Hell tell you why, he debates whether hes rights. Heb it was amazon, it might have been apple too, netflix, apple is hitting an alltime high. 156 a share. Well have those details coming up. And then a rare interview, she was the first woman to head a Hollywood Studio back in the day, not too long ago. Sherry lansing will join us. There is a new buy biography about her i cant wait to talk with her on what shed do today. We have mothers day this weekend, may be a welltimed placism of the book, maybe a good gift. I see youre selling the book now okay. I just realized that would make sense. Yeah. Well ask her about that. We do start with retail which is struggling so much. Its jp penny getting hit hard after reporting disappointing numbers this morning. We also have the retail report from the government this week. Courtney reagan joins us with more. Its very hard in terms of the Department Stores. The numbers are down 20 this week. The numbers are bad. Exactly. I think one of the best performers is kohls and its down 9 this week. We know the Department Stores are in this decline. Folks aernts going for destination of shopping whether in store on online in the past. Theyre closing stores, trying to shrink in order to grow. Theyre Getting Better at their management why you saw some bottom line beats but its the sale thats weak and thats worrisome. Next week we have warm, tarpg and home depot thats the little different. What were hearing from the Department Stores does not necessarily reflect the sale of the consumers. Consumers are hale and they have the ability to spent theyre just not going to jc penny and nordstrom like they did. Steve we got the numbers this morning, obviously online they did well but what about elsewhere. Is i just a Department Store issue right now . Its in part. I think the number is good, we were looking for 05, we got. 04 and well take it. Those two months were part of the reasons why you had weak growth in the First Quarter. Now you have this april number that help explain and jurn pin the idea the Second Quarter is going to have a nice gdp rebound. I want to underscore what courtney just said, you do have better job growth and wages rising, theres no reason the consumer cant be spending. Theyre spending somewhere according to this data just maybe not at the expense that poor courtneys covering. Yeah thats for sure. We got to go. Thank you courtney reagan, Steve Liesman talking retail. We do have breaking news this afternoon, there are reports of massive ransom wear attacks sweeping across asia. We had hospitals in britain turning some people away. The attack used so much leech tool that was developed by the n surgical a. Joining us on the phone, Nicole Pearl Roth rote this story for first time. Now were learning the person trarts are using tool that is may have come from the n s a leeks a couple months ago right . Thats right. It was described tom by Security Experts the red attack. And basically whats happening is weve seen a couple cases over the last must months of ransom ware, mal ware that takes over your data until you pay a ransom. Pop up in a few hospitals and even in a hotel in austria i believe. So this is the first situation where spreading across the globe. Its 12 countries, hitting hospitals in the u. K. , and part of the way it was able to spread inside these organizations was through a particular flaw in microsofts window servers, that was part of the nsa tool kit that was leak ed last month. They patched the vulnerability before it was dumped online by hackers calling themselves shadow brokers, but they are not completely ruled out. Nicole, theres a couple major questions thats raised. One, how vulnerable are other key parts of structure, and, one, why would someone target these particular systems . One thing if a hacker wants to prove abilities by going after some high profile target like a bank or retailer, but hospitals put iting lives at risk . Thats nefarious. Is that a differing attack than seen with smaller attacks in hollywood, for example. Annoying. Caller yep. This is hospitals hostage for 300 body coin ransom, but tactics used are spraying prey. Hitting none vulnerable. Doesnt matter who you are, and if you are vulnerable, they tack advantage. Its not just hitting small hospitals, but banks are affected, and Telecommunication Companies in russia and spain. They are not discriminant here, just hitting anyone they can. Answering my question, especially the fedex part, but u. S. Companies have been put on notice here. I wonder if they think Hospital Companies in the u. S. Are vulnerable right now. Now that fedex has been hit . Caller yeah, its unclear who is most vulnerable. We are seeing reports of attacks here in the u. S. , only confirmed company is fedex. Hospitals are waking up to the threat over the last several months, los angeles was hit last year, so they have been trying to upgrade systems, but Health Care Companies, small mom and pop shops tend not to update as quick as a bank or Government Agency would leaving people vulnerable. Like many companies, they are experiencing interference, regret inconvenience to the customers. Nicole, what did experts say to do . Pay the ransom and alert authorities . Caller alert the authorities, roll out updates. Some say you can unplug servers as a quick work around for now, but, yeah, dont pay the bitcoin ransom. Although, certainly, im sure some of the victims will do that. I have not confirmed organizations that paid up yet, but best thing to do is contract a security vendor to remediate this quick alz possible. If you are not afghanistaned, make sure you have someone on staff or check with someone who can see whether you rolled out updates that patch the systems vulnerability, and, finally, this attack is starting with a malicious email attachment, so reminding employees not to click on links or attachments that are suspicious is most important here. Before you go, the malware was included in an online april dump from a group called shadow brokers. Were not saying theyre responsible for this today, right . Any idea who it is . Caller no idea. Once released hacking tools online in april, any cyber criminal picks them up and define ransom ware to commit the attack. Makes attribute to who is doing this difficult. Ransom ware is something you can buy off the dark web in the underground, and when you combine when whats dumped online, that creates something very powerful. Nicole, if they have not upgraded, does that care for the problem . Exactly. Roll ourt yot the updates, particularly microsoft. It came out in march. You it two months now. Ask your i. T. Guys to make sure its been unrolled. Best defense. Nicole, thank you. Well cover the story and bring you updates as we get them on the massive attack on Health Care Companies in europe and asia. Closing Bell Exchange this morning, dow down 32 points right now. Alpine funds joining us, Meridian Partners next to us here at post nine, and Rick Santelli at the cne in chicago, so, john, first decline for the dow week over week in a month. Nasdaq is higher thanks to the apples and amazons of the world now. Whats going on in the market right 19now . Look, a good runup in the market. We are up 2. 5 , and the last two weeks, stuck in a range. Weve all been programmed to really watch whats going on in washington. We continually get economic data, get these reports, but headlines from washington is whats occurring and whats giving Investors Sentiment and confidence or reason to pullback. Ten days, trumps budget numbers come out on the 22 nnd and g7, those political movements is going to determine whether investors stay on the sidelines or continue to get back in. Sarah, retail slump took focus this week, but the Inflation Numbers this morning interesting. The Consumer Price index was soft. Then Inflation Expectations in the Michigan Survey come in and tie for a record low. Does that give you pause . Any opportunities born from that or just a cautionary sign in general for investors . Well, i think from a standpoint of Interest Rates, a lower expected inflation rate probably means that maybe the fed doesnt raise quite as quickly, and you saw comments about that today where the idea that maybe inflation is not moving as quickly, dont need to move rates so much, and so, therefore, you have, for us, because we like dividend stocks, helps for Interest Rates and dividends because dividend stocks get hurt with higher rates or expectations of higher rates. I think those are the kind of places where on the margin the difference in the cpi matters. And, rick, just to your thought on this this week. What was the highlight, key moment for you . I mean, those soft treasury auctions, what was going on that got your attention . Well, i mean, you know, the end of democracy as we know it. Comey was fired. Amazing how well the market held up, especially nasdaq, shocking. Interest rates down a couple basis points, basically one or two basis points all along the curve no matter where you look. On the day, the moves were bigger. Sarah nailed it. We have what looked like a little bit scary ppi that really did not play out in cpi. Its not that inflations moderated a lot, but just didnt move ahead on the cti like ppi. Slow and steady whether its the economy or inflation. The auctions, really, we dent get the data yesterday that was hotter than expected, but all in all, the auctions started with the threeyear on tuesday, and tuesday and wednesday, those auctions were not well. Yesterdays 30year, of course, after that, and that was not very well received either. I do think that there was a bits of covering going on. I think there was some longs in the space after the fed meeting and employment report that basically were pushed from the market. I look up, i see e quill lib yum again. If youre a broker, thats the last word you want to hear, but a lot more of the same until we get to the next fed meeting and jobs report. All right. We got to go at this point, crowded out by breaking news from overseas, but, thank you, all, for joining us with thoughts on todays market action. Have a good weekend. 45 minutes to go, dowdown 36 points, familiar picture here, bill. In the last three sessions, 45 seconds to go, dow is down. See what happens today before the close, but the s ps down five. The russells down seven, and nasdaq has a twopoint gain. Mark cuban thinks amazon is undervalued with amazon at alltime highs, is he right . That debate coming up. Whether its connecting one of the worlds most innovative campuses. Or bringing wifi to 65,000 fans. Businesses count on communication, and communication counts on centurylink. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. A used car,. 95, you can trade with a clear advantage. Welcome back. More breaking news. This is on boeing. Phil . Kelly, as we speak, the boeing 737 max suspended in terms ever further flights a couple days ago, it is back in the air. The first flights since they had a chance to look at the potential issue with the leaf 1b engines as certified, but been approved to be back in the air, so, again, boeing resuming flights of the 737 max two days after being suspended. Back to you. All right, phil, thank you very much. That was quick. Yeah. They were worried that that was to be released next week. Amazon, as we all know, is the a in the faang acronym. Stocks continuing runs near alltime highs year to date. Facebook up 30 , amazon up 28 , netflix up 2 the 9 , and alphabet, parent of google, up by 20 . Last night ob on fast money, mark cuban shared his thoughts. So undervalued. You dont understand however big you think deep learning and neuronetworks, however you calls it, its going to be bigger. You dont understand. I mean, it is the things that youre able to do in terms of optimization that youve never been able to do before, its incredible. My Biggest Holding is amazon, and its the ultimate a. I. Company. Its the ultimate startup doing it better than anybody. Theres a lot of love for amazon these days. What are risks to investing in that ultimate startup . Joining us now is mike olson, and ed lee here at post nine with us from recode. Ed, starting with you. Listen, hard to find bears on amazon. We appreciate your willingness to play the role. Playing the bear for a minute, ill play a long for a minute. So much love for the company now. You find it, you know, people want to be in it, feel like they missed out, cant do anything now, but what are the risks to consider here . Well, so, yeah, playing along, its worth looking at the risk factors. I still love the company. Its really wellmanaged company, however, a lot really, really rests on jeff bezos himself, engineering the vision for the company as he should be doing, but, you know, its unclear just how much management infrastructure hes really created at the company. Its unclear how the companys really, really run on a daytoday basis, and, you know, hes putting structures in place, but he decides to take a holiday, decides hes more interested in blue origin, own personal venture, who knows what happens to the stock. Had trades lofty on valuations, on the multiples, right, and unlike apple, trading 15 forward earnings and amazon is 84 forward earnings. Theres more upside, i think, but at the same time, theres a big question mark of management, is it really just him . Are there Good Management structures in place . All these other portfolio businesses, aws versus the Delivery System and more. A lot to manage. The stock price at alltime highs. We all know the story. A disruptor this year, especially, already in the stock . I dont think so. I cant think of a company that has this size that has as many as low penetration they are addressing. Think about the ecommerce, only 5 kt of the u. S. Market is covered by amazon at this point as far as retail sales. Think about grocery or retail or furniture, other areas they go into adding up to additional hundreds of billions of dollars in total adjustability market, not including Cloud Computing with aws. I think theres a lot to go here. Mike, what do you mean only 5 in covered by amazon . When you look at overall u. S. Retail sales, if you think about online sales as only a fraction of that, so its, you know, 1015 of overall retail sales, and amazons a fraction of that. Its in the single digits, so theres a long ways to go for retail sales for amazon, and then, again, that doesnt even look at all the other areas that are just other options for growth for the business. I think theres still challenges with retail. Which is they are great at commodity goods and hard to find items, absolutely. I use it all the time as does my family, but things like fashion, retail, clothing, which they are trying to get into, has better margins generally. If they are having a hard time cracking that, right . Thats going to be a big challenge for them going forward. I dont think thats something that sells as easily online as other items. Do i buy this because of the retail side or buy for the cloud . Buy it for the cloud. Aws is the growing business, and, you know, at the same time, why invest in this other part. Hes created a portfolio, a Portfolio Company thats a a smart way to go ahead, and its weird, lumpy, and different businesses have different growth metrics and challenges on its own, so going forward, we have to see how it goes. Amazon might be a small share of the retail sales, but its one. Largest companies in terms of the value in the country, and in the world, so do you think it can double or triple in size from here for people who want to invest in amazon today and want to see a lot more of runway ahead . We think it can. I mean depends on the time frame, but looking out, and i would echo some of the things that cuban said, all the data that they are collect iing put them in a ve velocity done, and on the data side, they just have so much data and they collect more and more ka that talking to alexa every day. Theres room to go on that front as well. All right. Mike alson, our bull, ed lee, or sort of risk observer. Thank you, both. It is a busy friday. A news alert on welts fargo now. Whats going on . Tell me about it. Heres what we got. Wells fargo, attorneys for the alleged victims of that wells fargo fake account scandal are now alleging the bank may have been responsible for more unauthorized accounts than previously thought. Now . The plaintiff attorneys in a legal filing saying in that class action lawsuit, say that theyre estimating the number of unauthorized accounts is maybe closer to 3. 5 million, about 1. 4 million more than before. The period they now go back to is 20022007 to estimate beginnings of it. Important to note here based on result of the independent board review of the scandal, former ceo john stumpf was not made aware of the nature of the banks sales practices until 2012, but was first aware of the specific case, one specific case as early as 2002. Wells fargo issued a statement on the matter say, the unauthorized account number reported in yesterdays filings are estimates made by plaintiffs attorneys based on a hypothetical scenario, not verified, and number of unauthorized accounts estimated in the filing do not reflect actual up authorize the accounts. Wells fargo guys remember previously had disclosed they were in a settlement process in the regulatory filings. In the filing, bill, kelly, estimated it at 100 million plus, that was the estimate. Again, latest details here, bringing you more as we know more. Guys . All right, dom, thank you. Stock down 1. 5 right now. See you later. 35 minutes left, dow down 32 points as we head towards the close. Major stock index on the other side of the world hitting a 17year high in part thanks to apple. Telling you about that next. Apple halo grows. Also head, excited to meet Sherry Lansing, first woman to run a Hol