Transcripts For CNBC Closing Bell 20170525

Biggest number was online sales, addly, up 22 . Im seeing what youre doing here. Interesting there. Gaining after the bell moved higher as a result. Energy, big laggard, ironically, after the oil prices dropped, oil stocks went with it after opec extended Production Cuts another nine months, look where there may be opportunities in this particular market. Could this be opposite . Getting worse throughout the session, it feels like, with energy today. Yep. The stock that wont quit, amazon closing in at 1,000 mark per share, its at 996. A fund manager, why hes trimming positions. Fun fact, jeff bezos will be the richest in the world when amazon hits 1,000. Exceeding bill gatings at that point. Wow. Diesel pickups rigged to pass emissions tests, but shares hit, down roughly 2 on that story. We have the full story coming up in a little here. Tax reform seems to take a backseat to health care for the moment. House ways and means chair kevin brady joining us and whether he and the white house are moving closer on tax reform. Looking forward to talking to the mr. Chairman in a bit here. Starting with the record day for stocks. Joining our Closing Bell Exchange today, rob frost, who, oddly, works for frost and frost wealth management, at post nine with it us as well as New York Stock Exchange trader, and Rick Santelli from chicago as well. Kenny, this will be the sixth consecutive day the s p record territory, the Nasdaq Record territory, utilities close to a record now. Only one in negative territory is energy, buy the rumor, sell the news trade. Look, volumes are low. The vix down below 10 again, signaling complacency, but breaking up through 2400 and clear the sells were not there, it was in overdrive, right . We made this exaggerated move. 12 pointins s p, long weekend, w volume, moves exaggerated. Feels real . It feels real, but not like its got its not going to hit some resistance next week. I think when people come back to this desk again realizing where stocks are, theyll take profits and reallocate. What do you think of the moves . By the way, it is interesting to look at how poorly oil and the Energy Stocks reacted to this opec cut. Feels like the whole market is saying, we dont really see it there. What do you think . Amazing, isnt it . I mean, investors continue to shake off tweets and investigations and personality of our president , and they continue, i guess, to look at fundamentals, and fundamentally, the economy continues to strengthen. Its certainly not where we would like to be, but its not weakening, which is why investors continue to be bullish. Well, rick, i was going to say, i dont know if the personality of the president is playing into the better performance as of late, overseas, Approval Ratings popping on the back of that, perhaps bigger risk is when he comes back home. Yeah. You know, where do i begin . Approval ratings . You know what, if we benchmark Approval Ratings based on where they were the day before the election, that makes a lot more sense to me, but nobody does that. In terms of the coverage overseas, domestic coverage sells more newspapers, we know that, and when it comes to all the issues today with the cbo, if the cbo was money manager, i doubt theyd have any customers. Okay . It just amazes me, whether its what we read in the papers when the wrong on the biggest issues of the century thus far, yet still believe, or when its cbo. Listen, apolitical does not mean accurate, okay . Might both start with an a, but mean completely different things, and their track record is not good. To me, the best track record is something where you take it to the bank and get cash. Those are the markets. I think rob pretty much sum it up right. Thats what i love about rick. Never know where hes going to go. Thank you, rick. You know he gets there. Kenny, why do you think well see profit taking when this has been a market that just continues to and lets face it, a lot of the gains here we see in the averages are the result of some small group of Technology Stocks right now. We start happening a week and a half ago, how much the mood changes, down 370 points, one day, scratching heads, what happened between 4 00 monday night and 9 00 tuesday morning, right . That happened. Whether its a macro event, whether its another tweet, whether its a geopolitical event. It just doesnt feel solid enough up here at the moment. It doesnt feel like theres enough volume, like theres enough guts to it. Arent we, guys, are we undeniably in the middle of a bull market . You can see what you want what about how it feels and the stuff happening now, but its of, the economys expanding, jobless claims good, and the stock rally continues to pay. You know, if you call are you calli inin ining end of recessi the corner, or more that you see, you know, a correction in the market, which would be less severe for some reason, around the corner . At frost and frost, we dont think theres a recession around the corner. Its absolutely undeniable its a long bull market, but bull markets do not die because theyre overinflated. They die because of sickness. This economy is not sick. You cannot, however, argue the fact that equity marketings are pric pricey. Right. Right now, the s p 500 is 50 overvalues from where it was at the peak of the market in 2007. Now, in comparables, get this, right now, World Markets are 20 below the 2012 peak. 10 below, sorry, and 20 below the 2007 peak. What an amazing opportunity if you believe in buying low, right . If you buy global, yes. I think thats absolutely right. To your point, im not necessarily calling for the end of the bull market because i think hes absolutely right. The economy is doing better. As a trader, you know, i think more daytoday short term, whats happening today and tomorrow, and when i talk about the market backing off and feeling skiddish, im talking short term. Long term investor, the markets great. Its a huge opportunity outside the u. S. Just because, like you said, the u. S. Is a little bit overvalued. All right. How frustrating, by the way, as a trader, without the volatility. Right. Im always reminded of something jack said, you can make money and lose money on low volume. Doesnt matter the volume. Absolutely. Gentlemen, as always, thank you. Appreciate it very much. Treasury secretary testifying before the house ways and Means Committee yesterday. Heres what he had to say about tax reform and border adjustment tax. Chairman brady and i have been meeting almost every week since ive been in office. I think were working closely together. Discussed that theres some concerns we have on the border adjustment tax, but were looking forward to attention changes, chairman brady may look at that, but were working collaboratively with the objective to get comprehensive tax reform done. All right. Joining us right now, were always pleased to welcome chairman brady, the chairman of the house of ways and Means Committee. Thank you for the time, sir. Thank you for having me. You know, we get mixed signals on the border adjustment tax. You and speaker ryan believe this can be a a cornerstone of tax reform in the country, yet we hear from the secretary mnuchin and other members of the administration terrorist not. I dont mean to hit you guns ablazing right away, but bloomberg quoted members of your Committee Meeting with secretary mnuchin friday, and she said straight out he does not support it and the president does not support it, and lloyds question to mnuchin, is it on life support and youre pulling the plug on it . Mnuchin said yes. How do you square that with the Committee Hearings this week . Secretary mnuchin in my view is shooting straight with me. You know, its fair to raise concerns. These are big changes in how we tax for the first time. Were proposing e eququal taxat in the u. S. And American Companies compete on a level Playing Field around the world. It is a big change, so we are bringing to the table with the white house and senate sort of how we design this to address those valid concerns, but more importantly, we invite their ideas as well. How do you stop u. S. Companies from moving overseas . Not just manufacturing, research headquarters, all that goes with it, so were eager to hear ideas as well because this is the problem, a challenge that has to be solved. We bring our best idea to the table. They do as well. Congressman, your view that the border adjustment tax is the necessary heart of tax reform . You know, so i think it is critical. Mainly because it addresses a couple key things, levels the playi ining field here and abro for products, get us in an International Tax code into a far simpler one. It not just eliminates incentives to move overseas, but strong incentives to bring supply chains, pa tents, and intangibles back to the u. S. We are going bold for the long run, and thats why i think we should be able to do, have a very generous, very deliberate transition into it, and looking at design changes to address some of the issues. Yeah. This word transition hearing more from you and speaker ryan that maybe you dont hit the economy all at once with a border adjustment tax, but you phase in. Yeah. I mean, its very early in the process, obviously, but can you give us an idea what that looks like . Well, so not to a great degree because we want to have discussions with the president and senate as well, but, listen, weve been listening to those who deal in raw commodities like refinerie refineries, listening to retailers with finished products, Component Parts like automobiles because they all have a different take on this, but as we listen to their concerns, especially when does currency adjust and how much, fair concern, in my view, what we know is transition, timing, and design really can delay concerns in a positive way. Congressman, also curious, so secretary mnuchin seemed to indicate he believes the tax plan could pay for itself. Is that is that view expressed to you, and do you agree with that or think revenue has to be raised in other ways, like, for example, eliminating deductions or other things out there . You have to do both. In the house blueprint, the plan were bringing forward, it does balance within the budget, counting on good solid Economic Growth. We think thats important because, one, we look at the reagan reforms, looking at the others since then. The most growth to the greatest years comes when tax reform is very bold, when its balanced within the budget, when its permanent. When companies can count on these changes because we dont want them just to make a one or two year change here. We want them to feel comfortable bringing those supply chains home to america and making key investments here in the u. S. , so, certainly, in my view, in our businesses businesses tell us in the hearings, that really matters. I have to move on to health care, if i may. And get your response to the cbo scoring from yesterday, which, it showed, as we all know, just the headlines, themselves, the same pretty much the same number of people who would lose their coverage, insurance, and a lesser decline in the deficit over the temperature year period. What was your initial response to that, and what does that do to the chances of this thing passing, not only in the house again, but in the senate this time as well. Yes. So while theres debate about cbo score, what i know is this. This allows us to take the next step, deliver the bill to the senate so they continue to work on, lowering premiums, giving people more options, really getting control out of washington. Giving states a chance to design plans, that right for the regions and states as well. Lowering premiums, more people covered, but i say, look, dont stop there. The senate can continue to make improvements. What we do know does not work is what we got because premiums doubled for people in obamacare, coverage peaked. Its half of what was expected. Its going down. Clearly, transition that starts now when the senate, when we get the bill to the president , is critical. And, congressman, i have to move on to, actually, yet another area thats coming up as well, the debt ceiling. Again, secretary mnuchin want to clean raise that. Members of the House Freedom caucus want that in conjunction with debate over the budget. Whats your preference in moving forward at that point . How important is it to raise the debt ceiling and is the budget a part of the process . Critical we do it in a timely manner, sooner rather than later. I think it is critical that we show reassurance, you know, we continue to pay our debts and be that reliable economy around the world. I did think theres opportunity for making some of the budget reforms, we long talked about here, we have a president who is open to changing the way washington works and how we compile budgets and how we do spending in all Going Forward. I would like to see long term Social Security medicare, critical parts, not just of our safety net, but of our financial situation Going Forward. I really think those have to be serious conversations, whether its in this or that ceiling Going Forward. If were going to save the programs, solve them for the long term. Before you go, if i may, you know, we spoke with you, you know, a couple times very, very early days of the Trump Administration here, and, of course, there was a feeling of momentum there. Do you feel youre losing that right now in order to get this aggressive legislative agenda through for tax reform and Health Care Reform and Infrastructure Spending . You know, in the face of all the adversity the administration faces as a result of the investigation into the connection with russia . I mean, whats your feeling on that right now . So, you know, i dont think we are. Heres why. The beginning of an administration, little like spring training. Undefeated in every game. You have huge potential. So as you get into the season, work it through, and heres where we are at, tackling big issues, so is the president , health cares incredibly complex. Were making progress. This is what i know as well. Everyone seems committed to delivering tax reform this year, in my experience, with the white house and senate in the house, everyones laser focused on delivering bold reform in 2017. Mr. Chairman, good to see you, thank you, again, for the time, sir. Thank you, appreciate it. Kevin brady, chair of the house ways and Means Committee. Dow up 77 points, rally continues. We said intraday highs within moments of the open of the s p and nasdaq. Transports up over 100 points. Interestingly enough, look at russells today, they are completely sitting this one out. They really only just turned positive. They are up a point and a half. When we come back, the money manager whose tech fund outperformed its benchmark without owning apple. Oh. Huh. Best buy stocks surge after blowout earnings. Two leading analysts debate whether its too late to put the stock in the portfolio. Youre watching cnbc, first in business worldwide. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. 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. Welcome back. The tech heavy nasdaq on a historic run so far this year, and, today, hit another fresh intraday all time high. Two stocks pushing it higher are amazon and alphabet, both of them, by the way, approaching the 1,000 per share mark. Wow. Look at them, both almost exactly the same price right now. Thats because i think were showing well, no. Class a. Thats alphabet. Thats true. Im huh. Wow. Isnt that funny . Yeah. Joining us now, josh spencer, alphabet is a top holding, but the fund recently reduced positions in amazon. You kicking yourself on that one . A little bit. Amazons been a very good stock for us over the past couple of years. I did reduce the weight over the course of this year so far. Not that i dont still love the company. I do. But just, you know, thinking about our prospective returns and valuations. One thing we know about tech is its volatile and often makes sense to take money off the table when stocks are very strong. Yeah. Josh, do you prefer an environment where tech is more out of favor, and you can really apply, you know, your research or whatever, you know, your special sauce to finding Good Investments . What happens when it peoples like you look around and everythings moving up double digits here in six months. Well, its presenting a different set of challenges, i guess you could say. I think we remember that tech is volatile if we think back just as recently as the Fourth Quarter of last year, and, certainly, if we think back a year ago in the fears in the market around china at that point. It does present great buying opportunities. Markets like this, i think you have to be more cognizant of valuation levels and actually looking for trim opportunities and really focusing on the portfolio on the companies that the small number of companies that do still have great valuations and great prospects. Let me ask you this, when you make the when you trim the way you did on amazon, for example, or any other company, do you feel valuations . What do you expect to happen then . What do you think happens Going Forward here . Well, theres a lot of things that can happen. You know, one of the things that could happen is the stock can keep going up, and sometimes we can take more off the table, and sometimes were actually wrong. Other things that can happen is the stock is flat for a while, and sometimes what happens is you can have a fairly big pullback. That happens, even with companies where you like the fundamentals. We i have seen so much in tech over the years that ive done it that you know its unpredictab unpredictable, and you can never quite put your finger on what will drive a pullback, and in times like this, it pays to prepare for one. A lot of the names that have been leading the way are the consumer oriented names, whether its facebook, amazon, apple, for instance, but what about the enterprise space, and what about the cloud . Its become so buzzy, you know, theres so many people trying to buy for part of this market. Where do you guys see sort of the best opportunities for the enterprise side of tech right now . Theres a lot of innovation on the enterprise side of tech as well. Cloud computing, which you spoke about, and, in fact, one of the areas where we still see a lot of opportunity, even with stocks up is in software, so Companies Like salesforce. Com, intuit, ultimate software, those providing businessbased software are resilient business models, great Growth Prospects and reasonable valuations. Thats the sweet spot in the tech investing landscape today. You still dont own apple . No. I have owned apple in the past. Way are you waiting for . I missed this latest run, and more you know, a lot of credit to apple and their innovation engine. You know, my philosophy has been that at this level of market cap, its difficult for them to cough out value and grow at the rates we like to see from our holdings, so we favor Software Companies instead, but apple has done really well. Its i dont know, i dont know how you do what you do, Money Managers out there. I couldnt sleep at night, thats for sure. Thank you very much. Appreciate it. Thank you so much. Josh spencer from trowe price. The dow up 73. Points right now with 36 minutes left, s p and nasdaq in record territory today. Yes. Up next, why a money losing Department Store stock is up more than 10 today. And after the bell, we got costco, game stop, ul thta beau reporting earnings. Breaking down the numbers when they hit the tape. Coming up. Sears holdings, one of the standouts today. Right now, up 13 . Was up as much as 32 earlier in the day after the Company Reported its First Quarterly profit in two years, boosted by its sale of craftsman brand to Stanley Black and decker, however, revenue continued to decline by double digits as sears and kmarket, in the same company, experienced weaker foot traffic and tougher competition from the likes of walmart and amazon. Todays jump in the shares does not make a dent in the huge decline steen in the stock in the last year, down 32 . Down 32 . Just saw that there. There we go. Sears up 34, jcp 41. I dont know. I mean, we talk a lot about the problems that retail has, but sears suffered longer. The space to watch is the spinout of sears. Heres some of the closures seen. This goes to the point, its still largely, you know, a land lord of sears property, but it doesnt have to be, and overtime, they have the opportunity to get other tenants this there. As a real estate play, and they could necessarily all pursue the same thing, but it is an area where they are trying. I dont know. They have hands full. Yes. Lets see. Its time for the cnbc news update at this hour with sue. Sue . Kelly, hi, bill. Heres whats happening this hour, everybody. House Minority Leader Nancy Pelosi had strong words for President Trumps budget. This at her Weekly Briefing on capitol hill. The president said im going to be the greatest job producer that god ever created. Inste instead, it steals investments in infrastructure, education. Overseas, President Trump was caught on camera apparently shoving one of his fellow nato leaders out of the way at the alliances headquarters in brussels, putting his hand on the Prime Minister moving him aside to return to the front of the group. Virginia couple successfully gave birth to sextuplets. The three boys and three girls were born may 11th at Virginia Commonwealth University medical center. The couple had been trying to conceive for 17 years. They hit the jackpot. Thats the news update. Bill, kelly, back downtown to you. All right. Sue, thank you very much. I will see you tonight on nightly news. Absolutely you will. Happening this time. Looking forward to it. The dow is up 67 points. S p and nasdaq in record territory. With me on the floor of the New York Stock Exchange, steven grasso. Familiar territory for us both. Oil. Oil. This is all happening without oil today. Oils down sharply. Oil stocks are down. You know, weve been doing this without the oil stocks for a while now. Yep. Look at the dislocation whenever you look at the sub sector, look at the oil remaining in equities, looking up on the charts, they are the leading indicator as far as the underlying commodity. Weve seen it in the past, the equities fall off a cliff and seen the commodity follow, and thats what we are seeing right now. You and i talked about this. Could you ever paint a more bullish scenario for oil . Opec extending cuts nine months. That was somewhat less. Over 5 decline, though . Well, you know, theres been a number of drawdowns, that have been bullish, and thats not done anything to boost it. We had the ipo, biggest ipo in history, thats not enough to do it, so theres something sick about the direction, and its oversupply. And its usa production, so i would not be shocked if you saw a point in wti crude just as getting started. As a consumer of gasoline, i hope youre right. You love it. Love it. A couple good retail prints today in the greatest of things that are not moving the needle, but everything is on track. We took out the 2400 level, talking about that. Yes. Look for the up at 2450, 2500 s p. Heard it here first. Let me push you out of the way. Kelly . Gentlemen, thank you very much. Heading into the close, and the dow hanging on to a gain of 68 points now. Shy of the record close, but s p and nasdaq are in the rare territory, and russell up one point today. Coming up, live to the nasdaq for a check on whats driving the run into record territory, and President Trump meeting with nato allies in brussels earlier today. A former head of policy planning at nato gives us his view on key take aways for the Business Community after this. I think we should do that meeting tomorrow. Well wait. What did you think about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading Companies Lead with digital. Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Welcome back, names like microsoft leading today, unusual mix with travelers and United Health, but anyway, more likely candidat candidates responsible for the nasdaq surge. More on that in a moment, best buy had strong earnings and pbh. Russell 2,000, laggard today, up just one point. A bullbear debate on best buy in awhile, but first, shares of gm trade lower after the auto giant was slapped with a loawsut accusing e ining of it using em defeat devices. Think of vw. This is different from vw in the regard its a civil class action lawsuit. This is not brought by the epa or by a federal agency like the doj. Heres what this lawsuit involves, and, by the way, some of the lawyers involved in this have also been involved in other class action suits like General Motors and other auto makers in recent years. Essentially, they are accusing General Motors employed defeat Devices Software in the diesel engines of the heavy duty pickups, ones with the duramax engine. Gm accused of using the software on 705,000 vehicles. They said they got the number by adding up the number of vehicles, those types of trucks sold between 20112016. In response to the suit, gm said the claims are baseless and we will vigorously defend ourselves. It complies with the usepa standards. Despite denials, shares are under pressure from 2 2. 5 . This is being brought by private attorneys. This is a civil suit of the. This is not bought by the doj or epa. Shares of volkswagen, going back to september 2015. That is when volkswagen said, you know what . We cheated on our diesel emission, and thats what happened to the stock since then. Because of the impact on volkswagen that this entire scandal has had, thats why people are saying, uhoh, another scandal similar, but, again, completely different situations involved at this point. Yeah, phil, thank you. All the same justice suit, fiat this week, justice, and others investigated in france. Its its hard to name somebody whos not drawn up in this eventually. Right. Yeah. We have to go, phil, thank you very much. Phil lebeau with update on gms turn in emissions scandal. President trump is in brussels, belgium at nato headquarters where he talks to nato members for not making financial on obligatio obligations. 23 of the 28 member nations are still not paying what they should be paying, what they are supposed to be paying for their defense. This is not fair to the people and taxpayers of the people of the United States and many of these nations owe massive amounts of money from past years, and i never asked once what the new nato headquarters cost. Well, joining us now from brussels, former head of policy planning at nato, senior associate and director at global, and theres a very long audio delay. Well bear through it as well. Thank you for joining us this evening. Pleasure. Okay. Yes, it is a long one here. This had all the makings of a very awkward nato meeting, the president , famously before this felt nato was irrelevant and planing about nato members not paying the fair share, when all is said and done, how do you think it went today . From what i could see from the outside, i would say pretty bad. Nato sorry, trump did not deliver on one of the things that his people said he would deliver, which is to spread commitment to the nato and allies. I would say a big slap in the face of the european leaders in the speech during the inauguration of the 9 11 memorial, basically, chastised them for not spending enough, so i think dinner was salty. I mean, frabice, the cost of the building, a wide open atrium, serving no purpose, and they said they need more money to do things with it. Well, the best answer to that is if you go and visit the current headquarters where i used to work, and its pretty bad. Most of the offices are temporary offices. They use no money on building sites, so the current headquarters is not fit for purpose. Whether the new headquarters is too big or too expensive is another discussion, but nato, 28 of the richest countries in the world could afford to have a better headquarters. I mean, but do you agree some of the european nato members should pay more or do more to protect themselves, that the United States is overdoing it and u. S. Taxpayer picks up more than they should . I fully agree with the fact that u. S. And nato spend more in defense and they need to issue more will to use what they spend in defense for, you know, creating more security in europe and around europe. President trump has a point, but that point is not that new. President obama was making the same point. The pledge on defensive investment was signed when obama was just president , so i think 2 is, i would say the new political headline because trump made it loud and clear, but the question is whether hes ready to do a deal with the europeans saying, i want you to do more and better, but im ready to show you commitment of the u. S. To europe. Frabice, what capacity do members have to increase spending . Frankly, the big swing state in europe and defense spending is germany. Germany is now spending 1. 2 of gdp in defense. If germany were to move to 2 , it will change the picture across europe. Now europe has a gap of around hundred billion euro that is unspent, and i think germany could fill this gap to half of it. So germanys the key. The question is whether chancellor americale will be able to take trumps message home. The problem is the way he delivers the message, the in your face way is not going to play well with the german voters, and her opposition party, has already made very clear, they think 2 , especially since it coming from trump, is a nogo, so i think germanys the key, but the way trump plays the message is not helping chancellor merkel to drive the message home. Frabice, thank you for staying late tonight. Appreciate the thoughts. Pleasure. Frabice, used to work at nato, and i hear a little headquarters envy there. Wishes he worked in the new one. You have to agree. Its a massive you could play football in there. I know. I know. 17 minutes left in the trading session here. Maybe i have building envy too. Dow up 71 points, s p and nasdaq are in record territory today. And tech heavy nasdaq hitting alltime highs, up to midtown for a live report from the times square exchange. Also, is best buy a best buy for your portfolio after its strong Earnings Report this morning . A bullbear debate coming up. Whos the new guy . They call him the whisperer. The whisperer . Why do they call him the whisperer . He talks to planes. He talks to planes. Watch this. Hey watson, whats avionics telling you . Maintenance records and performance data suggest replacing capacitor c4. Not bad. Whats with the coffee maker . Sorry. We are not on speaking terms. [ male announcer ] tora bora fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. But more important are the faces we will always remember. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced, our senses awake, our hearts racing as one. I know this is sudden, but they say if you love something. Set it free. See you around, giulia welcome back. Nasdaq in record territory, a k have more. Record territory today, kelly, thanks to amazon, stopping a dollar shy of the 1,000 per share mark earlier today. See what happens into the close. If you look at the gains that we have seen in both the s p and the nasdaq, its been driven by the usual suspects. Thats right. Faang. Facebook, amazon, netflix, and alphabet, formally google. Combine them together, three of the four today at alltime highs, meeking up 35 of the nasdaq 100s gain 23 of the s p 500s gains, but look overall with apple, its even bigger impacts. Back to you. All right. Thank you, bertha. See you later. Heading into the close with 12 minutes left, markets strengthen. Other than the russell, up three points today. Dow now at 2121,100. If retail is dead, no one told best buy, the lic electron stock, soaring today. Plug that into the portfolio . Thats a debate coming up. If you have medicare parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement Insurance Plan whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare insurance company. Medicare doesnt cover everything. And like all standardized Medicare Supplement Insurance Plans, these help cover some of what medicare doesnt pay. So dont wait. Call now to request your free decision guide. It could help you find the aarp Medicare Supplement plan that works for you. These types of plans have no networks, so you get to choose any doctor who accepts medicare patients. Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. Shares of best buy soaring today. Last i saw, yeah, up 22 on the First Quarter earnings. Shares hitting an alltime high having the best day since august of last year. The earnings boost attributed to a surge in shoppers spending tax refunds on electronics. That story again. Your favorite. Amazon continues to dominate ecommerce, can best buy survive and even thrive . Joining us to debate, peter and brad thomas from key bait markets. Welcome, guys, to you both. Peter, starting with you because you a bullish on prospects here. You mentioned they are up 22 today, and that brings it back to a level of, you know, of the reality of the quarter, but what about from here on out . Its a very nice setup through the rest of the year and into next year. Number one, we have to keep in mind best buy is a rare retailers today defending itself effectively against amazon. I argue its taking share from amazon. Thats in the retail landscape thats attractive. Secondly, they put up same store sales growth of 1. 6 in q1. That accelerates as the year goes on. A competitor that fully liquidated, adding a point in q2. The iphone is on the horizon, and theres compelling smart phone launches. One came out and one coming into the fall. Brad, admittedly, youre the strongest bear we could find, you have a whole rating. Why are you less bullish . Ill put it that way, than peter on best buy right now . Thats right. Last note called this out as well. The things that would give us pause here from adding to a best buy position at these levels would be, you know, some of the dynamics within the tv category, for example, and moreover, a unique benefit they got from the switch here in the First Quarter. By our math, the switch alone added about 2 same store sales relative to what the comp was in the 40 quarter. We dont think thats going to continue through the entire year here. Peter, im impressed you say you think best buy could be taking share from amazon. What about appliances . This was a surprise area that was good for them, but theres a lot of, you know, theres home depot, sears, plenty of others in the appliance space. Appliances they are doing okay in. Looks like they are taking a little bit of share. Their growth is outpaced, particular ly by home depot, bu step back and remember sears is a major share donor in appliances today. Best buys going to benefit from that, and hh greg was a player, albeit regional, but that helps Going Forward as well. All right. Guys, i wish we had more time, but we have been running late here. We have to run on this one, but thank you for the thoughts. Thank you for joining us today. Thank you. Taking a break, dow up 69, s p and nasdaq in record territory. And closing countdown in just a a moment. After the bell, remember bitcoin . How could you forget it these days . I mean, sure, it took a little bit of a dip today, but this is after weeks of explosive gains. Why investors are jumping on the train lately. Should all investigators . Say speculators. What would benjamin gram say . Youre watching cnbc, first in business worldwide. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders 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. Coming up on the twominute mark heading towards the close, dow up 73. Starting with oil today. This is the puzzle, opec wants to extend cuts for nine months. Set to expire in june. Now expiring next march, and what happens . The price goes down by 5 , but fear not, everybody, we can always come up with a reason why a market does what it does, and everybody says, well, must be they wanted more of a Production Cut than they got. I dont know. Whatever. 48 and change today. The s p and nasdaq in record territory right here. Ill show you the s p. In this case, a lot of traders waiting for them, the market to get above that 2400 level. And, boy, is it now. 2415, you heard steve say, maybe 2450 are his targets at this point, and very quietly, bob, utilities average is close to an alltime high. The previous high was 723. 51 in last july, at 720 right now. Another day like today, we could do it. When you have the tenyear not breaking out, utilities move on the upside. Interest rate environment favorable to that. Amazon and alphabet are in a race to see who gets to 1,000 first. Amazon came darn close early. My bet is with amazon. Okay. I think the important thing about today is remember a week ago we were concerned about President Trumps agenda firing comey, concerns about the rep repercussions of that. What happened . He stops tweeting. Goes to europe. He has lawyers. Concerns did away. I dont know if its going to come back when he comes back. Remember that . Its gone away. Big oil names today, my hichs, bill, we had names rigged. Look at these, down 6 today. Really ugly. We had a rally despite that. We had the rally, the sixth day in a row for the major averages here. The longest win streak since february. Stay tuned for those earnings from costco and ulta on the second hours closing bell with kelly evans. See you later, kell. Thank you, bill. Welcome to closing bell, everybody, a pair of record closes. S p 500 with a record close yesterday, building on that in a big way today with the gain of about 10 points, close to 2415. The nasdaq composite closing at 6205. Thats now the first time the nasdaq closed above the 6200 mark. Meantime, dow industrials not doing too bad itself. 2181, put at 30 points shy of the record high for march 1st, which it has not been able to surpass, and the russell 2,000 we mentioned earlier, but quite the under performer today, closing up a point, less than that, actually, to 1383, well above the closing high. Talking more about all these benchmarks and a bunch of earnings to get to this hour. Were going to bring you results from ulta, gamestop, costco, and lions gate today with a few others too, even as they hit the tape, and joining me for that is cnbc Senior Market analyst, steve santoli. Mike, what do you think, the interesting thing, too, back to your appointment, heres a day where oil and energy did horrendously, yet record highs. This is a market that keeps finding a way. Its not really in a scripted matter where all the stocks go up or defensive stocks go up, but its a huge growth stock leaders not quitting, not at least until they get to four figures in the stock price maybe, and then you have a day like you said, oil struggles, banks are weak. Guess what. You have depressed retailers bouncing, and transports decided to go up for a day. Thats not to say this lasts forever. At some appointment, somebody on this teams going to blow a coverage, and the bulls are going, to you know, give up a lot of points, but not yet. Its important because it feels like so much of the oxygen is sucked up by the nasdaq and tech stocks, but looking at the dow today, United Health and travelers were the best. The climates for ge and dupont. A mixed bag. Biggest surprise is the leadership seen recently has been staples. I think the reason that staples continues to go higher is because of the dollar. Theres a big correlation. Weak dollar helps their profits, so they have horrible earnings. Now earnings are going higher because the kumcurrencys in th favor. Every day they go up. Phillip morris, clorox, they look beautiful. The charts. Day after day. Its crazy. Another positive was energy did not take the whole market with it. It took some of the financials and cyclicals out of it, but did not destroy. Thats because its a supply issue, not so much demand. Absolutely. I like that point. About the dollar index, its at 97. 2. Up at 103. Its dropped substantially. All that said, granted, its a short term kind of move. Its not the kind of thing thats going to create an entire stock market rally, but it sounds like it cant hurt. I wonder at this point, can we talk about this going lower, even as the feds let things roll off the balance sheet. If the Global Economy Shows Improvement like they have, and you have the Monetary Policy changes over there, they are still we are still loose, but getting tighter. They are loose, maybe they get they are still easy and get a little bit less easy. I think as long as that continues, and you see better Economic Growth overseas, i think, yeah, a little bit pressure on the dollarment youre not going to see it collapse issue but it is good for Multinational Companies in their earnings. Speaking of earnings, lets get to lions gate. Results there first out of the gate here. After hours. Heres the numbers. Hi, kelly, Fourth Quarter results for lions gate, a beat by 2 cents on the bottom line, 28 cents versus expectations of 26 cents. On revenue, 1. 26 billion dollars, also, surpassed wall streets estimates. Reading through the press release, the chief executive pointing out that their film slate ended fiscal 2017 with an Impressive Box Office run, Television Group with another standout performance, and starz had a great year. Talking that acquisition, shares of lions gate higherment back to you. Thank you. Back to what john malone said, owning starz, talking about how he thought it was obvious that starz and showtime at cbs could link up and take on hbo. Les moonves was not interested. Right. This is a strategic asset, not an operating business in terms of why you own it. Obviously you want to see them beat earnings and the rest of it, but i think that as the Media Industry is further rationalized, its a pure content creator, and starz for distribution. It seems more as its jockeying what role it plays in the media. True. Where do you see it falling . Its a complicated industry at this point. I dont think anybody knows how its all going to shake out. What i think is interesting is that where are the ad dollars going to . They are not going to the traditional players. They are going to the digital companies. They are going to the pure content players. They are going tosocial. I dont think thats going to change. Own a basket of the socialdigital companies because i think they are the beneficiaries in the longer term. Pick and choose traditional guys on valuation, but i think the trend interesting if you look at the amounts that netflix and amazon spend on creating their own original consent. Yeah. Lions gate is an original dont gate. Compare that equation when whoever gets involved in the game. Like apple flirting with that area. Sure. I just chuckle, did you see the bottom line beat on ulta already . Can you see the comp number . 14. 3 . Oh, my gosh. This is the story in retail, for as much as we talk about how the Department Stores are doing well and, i mean, how much longer can this go on in. A long way. I mean, estee lauder had the key, numbers were very good. Much better than expected. That stock went from 78 to 93. Wow. That was their range, right . By the way, they are selling products now at ulta. This is what we talked about for the last year. People want to have they want to spend money on experience. I view makeup and cosmetics and wanting to be pretty and yes. Taking selfies. Caring for yourself is a trend. I never feel better than after i have makeup on. I have to credit jim cramer with first spotlighting that. Yeah . Absolutely. The selfie king himself. Totally. Im sure. Ulta up 5 after hours, over 300 a share now. Courtney reagan has the results. Here we go. First quarter, company reporting earnings of 2. 05, that compares to estimates of 1. 80. A nice beat there. Slight beat on revenue, comps coming in 14. 3 , and analysts expected an 11 increase, so this actually went above that. Now, the Second Quarter outlook is a little bit weak when you impair to what the analysts look for their range. I will point out, too, the salon sales increased 16. 7 in the First Quarter, pointing that out because that is, again, something not on amazon. If you want your hair blown out or something done in a salon thats a service, you have to go in for that. Kelly . Thats a great point. Im going to confess, i have not been in an ulta beauty place, whatever you call them, and so how much is Services Like the blowout or whatever else they are doing . How much is just the product . Its a combination. Yes, you can get them on amazon, but sometimes when you go into make yum and that thing, you want to test it. Its hard to say what shades there are or colors or what the perfume is like. I think theres an experience part to the store. Now, i do think the services is also very important, and that certainly helps, but the co combination makes sense. Valuation is tough to take. I was going to say that. You know, you cant say all the numbers, performance of the company, but the stock is flattening out a little bit in the last nine months. It was going gang busters, still doing well, a new high in the after hours, right . Yes. Might be in the process of having to earn its way in the valuations. Going from 33 times earnings and 23 times for estee, but more geographic diversification. Thats why i prefer estee at this point. How many people crowd into this field . Reminded me of whole foods coming on. An amazing thing, doing amazing, and everybody copied them, and is this any danger of that starting to happen for ulta . Maybe not today, but down the line . Could be, certainly, sephora did a great job for growth. Its not there are low be barriers to entry, but theres reputations. Ulta greats great products, sephora does too. To be a great player, you need a product line and distribution. Its not easy to replicate overnight. And out of the Department Stores too. Its not like new demand for makeup just discovered. But a piling on of the Department Stores. Yes. Used to be that experience, now its not there, and i remember that, you would bring money to stop at the makeup counter for the makeover experience. Youre not doing that in the Department Store anymore, but at one of these, ulta higher after hours, awaiting results from costco and gamestop among others. Guys, back to best buy this morning as well. How much what i mean, reaction i dont know what to say. Reaction dramatic in the market as it was because the novelty of any specialty retailer kind of actually hitting numbers and looking like a sensible plan gets investors excited. Still heavily shorted stock. Not expensive stock. Sell side is cautious on it. You had all things building together. What you are seeing in Consumer Discretionary is these anointed winners and everybody else is just getting liquidated out. By the way, gamestop closed lower today, i thought it rose in sympathy with the best buy numbers, but earnings are out. Okay. Checking in with gamestop. Nice quarter. Looks like they turned in 63 cents adjusted beating by 12 cents on stronger than expected revenue. 2. 05 billion. Comparable sales up 2. 3 . Analysts had been looking for a decent decline here. Nice reversal. Reiterating guidance, nothing exciting there. Noting the new hardware sales increased almost 25 led by that highly sought after Nintendo Switch on sale in march of this quarter. Kelly . Yeah. Negative reaction in the stock there. Courtney, thank you. Shares down 5 after hours. Thoughts . I have not seen the margins, but hardware mix pressures margins. Get an understanding as to where they are going to bottom out, but i mean, the reason we go back to best pie, they have the products, right . The games. What people spend time doing, and i think what was impressive is they did not have an iphone. They didnt have were waiting for that story. Appliances and theaters. Right. Its housing, its gaming, and then, by the way, down the road, iphone comes out. Right. Thats another tail wind. Couple samsungs up 4 in the regular session, giving that back. Okay. Again, a good stock, valued for extinction for long. Seven times earnings, 30 of sales showing you that any given quarter people say, well, maybe we push out the date of which the models stopped working. Moderating declines after hours too. Watching that, of course, we have earnings from nutanix. Hi, josh. Kelly, reporting a loss here of 42 cents. Street saw a loss of 45 cents. Revenue up 67 to 191. 8 million, better than expected at 186. 5 million. The guide, looking for a loss of 36 cents on revenue, and 220 million, analysts looked for 205 million. They are a provider of cloud based storage and computing, third customer win included caterpillar and sprint. Company ipoed in september. A rough 2017 in print. Down 30 , but its moving sharply higher here in the after hours, back to you, kelly. All right. 5 pop. Josh, thank you. Any quick take aways before we go . Cloud. Just say cloud. The horse one. Now all these stocks are are doing well. Look, new highs. Anything thats cloud. Is that good or bad . But this is a busted ipo. Yeah. Basically, all the hype got the stock to 45 for a second in october, and it, you know, more than cut in half before this number. True, 18. 5 right now, but thats right, just some cloud cloud. Cloud dust. Get it all out. Thank you for joining us. Thank you. Up next, bitcoin boom with a dip today, but the currency still has been tripling in year. Asking the bitcoin investor, brian kelly, whether its k stable. Theres a 2 trillion mystery how President Trump pays for the budget. That story still to come. Youre watching cnbc, first in business worldwide. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Welcome back. More earnings to get to, back over to courtney. I want to check in on deckers because the shares are moving sharply here after hours. This is the Parent Company of footwear brands you know like ugg and tiva. Shares up 11 if i read the chart right turning in 11 cents adjusted. The street looked for a 6 cents loss here for deckers, and turning in stronger than expected revenue at 369 million. Coming to guidance, they are now expecting a loss for q1, but it is smaller than what the street had been looking for, and deckers is giving strong 2018 earnings guidance, ranges that far exceeds consensus, so thats probably the reason we see the spike. Deckers is undergoing strategic reviews, looking at changing the companys structure. A deal is possible. Theres no comments on that at this time. Kelly, back to you. All right. Well, i bought uggs, where the beat was. Assuming thats fiscal 2018 because thats early guidance. Yes, yes, yes. Thats right. Deckers up 12 . All right, thank you. See you in a second. Bitcoin slipped today, down 3 at the lows, and as we know, the story has been the runup. There are people piling into the Digital Currency, and its up 40 this week, and 150 this year. Lets learn more about whats behind this. Joining us is bitcoin investor are you an investor in bitcoin or a buyer . A holder . I like to think of myself as a barren, kelly, like thats the title. All right. Im a bitcoin investor returning a Digital Currency hedge fund. All right. If you invest in body body coin, its not currency, i invested a 5 . People invest in the foreign currency market, thats number one. Number two, bitcoins a lot more than just currency, right . I mean, you buy gold, 5, invest in gold. It could be digital gold. Really, what people are starting to understand is that bitcoin, a lot of the other products out there and protocols are really these foundational protocols for web 3. 0. Still, brian, if youre the long term guy on currencies, you cant like the price action this year, right . Starting to feel bubbly. Isnt that a danger . Yeah. So, listen, ive been in markets long enough to understand, but prices go straight up. Theres the risk that they will come straight down. So, yeah, this makes me more nervous, this price action than price action down at 250 and i was buying it. Now im nervous. That said, were in a bubblette, more than a bubble. Its a price frenzy, but a lot of people have not invested in the space. This is the first innings. Theres bumps, crashes, and booms, but for me, its a long term play. Michael . Brian, i guess in addition to the actual price action, i wonder what youre take away is from the kind of gold rush activity you see, the engineering, the financial innovation attach to this, right . Not just new versions of digital currencies, but coin options and vehicles where people are really rushing to capitalize in the short term. Its interesting. Initial coin offerings or crowd sales via token are occurring, really disruptive to the Venture Capital space, and youre actually seeing a lot of Venture Capital invest in funds like mine because they want access to toke ps. What happens is entrepreneurs rather than going to a Venture Capitalist issue a token that runs whatever program they develop. They do a crowd sale. Some of these things are raising 15 to 20 million in 15 minutes. Its fascinating on a Disruptive Technology point of view. With anything, when you have a rush of money like that, again, there can be bad actors out there, but, to me, if i look at the innovation disruption in financial services, its fascinating. We have to go, but how often is it minted typically . Well, every ten minutes, 12. 5 bitcoins are minted. Wow. All right. Its moving along quickly. Yes. Wondering if scarety played into it. Only 5 million left to be manipulated, taking 100 years. Couldnt they change their mind . The head of bit oncoin . The fed . The gate keepers decide or ways to change that . You certainly youd have 51 of the network to change that, but thats one of the advantages of bitcoin. Theres no ceo. Theres no head. There are some that are gate keepers. We had an agreement between the gate keepers, but, yeah, a danger, but unlikely. All right, brian kelly, thank you. Not the last time we ask you about this. I hope so. Brian kelly there. Meanwhile, costco earnings are out. Okay. These numbers are not in bodycoin, but actual dollars. Third quarter earnings in the 1. 40 adjusted, beating consensus of 1. 31 on stronger than expected revenue, 28. 6 billion. They looked for 28. 54 billion. The comps strong, up 5 , but remember, we still get those on a monthly basis, a number we knew. We dont have guidance at this point. Release is sparse with just the numbers. Not a lot of commentary on exactly what drove this strength here. Kelly . All right. Thank you, court. 1. 8 higher after hours. Reaction from shark tank kevin oleary, a fan of costco . I am, actually. Two ways, as a shareholder, until recently, and also as a client. I sell oleary wines in costco, the largest buyer on earth now. Very professional, incredible logistics capabilities. The stock, in my view, past in my wildest optimism so i sold a fortune of them to keep within my livings, but its a hell of a run, great stock. Convinced you to make square wine bottles to fit more on the truck . Actually the buyer there is a legend in the wine industry. France, the group there, thinks shes the most incredible woman on earth because she has a palette that is remarkable, and the biggest buyer, believe me, even all of them covet her because one order from her is their entire production. Yeah, i bet. Kevin, while we have you, i want to ask about bitcoin. What do you think about, you know, brian kelly called it a bubblette, but the price action is crazy. Your own Canadian Home what we call homeland company, kik, doing currencies on their platform. Whats your take on this . I think these kinds of currencies are going to find their way into a global platform, but the problem weve got domestically is fiduciary. This was brought to the fec in the form of etf and rejected. I wish it worked out because i would like to short bitcopy. I would like to take a short position on a runup like this, and i have no vehicle upon which to do that that fits within my mandate, and so at the end of the day, had this been approved as etf, i could be short. Believe me, that would be good for this product. If people bet the pro and con, its a liquid market. Yet, we cant. The fact we cant get this called a currency tells me its never going to be accepted as a broad based platform until it does, until its accepted that way, and let me short it. Glad to short this thing. That is a great point. That is a point to see if they can move like you said, two sides to a market. Thats one way to perhaps well see it. Kevin, thank you. Good to see you this hour. Kevin oleary from shark tank. Thank you. Were going to give you an up close look at amazons crack at the big apple next. Plus, verizon launched unlimited data plan to stop customers from fleeing to tmobile, but now a Research Firm said verizon may undermine its own network as a result. Thats next. I joined the army in july of 98. I did active duty 11 years. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Welcome back, time for fast take, verizons data plan is a double edge sword for the company. Heavy data use causes Network Performance to worsen, mike, making me wonder, does verizon these spectrum deals to resolve this . Tragedy of the commons situation, right . A scarce resource of bandwidth and they said, no, we have dont have to, but others say they have to buy dish. Exactly. Expensive solution short or long term. Next up, Harley Davidson bet big on thailand, building a plant there for better access to customers in china and Southeast Asia and avoid 60 import tariff as a result. Makes sense. Motorcycles are a rage in Southeast Asia. Go where the buyers are. Especially with that tariff. I think its more of a kind of a headline with political implications as opposed to a Business Strategy that you really question. How could you . I dont know. Not making anymore in the United States. Next up, ibm bringing workers back into the office as we told you about, but, today, the New York Times does the opposite introducing a remote work policy where employees apply to work from home. Maybe its not the end. Certainly not the end. Although, read the memo, it seems theres a certain flavor of codify this, lets get the procedures in a formal way out there so that if you want to work from home, its not ad hoc. Or if you work from home and denied, thats the youre coming to the office. Exactly. True. Finally, a new drone in town, cheaper and smaller than ever, a spark, fits in your hand and costs 499. They Just Launched it, mike, it just makes they already dominate the category. Is this a gopro killer . Definitely it supports the criticism of gopro, a one device trick, but its not exactly the same as the point of view whoever does whatever activity, and maybe thats cheap for a drone, but its expensive for a toy. You know, nobody else, few people make a profit on these drones. Dji is doing well, when do they go public . Good question. Maybe the gopro experience was cautionary. True. Time for a a news update, sue . Heres whats happening this hour, everyone. Nato leaders holding a working dinner as they dpalgather in brussels. There, they said nato summit strengthens the alliance. Greek Police Report the Prime Minister was wounded in a car explosion in athens. He has nonlife threatening injuries. Two others wounded and in stable condition. Former senator leiberman considered for fbi director took himself out of the running. He works at the same law firm earlier this week to represent him in the probe of the 2016 election. 13 years after dropping out of harvard, Mark Zuckerberg returned to the school to receive his university degree. The billionaire ceo received a cheer from the crowd when given an Honorary Degree and addressed the graduating class saying the world needs a purpose, and it is up to them to create it. Congratulations to him. Thats the news update. Yes. Back to you. I wish he had just said, oh, forget it. Ive done fine without it. He has. But it is important. Glad he fulfilled it. Told his mom he would do it, and he did it. Absolutely. That and much more. And, yeah, 400 billion company. Yes. Yes. Exactly. I would say so. Sue, thank you very much. Thanks. See you tomorrow. Hurts to work at tesla, the electric auto makers injury rate is 30 higherment whats going on over there . We have details next. Plus, arguably baseballs greatest ever. Now the contract sent babe ruth from the red sox to the yankees is on the Auction Block. How much one of the most famous documents in sports sells for later on closing bell. Fts say carl, we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Welcome back. Another record day on wall street, s p and nasdaq closed at new highs today, s p at 2415, nasdaq at 6205, climbing above 00 for the first time. As for the dow, 70 point rally not enough to get there, 30 points shy of the march 1 record close, and russell 2,000 up less than a point today sitting today out. Earnings mover after hours, a slew of them, ulta up 3 , moderating gains, gamestop down 6. 5 . Costcos higher by less than 2 , and Deckers Outdoor on a revenue beat from the ugg division up 11 right now. Treasury secretary mnuchin and mulvaney gave different testimony on how President Trumps tax cuts pay for themselves, ylan. Key question, kelly, is whether the white house paid through the tax plan through Economic Growth or raising taxes elsewhere. They bet on growth. Difference from 2 growth and 3 , and the white house said it could achieve is 2 trillion. In fact, those are the numbers the in the president s budget. The problem . The money doesnt go to pay for the tax cuts. It goes to pay down the deficit. Democratic senator Claire Mccaskill talked about the discrepancy today. It was a mistake . It was not a mistake at all. You cant have tax reform as paid for by growth and then count that growth against the deficit. Either its paying for the lack of revenue were getting from the tax reform, or its going against the deficit. You cant do both. Thats beyond fuzzy math. Thats double counting. Defending the numbers today, saying 2 trillion is for the deficit, and the tax cuts with instead paid for by eliminating deductions and closing loopholes, so which is it . Mnuchin promised us its cleared up once the details of the tax plan are released. Back to you. Yeah. As kevin brady, he was in favor of doing budget with the debt ceiling too. Sort of separate thing. Ylan, thank you very much. Teslas seeing higher than average injury rates at the car plant in 2015, the worker injury rate was 31 higher than the industry average. Our phil lebeau has context. Phil, the story caught attention. It does, kelly. In part because when you say, look, people are injured more often when building cars at tesla, people say, what the heck is going on . We have to point out, this data comes from a third party work safe group in california that monitors its an independent agency, not a state agency, and part what has people concerned here as tesla ramps up production, youll see more injuries in the future. However, keep in mind that some of those who advocated for turning toe this Work Safe Organization to analyze data are workers trying to unionize this plant, so there are many who are looking at this data and taking it with a big grain of salt saying, well, is it truly up safe or just a case where workers trying to push for yun onization unionization this is a piece of ammunition to say, hey, come with us and unionize. I wonder if they we have to point out tesla says injury rates is below the industry average in the most recent quarter. We have nothing to back that up, just what tesla said in response to the claim from work safe. Yeah. I just wanted to ask you while we have you, phil, about this new tsa policy where it changes the way we move through security and sounds like its more work to quoteonquote unclutter bags now . Admittedly i was surprised, and im trying to understand what their point is on this. Ligright. If you fly a lot, and i fly a lot, watching people not in the precheck line, look how much stuff is jammed into the bags. The problem, according to the tsa, is that some of these bags have become so cluttered with ereaders, kindles, ipads, lapto laptops, its tougher for the staff to say there could be a potential problem here, therefore, they have to stop the line, pull the bag off, search it again. What they are trying to do by trying out a new system at ten airports is to make people strip out all the lek tropics, put them in a sprit bin, and, therefore, move through the screening machines quicker. The problem is, kelly, and you know this, anybody who goes and flies a lot knows this, people are slow to begin with when it comes to taking things out of their carry on bags. Im questioning it if they remain as slow, if not go even slower under this policy. The only thing i hope is that it catches peoples attention enough to be proactive about it and plan for it to happen, maybe they get move more quickly through it that way. Thats the idea here. Communication. They are warning people in advance this is coming. All right. Or maybe hope springs eternal. That could be the outcome. Either way, well see. Ill try to think differently when i pack. Just electronics . If its just that, i get it. For now, specifically electronics are targeted at ten airports, but theyve left the door open to say they might look at other things, so if you got, like, a bag of fruit in there, that looks weird. I pack snacks. You might have to take that out. There you go. Thank you very much. Phil lebeau in chicago. Amazon stock nearing 1,000 per share, the onetime bookstore killer is new yorks newest bookstore killer, opening another on the way, and its not your fathers bookstore. Were live there next. Also, babe ruth is synonymous with baseball and home runs. The swing eis a hot commodity, and historic piece with the days with the Boston Red Sox is about to hit auction, investing in the babe is coming up. Whats the value of capital . Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley amazon hit an alltime high, 993 is where it closed, even a few bucks above that to the near 1,000 per share, and now the ecommerce giant opens its first bookstore in new york city. This is my dream assignment, but morgan got it. Youre in the bookstore all day. I used to do that at a time warner center, and then they got rid of the bookstores, and now, please tell, they brought one back . Reporter they brought one back. As you mentioned, this is brand new for amazon, located in the same Retail Complex that used to house a borders. I will admit ive purchased some books and gone through the process. This is a first of two plans stored in the city. Seventh brick and mortar location for amazon in the u. S. Right now. It officially opened this morning, and while admittedly, a lot of media and amazon staff and Book Publishers here checking all of this out today, the foot traffic in general is brisk, at lunchtime, lines out the door because it was at full capacity. This is the amazon, and, remember, amazon started as online bookstore, but this is the amazon take on the brick and mortar experience. What do i mean . Theres displays that are full of data, 20 years of online data, the front facing books, meaning less inventory, integration of the app, and perhaps, not surprisingly, generally, lower prices for prime members. That last point is the reason analysts see it as the latest strategy for amazon to grow the prime base, but that said, amazon vp says the reason the company is doing this because customers asked it. The easiest thing to do if you buy online is to get out your phone or be on your computer and buy it, so, you know, i think what woell do is listen to customers and see what they want. Right now, what they love is to be in an environment where theyve got physical books. Reporter all right. Come take a look at this. Its not just books either. You have Electronics Section as well where you have amazon devices like echo. The idea here, hands on experimental experience. Not so different from the apple store. Not surprisingly, amazon not disclosing the longterm strategy, but vp says the company is on track to have 13 bookstores by years end. Kelly . I will be checking that out this weekend. I hope the lines are not too long. Great stuff, morgan, thank you for bringing us inside. Morg morg morganbrenan. Boston red sox to the yankee hits the Auction Block. Find out how much this iconic Sports Memorabilia can sell for. Tonight on fast money, theres one lagging sector that investors have to buy now, and then more closing bell after this. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Welcome back, historic welc piece of baseball has hit the Auction Block and it can be yours for the right price. Its a contract that sent babe ruth to the new york yankees and the origin of boston 86year world series drought. It went up for auction for 100,000 thats the the police they paid in 1919 t. Contract is currently going for over 200,000. We have the 1927 world series, what she is wearing is josh evans, you found want when you wereyearsold, which we just learned thanks for being here. Thanks for having me. Whats the hope for that contract . What do you think is possible . I really dont know the previous and only ever one that been sold is the one from the pirate family owned for a Million Dollars at southbyersou. How much would you be willing to bid for this . Well, its the kind of thing if i were in the market for a baseball of checkables that i would like. It has so much actual significance. Its great to have a world series ring. They get them out every 84. This is a kind of a turning point in the history of the game. I think the 100,000 value of that transaction is a millionandahalf in todays money. It was a big thing. It should rise above that level, you would think. If you look at whats been happening in collectibles or memorabilia, whatever you want to call it or art, something sold for 125 million. It cost 19,000 in 1985 roughly. Well, this contract and this ring were a couple hundred grand back in the late 80s. But these things should be worth as much as those things. Can i see the ring . Absolutely. Can i hold it and touch it or is it better if it stays on you . Its better if it stays on my finger. If you hold it steady there, so people can see exactly what it is that you are holding. This is babe ruths 1927 world series ring. His name is engraved inside, it came from claire ruth. They have been authenticated by anyone. Theyre the real thing. Theyre the best pieces of Sports Memorabilia that have been offered. I sold a lot of it. I never knew about it until i read a back one summer i didnt know babe ruth could be a hall of fame pitcher, forget what he did as a hitter. Theres the book. It is fascinating. Think about what he accomplished. Without a doubt. I guess what the general market is right now for baseball memorabilia, in particular. You did see a little bubble if Baseball Cards. Yes. I wonder other historic am facts. That Baseball Card bubble is still going on, a perfect condition Mickey Mantle 1952 rookie card would sell for probably 10 million today, if anybody wanted to sell i. There were only three. We sold babe ruths 1920 yankee jersey for 4. 5 million. Which is the record. This should breakiment. If it doesnt or discuss, i want the market to respond what it should be. Whats the deadline for pleasing a bid. June 30th. Go to lelands. Com, you can bid, register in advance. Thank you so much for the ring and the contract. Its great honestly for us to see them. Its a great story how you started this company. Thank you for being here today. Up next, the closing bell quiz shows we want to know if Michael Santoli will answer the questions. Well find out after this. My business was built with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Usaa gives me the and the security just like the marines did. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. I count on my dell small for tech advice. With one phone call, i get products that suit my needs and i get back to business. This is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. Welcome back, im going to enjoy this so much. Mike is trying to take off for the long weekend. So what better day to have the debut, the first ever of stump santoli, lets see if we can do it. Question number one, everybody, lenovo says its going o after a reboot. Which company is now number one, is it a, apple, b, dell, or c, Hewlett Packard . Dell. Hewlett packard. Theres a noise. Correct, the answer is c, Hewlett Packard. Question number two, in the wall street journals series today, they talk about how often do mergers fall apart, what is the percentage of announced deal transs aing transs a actions that collapse . A. Correct. Did you know that or did you guess . I knew it. I read the story. They think people thinks. One out of 14 deals collapse. People assume it was higher. Exactly, a whole new strategy, everybody should read the peeps. Question number three, that was very impressive. Amazon sales are closing in on the 1,000 mark. When was the first time amazon crossed on 100 per share on a splitadjusted basis . A, april 23rd, 1999, b, may 9, 9999, or b, december 2nd, 2003 . 99. Yes, correct. Two for three. Which is pretty good. We have a bonus question i think we have a second here, no more multiple choice questions, just have to answer, how many times has amazon split its stock . I can give you one hint. Do you want a hint . Never. No, three times. Three times. In june of 1998 and june of 1999 and in september of 1999. I should remember that, because i was around for all of those. You lived it. I know it went down 90 at one point. I feel you did pretty well for yourself. Not really. Does the surprise money pop roll into next week . I thought it was the charles van duran thing i was going to get the answers. We encourage people to send in their own stump santoli questions. Dont encourage them too much. Before you do head off, any pooshting thoughts on the market as you head out . Look the market has been finding ways to be on the bright side. It says, i dont see big down sides, nudge them up. Something else will come along behind it. I dont see that changing too soon. June, you have to imagine at some point you will hit it in the pock. I want you to come back with some shoe leather anecdotes about best buy or i will do my best. Through channel checks. Channel checks, exactly. Thank you for being such a dodt sport. All right. Michael santoli, the next edition of stump sandoli will be when you get back. Thank you for watching. Fast money begins right now. Fast money sfartarts right n overlooking new york citys times square the traders are tim seymour, guy adami. It is the battle as amazon and google race, which behemoth is the buy . General motors and ford under pressure as a new lawsuit drops on one of the vehicles, a pickup truck. Later, bitcoin stories, all time high, today, before coming back to earth a bit. Much behind that wild ride,