of appletv plus, and disney plus launches next friday so all of this week on closing bell, were going to take a deeper dive into the strategies, investments, and personalities behind the changes happening in media. Today, well talk to billionaire, ted leansus, the owner of Washington Wizards and capitals about the value of live sports thats all coming up after the bell its going to be a very big show here today and joining us for the hour is stephanie link fr stephanie, it looks like today is kind of steady as she goes, it seems like we have a deescalation of the trade war and fundamentals of earnings actually moving some stocks. You hit it perfectly, actually good start to the week trade tensions seem to be easing a bit. Earnings so far, 50 of the s p 500 have reported. Theyre beating by 2 , i know against a very low bar, but theyre still beating. And most importantly, 2020 guidance, only coming down about 1 and that represents about 11 year over year growth. So can you imagine going from flattish growth this year to 11 growth i dont think the market is pricing that in. Im not sure were going to do 11 growth, but anything better than flattish growth, i dont think is necessarily priced into the market so we have a lot to get through, guys, this week. Its going to be very busy starting on wednesday, with the nonfarm payrolls so a lot to tackle im not doing much sold some dr horton today. Bought a little amazon and a little bit of my last chance trade thats right. Thats a teaser 140 Companies Reporting this week, too, besides all the things you went through. A lot to get through this week and the next hour, including whether or not well have record alltime closing hi highs. On the s p 500, it looks highly likely it is touch and go, the dow wont make it today. Julia boorstin is covering at ts earnings. Josh lipton has details on microsofts big cloud contract win. Robert frank is watching one Luxury Retail mogulsed bid to expand his empire. Julia, lets start with you on at t wilf, thats right. At t shares rising about 4. 5 today on stronger than expected guidance for next year through 2022 also on progress with activist eliot management, which says it supports the approach unveiled by at t, including reviewing the portfolio, the commitment to making no more major acquisitions, the addition of two new directors and a plan to break up the ceo and chairman roles. Revenues falling short of estimates with earnings beating estimates by a penny per share the company did lose at nearly 1. 4 million subscribers between tv and streaming, which was more than expected. Guys, back over to you julia thank you very much, julia. Sorry, wilf. Were very excited its going to be a big show. It is microsoft is beating out amazon and a slew other competitors for a major government cloud contract. Josh lipton has more in San Francisco. Hi, josh reporter so courtney, the contract known as jedi could be wort as much as 10 billion over a decade microsoft today jumping to a new alltime high. No surprise, amazon not happy. Says it was surprised about this conclusion tech analyst Patrick Moorhead says this is a big deal for satya nadella, in part because its a powerful Marketing Tool and nadella can reassure Companies Working in highly regulated industries from banks to hospitals that his tech is secure enough for the u. S. Military, so surely its good enough for them as well. But the fight might not be over. Amazon is reportedly considering a challenge to this award. Guys, back to you. Josh, thanks so much for that stephanie, unsurprising to see microsoft breaking out higher on the day the s p 500 is probably going to close at a record alltime high. And the sector construct today is tech leading the charge its nice to see. Tech is leading the earnings charge, too. Thats whats fueling the better than expected results. But im impressed that amazon has actually snapped back. I would tell you earlier, that i actually added to it, because i thought the quarter was better than the underlying kind of reports. But in terms of microsoft, the numbers initially on are not that big a million for the first two years, could be a billion per year depending whats more important, theres 30 billion more from the department of defense, down the road and so if they can do a good job with this contract, as a single source, that actually is very positive eventually for more money down the road. Is this a bigger win for microsoft or a bigger loss for amazon i think its a bigger win for microsoft, because the rumors were it was going to be dual sourced. So the fact that theyre single sourced, now, i think amazon probably will appeal well see what happens but i do think this is much bigger for microsoft, for sure interesting to see how google does they report after the close tonight. Billionaire Luxury Retail mogul making a bid to buy one of americas most wellknown jewelry brands robert frank is diving into that story for us hi, robert he is known as the wolf in cashmere clothing for his skillet hunting acquisition targets, Bernard Arnault making a 14. 5 billion play for tiffany whose stock is now above that bid. Arnault has become the third richest man in the world by buying up brands and expanding them around the world. Lvmh stock price up almost 50 in the past year, giving him a net worth of almost 100 billion. Lvmh has over 60 brands from Louis Vuitton to dom perignon and fenty by rihanna adding tiffany would help grow his jewelry business, especially in china where tiffany has struggled, but remains a highly popular brand, guys, back to you. This is very interesting as well, because the ceo of tiffany does have a history with mr. Arnault. He does in fact, the ceo, alex boleioio worked for bulgari and theres a board member on it haveny who was a board member of ball garni when he bought it. This would be round two and for bulgari, it worked out really well, so that could be a precedent. Steph, whats your take on this and any read across for how long luxury is at the moment luxury is definitely strong, definitely has momentum. I think the price is too low 15. 2 times ebitda, the deals on average has been 20 times ebitda and theres precedent. Some companies have paid even higher than that if you were to put a 22 multiple on ebitda on tiffanys, i think it can do much higher. And i think the contribution is great. Lvmh is an innovator and tiffany has the global brand name. I think its a good combination. I just think the price needs to come up. I think its kind of interesting, clearly, all of these Luxury Brands are global in nature. But the european one, where the consumer is meant to be week is the one thats acquiring the u. S. On whether the u. S. The meant to be strong sales, of course, globally, but you would havent expected that on the surface of Consumer Companies right now. But tiffanys has stumbled in the last several years theyve really been struggling with sales and margins have really been contracting substantially. So theyre in turnaround mode. And i have no doubt that this management can do it, its just taking longer. So i dont blame lvmh for taking advantage. Theyre a wonderfully run company. It would be a very powerful combination. And lvmh is a dealmaking machine. I dont doubt this will go through now that both companies have acknowledged that at least have been approached i think the price is the big question mark and the street agrees with you, obviously, because look at the stock price today, well above that 120 a share reported price lets turn now to Virgin Galactic, thats moving higher today as well, on its first day of trade here at the New York Stock ExchangeMorgan Brennan has details for you. A big day in your space. A big day in my stays, in space. Virgin galactic marking a milestone, becoming the Space Tourism company to go public i sat down with founder sir richard branson, investor, and ceo George Whitesides earlier in a first on cnbc interview to discuss this debut i think its a very big milestone. If the public wanted, you know, to take a little double a little bit in a space, or own a little bit of a space, they can now do so. We got off to a great start, having the share price went up 11 on friday and another 5 today. And yeah, weve managed to completely fund Virgin Galactic through to when it breaks even now, galactic merging with social capital ahead of sophia, which is a special acquisition vehicle. A socalled spat, to raise that capital and go public through this nontraditional direct approach, making him not only chairman of this space company, but a major investor i think the profitability of this business is going to look as good as one of the best Software Companies around. And thats why i was so excited. Youre in the business of hardware, but it looks Like Software and that is very different than many of the other technologyoriented Hardware Companies that have gone public recently so this is a business that at scale will have almost 70 operating margins, which is incredible so in terms of how big this market is, how many people will pay 250,000 for a flight to the edge of space, ceo George Whitesides also saying they think 2 Million People can experience this over the coming year at this price point theyve already got 600 signed up, remember and over time, as they reduce that price, the market will actually be capacity constrained, even with the Space Tourism competitor Jeff Bezos Blue Origin also getting ready to offer their own suborbital flights. Thats over the next couple of years. Longer term, this is a company thats looking at hypersonic travel basically, pointtopoint travel around the earth something that could be a much bigger, greater, longerterm disrupter to things like airplane travel. Morgan, that i particularly look forward to. I bet you do. And i enjoyed your conversation with him about that but back to your point in terms of 2020 target and how many flights to space they expect at that 250 grand price point i guess it hasnt gone through the traditional ipo process to get that forecast of what its trading on right now, but what rough estimates are those valuation multiples in terms of how much the companys worth, based on the listing and some of those expectations for when theyre going to start to see revenue pouring in and i was doing some Light Reading of the almost 600 pages of the amended s4 just yesterday afternoon, going through some of these numbers. Now, keep in mind, service has not begun. Theyre targeting next year. But as you heard those comments from pal happahapatia, its rea about the gross margins, which currently based on the flights they have actually done, they have done some test flights and taken some payloads to the edge of space versus what the cost of those flights are, youre talking margins that are, in the First Six Months of this year, i want to say around 43, 45 but theyre expecting that as this company gets to scale, youre looking at margins of 7 , which is why there is this path to profitability, why they have these forecasts in place and why, quite frankly, even though service hasnt begun, the stock is trading up 2 today after popping when the merger closed friday afternoon. Morgan, thanks so much for that steph, quick question, do you think this is buoyed by the fact that it is this sexy space stock episode anything else . Yes its a niche and its early and i think if hes right on 70 operating margins over time, thats huge. And you want to get in on the ground floor but pick very, very carefully. Because this is very early stages stages very early. Now weve got a news alert on boeing ahead of ceo Dennis Muilenburgs testimony tomorrow in front of congress, phil lebeau has the details wilf, we have the Opening Statement from boeing ceo Dennis Muilenburg whowill be on capitol hill over the next couple of days this is from his Opening Statement that will be delivered tomorrow morning at 10 00 a. M. In front of the Senate Commerce committee. Among the quotes that we have, as we read through this statement, one that stands out is when Dennis Muilenburg says, we have learned from this incident, this accident, the two boeing 737 maxes he says, i can assure you that we have learned from this and will continue learning we have changed from this and will continue changing as you take a look at shares of boeing, guys, i was just at a briefing, a pen and pad briefing with representative Peter Defazio from oregon, who is on the House Committee that will have a chance to question Dennis Muilenburg on wednesday. Theyre not happy with the state of whats happening with the 737 max, with boeing, with the faa and i asked him pointblank, do you believe that there may be some criminal actions here and he said, we just dont know. There are a lot of people we want to talk to who have said, well talk with your committee after we talk with the doj because, remember, the doj, the department of justice is investigating this entire situation with the boeing 737 max. Guys, back to you. Phil, im also just trying to skim read this set of testimony for tomorrow of course, the testimony is one part of it the questions and i think thats more important, wilf. I think the questions are far more important most of what weve read here, weve heard a lot of these statements in the past from Dennis Muilenburg or from boeing yes, they feel responsibility for the 346 lives that have been lost in these two accidents. Dennis muilenburg says in this statement, we own it, thats a phrase we have heard from boeing for almost a year. Tomorrow is the oneyear anniversary of the lionair crash. Whats going to be more important is whether or not we see a level of contrition from Dennis Muilenburg that we havent seen in the past if you go back to the annual meeting, a lot of people felt that Dennis Muilenburg came off as cold and indifferent. Now, from talking with executives at boeing, and when i talked to Dennis Muilenburg, they said, thats not the case at all we completely understand the magnitude of the situation and Dennis Muilenburg does feel contrition but hes got to show that. And if he doesnt show that tomorrow, wilf, you can bet that the senators on the Commerce Committee who are going to be questioning him, theyre going to go after him hard regardless, theyre going to go after him hard, but theyre really going to go after him if he doesnt show a level of contrition phil, its stephanie link you dont think he sounded better this past Conference Call versus the prior two better, but im not sure if hes gone far enough, stephanie. Now, part of that is, and i know dennis fairly well over the years from interviewing him and talking with him, thats his demeanor it doesnt mean that hes not caring and that he doesnt understand the situation here. But the analogy that i use for people is, goback to the gm ignition switch hearings on capitol hill the first time mary barra came to capitol hill, she gave correct answers, very succinct and straightforward answers, but she was it was a terrible, terrible performance in front of those who were questioning her, because she did notcome across as sincere enough. And i understand people will say, look, this is all theater what really matters is whether or not boeing is changing things well, the fact of the matter is, that does matter and whether or not you come across as sincere. And when mary barra came back the second time, guys, much different tenor and tone from her than the first time around so it will be interesting to see how Dennis Muilenburg handles this, not only tomorrow with the senate, but wednesday with the white house. Phil, thank you very much we look forward to your coverage of that. Phil lebeau. Stai still ahead here on closing bell, the busiest week of earnings season, with google, beyond meat, tmobile coming up. Plus, were looking beyond the bundle this week on closing bell with a deep dive on the recently changing media sector ahead, well take a closer look at the lucrative sports media market with monumental sports ceo and nba, wnba and nhl team owner, ted lye leonsis 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. Welcome back to the closing bell. Just about 40 minutes left to go and we could see a record close on the s p 500 were going to watch it careful, so the level were all watching to beat is 3025. Lets get a check on individual market mover spotify, reporting an earnings and revenue beat this morning monthly active users were up 30 versus one year ago. Outperforming the guidance the increase was driven by growth in latin america and southeast asia, as well. Spotify is on pace for its best day ever shares up more than 16 . Lets ge