The tech rally still has room to run. Thank you. See how that works. Intels chief Financial Officer bob wan is back with us, talk about the chip anchors better than the expected earnings and concerns at rival amd could be taking a bite out of its business. They had to defend themselves on the intel Conference Call. Some of the analysts asking about that tremendous competition from amd these days. Yeah. Well ask him about that so lets begin with amazon still weighing on the tech sector. Bertha coombs has more. Reporter following that earnings misamazon seeing its worst day since early june selling off on pretty strong volume and thats providing the biggest point drag on the nasdaq 100 but amazon is coming off an alltime high just yesterday and shares are still up fractionally for the week and in fact up 6 with one more trading day left here in the month of july. The impact on bigcap tech is somewhat muted the major tech indices are down fractionally and treating volume actually isnt reflecting any real selling concern today for the month, the nasdaq 100 is actually up. Its providing nearly a quarter of nasdaq 100 gains for july also, bucking the trend today, weve got baidu up on an upgrade. All right thank you. Its the time to get in or out of the tech sector let bring in tom forte who still likes it and ruin who is a little more bearish. Tom, make the case here for the incredible run in tech for the last couple of days aside, continuing in the back half of the year and beyond. Sure. Theres a lot of reasons to still be bullish in the technology sector. The primary one is disruption, so if you look at the legacy retail space, amazon is letting disruption there and with advancements in Machine Learning and Artificial Intelligence the gap between legacy retailers and technologyenabled ones will broaden. Look what they are doing with alexa which is driving adoption for the Consumer Internet of things today its the connected home, and in the future it will be connected cars, a lot more, and then lastly if you look at apple and the possibility for greater augmented reality in the iphone 8, that could change how consumers shop for example, could you go to a physical Furniture Store and see a wide spectrum of inventory leveraging, augmented reality, so i think disruption is the primary reason to remain bullish on tech stocks right now. Ryan, youre our bear, and im going to guess it has something to do with valuations, yes . Valuations are definitely part of it the nasdaq is hundred trades at 24 times future earnings versus foreign stocks, emerging markets 12 times future earnings which i think is a better deal in general, but they get more of a bubble being formed because now you have billions of dollars going into etfs which are capitalization weighted and a lot of them going to growth etfs, amazons, microsoft, alphabets, all getting more overweighted and the Money Managers who underperform rather are being forced to buy those stocks as well you know, further pushing those stocks up and concentrating portfolios and only a couple. Okay. So what kind of damage could that do . What do you expect to happen when this bubble that you see building bursts . Well, like anything else. Too many eggs in one basket and thats the riff here when that goes out of favor, you know, when, not if, youre going to be left holding had the bag because you dont have enough diversification in your portfolio, so thats my biggest concern owning growth bigtech stocks right now. Tom, whats your response to that my response is theres a reason why valuation is the way it is. You have a lot of openended growth stories, amazon, facebook and even netflix recently, and to the extent that they are showing multiple legs to pull future growth. If you look at amazon, its increasing their Grocery Sales with the addition of whole foods, and then increasing their sales in the apparel sector and then for facebook they are doing a tremendous job leveraging and driving further revenue in mobile advertising across multiple platt formz so its an openended growth story with multiple Technology Companies that are showcasing that which means strong valuations and more future upside for a lot of these stocks. You dont hear a little voice at some point whispering to you the case brian is making about valuations here. I mean, you cant go up forever. If you want to play devils advocate on valuation i covered the internet space in the late 90s and 2,000s and a number of stocks get well ahead of themselves, but if you look at the case of amazon per se, you can see how they would get to, you know, perceived future growth and ultimate margin expansion. The largest growth vehicle right now is the Cloud Computing efforts, and thats also the highest margin unit, so i think, yes, can you point to valuation, but an argument could be made that in case of amazon they could be having continued Strong Revenue growth and potential margin expansion, especially from the Cloud Computing effort. Brian, by the way, its not as if technology is doing all that poorly today. I mean, the nasdaq is fractionally lower, a lot of these are holding their strides so it doesnt look like the momentum there is really turning yet, does it yeah, and i dont think it is, but if im an investor, the last five years were so hot in tech, will they repeat that the next five years . Odds are probably not. Theres just so much other great value in the market right now, that you know, i just think that tech is not going to be the best place to be when youre looking back retrospectively five years from now. Do you like anything in technology i mean, youre throwing the whole thing how the . You know, i think can you have a component of that have in your portfolio, but, again, if im a betting man and im looking back, you know, at my portfolio a couple years from now, thats just not where the value, is and youre further along in innings in technology versus, again, Global Markets and other sectors that have a lot more value here and are just starting to move thats where i would want to be putting my money for the longerterm growth. All right guys, thank you very much. To close out the week tom forte and ryan payne. With the dow up 20 point, oil has been strong today, the dollar lower, technology lower, lets get and the transports have come back a little bit today. In our Closing Bell Exchange jeremy hill from old black heath companies is at post nine and so is steve grasso and Rick Santelli checks in from the cme, and, steve, i mean, oil has has one of its i think its its best week of the year with the gains here and were just that close to 50 a barrel for wti. And its not kraumping the style of the stock market overall. True, and the only problem with 50 a barrel oil is so much production comes online at 50, bill thats what usually stops oil from moving higher is that 50 mark, but i think that conversation you had prior to us cramping on really dovetails nicely with the overall market you need to see money coming out of tech and into energy in order to see the rotation the back half of the year the market can stay right here or the market can bust through old highs, but you sort of need energy to start lifting a little bit of the weight that the market has been carrying all with those, you know, four or five names in tech you need to see other leadership weve had health care and also the financials if energy kicks in and starts doing some lifting, you can see above 2,500 easily in the s p. Jeremy, where do you guys think that theres the most opportunity right now . Well, actually we very much like Investment Grade bonds and, you know, high quality credit assets in this environment i think are going to perform quite well, but if youre just a stock investor, i mean, its hard not to chase Growth Opportunities right now. Especially, jeremy, when your favorite opportunity seems to be yielding not very much, you know the yields have fallen so low, whats the attraction for Investment Grade Corporate Bonds . Well, Investment Grade Corporate Bonds, remember, dont have the same type of correlation and spread compression and this type of an environment, and and i would i would characterize where we are in economics as being weird. I mean, the tailor rule doesnt apply, nehru is out there hand what are we doing in productivity and when were looking at assets that promise a steady return, Something Like a high quality Investment Grade bond, its something, you know, that we think you have to consider, but thats that has to be only part of your portfolio, and, again, to chase assets that are growthy, thats not, you know, in our opinion something that you shouldnt also do. That should definitely be part of your portfolio, but i think you have to want to pear that down right now. I wonder what they teach in b school with all the acronyms going out the window. High yield. Rick, the dollar continues lower. Were at year low for the dy and setting lows for the yen and euro as you well know. Looking ahead, do you see that continuing, or are we searching for a bottom yet you know, i think its going to continue it, and i still like to frame it looking at the euro as the main character in this play, and the euro, of course, 117 handle getting close to 118 handle, trading at levels we havent really closed at since early 2015 it really looks to me, bill, you know, if you take a macro view of the fx market and how all the crosstrades are euro friendly, certainly a 120 euro versus dollar is highly possible which means theres probably a bit more pain in the dollar index, and over the next several weeks its going to be very interesting to see how jobs reports numbers, wednesday adp, of course, private sector hiring friday well get the big july report from uncle sam im sure that those will play into this conversation, and as far as jeremy, you know, jeremy is a smart guy listen, corporate securities, especially the Investment Grade. If things get dicy, the other spectrum is going to go with the dicy stock market. Youll see the high yield and junk spreads widen, by i always say corporate Investment Grade, you have to be happy with the yield because if things turn and spreads widen, you always want to make sure that you can live with the cash flow if you dont care to liquidate based on Price Fluctuations and, steve, what would you add to that, especially, you know, weve had a lot happening with the Health Care Bill not coming together. Were starting to think about what is may look for and do for the u. S. Economy and the gdp number this morning was okay but still not great. Right. So how are you looking at landscape . Everything you just said and the market is down four handles in the s p so the bears have gotten tremendously frustrated you cant knock this market off around alltime highs. That passive investing that we always talk about, it goes into those top names, and it just keeps feeding in, and thats a big reason why the market continues to make new highs so dont discount that. I think the market is still sideways to higher. Jeremy, you going to look for any yield in the stock market . I think thats a little bit harder actually i certainly think theres some of biotech names that have pretty good yields you know, some of the Larger Companies definitely have some that well lock at as well, some of the industrials, but, i mean, if youre going to allocate new money to the u. S. Stock market, its hard not to make a case for chasing growth in this environment, even though that is by far the riskiest proposition. All right thanks, everybody. Have a great weekend, too. Jeremy hill, steve grasso and Rick Santelli. We have about 45 minutes to go with this dow hanging on to a 22point gain today, and the dow has been outperforming of late the nasdaq coming off some weakness, still lower by a. 21 . The russell the weakest again with a fivepoint decline. Up next intel cfo bob swan is going to break down the chipmakers latest earnings on a first on cnbc interview and tell us how his company is trying to fight back against amd. President trumps chief strategist steve bannon reportedly wants to regulate google and facebook as utilities. Coming up, well talk to the journalist who broke that story and find out whether theres a chance that mr. Ban nons vision could become reality. We want to hear from you. Reach out to the show and share your thoughts with us via twitter, facebook or email. Youre watching cnbc, first in business worldwide these days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Mixed day on wall street with the dow up 21 points in record territories, but the s p, the nasdaq and the russell in the negative as we head to the close for the end of this week meanwhile, aircraft partsmaker Rockwell Collins is one. Best performers in the s p 500 today after the company beat wall streets earnings and revenue estimates for the Third Quarter thanks to higher Profit Margins and its acquisition of be aerospace up almost 4 in todays trade. Shares of intel reporting better than expected revenue yesterday and despite having a huge market cap the ceo found himself defending the company against a much smaller rival during the Conference Call with analysts josh lipton has the details. Josh thats right. He was asked about an old foe, amd, company on the move introducing products that take direct shots at intels business its a fight we know thats began on for a very long time. In this corner intel with a market cap of 1666 billion amd 13 billion in the last fiscal year intel did 59 billion in sales and amd 4 billion and intel dominates the market that its in. For the market for pc prosors, 91 share according to idc and amd 9 but amd is getting a lot of attention recently introducing new chips for pcs and servers on the call, he didnt seem too worried. Amd has raised up a bit with more recent products and you can see us responding. This is a traditional performance battle were very accustomed to it, and youre comfortable in reacting and competing very aggressively. But maybe he should be a bit more concerned Patrick Morehead is former vp at amd. He says for certain workloads that use a lot of processors simultaneously, for example, if the company were to run Something Like a complex drug simulation, its amd that has Price Performance advantages with its new chip meaning the corporate customers will get more bang for the processing buck intel disputes that saying it has the advantage with chips that are faster and more powerful, but investors clearly taking notice. Intel basically flat and amd has surged more than 100 . Guys, back to you. Thank you, joshua moving higher after that beat. Joining us to talk more about this, you know, first on cnbc interview as we mentioned, were joined by intels chief executive officer bob swan good to see you again. Welcome back. Wonderful to see you. Great to be here. Lets start with this amd rivalry. What do you guys say and especially when you consider the Stock Performance the last year between the two companies. First, i would just start with the opportunity that we see and what youve charactered as one of the most exciting corporate transformations in history here at intel. As you know, historically weve been a Pc Centric Company and over the last several years weve been migrating to what we call a data Centric Company at a time when the demand for High Performance compute is as high as its ever been, and thats what were focused on. Thats what weve been executing against and after a record 2016 we delivered a dynamic Second Quarter and launched the products going into the second half of the year so were really excited about the outlook and really excited about our performance and we welcome competition. It makes us stronger bok you guys have reinvented yourselves and if its the case that amd and nvidia have advantage in Processing Power for some of the new applications, couldnt you throw money at it and catch up and would investors rather hear that than hear you say were not worried . Well, i would look about it this way we look at it as being a 200 billion market, and within that market, we have roughly had a 40 share and we see all sorts of opportunities to invest and grow and do it in a very disciplined manner, so we are investing across multiple dimensions of the business, and were very excited about our execution against a Competitive Dynamics that were that were operating against. I hate to keep harping on the stock price, but lets face it thats the report card, and i know know ceo or cfo is going to come on here and wring your hands publicly about the price we mentioned how flat the stock has been your stock has been flat for the last three years youre essentially right where you were back in july of 2014. What is wall street missing . I mean, you have to be frustrated youre obviously excited about the new initiatives of the company. What is wall street missing about that, bob . Again, we have very exciting strategies and a straight set of products, and weve grown the business very effectively over the last couple of years, and were invested in the right spaces Going Forward i think what investors are looking for from us, bill, is just keep delivering, do what you said youre going to do. Weve got a very exciting acquisition that were about to close with mobile eye that is going to expand and a very big opportunity Going Forward and were going to keep delivering on that. Weve got a great strategy and a great team and were excited about Going Forward and i believe, as we continue to execute, as we have over the last several quarters, that the stock will take care of itself. Being a total Addressable Market you mentioned mobile eye which i was just going to raise there. Theres been a huge increase in the amount of technology and chips in cars these days how much bigger can that get and how do you make sure mobile eye and intel are at the forefront of that . Well, thats thats the excitement when we look at the silicon required in autonomous driving over the course of the next ten years, we look at a 70 billion tam, so when you think about intel inside the pc, that was a huge market for us intel inside the data center, that was a huge market for us. We think silicon inside Autonomous Vehicles is even a bigger market, and we believe the combination of mobile eye and intel are very wellpositioned to capitalize on that opportunity. Bob, im going to be looking for an intel inside sticker. Lock, if its an uber or lyft or car im buying, is that the idea why not . It works for computers exactly thats our excitement. Intel inside the pc, intel inside the Data Center Intel inside the automobile. The needs, the compute needs for an automobile. Its going to be like a server inside a car, and who is better positioned to deliver High Performance compute than intel combined with mobile eye Going Forward. Its an exciting market for us were very excited Going Forward. Got that. What about the internet of things though . Mean, ive been reading that youve been deemphasizing some aspects of vat which had been a growth category, especially in wearable technology. I know youre deemphasizing computing and emphasizing data and silicon. What does the internet of things play in that it plays right smack dab in the middle of the our data centric strategy our business quarter this quarter drew 26 , its margins expanded and we continue to invest and develop opportunities in really a couple of different big verticals. Industrial, transportation and retail and video those big verticals are the opportunities that were investing behind, and, again, as i indicated, 26 top line growth in the quarter and expanding margins. Its an increasing portion of our data centric set of businesses capitalizing on the opportunities that we see. Along the way well emphasize some stuff and deemphasize other things the internet of things is a big part of our business Going Forward. Very good thanks, bob. Appreciate the time. Bill, kelly, thank you. You bet bob swan, the chief executive officer at intel. Which is helping to, you know, helping to mitigate some decline and other tech names that weve been talking about. North korea launching an Intercontinental Ballistic Missile for the second time this month. Nbcs happens nichols has the latest details from the pentagon hans what weve learned here recently is the joint chiefs of staff have called his counterpart in south korea to discuss military option oz, something we dont usually hear about so its remarkable, a, they discussed it and, b, that they are actually publicly reading this out weve also learned a little bit about the missile, how high it flew it went straight up into the air. It the has a theoretical distance of about 6,500 miles. Just to give you a sense, the cities it could potentially impact, seattle, denver, los angeles. This is very serious they are treating it very seriously here at the pentagon the one caveat to all this is they dont know how successfully the reentry was, and they also dont know whether or not this missile was tipped with any sort of payload you put a payload on it and put a Nuclear Weapon on there, its unclear how much further it could fly and whether or not all those distances would then need to be slunk down a bit and recalculated they are treating this very seriously at the pentagon. Guys nbcs hans nichols. Thanks for update on that, and i would point out the obvious, that the market has not responded to that at all if we would expect that. Art cashin mentioned that, especially with the drama in the white house, the way china has been amass troops and still nothing major. Well see right now the dow is still positive a gain of 20 points. As we close out this week the rest of the major averages are negative tobacco stocks up in smoke today after the fda announced it wants to cut nicotine levels the fda commissioner spoke about it on power lunch. Well have the highlights coming up here. And amazons earnings dragging down the tech space well talk whether apple can tu tngrnhis around well have the results next week stay with us wheres jack . Hes on holiday. What do you need . I need the temperature for pipe five. Ask the new guy. The new guy . Jack trained him. Jacks guidance would be to maintain the temperature at negative 160 degrees celsius. That doesnt sound like jack. Actually, jack would say, hey mate, just cool it to minus 160 and were set. Good on ya. Oh yeah. Thats jack. I enjoy the fresher things in life. Good on ya. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices from over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. 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, with the dow up 21 s. Other averages dipping lower as we head into the final half hour. Tobacco stocks in a heap of pressure after the fda announce it had wants to lower nicotine levels in significant et cetera to nonaddictive levelsch the agency may also eliminate flavoring that appeals to young people shares of the tobacco stocks down bigtime attila down 10 and British American down 2 and even as analysts say it may not be so bad for them well see. We will see oh, brother. 30 minutes left in the trading session, the dow the lone gainer among the major averages up 21 points joining me on the floor of the New York Stock Exchange is mr. Priest costa from empire executions clearly with all thats gone on, now weve got this icbm that north korea has launched, wall street is all about earnings. With good reason. I wouldnt say they have been stellar but pretty close to stellar. Thats something you have to keep an eye on as far as north korea is concerned. Why arent we seeing a response to that all the guys say this is the most powerful icbm they have launched yet. This is beyond me ive been watching north korea for the last three and a half years, and they have accelerated everything they want to be a major player on the stage and they will do something at some point. Hopefully im wrong about that. Yeah, right about it just seems like they are gearing up for Something Like that, i dont know about a disastrous effect but it could potentially because they are not dealing in an isolated environment. They would be looking at, you know, going south korea, one of our biggest trading partners. It could be a substantial problem and they are taking a blind eye towards it have a good weekend. Thank you, you too. Kelly. Time now for a cnbc news update with sue herera. Heres whats happening at this hour, everyone. Weve been talking about the situation with north korea south korea is now weighing. In the pentagon says it believes north korea launched an Intercontinental Ballistic Missile that flew for about 620 miles and landed in japans exclusive Economic Zone in the sea. But just a short while ago south koreas president says that he wants discussions with the u. S. On deploying additional thaad antimissile defense units in his country. Senate minority leader praising three republicans that voted against the skinny repeal bill that led to its defeat. Last night was an amazing moment and the credit goes to a lot of people but at the top of the list are the three who showed amazing courage to resist the pressure and do whats good for the country. John mccain at the top of the list. A soyuz space capsule successfully blasted off for the International Space station carrying a russian astronaut, italian and american at naumpt the three are joining an american astronaut and russian cass mow fought already on board the space station. Thats your news update this hour kelly, back downtown to you. Thanks very much. Shares of starbucks sinking after reporting earnings after the close yesterday. The coffee chain gave weaker than expected guidance which had gunk heim downgrading. Ceo Kevin Johnson was on eson the streerltier and spoke about the companys slowing growth. The data that we looked at has to do with the u. S. Data of, you know, thousands of restaurants that serve customers for away from home food and beverage and over time that number continues to grow and it has some ebbs and flows and what weve seen is a little bit of softening which indicates the customer consumers are spending their money on other things right now and that caused that number to slow we were very proud of the fact that even with the slowing growth of the macro number we posted a 5 comp in the u. S. Yeah, but the thing that got everybodys attention was the closing of all the teavana store. That was a whole thing yesterday. The malls, they are like creating another vacancy. Heres what my first thought was, ill be honest. Howard schultz knew when to step aside. Wow. This is the interesting question if hes still involved daytoday in the company, shares are down 10 today, sees that gunk heim has slashed its price target from 70 to 58 because it doesnt see multiple expansion and others think its rangebound. If youre him, is it hard to stay away . Weve seen this before many times, longtime ceos have been identified with their companies stepping aside just as the market has peaked for their business its happened before. And i keep remembering. You could have gotten starbucks at 5 a share. For the cost of the tall one. Brutal session there. Well see how it shakes out. 25 minutes to go the dow is up 27 and the other major averages are lower today, and when you think of utilities were usually talking power plants and water providers but white house chief strategist john bannon wants google and facebook to be regulated as utilities next. And snap shares falling about 20 since the ipo in march, but there are concerns that we could see a major llf tseofinhe social media stock on monday find out why coming up on closing bell. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at td ameritrade. Welcome back a choppy week. Weve seen a lot of dispersion across the major averages. Nasdaq has been underperforming and so has the russell, the dollar down another half a point to just about 93 and change. Dow hanging on to a gain of 26 at 28,823 right now. Washington and, well, everywhere else is britains channel 4 newsing about recent comments made by White House Communications director Anthony Scaramucci and comments made to the new yorker. Bannon himself has had a controversial path calling recently for a 44 top marginal tax rate for people making more than 5 million a year. Bannon wants facebook and google to be regulated more like utilities. Lets bring in the reporter who broke that story, ryan grim, d. C. Bureau chief of the intercept. This would speak to his nationalist tendencies i guess why just those two companies i dont know that its just those two companies and actually i suspect and the people i spoke with suspect that it goes that it goes further than that, but the sources that i had had only spoken to him, and he mentioned those particular companies. It would not surprise me at all if Companies Like amazon also fit into this, because he was talking about a theory in other words, here are tech platforms that have become basic necessities of contemporary life that have enormous power, and, therefore, ought to be regulated like Public Utilities. He used the examples in conversation of facebook and google and certainly Something Like amazon fits into it as well. Brian, im just a little confused because if were talking about how they have too much power then theres antitrust regulation to deal with that. Why make the leap from that to Public Utilities well, if you take antitrust actions say through the department of justice against one of these companies, a result very much, you know, could be that they end up being regulated through some type of settlement as a utility thats how it happened with at t, so theres really no confusion here you know, he cant well, wait a minute going back to the at t example. Yeah. At the time that was a provider of phone service, and once you deem that thats, you know, an essential public good you have to say, okay, they own this infrastructure, and were going to make sure they cant own too much of it and be anticompetitive towards consumers. What is it that they are claiming facebook and google own that nobody else can access . For google it would be search for facebook it would be the social network which Mark Zuckerberg used to refer to all the time as a social utility in fact, it was in their slogan up through 2008. By 2009 they had gotten a better legal team that understood antitrust legislation and litigation, and they took utility out of their slogan, so, you know, they have understood themselves as a social utility from the very beginning. My understanding is that twitter the same thing, that once you grow a social network to a certain size it may lend itself to having natural monopoly properties. Let me, again, as i always want to do is state the audience if you have a captive audience as an at t did or many traditional electric utilities have, you become a utility that needs to be regulated for price purposes to protect the consumers, with you there are no barriers to entry to search or to social media or even to Online Retail even though these companies have tremendous scale and, therefore, that kind of power. Maybe we need to ask bannon this, but when you talk about regulating them as utilities, what exactly are you talking about here just the amount that they can charge advertisers or, you know, how would this work . The argument would be that for somebody like facebook or google scale itself is the barrier to entry you know, ask bing, you know, with millions and millions of dollars whether you can create a royal search engine. Okay, search is an essential thing. Were not going to allow google to kind of use its dominance, its monopoly over search in order to from there use that leverage to control the rest of the internet were not going to allow facebook to take over the publishing industry, not allow it to take over the advertising industry. Look at google has so much searches for a product, start okay ansome relative to google im sure that google would love that not to be the case. Were talking about them having lost a dramatic amount of apple share and five, ten years, its the only place to buy music and movies it the controls your phone they have lost dramatic market share, especially on the music and movie piece of that as well. Im glad you guys are asking me the questions and i think Business Reporters like yourselves are going to spend a lot more time about monopoly politics over the years to come. Its becoming an issue both on the right as you see it with steve bannon elevating it here and on the left. This is something that both wings care about the center, absolutely doesnt want to talk about it. You know, they will say things like you said, hey, look, all you have to do is start up a url and you can start your own social network this is not a monopoly so, you know, it takes a little bit of imagination to try to understand what its like to be a Small Business to lets say lets say youre an advertiser or a publisher, something that i know a lot about. If youre a user, nobody is forcing me to be on facebook guess what, i have the option to opt off. I grew up i grew up drinking well water. That doesnt mean we dont have water utilities. If you told me i can only access information from if you said i can only access information from facebook or google, then i you know in, would i understand your point but i dont. Thats not an issue. Well, you can only access advertising effectively through facebook and google. Ask any publisher the last decade 99 of advertising growth has flown to facebook and google rather than to publishers, so the question is do we want to live in a world where facebook and google end up owning all of the Online Publishers . And, hey, yeah, can you go to work for us and start ryanblogspot. Com, absolutely you can do that. You could have started a Telephone Company back in 1955 if you wanted to, but guess what at t had it on long. You werent going to get very far, so the question is what as a society do we believe is essential, and are they delivering what we need and if not are there ways that through the department of justice or through legislation it can be corrected . Yeah. All right weve got to go, ryan. Great conversation. Really appreciate it. Great story ryan grim of the intercept joining us here. Oh, boy, breaking news on Martin Shkrelis trial. Meg tirrell outside the courthouse in brooklyn whats going on . Reporter hey, bell, the shkreli case is now in the hands of the jury. However, they will not start their deliberations until monday this comes after his defense finished up their closing arguments this morning the prosecution had an opportunity to rebut and then the judge just charged the jury basically explaining their duties and walking through the law as it applies to all the counts against him as a reminder he has been charged with eight counts of security fraught, conspiracy to commit security fraud and wire fraud. Of course, he pled not guilty to all of those counts and now the jury will have to decide on those counts, but thats going to happen monday morning, guys, so a weekend here of waiting in the shkreli trial, bill and kelly. Are they sequestered or are they free to go . No, they are not sequestered. Of course, there has been that conversation about trying to keep shkreli and the attorneys in the case from talking about the trial, but thats just in and around the courthouse so shkreli is free to talk about the case on social media he has been and been writing on his facebook a lot when hes left the courthouse so, no, the jury is not sequestered. Like i said, oh, boy. Thanks, meg. Love your live tweeting that have trial its been great, great stuff. But its an anticompetitive. Anybody can do it. 14 minutes you love that story, dont you i just this is all separate from the Net Neutrality thing. Yes, i get it if youre going to regulate something, the internet itself, right . Not the platforms on the internet. And even there. I know, but we digress. 14 minutes left in the trading session with the dow up 36 points when we come back, we end the market week and the market month, except i think month is still david darst will join us with his word. A look at ubers rumored top choice to run the company when we come back when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. upbeat dance music dance music abruptly stopping dance music starting then stopping upbeat dance music upbeat dance music bell ringing all right. We head to the close here, ten minutes to go. Joining us right now is our friend and independent consultant david darst with his acronym of the week. You get suggestions all the time. We had a great one. Im going to go there august which is coming up this coming week as you know, named after august u. S. Caesar who followed his nephew, his uncle julius caesar, the rumor is that august, augustus stole one day from february and put it the in august so that he would have the same number as july named after julius caesar. Its apocryphal but i do like that story augustus means favored by the gods and lets hope this coming month is this week i think we need to remain aware, volatility is low. Come up a little bit reached an alltime low this past week. Valuations remain high and stretched, and by many measures, price to book, price to sales. Market cap to gdp, weve talked about that for many weeks, aware. We need to be aware. Number one is the anemic the anemic inflation numbers, janet yellen and others have talked about as a reason to perhaps delay excessively fast raising of the interest rates, policy interest rates. W is a weaker dollar thats a tonic and a bit of moxie, an all new england beverage, a bit of moxie for the market the dollar is down about 7 this year. How do you reconcile that with anemic inflation . Anemic is from the greek word without blood. A bloodless inflation, to spoil or corrupt or weaken. Already your most epic one. You havent had the buying pressure to raise prices there, bill, and kelly. They are on their knees in the control room right now. Awar the Affordable Care act repeal was reject the, so i think thats indicative of some of the political dysfunction thats going on. The r is the rebounding oil prices july 1st oil was 42. Now its 49 and change thats an increase of 17 , thats a good thing as well and that leads finally to e, earnings, which are on track to increase about 11 we talked last week they might be up 8 , but youve seen good numbers coming through by so many Multinational Companies in particular next week weve got the jobs numbers. Weve got the ism manufacturing and nonmanufacturing. Youve got construction spending, so there will be a lot of Motor Vehicle sales got a lot of news flow to set the tone for the coming month favored by the gods. Whats your take, david, on why the market does not seem to respond at all to this icbm Missile Launch by north korea . As weve been discussing here, the military officials themselves, both in the u. S. And south korea are very alarmed by the capabilities of this particular missile that was launched. Well, i think, bill and kelly, the geopolitical part of the equation always needs to be kept in mind i think people need to have a little cash that they can put to work if things did come down everybody ive talked to this has been the most not reviled and hated market, but the mostig nor ignored market increase ive found very few people wildly bullish. Like automatic pilot. Correct. And i think thats the reason to have some cash, if there is some untoward event. It is something weve got to keep an eye on its a dangerous thing, and i think it needs to be dealt with in a statesmanlike and assertive fashion. All right thank you, sir. Thank you so much have a great weekend kelly, bill you, too. Speaking latin is a lost art, unfortunately. We go away with five minutes left with the dow up 38 points and the other major averages are negative right now well have the closing countdown when we come back and well look after the bell to see if apple can come to the rescue with its Earnings Report next week stay with us pass please. Im here to fix the elevator. Nothings wrong with the elevator. Right. But you want to fix it. Right. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. T baby crying fly me to the moon elegant music and let me play bell rings just inside the 2 00 mark as we head to the close i just got word that a late bye program of 900 million came into the market here giving a slight bump to the dow as we close out this week. We mentioned this is the busiest week of this cycle for Earnings Reports, and, boy, did it deliver. That was the underlying support for this market. Dow finishing the week at the highs and in record territory. The nasdaq a different story that was a drag on the market this week. We had that weird sale program on wednesday midday, and that took the on thursday. And that took the wind out of the market sales there and were finishing the nasdaq way out of record territory the dollar index continues lower. Thats a low for the year. Were at a twoyear low against the euro right now there we are at 9329 on the dxy. That helped support oil, wti, the march to 50 this has been the best week for oil this year and now were just at tapin away from 50. Whats interesting, bob pisani is the correlation were seeing finally with the transports. Thats the highest level weve seen on oil since late may the transports are at their lowest level since late may. Im just saying. And the amazing thing about this week, despite everything, s p is flat. Oil is up 9 best week in ages and exxon mobile hit at 52week low today. Production was on the disappointing side and earnings misses overall and that was a very difficult time for them the Conference Call was ver tough. Lots to get to coming up here well get you set for the Apple Earnings coming up next week as well on the second hour of closing bell with kelly evans and company. Have the a great weekend, kelly. Thank you, bill welcome to closing bell, everybody. Im kelly evans. Heres how were finishing up the session on wall street today we have one record close for you. A 35point gain on the dow 21,831, a new closing high its closed up 21,800, took two sessions to go from above 21,7 to above 21, 8, 171 points shy of the 22,000 mark the s p 500 dropping to 2472 the nasdaq beleaguered well talk about some of the tech weakness the last day or so and the russell 2000 down a third of a percent more weakness in the dollar, too, half a point drop boosting oil and boosting gold and earnings in the stock market, too. Weve got apple reporting earnings next week will that be enough to save the tech sector after amazons disappointing results. Well have that coming up today. Joining me on the panel is cnbc senior markets commentator Michael Santoli and evan newmark. Welcome, guys. Mike, weve had a lot to digest and the biggest week for earnings, 175 s p companies. Major news, both domestic politics, geopolitical with the north korea Missile Launch again today. Yeah. And then this massive move lower on the dollar, and then the tech stuff over the last day or two. And it all washes over the market and basically kind of holds it steady which is kind of the surprising thing the market is allowing earnings to come through which both confirms the fact that we have a continued earnings rebound coming in roughly better than expected the way we always seem to think its going, to but then the Immediate Response in the companys reporting has been net negative, if the Overall Index managed to hold up i think thats kind of a win by default. Evan, what do you think very, very tenacious. Im a little surprised actually. At how strong the market has been yeah. I mean, basically youve had youve had a lot of reasons for the market to sell off, and the market really hasnt, and all i can think is maybe just the algorithms are sitting around waiting for it you know, its its not its been generally low volume theres been some big starbucks was down 9 . Starbucks down 10 and boeing up 10 and verizon up 8 yesterday. A bit odd, and youve also had, you know, the airlines havent had a bad weak youve had pockets of weakness but overall the overall markets have barely bunched. I take issue of the constant use of the term tech wreck you call it tech wreck and literally most of the tech stocks, amazon are 2 to 3 a pretty rough couple of hours yesterday. Its crazy. All the major tech stocks are plus or minus near their alltime highs. Its true, but what i do think is going on, you see all the individual negatives that kind of get the reaction. Right. But then the market in aggregate takes a step back. Is there a macro story being told in these stories and something to be unwelcome . Not really something that hits the credit markets. No, no, no, low doing dollar and high liquidity supporting things for now. And take a look at the accounting for the difference. Chevron was up 2 . By the way, exxon was up health care names, United Health was higher insurance, i should say, travelers higher by 1 again, that was all on the dow nasdaq, as you mentioned, big decliners, 5 drop in netflix and starbucks is the worst performer and mattel was next and Western Digital down 7. 5 and mikon down 2 . Baidus earnings beat. That stock was up 9. 5 im sure well talk more about amazon and that doesnt matter amazon, does it move or the company . Doesnt matter what they report literally jeff bezos could have come out and said well never make profit, and you know what im saying directionally theres so much faith in him, and it has been well rewarded over time. Im not saying you shouldnt have faith of all im saying is, you know, with almost any company, now i would say with the exception of netflix and amazon, they seem to be untouchable in terms of valuation. Yeah. Reminds you of that a little bit. Brian, want to bring you in here as you look at how everything is shaking out as well are the there opportunities from some of these dislocations, or is there any overall message from earnings . Should people be looking for more opportunity in this market . I think thats a real message here that earnings are beating expectations and you do have some winners and do have losers, and this is an environment where stock picking does matter. Clearly you look at the major averages, and it kind of washes out which highlights the importance of diversification but at the same time if you have one stock going down 2 and another up 2 , right, you obviously the Stock Selection is beginning to matter, and its mattering more and more as the year goes on weve noticed that correlations amongst stocks here so far have lowered and it looks to continue to be lower. Its a low volatility, lower correlations seems like a pretty Good Opportunity to look within any individual sector and try to pick your spot, where you want to be for the long term. As far as the tech side, i wouldnt be surprise federal we saw the nasdaq to get back up to 6,500 shrug off some of the quick selloffs that we had yesterday and a little bit of weakness today fact of the matter is revenues and cash flows are looking pretty good. The economic backdrop is looking positive and improving with whats not to like. Some macro stuff, gdp numbers, 2. 6 , up from 1. 2 the price deflator was very weak. It was a little more it was okay, but definitely didnt give you the impression that this economy is sort of about to race ahead faster than we expected again, its more of the same if you think that the tech sector and nasdaq can get to 6500 i think thats implicitly a bet on more slow growth and a bet that the rest of the market wont upstage technology because you wont see the yields go higher. All of a sudden you have like an incredibly Strong Production number or something. Basket of stocks deserves to do well and almost what we called the trump trade but its not the bigcam names. I would like to say maybe you can read something positive going back into that yesterday afternoon, but theres no news on that front. Its weird. I dont think, you know, its one of those things where as long as theres no big surprises, things will just kind of go ahead, you know, as is, because nobody you know, usual will you i need a reason to sell and there hasnt been any reason to sell and people valuation does not matter until it matters, so it will be one of those things where until people wake up one day and they go, oh, geez, im owning netflix at 250 times earnings ive suddenly made, you know, thats why we have a little hiccup, the bottom falls out and netflix dropped 5 on basically nothing. But the fact that evan can name the five or six stocks that trade at 100 times earnings shows you there they are kind of the exception. The overall market is really pricey, but its not like nosebleed like that. Thats why its so interesting because this is not the internet bunnell of 2000 its not the financial, you know, leverage bubble of 2007. Its not its not, and thats why in a weird way its a little more insidious and dangerous i think. By the way, apple comes out with its earnings next week after being up 29 we wonder how that will affect the tech sector after missed reports from f. A. N. G. And other tech stocks. Joining us to talk about is daniel. Good to see you. What are your expectations for apple . Feels like the stock is up and theres a Holding Pattern waiting for the next phone what are you looking for next week a couple of things were looking for. Clearly we want to see that the results on the iphone are in line but recall this is a season nall seasonally weaker time of year the big question is can apple execute on its big iphone 8 cycle, and secondly when you think of what the power of the company is, its about their ecosystem and whether they are able to downto attract developers to the platform who can then build on what apple does. That said, apple is not really a f. A. N. G. Name, right . Its had a great year, but we have facebook, amazon, you know, sometimes people will throw apple in there, but its more netflix and google and microsoft. Why isnt apple one of those names . Well, i thinks a couple of reasons for it apple is very much a product company, so when you think about the dynamics of its business, you go into the december Holiday Season where they have a big ramp in the iphone, and then it comes back down, and so thats one piece of it, and then the second thing is if you think historically, apple has been able to affect execute through many different product transitions whereas if you look at other Companies Like blackberry, for example, they struggled, and what we think is interesting with apple is that they have been able to layer on new products and increasingly services to what they are doing, but theres still i think to your point a tremendous amount of skepticism whether they will be able to actually do that over time. Brian, what about you guys . Whats your expectation there . You raise a good point. Why is apple not one of the f. A. N. G. Names and the tech sector is really an eclectic mix of business. Amazon is what ge was in the 1960s and 80s where its more of a conglomerate, Consumer Discretionary and apple is much more product oriented and google and facebook are much more weboriented so you cant look at the entire sector through one lens you have to look at it through a variety of different perspectives i dont have strong expectations or any strong opinions on apple. Im a little bitter about the fact that they are getting rid of the shuffle i was about ready to upgrade i think mine is 12 years old now and maybe ill have to find one on ebay instead. I had a shuffle with a little clip those were great could put like 150 songs on them never had to worry about dropping it. I dont want to wear jewelry when im working out or carry phone when im working out i think people have somewhat lower expectations because people are waiting for the product upgrade, right waiting for the next iphone. I dont really have High Expectations im not sure if investors have High Expectations, and i dont think people are looking at them as a belle weather by the way, you know, ive been wondering since this movie baby drivers, kids has an ipod, wonder if its going to create a retro trade. Should totally do a retro. Cassette tapes, i doubt that will even happen even. In terms of the upgrade sector, one of the cases on apple, the case of iphone is so huge now, well see more of an effortless or highvolume upgrade cycle do you think investors next week will be kind of hinging on exactly what the clues for that are . I think a couple of things. So next week they are going to look for how the business is performing right now or in the quarter that just ended, and they will also look for guidance and the guidance in the September Quarter will be impacted somewhat on when the actual products arrive and they can deliver it, and the more important thing and you touched on ipod and shuffle. Whats been interesting about the company is they have been able to bring their users with them over time and they have been able to create a User Experience around software and services and so when you go from one apple product or service to another, your data follows you, and people value that. Yeah. And weve seen that the customers are loyal, and also apple has been able to attract new people. Real quickly, whats your price target on apple . We think theres significant upside over the next 12 to 18 months think apple has a lot of opportunity, theres risks, competition is fierce and well wait to see how they do. Brian, appreciate you being here as well we do have breaking news to get to on Martin Shkreli whats happening Martin Shkreli and his attorneys left the court this afternoon and we ended a little bit early on this friday as the case will be in the jurys hands. However, they are not going to start deliberations until monday morning. The timing was too close to the end of the day on friday for them to go into the room and start the deliberations, they, of course, have eight counts to decide on, conspiracy crowd and conspiracy to commit wire fraud so that will start monday morning. We did ask shkrelis attorney whether they had any comment on how the trial went today and they declined to comment to us outside of the courthouse, shkreli himself has been banned from speaking about the case in and around the courthouse, though he did in the video tried to get between him and his attorney to maybe keep me from asking questions just now. A pretty tense day as they finished up the case and an opportunity to rebut that. Deliberations will begin monday morning. Martin shkreli goes home for the weekend. Meg tirrell following that for us. The u. S. Has detected a north korea Ballistic Missile launch today and hans nichols joins us with the latest. Reporter they are doing the analysis trying to figure out how far this missile theoretically could have traveled they shot it straight up in the air and let it come down that goes 1,000 kilometers and you tease that out for how long and how long it was aloft, it means it reentered into the atmosphere, and if you tease all that have out you could hit major u. S. Cities, denver, seattle, los angeles, and then you factor in the fact that the earth is moving, its spinning, you could potentially have some major east coast Population Centers in target, in range. We know the chairman of the joint chiefs of staff general dunford has spoken with his south korean counterpart talking about military options guys, i have to say rarely do they publicly acknowledge talking about military options its even less so that they say they are doing it with an ally, in this case south korea everyone here in this building is taking this very seriously. Guys hans, thank you hans nichols at the pentagon ahead, chief executive jeff immelt leaves at year end. Is he poised to take the helm at uber first, oil is closing in on the 50 mark upwards after climbing nearly 9 last week. A bull bear debate on their next move contact the show on facebook or twitter or by email youre watching cnbc, first in business worldwide rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. A used car, for years, centurylink has been promising fast internet to Small Businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. Theres chevron finishing the day higher nearly 2 after beating revenue estimates while exxon closed after missing on earnings down 1. 5 , all this as oil nears the 50 mark so its energy which was the worth performing sector of the year joining us in a bull bear debate is the bill glickman and kyle cooper from ias advisers guys, welcome. Kyle can, i understand youre our bull here so well begin with you first of all, is the strength just the flip side of dollar weakness, or is there something more fundamental going on here certainly the dollar weaknesses help. Dollar weaknesses contribute to products across the board and is points to eia inventory trends inventories remain relatively bearish at 2 million and weve dropped 75 Million Barrels from late last year and the trends have accelerated here in the last couple of weeks with large draws being reported each week and thats helped to propel the prices higher. Why dont you think thats going to last here how low do you think oil prices are going . So i think near term theres still an awful lot of supply headwinds that investors need to keep in mind you have, you know, using the same source eia, looking for it to be in the mid9s in 2017 and kind of budge up against 10 Million Barrels a day and 2018 that would be a record high if we get there, and kyle is right that inventories are coming down, but lets not get ahead of ourselves. Its still an awful long way to get down to the fiveyear average. Probably if you were to maintain the pace from the most recent week which was a fairly high draw, it would certainly take you closer to the end of the year to get down there. Lets bring in our oil investor, evan newmark. Last time i put money into oil was the early part of 2016. What bearing does this all have on what youre looking at in the. You know, my view at the time was that prices were super low back then. I think i dont know. Probably in the low 30s, maybe even got it below 30 for a short period of time. Im just saying the bet was that basically oil wasnt going to be down at 20 a barrel nothing more scientific than that im curious, that you know, we never hear anymore, you know, used to be geopolitical tensions drove the price of oil and now all the discussion is about supply and demand. I mean, what is it, what really drives the price of oil . Stuart, what do you think its a great point is it because opec is less relevant i think definitely they are less relevanch the magical cost of supply is really the driving factor, and a lot of these companies have gotten better and better at getting identity out of the ground in a more efficient fashion, it drives that marginal cost lower, and its its simply become easier to be profitable in the 40 range than it would have been easily three years ago. Kyle. What would you add you know, absolutely. That is the case as they continue to be their own worst enemies in terms of how they have gotten, but hes right. Opec is no longer the marginal lowcost producer, but what im looking at is the next couple of weeks here where summer driving season in the u. S. Is still full bore theres still very, very solid demand and longer term we might end up lower as the usc ps continue to get better and better, but in the near term i expect eia to report very bullish inventory reports until the summer driving season is over, and thats really not for another few weeks. Im so ill say the oil market, the e p market, i find this is a total puzzle i mean you can have guys like this im sure they are very smart and do their homework. Could have been on in 2007, not saying that they were when the price of oil was going to 200 a barrel and everybody is like oh, they gave mow five reasons why it was not going to start at 200 and now its like, you know, knife reasons why its never going to go above 50 again. All im saying its very hard. Hard to forecast. Its a very hard business to income. Weve been in this range for so long and the difference between 45 and 55 is how the traders are positioned largely and what the incremental change in news flow has been about supply inventories thats all youre really doing kind of just trading the news versus expectations and are people too long or too short to break us out of the range you have to have something much more dramatic. Stuart, kyle, thank you, guys. Stuart glickman and kyle cooper. And with oil prices on the rise, people taking rv trips across the country are spending more on gas in country not stopping rvmaker thor from doubling down. Landon dowdy is out in california i was hoping you might be in the rv, but youre near an rv in petaluma. Reporter im on one. I dont know that you want me driving one. This is a towable that were looking at right here. Brill President Trump pushes his America First message and other u. S. Corporations were seeing scram to be respond the rv industry looks set to benefit. Were made in america nothing screams more american than rv amend all our companies are in the u. S. Based out of four states. Reporter and martin is putting his money where his mouth is while other manufacturers move production overseas, thor is betting big in the United States the indianabased firm which already has over 200 factories recently expanded its facilities in indiana and idaho and plans to invest 130 million in expansions in fiscal year 2017 indiana is not only where most rvs are made but also the home state of Vice President pence who has come to Ribbon Cutting ceremonies at thors factories but the problem here, a labor shortage, finding qualified workers is a huge struggle in the state, particularly in eckhart where thor and others are based. More that be 20,000 open jobs according to the Economic Development corporation, and its a problem, kelly, that has some analysts concerned if the rv manufacturers can actually keep up with the demand. Back over to you. Which is a great sign i think i remember when eckhart was one of the worst hit economies in the recession. What Goes Around Comes Around i remember doing this story in 2007 the high price of oil was basically killing them, and now they cant make enough of them msa, city by city and i was going to say, these are things of beauty if you havent seen the inside how much do you think the one youre standing nokes costs . Reporter actually we were just talking about that. They can vary anywhere from 5,000 to 500,000 upwards. This is a towable. So this one is probably around brand new, around 20,000, 30,000 depending on how much the updated technology you have inside its a towable. I see. Have you ever driven one of those . I have not. Very hard to drive. Im not going to either. Very hard to drive. Thats going to be biggest barrier. Not hard anymore. They have cameras in the back. Selfdriving rvs. The last time i drove one was in 1986 so i would in the i would not know. Thats a scary thought. All around. Landon, thank you very much landon dowdy reporting on those made in america rvs. If youre polishing up your Linkedin Profile beware a tech company may be using your career aspirations against you, and there may may not be much that professionals can do about it and the outgoing Ceo Jeff Immelt, the next career move is a tech disrupter and ur. Be well discuss if uber is the right move for both. Welcome back its time now for fast take to close out the week we begin today with a Virginia Federal Court ruling thats pretty shocking. A judge ruling that had a local politician who blocked the constituent from her facebook account for his critical postings violated his free speech she broke the first amendment. My question is now because this will set a big precedent theres a lawsuit on trump or twitter for the same thing do you think this ruling is appropriate . Is it appropriate i mean, i see thebase for the ruling, right . Essentially if youre a public official and you use the social media account seemingly for a public purpose to communicate with constituencies, yes, its suppressing somebodys political voice. I think it was a personal Facebook Page but she made it clear it was a forum the judge seemed that it was kind of part of their public offering. You know, yet another reason why i steer totally clear of social media. Dont dodge the issue. Im not even a public figure. If youre a public figure raand youre actively tweeting. Do you think its better to get off all together its like Hillary Clinton having the email account that she used for both personal things and for business. There needs to be a chinese wall between your accounts. Look, if youre a public official, it has to be. Even if its her professional page, if she blocks someone from commenting on that, you think thats a violation of free speech. If shes doing it as part of her job as a politician, shes supposed to be serving the public thats definitely a conflict. The takeaway, chinese wall, and if your company doesnt make you, you better do it yourself you guys surprised me. Another lawsuit drawing attention to the way labs have been using your data linkedin trying to stop the company from accessing the side and the company countersued saying linked in is trying to still competition. They sell analysis based on your profile of how likely you are to quit, guys. Its fascinating here because its not protected accounts, enough private accounts. Essentially just in the public we, so in theory you could have a company who employs somebody to go around manually and looking up all this information and collating it and selling it to somebody. And they have algorithms. Kind of a webscraping thing. Seen as more of a threat. The idea is if you seem to be polishing your resume its a signal and they assign you a numerical score and say this person is more likely to be leaving. Yeah, and my view on this its if its on the internet, if its public data thats not Password Protected its fair game too bad. Like if linkedins response is to gate the entire site, do you think let them gate it. I cant imagine they would do it or would be willing to do that. Then they should do that if thats their problem otherwise its accessible to anybody. Thats public information. Yeah, i know, and in that case Public Domain protecting a Public Domain. Next, big developments on electric vehicles. Tesla is delivering its first model 3 cars, maserati will have them ready by 2019 and toyota filed a patent for a lithium battery that could be lighter and longer range and in its cars by 2020. Are we at a tipping point. But that all together with the ceo of Royal Dutch Shell saying his next car is going to be electric, and i do think theres a sense theres a lot of momentum in this area. The uk is saying well ban gas line combustion engines by 2040 so is france. Diesel and gasoline. Every time i think, look, i happen to believe it a its definitely going in that direction but when you drive on the highway here and you sort of reimagine every car being electric, takes going to take a while to get there i think it its going to take more time than i think people think, but its its thats why its being forced. The environmental regulations demanding better mileage standards for gasoline cars are doing what were supposed to do, intended to do, to make all the Companies Say the tradeoff says i might as well go electric or hybrid. The political aspect of this i think is absolutely fascinating, because i think the odds of the gms and fords and all this stuff coming out ahead on this stuff, not too good. I tend to agree with you. I think the political aspect of this will be very interesting. Lets move on to talk my ra treasury pulled the plug saying its cost taxpayers 70 million. Could have given them the 20,000 people the 70 million. I was not a big fan of this program and just reminds you did you see the data came out on the savings rate in the u. S. We dont which one overall savings looks okay, but if you look at the number of people who have savings, thats an issue. We got weve got a problem in this country. Any ideas alternative to myra 70 million, thats the ratio of getting a foxconn plant in your district. Thats what it cost for 20,000 jobs. More palatable. Lets get over to sue herera for a cnbc news update. President trump traveling to long island, new york, to speak to Law Enforcement officers in brentwood. He soon turned to health care expressing dismay that the senate failed to repeal obamacare. Approved health care last night, but you cant have everything, boy oh, boy. They have been working on that one for seven years. Can you believe that the swamp, but well get it done. The austin, texas, Police Department is pulling nearly 400 ford explorers suvs from its fleet because of worries about exhaust fumes inside the fooeks vehicles more than 60 officers have reported Health Problems since february, and more than 20 were found to have measurable Carbon Monoxide in their systems. And its a vacation nightmare on the outer banks of North Carolina where thousands of tourists have been ordered to evacuate Officials Say a construction crew working on a bridge cut the major power line knocking out power. And for Small Business owners, this is the worst time of year for that to happen that is the news update this hour kelly, back to you so true have a great weekend, sue. Thank you. Our sue herera. Uber is on the ceo search, and outgoing chief executive jeff immelt is reportedly being considered for the job the impact immelt could have on irish, and if its enough to rehabits image right after this. My name is Cynthia Haynes and i am a senior Public Safety specialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Welcome back uber has reportedly approached general electrics outgoing Ceo Jeff Immelt about filling the ridehailing companys top job immelt is set to leave ge at the end. Year Walter Isaacson spoke to him at the aspen ideas festival back in june about the possibility of joining a tech firm. Theres a lot like somebody like me has to offer in a place like tech or health care or Something Like that, but as ive thought about it, really my foucs is going to do one thing well. So, in other words, take to scale a company thats either in tech or health that might need adult soupe vision or something, eric schmidt did that. Is that the mod snell. Thats kind of the model, and i like at all the change going on in tech, all the change thats going on in health care, and in some ways ive kind of experienced that and lived through that on my own, and i just think that theres a lot that i can offer to that, and i want to be purposeful. Joining us for more now is jeffrey conn from elevate partners and greg benzinger. Greg, ill start with you, how serious and likely a consideration is this . It is a serious consideration. The Company Needs a ceo. They need one quickly. He is a proven proven leader hes overseeing Global Operations and they are very concerned with having a name that they can present and so hes definitely on the table for them there are other names that is considering, but hes one that emerged. Jeff, you had talked to us before what uber needs in its ceo suite with the issues of travis kalanick. Does immelt fit the bill hes definitely a short list candidate. This is investors wanting to protect the prize and get this baby to aninio on your network mr. Wonderful says its always about the money and i think that the board thinks that they he can get them to an rpo and benchmarks with gray hair, a culture builder and knows how to lead a big global organization, but i see some risks here. You see some risks so youre not a fan of this, jeff . Its not that im not a fan i mean, look, dont have to look too far back in history for some examples steve jobs recruited tim cook and that worked out pretty well. Youll recall he also had a dinner once with john scully and said, look, do you want to sell sugar water your whole life or do you want to come change the world with me . It was a great pitch but a terrible choice, and so lets just hope uber does a better job assessing the culture fit so, you know, i think they need an ambidextrous leader, somebody with capability and somebody with hard and soft skills, and i wonder if immelt is willing to roll up his sleeves like travis and get out there and get the job done and im just not so sure what do you guys think, michael . What occurs to me, if you see the range of names floated to the service, immelt, meg whitman, Marissa Mayer, all of these names very wellestablished, kind of on the back half of a career with the exception of Marissa Mayer it shows you what an awkward spot uber is in and in the unique position of needing a ceo for a very big company and still in hypergrowth phase and still kind of informing itself so thats why i feel as if its all over the map in terms of what kind of solution. The interesting thing you really actually want a fighter because all the battle travis was very good at. He was very good at fighting, not so good at some other things, but the company in terms of dealing with unions, politicians, things like that. For them to be successful they are going to have to continue to break the rules to some degree and jeff immelt is not a fighter, wont break stuff in order to get things done im not saying he wouldnt be good for getting an i. P. To market hed be very good, you know, making people comfortable, but whether or not thats what you need to justify the 60 or 70 billion just anycation. Let me circle back to you, greg, for one second what do you hear from the company thats looking for it. To get that filled with something reputable with an eye towards we knowwe have to go public pretty soon here, or to evans point, are they trying to get somebody who is going to be better at growing this Company Aggressively and getting past some of these regulatory issues . Well well, its just about everything that you named they need to get into an ipo they have all these investors who are waiting for this huge pay day and they need someone who is a fighter they have tremendous legal pressures. They have a c suite thats virtually empty and a vast labor pool that they have to deal with, so they are looking for somebody with really a big set of skills, somebody who understands Global Markets and labor issues and can fight back against entrenched regulations and and labor unions and so its a unique skill set, but its also kind of a an unusual opportunity to turn a company around and really make a name for yourself. What were you going to say . Ill tell you, kelly. Just like a lot of searches, they are looking for a perfect candidate but i will say that you can be inspirational and hardcharging and be a nice guy and have those soft skills look at brad smith at intuit or even younger upandcoming ceos like garrett lord at handshake, so i think that you can be a nice guy and be hard charging and have those soft skills, and i do believe that those are going to be thekind of role models that youll see from upandcoming ceos, and i think people should emulate those kinds of ceos. All right great point. Thank you both today and snap is meantime falling almost 19 from its ipo price. The first roundups next week and pouny . Hat present a buying oprtityoure watching cnbc, firn business worldwide welcome back another 1. 5 drop for snap, down about 19 since going public the first round of ipo lockup expirations will hit on monday Julia Boorstin is here with the details and how it could further impact the share price julia . Reporter well, kelly, we could see a set of flooding. First up on monday, 400 million shares will become available to sell from early investors. Then on august 14th snap employees and insiders will be able to sell another 782 million shares, and thenanother 20 million becomes available at the end of august, according to jpmorgan now barclays anticipates a selloff around the lockup expiration saying it could create a buying opportunity after the fact but expectations are overblown. Quote, we think investors anticipation of the event could be more impactful to the stock than actually selling from the lockup expiration. First in compare soviet republic, twitter shares dropped 18 on its lockup expiration day in may of 2014, while fak shares jumped 13 on its lockup back in november 2012. Snap directors hold 60 shares they are unlocking so the stocks move hinges hon what they decide and what message they want to send about their long term faith in the company. What message, i see what you did there. Julia boorstin in l. A. For more on the lockup kathy smith is here with us and ben popper kathy, you were saying maybe snap didnt handle the ipo thing the best. I think snap is an example of how not to do an ipo Voting Rights for shareholders, i think it would have went when they went public to not have insiders selling 25 of the ipo. Whats the more typical amount for that, by the way in. Typically insiders are not selling on the ipo we want to wait until we see the shares absorbed into the marketplace, so there are and i would highlight that you you should meet Investor Expectations when you come out with your First Quarter results. Right. And we know that snap really disappointed when it came to growth, investor expectation so those things just were public. A good example a good listen. And that said, theyre out there now, for better or worse so, has a lot of the bad news been priced into the stock now the lockup, everything else, when this comes monday, could it be a kind of relief event to get passed when i look at twitter, it tells me that probably the answer is no were seeing, its very difficult to be a social network, app built around messaging with a dominant player with facebook, with instagram, which is cloning a lot of snaps best features and getting to bigger scale in a matter of months soild s so i would say there are a lot of scary indicators out there for snapchat still what do you think i think theres a chance, at least tactically in the shortterm, kelly, that your point might hold, which is that everybody has been overanticipating this lockup expiration the facebook example is a good one. That was a horrible ipo, it was botched. It was way down below its firstday price when the lockup expired. And that was basically the time to buy the stock the problem is, everyones been hoping snap is the next facebook, and facebook is the is next snap. The other difference, i would say, i dont know if this makes a difference from your perspective, kathy, there is a strategic investor who bought at the ipo price, which is our parent company, for better or worse. Which does reduce the float somewhat but lets remember that theres a determination that indexers are not going to include snap. That is that was a big one. Thats a problem. And basically, the you know, there are issues were in a gap. Theres an air pocket. The companys not going to report earnings until august 10th and earnings for this well, lack of earnings, results for this company are going to be very important, because the results in the prior quarter did not make investors happy so theres going to be this a very risky air pocket that were in, until august 10th. And i dont mean to cut this off early, but we have some breaking news from washington. Kathy and ben, thank you both. Appreciate you coming over well get you that breaking news as soon as we come right back. We, the people, are tired of being surprised with extra monthly fees. We want hd. And every box and dvr. All included. Because we dont like surprises. Yeah. Like changing up the celebrity at the end to someone more handsome. And talented. Really. And british. Switch from cable to directv. Get an all included package for 25 a month. And for a limited time, get a 100 reward card. Call 1800directv. Welcome back a shake up at the white house. Ylan mui has the details ylan President Trump has removed Reince Priebus as his chief of staff, replacing him with Homeland Security secretary, john f. Kelly. He announced this in a tweet, calling secretary kelly a Great American now, obviously, Reince Priebus has been the source of some blistering criticism over the past 24 hours or so. New White House Communications director, Anthony Scaramucci, had some very choice words to say about Reince Priebus they had been locked in a power struggle clearly, it seems now that anthony scaramucscaramucci is ts winning that, with Reince Priebus now being removed from his position he was a longtime lead of the Republican National committee, head of the rnc, an establishment figure now on the outs. We are still, obviously, digesting this information and well pribring you more as we h it, kelly. Ylan, thank you very much ylan mui theres the tweet from the president , saying, im pleased to inform you that he has named john kelly by the way, the president about to deplane after making that trip up to long island to talk about cracking down on ms13 hes coming back to washington lets bring in sara fagen, a former aide to president george w. Bush. Sar sara, we were talking about the last time a general was the last chief of staff this was a little bit telegraphed. The times reported that trump apparently wanted one. Now we know who it is. How capable is john kelly going to be for this role . Well, he is a very capable person, and certainly somebody who is respected both inside the military and out and its an interesting move, to go to somebody like a general whos used to so much structure. The military leaders rise in large part because theyre able to adapt and lead very complex organizations and impose discipline in those organizations. So, at least on paper, i think this is a really great choice. Whether he can succeed inside the trump white house, you know, remains to be seen sara, whens the last time i mean, can you remember that weve had a general like this serve as chief of staff in the white house . You asked this i was thinking when you mentioned that earlier, and i cant remember when we had one. Certainly not in modern times. And so, i suspect to go back in history far enough, well find one. But it is an unusual choice in that regard. And he always likes general kelly and he talked openly and praised him in the beginning days of the administration, that have certainly struck a chord together so maybe this will be a solution that works for the president and works for the american people. Sara, you know better than i do i thought chief of staff was in many ways a political role, where you have to deal with congress, youre working on the agenda, and youre helping to get that done. Is that true is that the kind of role that it is or is it Something Different in your opinion its both i think, certainly, Reince Priebus did have great political skil skills, knew the Party Leaders, knew the party infrastructure, knew the grassroots. Thats something thats going to be lost in this transition it doesnt mean that the new chief of staff cant adapt to that, and cant learn Party Leaders and know members of the hill as close as Reince Priebus, but he doesnt know it today its something hes going to have to work to figure out we will know military. He will know the National Security council, but working, you know through the head of the congress to the heads of congress, and also, the other thing that, you know, he will not have and will have to learn, quickly, is the president is the head of a political party. And when you think about this move, now with sean spicer gone and Reince Priebus gone, theres really no direct line to the Republican Party in a leadership role certainly, steve bannon is not the traditional republican Anthony Scaramucci is a financier. Theres no real limits to the Republican Party in a leadership job in the white house right now, at least a very Senior Leadership job kellyanne conway, certainly, would be the closest but i think thats concerning. And i think a lot of republicans are going to watch very carefully, you know, does trump stay true to the people who got him elected to office . Or does he veer into a different course yeah, ive already heard people joke hes going to show up as a democrat next im curious whether he put any conditions on trump before he took the role i mean, if youre a general, you want to know what the expectations are and whether you say, okay, no tweeting, or, no you know, because if i was taking the job, i would have placed some conditions on donald trump, even if he is president excellent point, sara, dont you think . Yeah, that is a great point and i hope he did it i dont know if he did or not, but one of the things that you want as chief of staff is you want hiring and firing authority, you certainly want Budget Authority over the white house, because that has a huge impact on sort of who you can fire and hire and where you place them and if you didnt get those things, then it will be very difficult for him to make the kind of decisions that he needs to keep the staff in line with his leadership sara, thank you for calling in appreciate it. Sa sarah fagen. Well lets fast money take it from here guys, thank you both that does it for closing bell. Fast money starts now. Yes, it does. Kelly, thank you so much im brian sullivan, hosting fast money in for melissa lee. Obviously, we have some big, breaking developments out of washington, d. C. As you just heard the news, we are seeing Reince Priebus out as chief of staff john f. Kelly is in as chief of staff. This just coming down literally moments ago. Weve got a great group of traders here tim, steve, david, and dan are your team today. Well talk about the market impacts from the d. C. Dysfunction and also this breaking news in just a moment but let us go back now to get more detail, i