Transcripts For CNBC Closing Bell 20170607

Lutnick and doug cifu to tell us how the increase in passive investing is impacting their businesses. And macys is reportedly considering putting a part on the Flagship Store in new york city. Were so desperate for grass, i think people will go anywhere in this city, central park gets a little crowded and 34th, they could use some grass in that area. Go up to macys now, you can find it. But is that the thing thats going to get people into the store if theyre going up there . Anyway, the reason we showed you a picture of daymond john, hes with us today, of course, from shark tank and a very, very successful entrepreneur on his own, especially when it comes to branding. And were going to talk about branding in retail among other areas, coming up with daymond in a little bit. But first, we begin with this decline in oil today. Here go the inventory numbers, wreak havoc in the oil markets again. Jackie deangelis is at cnbcs commodities desk with that. Jackie d. . Hey, bill. Crude oil breaking through some key Technical Levels today after a surprise build in inventories and products. About a 5 loss on the day. The close looked like it was just under 46 a barrel, but i dont have an official settle just yet. Session low was 45. 76, very much in the lower end of the recent range. But its more than just the weekly data thats troubling traders, okay . Think about some other factors. Estimates from the eia showing that opec production rose in may. Some of the member countries just cant take this kind of revenue. The libyans in particular, have been raising their output. Then, of course, u. S. Rig count rising 20 weeks in a row. Our output is going up, as well. And its also a falloff in demand. The industry counts on a demand boost this time of year. Seasonally, it adds support and its not materializing. So where do we go from here . Well, now at the low end of the 50 plus or minus 5 range, 42 doesnt necessarily seem impossible, some say. Opec likes that 50 sweet spot, but whats happening here is that there are factors out of its control that could hold these prices back just a little while longer. Back to you . Jackie, real quickly, i think the eia also came out with some data, you were showing the u. S. Production, 9. 3 Million Barrels. I think they thought it could go over 10 Million Barrels to a record inenext year and that al reminds us of the opec output numbers. A big sea change. That would be a massive record production level here in the United States. We certainly have the capacity for it and the shale drillers want to go for it. But theyre also going to have to exercise some restraint, as well. Watch where prices go. Its not really good for anybody to flood the market more than its already flooded and bring those prices too low. So its going to be touch and go, but, yeah, they could go to ten. I dont know. I still enjoy going to the gas station. Yeah, well, right. Youre laughing this up. Absolutely. You want those gasoline inventories is up and those prices down. Bring those prices down. Thank you, jackie. Sure thing. Now to former fbi director james comey, who is due to testify, in case you havent heard. Hes going to testify on capitol hill tomorrow. Actually, his written testimony was just released. Eamon javers has all the details from washington. The committee is saying that the written testimony was released at the request of former fbi director, jaumes comey, who was fired by President Donald Trump earlier this year. He goes into a lot of detail here, minute by minute, line by line, of all of his interactions with President Trump over the course of the career. Theres one dramatic section that stood out to me. I want to bring to you. He talks about his concerns about the fact that the president had shoo eed everybod else out of the office and asked comey to stay behind for a oneonone meeting. Comey then raised an objection with his boss, attorney general Jeff Sessions, about that, saying it was inappropriate. Heres what he writes. I told the attorney general, that what had just happened, him being asked to leave was inappropriate and should never happen. He did not reply. That is that Jeff Sessions didnt say anything at all, according to james comey, to comey when he objected to the way the president was handling all of this. Thats an interesting one, given what waeve seen about the tension now between sessions and trump himself, just over the past week. Also, earlier today we saw intelligence officials testifying on capitol hill, following up on reports in media organizations that intelligence officials beyond comey had been asked by the president to intervene in some way, in this fbi investigation. The two officials in particular, mike rogers, the head of the nsa, and dan coats, the director of national intelligence, declined to answer questions about what it was that the president told them personally. And i want to bring this to you, because i think its significant. I just got off the phone with a senior Government Official, who explained to me the logic behind why it would be that those two officials would not want to say anything today, despite the frustration of the senators. In one case, its possible that the reports are simply false. And in that case, the senior Government Official told me there are a number of times, especially in the intelligence area, where officials do not want to deny something, even though it didnt occur, because they dont want to be in the position of setting a precedent. So that would be why the officials wouldnt have talked today, if, in fact, those reports were false about the president making those calls. Now, if those reports were true about making the calls, the official told me that there would be a reason for the intelligence officials not to talk, as well. And that reason was, the officials testifying today felt that it was not appropriate in an open setting, to be discussing confidential discussions with the president , even though executive privilege was not asserted. So, importantly, this senior Government Official talking to me, a few moments ago, was not implying one way or the other, that either of these scenarios, was, in fact the case, but simply saying whether the reports were true or false, there was a logical reason why those intelligence officials would not have wanted to comment on their conversations with the president , kelly. This is all very this is all very nuanced, now. It is. Just wait for that testimony tomorrow. Were getting into it. See what comes out of that. Eamon, thanks very much. Good stuff. Its going to be a busy day tomorrow. Our own bob pisani sat down with citadels ken griffin earlier today. Among the topics they discussed is where mr. Griffin sees the stock market heading. I think this Business Cycle has further to go. I think the stock market is going to go with that. But whats worrisome is the firepower that we have to address the next downturn somewhat constrained. That should worry all of us. The growth of regulation has stopped. That trend over the last eight years has ended. And thats really good for american businesses and for american entrepreneurs. Theyve already changed the course of regulatory burdens in america. No ifs, no ands, no buts. Big win for the administration right out of the gate. All right, so hes giving us a lot to think about and talk about it, among other things. Lets get to our Closing Bell Exchange today with the dow up 37 points right now. Oliver portia from brewedman brothers is with us at post 9 sitting next to Jonathan Corpina from polina Equity Partners and jack joins us today from chicago, hes with ucx. Good to see you all. Jonathan, let me point to what the markets expecting. Tomorrow we get the comey testimony. And right now weve got written testimony that suggests that there wont be any surprises at least from the written testimony. You values the also have the uk tomorrow and the polls out in the last hour suggest that theresa may will win and the conservatives will maintain a plurality in parliament. So no surprises. What do you think the markets going to do with all of this . If anything. Right, i mean, you said it right there, no surprises. And i think the market likes no surprises. Sticking to whats coming out of washington tomorrow, i think everyone, obviously, is going to be glued to the tv to watch this testimony. Weve seen the written statement. But its really going to come from the q a. What types of questions, where are they going to try to walk him down. And what information, additional information, are we going to get out of that . I think thats really what investors, i think what america really wants to see and hear. What happened and how did you feel affected by this . Whats coming out of london once again, nothing unexpected. The markets okay with that. I think were going to continue to see this market trend higher. And weve been supported by very good economic data, at this point. The next panelist is going to be Interest Rates next week. Weve been waiting for that. We kind of know where were going in that one, too. But its going to be interesting to see how they play this out, what they expect for the last six months of the year. Of course, we thought we knew how the brexit vote was going to go last year, too. Highly confident and highly wrong. Oliver, this morning ubs said, why should investors care about the comey hearing, because it suggests that the russian discussion will dominate the policy agenda rather than policy concerns. Do you think thats a part of it . A big part of it. At best, its a distraction. In all probability, its something that stalls the trump agenda, in terms of passing tax reform, Health Care Reform, and all the other things, which are really what a large part of this Market Growth has been based on. So if this kind of takes the headline and takes all the wind out of the trump administrations sails in terms of regulatory reform, in terms of tax reform, thats very problematic. Because were not seeing 3 plus gdp growth. Were not seeing strong numbers around the globe. Youve got oil that fell today in some additional geopolitical problems that are occurring worldwide. So i think that at this point, investors are better to be cautious. That doesnt mean go to cash, but it means tone down risks. Stick with highquality stocks, stick with dividend payers. Avoid some of though highfliers. Speaking of which, jack. Yesterday we saw gold hit a high for the year, highest since november. The tenyear hit the lowest yield since november. Today were off the boil on both of those, but do we expect those trends to continue or have we peaked and bottomed here . Somethings happening here. Theres a tone in the market right now which tells us that we should be cautious. Look, everything that oliver said is absolutely right. Were one bad headline away from watching this market tumble 5 to 7 . Remember, june, historically, has been a bad month. 50 of the time over the last century, weve seen june go down, but now you couple that with what i call real serious headline risk. And if we dont get this progrowth agenda passed through, were going to have problems. But one of the things that really concerns me is the disinflationary pressure that seems to be out there. And todays market in oil was a classic example of it. And were seeing that manifested in the tenyear yield. There is soft fear out there. And people that say that these markets cant can go up together all the time, thats rubbish. The reality is that the bond market is giving you a clear signal that there is a problem. And maybe its the leadership. Yesterday you were talking about 50 50, well, thats turned into the fabulous five now. Its really, really difficult to really get bold on this market at this level. But if you go back to 1980, the bond market and stock market have basically risen together. The disinflation youre talking about, the drop in oil prices like bill said earlier, is one thats good for consumers and the numbers arent disinflationary yet. So couldnt this be supportive of the same trends weve seen for the last three decades to keep playing out here, support the stock market . Kelly, the only time that should happen is when you see the fed easing. When the fed is draining, which theyve already announced theyre going to do, then we shouldnt see bonds doing what theyre douning. Remember, the circle bankers dont worry about monsters under their bed at night, they worry about disinflation. Thats what they cant fight. And dont look at wages for right now, look at commodity prices. Look what copper has done over the course of the year. Nothing. Look at all but the wage numbers are what tells you whether those inputs get passed along to the economy and to inflation or not, or whether theyre a cost and a drain on the economy. If those prices are going down, wages are holding in there, thats a good combination. Its also a question of wages catching up a little bit, but understand, if you have Producer Prices continue to get hit the way they do that. We shouldnt see that happening. Again, these are red flags and thats one of the reasons im getting very, very worried about the market at these levels. And remember, we also do make these nearterm tops around quadruple explanations and around quarter end, which is coming up right around the corner. Yeah, it is. Meanwhile, they are waving a red flag at us to end this. I was going to say, i would say its a giant one. Theyre standing next to a red flag. See yall later. Were heading into the close with 45 minutes to go. The dows up 31 points. Interesting. Looks like we moved often little bit since that written testimony from james comey came out. Were up ten points and cheering it on. But at least you know what those variables are going to be. Now the q a is a bigger one. The s p is positive, too. The nasdaq up 15. The russell just cant hold a its turned positive. Its barely, barely positive. Hang on. Have faith. Meanwhile, the c aes of sse joining us. And later, when teslas ceo elon musk talks, investors always listen. The electric carmaker stock hitting an alltime high again today. Its at 357 and change. Well have remarks from him later tonight. Youre watching cnbc, first in business worldwide. In these turbulent times, do you focus on todays headwinds . Or plan for tomorrow . At kpmg, we believe success requires both. With our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. Kpmg. 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 i wont. 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. Im ricardo, a sales and Service Consultant here at the xfinity store in bellevue, washington. Here at the store, we offer internet, tv, phone, customer service, home security. Every situation is a little different. It could be about billing, simple questions like changing the phone number. Sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. One of the great things about comcast, theres always room to move up. Of course, it depends on you, how hard you work. Welcome back. Cnbc is live today at the Sandler Oneil Global Exchange conference in manhattan, where the heads of all Global Exchanges and trading venues and platforms thats a lot. It is a lot. Theyre all gathered. Bob pisani is there and joined by howard lutnick. Bob . All the big players are here, talking about where the trading business is going. Lets talk to two of the big ones, doug cifu, howard lutnick, chair and ceo of bcg partners. Gentleman, everybodys talking about volatility. Weve got stocks at new highs and yet, volatilitys at new lows. And the volume isnt that great. Some of the brokerages are having a tough time. Doug, whats the issue here or whys it not an issue . Why is volatility so low and whats the problem . What the experts say, which i can agree, youve got qe, youve got central governments, youve got buying assets left and right. Youve got Interest Rates at alltime highs. Theres really not big carry trade. A lot of cash on the sideline. Even when you have a volatility event, that volatility is absorbed very, very quickly. And so, you dont have rippling volatility, continuie ining volatility throughout the day. Obviously not a great situation for a market maker. Howard, is this a problem overall . Most cnbc viewers do not complain to me about low volatility. I know its a problem for the stock trading business and the bond trading business. Is there anything we should be worried about . No, i dont think its something you worry about. Low Interest Rates and as doug said, the governments just owning huge amounts of assets here and in europe. That pushes down volatility. If you or i bought something, wed hedge it. When the government buys it, they just eat it. They just keep eating and eating and eating and eating. So as that ends, what youre going to see is thats going to come back. So the nice thing about it is its a tail wind coming. Meaning the worst is already behind us, as they start to bring down their balance sheets, youre going to see firms like dougs do much better. And thats a nice thing for the future. Its better to have the bad news behind you. Well, doing good would be great for you guys, because the volatility being so low, Market Makers like you, you make money when volatilitys higher. Youre not making as much money now. Theres been a lot of consolidation. Youre now buying night capital, one of your competitors, probably would not have been on your radar a few years ago and may not have been on at all with the volatility this low. Whats driving these consolidations . Nights always been on our radar. Its a Great Company with Great Customer business. We built virtu for a feast and for a famine. Weve got high margins even when volatility is low, because weve really watched our costs and thats how weve constructed the firm. Kcg didnt have a revenue problem, had an expense problem. We think we can help solve that. For us, its an opportunity to bring efficiency and consolidation to the space. Makes sense. Let me move on and talk about Interest Rates. We debate all the time, dichotomy stocks at new highs, but bond yields going nowhere. Howard, is this a problem . Is this a dichotomy . Is the bond market telling us somethings wrong or how do you view this issue . Well, really low Interest Rates mean that other Asset Classes are going to do better. So, you know, if you cant really buy bonds as an investor, youre going to buy what are you going to buy . Youre going to buy stocks at highs, buy artwork, right, thats hitting new highs. And what else . Real estate. The big asset class in the world that loves low Interest Rates is real estate. So in 2011, bgc made a big move into real estate. And that has driven tremendous numbers for us, even with the slow volatility, our stocks are at 52week highs today and yesterday and the day before. Important thing is, a little news here today, i understand youre planning a spinoff of real estate. Real estates 40 of your revenues. Youre planning a spinoff of that unit into an ipo that was Just Announced today. We said we would try to get that done by the end of the year. And the idea is, inside a Financial Service company, that has a certain lower multiple, is a really fastgrowing, really exciting real estate company, that we trade in a higher multiple. So simply by just taking it public and separating it, i think were going to paycheck our shareholders a whole lot of money. And thats, last i checked, what my job is. Quick they can on the markets. Any thoughts on where were going to be for the rest of the year, Interest Rates, perhaps . Any thoughts on the tenyear or any thoughts where you see markets i dont see a lot of action in Interest Rates for the remainder of the year. Howards right, youll probably continue to have a bubble in the stock market. I think the prices will remain high. A lot of it depends on what happens in washington. Incredible uncertainty there. Will we have a tax deal . Are we going to have a trade deal . That will impact a lot of stocks. And thats a big unknown right now. Hard to handicap that. Is there a trump premium in the market right now . Is the market trading at a premium under the assumption that there will be tax cuts, there will be less regulation, there will be more infrastructure . And if so, how much of a i think it was bigger. I think thats come off. But i do think youll see at least one bump youre definitely going to see a bump in Interest Rates. Im not so sure youre going to see two. Theres all this talk. We had one bump already. Well have one maybe this week. And then i think it sort of steadies out, stocks stay high. Trump starts to get some stuff done, talks about taxes. You get a little rally there. But i basically think Interest Rates stay generally low, you know,. 75 . For us, we take our money and buy coffee with it. Thats still pretty significant. Weve got to go, but general, always appreciate your thoughts. Howard lutnick and doug cifu, appreciate it. Wehle be here the rest of the afternoon talking to the traders. Thank you. Bob pisani there. 37 minutes left in the trading session. The dow up about 40 points. Pretty narrow day. Still, i think, playing it safe ahead of tomorrows big news. Up next, what teslas ceo elon musk said. Now, is that elon or along, when deliveries of the model3 would begin. Also ahead, hey, shark tanks daymond john is with us today. Hell give us his take on retails branding problem and where to find ceo s who can tur things around, coming up. When you booked this trip, you didnt know we had over 26,000 local activities listed on our app. Or that you could book them right from your phone. A few weeks ago, you still didnt know if you were gonna go. Now the only thing you dont know, is why it took you so long to come here. Expedia. Everything in one place, so you can travel the world better. 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. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. [ eerie musthe mummy. T ] has returned. You wish to see. What i have seen . You will. When. I. Kill you. [ explosions ] [ intense music ] the mummy. Rated pg13. As kelly mentioned, teslas hitting an alltime high today. Ceo elon musk taking the stage at electric automakers Shareholder Meeting late yesterday and said that teslas on track to deliver the first model3 vehicles or at least begin production next month. And he gave this eta for the modely crossover suv. Im confident that we can drop the capex by a factor of two between model3 and modely, which i think is a really big deal, and accelerate its readiness, despite the new technologies. So were aiming for that, you know, to hit the roads in 2019, approximately. By the way, heres a water cooler factoid. Tesla has now joined the fortune 500 list for the first time ever. The list is ranked by revenue and tesla raked in 7 billion last year, putting it number at 383. You want to know Something Real interesting . Whats that . Ford and General Motors are both in the top ten. Wow. And look at the market cap. Yes, right . We know whos winning that one. Do you think lsttheres a lie bit of dichotomy there . So lets review, now with the model y, we have four models. S, 3, x, y. We can do this visually, if you want. He either didnt or couldnt go with the model e. He couldnt, because ford has a trademark. And mercedes has a model e as well. So now theyve got all four. Now what happens . What comes after this . I dont know. For those of you listening on satellite radio, get a tv. Be glad. Yeah. At any rate, those are if four models now that tesla has heading to production. Time now for a cnbc news update with sue herrera. Heres whats happening at this hour. On capitol hill, nsa director mike rogers and director of national intelligence, dan coats, would not directly answer whether theyd been asked by President Trump to publicly state that they never saw any Trump Campaign collusion with russia. But both testified theyd never felt pressured to do anything they felt was inappropriate. In the three plus years that i have been the director of the National Security agency, to the best of my recollection, i have never been directed to do anything i believe to be illegal, immoral, unethical, or inappropriate. And to the best of my recollection, during that same period of service, i do not recall ever feeling pressured to do so. French president emmanuel macron, holding a special meeting of government members and top Security Officials today. Its aimed at creating a new counterterrorism unit. That unit will be operational 24 hours a day and under the direct authority of the president. Michigan state football player, donny corley and josh king were arraigned this morning on Sexual Assault charges. A third player, dmeetric vance, were arraigned yesterday. All three have been dismissed from the team. That is the news update for this hour. Ill see you again in an hour. And bill, ill see you on nightly Business Report tonight. Ill be there. Looking forward to it. Thank you. Sue, thank you very much. Thats the duo. Youll see them in a few hours. Im on the floor here with steve grasso from stewart frankel. Is this working for you . Totally. Were just never mind. Lets talk about oil, energy a little bit. You have been saying for a allo time, dont believe the bulls about crude. Lets look at all the things we should have had that should have been bullish. We should have had the production cuts by opec. We should have had saudi aramco, that every sellside firm wants a piece of that deal. Its going to be the biggest ipo ever in the history of ipos. And all of that is still not a tail wind to crude. In the face of a glut of crude, theres nothing that anyone could do to orchestrate this type of a bullishness when you have this type of a glut. Yet u. S. Producers still in the permian have a price advantage there, still producing. Heres my question to you, energys taking it a little bit on the chin today, when oils been dropping. But this is not a story overall for the markets. Is it . I know it affects us a little bit during the day, but fundamentally, this is not systemic, right . You know, it is sort of telling you something other than you know, the bulls would like the overall bulls in the equity market would like to think its just an oversupply issue, its a production issue. Its not able global growth. But we havent really seen growth pick up here. Weve seen growth sort of start to ratchet up globally, but nothing here to that 3 gdp, which i think were going to get to, even if its a transitory event, but there needs to be a bunch of things that happen. That gasoline demand drop over memorial day weekend, what i mean, it was like a half a Million Barrels per day. Its incredible. Its weird. I agree, theres something kind of whacky going on. Lets look for the markets. If you get a hint of political tax reform or anything, going to the corner of the trumps, then youre going to see this market take off another 200 points to the upside in the s p. Thank you very much, steve. Thank you. Bill . All right. Goinging in into the last half f trade right now with the dow up 45 points. When we come back, shark tank star daymond john will be joining us to tell us how brick and mortar retailers can beat back amazon in their branding wars. And President Trump making the case for Health Care Reform just a couple of hours ago. Well tell you how much progress is being made on that issue in the senate, coming up. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. What . Pony neighing] hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. A used car, all right. Cnbc ink kicked off the iconic tour where top leaders are talking about entrepreneurship, small business, and innovation. And joining us right now to talk about branding and the state of retail is the king of branding himself, shark tanks own daymond john. Daymond, good to see you, buddy. Welcome back. Thanks for joining us. Thank you for having me. Thank you. Clearly, we have seen a problem with retail this year. Stores are closing here and there, all over the place. People are losing their jobs. Is it a branding problem . Whats going on here . You know, its a branding problem, you know, people are getting more impatient with time. Youve got where we can only sell people time and if they can get it at their house, why would they get it where youre at . And it is a branding problem. People want to go somewhere where theres a lifestyle and people will feel a different way. If not, i can have the product shipped to myself and i dont have to go the store. Daymond, one of the things i always wonder when im watching you on shark tank, how do you manage all of these different investments. How do you prioritize them and when is your plate too full . Whats it look for you these days . Its always about having a great team. The first two or three years, i lost money on shark tank because i didnt put the team around me that i really needed. After that, you look at your companies that arent doing as well and you cant put as much time. And look at the companies that are doing really great and have great ceos. If i stick my nose in there, with ill probably ruin the business. So i try to concentrate the ones that are really on the edge of succeeding or need some help. Those are the ones that we have to do, just like running a company, you have to spend a good amount of time on offense, but a little bit of time on defense. Youve created this company, blueprint and co, which is a work space, not for startups, those are very hot right now, but yours is for the more seasoned executive, bringing some of these companies together that youve invested in . Yeah, after all the companies ive spoken for or consulted, they always want to talk about innovation. But innovation starts when you need to understand, no matter how old you are or mature you are or advanced you are, you still need to learn. And i think the coworking share space is amazing for startups. But where do fellow sharks go to learn . Theyre 50 years old and need to know about social media conversion, some of the Government Policies changing and financing and the way that people on their level are doing business. Thats why i created blueprint co in new york city on 39th street. And thats our first one. Hopefully well open up all over the uncountcountry, all over th. Your fellow shark, mark cuban, owns the dallas mavericks. Have you ever had any interest in getting involved in sports . A little interest in getting involved in sports, but its really helping some of the players, 65 of them, after three years out of the league, theyre bankrupt. I think these could be leaders in the community and they dont have business intelligence. Other than that, i let mark cuban do his thing and own his teams and get upset every single day whether theyre winning or losing on the side of the sport. But ill leave the sports up to him. Hes an amazing guy. Fair enough. By the way, he also just said bit coins in a bubble. Do you get involved with any of these cryptocurrencies or have a view on them, get asked about him . Im a simple guy, i make a tshirt for 10, sell it for 20. I dont know anything about that. I leave that up to the tech guys like the mark cubans of the world. Yeah. Let me go back to branding before we let you go. And i think, specifically, lets talk about a company like macys. You know, theyre suffering right now. Their sales have gone down. And just today, we learned, theyre talking about opening a park on the roof of their Flagship Store there on 34th in manhattan. I mean, i know branding is in some ways about connecting with your customer. Is that a way to connect . I mean, what are they grasping at straws . Whats going on there, do you think . First of all, they have one of the most iconic names in the world. And i think they are in one of the most iconic places in the world. And i think they can come up and be a disneyland of who they are, because of their location and because their name is globally recognized. And i think this is one of the things, theyre creating a lifestyle. And now its going to be about, how are they going to go and tell people that they are the new brand . I mean, weve seen many characters in our days, such as bugs bunny and this guy, but why do we love mickey mouse so much . Because they created a global brand. And now macys can become the disney world of retailers if theyre willing to just change the game. And all the other brands would support them. Thats fascinating to think about, how they would become the disney world of retail. What would they have to do to become the disney world . How do they fight against amazon . How do they well, first of all, you have a physical location, that bodys going to be there. Then content has to be produced out of that location, about how people are having the most amazing time in the world in that location. That has to be spread all over the globe. Then you have to be able to upsell people on being a member of that location, even if theyre in japan or taiwan or india. And you want that to be a destination. And then when they get there, theyre going to get things there that they cant see anyplace in the world. And then youll have a different version of that to sell to people through social media and through product integration and things of that nature. Movies should be shot there p. Ill give you 150,000 for 20 of that idea. Ill take it because i have a whole punch of th them. We got a deal. Thanks, daymond, good to see you. Daymond john, of course, from shark tank, among many brands out there. Lets head to the close with 20 minutes left in the tradingsatitrade ining session, the dow up 21 points. President trump taking to the road today, pushing the gop replacement for obamacare. We have details on that, coming up. And politics taking center stage across the atlantic, as well, with the uk general election. Well talk to some barstool experts about what to expect tomorrow. Stay with us. 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 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. Welcome back. President trump making some comments on Health Care Reform just a little while ago. Kayla tausche has that story for us. Kayla . It was a lastminute edition to the president s preplanned infrastructure strip to ohtrip. But he took advantage of the backdrop, in a state where anthem said no longer in 2017 would offer Health Insurance on the exchanges. Asking whether billions of dollars of the payments to offset those plans would continue to be made by the white house. But President Trump for the second day in a row, using the opportunity to ramp up pressure on congress. If we gave you the greatest plan in the history of the world, you would have no democratic vote. Its all going to be republicans or bust. And the republicans are working very, very hard on getting a Great Health Care plan. All 52 Senate Republicans meeting multiple times a week. At a lunch yesterday, a Powerpoint Presentation showed a broad outline of a proposed plan. Lawmakers are reportedly sharing sections of the bill with the kon Congressional Budget Office to see exactly how it would be scored. But the question remains, how and when to end medicare expansion . Thats still a critical issue. Yesterday, Majority Leader Mitch Mcconnell saying theyre, quote, close to having a proposal to vote on. The question is how they get to 50 votes. Several republicans have raised that question, with at least three gop senators saying they doubt health care can get those votes this year. Kelly . Yeah. I guess the main issue, kayla, is whether there is really movement on this front, you know what i mean . Or whether a lot of this is going to end up petering out. There certainly is the appearance of movement, kelly. And there are a lot of meetings that are taking place on the hill, especially with the entire republican conference. Weve been told that the smaller working group is no longer meeting, but part of the reason that is is because there are so many different issues, that so many different republican senators have to actually iron out in this process. You know, you can make a concession to win over one senator, but youre potentially losing another on the republican side in the process. And thats before you even talk about getting any democratic votes. Its basically deja vu of what we saw on the house side. So although theyre talking about being close to having something to vote on, until we actually get that legislative text, its really too soon to say. Right. Whackamole comes to mind as they try to put that together. Kayla, thank you. Kayla tausche. Were heading into the close. Dows up 50 points right now. Thats close to a session high. We were negative during the middle of the day. Same for the s p 500. The nasdaq is up 0. 4 now. And that russell is being stubborn. And brexit looming on the horizon. Is this the time to put money to work in the uk . A bull and a bear casts their votes, coming up. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. Will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. Welcome back. Voters in the uk head to the polls tomorrow to cast their vote in the countrys general elections. In these last few weeks, british Prime Minister Theresa Mays Conservative Party experienced a narrowing lead ahead of jeremy corb corbyns labor party. But todays poll does show her lead widening once again. But with our track record of the polls in the last 12 months a grain of salt. Reporte we have to be very careful. Joining us, Christian Amani is our bull, collins saszinky is our bear. The ftse has had a pretty good run the last few years. Up 20 since the brexit vote. But you think it has room to grow ear, why . Well, we think there are opportunities in the uk by at a company level. The way we approach this is to focus on individual companies and there are some companies in the uk who are internally focused from their Revenue Source standpoint, and they are incredibly cheap. A good example is perhaps b. T. , travis perkins, dignity. Companies that have a really good, stable business profile and valuations are attractive. At the same time, we have companies that are real worldclass Companies Based out of uk. Those companies are perennial favorites of ours. Collin, you feel differently. Why . Yes, i feel that the primary driver of sentiment towards the uk in the last year hasnt been the ftse and uk stocks. Its been sterling. And when you look at todays Market Action in particular, people are looking at these positive polls. The model from Lord Ashcroft suggesting that conservatives could win the 64seat majority. And what do we have . We have sterling going up and the ftse going down. And its been, ever since the brexit vote a year ago, weve seen the ftse and the pound generally trading in the opposite direction oaf each other, more like the relationship you see between the yen and the nikkei. So today, for example, weve got sterling up and the ftse down. And i think we could see that continue after the election. If we do see a big win for the conservatives, we could see cable push up through 130. And in the nearterm, that could knock the ftse back a little bit. Overall, im bullish on the uk, but i think youre seeing more of the bullishness play out in the currency rather than in the stocks. Krishna, i know youre a bottomsup guy, but the big picture there is the brexit. The impact that brexit will have on the economy in great britain. And there are those you cant find a consensus, clearly. There are those who feel that it could have inflationary impacts on the economy there and then there are those who feel that this could be a great opportunity to invest in this country, as they do pull themselves away from the ball and chain thats been the eu. Where do you stand on that . Well, i think from a really longterm perspective, brexit is not a positive outcome for the uk economy. I think being part of the Global Production system, they have definitely benefited from that. And it certainly increases the risk for the uk economy. Having said that, i think, again, it comes down to companies. It comes down to where the valuations are and whether those valuations are attractive or not. And whats the source of the revenue for those companies . If you look at the uk equity market, you know, the top hundred derive 70 of their revenues from all over the world. So its really not just a uk story for uk equities. Its a great point. And collin, finally, how much more strength do you really expect to see in sterling from here . Waddle you need to see in the economy and so forth for all of that to happen as you mentioned earlier . I think that we could see, if the conservatives score a big win, we could see the next resistance levels are around 130, then around 131. 50. If we see a weak conservative win or even a small if they fall just short of a majority, you could see a drift back maybe towards 128. I think overall, the other thing to watch for in the nearterm with uk stocks is no question about it, the ftse 100 are big multinational companies. Thats what sparked the big rally when the sterling collapsed. If the sterling comes back, we could see that get trimmed back a little bit. The other thing to watch for in the coming months is that the uk economy has done spectacularly well for the last year. And well above expectations, really benefited from the lower sterling. But as we move into the summer, were going to start lapping tougher hurdles, tougher bars, tougher comparables. And so we think we could see some of the Earnings Growth level off in the nearterm. But longterm, im quite bullish on the uk. I think brexit will be good for the uk. I think they have a lot of opportunities to make their own way with the u. S. And other commonwealth countries. Its a big world out there, and i think the uk has a really Good Opportunity to grow here. I think art bear just became a bull. Collin, krishna, thank you both for joining us. Thank you very much. Well come back with the dow up 36 points with the closing countdown in just a moment. And after the bell, Apple Holding its Shareholder Meeting today, that stock up 27 this year. But one shareholder is not happy. Hell tell us why in the next hour. Youre watch, cnbc, first in business worldwide. Hey, ive got the trend analysis. Hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Watson, you gotta learn how to take a hint. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com inside the twominute mark, as we head to the close with the dow up 29 points, the market of the day has to be oil. Seema mody is with me here. A huge decline, the Inventory Data wreaking havoc again, down 5 . 45 and change now. Add to that the regional dispute in the middle east with the qatar versus saudi arabia. That something that traders are also trying to get their head around. What do you get when you have a uk election, ecb meeting with, and the former fbi director testifying . Everyones calling it super thursday. And thats what so many people are keeping an eye on. So the markets have been playing it safe up to that point. Gold hit that high yesterday. Today, off of that high, down a fraction, but were at 1289 and change. And the tenyear hit the yields low for the year, going back to the election time coming back a little today. At 217. And that helped the banks as well. Theyve seen as big beneficiaries of trumps probusiness policies. I think thats why comeys testifying tomorrow will be important. Keep an eye on the banks. If theres any education of russias ties with trump, does that cloud his legislative agenda . And does that benefit banks . What about the european markets as they get ready for the uk election . Theyre already up 7 . Will the uk election confirm that the Political Risk around europe is receding . And will mario draghi scale back on monetary stimulus . A big day tomorrow. Its going to be big. Meantime, the dow up 37 points in what has been a pretty narrow day. Stay tuned for the second hour of closing bell. Im on nbr tonight. Heres the second hour of the closing bell with you later,. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. Looks like were going out with gains across the board hear for the major averages. Not major ones, but the dow up 21. As for the nasdaq, it led the way up more than a third of 1 today, and the russell 2000 managed to eke out a 1. 5 gain on the bell to put that at 1396. Well have more about the big mauve lower in oil today that did way to some extent. By the way, the dow transports were up about 59 points today. Ill have much more on this in just a moment. And despite the stocks record run, alphabet has faced some unhappy shareholders at its annual meeting today. Well speak with an adviser to some of the companys biggest shareholders about what changes they want to see at alphabet, parent of google. Thats coming up. Joining me today is cnbcs senior markets commentator. And from bell rock capital, shes president and chief investment officer, checking in there, as well. Michael, you know, oil is the biggest mover, but as you mentioned, it does look like we kind of turned positive and moved up a little bit once we got that written memo about what comey might see tomorrow. There was a little bit of tension released. This market has been waiting around, low volume, modest moves. That was the rule this morning and the rule all day. It did seem that when we got the written testimony, it just relieved a little bit of that suspense. And i dont necessarily think the market is viewing that as a huge swing factor, the testimony of the q a tomorrow for the next six months of action, but it could decide whether people have to reassess the very shortterm. Sitting at alltime highs. The up trend is in tact. Do you have the energy to take it higher. I like this stat that you had out there. We had 44 of the tech stocks, making new 52week highs on monday. Only the third time theyve ever done that. The previous two times is 95 and 97. This is from tony dewire, who basically points out that that very high momentum tight move in the tech sector, it doesnt end right there. If you look back at those other times, it tacked on 5 to 7 in the next few weeks after that, but then we had a pretty significant correction in the tech sector after that. I wouldnt say to statistically significant sampling, but its worth noting youre pretty stretched. Juim, whats your read on things . I think the oil price should be closer to 40 than 50. And the reason i say that is the technology of extraction, the fact that there wont be a real constraint on u. S. Onshore production, and the Technology Allows them to get the oil out of the ground probably at 40 a barrel. So if you believe that, does that mean you dont invest in the Energy Sector . I think you have to be very selective, people that are dependent on volume, rather than on price. Headlines might be okay. Pipelines are okay. You know, some of the new Production Companies might be okay. But i dont think you want to be in integrated oils, because the oil price will continue to go down. But the dow transports actually that you mentioned shows that somebody benefits from lower oil. Which is different, because in the past, when we go back to last year, the oil prices collapsing, the transports were collapsing, too, and there was this worry, hey, this is one of the strong parts of the economy and maybe everybody suffers and they move a lot of commodities. There was a concern about that broadly, but not here. The oil price was going down on fears of demand. Thats not the issue now. Its all supply issue. And supply is plentiful, which is go ahead for every other sector. So i still am pretty optimistic about u. S. Equities. And 18 times earnings on the s p is not a bad number. 5 1 2 earnings yield. I quite rike thlike that. What about the tech names . We are make ming comparisons toe 90s. When you have these Companies Going up 30 to 35 a year and some of the Biggest Tech Companies out there, what do you think about that . Yok theyi dont think they 1999 level when you expect to see a collapse. I wouldnt be chasing it up. Youre quogoing to see continue cycling between different sectors and different stocks. The big problem last year, the reason active management was so bad last year was the crosssectional correlation in the market was very high. Its not so high now. You have the runup in banks and the run back down again. I would think that this is a healthy environment in which to be a stock picker, in which to be buying stocks on setbacks. Cassandra, youre a stock picker. You still have delphi as one of your holdings, but before we get into that, what do you think about valuations at these levels . And are you concerned at all about what we might hear from comey tomorrow or the outcome of the uk elections, and so forth . Yeah, kelly,er with concern ed and for the first time in a while, were starting to take some money off the table. Because i think its beyond macro valuations in the market. I think, you know, jim is right. Theyre not bad, but weve seen some really large runups in stocks where theyre hitting our 12month price targets in, you know, six months. And we have to stay disciplined and say, i cant justify beyond those targets. And so, we are starting to take some money off the table. Use some call strategies in order to protect some of our profits, because i think we really are overdue for a 3 to 5 correction here, which is healthy. But its the first time weve actually really said, we think all of this noise is going to start to catch up with the actual market. So lets talk about del fivp for a moment. Theyre going all in about the excitement on autonomous driving and mobility. So why do you think thats a good pick against that backdrop . Well, i think theyre heavily involved in ai and in the whole automated driving. And its kind of quiet, in any way. This is a stock thats quietly crept up. And when we look at valuations, they are not stretched at all in this company. In fact, we think theres probably another 40 points to the upside in this stock over the next 12 months. And a lot of that is driven by, we think, a future Earnings Growth, not opposed to a trailing Earnings Growth. So we think the Earnings Growth is actually going to pick up, because of what theyre doing in ai technology, which is something that its difficult to find pure plays in that area, but this is one where we can kind of see a more Straight Line to the ultimate upside in the stock. We think theres a lot ahead of it. Well, speaking of disruption, in case you missed it earlier, todays citadels ken griffin joined us here on cnbc. He weighed in on some of the disruption were seeing in retail in particular, but tech in general. Take a listen. Where theres disruptive change, theres an opportunity for investors. Were seeing incredible disruptive change in retail. Just unbelievable whats happening today, the rise of ecommerce, the tech space in the United States is just awash in change. And this is an area where the u. S. Leads the world. If you think about, who are the stories of the global superpowers in commerce today, its the googles, its the facebooks. These companies are really an interesting force for change around the world. Yeah, these are the new platform companies. By the way, jim, sears is closing another, i think, 66 stores, it has announced today. Yeah, and ken is right. There is an enormous pace of disruption, which is accelerated. I think that affects not only retail and tech, but also affects the overall level of the market and the bond market. Tech is a very deflationary phenomenon. Prices come down, things get more efficient. I think thats one of the reasons why im not surprised to see the bond yield down around 215. And im not worried, either. I actually think in the next two or three years, well think of a 10 tenyear as high, not low. I think we already feel that. We touched it briefly in 2013. 3 , almost exactly on the news. Thats right, and it peaked out at 260 in february. When people thought, hey, its trending up. But it wasnt. That was the peak in the yield. That was the end of a bear market. And i think ken griffin is basically articulating the markets implicit message for a while now. So you have these huge dominant Tech Growth Companies that are beneficiaries and drivers of a deflationary boom in the areas that they touch. And not only that, but these enormous companies, the market is saying are kind of more stable, predictable than governments around the world that cant seem to get their act together. That is a sbvery interesting point. By the way, you made a little chart of whats been happening with Interest Rates. Of the yield curve, which, to your point, why its not a big economic concern. If you look back where we are, between the twoyear note and the tenyear note, we last hit that trending down in 2005, was the level of rates was much higher. This goes back to the point you were making, look how long the curve was flattening, from basically 2004, 2005, all the way three years it was going on. Three years of that process with the market is saying, the feds getting closer to being done, but its not done yet. Two years out from a recession. Well see that flattening phenomenon happen again. Maybe next week, well see 25 basis points from fed funds. Maybe therell be another one or two later this year. But you know, that can be accommodating within the current tenyear yield. I think were in for a bit more flattening over the next couple of years. We have to go. But i wanted to briefly show, the fortune 500 list out today. Weve been talking so much about market cap. The big ones dont surprise you, walmart, berkshire, apple, but number five is mckesson, which i think reflects its distribution, of course. And take a look at six through ten, united health, cvs, General Motors, okay, at t, and ford. So gm and ford, two of the top ten in this country by revenue. Sure. Autos are the biggest manufacturing and Retail Sector of the United States economy. You dont think of it that much. Question is, does that mean their value some weight portfolios on revenue, not on market cap. Or is that how much in the way of sales can be poached. Deflated. And the top five are all tech markets. Cassandra, what would you add before we go . I hate to put a damper, but the flip side of all of this is as actually Technology Gets stronger and ai gets more involved, extrapolate that out ten years from now. Where are all those workers going to be . There is a Downside Pressure ultimately thats going to hit this economy and this stock market when you start to put all of the pieces together and that might not be in our immediate future or intermediate future, but it is going to come and thats going to create another set of havoc. I just think disruption has always happened look, maybe it will be worse this time. We dont know. And if it is worse this time, we have to deal with that. No question, but the flip side of it is perhaps that people find new industries, new forms of employment, better jobs. I dont know. Im totally with your last point, kelly. Im totally with your last point, kelly. There has never been a technological advance that netnet eliminated jobs. It eliminated some jobs, but people found other things to do. Human ingenuity will make that happen again. Well leave it on that hopeful, uplifting note, everybody. Thank you for joining us, jim and ka scassandra, really appree it. Coming up, bank stocks rallied hard after President Trump was elected. But they have been stock since he took office. Could they see another boom if they pass the fed stress test. Andrew schutz will give us his thoughts, next. Plus, apple is holding its Shareholder Meeting today after becoming the latest company to top the 1,000 their mark this week. And you can contact this show via twitter, facebook, or send us an email and let us know what you think. Youre watching cnbc, first in business worldwide. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Welcome back. Financials getting a lift today, helped by news that spanish bank Banco Santaderris buys Banco Popular for 1 euro, or 1. 13. But Banco Santader has been struggling for some time. So should this reassure investors about putting must be into european banks qu . Joining us is anton schutz. We have a lot to talk to you about. Excellent. Were going to rip through it. Lets start with this bailin. Is it more important what happens in italy now . What do you think . Well, you know, its important that we seek the right level and get some of these assets moving the through the system. So, you know, the market on these loans was on the nonperformers was over 60 . So a lot of reserve there. We can clear the decks, you know, clear the inventory, you need a clearing process. Its going to take some time. So i would rather buy european banks on recaps, when they put new capital into what is what santader is doing. Its going to do, i think, a 7 billion rights issue, in order to recapitalize the banks. By the way, the European Central bank had to make this happen last night. Now so the senior debt holders, theyre the ones who are going to be okay. Its more of the junior ones. But in italy, they have banks who are struggling. Theyve sold a lot of this debt to the retail italians. So they cant you cant really bail them in the same way. I guess thats why people look there and go, you know, thats the third biggest bond market in the world. What happens if theres a bailout . And theyre still doing it. When i was in italy last year, i saw a sign on a window, 0 down, 40year mortgage. Theyre creating their own problems and continue to feed the beast there by doing that kind of stuff. So whered you buy the house . Wno, the prices are crazy because of those terms. Are there any names in particular before i move on that you like in europe, since you mentioned some of the recaps . Well, youve already had some recaps, so and i dont own any of them, but deutsche has already done some work. Theyve settled with the u. S. Government. Theyve done a recap. Credit suisse just did a recap. But its a lot more than recaps. They have a lot of rightsizing of businesses to do. Theyve got to decide where the exposures are. What about the italian banks . Who have exposure to the italian banks . When you look at the big u. S. Banks that kind of play in the same arena with some of those, its been striking for one, that citi has been such an outperformer in the last month, yeartodate, allaround, why would that be . Is it the business mix . The highest potential to return capital . What do you think . Its all of it. My estimate is 18 billion of capital return. Thats a staggering sum between dividends and buybacks. Low end estimates are 15 billion. So its not like im completely out there on a limb. The other thing is, theyre having their first analyst day that theyve had since crisis. And that analyst day is july 25th. People are saying, look, if theyre going to have an analyst day, theyll have good things to talk about. And its about time. Ive been long the name over the years and been kind of waiting for this. Ken griffin was asked by bob pisani earlier about whether we should go back to glass steagall . Weve been talking a lot about this. Dick bove has been putting out a note overnight saying its time to break up the big banks. What risk is there for the biggest u. S. Banks . Are they able to hammer that message . You want us to compete against china, we need these big global banks. Are we going to be able to continue to kind of hold on as they are today . Inc. Theyll be able to hold on. The the real question is certainly thought provoking. They still have to hold more capital than anybody else does. And that return on equity is going to be held down by holding that more capital. So the real question is, obviously, in wells fargos case, the crosssale, well, you cant crosssale. Do we really need all these businesses together, dont you . And i think these different banks have different arguments about being able to crosssale. I think jpmorgan has been very effective. I think bank of america with merrill is pretty effective. Breaking them up does hurt us on a global stage from a competitive perspective. I think glass steagall seems silly. Glass ste glass steagall did not cause the crisis. It had nothing to do wit. Durbin is silly. Why was durbin added to dodd frank . So the retailers can keep the profits from the banks . But i think theyre hanging on to them oh, i know they are which is insane. Because durbin is a very popular senator, theyre going to hang on to it. For any number of theyve got a good lobby. Thats a discussion for another time. Anton, thank you for joining us. Anton schutz. Former fbi director jim comey is set to testimony tomorrow for the First Time Since President Trump fired him. And investigators will be watching closely since comey has had such a huge impacts on the markets so far. Were going to look at how related events to him have led the markets to some big swings. And hollywood is under attack by hackers. They released eight episodes of Steve Harveys new show. Up next, youll get our fast take on the trend. Stay with us. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Briathe customer app willw if be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Welcome back. Time now for fast take. We begin today with facebook looking to move whatsapp off of ibms public cloud and on to one of its own private ones. Ibm says its unaware of the shift and says that whatsapp is a top five or even top 20 cloud customer, but these headlines prove that the cloud is the megatech battleground right now. Obviously, mass adoption in a hurry on the cloud. And the huge big players kind of playing a market share game. Whats interesting here is at least by these reports, facebook looking to internalize. So i think you have the big customers who are just saying, do i go with ibm, google, or amazon, but maybe we do it ourselves. And whats interesting to me, you talk to some of these investors and they say, we want a multicloud solution. So theyll say, ill use amazon when amazons cheapest, but i want some inhouse so it feels like theres perhaps room for more than one player. They want to modulate their work room. Theyre kind of the same, but you use different ones for different deals theyre all involved with the deals, most times just a different ranking. Next, sony is making clear versions of top films, films like spiderman, big money, and talladega nights, prompt seth rogen to chime in and say, please dont do this. My guess is because of cyan. Because china is very strict about the kinds of content. It could be partly china, partly other countries. I guess my theory is International Markets and wanting to prevent the cleanest possible version of its content to appeal. I do know, look, there have always been airline versions. Every director has to create an airline cut i didnt know that. And they hate it. I know they consider it to be an impingement of their i cant believe what ive seen on the planes is the cut i think it youd to be a little bit more restricted. I do know that family films is a big area of streaming. If youre going to have distribution that way. I, myself, have looked at hollywood comedies that i know would be amusing and tried to figure out if they would be okay for the 13yearolds and youre always wrong, arent you . You know, you have to be careful. Lets put it that way. Maybe it is for the kids. Next, hollywoods hacker has now crossed steve harvey, releasing eight episodes, of ha new abc show called thunder dome. The hacker says he only wants money so he holds the content for ransom. What should hollywood do . I dont think you should say absolutely never pay the ransom or always pay it. I do think, though, that its very interesting. Because i dont know that its going to take off in the sense that users that the audience, in a massive way, is going to start looking for pirated content. What i think, and i hope youre right, by the way, that this isnt napster 2. 0, that it goes back to the clouds we were talking about. They better go with the big cloud providers like amazon or whoever to protect their data if they cant do it themselves. You know when this didnt happen . When they put spools of film in a tin and took it to the movie theater. Finally, this is big, with i think, for best buy. Apple is putting its glassfixing horizon machines in 25 countries and stores and best buy will be one of the first recipients. Before now, apple never even quickly mentioned these horizon machines. Its been such a headache for consumers. What does it tell you, though . Theyre bending to customers. It was a real nuisance. Ive had a screen fixed at an unauthorized dealer. And when you do that, your apple warranty you void the warranty. So i feel like its really just acknowledging that the market place is bigger than apple. I think its good for best buy. Oh, it will be. This shows, this is how you do it right amid the online takeover of retail. Alphabet holding its Shareholder Meeting today and one Shareholder Group has been urging investors to vote against the companys pay plan for its stop execs, this is despite the stocks huge rally this year. He joins us next to explain why. And how are people in london planning to vote ahead of tomorrows British Election . Wilfred frost headed to the pub to try to find out. Thats still ahead on the closing bell. 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 its your glass of willpower that helps keep cravings. Far, far away. Feel less hungry with the natural fiber in clinically. Proven meta appetite control. From metamucil. 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. We eked out a rally today on wall street. The dow was up. The s p was up about 4. The nasdaq up 22. The russell up less than two points. Time for a cnbc news update at this hour with sue herrera. Heres whats happening at this hour. President trump traveled to cincinnati, as he called for bipartisan support in rebuilding the nations infrastructure. Im calling on all democrats and republicans to join together, if thats possible, in the great rebuilding of america. Countless american industries, businesses, and jobs depend on rivers, runways, roads, and rails that are in dire and even desperate condition. Meantime, there is no crying over spilt milk, but, how about spilled beer . A truck driver lost control on a highway ramp in arizona and thats a lot of beer. The beer came pouring out. Look at all of those bud light cans all over the ground. The driver, unfortunately, was hurt, but he is expected to be okay. And an historic feat in cincinnati last night. Scooter gennett hit four home runs and drove in ten runs in the reds 131 rout of the st. Louis cardinals. He became the 17th player in baseball history to hit four homers in a game and the first Cincinnati Red to do so. Awfully impressive, if i do say so myself. There you go. Mike, that ones for you. Only the 17th ever, sue . And in fact, there was a lot of the baseball statners there were trying to determine if it was the best offensive game, perhaps, in history. Arguably because, yeah, he drove in ten runs, he actually had five hits, four home runs. And i think the Cincinnati Reds twitter feed might have one of the winners, too. They tweeted, gennett, the best a man can hit. Just like gillette, the best a man can get. Excellent hes got a great name. Thanks, guys. Our sue herrera. Who was the guy with the name yesterday you were telling me about . Baseball player with the name . Other, stubby overmeyer. Thats an old pitcher on the yankees. Alphabet holding its annual Shareholder Meeting today. The companys ceo painted an optimistic picture for its future. Were still very, very healer. And thats whats so extraordinary. When you look at google, im often asked whats my Biggest Surprise coming here, having now been here two years, and the answer is how early we still have. Google has quite a long runway ahead of it. We have all thats going on with ads and were adding with on with cloud hardware and youtube subscriptions. And all of the magical things coming out of the other bets, whether its selfdriving cars or transforming cities or Life Sciences or loon. Despite her positive outlook and the stocks huge run, its up about 26 , shareholders still address concerns over topics like executive compensation and the gender pay gap and the companys lobbying practices. Were joined now by patrick magern from iss, which is a shareholdering leading company that helped lead the charge against. A balphabets Corporate Governance today. Arent they doing everything right . I guess theyre hitting it out of the park as far as performance goes, thats true. But still there are some concerns for longterm investors. And a lot of them do relate to the companys compensation practices. What specifically about them . Well, again, sendhar pinchay, its a great ceo coming in. I think he lives up to the hype. But when you look at the awards hes received over the last couple of years, basically covering about 300 million in value, that they arent very retentive. This is a young, rising executive. You want to keep him in his share for a long time. You want super glue in there, not library paste. But the vesting on these shares last year ran about two years and this years 200 million award vests over the next four years. And in addition, none of these awards are based upon performance. Theyre all purely discretionary on the part of the board and they time vest. It doesnt have any Performance Hurdles that would have to be cleared to provide value to the executives. Understood. So, patrick, the concern of iss is not that sooner pichai made 200 million or 300 million, its that you wish he had done so, but with the shares vesting over a larger number of years . Thats a little bit of quibbling around the edges, isnt it . Not really, were really looking here at the stewardship by the compensation committee. The membership of the board of directors. And we want them to have a more coherent compensation strategy in place. This is the fourth straight year, 2016 was, when there was at least one award made to a named executive officer with a face value that we calculated more than 100 million. And thats really not a strategy when youre not requiring long investing periods for those awards and youre not making them predicated upon hitting performance targets. Patrick, i guess at least from the outside, it would seem that this is a company at a particular stage where the founders are still involved. They own massive percentages of the company. And i wonder if this is a matter of attempting to get the next generation of leadership kind of vested in a hurry with big equity positions. I mean, who knows if this is going to be the amount and type of awards that these folks are going to be getting, you know, for years on end. Sure, but weve seen a steady parade of folks leaving google and now, again, alphabet in recent years, because their personal net worths get so high that i think they actually lose the incentive to keep on charging forward. And maybe you say theres other people coming in behind them to replace them. But i would like to see a more targeted incentives. And i think investors would like to see some like i said before, some more glue put in the chairs of those good executives, that seem to stay around for a couple of years and then leave the company. Perhaps its because look, these arent founders. And obviously, when there are founderled companies, they retain a huge amount of the stock in many cases, making them very wealthy. And yet theyre passionate about the company because they founded it. It sounds like a lot of investors arent concerned about pichais commitment to google longterm. What do you think theyre missing . Its not that theyre not concerned, its that i think that what shareholders would like to see is just a Compensation Program thats frankly more like those of their other peers and the s p 500, where there are performance metrics being included turned pay program. And i think where you know, youre trying to retrain those top players on your team, rather than just assuming that theyre going to stick around after you put a couple hundred Million Dollars in their pocket. All right, patrick, thank you for joining us today. Thank you. Thats patrick mcgern from iss. Meantime, the countdown is on. Were less than 18 hours away from fired fbi directors james comeys appearance before the Senate Intelligence committee. Up next, we will take a look at the road he and President Trump traveled to get there. And britain is also going to the polls tomorrow, once again to vote for its next government. Well go outside the halls of paurlt to get a pint and the pulse to have the country. Amere trader offices. Steve, other than making me move stuff, 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. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. So you miss the big city . I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options for the patients genomic profile. You can do that . Even way out here . Yes. Even way out here. Welcome back. As the whole world knows by now, former fbi director james comey is set to testify on capitol hill tomorrow morning in front of a Senate Intelligence committee. It will be his first public testimony since being fired by the president last month. Eama eamon javers is in washington with a closer look at the events and the timeline leading up to all of this. Eamon . Hi, kelly. Were asked most often, what are the dates, when has this story really moved markets . Lets go through the timeline here and ill show you exactly whats been happening during the course of this saga. Pay attention. There are two days where this story has rae moved markets. But for the rest, maybe not so much. So start with december 29th, 2016, the Obama Administration announces measures to punish russia for the 2016 election interference. That was very early on. Michael flynn calls ambassador kislyak of russia to discuss sanctions relief on that date. That was an important early moment in all of this. On january 27th, trump and comey had dinner at the white house. Thats the dinner were learning more about in this testimony, including that famous stare down. On michael 14th, Michael Flynn resigned. Trump met with comey and asked him to drop the Flynn Investigation altogether. On march 20th, comey testifies before the House Intelligence Committee and confirms the fbi investigation of the Russian Election interference, including any links with the Trump Campaign. And on may 3rd, comey testified before the Senate Judiciary committee. That was one where he said that the thought that it affected the election made him mildly nauseous. Trump fired comey on may 9th. And on may 10th, the next day, met with Russian Ambassador kislyak and Russian Foreign minister lavrov in the oval office. On may 17th, the Justice Department appointed fbi director Robert Mueller as special counsel in the russia investigation. As for the market reaction, the two days i talked about that stand out, march 21st and may 17th. Those are the worst two days for each index since the trump inauguration. Take a look. On march 21st, the dow, s p, and nasdaq all fell more than 1 the day following comeys House Intelligence Committee testimony, when he confirmed the fbis investigation of Russian Election interference. Now, the other date here thats important, weve also got some sound here from comey. Take a listen to what koum hcom to say that day. The fbi, as part of our counterintelligence mission, is investigating the russian governments efforts to interfere in the 2016 president ial election. And that includes investigating the nature of any links between individuals associated with the Trump Campaign and the russian government and whether there was any coordination between the campaign and russias efforts. Now, the second date i told you about, the worst market decline of the year would come on may 17th, the same day mueller was appointed special counsel, and a day after the New York Times report on the comey memo, revealing that trump had havasked him to end the fly investigation. No doubt, markets will be closely watchi ining all of thi comey appears on the hill tomorrow. Well have to wait and see if theres Market Impact as dramatic as we saw on those two days, kelly. Eamon, it seems a significant thing the reason we would get that if there was some surprise. In both of those two prior incidents, there was a huge surprise and the shock value. We already have his written testimony, so the q a would be the only opportunity for that. And im trying to think of what obviously, thats what makes it a surprise. What kind of disclosure that would be so market moving would be. One of the things to look at here is former director comey says here that there are nine instances where he had contact with President Trump. He only details five of them in the written testimony. So well wait and see what he says happened on the other four occasions. If they were just talking about sports or the super bowl or something or there are other details ti s still to come here director comey. And of course, theres the bombshell questions and answers, which everyone expects will happen tomorrow, which is, what is director comeys opinion of all of this. Does he think that the president s actions here amounted to obstruction of justice . If he answers yes, that would be something very, very dramatic. He might say, no, he doesnt think it rises to that threshold or he might simply punt on the question altogether and avoid giving an answer. Anything you would add to that, mike . Just as i look back to those two dates that eamon highlighted, when there was a perceived Market Impact, since those dates, the large nasdaq stocks have outperformed the dow by 7 since the march date, by 2. 5 since that may date, which is less than a month ago. So it shows you that the market altogether fall apart, but change its orientation towards things that are thought to not be contingent on policy progress or anything going on in washington. Thats a great point. And well see if theres a similar fulcrum tomorrow. Eamon, thank you so much. In england, if youre looking for opinions, you hit the pubs. Tomorrow, well do that. A top strategist is calling for investors to make one major change in their portfolios. Theyll tell you what that is tonight on fast money. 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 power of innovative thinking. 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. Welcome back. Tomorrow is voting day in the uk for the general election. For all 650 members of parliament, our wilfred frost took to the streets and to the pubs to find out what issues are most personimportant to voters. Wilf . Reporter yes, kelly, indeed. I couldnt come back home to london without visiting a couple of pubs. And tli ahere i asked the afterk crowd how theyre planning to vote and the reason why. I am probably going to vote conservative at the moment. Mainly because i dont trust corbyn. So its an antivote rather than a vote for, if im absolutely honest. Ill probably vote conservative as well and a key reason is, i dont trust a farleaded left party. And theyve gone much further to the left to control the economy or grow the economy, as well. Ill be honest with you, ive changed my mind. Im kind of siding more to the left. Im kind of tired of theresa may. I feel the labor, something a bit fresh, something a bit new. With the money i earn, it would be entirely stupid of me to vote labor with the it was the tax policies him. I think id enjoy a zouven my corbin. I think it would stir things up, a new approach. Ilt a good sum rear of the campaign. She did so from a 20point lead in the polls. Sense then, things i things have struggled a bit. She still has a decent lead. They put that lead at six points right now. Kelly. Well, so even if she pulls this off, a as the conservatives get their flurlity, i love reading the Early Morning notes from uk analysts all the time, one of the things that came up this morning was the idea that that has undermined her power as a leader and exposed. Who sets up and be is the new leader, are we able to go down this road . Is she able to put that behind her and consolidate power and emerge stronger . Reporter there is a little middle ground. Largely speak, it is all or nothing. If she gets an increased majority, even though its been clear under the scrutiny of this Election Campaign that she wasnt perhaps quite as popular or the mr. Egg that people thought she was, she has increased and got a mandate and therefore she wouldnt be challenged by her own porte for quite some time. Clearly, if she loses and Jeremy Corbin beats her, she is gone as the leader subpoena either way. There is a maul margin in between there, perhaps she has a small majority. I dont think they get their lives out immediately, because they wont want to unsteady the ship, her own party. So i think either way, its a bit of an all or nothing thing. She will still be Prime Minister, although people wont love her as much as they once did. Its been an incredible turn of events. She said it was the right, politicaliant thing to do. Now very different. Thank you,le w wolford frost in lont. Hi, kelly, parts of amazons website have been down this afternoon in a rare outage for the company. Its amazon. Com. When you try to close on products or items, instead of going to their details, it brings you to their outage page. According to oa website which attracts these out annuals, they are affecting the northeast and west coast of the United States, kelly. I tried to click on a few products recently. It does appear to be working at lear for here for now. Wow. All right. First a server issue. No you this one. Thank you. Its that time again, well know if he knows the answers to this equation. Up next, we have some business queries as we try, once again, to stump sansantoli. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. Times up, insufficient were on prenatal care. Es. And administrative paperwork. Your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you, too. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Briathe customer app willw if be live monday. Can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. 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 welcome back. And drumroll, please, its time for the favorite stump santoli. We are doing it early. I need to move town after this. I have been completely stumpable today. We had backtoback 14hour days, no excuses. Question number one, goldman sax consumer arm claims it is raising the deposit rate, what is the new rate . A, b, c . 1. 2 . Correct. That is so high. I checked a couple times, it was 1. 05 before this. 1. 2 . . Its interesting, you used to not go with the Bank Offering the highest rates. That is goldman trying to build his franchise. This should pull it off. If they dont get deposits with this move. The markets. Question number two, the wall street journal says today china may not become the number one box office this year because of weakening tick sales and a drop in its currencies, heres the interesting question what is the average ticket price for a movie in china today . A, b or c . In u. S. Dollars. In u. S. Dollars, okay. This is a pure guess. Im going to say 6 bucks. No, its a, 4. 50. We threw 8. 55, that is actually the average u. S. I feel like we are in that mode where things are in china are probably more expensive that you think they are. There is that calculation. I was almost thinking we should build in 14. Im going to china to watch some movie, its a bargain. There is no bonus question d. Tenyear treasury yields fell to the lowest level. Today its around 2. 17 . Which of the following s p 500 companies does not yield more than the tenure. Is it a, apple . B, macys or c, ibp . That would be apple. Yes, correct. Apple is under 2 . It is 1. 26 . I thought ibp might be a strong defender in there. Stocks have been depressed. They havent cut the dividend yet. They cut it once in half in my living memory. The stocks got crushed. I think we knew. Yeah, exactly. That was not the case. So, yes, apple yield is 1. 62 , which is lower than the tenyear yield, which itself is very low. I think the Overall Index is around 1. 9. I not that much lower. You are tough to stump. Not bad. Can we briefly get your thoughts on tomorrow on the other thing thats happening with European Central bank. Sure. They are also meeting. They have to orchestrate a bailin, in spain. Some feel its the feds taper announcement. They will handicap how they might wind down qe . I think people are kind of geared up for a wishy washy net hawkish praej message. The director surprise could be they want to get on with things and get out of this. The euro is back at about 1. 12. The euro trended in that direction. Exactly. Maybe its one of these opposites, the u. S. Dollar, im looking at the index, its under 97. How much lower can it get . On a lower side, we have seen the everything, in terms of Corporate Bond level the demand for paper, maybe that is something that wobbles. A great point. We will see what happens tomorrow. I will be here tomorrow. You will see me at 5 00 a. M. Have a good one. Thank you, everybody, for watching closing bell with santoli. Fast money begins right now. Fast money starts right now live from the nasdaq markets overlooking new york citys times square. Im mellissa lee, the traders are pete najerian, karen feinerman, guy adami. Oil is getting crushed. Take the Energy Stocks down with it. There is one name some traders see as a bargain. Plus, more tradings are soaring in both the nba finals and the stanley cup. Well give you the names. Later, stop strategists at