Transcripts For CNBC Closing Bell 20200211

it will examine prior m & a deals, and microsoft, and booing says itto after passing a negative order rate in 2019. joining us for the hour today, steve grass roa from stuart frankel. of course, it's so ironic, though, you come in, you have the t-mobile story, and another story that's overreaching on the make rho, where it's the same names that have driven the market higher for the last, i don't know, five or eight years or so? that could be suspect. i'm not sure, the market is still green, so let's see where we wind up the truth is if you're going to and then if you with lower the bar, i don't know if it's some that's a real deal breaker >> let's drill down into that story a bit more the biggest tech company es over the past decade, let's. >> they are talking specifically about small acquisitions that were not -- and that includes deals by apple, alphabet amazon facebook and microsoft. the ftc would not comment on exactly which ones it's interested in. our own rue view the data shows that ftc could look at firms like glassboor and including minority stakes and licensing agreements, guys back over to you. >> we appreciate it. could the government derail the tech rally that's a big question right now. joining us is cara swisher, who is with us today by phone. what do you make of this story on its face? it's a big deal. the question is can the ftc do anything they're much more understaffed and it's a huge amount of acquisitions just sir innova has bought instagram. and there's hundreds of otherwise. by any new integrated into the businesses it depends on what we look at. like whole foods or fitbit, the -- it makes a small acquisitions are sessions. and, you know, you suspect facebook with okay ulutz and instagram, i would be worried if i were amazon. at the bought twitch for a billion in 2014, and google as the small ones are just as interesting. >> doesn't it make you uncomfortable that and now we're talking about we're talking about acquisitions, and tomorrow we may be talking about something different? >> i don't know if it makes me uncomfortable. it's a question of why did this go on so long. >> you know, the very same day some other acquisitions have gone forward so it's an interesting time. the question is is big tech hinders innovation or just buying up companies to solidify their position are they really hurting innovati innovation it's not clear what the ftc wants to say here except that these companies, especially facebook, google and amazon really do run down the highway it's very hard to get around them i think they're undergunned at the ftc. you know, this he decided not to sue facebook for a consent agreement. they don't have the staff and facility to do that. >> grasso, does it make you rethink any of these names those seem to be the ones that could be started the most. so i think that's the first blush, the knee-jerk reaction, those seems to be the one if you're a conspiracy throwist, you're thinking amazon. >> how many headlines have we received that they're looking into they companies so star it's not amounted to much >> a lot of times, for a long time , it was the focus of the or i agree with apple, i think they have the least to worry about. they already have a competitor called samsung >> offer microsoft linked in >> the mere fact that the government is allegedly looking into all of this, stand up and take notice again. i think also when you have a president that uses the stock market of his barometer as to whether he's successful or not, i would guess -- this is just my own viewpoint, start to to cara's point, it loses a lot of bite down 2% for facebook and microsoft, and some other are not even down at all thank you for phones in today, cara. >> thank you. coming up we'll talk with dan rosensweig, he today's closer let's check in with michael santoli. will the base hold a lot of talk about divergences, the breadth of the market isn't what you mike want to see. living free? some of those ipos set free on the market really been revived this years americans feeling better than they were in recent years about their own finances, so first of all, clegg a look at the relationship against the equal weighted s&p it weighted every symptom the same and s&p pure value. obviously, you see this liftoff effect, right north are near the start of the year. as value balances, but really it was just sort of neck and neck, as we start to get more to a small look at the same three over two years, and you'll see that even though it hit liftoff recently, megagrowth has been -- it's to the average stock up 10% from that point, you see the make acap growth stocks up 40% you stretch this relationship pretty tight coming into today, and you're seeing some of that megacap stuff go down, maybe in the short term, we have reached a bit of a limit >> thank you, mike. still ahead we'll talk more about the ftc's crackdown with today's closer, current chegg ceo dan rosenswieg and there may be more to today's symptom drop we'll explain that next. and up next, a check on the data tracker today rising to 104.3 innian wear, but job openings fell to 6.43 million in december, lower level in two years we'll be right back. what a time to be alive. the world is customized to you. built for you. so why isn't it all about you, when it comes to your money? so. what's on your mind? we are edward jones, a 97-year-old firm built for right now. with one financial advisor per office, we're all about knowing what's important to you the one who matters. edward jones. it's time for investing to feel individual. [ fast-paced drumming ] let ate check in on an individual market mover. shares of underarmour are absolutely plunging. the company came out this morning on earnings, warned that the coronavirus outbreak would slow sales, and also warned their recovery was taking longer than expected. the retailer says the outbreak specifically could have a 50 million to 60 million impact on first quarter sales, and given the uncertainty, full-year results could be impacted as well coronavirus, yes, but it is the home market of north america that is hurting. they're projecting a mid to high-single-digit decline. that's the bread and butter. a and, i think it's fair at this point in the stage of this company to wonder whether it had its 15 minutes and if a legitimate duranaround is really in the carts the warriors are the rage of the nba, steph curry is the most popular, their shoe business is tied to curry. and plank is not running the company anymore. i just wonder -- i wouldn't pin it all to the fact that their endorsements and their starts are not doing well. >> it was a time when the company was the killing it and the turnaround or the -- you don't want to call it a restructures so they can reinvest not really happened what we thought should have been on the horizon, it's not happening yet, but the point about north america being so week, i think that's the real issue for investors, and i think they're rapping up everything the two of you were just discussing, we'll take a look again in the near future, but no one's suddening there trying to be a hero. you have two choices, nike or underarmour. there are smart investors, like a stephanie link, now trying to be a hero, was in this stock, buying more on the pull back betting heavy there. and now i think people like that are sitting here today and questioning whether they you couldn't bet more negative about where we are right now you can catch a special report, 7:00 p.m. eastern right here on cnbc president trump tweeting in the middle of the testimony -- when jerome powell started the testimony today, the dow was up 125 points, heading higher as he spoke it drifted steadily downward, as usual here's a look at the key comments from the chair. >> we are closely monitoring the emergence of the coronavirus i think we know there will be some effects on china through some part of the first half of the year and china's close neighbors and major trading partners in europe as well as in asia we know there will be likely some effects on the united states i think it's just too early to say. the thing that we worry about a lot is cyberattacks. i think we have a great game plan for traditional, you know, issues like bad loans, things like that. it's more cyberattacks is really the frontier where you worry there's no reason why the expansion can't continue >> all right that's the fed chair let's bring in steven liesman. he didn't say anything to upset the bulls in the stock market. it just so happened you had the boeing headline cross of no new orders for the first time since like '62 the ftc, microsoft sold off, verizon was lower because of the spring/t-mobile deal that was all happening. >> i just did some reporting what did the fed chairman say? look at yields, the ten-year barely budged, two-year barely budged the outlook and the probabilities on the fed funds and the rate cut barely budged it was hard for me to see any way that the market reacted to what the fed chair said lowering the odds of a rate cut, and then the stocks reacting from that. it was very difficult to find. all the things you just listed, and obviously, you know, it came back during the day, the president forgot to tweet about that i'm sure he would have known on. if we get, the material reassessment of the outlook, then they'll change rates. >> yeah t. the bias still seems to be that the next move is going to be a cut. the market is betting on it by the midsummer. the fed chair didn't have to say a word today from the he certainly could have leaned again it. he didn't say anything, in fact there's people like oxford economics heard the speech and said this affirms our call for quarter-point cut in june. >> steve, thank you. my pleasure. 40 minutes before the bell, we're now at section lous. the dow is up 135 points the gains are slipping here. after the break, sprint and t-mobile surges after the company crossed a major hurdle one analyst sis verizon and at&t could face the most credible threat ever. fred moffett joins us next. uber stock is up double digits since earns last week today it is lyft's turn to report we'll po wt eecd. "closing bell" is back right after this legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. time now no "word on the street." spring and t-mental shares surging after the approval nearly two years after the sale was first announced. the judge ruling that the $26 billion deal would not by anticompetitive. let's bring in craig moffett for what it means for the landscape. what does it mean for verizon and at&t they have now a much stronger third competitor. >> yeah, look, the judge i think made it quite clear that hi fully buys into the argument that both spring, t-mobile and the department of justice made that this makes spring a stronger competitor or spring/t-mobile could be a stronger competitor, and this had increase the competition that was a fairly persuasive argument from the beginning. at least from a network perspective, there's no argument at all that this will be the strongest network that verizon and at&t have ever competed against. >> let me focus once again verizon and at&t, all right, so the strongest competent torts they've ever had what does it legitimately mean for them >> well, for verizon in particular, look, verizon's problem here is they made exactly the right strategic decision to focus on their network and not get distracted by bad media deals or that sort of thing, but then they executed it wrong, pull all their eggs in the basket of very high frequently spectrum. their network doesn't have very good coverage. as we get on the cusp of 5g, they're on the heels the new spring/t-mobile will come at this with low-frequency spectrum that providing really good coverage, a lot of mid band spectrum that highs -- and high speed. that puts them at a clear advantage once the network is built, to verizon. at&t is in a good position, too, but neither one has ever really had to compete against a network that will be as strong as this one, particularly outside the metro areas. >> craig, do you think that all the hype behind 5g, can it and will it live up to it? because then it has widespreading affect on apple, on the chip plays, or is a lot of this a lot of hype? because it seems to me this deal was ndong in large part because of 5g. do you agree with that >> it was. i've been on yurt network for a long time saying expectations for (5) were just way too high remember a year ago on squawk talking about whether a year from now we would have ubiquitous 5g mean to right now. the answer was, of course not. that was viewed to be contrarian at the time. people's expectations have been way too far -- or way too optimistic for how quickly and how dramatically 5g is going to evolve it will get here, but it's going to take a lot longer than people thing. i don't think that 2020 is a 5g cycle year for handsets. >> craig, i know we bring you on to talk about the stocks, but because of the all the complaints around this deal getting down and now that we're seeing 4 go to 3, what will it mean for consumers >> probably nothing bad. you know, the judge i think again was persuaded that the -- sprint was never going to be a disciplining force for the market it was just too weak, and so sprint the judge i think accepted the argument that sprint was all but irrelevant. so what this deal really does in the judge's mind, and he's probably not wrong, is that it makes t-mobile stronger, and t-mobile will be a more relevant disciplining force for verizon and at&t than either t-mobile or present could been on their own. they have under the consent decree commitments for aggressive pricing they've given a deal to dish network, so dish will sell service at what's expected to be aggressive prices, and again, if what you're measuring for consumers is, what's the quality of the networks they're going to choose from? there's no question this is a good deal for consumers in that it will mean a much stronger network from sprint/t-mobile than enwould have on their own. >> appreciate your insights as always craig moffett, thank you just about 30 minutes left to go as we sit near session lows here. here are three things driving the action jay powell telling lawmakers he's closely monitoring the corresponde coronavirus, and boeing saying it booked zero new airplane orders in january. time now to get a cnbc news update with sue her area hi, sue. hello, everybody top congressional democrats are responding to president trump's budget proposal. they are especially critical of proposed cuts to health care and student loan programs. >> we know the president just lies, lies about protecting health care, and his budget is proof if the state of the union is what he says, the budget is what he does, and the two are from different planets an overcrowded boat carrying rohingya refugees sank, killing at least 16 people a rug billionaire has dough neated the prideiest piece to the olympic museum in switzerland. he revealed himself as the mystery buyer of the original 1892 olympic manifesto which he bought that's more than eight times the estimated selling price. that's the news update scott, back downtown to you. sue, thank you. over to mike santoli for the market dashboard >> even with the market flattening out just a bit today, the big cap index are pretty up trend. the question is, whether the base hold? is the rally brought enough to really hold up this is the line that results from that, and you see how it's flattened out here in recent weeks as you've gotten higher in the index itself actually this relationship is much more dramatic in the nasdaq you would expect it might have compressed a bit more and come back down toward the recent lows, and it has not if you look at the other times when we were at a high, you were basically at a low that tends to be the way these two oscillate together what it says to me is there's a bit of a stubborn hedging instinct out there, and in and out all the mechanics are working in here to say yes, there's a confirmed high it doesn't say much about the longer term trend, but these are the things you're watching just to see if the underlying support for the market may be weakened. coming up. we have your last-chance trade and grasso is picking a name that's nearly 20% higher this year his call is straight ahead. up next alphabet started breaking out cloud revenue last week we will speak with google's cloud ceo after that day one of jay powell's testimony on capitol hill. treasury yields getting a slight boost today. "closing bell" will be right back myww's been an amazing journey. ...it's almost like a challenge everyday to see how well i can eat and still enjoy myself all day long. i wake up every morning to see how much weight i've lost and how much better i look. myww join for free and get three months free! before we talk about tax-s-audrey's expecting... new? -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. othroughout the country for the past twelve years, mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. alphabet broke out its cloud revenue for the first time last week giving investors a sense of how the cloud under measures up to competitors like amazon's aws and microsoft's azure. let's send it over to jon fortt, who is sitting down with the cloud ceo. that disclosure had a lot of people applauding. >> it sure did fresh off that disclosure and today you are at the goldman sachs technology and -- >> let's get right into some of those numbers. google cloud retches grew by more than $4 billion last year after growing last year than the year before. same time aws revenue grow ought a slower rate, so how do you catch a first mover that's moving that fast >> well, you know, we're focused on building differential products, expanding our sales force, expanding or distribution channels, very quickly, and we've been very pleased with the results, in addition to adding revenue, a backlog grew, we talked about that on the earnings call. we're seeing hue traction not to our direct sales for, but also to our partner network >> how do you seize it >> we're very confident that we're the largest growing cloud product. it was mentioned that our platform revenue grew significantly faster than the aggregate number, and we're very confident, because we're winning customers. >> amazon and microsoft disclose margins. why don't you? >> you know, that's a question for ruth and sindar. >> are you open to it? >> we're not saying we won't we're just getting towards that over a sequence of several months. you also at the goldman conference tacked about anthos, part of howard multicloud/hybrid strategy what numbers can you give for that >> we're seeing very good traction for customers, very strong growth in three segments, both in the u.s. and in europe, because they want to work across clouds in europe there's a concern about concentration risks, so they want port act second, independent software vendors and sas companies, they have to be across multiple clouds, and the third we're seeing strong growth in retail, for example, because people want to have the ability to run some workloads in their data centers and some in the clouds, so we're seeing good growth in all those different segments how will that show up as revenue. i think about multicloud, maybe they're using you, but also uses azure, also your aws, and you think if they're uses anthos over time, they'll just naturally start using more google cloud. >> it gives you the abled to manage it. we're physicals making machine learning tools available, so many companies that are using it are not just using it for raw compute, but as a portability layer, and capability, and we get value from that. >> i guess what i meant by that is, do you think you gain more share of wallet in the multicloud service, or is there in other way to be looking at it is it not just about infrastructure >> it's about share wallet and the material, you know, unit price that we get because of these value-added services like machine learning, security, monitoring that we add on top of anthos >> i want to ask you about a recent change happening at google eileen naughten is stepping down as hr chief, looking for a new one. you're growing fast, you say ire tripling the size of the sales force. what does your organization knee in a new chro? >> eileen has been an amazing partner to us. she's moving back east to new york to be with her family she's going to stay with us and help us find the right talent to support our growth as an organization and support all of alphabet we've been extraordinarily positive on the growth we are seeing and the ability to bring great talent from both within google, as well as from other parts of the industry. so we're very committed to that. >> all right thomas, thank you for being with us. >> thank you for having me. back to you. jon fortt, thank you coming up on the show, shares of education company chegg are up more than 500% over the past fast years the dow just turned positive again. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. ♪ ♪ ♪ ♪ ♪ ♪ ♪ 16 minutes to the close. >> so exciting when it gets to this point the last-chance trade. >> we haven't even hit the market zone. avis car, everyone has forgotten about the stock. it's not going to do, and i think the true testament in the last six days. they just actually named a new chairman that was the latest pop in it. but, the key is the new chairman that they named bought $15 million worth of stock at around $34. he wants to have his interests aligned with the company i'm a shareholder, i'm staying in the name and i like that action you do wonder about the future of a rental car company. >> they make their bread and butter outside the mileage of the uber does. two other three-day rentals that's the uber gait autonomous drive, you'll need fleets controlled by somebody who has more experience man rental car companies and it's a new angle that everyone has missed. >> sometimes you go away, you need to rent a care. >> unless you're a bad driver like me. >> by the way, the stock is up, what, 15% in a week? >> more than that, in the last six, seven days. >> nice last-chance trade. >> buy momentum. don't buy stuff that hasn't performed. up next, we're going to bring you uninterrupt the coverage of the final minutes of trade. >> have you been in the market zone >> have you been in the market zone >> bring a helmet. as a reminder, you can watch us live on the go on the cnbc app. "closing bell" will be right back [ fast-paced drumming ] [ fast-paced drumming ] ♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg. the music means we are now in the "closing bell" market zone we've been waiting for it all day. mike santoli is here to break down the crucial moments and we also have barbara durant here from bba partners as well boeing out with numbers for january. >> this is the weakest january for boeing zero new orders. if there's any good news nothing to write home about compared to airbus which delivered 31. the company does respect to resume deliver yes, sir of the boeing 737 max by mid years. when that happens, that is likely when we'll see an increase in the number of orders for boeing while boeing was shut out last month, airbus logged orders of 274 new commercial airplanes guys, back to you. bar ra, what do you think of boeing here? when you have zero in january for the first time in four decades, it's a big deal it is a big deal our expectations have been radio set. it's going to be a while, and i think the stock had a nice bounce, but i don't think there's a lot that will happen between now and the next few months >> we have some news on huawei eamon javers has the details. >> a significant story just posted by the "wall street journal" in the past couple minutes about new allegations by the united states, on the record this time, that huawei allowed back-door access to mobile phone communications around the world. this from the "wall street journal," saying the chinese telecommunications company, which the u.s. government has expressed concerns about in the past can convertly access mobile phone networks around the world through back doors designed for use by law enforcement the "wall street journal" reported just in the past couple minutes, they say that intelligence shows that huawei has had a excrete capability for more than a decade importantly they're also quoting the national security divorce on the record, robert o'brien, over at the white house, saying we have evidence that huawei has the capability to access personal information previously the united states had expressed concerns about huawei, but hadn't said specifically they could proffer this. now they're going a bit further. of course, this is a flash point in relations between washington and london after the brits decided they would allow huawei to have access to the 58g network if even in a limited capacity that the reportedly set off a heated conversation between president trump and prime minister boris johnson huawei, of course, denying the allegations. we will reach out to all parties if bring you more as soon as we have it, guys. >> sort of helps you understand why they've made them such a priority. >> the u.s. has been pointing the finger at huawei for years now, saying it's a potentially problem, now going further in early 4g equipment. this is fascinating, sara, when you put this alongside a major exclusive by "the washington post", just this morning, which exposed that for decades the cia had owned a major encryption company that was supposedly a private company. that compete was selling -- to some of the u.s. top adversaries. all of that reported as a front for the cia and you can see would you the u.s. might be concerned about another company potential doing something that the united states hog doing for years. >> eamon, thank you. eamon javers the. sprint and t-mobile crossing a major hurdle after a judge approved the merger. shares skyrocketing after the judge ruled the deal does not violate antitrust laws the merger is not official, but sprint stock is up 76.5% on pace for the best day ever. i guess it came as a real shot that that went through >> it definitely was not in the bag. we still had a 15% short interesting. that's the target in a merger. the original reason that happens is if you think it's make other break. it was not in the market they were going to get approval even as much as sprint it you will that still builds in a high likelihood that it will get priced down since it's gone down since the merger was struck. it's kind of interesting that you did have the springloaded situation that would go one way or another after the bell we'll get results from lyft. deird deirdre bosa has details >> they might be wondering if lyft can do the same. lyft of course has the more focused strategy, and ride sharing has shown some signs of rationalization versus the food delivery market, which uber has, but investors aren't so sure a focused strategy will be that long-term competitive advantage. back to you. >> deirdre, thank you. they upped the ante last week. >> they sure did i think all eyes will be on what they say and what they reported. although they did beat numbers dramatically the last time the last install, we don't see profitability under -- that is going to be very, very important. >> i mean, the stock is up 8%, so that makers the bar even perhaps higher on what they have to say after the bell. >> mike, you have more on the market internals >> i do. but today market actually looks okay, more than 2 to 1 positive. it's an interesting day. we've had kind of the favorite winning and field lagging for a while. microsoft is off 2% and the field is versus a bit of a bounce as you can see, that trade has been all about sticking with those winners. i also wanted to highlight the real estate sect orr etf it is not because of yields, but because of the cell phone tower reits. if you look at spca, crown castle, they're all up with the investment in 5g with the sprint/t-mo angle. gog to rick santelli. >> thanks, judge we've up two basis points. look at a month to date, high 165 and the close 151. you know what the average is in 158, for the trading session, moving off for a year to date. it's the fourth lowest close ever in bonds. 24-hour chart, we broke our six-day winning streak and bertha, it wasn't until 40 minutes ago that nasdaq even touched yesterday's session. >> nasdaq topping 9700 today we're off those highs. amazon a big reason why. if you look at amazon, it's a big reason why the last five years we've seen this climb and march towards 10,000 for the nasdaq it's the best performers are the megacaps the best sector has the chipping two of the best performers have been amd and -- today we've seen a bit of a pullback as an old theme from years ago rears its head ftc looking at antitrust, and some of the old deals that some of these big companies have made bo bob? >> looking to stay positive. the dow is fractionally negative a number of big industrial names, elsewhere goodgreer tire clobbered on coronavirus fears there's the closing bell the dow jones industrial average basically flood on the day, s&p closing up five, another record high there welcome to "closing bell." >> i'm scott wapner along with mike santoli. all we needed was a positive close for the s&p and the nasdaq, got them at record highs. the dow closing unchanged really it was kind of positive and negative back and forth just in the last few moments of trade. after it did touch a intraday all-time higher. there's the s&p 500, new record close for you in the s&p it's tenth record close so far this year. as for the nasdaq, 12th record close so far this year, and it's only february. it has lagged the other three pretty much all year long. it looks like it's closing up. to outperforming the rest of the averages we are moments away from lyft's quarterly results. we'll bring you those, as soon as they cross, highly anticipated. >> later google's head of human resources, former yahoo's ceo's dan rosensweig is coming up form. david kelly joins the conversation, jpmorgan asset management, cheever global strategist, barbara duran is still here first to you, mike what is the primary reason the market keeping going up every day >> i think the u.s. is viewed as a haven globally, more resilient growth our indexes are more about sec ullr, steady growth. today was kind of interesting, was the script did flip a bit. so i do think today you had the rest of the list like energy and banks just getting a bit of relief i do think we stay supported by those bigger, 240s flows and bigger trends, but have we just gotten too stretched in that relationship >> i was going to say the reason why the market was on display is he had a suit and wearing glasses, and talking to a bunch of people on the house financial services committee, not only him by the global central bankers around the world it doesn't seem to matter what you throw at the market, because the fed and central banks are here to play and here to stay. >> i think that's true all the liquid measures they are taking, and in fact we had that sell-off on the coronavirus he said a week ago, we all thought to really step in and use it as a buys opportunity i think it's telling you the power of not only or economy, whereas chairman powell pointed out today, 87% of our economy is domestic, but we really have the resilience >> david, do you agree with that, that this is a primarily fed-driven rally, even though jay powell didn't make much news today? >> i agree that's what's driving it, but i think it's important to figure out the mechanic tism. what is driving it is low rates are funneling cash toward the u.s. equity markets. investors have nowhere else to put it, but low rates are not causing a pickup in u.s. economic activity. we can see it slowing down in theu you know, the market is not responding to things like the coronavirus, and geopolitical issues, the issue with boeing. there's a lot of things dragging on the mint. with rates this low, that is funneling monies -- >> powell himself, david, on the hill said the u.s. economy was doing very well. he pointed out how resilient it was. >> but the -- and the pace -- but we are basically out of work it's actually shrinking this year by about 0.2 of a percent, and when we look at different things going on, investment spendings going down, the economy is in a good place, but it's not growing very fast i don't think earnings will grow that fast, either, we're not that -- you have nowhere else to go >> a fair point. let's get back to washington for the latest on the fkc's move to examine past acquisitions which ylan mui has for us. >> scott, the ftc wants to no more about big text deals. that were now previously reportered to regulators over the past decade. the ftc, of course won't say what deals it's focused on the tech company could be gobbling up nation competitors back over to you mike, as far as all the threats by the government, where does this one put it >> there's a reminder that they will still be shadowed by the sense that there's a lot of constituencies think they have too much power, you talk about unwinding past acquisitions amazon, get what, the market i wouldn't say the market was panics deirdre has the numbers. hey, sara, it is a beat on revenue. $1 billion versus 984 expected growth of about 54%. net loss is 20 cents less than expected you are seeing shares fall more than 3% in the afterhours. it may be baas lyft got a boost after uber moved up its timeline this is a focus on the call. also a beat on just to ebit dat loss and net loss. net loss 356 million versus 400 million expected guidance for q1 and full year, that looks decent, but big increases in insurance and general and administrative costs. i spoke to lyft's ceo brian roberts, and he says the entire industry is focused on profitability, and lyft doesn't need to do any additional restructuring that it recently announced. and they're evaluating the changes, i mentioned this, what the street wants to know is adjust the profitability roberts didn't say -- that he would be addressing that eastern time, and that may be why investors are selling off the stroke right now back to you. >> i have a feeling that if they were going to move it up maybe they would have slipped it into your conversation. who knows until we see the call. stock is down about 3.75%, so we'll have to see what happens there. >> obviously it had run into the number, the first quarter guidance basically on target i don't think there's much new to the story it is about what they say about market discipline, pricing and their expectations. >> it's so funny that everyone is so focused -- not funny, but different. it's still a company growing revenue 52%. you know, market a knew years ago that would have been just fine. >> it would have, but the difference being this is not a market that's so often that it scales can new growth. much. >> and growth at any he price is over on what these companies are trading for. >> what would it take to get barbara durant into the ridesharing stocks >> that's right. i think some path to profitability, as they like to say. no question that the ryesharing market is here to say. the question is how inelastic is the pricing? i think pretty inelastic, so it's a question of time. >> the other day dora was talking about pricing power and they could raise prices, we'll see in lyft can do the same. they know what everybody is focused on, right? revenue growth, rider growth, margins, profitability, and everything is kind of talk to the hand no one want to hear it anymore, but it is a test to see if demand is inelastic. >> david kelly, final word to you. big names in technology got knocked around on the ftc news what would you do with that group, which has been so popular and such a driver of this market >> well, i think you do have to look at the regulatory threat to tech i think the other thing is you just have to look at they companies one by one there would be winners, there will be losers i think it's important to look at it. particularly the market is overall high valuations. a few years ago it would be easier to make a broad bet now you have to be more selective, because the generals are pretty high. thank you both for joining us. up next, we've dive deeper into the lyft results. why one analyst says it doesn't have much leverage to pull chegg is up -- 86% of analysts say it's a buy still what the company is doing to drive growth in the education space. our dan rosensweig is coming up. would your advisor recognize you? at ameriprise, we see you as more than a client. that's why our advisors care about what's important to you. they offer personalized advice to help you prepare for what's expected and even what's not. giving you the freedom to live financially confident. because to us, you're more than just another face in the crowd. with the right financial advisor, life can be brilliant. ameriprise financial. (sensei) a live bookkeeper quickbooks for me.tomize (live bookkeeper) okay, you're all set up. (sensei) thanks! that was my business gi, this one's casual. (vo) get set up right with a live bookkeeper with intuit quickbooks. - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. welcome back let's talk about lyft. for more let's brent in dan from wedbush. >> my reaction, a knee-jerk, they're setting high standards i think to think it's a number in metrics that makes us more and more bullish and i continue to, in light of what uber did, opening may have moved that forward >> why doesn't that matter to you? >> it does i just continue to think they're conservative do not want to box themselves in just because of what uber did. if i look at the metrics and valuationses, it continues to be a top name to play in tech >> i assume you completely disagree with the hold rating and target of 50 >> yes i think i would say that heading into the break, expectations were higher of the lyft has always pulled forward to profitability, and now we don't see that in today ace range, as to whether it be -- and that remains to be seen also i don't see any inflection points we saw inflection points in uber we saw growth, we saw more users being added. in lyft, it's a continuation of what we saw. slowdown in revenue, less yours being added and a slow improvement towards profitability. so just a continuation so we don't see anything change right now. >> i'm surprised, dan, frankly that you would urge the viewers to buy on weakness without hear the call. >> part of why we've to ridesharing, eb-5 i believe is an 8 overhang d. the california legislation, so right off the bet, and as i look at the metrics, the knee jerk is down, and as i look at the call. i think thee held a quarter to a half expectations. >> how do they do that on the consumer side they're going to have to decrease some of that, and ultimately if you look at peak rideshare, that's the key in terms of the rev per rider. that continues to be the story >> you mean they need to spend less. >> they need to spend less on sales and marketing, but i think that's something as we get toward the end of the year, and that's going to continue to pay off -- >> i'm very worried with any internet consumer driven company that will use their sales -- -- if you look at the train and lyft has added 2 million users in q1, a million in q2, they have marketing spend and assuming that you get to -- and kind of the number of users they added so we haven't seen too many direct-to-consumers companies with less marketing spend on a sustainable basis. not over the prolonged period of time >> and the other piece of -- is that they can get better surprising what do you think the tolerance is >> bullish and ridesharing going into this year i continue to think of you especially domestically. , rev per rider, and some underlying metrics, and ultimately investors have spoken, but in terms of how -- uber and lyft, almost trade like synchronized swimmers, that they mean business when it couple times to profitability >> thank you to both lift and uberent the recent high high-profiles we have the details straight ahead. uber's hr is stepping down amid tensions. we'll talk about it with dan rosensweig "closing bell" will be right back do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. let's go back to mike santoli. >> last year, as we talked about, there were a bunch of unicorns on the market in the ipo spaces take a look at the performance this years, this is just year-to-date return number the s&p is up roughly 4% since the start of the year, the index up almost 12% lyft up more than 20% before today's pullback i think a good question is why some of these did well, but most of them have been comeback stories. i think it's a lot of kind of the run in tesla, run on some of the fang stocks, i think have people going through the muscle memories of people going through the next stock that could move fast there is a bit of late-cycle momentum action going on don't know if it was more than that or if a short squeeze but it's something to watch as to whether this group continues to perform. >> i'm trying to figure out if there's something distinct about each company and their earnings. >> it doesn't really seem that -- i do think that pinterest, lyft, uber, they have said things investors are willing to here. beyond meat is its own phenomenon. >> safe haven alt-meat trade >> right definitely a willingness to believe in these stocks. thanking you seema has a flash on bed bad and beyond. >> bed bath and beyond under pressure after preliminary guidance is released gross margess down 300 basis points, the company -- a high promotional activity, issues with inventory management, markdowns. and marketdowns have hurt the fourth quarter and the story traffic declines was there, but a positive shift in digital sales clearly the not not performs well, as we see the stock down 15%. back to you. >> appreciate it, seema. thanks almost 5 1/2% sideline in he comps. >> and it also shows the lack of visibility that this company has had, right you take the symptom in the aftermarket back to where it was, before it was kind of a new ceo. >> this was a new ceo in there, but, you know, obviously not happened in the short term up next, dan rosensweig is today's closer he'll talk about the possible derail of the rally. and we'll be joined by irwin simon. when it comes to your customers' expectations, there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪ here a check on the closing bell the dow jones industrial average basically flat, s&p, nasdaq setting new records. microsoft reacting they're going to look at a number of big-tech deals and there's near staple stock. here's what's happening this hour switzerland is investigating a report that a swiss agency helped crypto, which was owned by the -- sold code-making equipment to the likes of iran, argentina, india and pakistan, then used that technology to read their secure messages. house republicans blasting house democrats for not submitting a proposal. >> they have trouble with turnout in iowa. they had trouble with temper tantrums during the state of the union. i think the number one responsibility of the majority is to plan for the future. once again, no budget. house speaker nancy pelosi paying off a super bowl bet. she, of course is a san francisco 49ers fans, made a friendly wager with emanuel cleaver from missouri. he gave her a basket of call cal goodies. she also put on a red-and-yellow scarf to show her precious for the super bowl wins chiefs you are up to date sara, back downtown to i don't you. >> sue, thanks the ftc is turning up the heat on big tech, the agency announcing it would christmas prior acquisitions, ordering those companies to turn over information about the scope over the last decade. joining us is dan rosen did not sweig. just on this fcc story, the agency wants to deepen its united states of acquisitions. what are they going to find? it's going to be liven, most people don't understand when you're a public company, you don't always need to report an acquisition you made depending on its level of what they determine as materiality if you're a giant company, can you swallow up big companies, you simply has to file something that says how much money you spent. we don't know all the different companies. but it is an unfair advantage. the larger you are, the bigger you can buy things you can do it to prevent competition, so it will be interesting to see what they find i think they see companies may have hundreds if not thousands of companies we never here about. >> we're showing bottom of the screen former ceo. now you're a smaller company, so you think there's merit to the foment tc looking into all of these deals as still a big tech player out in the valley >> well, they weren't big tech players when i was at yahoo, and they've become big tech players. what i'm saying is i don't see any reason why they shouldn't be transparent about what they do i don't think there's anything bad about being transparent. so for our company, when we buy something, materiality is a very small number because of the size of our company and our revenue so i do think that these are things that were never plated when they laws were written. whoever imagined we would be seeing multiple trillion dollar companies. i think it's healthy to understand what's tog to be disclosed and what shouldn't they haven't done anything wrong, it's just what the rules allowed, and we should ask the question if it's the right rule anymore. >> for someone like you who competes for top talent, intellectual property, what could the arndt competitive behavior be? >> you know the ones you hear about. they want to examine the large companies. if you take a company like instagram, you know, for a billion dollars, which is what facebook paid, materiality level is so small they probably didn't have to disclose it if they didn't want to i think we'll find technology, maybe things in a.i., machine learning there's lots of things we may find that would be interesting to know that these companies have but as a competitor, you want to know what it is theft advantages over that's the whole point of transparency and disclosure. >> let's focus on che good g for a moment it looked like good earnings your guide was above what the street was looking for, but your stock got hammered today what's up with that? >> that's a good question. we did have a fantastic 2019, we raised our guidance go for 2020. our stock has appreciated probably 40, 45% in the last three months, so you get a lot of people who made money, they clear out. what that leads to is the larger investors can buy on the dip the enormity of what we're working on continues to review itselves up but the business itself is doing phenomenally well. >> you still have a fairly large short interest, though there are still people out there betting against you. >> that's part of the fun of life, right? what we pay attention to is execution. more importantly, the enormity of the business, the role that we play in the education marketplace. i think we had the highest subscriber growth of 32% our margins continue to get higher there's always people who bet with you, bet against you, and that's the public market we just continue to execute. i think the people that have been with us have been rewarded significantly more than the people who bet against us. it's been a big surprise story the materials would be, what, a 30% grower that's a great question the we do i don't think line textbookses, but the core is onalong homework help. we even gave the engagement numbers of over 2 million pieces of content viewed every day. so we have continued huge opportunities alone. we're starting to make great headway, and there's global growth the difference between chegg and netflix or other companies that are global in subscriptions is the fact that in the big countries, the content is the same so our ability to grow internationally is much less expensive and much easier to do. that's why you saw the acsell xwrated subscription growth rate we don't really see an end to the cycle anywhere in the near future we continue to see newish and bigger and better opportunities. the other one of the part is it's extraordinarily profitable. >> thanks for joining us. >> thank you, and welcome back. >> thank you very much good to be back. >> we're all happen to have her back up next, when it comes to ad spending his name is not bloomberg. find out who it is and whether it will help him at the voting booth today. tom steyer is spending more on ads in new hampshire than all of his rivals combined robert frank joins us altogether spending nearly 50 million leading up to today's primary. over $19 million into just tv ads, and nearby bernie sanders comes in a distant second, followed by pete buttigieg and joe biden only spending around $300,000. i think he already left. state. satire also leads on digital so, you know, unclear right now, he's polling fifth or sixth. there's a benefit of a backlash. this will be either his gateway or his waterloo. >> so crazy that there's two billionaires in this contest between satire and bloomberg bloomberg has purchased now boston ads tend to bleed over to the new hampshire broadcast market, so the only two ads are the two billionaire candidates, one of whom is not even on the ballot already people are writing in mike bloomberg on the ticket but it is crazy in the democratic party leaning left. >> all right robert, thank you. cannabis stocks have gotten crushed in recent months up next irwin simon is here to discuss the problem and when we could see a turnaround there woman: what does the word "partner" really mean? someone i can trust. (impact, click) who is with me for the long-term. who understands i'm dealing with lives, not only livelihoods. that in order to help people, i need more than products, i need quality support and insights. can i find someone who partners with me to achieve people's long-term success? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant at outback, steak & lobster oh no! it's gone! phew! it's back, with lobster mac & cheese. it's gone again! it's back, with shrimp now! steak & lobster starting at only $16.99. hurry in before these three are gone again. outback steakhouse. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. pot stocks are up in smoke the last year. afria is coming in as the best of the worst, though joining us now for more on a cnbc exclusive is irwin simon. what happened to this group? as they say, things go up in smoke and things cup back down i think, as you go back and look at the cannabis stocks, they went up pretty high, and realization came into effect in regards to making money. i don't think there was a thought process how we were going to make money. there was over 200 licenses given out and every company was just losing more and more money. you know, listening being in the consumers world, it's a great category, a agree industry, but you know, you have an ebit dad on and i don't know how that math works a year from today a lot of these companies will not be around. >> the industry used to be about who can get the right press release out. it's about organic growth and rewarding investors. >> whether i got to afria just a year ago, it was in a similar situation, we were running out of cash. we have ought this is assets, hostile takeover, a short report today we're sitting at over $600 million in cash, we're profitable, we have a good future but the whole thing is the industry itself. canada was great for legalization, but ontario has 27 stores there's 15 million people in ontario. quebec got 28 stores, and you take them together that's the biggest percentage you know, there's got to be more -- the demand is unbelievable you walk by these stores, there's lines around the corner. you can't buy it online yet. you can buy some in alberta. the demand for vapes, right now we're selling everything we can make in regards to that. i spent time in europe the demand for medical cannabis in europe is tremendous. the research and development out there regards to cannabis for pain, you know, for sleep apnea, for anxiety, in regard for epilepsy, there's so many opportunities, i think a big future is cannabis in the different strains. >> when you say that some won't be here, or they're just going to lose cash >> i think, again, you can't raise money out there today, so number one, prior to this, anybody that had a plan on a piece of pay, those days are over, number one, number two is this here, you know, in regards to companies today in licenses, you know, the canadian government gave out over 200 licenses the small guys just don't have the scale do survive out there they do come back and look at most of these cannabis companies, some of them have got six months of cash left to live, and you go back and the biggest guys, canopy, how much comes in and where their cash situation is today there's got to be some consolidation like any industry, on the other hand do you need more grow in canada? i think everybody thought legalization is going to happen in the u.s. in 2020, that's trump's ticket to win. legalization is not happening here, and, you know, the big opportunity for afhria is the gnp certification, is there an opportunity for you to go into the retail aspect? and ultimately what i want to build is a consumer packaged goods company that ultimately cannabis and edibles are part of a food supply. >> did you give up in the u.s. entire entirely? >> listen there's nothing for eternity i think new york will go legal shortly, state by state, but from a federal standpoint is u.s. coming legal? no will u.s. become potentially legal from a medical standpoint? yes. that's when we'll do it. but you know, it would be state by state by state. it's not going to be a federal legalization out there listen, the wheel thing with cap pit and acreage, in regards to what they did in that deal there's a lot of learning now. as i said before, it was about who could get the first press release out there. you know, most founders in this industry are gone. >> it sounds like you need good corporate governance in this industry. >> you're right. i changed up our board i got a great independent board. corporate governance is important out there. at the end of april last year, there was $40 billion lost in stocks just in the cannabis industry. >> it's been brutal. thank you for the update. >> but you can't give up on it cannabis will be a big part of our lives. >> know when the drinks are coming. >> the drinks should be out very, very shortly should be out by april of this year and big opportunity and edibles will be big. cbd pills. >> erren simon oapia >> look how the stock market rally could impact the rally could impact the presidentialur smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. don't get mad get e*trade and start trading we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. ♪ [ fast-paced drumming ] all right welcome back to "closing bell. lets get another check of shares of bed bath and beyond hitting the lows down. call it 20% following warning on sales, comps down, traffic down. big time pressure in knows areas. gross margin as well and those stocks likely to be ugly tomorrow as well. >> final dashboard of the day, mike. >> told by some folks maybe this wasn't a theme on new hampshire and primaries but come back to bill clinton in 1992 after winning the new hampshire primary and did defeat a one-term republican. so comeback kids could describe the way americans are feeling based on their own finances. the chart plots that compact answer to ronald reagan's question in 1980, are you better today than last year he asked four years ago. but this is asking if you're better this year than last year. what you see is a record high for the series .only time we were close to this is 59% was 1999, 2000 or so at the end of the other long expansion. it's a function of the length of expansion as you would imagine as unemployment goes down. normally in a normal political environment this would bode well for the incumbent. wall street seems confident that president trump's re-election prospect went up but 199, 2000 election was basically a tie. and the incumbent party did not end up with the presidency hard to know but good news nonetheless however it plays politically. >> good news for president trump. >> and americans feeling this way. yes. >> samsung's folding phone failed the first time. remember when wilfred broke it find out whether the new version is a game changer. another check on shares of lyft trading after hours lower a tt me than 4%ing a as the conference call gets under way we'll be right back. alexa, tell me about neptune's sorrow. it's a masterstroke of heartache and redemption. the lexus nx. modern utility for modern obstacles. lease the 2020 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer. lease the 2020 nx 300 for $359 a month for 36 months. when yowhat do you see?itical issues facing our world, we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. (vo) in every trip, there's room for more than just the business you came for. ♪ this wave is rolling, let's get going ♪ ♪ we got places to be ♪ hey-ey-ey (vo) whether that's taking in every moment... ♪ ...or capturing a moment worth bringing back. that's room for possibility. ♪ let's see how far we can go, oh oh ♪ ♪ oh oh oh we're back samsung hosting the unpacked event in san francisco where it unveiled several new products, including a new foldable phone josh lipton was there and joins us with highlights. >> we are at samsung's big show in san francisco the star of the show today was this the new folding phone. called the galaxy z. flip. a 4.2 inch device with a 6.7 inch glass display a small form factor and starts at $1,380. the release date is february 14th available from at&t, sprint, best buy and samsung two colors, mirror purple and miles an hour are black. tech analysts are excited about the form factor and design they think it could find interest from consumers. not to say they think there is immediate attraction with the mass market adapgs at first early adapt esper people wanting latest and greatest but they think it could impact the smartphone focus and will competition at first going head to head with other companies. but other big smartphone vendors will have to hop in if they want to stay competitive, guys. >> we're asking you, josh where the apple samsung match is right now? who is winning share >> well, listen, in terms of market share samsung is dominant look being at 2019 they are into the market share by that metric. samsung holds 22% share according to idc pmt they face competition from huawei. they saw the share surge in 2019 and also feeling other than chinese vendors competing with samsung in the emerging markets. but a lot of folks believe 5g could be a tailwind for the smartphone industry. samsung is telling you today they intend to be a leader in 5g and could also help average selling prices, guys. >> appreciate it, josh thank you. this does it for "closing bell." >> have a good evening "fast money" begins right now. yes, does sara and scott thank you. live from the nasdaq market site this is "fast money. i'm brian sullivan in for you again. traders on the desk are tim seymour, karen finerman, dan nathan and guy adami tonight the maga trade trumping nearly every other one out there, microsoft, amazon google and apple adding more than a half trillion dollar in market cap but it faltered a bit today. can they keep up the momentum? plus don't call it a comeback. bitcoin above

Related Keywords

New York , United States , New Hampshire , Missouri , Iran , Argentina , Washington , China , Canada , Quebec , London , City Of , United Kingdom , Pakistan , San Francisco , California , India , Iowa , Capitol Hill , District Of Columbia , Switzerland , Americans , Swiss , Irwin Simon , Joe Biden , Ronald Reagan , June Steve , Michael Bloomberg , Fred Moffett , Dan Rosen , David Kelly , Tom Steyer , Edward Jones , Barbara Duran , Jerome Powell , Baas Lyft , Rick Santelli , Cara Swisher , Craig Moffett , Bell Mike , Brian Sullivan , Jay Powell ,