Transcripts For CNBC Closing Bell 20160617

Civil suit. The Justice Department dropping its twoyear effort. Weve got the details on that coming up. Meantime, amazon is making a big bet on its echo device called alexa. All the alexas answering out there, people listening in. Theyre looking to make it a 1 billion business. Will increasing competition from apple and google get in its way. Thats something well look at coming up here. Plus, the end of an era. The partnership between American Express and costco will officially end on monday. Weve got new details on how American Express is looking to address the losses. What citigroup and visa are planning next. Lets start with the concerns over next weeks uk vote whether to leave the European Union. Will fred front is about to head over to london for coverage of that big event. Before you leave, though, will, give us the latest. Thanks very much. Campaigning on both sides of the Brexit Debate was postponed today following that Fatal Shooting of labor party, a member of parliament, jo cox yesterday. The date of the vote remains unchanged, thursday next week. Jo cox favored remain, and whatever the motivations behind her murder, the most notable response has come in the pound over the course of the last 24 hours. The pound rallying significantly, up over 1 as you can see today. The lows of yesterday, it was at 140. And it is up at 1435. Of course, highlighting the change in momentum weve seen in markets and its reacted with the s p 500 significantly also over the last couple of days. The other development over the course of today, we heard from labor leader jeremy corwyn who said the parliament will come bark on monday to pay tribute. Ill pick things up again on monday outside the houses of parliament. All the developments over the course of the weekend. Guys . Im just wondering, wilfred, i heard one theory, and that is the betting markets, while they were moving a little bit, before this tragic episode happened, they were moving closer to the leave camp. They were always giving a slight edge to the remain camp. The idea that obviously this happened, nobody expected it, its terribly sad, they called off two days of campaigning, meaning that the leave camp needed those two days of campaigning to push it over the edge. And lost that time. Thats one theory out there as to why things have changed so dramatically in the market. I think one theory that was discounted over the last day is whether in fact the vote would be suspended, which now seems tob discounted. We can put that one aside. Youre right, the leave camp had momentum. Well find out when things pick up tomorrow, particularly early next week. Of course, important polls will be coming out over the weekend. What the polls do now after this 48 hours of suspension of campaign will be important. The other important thing to see, this morning we did see David Cameron standing next to jeremy corwyn. That wasnt them campaigning, that was them paying tribute. One of the crucial problems the remain camp has faced is the lack of unity between the labor side of the bargain and the conservative side. And David Cameron needs the labor vote to turn out in full if he is to get this over the line. I wonder now whether we see a bit of unity, both between conservatives and labor on the remain side, and within the labor part on the remain side, whether that unity can help David Cameron get his interests over the line and get a vote to remain. Wil, thanks. Have a good safe flight. Eventful six hours. Hes leaving now, for the airport. See you on monday next week. See you next week, guys. Very good. Meantime, back here, jim bullard shifting on the economy, as well as his Interest Rate outlook. He expects rates will remain unchanged this year, next year, and into 2018 following a single rate increase, maybe this year. Double line capitals jen gunlach was on earlier. I think hes coming around. I think the fed, you mentioned losing credibility. I think they gained a little bit of credibility but at least acknowledging reality. Lets talk about that now, what it means for the markets. Time for the closing bell exchange. Weve got elon from the Washington Post. Jason pride. And keith bliss. And our very own rick santelli. Along with jim bullards comments. Just explain to us why theyre such a big deal, and they sort of echo the comments we heard from janet yellen during her news conference. What changed this week . Yeah, i think theres the tension in the markets on are they going to move in june, july, november, december. What you really heard out of the fed this week is that theyre not so much focused on the specific timing of the rate hike, theyre more embroiled in a bigger debate over whether or not their fundamental view that the economy is only being sort of held back back these persistent headwinds, that will eventually will cede and get to a more normal level of growth, a more normal level of inflation. Is that still correct. Is theres a more existential crisis, if you will, going on within the fed. Lets not forget Charlie Evans a few weeks ago put forth a very, very different view, saying its wait until you see the whites of their eyes argument. It goes well beyond just the timing of the second rate hike. Jason, do you think this gives them more credibility as Jeff Gundlach suggests . Its clearly admitting by the fed officials theyve gotten the economy wrong at this point. I dont know if its admission or credibility issue. I think the reality of the situation that theyre facing is were dealing with a very slow growth economy, border line on being able to absorb a lot of Interest Rate increases. On near term basis, we have a couple of things piling on in terms of risks, brexit obviously being one of them. But the primary real issue is growth has been slow since this recovery started. The expansion has been slow. Even though we got hit really hard at the start, and that slow growth nature does not allow for rates to rise a lot. I still think theyre going to be raising gradually. I dont know if i agree with the no Interest Rate increases whatsoever for three years thought process. But the path is going to be very low and slight. Rick, the market implications, we may have actually seen the bottom in treasury yields. He said with the Federal Reserve on hold, theyre not itching to raise Interest Rates. Actually, it could rise from here. Because what we have been seeing is the reverse, the more they talk about rising Interest Rates, the more yields fell. Do you buy that . No, i dont really buy that. I think that could be one of the outcomes for sure. Im not sure if its my outcome. And its not so much i disagree with his direction, or the fact we could hold a july 2012 low right under 140. I guess what i disagree with him about is how the market perceives and trades on the fed. You know, to me, the issue isnt whether they raised or not or do it in july or september or in two years from now, this is like going to the doctor for six years. And them treating you for something that they call, lets say disease x. And you say, no, i dont think thats it. They say, yes, it is, they keep treating you. And after six years, they say, youre right, it isnt that, its something else. That wouldnt give me more confidence in my doctor. It would cause me to want a new doctor. I think that really underscores the fed at this point. The fact that they seem to be the only smart people in the room who didnt see the new normal. And whats more, i think that what the anger was that so many traders i deal with over the last couple of days is, what this really means is they missed so many opportunities to normalize, and what flipflopper James Bullard is now saying is that window, as Jeff Gundlach rightly said, that window is closed. What thats code for, we applied the wrong salve, we missed the window and the Business Cycle will run out. I think thats the x on the map were at right now. Rick, knowing you as i do, i think you would have been looking for a doctor long ago. You wouldnt have waited until now. I know, exactly. Keith, we havent forgotten about you. I want to bring you around now as we think about this market. You and sarah and i were sort of handicapping this market before we went on the air. When we think things will start to pick up here. Its a very quiet day, even though we have a big expiration coming at the close today. We all know whats coming next week. What is your expectation of what the market is going to do over the next six, seven days. Youre absolutely right. There is an s p rebalance thats happening today as well. We do have a lot of action in here. One of two things could happen, you could have a lot of volatility on days like this, or people can sit on the sidelines. Whats abnormal is the brexit vote. I think well start to pick up steam inside the cash equities market around tuesday, wednesday next week. Ill be watching the polling data all week long as they come out with more frequent polls. Well be watching the betting odds as well. As we see which way the wind is blowing on that vote, were going to have to get prepared either on the long or short side. I think if the uk votes to leave, i think well see damage done to the indexes. Were basically at a purgatory state right now. Wife not moved since march. Were 3 away from the alltime highs. Were moving sideways. I would wait until tuesday, wednesday morning before we see the real action occur. It may be a quiet day. But during this week, the german boone went negative. The tenyear yield went to 152. Gold went up to multiier highs. Is this all the brexit related . I think a lot of it is brexit related. Theres a lot of concerned citizens sitting out there. Its happening in the back drop of a slow growth economy. With that slow growth comes the likelihood it could be derailed. Were in the back part of an economic expansion here. Im not willing to call this annist mat expansion like some seem to be going out on that limb. Were in the back part of the expansion. The growth is slow. Its easy to take that off. Its not base case, but risks are higher than they were before, and portfolios should be positioned accordingly. Folks, thank you all for stopping by. Your thoughts on todays actions such as it is. We were also discussing, weve got two days of testimony from janet yellen next week, too. Starting on tuesday. Tuesdaywednesday. Ahead of the brexit vote on thursday. Adding to all of the fun thats going to happen next week. I think minutes from the boj, housing data in the u. S. It doesnt get any better than that. Weve got 48 minutes left in the trading session. The dow is down 44 points right now. Apple battling Chinese Government regulators over alleged patent violations by the tech giant on its iphone 6 and 6plus. The developments in this key battle moving the stock, coming up. Down 2 today. Also ahead, well tell you how costcos credit card changeover is going right now. And what American Express is doing to counteract the loss of its single biggest source of spenders these days. Thats coming up here on closing bell. Youre watching cnbc, first in business worldwide. Welcome back. 45 minutes left here. Viacom shares lower after now warning that profits in the Current Quarter could fall more than 25 short of estimates. Media giant also said its film teenage mutant Ninja Turtles out of the shadows shockingly did not connect with moviegoers. Did you see it . I somehow missed it. Well wait for payperview. Viacom spiked yesterday after redstone removed five viacom directors from the board, including dauman. Dauman remains ceo of the company for now. We all know life after a breakup can be tough. How is it going for costco and American Express after their very noted split . Life after a breakup. Yes. Its still in the process, its very messy for American Express and costco, as you would expect it to be when it concerns your single biggest customer. That Partnership Officially ends on monday when the citigroup and visa card goes into effect. The 11 million card holders were 10 of amexs customers. And 20 of its loans. And its a 12 billion portfolio. They still owe quite a few card balances and theyll have to make those payments to amex until those payments are fully paid off. All new spending is going to accrue toward visa and citigroup because they were willing to give much more of their revenue back to customers in the form of cash back. You can see in every single category, visa and citigroup were willing to pay more in cash back than amex. Here, its how customers feel about it. I prefer American Express. I have multiple amex cards. Benefits are becoming less. And its better now with the other cards. So im looking to more using of my visa card. I think more people carry the visa card. American express is a little pricey. I dont like it at all. I use it for everything. My son is happy for it. He only holds a visa and mastercard. Hes happy about it. People prize their plastic so much, they have so much brand loyalty. Starting monday, they wont have a choice. Theyll have to use the visa card. The rewards are better. If youre looking to sign up for the card, you dont have one yet, wait until after next week when the dust settles. It seems like American Express fell asleep. Competition caught up, passed them and they didnt do anything about it. This is particularly bitter, because it was amexs idea in the first place. They approached costco in 1999 and said lets partner up. It got very acrimonious toward the end. Amex is currently trying to make up that lost business. Theyre trying to convince costco shoppers to apply for other cards in the amex portfolio. Some of them have. Some of them like to have multiple cards. But they cant completely make that up. If you have a costco amex card, it just doesnt work as of monday . It doesnt work as of monday. Citigroup and visa have been sending the new cards to customers for the last couple of months, explaining the benefits. You can still use your amex card through this week. But starting monday, it wont work. Get something for dad. We live in 1,000 square feet. Buy in bulk. Kayla, thanks. Meanwhile, federal prosecutors have reportedly abandoned their case against mozilo. We have confirmed it, eight years after the housing collapse, nine years after countrywide began tapping into lines, mozilo is off the hook. The Justice Department has dropped an investigation into the man behind one of the most successful Mortgage Companies ever. Of course, one of the most toxic. This was a civil prosecution being investigated by the Justice Department. Earlier, criminal investigation yielded no charges. The u. S. Attorney opened a civil one two years ago, but that as were now saying is gone. Six years ago, though, mozilo settled with the s. E. C. , agreeing to pay 22. 5 million. Which was covered by insurers for bank of america, which at that point owned countrywide. Mo zilo is now 77 years old, living in Santa Barbara. Insisting he did nothing wrong. The only thing the government has gotten from him is the s. E. C. Fine which he did not have to pay. Back to you. Jane, thank you very much. Jane wells there in l. A. 40 minutes left to go before the closing bell. Lets take a look at the major averages. Still lower. Nothing extreme compared to some of the moves weve seen this week. The dow down 46 points. S p down about 1 3 of 1 . Were heading into whats called qua quadruple witching. Right. Well no doubt see a lot of volume, maybe as much as 2 billion shares trading by the end of the day. But we may not see a lot of price movement. Well keep an eye on it. Thats what were here for. Alexa. Do you have one . I do. Youre speaking like you have one. Thats 7 million more units than its expected to sell this year. Well have details on that coming up here. Beijing, accusing apple of violating patents on its design of its iphone 6 and 6plus. What does it mean for the china prospects. Thats next. Uff, 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. Td ameritrade. On their auto insurance. Wouldnt a deal involve two parties discussing something . A little give . A little take . Because last time you checked, your rate was just, whatever they say it is. Why not give you some say in the matter . Or even better let your driving do the talking. Liberty mutual righttrack finally puts you in control of your rates. All you have to do is connect, drive and save. In fact, safe driving could save you up to 30 . With 5 off just for signing up. For righttrack. And the discount is good for the life of your policy. To get started, visit a local office or call Liberty Mutual today at take control of your rates. Visit a local office or call see Car Insurance in a whole new light. Liberty Mutual Insurance apple shares losing some ground today. The stock is down a little more than 2 . The tech giant battling chinese regulators that they violated a patent. Josh lipton has the very latest on these developments. Josh . Well, sarah, if youre an apple investor, how worried should you really be about this news. Analysts covering apple dont seem to be, at least right now. First the facts. As you mentioned, a patent tribunal in beijing saying apples iphone 6 and 6plus violated a local companys patents. But apple has appealed that ruling. That injunction is stayed. So right now, its business as usual. As this case works its way through the Chinese Court system, apple products all on sale right now in beijing. I also just spoke to pipers jean munster. Hes betting that the 6 and 6plus will be discontinued in september with a launch of the iphone 7. So munster said it would make sense for apple to do that, to sell just the 7, 7plus and se. Even if the 6 were banned, his point is, the estimates would take a very small revenue impact. But munster also said there is a broader concern here beyond just this case. There seems to be ongoing tension between apple and the Chinese Government, he says. Remember, of course, regulators there have also suspended the companys books and movies businesses. Investors, we know, dont like uncertainty, munster says, and every headline like this does add to that. Guys, back to you. Also plays into the warning that carl icahn is getting out of the stocks. The competitors when it comes to digital assistance is amazon, which has one of the most talkedabout products on the market with echo. Although amazon hasnt released sales figures, from Consumer Intelligence Research partners, they estimate that 3 million have sold since 2014. Whats it called . Alexa. Your best friend. There you go. The next guest said amazon is hoping to triple sales next year of these echoes, which would equate to about a 1 billion hardware business for amazon. Hes with us, Senior Reporter with the information. Com joining us right now. Amir, thank you for joining us. There have been questions about exactly how many echoes amazon has sold at this point. Whats your guesstimate right now . So, actually, the estimate that you mentioned from a Consumer Research firm is a little lower than the actual amount. Last year, amazon sold up to 1 million echo devices. This year, theyre planning to sell as many as 3 million. As weve reported exclusively, 10 million at the most next year. This is pretty impressive. This is a brandnew category of device. A device that sits in your kitchen or bedroom that you talk to. Coming out of the gate, and stealing the show, in the kind of connected home space for amazon is really, really impressive and very surprising. And has really caught the tech world by surprise. How does it stack up against the competition from google, and i guess siri, you could call it a competitor . Although doesnt seem to do as much. Right now there is no competitor. Theres no other voicecontrolled smart home hub for the home. For your kitchen. Something that elderly people can use. Something that kids can use. The whole family. Theres nothing in the market like it. Google is coming out with google home this fall. The promise is that the Google Assistant that will rival alexa has more intelligence capability, so they will actually understand your commands a lot more than alexa does. Alexa, its pretty limited to specific things. Google wants to widen that, and it can actually understand a lot more of what youre saying. Get more information for you. But whats really important to note is apple has actually been working on an echo type device, even before echo launched in late 2014. So we should really be paying attention and watching to see if apple actually comes through with that this fall when they launch new hardware. Having said that, though, amazon has big plans for the echo. They consider it, as you were pointing out in your article, that one of the real tent poles for revenue Going Forward, what will cause that to become such a revenue generator, other than just buying this thing . Well, the hardware is certainly not going to make you a lot of money. First of all, amazon is going to help people order things from amazon and do shopping through amazon. Potentially, by having images come out of this device. Augmented reality, poly graphic images. Maybe in the shorter are term there could be a screen so you can see what youre shopping for. Beyond that, if the echo becomes the equivalent of the home page of the internet, like google. Com, whats the equivalent of search ads for voicecontrolled assistance in the home. That opens up a whole new possibilities. All of these developers were creating smart home devices, like smart door bells and smart garage door openers. The smart thermostat. Theyre all integrated with the echo. You can control all those things through the echo. Whats interesting, amir, its a hardware device. Amazon had success with clouds, with ecommerce. But not so much with hardware. So did it learn from its previous mistakes . I mean, what can it take away from that . And what makes you think this will be a success where that wasnt . Well, amazon actually had a lot of hubrus because of the smartphone. The ceo said were really good with the kindle, why dont we knock it out of the park with the smartphone. It blew up in their face. And in parallel with that, they were actually developing this echo device. So the really big deal for that team to actually push something out to Gain Consumer adoption. Again, this is not a device that you have to have. This is for wealthy people like you and me who are middle class and up who can afford these. Not like a smartphone that you have to have. I think over time the hardware is going to fade away, the prices will go down to where its the voicecontrolled assistance, thats connected to the internet that will try to understand what you want, give you information to let you buy things and so on. Its coming. Amir, good to see you. Thanks for joining us. Of course. Amir from the information. Com. Alexa, play fleetwood mac. Is that what you use it for . Its the greatest music player ever. I play it for music. I open my own garage door. The last time you are allowed to say alexa the rest of the hour. All right. High, guys. Iraqs Prime Minister says Government Forces have gained control over most of fallujah. Iraqi troops battled their way into the center of the city, capturing a key neighborhood and a government complex. Thousands of residents fled as isis grip on that city crumbled. The first family boarding air force one for a vacation at Carlsbad Caverns in new mexico. The Weekend Getaway will also include a visit to Yosemite National park in california. The president will talk about challenges threatening americas National Park system. Hundreds of protesters and supporters greeted donald trump as he arrived in san antonio. Police separating the two groups to maintain peace. Trumps motorcade drove past both as he pulled into a country club for a private fundraiser. Two former Netflix Binge watchers who were paid to watch its movies and tv shows and then choose the media used to promote them on its service are suing that company. The class action suit claims they should have been paid as employees, with benefits, instead of independent contractors. Sounds familiar. I guess the shows werent that good. Apparently they werent, no. Well see where that goes. It did get class action status. Were going to follow it for you. Back to you guys. See you, sue. Well see you later. Into the last half hour of trade here. The dow still down 51 points as we approach this quadruple witching expiration. We have a leading trader to tell us what hes watching going into the close as well. Stick around for our Battle Royale on whether the uk is better off leaving the European Union. Our own larry kudlow is making the case. And jim bianca says leaving would be a disaster. It is coming up on closing bell. This man creates software, used by this bank, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. The dow down just 46 points, as we await the expiration coming up at the close. What do you expect on this expiration . The numbers are going to be huge. We anticipated a little bit, the gold rebalance, mlp rebalance, s p all happening in the next 25 minutes. All happening this week. If youre looking to adjust your portfolio, youll use these liquidity events to do it. Hopefully well get an opportunity to move the markets one way or the other. Thats our job as a market maker, we want to see a little bit of volatility. The volume will certainly be there to do it. Next week, when do you start to see brexit affect the market here, do you think . I dont think anyones going to do anything leading up to it. I think its too undecided. Vegas will tell you one thing. The polls are saying its about 50 50 either side. Why would you do anything before. You saw the reversal in the market yesterday. Why would you do any headline risk prior to that event. I think it will be a wednesday night event. Very quickly, is it as simple as if they stay, we rally, if they leave, its a selloff . No, i think there are too many questions out there. If theyre this close on it now, do they revisit it in the near future. We also are worried about the fed, and really giving no direction at all. Thats concerning. Very good. Have a good weekend. Happy fathers day. And to you. A little over 20 minutes to go before the closing bell. Still looking at declines for the dow, s p and nasdaq. Dow down about 49 points. Energy and telecom are leading the s p, health care and technology are the losing secto sectors. It seemed like a long shot. Now not so much. Great britain leaving the European Union, sparking a fury of debate abroad and here as well. Cnbcs larry kudlow and jim bianco squaring off next. A primetime mini series has rekindled interest in o. J. Simpson. Coming up, a look at a very unlikely comeback and the business surrounding it on closing bell. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. When you cook with incredible tokyostingredients. Les. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than nine dollars a meal. Get your first two meals free at blueapron. Com cook. The markets appear to be cautious, certainly, as we inch closer to a historic vote next thursday on whether britain remains a member of the European Union or not. Joining us to debate the risk and rewards of this important issue, larry kudlow, cnbc senior contributor, and jim bianco. This is going to be good. Larry, im a little surprised that you favor an exit. Because you are an Economic Issues guy. And usually the economist, the bank of england, the imf, the oecd, the uk treasury all say it would be devastating to leave. So why is that your position . Well, on that one, sarah, in short, lord save us from the economists, okay . All the ones you named, eu, imf, all the rest of them, by the way, lets throw in the Federal Reserve, too, save us from the ph. D. Economists. That may be a side bar. This is first and foremost, for britain, this is about individual liberty, this is about autonomy, this is about selfgovernance, its about parliamentary democracy. I call it magna carta 2. 0. The first one was in 1215. I was not there for that one. But down through the centuries, that has been the iconic symbol of common law we use in the u. S. My point is, this is a very good thing. You can keep the eu economists, keep the eu social bureaucracy, the eu tax hikers, keep it all. I think britain should leave. Jim, why do you think they should stay . Well, to take larrys point, im not sure that thats been a problem for them. Theyve done very well in the last 40 years. They joined the eu in 1975. At the time they joined the eu, they were on imf assistance. They were a basket case economy. They had irs terrorism. They had militant violent unions. And look where they are right now. They have done very well over the last 40 years in the eu. All the problems that you cite about autonomy, about the right to rule yourself, that is not their problem right now. This is more of a theoretical argument that theyre having about migration and about trade. But theyre not hurting from it. Theyve actually benefited from eu participation. Well, by the way, to jims point, england has been a basket case from time to time. But theyre still going to be a member of the imf, thats not going to change. Theyre going to be a member of the world bank. The eu, i have to disagree with jim on this. I think the eu just keeps moving left. They want tax harmonization, they spend more, regulate more. The eu is not a democracy. It is not a representative buy. Thats why i think britain should stand its ground. Financially, though, let me just add this, and maybe well debate it, financially, i dont see any evidence of a collapse or a calamity. The pound is stable over the last year. British Interest Rates have come down like everybody elses, by whatever, 75 basis points in the bond. The british economy is growing okay. Close to 3 . British stocks have fallen some. A lot of its bank stocks. Everybodys had that problem. So i dont know. Theyve got two years to figure it out. Theyve got two years to figure it out. First of all, the reason the markets havent crumbled is most people do not think theyre going to leave. Most people think theyre going to remain. Second of all, look no further than your cnbc interview this morning with the imf. She sounded like a mafioso don threatening to break the knees of the uk if they leave. Theyre going to get punished. Thats going to be the biggest problem. If they vote to leave, youve got a bunch of bureaucrats in brussels that will be fighting for their existence. And theyre going to hammer the eu so france doesnt leave, so finland doesnt leave. Theyre worried about a contagion. At the end of the euro, thats what theyre worried about. Its not about the uk, its about a start of a movement that ends everything over there. I have a real concern that if britain goes, then everybody else is going to want to go too . I dont think that will happen. But if it happens, it happens. This whole eu thing was supposed to be a free trade zone, okay . It has morphed into dh leftwing bureaucracy that represents nobody. What lagarde said today is a big, big help to the brexit in europe. She sounded awful. I agree with jim on that point. Let me just at this, though. If brexit wins, you have two years to make new economic and trading relationships. And i think that can be done. I think its going to work out just fine. I think britain, which is such a Strong Financial area, the London Stock Exchange which trades everything, one of the largest in the world as far as i know, traders are not going to move to frankfurt. I dont think a lot is going to change except europe is out from under the boots of the European Union. The point, larry, is that britain wouldnt have control over how it would manage to sever the ties with the eu. That would be under the eu. Theyre probably not going to make it very pleasant. It could get a lot more expensive for britain to ship out or bring in goods to continue this relationship. There will be total free trade, trust me on this. Nothings going to change. In fact, id like to see britains bilateral with the United States pick up. We are their natural ally. We have a common language. We are very much the same. Britain is not a european country, never really been a european country. They will negotiate this thing just fine. Europe needs britain, lets face it. Europe is sinking. Their economy is sinking. Everything there. Theyre going in the wrong direction. Britain is an example, they shouldnt be punished, they should be rewarded. Im running out of time. But jim, can you point to something you believe would happen adversely to Great Britain if they were to leave the eu . They have two years to negotiate the deal. The first thing the eu is going to do is put up walls on them and say things that you were allowed to do you cant now, because you have no agreement. You have no agreement to trade with anybody. We have to start over from square one. This ecan do anything they want. They can say British Airlines can no longer fly to paris. They can say the Financial Services cannot cross borders into the continent because we have no more agreement with you. I think realistically, the brussels bureaucrats are going to punish the uk for leaving, because they dont want france to leave. And thats going to open a pan tor as box. Every poll france wants to leave worse than the uk. Maybe the eu bureaucracy will finally get the message from these individual countries, that they are wrecking europe. Thats going to happen. The issues you raise are threats. Ive heard this from the establishment, the status quo. All that stuff wont happen. It needs to be replaced anyway. Youve got two years to rearrange the dex shares. Theres plenty of time for all that. Its a lot like the u. S. Its a slippery slope. Were not going to were going to have magna carte 2. 0. Washington needs to be shaken up just as europe is being shaken up. It will be six countries, 17 currencies and 15 trade agreements. Guess where were going if this thing breaks up. Maybe the rest of europe will start cutting taxes and regulations to grow their economies. Maybe theres a lot of positive lessons to be learned. You guys, you do not disappoint. Really good arguments on both sides. It shows how complex this is. Coming up, we have a little over ten minutes to go before the closing bell. Well give you a quick market check. At the moment, the dow down about 56 points, the s p 500 a little more than a third of 1 . The nasdaq down a full percent. Still looking for stocks, like the worst week in about four months. And volume has appreciably picked up. We dont show the volume numbers here. But picking up as we get toward the expiration here. After the debate we just had, what can be said about brexit. David darsst will answer that when we come back. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Eight minutes left in the trading session here. A lot of price volatility as we head to the close with the options and futures expiration thats happening in the next few minutes here. Joining us on the floor of the new york Stock Exchange is david darcy, independent investment consultant. And your acronym this week brexit. Okay . I cant wait to see what you do with the middle letter there. Youll love this. I want to know xa the x is. Britainia comes from the group world of rules. Britainia rules. We love europe. We want them to stay together. Britain rules. Secondly, the r. The r is the retrenchment of the bank stocks, in the u. S. And especially the europe. Thats not good for the market. The e is earnings. Earnings is very, very key. Second quarter earnings season will be coming soon. Youre going to love this one. X is the Exchange Value of currency. The yen is up 13 this year. The euro is up 4. And gold as a currency, its up 22 . So we want to see that yen calm down a little bit, okay . Exi. I is the Interest Rate. Thank you. Interest rates are at record lows. Thats for savers. T is timing by Central Banks. We want to see them begin to move, because they have basically suffered a lot in credibility. They say the pope is infallible in more or less. Bankers and central bankers are not infallible. We want to see them move in a more steady and progressive way. What moves do you want to say . Normalization. Were going the other way in the u. S. Negative Interest Rates have not worked. Currencies have actually gone up in europe and in japan, even with negative Interest Rates. It hurts banks, it hurts savers. Whats needed, sarah, is not in the hands of Central Banks. Whats needed is structural reform. And a 7yearold child knows in the United States, its education. Its infrastructure. Its savings, its investment, its debt. And its the value of money. Those are the things a 7yearold knows are needed in this country. Got you. Thank you, sir. Always a pleasure. Nice to see you. Look forward to next week. Big week. Cant wait to see what the acronym is then. The closing countdown. Well have a 7yearold as well joining us to talk about Economic Activities in europe. Also, a Chinese Company going Chinese Government going after an American Company again. China says iphones violate a local companys patent. Coming up just ahead. More closing bell after this. Cofounder of the Fintech Services startup. Hello watson. Your analysis of social media and conversations on various trading floors, helps us uncover insights. Insights that help investors predict market closes, well before markets close. You know, your analysis has helped us improve our predictive accuracy by over 500 . 550. 2, to be precise, but we can always do better. I like your attitude watson. Thank you. 550. 2, to be precise, but we can always do better. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. On their auto insurance. Wouldnt a deal involve two parties discussing something . A little give . A little take . Because last time you checked, your rate was just, whatever they say it is. Why not give you some say in the matter . Or even better let your driving do the talking. Liberty mutual righttrack finally puts you in control of your rates. All you have to do is connect, drive and save. In fact, safe driving could save you up to 30 . With 5 off just for signing up. For righttrack. And the discount is good for the life of your policy. To get started, visit a local office or call Liberty Mutual today at take control of your rates. Visit a local office or call see Car Insurance in a whole new light. Liberty Mutual Insurance i am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Lets review the wheat here with the dow after all is said and done with the volatility weve had this week, down 1 on the week at 17,681. Feature this week, obviously, the tenyear bund in germany which went negative for the first time in history. Its back above zero right now, but not by a whole lot. Something to keep an eye on for next week. Gold touched 1315 this week. A high we havent seen in a few years. Still above 1300. And the vix hit a threemonth high at around 22, before pulling back. Its at 19 and change, bob pisani. Boy, will i be glad when this brexit thing is over. They say the trend is your friend. But whats the trend . What is the trend . When oil goes from almost 50, goes to 45, and all the way back to 48, you know, from 48 to 45, to 48 in two days. Whats the trend . People dont know. Were going to get the volume at the close here. This is the end of the quadruple witching and s p 500 rebalancing. It happens every quarter. Theres a few adtions. People change the balance in the s p 500. Some stocks increase their weighting. Some decrease. You have buybacks. Taking shares out of the market. A number of big names. Facebook, google, procter gamble. The game here is a lot of volume. Hopefully dont change the price. All right. Here we go. A little more running going on the floor as they do the rebalancing and expiration. The dow down 55 points. Turrium is ringing the closing bell. Hour two of closing bell. Welcome back to the closing bell. Im sarah eisen in today for kelly. How were finishing up the day and week on wall street. The dow going out with a loss of 58 points. Nasdaq down almost a full percent. Stocks closing lower for the sixth time in the last seven trading sessions. Worst week for the s p and nasdaq in seven weeks. Worst week for the dow in five. Two major tech ipos. Overall, ipo markets still low so far in 2016. Whats next for the second half of the year. That discussion on ipos. Were going to bring you Senior Market commentator and pro columnist, mike, and christina, investment strategist. Fast money trader tim seymour. Quiet day, not such a quiet week. Not at all. I think a slight relief that today was just a mechanical little selloff. Mostly concentrated in the big cap tech names. The s p was up today, along with oil, along with treasury yields. I think were still in this nervous pattern. You still see the volatility indexes elevated. People are anticipating lots of these quick silver moves weve had recently. Brexit is obviously an issue. Another thing getting a lot of conversation, in recent years, the week after the big june options expiration week, next week, are to the down side. Really not a lot of net damage to the overall s p 500. Youre still really well within that uptrend we saw four months ago. Christina hooper, a lot of fear in the markets as we get ready for brexit. Now weve got janet yellen testifying to congress for two days next week as well, just to add to the fun here. Do you blame people if they dont want to take a position ahead of time . Absolutely not. Investors with a shortterm horizon need to be cautious right now because theres an awful lot of uncertainty out there. Its not just the brexit, not just the fed, but there are job concerns out there. Tim, what are you doing ahead of the big vote, ahead of the big event . Well, you know, its obviously on some level a binary event or its not. I think positioning into brexit is evaluating the trades that have worked so far this year. Inflationary trade has worked in terms of hard assets. I think bonds are very rangebound here. I think if you are somewhat confident that brexit does not happen, i think youre going to see not a surge in yields, but trade to the back end of the range. I think treasuries are sideways to lower in terms of yields. But the treasury yields dont reflect the economic reality of the u. S. Economy. I think while wages are not going gangbusters, i think wage growth is not back. In the context of the economy we have, i think the market is actually trading just fine. And i think the reversal we saw earlier this week yesterday, i should say, after an appropriate level of caution and concern is very encouraging for next week. Michael, can you point to one market, one indicator that seems to have been a proxy for expectations for brexit . I think of the tenyear bund, for example. The tenyear bund certainly reflects all of that gathering up of anxiety ahead of the event. Obviously its the pound, the british pound has really been the focal point. If you look at even uk stocks, theyve certainly underperformed, european stocks. All those things, i think, have been punished in advance. Again, i dont think youre going to see the markets fully price, fully reflect what the possible ramifications would be ahead of time. Its going to be a close call on some level. Jeffy gundlach was on earlier today on cnbc. He was asked about the outlook for the u. S. Stock market. What was interesting was he sort of turned the conversation to his thoughts about donald trump. He said we could see a scare for stocks over this summer on Global Growth concerns. But then a rally, he says, trump becomes elected. Have a listen. I do think donald trump is going to move ahead in the polls. And ive been saying that all year. People laughed at me earlier this year when i said he was a legitimate candidate. Now hes the presumptive nominee. Im not supporting or going against, im just observing. I think its going to happen. I think trump is bonds fleg tiff and stocks positive. Hillary would be the opposite. Kristina, do you agree . Donald trump gets elected president . I think both candidates have something of a focus on fiscal stimulus. Which is sorely needed in this market environment. We relied on Monetary Policy far too long. And so both candidates going for the hope, at least, of Corporate Tax cuts, and some Infrastructure Spending as well as other spending. I do think its interesting were starting to hear more about the u. S. Election, especially in light of the brexit next week. Is that going to increasingly become one of the ways that the market and the economy gets priced and performs Going Forward here . I think perhaps into midsummer and after that. Whats interesting, in contrast to what gundlach said would be the likely outcomes, the stock market has traded in line with Hillary Clintons poll numbers. So in other words, a stock market seems to want that kind of status quo outcome of the election. It does not want the wild card of trump. So who knows. People have said that trumps chances increase, if you get some kind of big external shock. Dip into recession, some kind of other financial calamity. That doesnt seem like its very stock positive. Before we move on, tim, very quickly, theres some disagreement about what to do with volatility, as a trading vehicle. The vix obviously hit a threemonth high this week around 22. We had a trader on yesterday who said he would go long the vix here if brexit happens. There are those who say, im short the vix at this point. What would you be doing here . I think you want to own as much vol as you can get at a relative price before that, before a brexit vote. As weve seen volatility, at least looking at the headline between 13 and 16, 16. 50 the upper end of every time it got up there, it pushed down. Its a very coiled spring. Market volatility is showing way too much complacency. I think were going to have enormous bouts. I think the 30s, two or three more times this year. When i own vol at 16 again, because the new range is now until through brexit, no matter what the vote is, i think you have this kind of 16 to 25 range. Vol is here. So i would not be a seller necessarily tomorrow. All right. Lets move on. It wasnt just the tenyear bund that was hitting lows. Our own tenyear here in the United States was hitting multiple lows. Is the worst now over . Both the short and longterm outlooks on that. Deidre . Hey, bill, sarah. As the saying goes, theres nowhere to go but up. In the past, every time that the tenyear yield has fallen below that 1. 6 mark, it has rebounded one week and one month later. History suggests that after it crosses that threshold, markets may feel a little oversold and risk comes back in. The big and very reliable winners when that happens is equities, from the u. S. , to europe, to asia. The major indexes have rallied hard following such a drop in the tenyear yield. One month later. The euro stocks 50 returned 5 on average. Japanese stocks nearly 4 . The s p 5003 . And just to note, it has traded positive, the s p 500, in 100 of these cases, 7 out of 7 times. Even looking at the shorter time frame, one week out, the pattern holds. The bottom line is that risk tends to return after the tenyear yield falls below that 1. 6 mark. Now, in the u. S. , the best performing sector has been financials, followed by energy. And the laggards have been your traditional risk off assets, in addition to treasuries, its been the gold and dollar index that have been underperformers. A word of caution here. Even though history has been quite clear on what happens next, we are living in a negative yield world. There are major uncertainties on the horizon, such as the brexit and u. S. Election, as you guys have been talking about. Its possible the tenyear yields could fall even lower. If you do think history is going to repeat itself again, it could be a Good Opportunity to load off on equities. Back over to you. Deidre, thank you very much. Kristina hooper, do you buy that, both figuratively and literally . It depends on your time horizon. Good time to add to your equity exposure. Over the shorter term, investors should be cautious. And areas like gold make sense, not just in the shorter term, because of the brexit vote, and other uncertainty, but also in the longer term as a play on negative Interest Rates. If you look at the two sectors that finished higher, mike, this week, there were only two, telecom and utilities, continue to outperform as rates continue to stay low. You have a bear market leadership in this stock market, where were only a couple percent from alltime highs. That shows you its a very unorthodox mix going on here. Thats why if treasury yields do shoot higher, those guys are going to suffer. There would have to be a leadership transfer within the market if in fact stocks are going to benefit. What would happen for the treasury yields to shoot higher . The world would look like a somewhat safer, faster growing place presumably. Tim seymour, do you buy this notion that once the tenyear falls to those lows, below 1. 6 , that that turns into something of a green light for bulls and equities . Again, treasury yields going lower is not a function necessarily that were in a world where the u. S. Economy is trudging along reluctantly between 1. 5 and 2. 5 . Thats whats happening. The recessionary call out there just not happening. For 2016. So people need to say thats the wrong attitude. Therefore, lower rates, very positive for stocks. Certainly from a yield and earnings yield premium perspective. If youre just doing your stock valuations, the lower your discount rate, the higher your stock valuations. The economy is going into recession, theyre missing the obvious signals from Central Banks around the world. What it means is buy hard assets. It means things there is a reflationary trade going on. It means commodities are going higher. If rates are going lower, the dollar is not rallying very hard. If the dollar is not rallying hard, you want to think were getting killed when the dollar was rallying hard. Sounds like youre buying gold here . I think gold is rightly or wrongly, people think gold is a safe haven asset. I think its more of a metal that is a supply and demands aspect. I think the dollar weaker, it moves gold. I think golds challenged at 1300 this week was an important time for gold. We saw it pull back. But i think it will trade through that and probably goes higher. Kristina, janet yellen testifying next week. Is there a little more mystery now that she and bullard told us theyre on hold for a very long time . We dont have to guess every five seconds when theyre going to raise Interest Rates . Is there a little more mystery there . I dont think so. I think we need to recognize that every time the important Economic Data point comes out, the market will analyze it with a filter of what the fed must be thinking about it. So i think were still going to see just as much uncertainty and volatility as we have in the past. All right. Data dependency and new normal. Here we are. Things well still be talking about next week, im sure. Kristina, thank you for joining us today, appreciate it. Thank you. Tim, see you next hour. Catch tim and the rest of the crew coming up at 5 00 p. M. Eastern. Theyll be talking to griff witte. Do not miss that, coming up next hour. Coming up here, shares of apple falling today after beijings intellectual Property Office ruled against the tech giant in iphones patent claim. Up next, what apples legal loss reveals about doing business in china. And the number of pregnant women infected with zika in the United States has now risen to 234. The cdc holding a briefing earlier today on new developments in dealing with that virus. Well bring you the latest headlines there later. Youre watching cnbc, first in business worldwide. The heirloom tomato. Intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. They found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Shares of apple lower today, about 2 , as the tech giant battles Chinese Government regulators over alleged patent violations on its iphone 6 and 6plus. Its this phone that you see here on the left, the 100c, by Chinese Company bailey, however they pronounce it, saying apple is ripping off its product. Apple did file an appeal. And its phones are still on shelves. The question is, what does all this say about doing business in china, specifically for apple, and other companies. Joining us now is don rutledge who has done business and knows about doing business in china. The question investors have to be asking right now, don, is this going to be a big an increasing risk for apple Going Forward, especially in light of the fact that icahn warned he was getting out of the stock because he was worried about apples business in china, and letting apple do business in china . Well, number one, i think apple is too cheap, and even more too cheap. Number two, they are going to have increasing trouble. This is a silly patent ruling. Chinas always been squirrelly about patents anyway. But in this case, this is a patent filed in the beijing court for beijing only. And its about the outside look of the phone. It has nothing to do with the technology of the thing. But it shows you the government is increasingly hostile. I think the real story is this government has become paranoid about internal stability, and theyre pushing out in order to look tough for their inside viewers. Thats why we have the south china East China Sea issues. Its going to get worse. Its not going to get better. Shia is moving back on democratic reforms and market reforms. So the Bigger Picture is beyond apple, is it becoming more difficult for companies to do business in china right now . And will continue . It is, bill. And Many American companies are reporting that theyre getting less cooperation from governments. And i think its going to continue to be worse. But its part of the confrontation. Its too soon to call it a new cold war, but its a confrontation between the u. S. And china. A lot of it being waged through our surrogates, or our clients, you know, japan, taiwan, philippines, vietnam, and so forth. But were going to be in the face of china a lot more than we were over the last five to ten years. And its not the currency at all. Its the domestic government trying to do things to stem capital flight from china. Maybe. But it is interesting, mike, that it does come on the same week where we saw such a flashy display. Bob iger hoping Shanghai Disney world. They had members of the bureau there. They read a letter from president obama about how its a great example of the u. S. Investment in china. But they have a chinese partner. Yeah, chinese partner owns 57 of disney shanghai. That was a relationship and a project that was built up over a decade. And yes, it had to be done with a lot of local involvement. Because of the scale of it. And the land that you had to acquire and all the authorities you had to have permission from. I dont think its directly comparable, but look, i think if the market believed that todays news was fundamentally altering apples ability to do business in china, the stock would be down more than 2 . As you pointed out, the iphone 6 and 6plus are probably going to be replaced by the 7 in september anyway. Yeah. Probably discontinue those models. Right. So it doesnt seem like necessarily an ongoing permanent issue. But i think what it does reinforce is the idea that apple is not going to have some kind of very long runway in china, keep gaining market share. The question is, what can apple do about it . John, apple just invested 1 billion in the Ride Sharing Company in china. That was seen as a move to curry favor with the Chinese Government. It wasnt a stateowned firm, but it was a statebacked firm as we were told. What will it take for apple to apiece them . They will have to do more aggressive sucking up than that, apparently, to get the rulings in their fair. I agree, this in itself is not a big deal for apples profits or cash flows, but its a sign, of many other signs that the climate is worsening there. China is still going to be the Fastest Growing market. It still has 10 growth of incomes in its middle class and upper middle class. Its still a great market. But i think we should not expect smooth sailing there. Not just for apple, but for many other u. S. And european firms, too. There you are. John rutledge, my first economics mentor back in the day. I dont know, why do you look younger than i do now . How does that work . I dont think thats true, bill, but thank you. See you later, john. The market has been stagnant recently. It could get even slower next quarter. Well explain why coming up. First, the cdc working on new ways to screen blood donations for zika. The process . Its made in the fight against that virus, coming up next. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. Theres been three babies born with zika related birth defects here in the United States. The cdc is working to combat the virus and has been testing new ways to screen blood donations for zika. Our own meg terrell joins us with the update. What we heard today was an update from puerto rico. Theres a new test made by roach available to test the blood supply in puerto rico. It gives a really good look into the prevalence of zika infections in puerto rico. They say its very concerning, these cases of zika infection rapidly increasing. Up to 2 of the population there may be getting infected each month. What that means is thousands of pregnant women in puerto rico are at potential risk of getting infected with zika which could translate into dozens, or hundreds of babies affected by hydroselfy in the coming years. Because they have this good test of the blood supply, they are, of course, taking out any of the samples that test positive out of the blood supply in puerto rico. As for u. S. States right now, we do not have any local transmission via mosquitoes. However, we do have the mosquito here in the United States that transmits the zika. It is possible well see it here. Public Health Officials say as the summer months come, we may see especially among the gulf states, warmer states may see local infections of zika. What about brazil . Any update how it looks going into the olympics . The World Health Organization just last week had a meeting of the Emergency Committee to discuss whether they should delay or move the olympics as some folks have called for. They said right now, no. The risk of spreading zika internationally is going to be the same regardless of whether we have the olympics. It is a big concern there right now. The World Health Organization saying, though, because it will be brazilian winter, transmission wont be as bad there. They are actively trying to control this mosquito around the places where the olympics are being held. What do we learn about the transmission process, showing up most often in puerto rico right now . The fact that they have this mosquito is the main thing with puerto rico. They have other viruses transmitted by this mosquito. You can learn a lot about what we expect to see about zika from the patterns of the transmission of those diseases. They peak typically in the summer months and over the fall in puerto rico. That should give us clues what to expect in the United States as well. In new york we dont think about the dengue fever. They have a test in puerto rico for the blood supply, are there individual tests people can take as well . We have tests to see if you have zika here in the u. S. The cdc makes one, and one approved by another company as well. Cdc is working on making those better. Are there travel alerts for these places . Has the administration flagged going to puerto rico, for instance . They said anybody whos pregnant, thats the main concern, should not go to areas of active transmission of the zika virus. No restrictions on travel and trade, like we saw with ebola, and so forth. Meg tir rel with an update. News alert on viacom. Here we go again. Seema mody, what now . The story that keeps on giving, bill. A statement from the national amusement. This coming after this morning, viacom agreeing to pay philip philippes legal bills. Theres no jurisdiction for viacom to use Company Dollars to fund daumans unfounded attack on redstones unlawful decision to remove them from the trust. Especially in light of the announcement that its fiscal Third Quarter earnings will fall short of estimates. So the battle continues, guys. You can see the stock turning down by 1. 4 on the day. No action after hours. Very public battle. Oh, this is you know its going to get ugly here. It intensifies the argument over whose company is this. Its not even your company to pay for the legal battles for the people who were Board Members until yesterday. There you go. Where is this going. You know what, the market thinks its going toward some kind of catalyst to a transaction one way or the other. Its hard to know if thats the case. Yet the market looks at it in view of, this is kind of a wounded animal. And somebodys going to feast on it. Somethings got to be good for the bottom line. This could be the beginning of change, something that clearly investors are somethings changing all right. Thats for sure. All right. Lets move on. Time for an update with herera. Heres whats happening. The International Association of athletics federations has upheld the doping ban on russias track and field team, thereby banning them from competing from the rio olympics. In their meeting in vienna, they said russia had not done enough to restore Global Confidence in the integrity of its athletes. The medical Aid Organization Doctors Without Borders said it will no longer seek European Union funding. They are protesting the muchmaligned deal with turkey. Eu money totaled about 52 million in 2015, about 8 of that organizations total budget. The defense has rested in the case of a Baltimore Police officer charged in connection with the death of freddie gray. Officer goodson did not testify in his own defense. He is the third of six officers charged to stand trial. A wildfire in Santa Barbara county has doubled in size. Its now 4,000 acres, according to officials. Substantial winds and dry brush are fanning those flames. Its called the sherpa fire, and it is just 5 contained. More than 1,200 firefighters are battling the blades. Thats the news update this hour. We should note that the 101 is still closed in both directions in that area. No surprise. Right. Sue, thank you very much. See you. Japanese messaging service line, and cloud computing, Communications Company twillio, two companies preparing to go public. Why the Second Quarter could be the strongest for ipos in 2016. And thats not saying much. No, its not hard to be strong this year. And forget the cord. How would you like to charge your electronics by just walking. One companys doing just that, apparently. Thats coming up. Ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov not a lot of price volatility, but very heavy volume as anticipated because this was an expiration day. We did more than 2. 1 billion shares here at the new york Stock Exchange, when all was said and down. S p down 6. The nasdaq down almost 1 today with a decline of 44 points. Closing out a down week. Worst week in seven for the s p. So far this quarter, only 32 companies have gone public. Down significantly from this time last year when 72 Companies Went public. According to our next guest, this could be as good as it gets. Joining us right now is jackie kelly. Who says we are on the horizon of an ipo slowdown. Even slower slowdown. I guess weve been peaking a little bit here, now were going to head down again, is that the idea . Its been a challenging year overall. I think youre right, this may be the best quarter were going to see this year. Its been interesting. We knew coming into the year that this was going to be a really challenging year. We saw headwinds already from elections. Interest rates, didnt have any decisions on those. Those are still looming over us. But then we started out at the beginning of the year with a bunch of volatility. Now we have brexit. One thing after another. You have in Silicon Valley this active private financing business where theyre keeping these larger and Larger Companies private. And then even the companies that have come public in large degree havent been treated that well. Companies came out, di appointed the street, and maybe its acted as a deterrent effect. We have a lot of private financing going on. Obviously thats had an impact on the markets in recent years. But really, i think were ipos are going to be back in favor. Were ramping up 2017 for a great ipo year. Do you actually give advice to some of these private companies . What is your role in the process . Im just curious, because i want to know whats happening behind the scenes and what youre telling them as to that decision. Were getting into companies 12 to 18 months prior to their ipos. So we see the pipeline. We know its coming. We know companies are lining up to take advantage of it. I think well see a few others pop out, if they can. You know, in some short windows this year. But generally speaking, first Second Quarter is looking optimistic. What were telling them is, be prepared for, you know, just make sure youre ready. Its about not just having a successful ipo, but what you do as a new public company, a third of companies studies have shown can lose that value basically in the first quarter. They dont hit the numbers, the analyst numbers, their own, anything. You dont want to be in that situation. Do they have to be profitable now, where maybe it wasnt so important . We have a study coming out here that talks about what investors care about. And probably no surprise if youre a Company Planning an ipo, they care about the Management Team and the board. They really care about whos around you. Who are the quality investors, the quality Financial Advisers surrounding you. And then they care about, you know, not only top line, but care about bottom line. They want to see profitability. What gives you confidence 17 is going to be great . Obviously youre seeing the preparations being made, or because Certain Group of companies are going to be mature enough by then that theyll have little choice but to i think both of those. Well have all the election business behind us. One of the things that makes well have Great Companies who are well prepared. Theyve got plenty of time to do that this year because theres not much going on. Make sure the valuations are there and supported by real strong business. But then were going to open up to a market thats going to be nice and stable, hopefully, cross our fingers. Thats going to be a really Good Platform for ipos, low volatility, no real headwinds. Rates arent going up anytime soon. More good news for ipos really. Jackie kelly joining us today. Pop culture is filled with unlikely comeback stories, but none may be stranger than the revived interest in disgraced football star o. J. Simpson. The big business in his life story is just ahead. And its been said, youve got to have soul, and a new startup that starts from the soles of your shoes to charge your phone. Helping to transform the steel city. Kate rogers is live in pittsburgh with that story next. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. For fastidious librarian emily skinner, each day was fueled by thorough preparation for events to come. Well somewhere along the way, emily went right on living. But you see, with the help of her Raymond James financial advisor, she had planned for every eventuality. Which meant she continued to have the means to live on. Even at the ripe old age of 187. Life well planned. See what a Raymond James advisor can do for you. Weve all been there. Your brandnew iphone is great, but the battery life may not be. One startup is trying to tackle that issue. Its not located in new york or Silicon Valley, but rather its in the steel city. Kate . Thats right, sarah. Innovators like alexander here in pittsburgh are relying on technology to solve some of the worlds big problems. She is the ceo of sole power. Theyve created an insole that can be used to recharge the battery in your cell phone, gps, fittedness tracker and more. The battery literally recharges with each step you take. If you walk for about an hour, you get about po minutes talk time on your phone. Demoed at the white house, clearly shes on to something. But shes choosing to stay here in pittsburgh where other big tech players including apple, google and uber also have a presence. The community is small. But theyre really dedicated and passionate, and thinking about the right things, and ways to improve the region and create businesses. So id say the defining feature of pittsburgh is probably collaboration between the companies, and willingness to help everybody build a good business. More broadly, tech starters in this region have raised about 500 million in Venture Capital over the past two years. Right now, sole power is actually being tested out by the u. S. Army, and its also available for preorder online for about 200 a pair. Should be out this winter. Can i wear heels on this . Is that what you wanted me to ask . Oh, can you wear heels . I asked you while she was talking, i noticed youre wearing boots. Do the soles go to heels as well . How useful will this be for me, kate . I was thinking the same thing. I actually wore flats thinking the insoles could fit into my own shoes. They used the prototypes in boots right now. They have the mini generators, the same generators seeing in the winter binds, but they fit in the palm of your hand. Theyre inside of the sole. You cant exactly stick them in heels right now. But when they demoed it at the white house, she popped one of the generators in the sole of her shoes. Got to have the entrepreneurial spirit right there. Thanks very much, kate rogers. Thank you. A news alert in the upcoming uk vote on whether to leave the European Union. Seema mody has the latest. Bill, britains Times Newspaper in the saturday edition, front page, has come out in favor of staying in the europe union, endorsing the camp until the referendum vote. Citing the negative economic consequences of a brexit. Specifically when it comes to trade. This, of course, comes after the sun, the biggest selling newspaper earlier this week showing their support for the leave campaign. Keep in mind, london times is another paper owned by rupert murdock. With less than a week to go, papers voicing their support for the remain and leave camp, with the vote up on thursday. Seema, thank you. Mike . Well, first of all, the times, thats not a big surprise. Playing to its particular audience. But it tells you that you do have these loudest established voices on both sides of it. Its not really helping you get the idea that the scales have been tipped one way or the other. I just wonder what the message is to the average citizen there, what the impact is going to be on them. I think the challenge for the times in london and the other papers trying to make this case, is that youre basically telling people to vote for the status quo. If youre not particularly happy with the status quo, the idea its going to be risky if you dont do it, are you motivated to vote. Which sounds familiar here in this country. Yeah, it does. Joan rivers started her financial comeback by selling jewelry on qvc back in the day. And now her daughter, melissa, is auctioning off some of the late stars highpriced baubles for charity. We talked to melissa about why shes doing it. Youll see some of the things shes kelg as well, when we come back. Christies is holding an auction this week featuring the private collection of joan rivers. It started yesterday. And the live auction will be on june 22nd. We sat down with joan rivers daughter, melissa rivers, to talk more about it. How difficult was it to make this decision to auction off some of your mothers things . Very. I dont know if either of you have been through the loss of a parent or someone close to you and youre going through stuff, and the first thing you want do is keep everything, and every scrap of paper and everything they ever touched. As time goes on, you realize, either they dont have anything they like, or gee, they didnt have a lot of in my mothers case, wow, she was a borderline hoarder. You think about what you want and what you want to keep and what has been left to other people, other people who wanted things of my mothers. At one point you say, lets do some good with some of this. Youre keeping the stuff thats your moms, but youre selling the stuff that was joan rivers, you know what i mean . I see how you could think that. Theres a lot of blur in that. My mother was very clear on a lot of things. One of them was, what was a great gift to me, she always said that ther taste was her taste and my taste was my taste. And i didnt have to hav the same taste as her. She loved her things. And she loved using her beautiful things. And she didnt expect it to be my taste to be the same. She was always like, keep what you want, sell the rest. Do some good with the money. And then go and get things that you will love. And you will enjoy. And you will use. Because she was never a believer that this should sit in a safety deposit box or this shouldnt be used. Of course. She happened to have very good taste. Yeah. And she was known for that. And a lot of people are probably eager to see you want that bag, dont you. Theres something sparkling here. Lots of sparkley things. If you have a. D. D. , youre going to be in a lot of trouble Walking Around it. It will be like squirrel, squirrel, squirrel everywhere. Tell us about the purse. A bag she carried many, many times. Its just beautiful. Its gorgeous. The silver i believe it was from cartier. Thats my favorite item right there. I love that. A little shopping bag it was a gift for her back in the 70s. It was on her desk and she used it for pens and things like that on her desk. Theres everything from my parents had an amazing art collection. And also, they were tremendous faberge collectors. Ive chosen to recurate the faberge collection for myself. Someone said something smart to me, youre just a caretaker at the time that you have them. So as my father passed, and my mother rear curated the collection, my mother has now passed the collection on to me, and i will not recurate it for myself. Tell us about the auction. The Online Auction for the next several days, and then you have the the live auction on the 22nd. Then there will be another auction at leitchfield auctions in connecticut that fall in july as well. How much are we talking about here . She was a maximalist, which is rich people hoarding. She had a lot of stuff. As i like to say, she never met a tag sale she didnt like. We would expect nothing less of joan rivers. She loved a beautiful life. She loved to set a beautiful table. She loved china. And she loved napkins and tabletopers. And my mom had such style, it could be her best dishes mixed in with something that she literally found at a tag sale on the road somewhere in mississippi that she literally had the tour bus pull over. Its also a nice way for people to celebrate her. Yes. Because so many loved her. And miss her. And my mom was a truly believer of using her things. So youre getting a piece of something she truly loved. Joan rivers, one of a kind. Its got to be very difficult. Youre the child of a huge celebrity, you want to keep things, but youve got let go, right . Im sure shell keep several things. She told us afterwards, yes, she is keeping some of the prized items, the faberge eggs and i thought she took it right in stride when she was talking about how different her taste was from her mothers. But you said her mother had such good taste. She went right past that. That was classy on her part. They both have good taste. Theyre both Fashion Police. Shes going to say, i was nervous having a member of the Fashion Police on. But i passed essentially. I also wonder how joan would have dealt with this Political Campaign season as well. Lots of jokes untold and unwritten. Never held back. We can only imagine. It sure would be great. Its been 22 years today, as a matter of fact, the anniversary since o. J. Simpsons infamous bronco chase. People are still captivated by that case. And by the man himself. Our own jane wells has been digging into the business of o. J. Jane . Yeah, 22 years ago tonight, what were you doing. If you were alive and in america, or maybe parts of the world you were sitting in front of a tv set for an event for the way we cover the news, and its still compelling people. And getting ratings. That story when we come back. I enjoy keeping people up at night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. And that a tired dog is a good dog. [ dog barking, crashing ] so when you need a dog walker or a handyman, we can help you get the job done right, guaranteed. Get started today at angies list. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. Find out how American Express cards and services i could get used to this. Now you can. When you lease the 2016 es 350 for 329 a month for 36 months. See your lexus dealer. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Millions of people watched o. J. Simpsons bronco careen down the freeway when asked to surrender in connection with the murder of her exwife and her friend. 22 years later, millions tuned in to watch the mini series drama about the simpson murder trial. Jane wells has been digging into what keeps people interested in the business of o. J. Jane . Bill, im at the criminal courts building on the edge of what we used to call camp o. J. , because many of us spent the better part of a year here. But before that happened, there was that slowspeed chase 22 years ago tonight, which changed the way which cover live television. They are, according to police scanners, talking to o. J. On the phone from inside the house. Trying to negotiate something. There is a big crowd here. Of course, people i just dont know what to make of it. Jovial, laughing, running to the scene, like a party. Over the next three years, through two trials, the simpson story would end up being a windfall for the news media, and a generation later, celebrity murder, police, race, Domestic Abuse and justice remains powerful and profitable. Espns fivepart documentary premiered on abc to over 3 Million Viewers on saturday. Episodes then airing on espn have averaged 2. 3 million. 90 more than the average audience for their 30 for 30 documentary. A quarter Million People are just watching the documentary on the app. And ratings were even higher for the mini series on fx earlier this year. O. J. Is in the car, hes got a gun to his head. Fox estimates over various platforms, tv, be streaming, vod, 13 Million People regularly tuned in to the people versus o. J. Simpson. Guys, right now america is in the middle of a true crime binge between this, netflix is making a murderer, and a serial podcast. These are stories people just cant get enough of. And theyre true. Yeah. You know, ive been trying to impress on my kids exactly how much of a cultural icon, a positive one o. J. Was before all of this, and why this was such a momentumous event. Then it became this even bigger event when they were dealing with the race issues as well. This really opened our eyes to a lot of things here, didnt it, jane. He was perhaps the most likable athlete, celebrities, in america. Look, i grew up in l. A. I went to usc. We loved o. J. I remember the morning of the murders, after the murders when we all thought, oh, poor o. J. , somebody killed his wife. Who knew. It was just a crazy week, and a crazy three years. I think whats also helping is that the reviews have been so positive for some of these. Oh, yes. The espn getting rave reviews. Nothing short of a towering achievement says the Washington Post. Very well done. Espn put it in theaters so it could qualify for oscars. I think perhaps it takes 22 years to get it right. Between the fx mini series and this documentary. They are really, really well done. Yeah. Good point. Thanks, jane. Jane, thank you very much. See you later. That does it. Mike, have a good weekend. Happy fathers day. You, too. Thank you very much. Big week. Yellen testimony. Closing bell. Fast money starts right now. Fast money for a friday starts right now. Im melissa lee. Your traders on the desk are tim, steve, brian and guy. Tonight on fast, the Washington Post bureau chief said a brexit could be closer than investors think. He joins us live on the ground with the very latest. Plus, alphabet posting its worst day in two months, after citigroup posts ad growth. A top technician said that could spell trouble. Fathers day just around the corner. Instead of a tie, weve got four stocks that is sure to bring a smile to your old mans portfolio. James bullard dialing back his expectations for econo