Street, the trading perspective. Roger from the economic perspective. Well bring you the results as soon as they are released. Kate kelly is standing by with all of that. How about twilio soaring on its debut. Its just under 28. Granted thats not saying much. But a hello they debut here for twill owe. Well discuss whether it could spark a new rush. Wow, did they leave money on the table. I dont know. In this climate . Priced above the range. Its the indication. Its a Business People can understand and theyll like. We will see. Lets start with our full Team Coverage of the historic brexit vote. Everybodys in london this week. Wilfred frost has the latest numbers for us. Kayla tausche also and sara ice never. The betting has moved. We were as long as 7 1 for an exit. Its now 5 1, implied probability expecting to remain, 83 . But a slight improvement. They havent had any polls for quite some time. Now its 4846, leave. What does the next few hours hold for us . As you said, polls close 5 00 p. M. Eastern time. We do not get official polls. Thats when we ask people when they come out of the polling stations how they just voted. Thats not happening. Within a half hour we get that. We get a telephone poll of people just at home from the company. Youve got all eyes, of course, on that, but having spoken to a number of pollsters, theyre not saying theyre confident it would be treated as much as an exit poll would typically, so we will have to wait until the early hours. All polls are being cared out. We dont know who those clients are. Well, wed love to get our hands on the numbers too. Stay right there, will. Kayla, what about impacts from the banks on the brexit vote tonight . Reporter well, because we wont be getting outcome of the vote until the wee hours of the morning, kelly, you can bet every bank here in the Financial Center of london, banks are staying open around the clock. There are jokes about people sleeping under their desks today. The Foreign Exchange market has been a primary sour of activity depending on which way participants in the market see this vote going. Some banks have even sent letters to institutional clients warning them activity levels will be far from over. Goldman sachs, according to our kate kellys reporting is not allowing them at all. Citigroup is putting limits of 10 million on those orders and barclays, rather, is not allowing those orders to be made unless theyre made over the phone. Merrill lynch is said to be putting some similar restrekzing in place as well. One Senior Executive told me that volatility gets even worse when the machines are in charge and the only way to keep that from happening is to turn the machines off. He gave me instances like the 2010 flash crash, the 2011 u. S. Debt downgrade and even the unpegging of the swiss franc last winter. They want to make very sure, guys, they dont get caught flatfooted this time around. Unplugging the machines, i love that. That will be interesting. Lets go to sara eisner. You found a place where people are exchanging currencies. Whats going on there . Absolutely. Were finding it all over the streets of london which is in direct contrast to the markets where people are buying sterling. It ee been one of the most stunning moves. Theyre reaching highs we havent seen since december. Up 3 in a week. Thats a giant move reflecting the optimism that britain does vote to stay, but, yes, on the streets, very interesting to see lines outside of some of these currency exchanges. They pop up all over the place in london. We talked to a number of them. One of them thomas skpanchs reporting a 40 surge in terms of activities from last week. Whats happening is people are going in and skparjing their british pounds. When we talk to some of these folks, they say, a, because theres panic. They use that word, not me. Not so much somethings going to happen in terms of a crisis but more in terms of a warning. If they vote to leave, it could plummet. Many have got their trips lined up to go to europe. One of the warnings from the Prime Minister is that your holidays will cost more. In fact, he put a figure on that. He said your holidays to europe will cost 340 more if britain votes to leave because of the 12 plunge. He got criticism for scare mongering, but clearly the british people are thinking that way and that are hedging their bets. Obviously the british pounds will be the first place you want to check. Its interesting theyre buying every pound that theyre selling. Its interesting. If you look at the performance of the ftse and dax in germany, theyre up 5 , 6 . The banks in europe are up almost 10 this week. I mean if this thing it could be wee hours before we even know, it could be that close, right . Weve really positioned for a remain vote. We certainly have. We were discussing this with Stephanie Flanders whos the head european strategist this morning. Even if the vote is incredibly close, 50. 1 remain, one we get that result markets would move in the same way if the vote ended up being 70 30. Thats whats happened as we got closer to the outcome. Even if its very, very close, of course it would be. Votes like this behind us would be exactly the same. The votes itself would be very close. The polls are the closest way to tell what the vote is likely to be. 4846 on the Financial Times polls of polls. Thats whats going to be interesting between 5 00 and 5 30 when we get this ug. Gov poll. Meanwhile ive heard that many hotel rooms if not all of them are already taken up by the banks and the brokers to put their traders there overnight to give them a place to rest while they wait for results and take advantage of this opportunity. That is true, as someone who tried to book one of those hotels in canary wharf, bill. We experienced it firsthand. Its unclear whether the Trading Volume itself will be more because theyre eliminating some of this ail go rhythmic trading. I had one banker tell me that they will be prioritizing on the affect side, the Foreign Exchange side. Theyll be prioritizing Big Companies who need to Exchange Money before institutional hedge funds or individuals who want to Exchange Money. So its unclear exactly how much activity humans will be able to process in the wee hours of the morning and thats what were waiting to see. I guess the only thing i would say is for those folks waiting, they might be doing it at a strong point here, right . Again f that currency weakens on the news or if theres some kind of surprise, you know, it wouldnt buy them as many euros or dollars. Absolutely. Even if there is a remain vote, how much of that has been priced in already to this point . Were talking about levels we havent seen in months. It was leading up to speculators. So short. I think it was two weeks ago there was a 6 billion bet against this currency. What we have seen in the last week or so is a short squeeze, people covering those positions and getting on the other side of it, which is why these moves have been so exaggerate, which is why to kaylas point tonight, we could see that. But perhaps not see a big relief rally. I would point to reuters saying european stolks might be a sell if they vote to remain in because so much has been priced in at this point. What would you say, will . To kaylas previous points about how they may have come in early passing sources in the city in london, everyones coming in. They dont open up till 8 00 a. M. Local time. Bond trards will be in by about 4 00, im told, to make sure theyre ready for that. Currency markets are open. Currency traders will be in ready for the results as they come. All right. Rest up, guys. Its their election night, but were feeling it too. Were here. I know. Yes, we will. Youre doing a great job, everybody. See you later. Lets get to closing bell and kick this around. We welcome arthur cashin. Hes at the post 9 at the big board. Heather hughes. Regional Vice President of federal funds. And Rick Santelli joins us. Its clear it seems to be positioning itself that uk is going to remain. What happens if they go in the other direction or if they dont . As jeff gunlach has said, they think about selling if they do remain here. Its not a vinery event at all. If they vote to remain and vote heavily to remain, that justifies this rally, and i dont know where they go from here. If they vote to exit, that would be a major surprise, and youd see an undoing of what we saw today and earlier in the week. I also feel if its very close, it will be a problem because it may not go away. It may fester there and the people who fiduciary for the exit may wiped up pushing it in six months. So the market is going to po potentially be very volatile. A lot of people have not prepositioned for it because they were afraid to hold big positions. Volatility right around the corner. What are you telling them and how concerned are they . Yeah. I think that nobody wants to hear that, but were really sitting on the sidelines right now. Cash levels are at alltime highs across the board and Many Asset Management Companies the highest since 2001 and weve built up those levels including brexit. So regardless of if brexit stays in the eu or not, if that vote is closed, scotland might come back into play or other countries follow suit. I do not think this issue will go away any time soon, so im not a betting man, but, look, the markets are saying based on the rally were getting and the s p and dow and nasdaq, theyre saying, look, theyll remain in the eu. If that does not happen, all bets are off, the market will most likely decline and they head to record lows. Not seen since july 2012. Diana, i know youre not a fan of the eu overseeing the uk. Youd rather they vote out to leave, but how do you then explain the markets and how theyve been trading when it seems as though they would remain, you get a rally in the equities. When it seems theyre leaving, it goes in the other direction. How do you read that . First of all, its very, very close. I dont think we can predict now which way it will go. Theres a famous saying, buy on the rumor, sell on the news. We might see selling tomorrow no matter what happens. I think britain saying there might be another referendum is not correct. David cameron is probably very sorry he promised this referendum already and hes not going to make that mistake again. If the vote is to remain, remain is going to stay. I guess, die ana, why are they much more pleased are a remain vote than a leave . I think Global Market dont know whats going to happen. You, here, are interpreting as the Global Markets rising in favor of a remain. Its possible that they see an upside in a leave also because there are going to be trade agreements negotiated. Theyll be able to have a seat at all the International Meetings when now she is subsumed by the eu, the un, or international bodies. So britain could be much more of a power house if the vote is to leave. All right. Rick, so how do you read the market today and what do you think happens tomorrow . I think reading the markets is really easy. Think about the european banks. Make those the poster child. Theyve had a huge comeback. Why have they had a huge impact . Because of the eu. Theyre not doing very well. Negative Interest Rates arent treating them well. They have toxic loans. Theyre not making any money. Theyre dependent on policy. Theyre in stronger hands with status quo with brussels, i think that makes sense. Its telling you whats better for investors right now in the here and now. 4 maked perfect sense. On the other harjsd i dont care few its close or not. The divisions are the divisions. Think about the Christmas Eve vote on obama care without anyone. Why did i pick that . We didnt get much done. Both sides dont want to come promiechlz think about la pen in france. She wants to have a referendum. I agree totally with art cashin. Its close. But the new math with whats going on with brussels, for basically taking all selfrule and putting it under their roof without voting all the countries involved is a problem, and its not going away. Its just a question of how much of a mosquito bite it will be and how close. It will give us more clues in my opinion. Arthur, before you go, do you want to add anything . Once we get through it, where do you go from here today . Its a clear thing youre seeing today. People are dismantling the safety hedges that they put on and the safe hairchs that arven disappeared. Then i think you go back to worrying about all the things we worried about before. Whats going to happen with our fed, are we going to see rates change, whats going to happen in europe, where is mario draghi going to go, can they get europe going again. So once this is over, well turn on the lights and discover we have the same problems in the room anyway. Thank you. Good to see you folks. Thanks for your thoughts on this momentum math. With vee have only a few min left. 57 on the nasdaq. It goes without saying much more. Canter fitzgerald Howard Lutnick will be here along with roger altman just to name a couple names. Terry lundgren turning his job over. What it means for macys and its stock. Youre watching cnbc, first in business worldwide. Can an established bank move like a startup . Its a question we get from some of our largest banking clients. The face of their business was tellers. Then atms. Today its their mobile app running on the ibm cloud. Across every transaction, the hybrid cloud helps their data move quickly and securely. Our clients are building out features and pushing updates faster, on five continents. With the ibm cloud, they can move at the speed of any startup. Premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Keeping the power lines clear,my job to protect public safety, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Welcome back. I recently stoke to bob ol steen about macys and lundgren, take a listen. Macys is another company. Yes, theyve stuckled. Theyre starting to take advantage of what they were suggested to do. Terry lundgren is one of the best ceos out there but hes faced with turns. Should we rally or should we make light of the fact that the shares didnt sell off . I think basically youre having retail overall do a little better. The fact that the shares didnt sell off, thats encouraging. Terry has done a terrific job during his tenure and look at the initiatives put in place. Jeffs been a partner by his side. Its about next for macys. Thats the thing. We all agree Terry Lundgren is a great guy, a wonderful leader, but the stock is down 50 in the last year. They face tough times as do many retailers right now because of changing shopping patterns. Theyve been slow to the online story. Courtney . I know they told you earlier that the transition has been in a couple of years, but the timing would suggest that its time for a change. It is time for a change. Terry lundgren has been ceo for 13 year, jeff gannett for 33 years. They know the good and the bad with macys. They pointed out to me on the phone macys is the third top seller in their category while online, so perhaps while theyre certainly more skewed to stores, they are still doing a decent business online. Theyve been given a lot of credit when it comes to that idea of omnichannel and pickup instore. Theyve come a long way. Certainly theres more that could be done. As of right now, macys and the board thinks jeff gannett can do it. Thats been in the process for at least the last two weeks. Does jeff need to be much more innovative and sell teslas like nordstroms is going to reportedly do or does he need to make sure they keep on rating well and do what they do, bricks and mortar and Online Retail and do more of what they have . I think the retail environment is changing day by day. The environment ahead of us is different than the environmental in the past. Staying the same doesnt work anywhere. Courtney, thanks. Well see you later. Thanks for your thoughts on macys. We should mention, you saw bob olstein. His full interview is online. The dow was up at its peak. But still its a healthy amount and the nasdaq leading the way with gain of more than 1 . Remarkable rally. Also twilio soaring on its first trading day. Well have something on whether its enough to lift the floodgates to more tech ipos. Up next House Democrats end their controversial sitin over gun control. We have the latest developments from washington when we come back. 4 try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Both firms lifting their target. Its currently trading under 14 citing firmer pricing. After vowing no bill, no break, House Democrats have ended their controversial sitin over gun control after one day. The protest did prompt Harsh Criticism from House Speaker paul ryan, a republican, of course. John harwood has the latest on this unprecedent act in the house of representatives. Theres never been a sitin before . There has been a sitin before. Republicans did one on Energy Legislation in 2008. But this was exceptional because of the age of social media and the attention it got. That demonstration raucoused at times is now over with both parties claiming the upper hand. You had democrats saying theyre going to come back after the fourth of july and resume their agitation with higher visibility for gun control, and Speaker Paul Ryan saying he was going to insist on substance over stunts. We are not going to allow stunts like this to stop from carrying out peoples business. The fight is not over. This is just one step. When we come back on july 5th, were going to continue to push, to pull, to stand out, and if necessary, to sit down or sit in. The House Democrats did get welcome news as they boarded planes home to their district. That is, the senate failed to kill a compromised amendment put forward by susan collins, the moderate republican from maine that would make it more difficult for people on terror watch lists to buy guns. There was a motion to table that and a few republicans joined to stop that from being killed. Still unlikely thats going to be be law but the debate goes on, bill . Are we getting a piece of legislation that will make its way through the process or is all of this going to be a lot more show in a way than any real change . Well, if you look what is most likely, kelly, the most likely thing were going to get is this big fat zero right here. But paul ripe did not rule out it. You cant say its impossible. Its just not very likely. All right, john. Thank you. John harwood there in washington. Time now for a cnbc news update. Lets get back to courtney reagan. Hi, there, kelly. Good afternoon. Heres whats happening at this hour. President obama expressing disappointment in the Supreme Courts 44 decision to block the plan to shield those living in the u. S. From deportation. Today the Supreme Court was unable to reach a decision. It means the plans i announced two years ago cant go forward at this stage. Until there is a ninth justice on the court to break the tie. Colombias government and the socalled farc about rebel. Paves away for a final peace deal. Tens of thousands of people marched in paris. Security was high and Paris Police Say they took at least 85 people into preventive detection, most for possession of objects that could be used as projectile projectiles. U. S. Travel rose by 2. 6 in april compared to a year ago according to data released by the transportation department. It was estimated at 273 billion miles. Thats the cnbc news for now. No doubt well see you. Youre everywhere. Thanks. A leading trader will tell us what hes watching going into the close aside from brexit. Thats coming up. Later, the heads of canter fitz jerrod and evercore give us their take on once the brexit is done. And tomorrow rob kaplan on the brexit vote and when feds may raise rates again. Thats tomorrow. Were back with more after this though. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Welcome back. The dow is rallying. Theyre respectively about 2. 5 and 1. 5 . The nasdaq the strongest performer of 1. 2 adding 59 points. And on top of that vote for the brits to leave or stay in the European Union banks are rising. Its not that. Its the results of the feds stress test. Look at citigroup up 4 . Keycorp up 3 . Were looking at this. After all weve been through and were still going through, the s p is just a sandwich away from an alltime high. Within 1. 5 . So the market continues to be incredibly resilient. Thats the key point. Despite all this fear and uncertainty, within a fraction of alltime highs, within 30 points some of resiliency this was made last machlt continues good breadth and momentum in the face of uncertainty, which i think will be resolved. The second point as we speak of, we have all this fear and uncertainty that puts some of the options on the ukx. Our own vix was over 20. The third is that youre starting to see real signs of participation in financials, with yields bumping up, with health care and technology. These three sectors have lagged the entire year. You start to see anticipation. Thats going to be a real yield. Very quickly, if you see us close above that old high and maybe close a little bit above it, is that all systems go . I think theres going to be real acceleration because people have gone this entire year. They derisked. But they failed to capture it. A move back over to 2120 and the s p cash, it likely takes us up, i think, right to 2,200 by late summer. Continued pessimism. Its right to chase this market at least in the near term. Still an unloved bull market as we say. Youre absolutely right. It feels like election day here, doesnt it, kelly . I know. We should have our flag pins on. 20 minutes to go. We cant wear our voting stickers on this side of the pond. Nearly 1 gains and the s p 500 and nasdaq up more than that. Its been a long time coming. Twilio is the first tech ipo since last november. It opened big. Bob pisani up next with all the details. And up next, the bank tests. Well have the latest bank report cards with complete analysis in just about an hour. Stay with us. Experience the thrill of the lexus gs f sport. Because the ultimate expression of power, is control. 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All s p 500 stocks, thats why were having a rally. Dollar general, conagra, smuckers, see the theme there. Lets hear it for the Consumer Staples today. Meanwhile blackberry is trading higher. It is on track for a 30 growth rate in software and services, but it does expect a 15 cent share loss for the full year. Thats actually smaller than estimates today. The stock, though, is up 3 . Well, today unicorn is frolicking in the clouds. And, no, this is not a fairy tale. Twilio became the first tech ipo this year. Is that right, bob miss a know . Winner, winner, weve got a winner. Youre right. Twilio. It opened at 23. 99. Whoa. Up 60 . Its near the highs. Thats not a typo. Up 2 . Thats absolutely amazing. A couple of firsts for twilio. First eun come to go public this year. First ipo to price above the range since december of last year. Its the first Silicon Valley ipo since squared way back in november. Why is it doing so well. The first, its a hot space. They make it easier to make people stay in the app because of messaging and voice. Do whafr you want. Dont leave. Number two, dont leave. Its a small quote, 10 of the company. And reasonable valuation versus pierce. Is this going to help them Going Forward . It sure isnt going to hurt. Take a look at line. Big messaging japanese app. It will be boosting here july 14th. Big one here. Were talking several billion. A lot of companies. Theyre all sitting out there waiting. What about the big guys . I dont think this is going to move the dial for them, but i certainly think its going to make them more comfortable thinking about it down the road. Its a good start. Thats the thing. Its a good start. Weve had plenty of good starts in the past and theyre not good after that. It remains to be seen. A lot of questions still about them. Whatsapp, one of their customers, is 17 of their revenue. If they go away, forget it. Well see what happens. Bob, thanks. See you later. 15 minutes left on the trading session here. Moving back to the highs of the session with the dow up 185 points right now. Up next, with the uk heading to the polls, canter fitzgerald Howard Lutnick thinks it should be a britain leave. He thinks it could be a good thing for trading. Well explain next. By the way, dont miss tomorrows Steve Liesman interviewing rob kaplan and when the feds raise rates. Thats tomorrow morning in an exclusive on cnbc. In the meantime, kelly and i are back right after this. Trade trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. All right, about 112 minu2 left to the top of the hour. Were just off the session heise. We were up 193 at the peak. Joining ounce the floor of the New York Stock Exchange our friend Howard Lutnick. Good to see you. Good to see you. What do you make of the impact . It seems likely to us that theyre going to remain. That was the vote, either leave or remain. So i think theyre going to remain. Its good for business. We at bgc, we love volatility, so we would have been really happy if they exited because we would have created a lot of excitement, a lot of movement. It seems likely that theyve got it but not by much. They still have puchbltd theyre still a part of it. They should statement it makes life easier for business and that seems like the businesspeople want it to stay. Its the same thing in america. The immigration is hot and its high and right now it takes an extra four weeks to get a doctor. Theyve got socialized medicine. It used to take two weeks. Now it takes six. Thats the big immigrationish. Banks have been rallying with the anticipation. Bank are depep accident on the ecb because of the toxic loans that they have and the problems that they face right now. The banks look. The Financial Markets would like all the big banks want to remain because otherwise they would have to move things around. They wouldnt know about the taxes and how duties would work. It would really be a pain in the butt if they left. But you know what . Immigration is a hot topic. Its a hot topic here and there and its the driver of brexit. But i think in the end theyre going to stay. In two years we would have stuff to talk about. What do you think happens tomorrow with the markets . I think its just good for business. Its a rally for the pound. You do . Aial f iarally for europe. Maybe for us, the treasury should probably come off a bit because there was that flight to quality, god forbid what happens. By the way, they have twe have Interest Rates. Can you imagine spain is lower . By the way, you bring up a good point. The Federal Reserve has a meeting in september. If were sitting here with markets, weve gotten through the vote. Lets say its the remainder. Does that suddenly mean were talking about rate hikes again and rates moving higher . The fed wanted to raise rates. Boy, did they want to raise rates. You buy coffee. A quarter percent is a little bit of a lead. 1 all the way to second base. So they want to get to at least a half a percent. Theyre going to raise rates this year. They really, really want to. They wanted to do it now. But that jobs report made them a little nervous. I think if you look at one more shot of good news, the next time you report good news, theyre going to meet and hike it. Lets say we get a remain vote tonight and next jobs number we get for june is a good one. Julys on the table. They want it so badly. We want to get off a quarter percent. We just had james bullard. Bullard . I know you follow the pack a little bit. Dove, dove, dove, dove, dove. Hes hawkish when he feels its tyke to be hawkish and now hes dovish when he feels its time to be dovish. Do you feel theres a philosophical change . Theres no philosophical change. They see that number and go holy moly. What does that mean . They wait and see. Theyre all back in that room saying, come on. Were not really raising rates. Were going half a percent with the feds balance sheet. Remember the fed owns 4 trillion worth of bonds. Its the easiest in the history of all time. What kind of government owns 4 trillion of its own stuff . You know what . Zero Interest Rates. Take money from banks and give it to corporate america. Toyota borrowed money at one basis point. Unilever too. Look how crazy that is. When they tapered to quantitative easing, its equivalent of tightening. Its not like there havent been moves. You know, if i gave my children hundreds of dollars every day and tomorrow i gave them only 95 and you said, wow, youre really tightening, they would say, this is crazy. Theyre being slightly less easy and we get people to say tightening . Come on. Listen, if we had time, id bring him in. Theyre standing off camera. Howard lutnick. Great to see you guys. Well take a break. The dow up 209 a the market rallies into the close as we await the results from brexit. Well have the results in a moment. Were waiting for the results from the Bank Stress Tests. Are they strong and sate enough . Those results in about 35 minutes time. Youre watching cnbc, first in business worldwide. My mom loves giving me advice. She even gives me advice. About my toothpaste and mouthwash. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again this is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Inside the twominute mark. Here we duo. The dow rallied into the brexit poll results, which well get to tonight. The polls close in two minutes over there, and there we are back to 18,000 all of a sudden, bob pisani. And the british pound, the other proxy, really, the stronger proxy for the uk over there, that has strengthened into the close as well today, and well show you the british pound at any moment. Dont worry. Well keep talk nothing matter what. We have been correlating with the british pound the last few weeks. There it is at 1. 48 and the vix coming off. You should think the vix would be going up. Somebody ought to be buying protection. What . Me worry . I guess. Heres what im worried about. This is now getting a little frothy in my opinion. I cant help but they several people have called and said, hey, possible, how about this scenario. We have a vote to leave. How about this. We stay in. Its been such a big move up. Wait minute, you mean the market goes down no matter what . As some people have suggested, art cashin as well, it depends on what margin they vote to remain. That could still cause a selloff. A very difficult situation. At any rate, one thing is for sure, the biggest risk, the downside for the market. Its still raining. Lets get her a towel and an umbrella. Southwest airlines ringing the closing bell closing bell at the New York Stock Exchange and the stars of usas suits ringing the bell at the nasdaq. Now for the second hour of closing bell. See you later, kel. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans, and a huge finish for stocks ahead of a huge vote. The dow adds 228 points to close there. In fact, closing above 18,000, and its about 2. 5 away from its alltime trading high. And the s p even higher as it adds 27 to close at 2113. The nasdaq, the best performer, a bigger than 1. 5 gain. Its a few points shy of the 5,000. Now investors are waiting for key results on whether they leave or stay in the European Union and the stress tests are due out shortly. Well get coverage coming up. Now, joining todays panel. Cnbcs commentator and pro columnist is Michael Santoli and julia tedd from the Financial Times and Steve Barrasso and. Were fully positioned for a main vote, no doubt about that. I do think its interesting the s p 500 got back to where it was 15 days ago. June th we closed jewel 8th. We closed at 2. We went down in this anxiety. Everyone got extremely positioned, have come back and taken it all back. The issue is if it is closed, if it is an exit, were vulnerable, but i dont think it means weve used up all that is necessary. Thats a good way to look at it. Lets get to the latest on the polls. Great brittain, less than an hour away from closing. Wilfred frost is in london with the latest. Will . Thank you. Ive got a copy of the london Evening Standard here. Remain ahead in final poll. That was a poll out quite some time ago that weve already discussed. A picture of David Cameron having voted with his wife. If you turn a few pages in, i dont know if you can see the headlines. Sydney traders and lawyers to work all night. Something weve been discussing very much throughout. Ive got betting statistics in. They say this is the busiest day. 68 of the volume of bets were for leave, but 74 remain. The biggest bet was for 30,000 pounds on remain. Less than an hour before polls close. At 8 00 p. M. Eastern time, the australian equity market opens. All eyes on hong kong. The uk bond markets will start to see volumes pick up and we can look at reactions there and 3 00 a. M. Eastern time pretty much when we expect the final result is when the european exiting markets will keep an eye on that. Expecting a strong remain vote. Thats where we stand, guys. It is the biggest vote in my generation in the uk politics and crazy to think that all of the worlds Financial Markets are focused on little old britain. Yes, they are, will. Thank you so much. Did you get to cast your vote . Yes. I did, but the key thing that they need to understand right now, unlike america, youre not allowed to go to the polling station and do polls as people leave, so right now there kind of is a blackout or there has been all day as elections are going on. Some have been conducting private polls and going into the markets and placing bets on the back of that. So maybe just maybe the fact that the markets are rallying may indicate there are early signals. Right now theres a lot of uncertainty. Even at 10 00 p. M. When the polls close, well only start to get in a trickle and then it will go into the wee hours of the evening and even into tomorrow morning. Yes. Over many years of watching great big political events leak this, the markets are very rarely strong. So the strength of these markets leading into the vote, not just the stockmarket that we saw on close closing but the strength of the pound, treasuries trading, yield, the across the board its possible the markets get it wrong, but its quite unlikely in historical terms. Jill . One thing you have to watch out for is the turnout. I tried but i have logistical things that snapped me. Right now the voters are dealing with a very real world snafu which is its been raining incredibly in the uk. Its been raining. One of the questions theyre asking is how is that going to affect who goes out to vote, who cares enough to really fight through that rain, that wonderful british weather and actually get to the polling station. Because the sense is the more ardent voters are those who want to leave. You heard what earth and he were saying about that. What is your sense . The pound has had the most extraordinary really. Even without brexit, theres a lot of pressure and there should be. The pound, what i think a lot of risk assets have done, i think the pound bottomed sometime in february and its certainly something you watch regardless of brexit if youre looking to grab risks. The pound is always and strength there has always been indicative of asset flows into these types of assets. But when you get down to it, europe is back to where it was since the beginning of june. If you think about the pressure put on the end, japan is the one place that really has not performed in line with other asset class sthoos thats a good point. Mike . Without a doubt. I do think were going to have this occasion after the results are in for people to assess how they behavior. I have no doubt that the market can find Something Else to worry about. Thats always the case, but can you also have the situation that the math where it was two weeks ago. You have a fed on hold, you have the number at 2. 8 . They dont look terrible and people are still very defensively positions. And the market is still near the alltime high, jill, and the housing numbers are very strong . Exactly. We look at the Hedge Funds Holding of cash. What were hearing right now is a lot of investors sitting on the sidelines in the last few weeks not wanting to take big bets. Im quite sure once we get the resul results, theres going to be a lot of money in the works. Its not just in relation to uk assets but right across the market. And on top of all that, we have it in the u. S. Roger, if the vote is remain, do we take it off the table or do we look at just how fragile things are nay. Different aspects of sort of the same impulse across the eu. I think over the very short term and i would measure that in a couple of days, it does take it off the point of the view in the u. S. Equity markets and the point you just made is an important one, which is the data weve been seeing it is more toward the better side than the weak side. The most recent claim, not a strong number for the third quarter, second number, there are higher numbers, but still not a bad number. That will be the immediate focus. However, that will last a day or maybe two or less. More likely the u. S. Data will be the focus here. I dont know about the european markets, but here. If thats the case, can you justified the Interest Rates being this low . Do they continue to be suppressed because of Everything Else going on in the world . Its a small force. Interest markets have moved up. The tenyear was as low as 157 in terms of yield. Now its 173, 174 right now and that is a sign of strength, not weakness because theres been a flight to safety and a flight to quality, which is pressing yields down and thats coming back off as people anticipate the main vote will succeed. Wed all like to see yields at least for the time being going hire. If you wanted to pick another animals spirit, you could pick twilio. People are focusing on making a very different and much more positive set of indicators and you wonder where that leaves rates and maybe even the fed. Lets be clear. Theyre not the context of where we are in the markets. This is a relative volume game. I think us yields go up to the top end of the range, which could be 2 . In the absence of any change in monetary policy, ecb continues to be buying. Theres pressure on yield around the world. U. S. Yields are going to go lower and thats necessarily an indictment. I think thats where we are. Johnson and johnson and exxon and paying multicap to them are doing extremely well. Theyre a little too big for their britches. I think theyre expensive. That will happen in the next couple of days. But in the absence of getting to the fed as we know them and the rest of the world. I think the risk is that markets go higher. All right. Tim. Thank you. Well let you and get ready for fast money. By the way, theyre going to have a huge hour. We start to get the first look at how new polls are shaking out. Roger, thank you for joining us as well. Any parting words you want to offer us here . I would just repeat what i said earlier. You searing a very powerful market moves in the past day or two, clearly anticipating the remain wins. I think that tells you that the changes that remain loses are extremely low. Certainly thats what people are hoping. Thank you for joining us at post 9. Stocks are rallying. Investors are not too stressed but will the stress test threaten this rally . Well have the results breaking at 4 00 p. M. Eastern. Plus, find out whether a plunge in new home sales is a red flag. Youre watching cnbc, first in world business, worldwide. Download the new app . Ple were good. Okay. What if a Million People download the new app . Were good. Five million . Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Its here, but its going by fast. The opportunity of the year is back the mercedesbenz summer event. Get to your dealer today for incredible onceaseason offers, and start firing up those grilles. Lease the cla250 for 299 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Welcome back. Home sales did fall. Diana oh nick has more on what this says about the housing market. Diana . We knew there would be giveback on the huge jump in april sales. The biggest prices were in prices. We saw the median price of a newly built home in may just 1 higher than a year ago, that after the realtors were waving red flags on affordability. The newly built produce was 294,294 290,400. The price of an existing home, 239,700. There are very few entrylevel lower price homes for sale both new and existing. Still affordability is weakening, and thats in a very low Mortgage Interest Rate environment. Should rates start to rise, then things get worse. They continue to complain about high prices for land, labor, as well as increased regulation on construction, which is holding them back. Kelly . Diana, thank you. We have a news alert on xerox from seema mody. Whats up, seema . Jacobsen will take over for ursula. Were looking at the stock down after hours. Dont know if you want to infer much more than that. Shes been there a while. Not sharing too much. Up next, David Rosenberg tells us how this vote tonight could impact your portfolio, whether britain stays or leaves the European Union. Plus bob oilstein and disney, which he thinks is overvalue and what which he thinks is cheap later on the closing bell. No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Illuminates skin with pearl optics science. Your concert style might show your age, your skin never will. With olay you age less, so youre ageless. Olay. Ageless. Welcome back. These are the final 40 minutes of voting in europe tonight. A lot of people are saying this market already knows exactly how its going to turn out. Joining us now is David Rosenberg, chief economist. Thanks for joining us at post 9. Are you saying you know how its going to turn out . Im saying i dont know. But ive been saying all along if youre laying out the bets, that the main crowd was going to win, that was my view, and here its got priced in very quickly in the last 48 hours. So i think whats more important for investors is what do you do . The risk right now is we get a surprise. The surprise can only go one way. The surprise is a vote to leave. Or i guess could there be some sort of period of time where we dont know if its too close to count . The markets have the tendency to shoot first and ask questions later. Remember all the questions we had a couple of weeks ago when the polls were going toward the exit camp where you could take all those exit levels whether its sterling, the gold, sterling, the treasury yields, uk financials, theyll probably go through them. Whether its on the downside or upside, then the question is going to be what happens when we get there . I was saying they could actually leave the eu. Its a nonbinding referendum. Ultimately if article 50 is going to get invoked, its going to go through parliament. I always thought, you know, the view that somehow the people spoke but they were actually going to ultimately brexit maybe had as much validity as the folks who had bailout, then voted for it and got the bailout stuffed down their throat when all was said and done. Mikesome. I guess the question for me if it goes the way the market expects and they stay in, what do the Economic Conditions right now support in terms of the market . What does the market appear to you . Look. A few days later were going to have spain. The next year we have elections in germany and france. And this whole thing with the uk really exposed a couple of things. First dysfunctionally how the eu is and how theres been a decline big time over the course of the past year. So you know wait does . It brings to the floor this view of how the Global Economy is really splintering. Youre seeing that in the u. S. And in the euro area and in the u. N. In general. This antiestablishment, antielite, antiglobalization wave. An i trade. Thats whats been emphasized throughout this whole campaign. Look. I think were going to come out of this. We were talking about grooechlts you could argue bigger, but lets say we emerge and its a remain vote. The things weve been talking about leading up to this, which is really about this chronically sluggish Global Economy, if im not mistaken, to me it was that the big banks cut their growth from 2. 09 to 2. 04. 2 is often seen as a benchmark for a recession. Thats what i was about to say. Yeah. Theres no cushion. Even if we get through this, and we will get through this, the parliamentarians can vote. Well be in mow mans land. Lets get back to fact of the matter. The World Economy is saddled with too much debt. Theres no escaping velocity. The question is how do we get to sustainable growth. Its much larger and more difficult. What happens is what you said. It makes these recurring shots that much more pernicious because of the low level of growth. Thanks for joining us. Painting a picture of gloom, sort of. Tyke for a cnbc news update with courtney reagan. Heres whats happening at this hour. The flight recorder of the egyptair jet that crashed into the mediterranean last month have been unsuccessful. Theyre flying them to paris which has better equipment for extracting the information. Volkswagen is settling a claim in the u. S. It would compensate 482,000 owners of cars with two liter engines that were programmed to cheat on emissions tests. The average payment would be about 5,000. And police in chile using Water Cannons and tear glash to detain students. Clashes broke out in santiago. A retired u. S. Colonel from michigan receiving an honor. Hell be honored for his military service during the vietnam war in a white house ceremony in july. Thats the new that hour. Back to you. Thank you so much. The feds Bank Stress Tests are out in a few minutes. Well have complete analysis for you when we come right back. I moved to boston when i was two. There was 14 of us in a four bedroom apartment. To be the first kid to buy a house. Its a very proud moment. Whatever home means to you, well help you find it. Zillow. Looktry align probiotic. Our digestive system . For a nonstop, sweet treat goodness, hold on to your tiara kind of day. Live 24 7. With 24 7 digestive support. Try align, the 1 ge recommended probiotic. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Welcome back. Dow is up, s p 500 is up. The nasdaq was up adding 76 points for its part. By the way, in its debut twilio had the strongest Public Offering so far in the class 20616. Now the fed is out with its latest bank stress test. Kate kelly has the results. K kate . Hey, there, kelly. Under what the fed termed a severely adverse effect, they would lose 26. 9 billion through loan losses and Counter Party losses. A critical capital ratio known as tier 1 common equity would fall from 12. 3 to 8. 4 cumulatively. The hypothetical severely adverse conditions included a recession, an unemployment scenario rate that rose to 10 . Real gdp declines by 6. 25 over multiple quarters and negative yields. In call before markets closed, fed officials who stressed the is not a test banks either pass or fail sounded upbeat about the financial institutions. Those firms collectively are building up capital and improving credit quality. Ads a result, they noted the firms are more resilient than they were a few years ago let alone in 2008. Next week well get a little more detail on how well positioned they are. And specifically whether the fed thinks each dividend and buyback plans are workable. Thats where the notion of passing and failing as it pertains will come in, kelly. But for now weve got a 30,000 foot view of things. For more reaction on these result, lets bring in dick bu vai a vai. Tom, first to you, the significance of what weve just learned. The significance is the fed continues to say the banks need more capital. Here they give them the toughest stress test they can and it only takes one third of their capital away. Dick bove . I think the stress tests are bad for the banks, bad for the u. S. Economy and democracy. I cant imagine a worse authentic than any industry would be subjected to. I think it would be impossible seven or eight years after the finance crisis for them to come out. So its pretty much written they were going to say that the industry was in reasonable condition. I think if youre looking for what stocks to buy based on this, you would take a look at bank of america and citigroup basically because theres a high degree of probability that theyll be able to increase their dividends and i think among the regional banks, they look pretty good. David ellison, do you want to argue the stress tests are a good idea . This is the fifth year weve gone through this. I think what we see now is the American Banking system is the best Banking System in the world partly because of what the fed has done and what the fed has stressed these banks out and what the banks have done. Its good for the economy, our economy, and the stockmarket, so this is basically a green light to continue to lend and continue to grow the economy through the financial system. So i think this is great news, but its been building for five year, so this is exactly what we wanted. Jill . Were talking a lot about europe right now. Whats striking is how its healthy. Not flashing red on anyones radar screen in terms of alarm bells and the Banking System. If you want another example how theyre looking dysfunctional quite apart from this brexit vote, that should be very sobering for anyone. You know, tom, i guess i would ask what does it tell us if anything about the next phase and the ability of these banks to start to Share Capital with the investors in a bigger way . It says the payout ratio is going up. Last year they paid 60 of their earnings in the form of dividends. I think most of us expect that number to be 75 or north. I think youre going to see a continuing increase in the return. It wouldnt surprise me if the increase is close to 100 . Do you agree, dick, that thats where theyre headed . Theyve lost the message. In other words they no longer have an argument on commits funds to the industry because basically they havent explained why its a growth entity and therefore theyre dividend stocks. Youve about got to pay out 100 . A lot of people are asking to pay out more than 100 of their earnings simply because they see no growth in this industry. Go ahead. The thinkg id like to point out, the buybacks dont help anybody. I think apple shareholders would agree with me on that. I wish theyd pay higher dividends so everybody gets paid out. The utility stocks which are historically low growth, high dividend players, are paying at twice the valuation and we have a fund that shows that at hennessey here, so the reality is this industry has theyve got to decide what they want to be. At the end of the day, its very healthy, they need to pay more and acquisition and mergers are going to be the beg part. Taking this piece by piece, david. Theyre tax efficient, right . If they start to do this, thats going to be a big tax bill for some. But the problem is youre not giving liquidity to everybody. The buybacks, historically name me one stock where theres been a lot of buybacks because of the buyback. It hasnt happened. And in the Banking System, its deluded the book value. Let me worry about the tax. Theres plenty of people that have 401 k s and iras. Put it in there, pay the dividend, and worry about it later. Buybacks dont make you rich in the stockmarket. If you look at it, were in a totally different world than we were before the crisis. Were looking at utility levels. So one of the questions thats still very unanswered is are we in the new normal sh should we just resign ourselves to low ts or should we imagine thats where we would ever go back a decade ago . Tom wrr, where do you stand that . Somewhere in between. Think with higher levels of Interest Rates, the industry is very sensitive to shortterm Interest Rates and they need to be pushed higher. But theres no prospect for significantly higher shortterm Interest Rates any time soon. Is there a risk . Dick, i can ask you. Is there a risk where were getting to a point where the banks are on more solid footing and they might distribute more cash where credit indicators are look soft . If you look at the Consumer Finance stocks, for example, it looks like people are worrying about fraying on the consumer side of things. Youre right. Its getting weaker, but not weak enough to matter. If you pick up Fortune Magazine in the last issue, you would see the top ten profit Generating Companies in the united states, that theyre full banks. Jpmorgan is number two in terms of profit jen rachlgts city bank, number seven, bank of america, number ten. None of these companies are anywhere near their peak earnings power. What you have is each one of these except for wells fargo is pretty much selling at a discount to book value. Citibank and they are selling it at 40 . Theyre among the most Profitable Company os the united states. The question is not are they going to pay dividends. What will be the reason that the market will start to buy these stocks. Yeah. Dividends, i guess, could by one if people are looking for that these days. What about deals . Theres a lot of regulatory reasons why we havent seen a big wave there in the bank space. Do you think that is bound to change . What i was really referencing is the smaller banks, not necessarily a citicorp or jpmorg jpmorgan. I think because of the stabilization of the economy and presumably the improvement of the economy, you get good news out on the employment or numbers. Thaw need to consolidate. I think once we feel better about the economy, which, you know, its coming. Its taking a long time. There will be a lot more ak city sigss and it will be on the small cap banks. I think if they theyre going to be utilities or theyre going break up and be Something Different and theres a lot of cost cutting to go along there. A lot of branch rationalization. Youre seeing that now. I bet you half the businesses dont make money and thats all got to be ferreted out over the next five to ten years and theyre working on that now. So theres tremendous ability to pay higher dividends and groix earnings. Dick is right right now its one big house of pain as jim cramer would say because nobody cares. But the good news is these companies are profitable. Do you think were about to see this where theres smaller players but the smaller ones do rationalize or break up . The top four banks cant acquire another bank. The next 15 dont want to acquire a bank. I was talking with them. Thats an outloaded system we would be acquiring. However, the consolidation pace and the industry last year was 6 . That marches the peak that we saw in the 90s. So that consolidation is indeed happening. The consolidation is dramatic. I was down in washington and they gave me very two thought out consistents. Firstly, they oversee 6,000 banks which is less than half of where they were less than a decade or two ago. But secondly if you back the a deka kaukau kaucade or two, one local banks, community bangs and regional banks. Now theyre 880 . Too big to fail phenomenon, the banks have gotten bigger. Thats not true. Oh gorks ahead. Kelly, if you take a look at the bank when the frank dodd act was passed, the four biggest banks in tu staits have lost market share. Thats a fact. Thats not something you can make up. In addition to which they grew between 2008 and 2010 because they were asked, asked to make acquisitions. By the way, if youre looking for one of the hottest products in the united states, you know, you have to take a look at the big banks because they have moeshl banking and moenl banking is growing from virtually no customers to tens of millions of customers in a period of five to six years and the banks get no credit for the fact that theyve got one of the technologically strongest products in the country and its growing at a rapid rate. Thats true. Thats an argument theyre trying to make. Thanks for joining us all as we sift through these results. For now, dick bove, david ellison, and tom brown. Thank you so much. Up next, which companies are most exposed from todays brexit vote. Tomorrow dont miss Steve Liesmans interview with rob kaplan and when the fed may raise rates again. World held by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. And i thought, well, you need to go to the doctor. I was told that is was cancer, and i called Cancer Treatment centers of america. Dr. Nader explained that they can pinpoint the treatment. Once we identified that there was this genetic abnormality in her tumor, we were able to place her on very specific therapy. Our individualized care model gives each lung patient specific Treatment Options with innovative procedures that are changing the way we fight lung cancer. We have Excellent Technology that will allows us to perform very specialized procedures for patients who have lung disease. To learn more about these targeted therapies and advanced procedures for lung cancer, as well as the experienced physicians who deliver them, go to cancercenter. Com when he showed me the cat scans, i was so amazed. With this treatment, she had a dramatic response. Call or go to cancercenter. Com. Cancer Treatment Centers of america. Care that never quits. Appointments available now. Welcome back. There are just 15 minutes of voting left in the uk. There are going to be a lot of winners an losers on wall street after the vote is finalized. Eric . Thats right. Kelly. Obviously when you look at the s p 500, not all companies are exposed. Look at news corp. 20 . Ebay that sells all over the place and molson coarse. Theyre number one when you look at where their revenue comes from. But look at the flip side of these companies that almost have no exposure whatsoever. These are the traditional American Companies like best buy. Youre not going to see a best buy anywhere else in the world. Smuckers, apparently the sweets are very regional. So if you like american sweets, you dont like them in england. In at t, the a is for america so it doesnt export that well. Those exports are less than 0. 2 . I found this really interesting. Think of insurance as a domestic thing. United health, traveler, aetna, all of them, less than one quarter of 1 . Yeah, its pretty hard to sell Health Insurance to a country that has no health care. Its not called obama care. What about the sweets, jill . I dont think smucker nobody knows what a hershey kiss is. They dont want to know. But, yeah, there are other companies as well. Ppl. That happens to own quite a lot of utility operations in the uk. There are blackrock, for example, invesco. Quite a few are exposed. If you do get brexit, youre going to get them in the market. I was thinking as we continue to follow these results, these are going to be involved with the biggest uk exposure. It might tell us what its priced at. Look at the big energy. Newmont mining, apache, transamerican. Thats right. Eric, thank you so much. Thanks. Cadablybury chocolate is on my mind. Found out which stock could reach 30 . And the polling to come in in a couple of minutes. Swreel the latest on how its shaping up when we come back. Welcome back. Netflix and dis234i, Business Partners as well as business rivals. And the chairman doesnt theyre theyre an equal. What he told me for the spark value edition. What would be an example of, create an xafrl of the wall street spin machine. Netflix. There you go. Heres a company you got to pay 40 billion to lose 2 billion, to try to be competitive. One of their shows wins an Academy Award and the company goes up 4 billion. A lot of competition in that business. 80 of the shows produced dont make any money, and yet people are paying 40 billion, up to 60 billion at one time. The stock has gone up fourfold. Right. Retailers who like the service, done wet in is stock may say, what are you talking about . Nobody knew when to ring the bell. Exciting. I wish i owned it the last five years, but basically do you really . If you think its fundamentally a bad business . Well, i think its fundamentally not a bad business. I think its fundamentally misvalue offed. Thats the key thing. Three key things to look at, price, price and price. Weve made a ten, eight bagger, should say, on walt disney. Still worth another 30 more. 6 Free Cash Flow there. A great ceo in bob iger. And what about espn xbrnch . Espn, not in danger. A great asset. Not growing. Theres growth again. Only grows 1 or 2 . Not growing at 10 , 15 but has an edge on what it pays for programming, an edge in the entire sports world. That was bob olestein of olestein funds. Catch the entire interview online. What did you think . If i give you ten reasons to own netflix, valuation is not one of them. Legitimate critique. Not a valley investors stock, and how much theyre wpaying an returned for content. Ill say one of the high Free Cash Flow industries of ten years ago was newspapers. So in some respects high free, had to be careful in terms of how you approach it. Not saying disneys in this category but shows they have a long history of establishing businesses with high profit prargens. Doesnt mean theyre going to continue forever. And surprising to hear from his point of view see disney as such a good valuable, still. The thing about disney, the sheer breadth of its operations. One of better hedged media stocks out there now. And kaums from bob iger as well how well maybe hes run the company where else those talents apply. You can see the full interview on the website. Minutes away from polls closing in Great Britain and will have the latest details on the brexit vote, up next. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. 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Im interested in giving back in some form, but not exploring a run for governor, senator or anything along those lines. Im focused on running disney. I could have done a better iger impersonation. That aside, we were just discussing disney stock. Responding to a question. Has had a little bit of a perry with Bernie Sanders daughtering t during the campaign. Keeping options open. Thats how you read it. Wouldnt be the first californian to make the transition to the world of politics. Probably more better than the terminator. Who got that office. Exactly. A couple more years around a lot of time and talent, thing doss with 2. Significant more so than usual. What will you watch for as polls close . Right now in a moment when actually all major markets around the world of closed. Interesting moment. We calculate from looking with the Financial Times, looking where the markets are now, 90 certainty of remain vote. And sterling trading pretty close to where the fair market value is now. We know if it ends up being a leave vote in the next 12 hours, thats going to be a shock. The other thing we know, a lot of hedging and the city on cash and a lot of Market Movement the next 24 hours. And the only thing well find ot at 5 00, mike, at least in the hour at first, is a poll from today not anything do with the actual exit polling. Separate from the that. Yes. Some time before we learn. Hard to know if thats going to be enough for anybody to truly act on. I do think the markets will almost in any case be twitching in the morning. In other words, they want to test out exact think how much has been priced in, even with the expected outcome. Sterlingality around 150. Upside scenario for a lot of people on the street. Seems as if weve got that. I think about 30 of the regional votes coming out by say i think 2 00 a. M. London time, 9 00 p. M. Eastern time. Then about 60 by our 10 00 p. M. A lot of us not getting sleep. In the office all night. En unfortunately, yes. Covering the story on cnbc as well. Thank you for joining us. Especially today. Appreciate it. Jillian, michael, anything else youre watching tomorrow . Thats it. I want to watch the vix, should come down if we get the expected vote. Over 20 a day or so ago. That does it for closing bell. Fast money begins right now. Fast money starts right now. It is 10 00 p. M. On this historic day in the uk and voting on the brexit referendum is over. Full coverage this whole hour. Cnbcs Wilford Cross in london and sara eisen in london gaearig up for a wild night of trading. First the markets here. Voted, surging above 18,000. S p 50020 points away from alltime heiss. Do a vote of our own on the desk. I like the vote. Come tomorrow, will england be in or out of the eu . In. Markets pollsters say in. Not pretending i