111 points the s p 500 up slightly, 0. 24 financials lead the charge up 1. 1 joining us for the full hour to break down the Market Action is jim lecamp lets start with the g20 meeting. You think the market could pull back 20 if trade breaks down . I think the market is not prepared for that at all and weve got a lot of complacency in the market. The markets are trading not far from alltime highs now. We dont have one reason to think a deal is going to be done or be real over the weekend. The good news is that china might have better impetus to do a deal now that they have these problems with their food chain they have problems with the port they have capital outflow that is are accelerating in their country. They have some Serious Problems and they do want to do a deal. A lot of people think theyre going to wait until trump is out of office, try to negotiate with the next one i dont think they have the time to do that i do think a time will get done. If it doesnt i think the market is not prepared for that we could see a big selloff particularly in u. S. Equities because theyve been the benefactor, theyve been the market all year and we would be the ones hurt the worst. What would you tell investors to do today, if anything, to hedge against that risk . I really dont ever think you should trade on news flow. I think thats really difficult. Now if youre more tactical, if you have a portfolio that youre always going in and out, maybe you can trade a little bit on news flow. But here is what you need to know this is that time frame youre going to get more volatility anyway, this may through october time frame typically brings you a lot of volatility my gosh, last year we had a lot that started in september. So if you are going to be more tactical, you can use the volatility this summer to get rid of some things on rallies that you dont want and buy things you do want on selloffs. Heading into july, which is typically a positive month, jim is here for the hour lets drill down on the big stories we are watching. Bob pisani has a look ahead. Kayla tausche is in japan with the latest on those g20 meetings Frank Holland covering Constellation Brands leslie picker has the details on the ipo and josh lipton on the big departure at apple reporter everything was up, stocks, bond, gold the market believes an acome lags and a truce in the trade war will produce gains in the second half of the year. The market believes there will be a truce this weekend, is hoping for a full trade deal later in the year which might lift markets another 5 or so. Bank of america thinks that. In the event things dont go well at the g20, tariffs believe its highly likely the market will drop 5 to 10 . The biggest hope for the second half, a little surprise, a continuation of that huge ipo rally in the first half of the year, average returns for ipos in the Second Quarter, 30 twice the norm that success means a lot more ipos coming down the pike in 2019 look at the candidates, wework, peloton, even airbnb back to you. Thank you very much investors will be closely watching the outcome of the trade meeting between President Trump and president xi at the g20. Kayla tausche is in osaka, japan, with the latest kayla . Reporter that meeting is expected to produce a ceasefire of sorts, similar to the one that was reached at the g20 in argentina. This one could potentially be openended according to a Senior Administration official. One thing is interesting, this truce is contingent on both leaders flexibility to entertain each others proposals in future negotiations and that could prove tricky. We know u. S. Ambassador la lighthouser has said it will not be balanced. President trump has a triple threat, that 90minute meeting sandwiched in between a breakfast with the Saudi Crown Prince and the president of turkey where new sanctions could be discussed all of that will be capped off by a wideranging press conference guys kayla, we also had the president mention the likes of a possible trade deal with japan and with india do you think that is a little bit of rhetoric, just a distraction, or is there something serious in the works there . Reporter well, we know the president loves bilateral deals. He hates multilateral deals. Talks with japan have been going on for years at this point since the early months of the Trump Administration talks with india are much more early stage, and they have been contentious earlier this year led by the commerce secretary and President Trump had been criticizing india for its tariffs, perhaps he wants to see a breakthrough there Kayla Tausche, 4 00 a. M. In osaka, thank you very much shares of Constellation Brands getting a pop today on earnings. Frank holland has been following the mover for us frank . Reporter shares up more than 5. 5 after raising guidance 15 cents at both ends of the range. 17 cents above estimates including its canopy investment, a change in reporting from last year beer, the core business for the corona maker, growing more than 7 in line with guidance also we found out the 1. 7 billion sale of lower end wine business is now expected in the second half of the year. The ceo said the company is a little disappointed in canopy earnings but he can inspects revenure expects things to grow frank, thank you very much. Jim, whats your take on this one . Is this a time to get in its really interesting because a lot of people have been buying the consumer staple Type Companies all years as defensive measures, things that arent going to hurt them. People will keep drinking. The reality is once you do that for long enough, the valuations get to a point where you cant call them safe havens anymore. The cash flow is really good here theres a lot of people that are excited about buying cannabisrelated things because there hasnt been a really elegant way to do it on a large liquid, publicly traded company. So thats going to be a little interesting for them but i think what you have to be careful with whether its these Drug Companies, whether its Consumer Staples, whether its beverage companies, the valuations have been pushed higher than what you normally see for these types of companies this year as people have looked to be in the market, be a little more defensive lets move on to shares of the real real. Surging today in their Public Market debut leslie picker has the details. Hi, leslie reporter investors are making real money in the real real ipo today those shares were sold for 20 apiece in the ipo and are trading upwards of 40 in their debut today. Now driving investors into this name today, the aspects include topline growth of about 55 they also have the potential as the top player if the online luxury consignment market to build even more scale and generate even more revenue from that but the biggest detractor for investors include losses theyre accelerating this year analysts and investors just dont see an obvious path to profitability, although the ceo Susan Wainwright said earlier on cnbc the path does exist, guys leslie, thank you turning to apple and the departure of design chief jony ive. Reporter two pieces of news. Apple does confirm it is assembling its new mac pro in china, though the new 6,000 machine is both designed and engineered here and does include, apple says, u. S. Made components the headline really gbing attention, the one you mentioned, jony ive, instrumental in the design of the i mack, ipod, i phone and iwatch two experiences veterans will be reporting to the Ceo Jeff Williams sarah, back to you josh, thank you lets bring in kevin oleary, chairman, and from evercorp, how big of a deal is this for the company as you try to analyst the earnings and the stock does it matter listen i dont think its that big a deal well get to you in a second, kevin. As josh said, it is the end of an era. Jony designed iconic watches its the end of an era and apple is moving more and more to a Services Type company is becoming more important, how the products look and feel today i do think it is an important thing but not a deal breaker for apple. One thing thats notable is not the fact jony ive is leaving but people are rolling up to the coo not the ceo and tells you what the structure looks like kevin, do you think its a sign that this company is now more of a Software Services company, less a Hardware Company . They wish that could be the case investors do, too. The margins are much higher. I still think its a big hardware play. I dont think ive leaving is that big of a deal i got to watch him design products the look and feel is at least 50 him. He was not a very nice person to work with. Im just being honest with you but he and jony together created the look and feel of what apple is today obviously ive maintain it had through the different iterations of phones. I remember seeing that phone sitting on a table and its first iteration and at least half of the pain and misery in creating it came from jobs himself. So my thought for this now is for the company to go out and recruit somebody new and fresh and different. Make it a contest, make it a global contest to hire a new team, get lots of press. It would be very interesting i think the company could use a fresh set of hands and eyes as it goes forward. Like a tv show you mean, kevin . Like a reality show it could be a great reality show id love to host it. Kevin, on the point, though, about the structure, tim cook, i think, has 18 or 19 direct reports. Is that too many you manage multiple businesses do you think the structure works . I think its okay hes actually a logistics guy and a very good one. I dont see a problem there. I think at the end of the day hes formed an organization that suits his needs. He took a great idea and brought it forward 1,000 fold in terms of logistics and implementation. Not a whole lot of new creativity hes not really advertising that the company has been built on the backbone of the trojan horse iphone and the services came in afterwards a lot of people are critical of apple but its a machine to me it looks like consumer electronics. Its not what it used to be and thats not necessarily a bad thing. I can find better places to put money to work right now. Basically its a bit of a Financial Engineering play, a lot of stock is being bought back i dont think thats necessarily great. I would like to see more growth and innovation bring in fresh new hands and eyes it could be good for the company. To that point, a long time, wellknown bloggers take on this was he said apples in trouble not because jony ive is leaving but i worry because hes not being replaced why is that . It kind of goes to the discussion kevin was arguing what made apple successful was the look, the feel, the ease of using it apple products are ubiquitous for you dont have to change how you use the product. It changes for you that is getting stepped away so now the design officers that are replacing ive are rolling up to the ceo. In the past the design officer always rolled up to the ceo. It is a bit of what design was perfect soefd at apple i think thats what the blogger intended to say. Thats our take at least amit and kevin, thank you very much for joining us final word on apple, do you feel this is a sign theyve lost their edge on the hardware front . We didnt need this to know theyve lost their edge. You brought out the ipad and that was revolutionary the iwatch was less revolutionary. Since then what do you have . If i look at sarahs phone and my phone, theres different vintages but not very different phones at all. If theres a samsung theres cracks on your screen i have a few on mine as well. If i had a Samsung Phone sitting here, it wouldnt do much different than what this apple phone does so i think they need to examine how theyre going to be the innovator they used to be. And if not does that need to happen to make the stock work . Can the stock work as a services company, as a Health Care Company . They have a lot of streams going. It might, but they havent really proven themselves as a great value stock yet, and they havent proven that theyre still a Growth Company at all. Yeah, youre going to have the cash flow from the services. Youre going to have a Good Business there for a long, long period of time on the other hand, what are people looking for in stocks theyre looking for either growth or theyre looking for tremendous value that they dont have to worry about. Apple is still news driven, not a stock impervious to bad news will it jump or fall over the week based on how g20 goes it will do whatever the market does. Pretty trade sensitive. Everything is trade sensitive that has supply change, consumer electronics, anything along those lines is going to fall if theres no clear deal done here. The question is intellectual property theft and technology transfers. If we dont get anything meaningful on this, anything they do over the weekend isnt going to really count. Still lots more to come with jim throughout the first hour of the show also coming up bank stocks getting a boost on the back of stress test results there could be major changes coming to one foreign bank name. Well explain what coming up up next one biotech stock seeing a huge pop on the back of Clinical Trial data. Well get the stock therapy checkup on that one next as we head to break a check on our closing bell data tracker. June sentiment did come in ahead of indications chicago pmi registering a big miss, a reading of 49. 7. The first time in contraction since 2017 longel wl up about 20 points. Csi blilbe right back ] in big ways and in small, bank of america is here to help you get things done. What would you like the power to do . ® done what uld you like the power to do . ® mno kidding. Rd. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. Welcome back we have 42 minutes left of trade. Lets send it over to mike santo santoli. A balance of powers, between stocks and bonds and a portfolio. Allies of convenience. Another look at the interplay between bond yields and stock valuations where they sit now, the many versus the few this is about the few big stocks working, the many smaller ones and then national declinism, not a great topic but one that we have to look for with regard to manufacturing right now. So balance of powers not only has this been a great first half of the year for stock prices but a stock bond portfolio, the traditional 60 stocks, 40 bonds. Thats represented by this fund here Vanguard Balanced Index Fund has had one of the best first halves on record. What you see here is the balanced strategy at 13. 1 gain through today year to date that is a return of 28. 6 . The only year that approaches that in termsof the full year return is 1995 where it was exactly 28. 6 so essentially youve not been punished for staying balanced and having stocks and bonds, so youre taking only 60 of the stock market risk this year, this first half of the year and you have 75 of the stock market return without the volatility. Nobody he can inspects that to happen again as a marker, its not punished anybody for being under invested we have to ask exactly how that would be right now its a pretty positive situation for people who just have a general allocation to investments in a traditional retirement portfolio 60 40 works sometimes, i guess. Mike, thanks time to get a checkup on a stock therapy story we told you about yesterday. Pfizer out with a gene therapy study. Meg terrell with the details at headquarters reporter its up about 17 the companies are developing gene therapies for a rare, genetic disease that robs kids of the ability to walk before theyre teenagers and can be fatal in their 20s gene therapies aim to improve if not cure the disease by delivering healthy version of the gene responsible in the update some safety issues as well as ef kaficacy that doe stand up it was given to parents for duchenne these parents try to figure out if their children will be able to get into the trials and because the therapies can only be given once, they try to sort out which trial gives their kids the best chance today at least wall street sees sarepta as the winner. Wow meg, so when might it be available potentially . Reporter for sarepta maybe 2021, but that would be pretty fast so were still looking at a few years away, guys okay. Meg, thank you very much jim, these biotech stocks, is that the way to play health care with less political exposure absolutely. If you look at the debates, its this monopoly money economics that they grow out there, free this, free that, Free Health Care forgive your student loans, reparations for everybody. The one area that is punished by this set of freebies is the traditional Drug Companies who is not punished are the innovators on the antiaging, and all of these research and Development Companies with new genes, antiaging drugs. And if you look at stocks theyve all had pretty strong years yet the Health Care Sector has not. So youre seeing a lot of rotation now into the Health Care Sector because its underperformed and is not overvalued like the other sectors but its very select theyre going after the biotechs and the antiaging companies all right weve got 38 minutes to go before the closing bell. The dow is still higher, 23 points higher. Goldman sachs and jpmorgan are the leaders. Financials still topping the s p 500. Technology at the bottom still ahead, nike gaining back its initial post earning