Transcripts For CNBC Closing Bell 20170602

Beautiful sunny day in new york, and we have another record day for stocks, despite a not so stellar jobs report this morning. Were going to look at whether this is still an opportunity to buy in this market coming up in a little bit here. Its kind of a peppy song. We can just play it the whole time. Sure. Walmart shareholder day is underway right now. We have fresh remarks from the ceo in a few minutes. Google is out with details of its new ad blocker. We cant wait to talk about this, one option could be paying to see content without any ads. Wonder how thats going to play with certain millennials. Theres a lot to unpackage in that story. Life after professional sports, Franco Harris and Charles Smith from the nfl and nba respectively will join us from the exchange talk about transitioning into the Business World. We always ask our celebrity guests what their biggest money mistake was. Charles smith has made it his mission to help professional athletes transition into life after athletics, so they dont have the big money mistake that often they have. Weve heard so many stories about this, these guys are helping to try to for the next generations, try to help make better decisions. Theyre ringing the closing bell today, thats why theyre here. We begin with a disappointing jobs report this morning. Steve liesman has been youve been combing through the data, steve . A cheap pun on the part of the producers, i think, bill. Yes. Kelly can comb through the data. Big old horse brush to get through. High fly through, or whatever. There is a debate, guys, i want to talk about the debate, a sign of a weakening or strengthening economy and labor market, some quists say we only have 138,000, were looking for 134. The jobs created, the labor market is near full employment. The labor market near a 10 year low, as is the broader measure of labor slack. That includes the unemployed and those who cant find full time work. Relative to the past, you can see right there, the job market looks pretty tight. The lack of workers and modest Economic Growth are holding back job gains. Philly fed president Patrick Harker called it good jobs number and thinks the fed should hike twice this year and reduce the Balance Sheet. You can see the probability went up. It was as high as 90. The probability of a june rate hike. No dissuading of the idea that the fed is going on its appointed route. Speaking of the fed, National Economics council director. Asked this morning on sidewaqua the street if hes interested in being fed chair zm. No, i have a great job right now, serving the president , its been a dream come true. I come into work every day, and im excited to be in the white house. Another guy who cant comb through data there. His name mentioned to replace janet yellin, whose term is up in january, guys. This was a tough report, it felt like everything you wanted to see move in the right direction went the other way, and you know treasury yields fell, and the stock market is rallying, the headline unemployment number was the lowest since 2001, the details werent that great. The u6 came down to 8. 4 . And the Participation Rate fell. You are right there, so many cross currents in this report, it would be good for fishing, not necessarily for making much sense of the data. And you know where my mind is on friday. I was just going to say, speaking of which. Have a lovely weekend. Lets get to our Closing Bell Exchange with record territory today. Quincy crosby from Prudential Financial is here. Rick santelli checks in from chicago. Jeff in cleveland, i keep hearing, this is the kind of report you get when you have a tight labor market. Is that what youre seeing here . I think we are getting close to a tight labor market, bill. Were at 4. 3 on the Unemployment Rate. Thats the lowest in 15 or 16 years. I would say, though, i did comb through the jobs report, and that u6 measure did fall, its at 8. 4. I think it has further room to fall, bill. It could get down to 7 in this cycle. At that point i think we would say were at a much tighter labor market. Were getting close, this is a good step in the right direction, were not quite there yet. Is the market rallying, because it looks at it that way and says, hey, a tighter labor market, these are things that happen in a growing economy . Or is it looking at it as, its less likely the Federal Reserve is going to hike rates this year. Is it the good or the bad they like . Its probably a mixture of both. The fact of the matter is, earnings have been very good, and the expectations for Second Quarter earnings are actually, its going to be at least solid if not some sector, some companies doing extremely well. Plus, you have tremendous liquidity still in the system. You have the European Central bank that has come out and said, we still need accommodation. You have the bank of japan and a fed that uses the word gradual more times than any other fed chair in his history. Ready, aim, aim, aim, aim, aim. Exactly. Its still accommodative. The fact of the matter is, the data had been mixed, but starting to see some of the data picking up and gaining some traction. So heres what happens. Just today, you take a snapshot of today, you have the major averages in record territory, and you have the yield and the ten year at its lowest level of the year. Whats the message of the market there . The spread between the twoyear and ten year is down to. 8 right now. Thats why the financials were in the hole. You see where oil is, energy is in the hole. The market is rallying, they no longer believe beyond june the fed will be able to raise rates. The probability is for a second rate hike after june down to 24 . Why is the stock market going up . Because of these fundamentals quincys talking about . If earnings are that good, why won the that be a big factor . Quincys increased liquidity. And low Interest Rates are conducive to higher stock prices. Their agenda is counter to a proper move in the stock market or a forward move in the stock market, except for the financial sector, which is where we saw all the move, when donald trump was elected. Thats why the financials had a nice run through february, and then it ended. Now its starting to come back in. Now youre only in the space because you want to stay diversified. Its possible the bond market is wrong here, i mean, the bond market got a little too enthusiastic after trumps election, with the visions of fiscal stimulus and what that might do to the economy, the 10year yield rose dramatically. Now the market has moved the other way. The market is talking about slowing and weakness in the economy. And thats much too pessimistic of a scenario priced into the bond market, perhaps thats a story here. Yeah, i was going to kind of ask you to key in on this, this is your bread and butter. Weve given you a lot to think about here. You can only look at the tenyear Interest Rate and what does that tell you about the economy, youd go, oh, geez, things must have weakened in the last couple months. You can only look at the stock market. They go, geez, things must be great. So what is the answer somewhere in the mid snell. I think the answer is for sure in the middle, but i will continue to say, if you want higher rates in the tenure, just get the fed to reduce its Balance Sheet a little quickly. Get the bank of japan to lighten up, i mean, it really is that easy. Ill give you an example, everybodys making a big deal about the curve and signaling a recessi recession. I will tell you this. As wide as the yield curve was was december 22nd many it was 135 basis points. You know where the twoyear was that day, 120. Its moved eight basis points. The ten year was at 255, its now 40 basis points lower. What are most central bank concentrations on in europe . Mostly the end. That isnt the only reason, the fact that some Central Banks are buying, and stimulus travels around the world real fast, also the notion, our central bank keeps investing the runoff. The quarantine and the way they now do a market operation. Dealing with the Balance Sheet, paying interest on reserves, all these things i think are taking that signal, the guests are right, the bond market may be wrong. Harasscy, thats not the bond market thats wrong, its the bond market in its current form. Its been managed, its been manipulated. I think the stimulative aspects were discussing are good for stocks. It did have a good earnings season, and i think there was a spark in november. Not necessarily whats going to get past, but the notion of what will not get past in terms of regulars and all things. Youve heard me talk about that before. The other thing nobody talks about is the pav lovian theory. This market keeps going up, those that buy and hold are getting rewarded. Dont underestimate that dynamic or how long it can run. I was going to say, money goes to where it is best treated. Until it isnt. Its been best treated in the stock market for years. Last week we talked about 25. 05. If we did that, look out above. Thats happened, now what . The number i called for the high of the year is 24. 65. Were not really that far from that number now. I think thats clearly within 1 or 2 trading levels of here, we could reach that this quarter. No problem. Now, rick mentioned recession. If you look at all the housing sales, each level existing, new home sales pending, however you want to measure home sales. They all came in kind of lousy this month. Cpi, kind of lousy, 24 data points came in negative or disappointing this month. Clearly the economy is slowing down, im not ready to call recession, but you should be worried. Of course the stock market would be at all time highs . Where are you going to go . I hear you, you keep hearing that. I would love to continue this conversation, this is one of our favorite groups, we love having everybody here but we have to go. Have a good weekend everybody. See you later. Thanks, bill. Heading into the close, 50 minutes to go, and look at this, another day in the markets. The dow is up 21,000 for the first time. The s p 500 is up, the nasdaq is up 53 to 6300, touching that round number. The russell interestingly enough, its making up underperformance. Still about 10 points off its record high. The dichotomy continues for retail, as good as the stock market. As retail is suffering, this time its Restoration Hardware. Restoration hardware went soft. Well have details on that coming up next. A couch el sports greats will speech with us here before ringing todays closing bell. Nfl hall of famer Franco Harris and Charles Smith. Theyll talk life after sports in the Business World, youre watching cnbc first in Business World wide. Theres nothing traditional about my Small Business. So when it comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well, that it feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. 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. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance walmart shareholders are making their voices heard, amid a new Company Initiative which always surrounds walmart. Courtney . Reporter its been a really busy week here for walmart Global Executives and their employees. Which serves as a nice reminder what a strong business voice walmart has not only here, but globally. Doug mcmillan is on President Trumps advisory council. He was not in favor of leaving the paris climate agreement. Hes disappointed about the decision, but he intends to stay where he is it on that council. I do not plan to withdrawal from the forum im participating in in, i would like to participate, and there will be other issues that will come up. I didnt expect what we wanted to happen, what happened in every case, but engagement gives us a chance to do good things and share a point of view. I want to keep doing that. More specifically for walmart, the bulk of the week has focused on technology. Todays focus changed ever so slightly. Yes, there was definite celebration for the years successes, the surprise celebrity emcee was blake shelton. We had performances by mary j. Blige and neo. The Technology Advancements walmart is putting into its stores and online systems is meant to empower the employees but not replace them. Thats what falls in line with the testimony yesterday. Walmart spent 2. 7 billion investing in inch with as in Training Programs for employees. It does seem to have helped moral, which may be part of the reason why were seeing more efficient workers which is leading to higher sales. It all probably plays out hand in hand, there were a lot of topics that were covered this week. Kelly . Im curious. Did they request the employees if that was a good idea that they deliver packages . Do they get paid extra . Do we know . I sound like im being flippant but im serious. We know the answers, im glad you asked. Its a voluntary program, three stores, two in new jersey, one in arkansas. The employees can choose if they want to make a little extra cash. The idea is they do it on the ride home. If they decide that day, thats something they want to participate in, they sign into this proprietary app, that walmart has built for this purpose, they enter in where theyre going, and along their route, little markers will pop up and show them possible deliveries they could accept. And they drop off those packages on the way home. They are compensated. Walmart didnt explain if its a flat rate, per package, or hourly, but its completely voluntary. I think it could make i think this is i just guess the employees will embrace this. They can only make ten stops on their way home. It has to be on their way home. Thanks, courtney. In the meantime, Restoration Hardware getting hammered at the rh post somewhere. How bad does it look now . Im here at post 8 where the prices are made for Restoration Hardware on the floor of the exchange. If you look at the floor of the exchange right now, where we are here at gts. The shares you see down by 26 . Shaving 25 of its value off just in trading today, if these things stay the way they are, we could be on pace for the worst day weve ever had as a public company. Restoration hardware largely met and exceeded some of the Sales Estimates that were out there, its the forecast, four full year profits that was lowered and has gotten people a little more pessimistic about whats happening. To be fair, shares had gained 90 year to date. There was a huge amount of optimism about this company and wage it could turn things around, the stock had taken a rollover, and this year, people had gotten right back into it. The issue now is whether they can make the model for them work. What they are trying to do is trying to move to a membership based model, rather than getting sales for labor day, sales in the mail for coupons and that sort of thing, theyre going to want to have people pay 100 dollars a year, and that gives them access to 25 off sales, 20 off sales and that sort of thing. Its going to take a while to get people to adopt that fully, but the attempt here is to try to be as unamazonable as possible. Trying to get customers to be a little more loyal there, and use their showrooms a little more effectively, rh shares certainly a big retail focus today. One of the stocks thats going to be talked about a lot. If we see these gains that have come so far this year, we could be due for a worse fall. Some of the discretionary stocks out there this year are retail names. Back over to you. Thank you. Ill see you on the close. Coming up in a little bit. I have a humble suggestion for them. To save money, stop sending out that phone book, the catalog. Have you ever seen that . I feel guilty, i take it, i drop it in the recycling and i still feel guilty. The mail carrier must have back problems just from that alone. Were heading to the close. The major averages in record territory. Any green for the top three will be record close right now. Golden state warriors players are winning off the court too, and in Silicon Valley no less, well have the details coming up next. Nfl hall of famer Franco Harris and Charles Smith, get us up to speed on their latest Business Ventures when we continue after that. S my headqu. This is where i trade and 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 to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com when this bell rings. It starts a chain reaction. Thats heard throughout the connected Business World. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. We are told the pyramids werewhat was that . Ombs. Nick [ gun shot ] but the truth is. Theyre prisons. Do you have any idea what you have unearthed . [ suspenseful music ] who are you . Shes unlike anything weve ever faced. The mummy. Rated pg13. Experience it in imax. Welcome back, blowout ratings in game one of the nba finals last night. The Golden State Warriors beat the cleveland cavaliers. Some of the golden state players are also big tech investors, its right on their doorstep. Kevin durant led the warriors in that win with 38 points. Its the performance report that also caught our attention. K. D. Invests in a number of Companies Including a food delivery startup. Andre iquodala holds a stake in truman. And Steph Curry Co founded a Company Called slyce. Power brokers were at the game last night cheering on their team. Warriors owner and venture investor, the warriors Draymond Green says thats who he looks to for investment advice. One of my men tours, hes amazing, he teaches me about so many deals, its not even about investing, but just learning, and then all of a sudden you can see trends and whats which companies are doing well, which arent doing so well. Now, the benefits can be mutual of course. Players create portfolios of investments that could generate returns long after they retire. Kelly, back to you. Hang on, franco, were getting there. Hopefully there will be more to come sunday. This weekend the Sports Entertainment conference. With us right now is the organizer of that group Charles Smith, former nick. When i had season tickets they are good. Along with Franco Harris, the great days well steelers there. Good to see you both. You have to be taking notice with what some of the warriors players are doing. What youre trying to do is help these players after they retire after their pro career. Thats why were here, were here to change the narrative that there are eye lot of athletes and entertainers doing very well, beyond their peak earning years. We have champ bailey in the trucking business, franco has been a great mentor to all of us, we have other athletes, wade baldwin and lance thomas who are current players in the nba coming to learn and understand whats going on. Its a great environment. We have corporations up there, stewards, we have fifth third bank, other executives up there that are talking. We have a great environment that fosters education. You know, franco. After 50 cent made so much money with the vitamin water, it seems every guy wants in on the possible next great deal. Do you like it when these players invest in these Startup Companies . Thats pretty risky. We invested in penny stocks. Im glad theyre getting into it now, because i want them to get into that business end. Its investing now, that hopefully once they retire they will look at being entrepreneurs and starting their own companies. How did it happen for you . Mistakes i made, and you start to do a little education, how did it become so important to you . I always love business. And to me, its all about business, and you can do so many things, when youre in business and after business. You know, you can help your life, your community and do so many other things. Im a big believer in business, and i support it all the way. The players have to come to you. We heard these Horror Stories of certain players that blow through hundreds of millions of dollars and theyre left destitute. And nobody seemed to be helping them when they were coming out. Do you go to them or do they come to you . Ive been doing this for 70 years now, it goes both ways. The key is like you said, you have to be a trusted adviser, but more importantly, theres a lot of guys out there that can make money off of their brand and name recognition, if they took care of it. I call it personal currency thats been spent. I get them involved in companies. They can make phone calls through Business Development and get involved. Theres a transition of understanding what to do and understanding correspondent culture. They dont know who to trust to begin with. People are coming at them like theyre presenting opportunities, it sounds so good, and too good to be true, and then it turns out it was, right . We have companies there that their brand, their relationship, what they do is just as important to them, and their reputation. We have executives that come here that are pristine. Theyve been out there for a while. They are not going to do anything thats going to put the athlete in a bad position. What do you say to the New York Knicks . Phil jackson, carmelo anthony. By the way, weve talked to carmelo in the past about all his tech investments. Hes got other problems right now. This is a franchise that needs some help. I wish lance thomas came from upstairs and he was sitting in this seat. The best i can say is that im a knick for life. Its a tumultuous situation in there. The 7th pick in the draft. 7th or 8th . Im not sure. I hope its the right pick and we can move forward with that. From your lips. Fingers crossed. Got to go, guys, good to see you. Were going to be ringing the closing bell today. Talking about their sports, business and entertainment conference. Its time now for a cnbc news update. Heres whats happening at this hour, everyone. Kathy griffin and her lawyer held a News Conference to discuss the backlash over griffins mocked up bloodied image of President Trump. Griffin says shes received Death Threats and has been contacted by the secret service. I dont think i will have a career after this. I think he i think he i think he im going to be honest, he broke me. He broke me. He broke me. And then i was like, this isnt right. Its not right. I apologized because it was the right thing to do, and i meant it. Gary shultz have been sentenced to two months in jail for failing to report a sexual predator, Jerry Sandusky to authorities. Tim curley was sentenced to three months, the rest of their sentences will be home arrest. If passed in the senate, the bill would repeal the states 67yearold daylight savings time. It would go on a ballot. Bill, kelly . Im very much enjoying this. Yes, i know. The only thing more impre impressive. He guessed my height. Just looking at her, he guessed her height. Accounting for the shoes and everything. Youre 610 . Yes. Franco, how tall are you . Only 63 . Ill stand up, ill stand up, thats fine. I got no problem with that. This looks like my prom picture. Im among the redwoods here. Im always in the back of the prom picture. Well take a quick break, we have 28 minutes left. Some Senate Republicans are considering a tax on emEmployer Sponsored Health plans, how close they could come to fruition with that. E does nobody like the future . Cmon, the future. He obviously doesnt know intel is helping power Autonomous Cars and the 5g network they connect to. With this, wont happen in the future. Thanks, jim. Theres some napkins in the glovebox. Okay, but why would i need a napkin . You could have just told me a bump was coming. We know the future. Because were building it. 25 minutes left in the trading session, with the dow up 67. In record territory. Joining me on the floor of the new york stock exchange. I know what youre smiling at . It was two things. Im a raider fan, and the immaculate reception was you havent forgiven him . No, i still dont forget it, my brother beat the hell out of me right after it happened, hes a steeler fan. This says youre short. Youre still short with this market hitting record highs here . Yes, i am. Maybe at some point im going to tuck my tail between my legs and say, you know what, im wrong. I dont think im wrong. We still have a market thats way ahead of where it should be. The way the market is acting, you would think the gdp was 3. 3 . You dont have the tremendous job growth and wage growth that people want. Whats going to be the trigger thats going to recognize what you already see . I think its going to be an outside, some sort of outside stimulus, the market is not teetering, but very, very its not the strongest rally ive ever seen. I think if you have a geo political issue, maybe a political issue in the u. S. , something again that could turn peoples opinions, i think that will happen. And i think thats whats going to send it down. You do have sweaty palms right now . Kelly . Thank you, guys. Senate republicans are weighing whether to tax Employer Sponsored Health plans. Kayla, what are the chances this actually happens . The senate is throwing a lot of ideas against the wall at this point, and theres a reason theyre talking about this, what republicans want, they want an Insurance Plan that not oath lowers premiums for participants, they want insurers to participate profitably, and they want the plan to cost the government less money, they need to find 119 billion in savings to squeeze it through the Senate Reconciliation rules. Taxing Employer Health plans would give them back the largest single tax expenditure the government sees. It would bring them back 260 billion. Anyone who receives a Health Care Benefit through their employer, the majority of people who do that, that money is excluded from taxable income, its a generous benefit, offered to people who are at companies who have these employer sponsored plans, but its something that republicans have been cautious about even touching, because they feel that that incentivizes people to actually go to companies that offer these benefits and not to participate in the government sponsored systems. They some of them we talked to say they worry that this actually makes any government sponsored plan affect even more people than it potentially already does, because it would touch the 177 Million People who get these plans through their employers. I talked to a bunch of gop aides. There wasnt really any consensus at all about even how serious the discussion of this topic was. One spokesperson for mike lee said that he was open to it, but would need to see details. Other gop aides acknowledged it was boeing discussed 37 they wouldnt say how seriously of an idea it was being treated right now. This doesnt sound like its going to happen any time soon . Your guess at this point is as good as mine. Despite the fact ive been reporting on this for quite some time. We heard hhs secretary price say that he thinks this can get done by the senate, a bill drafted and passed by the august recess. Other Senate Republicans have a more ambitious goal at the end of this month, i want to play for you what senator richard burr told reporters earlier today. Hes on the Senate Finance committee, which will have a heavy hand in this Health Care Reform package, that the senate eventually takes up, hes not only pessimistic, hes going to be focused on making the Affordable Care act workable in the near term. Listen. I think its unlikely that we will get a health care deal, which means that most of my time has been spent trying to figure out solutions and things that we can bring to the table that both aid the Exchange Market or transition it to something thats life after the Affordable Care act . Not only do you have broad consensus on what contours will be in this bill, that is reportedly being drafted this week while the senate is back in session. But you also have this lack of consensus on even timing when its going to be done, guys . When and if. Its out there now. Kayla, thank you very much. Good to see you, kayla. 20 minutes left here, we have the dow up 72 points. In record territory. When we come back, truckers beware. A tech giant could put Long Distance drivers out of work some day, well explain. The power of the nasdaq market. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. 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. Tus a few market movers, broad com hitting all time highs, making it one of the best performers in the s p today. Broad coms wireless revenue jumped by 45 from the same quarter last year, thanks to a quicker than expected ramp up and an improved iphone 7 cycle. Our partners at m cam also cite broad coms place in the cnbc iq 100. For more, you can learn at cnbc. Com. Buffalo wild Wings Trading higher. Sally smith plans to retire before the end of this year. Jerry rose announces the annual meeting, delayed by about an hour. Shareholders are voting to elect various directors. Mcguire to the slate of the board. Lets talk about blue apron filing to go public last night. Its filing the Meal Kit Delivery service and plans to raise 100 Million Dollars. Ticker will be aprn. Youre the closing bell cook, what do you think . I think they are wise to be doing it right now, i think the timing is good for them. This is a very, very fractured market. Think about this, the delivery the Meal Kit Delivery business is what they do. Is a billion and a half dollars a year, in their sec filing, they show that they accounted for half of that revenue last year all by themselves. They are clearly the leader in this market. Thats just some of the competition. Theres a huge amount of competition, so very fractured market. Its going to be consolidations, they cant va all those businesses low barriers. Heres what took out to me. Blue apron pays 94 to acquire a customer. Marketing was a quarter of their revenues in the first quarter. They made 799 million in revenue, they lost 54 million. Im afraid this isnt a viable long term plan. A lot of people sign up with us. We personally, im among the meal kit signer uppers. Its working on self get this selfdriving trucks. The company says its expecting Autonomous Vehicles to take over Long Distance driving in the coming years, humans would handle the local pickups and deliveries. Id buy that one big time. He doesnt buy selfdriving cars, he would buy selfdriving trucks. I also like this, this is saying, we dont need auto, we dont need to be uber, whatevers going to happen with that lawsuit, were doing it our way. We have a consensus on that one . Yes. Google plans to roll out an ad blocking tool next year for chrome users. The Company Giving them six months for tools they already use and would be blocked by google. Google will also let publishers an option where users can pay to remove apps. Theyre stuck in a box right now. They make money off those advertisers, now theyre going to include an ad blocker . Thats countrier productive right there, i get what theyre trying to do. Would pay for that service where you dont have to have ads . I think i would. I hate the internet so much. Its completely unusable. I cant read a simple article without how many people expect things to be free on the internet. I dont any more, and im willing to pay for a better experience. Not a lot. If its going to be 2 a month or a year, that would be better, how is that going to compensate publishers, this is a huge deal. This is a big deal. We want to hear from you on these fast takes. Be sure to follow closing bell on social media, i know kelly does that a lot. And you can send us an email, theres our email address. Well share some thoughts as long as theyre not just more rantings. We dont get that kind of stuff. The dow is up 51 points. David will give us his sunny take on the market after this break. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov 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. The market on close order is 750 million to buy. Thats the buy right there, the dow is up 51 points as we head toward the close. The s p and nasdaq also in record territory. Thats the biggest number weve had in a while for that. Yeah, except at the end of the month two days ago, for Something Like that on a friday . We could have a rebalancing that day. Thats true. Joining us here, friday. We have our friend the independent investment consultant. Theres the word sunny in that song somewhere . Thats right, yeah. Were getting longer days in the northern hemisphere, were coming up to the summer equinox as you know, and the temperatures are increasing, sunny is what we want to give as a market theme acronym. Priced to book, priced to earnings, priced to sales and Warren Buffetts favorite measure is very near a record, which is 133 of gdp. You want to be careful here. We like europe, we like emerging markets still. More than the u. S. The u. S. Dollar, down 4 1 2 , its followed Interest Rates down, thats a good thing, its a moxie to the economy. The n is no drama economy. You have corporate profits, you have the philly fed, you have the Chicago Purchasing Managers index. You have the ism manufacturing. You have house prices, all of those things are helping. Gdp now, 4 expected gdp growth for the Second Quarter. On the negative side, of course. 12k3w4r thats the other n. That is no to Paris Climate Accord. Thats the other n. King henry the fourth of france once said in french. Paris is worth a mess. He changed from protestantism to catholicism and wrote the edict, reducing religious persecution of protestants. This is going to be on the mid term, pay attention. And we have no to the climate board. I would say over the last five years, the United States is down 250 million tons of carbon emissions, while our friend china is up by 1. 1 billion. Read todays wall street journal for the other side of this. I love the very tree ole, if you were looking for somebody to get you off the subject of russia, why not say im not doing paris . Thats another paris is worth a mess . Why . Why . No, i mean, why . Janet yellin and Interest Rates and yields. And the fed has said, were going to take it real easy. Thats been followed all week this week, with the jobs numbers, i think are going to keep it low. Still a good chance of raising Interest Rates on june 13th, 14th, a twoday meeting. Very good. You got it all in. And it keeps the clouds away. Yes, it is a beautiful day. Stay with europe, stay with emerging markets, theyre doing well, and theyll continue to do well. Thank you, david. Well head to the close with everybody in regular territory, i have the closing countdown in a moment here. Coming up, why advertisers and users might flinch at twitters new demographic tool. Youre watching cnbc first in Business Worldwide. When this bell rings. It starts a chain reaction. Thats heard throughout the connected Business World. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com just inside the two minute mark, as we head to close with everybody in record territory. These are weekly charts were going to look back on. As we get above 24. 05. That was resistance, if we can close above that, its pick your favorite number above that. That seems to be whats happening here. Today were at 2436, weve been hearing 2450, 2468. Were in all time high territory. In the meantime, were at the lowest level of the year right now at 215 and wti, that went up by another 11. I saw the baker hughes number. 20 straight weeks. Were at 40, 46. We didnt hit 45. We did get to 46 and change. About 46 and three quarters i want to say. Were a dollar better than that right now. The interesting part of that oil trade. He said, below 49 things could get ugly. Were below 49. Well see if that down trend continues. Meanwhile, the fear indicator, the low for the year, the second time weve been here, we were below that a little while ago. Speaking of the down trends as well. One of the things i thought was going to be a bit more of a story today, that dn turn out that way, the yield spread, keeps coming down lower since last fall, you would think that would hurt bank profitability. Hasnt materialized as much. Well see if the banks bounce back a little more. We have records again for the dow, the s p 500 and nasdaq. We still continue to ring our hands. What do you know . Charles smith ringing the closing bell here at the stock exchange. Stay tuned for the second hour of the closing bell. Thank you, bill and welcome to the closing bell, im kelly evans. The dow added 52 points to close just under 21,200. Thats a new round number level. If you will, that it reached during the session today, a gain of a quarter there,ed s p 500 up a third of a to 2438. Thats a new high for the s p as well. The nasdaq composite adding nearly 1 , to 6305, thats not only a record, its the first time the nasdaq has closed above 6300. The russell 2000 is making up for some lost time. Its the only average of the majors were showing you there, which is not at record levels. Still about 14 points shy of the record level set back in 06. Yesterday President Trump announced plans to pull the u. S. Out of the Paris Climate Accord, coming up, well talk exclusively to the ceo of Laredo Petroleum, how it could Impact Oil Prices which are down 4 this week. Joining me on the panel, cnbc senior markets contributor, Michael Santoli. And managing director and Portfolio Manager for sneed capital management. You call this a believable breakout . I think a lot of people believe it, that there was some follow through today. When i say believable. We were sort of flirting with that level for so long. You got above it one day. Were still sleeping on it, another day. It basically, once you got enough people to say, i guess its not going to roll over here, i guess you have a lot of automated navy. Thats the effect you get with a technical breakout. That being said, whats otherwise driving it . I dont think the jobs number changed the picture very much. Definitely not an economy that is accelerating in a hard way, that much you can say. I think what you have is the low and slow environment thats accompanied most of this bull market, thats why Growth Stocks were the only things working. The Growth Stocks working. The trade, lets call it big cap, new tech stocks. Evan could rally another 20 to 40 before year end. With those stocks, youre already at relatively nosebleed evaluations, youre also in in an environment where it doesnt matter, meaning they are well run companies, they generate profits, theyre growing. The only argument against those stocks, is the evaluation argument. Is it Something Like microsoft, the value i know its probably a higher multiple than in the past, but its got higher growth . No, not really. Those stocks are all up, google, alpha get is up 25 . Thats 125 billion this year alone. You have, with those four stocks, you have 600, 700 billion of value creation, without that much changing in terms of their earnings prospects in the last quarter, what has changed is the environment that the stocks keep going up. And they can keep doing that until some point, you know, it breaks. I give you one stock, adobe is a 70 billion market cap, year to date, adobe is up 40 . Over five years its up 500 . It trades at over 10 times sales. Is it overvalued . Yes. Does it matter that i say its over valued . Absolutely not. Adobe pulled off a historic transition of its Business Model but inspired the next wave of software. The entire world appreciates that and a bit of plotting for a couple years. You can create any argument to justify valuation. What you cannot do is take back the fact that you bought amazon at 1100, when its down at 900 two years from now. Its not those stocks to the exclusion of others. Its not just there are 99 new highs, 52 week highs in the s p today. Some of the Companies Trading at all time highs, its not just the usual suspects, Carnival Cruise lines, darden restaurants, colgate pal malive. Cboe. United health, j j. United airlines. Those are all Growth Stocks. Basically, this Sherwin Williams . Housing, growth. All this year, all this year theyre two areas you would not expect to be left behind that are totally left behind. Pcg, xel. Rates are at all time lows given whats going on with the economy. You have the financials and the energy have been basically financials have done nothing theyre down this year. They just happened a few days lets bring in cole sneed, would you be picking up some of these underloved areas of the market right now . Yeah, well, looking back about two years, 496 stocks have gone nowhere, and four have made the market higher in a two year stretch. That highlights how incredibly narrow it is. Price movements, lets talk about things that are concrete that we can focus on. Lets say, kelly, i came to you with a business and said, hey, heres a deal, i have this business, its going to have a lot of success in the future, but i need you to know right now, that 60 of that future success on an annual basis is going to be handed back to the employees and youre not going to get it as an owner. Thats what people like today, just as an example, kelly. 3 billion youre talking about 3 billion of stock base comp went to amazon employees last year, heres the only problem, they only made 2. 3 billion on a gap basis. Which means that nothing dissimilar to hedge funds which buffet and monger have railed against repeatedly. These are schemes made for the insider not the shareholders. I dont know. Youre going to say amazon is a giant hedge fund . If you go look at the numbers. Go back three years. Im pretty sure that makes it a fundamentally different thing than a hedge fund. Heres the fun part. They expensed three billion last year, the actual value of the shares that vested last year, when they expensed them were worth 4. 3 billion. In other words, there was 1. 3 billion that should have gone to shareholders instead, they are sitting in the hands of employees. Seattle, this egregiousness is going on everywhere in the tech land. This is not a secret to anybody in the market. This is well known. That doesnt make it right. Im not saying it makes it right. Theres nothing unknown about what youre saying. Stupid things go on at the end of a big bull run. And its just another example of stupid thens. Hang on, everybody, right there. We mentioned er8er we had the job report lets bring a little bit more about the dynamics . You. Have this sort of real step down, you have in job growth, you had a 201,000 average threemonth average growth in february, its come down to 121,000. The funny thing about this, obviously the number was 134,000. But you had these bad revisions to march and april. Thats really a big problem. The funny thing about this, you have the Unemployment Rate declining down to 4. 3 . Some folks are saying, this is a sign of a good job market, and the reason is because the hiring is down, because people cant find workers to fill those jobs. Thats one explanation thats out there, not saying i buy it entirely. Im starting to. We have a grab bag of worker shortage. We talked about shortage of bus drivers and North Carolina so bad, they may have to change a school day. Shortage of mushroom pickers in pennsylvania, you can work indoors. Shortage of Amazon Warehouse workers. And teachers. Theres a massive roll off of teachers retiring. Theres pockets of that. You could flip it around and say ah, theres labor market slack. Other people to pull into the job market. I think youre starting to see pockets of that go on. And the wage response is also there. The ubs guy is raising a point today. Were looking at the hourly earnings, theyre not moving up the way you would expect if this was 100 of the story, they said that doesnt capture changes in the workforce, because its measuring a like for like. Are there any signs outside of that that show more wage pressures across the economy . It doesnt there is one, and ill tell the guys in the back, i did not come prepared with its wtgo, if you want to put it into the system, thats the code for it, and thats the atlanta wage tracker. Atlanta fed wage tracker. Did they just really pull that up . Youre kidding me. Amazing, you see that, its creeping up, were still not at the average rate you can see there of the expansion before the last recession, so you can do 3 1 2, 4 on a sustained basis, weve gradually crept up to there, theres a sign by the way of getting back to normal, which is problematic for mike santolis theory right there, that you have a tight labor market, you would think if things were so tight, that ultimately you would have above average wage gains. Its more my theory, which, evan what do you think youre waiting for the i think there is weve talked about it a number of months, the bond market does not believe in zero or close to almost no inflation. No wage growth. Its not like its never been woken up and moved 4 age points on new evidence or a change in the economy. What is nund amtly theres been a fundamental paradigm shift in the bond markets interpretation of what is going on with the economy and what the equity markets certainly inflation. The equity markets are seeing continued strong profits growth, and the bond market is basically going, were going to keep all that profit growth. They should show what happened to the ten year today, it came down by four basis points. And to fool them up in the back, you have that 2 10 spread going. You were 100 basis points. You were 135 right after the election, the yield curve steepened a lot. And then it came down again. Theres the tenure to 215 now. A lot of that you would never look at a flat yield curve, how flat its become, and couple that with a very Strong Equity market. Its unusual. It was totally that way in 05 and 06. The fed was tightening, they were higher, but they were still a flattening trend. It was called the conundrum. Thats what greenspan called it. And he started to say, why should it always be the case that you actually maybe its structurally should be more what were looking at right now . That was the remnant of inflation shocks in peoples minds from years past. Its pushing a lot of Money Managers out of bonds into buying amazon stock, approach ing what if its not an inflation call im sorry, a growth call, what if its just an inflation call, the bond market is starting to say, i dont see the wage growth and the last two months of inflation data have been pretty weak. They thought that this whole round of stimulus that was coming from the trump administration, underpinned this reflation trade, which i never understood from a stock market standpoint. But backing off that. We have to go. Steves comments. Existing home Sales Numbers look poor. Tightest housing supply ever, no homes for sale. Thats a bad read on the bond market. Lets leave it there. It will be what it will be. Thats my great philosophy. Thank you, guys. And have air lovely weekend. President trump announcing plans to pull out of the Paris Climate Accord yesterday. Will the move help the industry considering the gasoline demand is slumping and oil supplies are rising. The ceo of Laredo Petroleum weighs in next. The lowest ever for a u. S. State coming up, well hear from one of the analysts behind is that historic move. Like i said, we want to hear from you, you can tweet us, facebook us or email us. Give us your substantive thoughts. Youre watching cnbc first in Business Worldwide. Theres nothing traditional about my Small Business. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs, and i get back to business. Welcome back, oil having a tough week. All of this on the back of oversupply concerns and the u. S. Withdrawing from the paris accord. Joining us right now to talk more about it in an exclusive interview is randy fauch. The ceo of petroleum. You think if pulling out of the climate accord is bad for renewables. Does that agreement have any bearing on the price of oil right now . Its interesting to us, that agreement is one step in a very long process, and were regulated pretty thoroughly by states and the epa and everything else. From our perspective, the process is going to continue one way or another. It has very little impact on us. We were already in compliance with all the appropriate rules and regulations, we were capturing emissions off of our tanks and selling that pretty profitab profitable. Is any of that going to change now . No, were its economic. Where is the impetus coming from to create a healthier well, for us, its partially how we believe we should operate. Once weve made the capital investment, its economic. For example, we put a lot of our crude straight into pipe and dont have to truck it, which releases and this year, most of our crude, most of our water, most of our gas will go through pipe, so theres no emissions. And in fact, we think in 2017 were going to save something around 160,000 truckloads of oil and water, and that in itself is a pretty significant emissions reduction. Sure many. And is economic for us. We dont have to pay for the trucks. Can i ask a question . For someone who drills in the basin. How do you think about the oil price . We hear, we bang this about, 15. 50. Do you think about it on a day to day basis . Or do you think out a year, and plan accordingly . Well, a lot of our projects are two and three and four year projects. For us to worry about it on a daily basis is tempting, but not appropriate. And laredo is taking the position that were going to hedge out as much as we can, we went into the downturn almost 100 hedged for three years. Today were about 70 hedged on crude for 17 and 18. And its we bought floors and if there is any up side, we get it, we try to manage our business to where we can see through quite a ways out, any degradation in prices. Your production is increasing, thats been the rule i think. This is a market thats sensitive to the idea that the supply is going to keep piling on, is that the way its going to be . Thats the big thing that a lot of people miss, is the permian and other bases are going to grow. Laredo grew our production last year about 11 . Weve given guidance this year that were going to grow somewhere north of 15 , thats more or less within koosh flow. Weve gotten very efficient. What is the price of oil that making you stop drilling does it have to drop to the 30s for a couple years given that youre hedged in all that . I think it would have to be a view that is very low for a long time for us to stop. Weve made a lot of significant investments, those costs are there, our finding and development cost, because we drill long laterals. We drill some 15,000 foot horizontal hole, that reduces our cost 35 . All we would have to have a belief that oil is low for a long time. Were hedged for a couple years, we dont have to make a decision. We have options. And youll be able to sleep this weekend despite the 4 drop in crude this week . This year, its down 12, 15 already this year. That always worries you, but weve managed the company to see right through that. Randy, thank you for coming down. Appreciate it, its good to hear an operators perspective. Randy foutch. Twitter wants to use your browsing history and credit card purchases to sell ads. How accurate is all that data twitter is collecting. The impact it could have on twitters advertisers. Job growth across the nation may have slowed last month. One state is taking an unusual approach to solving its labor shortage. Next on the closing bell. 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 the first one up, chinas jump in currency this week, weve seen lots of reports of state intervention, some speculation, theyre trying to fend off the shorts preemptively. It seems like they are trying to keep the markets honestly. Also, though, it helps that the dollars week globally. It helps them be able to kind of strengthen their currency against the dollar and not have it hurt as much. Do you read anything into it p. The fact that there are companies, Chinese Companies that the Chinese State regulators have tamped down on, so all if i was a blackstone, id start getting more assets into the chinese investors hands a little more quick letter. That part may be over. Up next, Mutual Fund Fees are going lower yet. The average fee is already just 0. 63 , down from over 1 back in 1996. Morgan stanley says its going down to 10 to 15 . How could this not benefit the big players even more. They have the economies of scale, they could effectively charge. It will. I think if i were a Traditional Mutual Fund outlet, going down 10, 15 , thats another six or 9 basis points. Id be celebrating, the risk is, it goes down below half a , in terms of management fees, this isnt that bad, but its definitely the trend. I worry about systemic risks. When you have three or four players with trillions under management, why not . Thats got a long way to go, i think this is a long time coming, i think its a massive secular change in the industry. I think its going to take profits out of a lot of banking institutions. This is bad for the banks. Its good for black rock, good for state street. And jack vogue you will is worried about that. Theyre basically going to own the whole market. Coming up next, apparel retailers are reeling from online competition. Theyre already high debt levels will grow under an accounting rules change on leases next year. J. Crew is trying to siphon off its intellectual property. So it can raise debt many and keep it from existing bond holders. Should inch vesters be pushing back on those efforts. This is the way these cycles go, they have slowing traffic, no real top line power at all. Theres a risk of a downward spiral right here. All the short sellers, which racked up a ton of money on Restoration Hardware today, this is all in the thesis, the accounting change is coming, and the banks and lenders are going to start to tighten up their coven ants. Real evidence of the tight job market. Maine with a record low 3 Unemployment Rate is going to release prisoners to do summer work. Nonviolent owe fenders to make up for fewer visas for Foreign Workers and maines aging population. Does it make you want to travel up north . Im fine going to maine, assuming it was for smoking a little weed or Something Like that. Nonviolent offenders, what do you think theyre going to be. I thought that was what you wanted to do in maine. Employers are starting to overlook people with a record, because the markets so tight. Thats one way to get that progressive movement. All we needed was a super tight labor market. You know, i dont know if theyre going to raise wages in maine. Its going to keep that pressure down. Illinoiss budget stalemate is resorting in a pretty historic outcome. Up next, well hear from one of the analysts on that call, on the fallout for social services and schools. Active duty 11 year. 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. Steve, other than making me move stuff, im here at the Td Ameritrade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Welcome back, its been a fun afternoon down here. The dow is up 62 points. Those couple extra points on the close, a push of 21,000 for the first time. The new High Water Mark there. You get a headline. You get four. 2439 for the s p 500 a record high. The nasdaq over 6300. The russell over 1400, still all right, three headlines, 10 points shy of a record high. Lits get back over to sue herera. Heres whats happening at this hour. Jim mattis meeting with australian Prime Minister Malcolm Turnbull in singapore. That threeday summit will cover topics including extremism, Nuclear Dangers and emerging technologies. Agriculture secretary sunny purdue addressing farmers and ranchers at a summit in montana. How federal budget cuts could impact programs farmers depend on. He told them to expect some federal spending cut backs. Toyota is recalling 32,000 tacoma pickup trucks in the u. S. , because they can stall without warning. And this weekend, limits edition jelly doughnut oreos will be hitting the shelves, exclusively at walmart. They feature the golden oreo cookie. I like the experimentation, im not sure about this particular combination. Today is National Doughnut day. I dont think the timing is you know, oreos have been coming out. Theyve been experimenting with a lot of new flavors and a lot of new combinations. And its been working, the sales have been up theyre kind of exclusives for a short period of time. Im all for it. Its like girl scout cookies. Exactly. Thank you very much. S p and moodies downgrading illinois one step away from junk. Thats the lowest rating given to a state government. The state could get hit to junk status. John miller joins us. Welcome. Let me start with you, gabe. As ive read, the illinois could be on the hook of tens to 100 Million Dollars in payouts if they are reduced to junk status. How far away are they from that point . Right now, the Credit Rating on the state is triple b minus, which is one notch away from what is considered below Investment Grade, the next level below is double b plus. When you guys issued the latest change, how close are we from getting to the next level . What is it contingent upon . We downgraded the rating and put it on credit watch. Theres a 50 probable the rating could go down again. As much as this has to do iffed states fiscal deterioration in terms of a growing budget deficit and backlog of unpaid bills that is approaching 15 billion by the end of the current fisz cal year. It actually has to do with some broader issues as well. Like the duration of the impasse, the fact that this is happening amidst an ongoing economic expansion. And then just the nature of the standoff. It really isnt about tax and spending policies, so far as we can tell, it has to do with a difference of opinion over the governors broader policy agenda, and the general assemblies unwillingness to go along with his agenda. John, let me ask you then. Lets say illinois is downgraded to junk. What Ripple Effect is that likely to have on the Municipal Bond market . Well, i think weve already seen expectation that the likelihood of illinois going to a high yield or below Investment Grade rating is fairly high. And may be determined over the course of the month of june we consider it likely, we havent seen any melting of the particular particular standoff. For the Municipal Bond market as a whole, remains quite strong, and the economy in the state of illinois is also fairly stable and has been growing maybe a little slower than the national averages, but it is still growing and remains the fifth largest state in gdp in the country. The credit spreads of the bonds within illinois, theyre already paying a penalty, theyre probably close to that bb status already. The Ripple Effect is really more what we would consider the illinois taint. Most issues in the state of illinois have to pay more just because of the location from which theyre issuing, and the issues that gabe describes. That could ultimately have a worsening effect on the economy if the cost of borrowing goes up, john. Let me ask you as well, maybe not from people who hold the debt directly, but people who live in illinois, does this mean theres going to have to be more money raised from taxpayers there . How are they going to meet health obligations, not to mention all the other items in the state budget . Well, the primary driver, we think of the structural budget gap has been the roll off of the state income tax, which is a 5 level two years ago, and for the last two years has been at 3 and 3 4, there is a great deal of debate of raising it back to 5 or 4. 95 in conjunction with things like pension reform. And theyve come close to reaching some concept tulle agreements, but those agreements seem to have fallen apart. Just the increase from 3 and 3 quarters back to 5 , we think could close at least half, if not more of the structural budget gap . Ive also seen everything proposed from taxing financial advisers, services, to taxing cloud services, which i think chicago does already, in any case, it seems like where were headed. Thank you for now. There will be more shoes to drop when it comes to illinois. Twitter wants to take your personal information and spending habits and use that info to sell ads, it may not be getting your data right in the first place. Wait until you hear about mikes data. We want to hear from you, you can tweet us, facebook us or email us, maybe well read some of your comments on the show today. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement Insurance Plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement Insurance Plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. 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Twitter is asking for help. It recently began letting its users view and edit demographic information it has on them. Youd think they would know their users pretty well. It turns out thats not necessarily the case. Eric checked it out and joins us with some surprising findings. I think i have a nice package for everybody to watch. We looked at the data settings, i thought big data was going to be accurate. Its not as accurate as a lot of advertisers are paying for. Watch this. They think im single and a single parent. They think im retired. Number of children, one. Got that wrong. Big city mom, corporate mom. Female head of household. This is hilarious. Are you a big city mom . No. Are you a trendy mom . I am not. They dont know that youre a mom . They dont. Im a corporate man. Its ridiculous. Baby products, definitely not. I do buy ben and jerrys. Im a bit of a gadget geek. They think youre a baby boomer whos a senior, who speaks spanish. They think hes a male head of household, and youre a wife. Nascar super fans, thats us. Really . No. Are you healthy and fit. I dont think so. Do you own a gmc . No. Voekz waggen . No. Toyota . No. I dont even own a car. Standard retail, thats true, very boring. Look at how many auto things. Are you looking for a car. They think youre a fall fashionista. Do they really . Theyre out of their minds. I need oral care, thats disturbing. I would consider myself a very good brusher and flosser. We reached out to twitter about this, they said, were providing the privacy that everyone else can see, were leading the industry in this way, if people dont like it, they can opt out, they can edit their information. If you edit the information, youre helping them sell you, because they havent really figured it out. But we have a little surprise. Theres only one person here we can run this example on. Mr. Santolli was nice enough to give us information. But i think if we go to the data here, i dont know how many of these things describe mike santolli. Stay at home mom is not a gender or organization. I didnt know he was interested in gaier yacht tick supplies, arts and crafts supplies. New years resolutions, weight loss, big and tall clothing and plus sized clothing. Youre a republican and a democrat. Thats true. I think it shows you what an objective journalist i am, i expose myself to the Digital World in every possible im biases. Im disturbed by the weight loss thing. I look up to you. This is a real problem. If youre paying twitter to reach 134i7b for a weight loss settlement. Thats a huge waste. I dont understand why this is based on twitters own data. This is my profile. Theres two sections. The one thats based on what you tweet, pretty accurate. Youre going to be business and finance and news. This is the stuff thats off twitter. Its your credit card spending, browser history, what youre doing on your mobil phone. All the other stuff thats being compiled by third parties, provided to twitter, so they can put you in these groups. Somebody else who might be using my credit card, who might qualify under some of those categories. Sewing and knitting. Would you go back. I might be a trendy mom. You can check and uncheck for the information thats inaccurate. Would you do that or just opt out of the whole thing now. Let them think what they want to think now. If twitter gets this ad targeting stuff right, huge opportunity. Look at how many tweets weve talked about in the last 24 hours, from donald trump, ceos not happy about whats going on with the paris accord. And kevin durant and rihanna. This would be another reason not to tweet or be involved in twitter. You could have all kinds of mass ports and identities and work your way through the world. Job growth slowing last month in the u. S. The education industry is still in desperate need of new teachers. Were going to look at the growing Teacher Shortage next. Tonight on fast money, tom lee says that even bigger gains are ahead for the group. Hell have those details at 5 00. As schools get ready to let out for summer, many Public Schools are facing challenges of a growing Teacher Shortage. Kate rogers joins us now with more. The Teacher Shortage is impacting Public Schools like the Mason Academy here in detroit. They have 500 students, but 15 teachers and eight vacancies. The teachers are struggling with overcrowded classrooms and low pay. This issue is extending far beyond motor city. Each year some 3,000 Public Schoolteachers are needed around the country. If these trends continue, well be 100,000 teachers short for every year after 2025. The aft says the shortage is amplified in rural areas and innercities. The types of teachers needed run the gamut from english, science and math. One reason behind the lack of educators is compensation. With pay levels the way they are, for schoolteachers, given the kind of requirements teachers have. In terms of the knowledge of content area, the pay is not commence rat with the knowledge and skills. Many teachers receive bachelors degrees and go on to earn their bachelors before moving to the classroom. The average Public Schoolteacher made just 60,000. But a chance to foster the next generation makes it worth it. There is Nothing Better in terms of Job Satisfaction than seeing the impact that one can do in the life of children. Pay and benefits for teachers really do vary, depending on where youre located. Your education, the role and what your overall contract looks like. The aft did express concerns over the trump administrations proposal to cut funding in the blueprint they put out. Theyre fearful theyre going to add more stress to this co hort of teachers thats grappling with overcrowded classrooms and more. Is there any effect of Charter Schools siphoning off some of the more promising teachers or teachers in general . Is that a sidebar issue . I dont think its necessarily a charter versus Public School issue, although there is some crossover with that. You can go to a neighboring district, have fewer students in your class and make quite a bit more money. I think its more about the type of competitive advantages that different schools are offering, and in rural areas and innercities, the pay isnt that great. The classroom levels and the amount of students in each class are too high. We talked to a special ed teacher here whos dealing with kids from 2nd grade through 8th and he has 25 special needs kids per day, hes trying to schedule and give the proper resources too. Its a true challenge that kids. I think its personal. First of all, the aft, you could ask randy, shes never seen a teacher that was not paid enough money. Shore. Shes the aft. Shes talking that. That comes naturally. Second the chain is very geographically desperate. Andy didnt come up with the attention the fundamental shift happening among the teacher core, certainly in the northeast over the last few years, which is you had engs e pengs that were very, very generous. A whole generation of people who took a huge amount of money in the system. They had a contract from the pensions which made the jobs less attractive. Thats an interesting point. Thank you very much. Go ahead, real quick. Reporter thank you. No, i was going to say to that point about them being paid enough. I dont know anyone out there that paid for a masters degree that would be okay with 60,000 a year. I think there are certainly issues on both sides of the fences. It depends on where you live, what you do, its not quite an easy playing field. Kate, thank you very much. Our kate rogers in detroit. We have been asking you to send a female to contact us on social media. Up next, we will read some viewer comments, including one persons show idea and ahead of her big interview, nbcs megyn kelly nar rated a panel with Vladimir Putin putin. He blamed the u. S. For everything that happened. Everything that happened, that triggered and caused the introduction of these restrictions were, was not due to our policy and due to the policy, the u. S. Has been doing. Be sure to tune in this sunday night for megans exclusive interview sunday night with megyn kelly. Finally. Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Theres nothing traditional about my Small Business. So when it comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well, that it feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. 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. Containing this information. Read it carefully. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. We, the device loving people want more than just unlimited data. We want unlimited entertainment. So we can stream unlimited action. Watch unlimited robots. Watch unlimited romance. If you are into that. But we also want more like. Unlimited hbo. Can i stop dying now mark . No cant do mi amigo. Its unlimited. Besides you are really good at it james. Dont settle for any unlimited data plan. Only the at t unlimited plus plan comes with hbo included at no extra charge. Welcome back. The Business World certainly has been reacting to President Trumps decision to pull the u. S. Out of the paris accord. The man who had advises the president on manufacturing gave mad moneys jim cramer his thoughts on the move, andrew liveris. We are disappointed, many of my peers out there really do believe we have to put the science at work here and the Business Solutions at work. Its a new Business Model for all of us. Sustainability. All the trends going on in the world, generationally, we got to invest in putting less carbon out in the atmosphere. I think leaders dont leave tables, leaders stay. Thats the part im putting out. Its interesting, global business, for one thing they do like is the same rules across the entire planet. I think, there was a scare put into this generation of ceos with the whole shortage of commodities, theme, a decade ago. They felt like, look, we have to substitutionalize in our businesses than saying we are looking for a better way to do it. They are looking for more in that interview. Lets get to our closing bell mailbag. We had a story about self driving trucks. Kevin mitt says as a trucker, with a selfdriving truck, if a tire blows, you need someone experienced to handle that week, loaded it could weigh 80,000 pounds. This makes a point. Maybe it creates new ones . On the one hand, im of the vow that this thing the a huge Growth Opportunity for a lot of companies, talking self driving overall, including trucks. On the other hand, when i was driving along out on the expressway a couple days ago, i was like, looking at all the cars, it will take a lot longer than people think. Just looking around, i was like, yeah, there is a lot of, the weather was bad, it was like. Maybe to this point, though, self driving trucks initially become a productivity thing, you can driving i drive farther, have a better ride, whatever. A replacement. From u. S. Route 41. You know we got some on twitter in response to our Employer Sponsored Health plan, quote, what ought to be tax reasonable doubt the free gourmet lunches at Silicon Valley tech firm. I actually believe above a threshold, they are taxed. In fact, there was a lot of talk when you have a generous cafeteria, individual workers, sometimes, have to declare it as w2 income. This whole subject, i love it. Even below a certain level of subsidy. This whole subject is so interesting. Like air miles is the classic one, that itself not taxed as a benefit, okay, it should be taxed as a benefit. And the whole reaction, until you figure out the taxation thing for u. S. Health care, u. S. Health care will continue to be affected. Because it is the number one issue and everybody puts their heads in the sand. Heres an interesting question. Why does Rick Santelli fought have his own show on msnbc . Why you ask the question . Why doesnt he . Who can sit up there 30 minutes . 4 30 a. M. Maybe. From not michael scott, Michael Santoli might be the smartest man on tv, stuff, he just knows is incredible. I think he mansion the smartest man on tv on this desk. Now you are hurting my peer. I actually was the one who tweeted that. You are not michael scott. I get fan emails about you, too, but if they come to me personally, i dont think it counts. I get people tweetth at you through me because are you fought there. Remember. At closing bell at nbc. Com, i truly want to hear from you. Lets turn our attention to next week, give you a sense of whats on the planner literally. We know june 8th, thursday, is the elections in the uk. That will be a big day maybe just to get past it. Obviously, were record highs. By the way, we should mention this earlier, look at whats happened in france, germany the japanese market overnight was above 20,000. 95 of world equity markets are high. June 8, a lot of people are focused on. Because you have comey testimony, bcb the british election. On the other hand, the volatility market is not anticipating fireworks. The craziest thing is, earlier today, i had that feeling that i have not felt in so long of when you just i dont know if we want to go there. No, no, you just feel like the market is going to close higher. It doesnt matter. Its nothing matters. And my guess is sometime in june or july, something will surprise people. Or august. Traditional. Some people come up, it will be something weerdz. Peej g people go, amazon is overvalued, everybody knew that. Hindsight is 2020. Thank you guys for being here, as always, thank you guys for writing in. That does it for us on closing bell this week. Fast money begins right now. Fast money starts right now live from the nasdaq markets. At the site overlooking new yorks times square the traders on the desk are tim seymour, steve grasso, dan nathan and guy adami, its been a week with crude sinking, the energy trade gets crushed. Its sending one group of stocks soaring. Plus, apple surging next week. We got a way to protect your profits for next to nothing. Later, one of the active strategists on the street, tom lee is coming out of the elevator as we speak . In fact, late, hes almost here to the set