Singing today. At the cnbc offices. And apparently soon around the world. Karoke day in the news room at cnbc. By the way, can you shoot just look. Its fleet week as well here. Wave, everybody, guys, say hello to america. There you go. So we got Barry Manilow, fleet week, and the whoop whoop will be coming up in 30 minutes as well today. Adjust your volume. Theres other news too, though. We have to get to it this hour. Bmw and volkswagen caught in the cross hairs after President Trump slammed the german auto makers. Whats behind the harsh represent reck coming up. The ceo of netflix said its biggest competitor is sleep, remember that . Now facebook could be trying to give netflix a run for money as well. Details on that story coming up a little later. As amazon and alphabet crawl towards 1,000 a share, we begin with stocks in that prestigious 1,000 a share club, dom has theres only one stock, other than berkshire hathaway, right . Of course. The 1,000 stock club is verified, for sure. Amson is close, but only one member of the large cap s p 500 index, that title belongs to Online Travel site, priceline group, the shares now trade over 1800 a piece. You got the company out right now, the shares alphabet at 992. The only other one in the 900 hang is surgical, remember, guys, share price itself does not mean much for the market value, though, in case of the amazon and alphabet story, it used to be the potentially more attractive, but now they turn to mutual funds, and that matters relatively less than it has in the past. Higher prices discourage a lot of trading volume, so relative disadvantage there for some of the professional brokers that charge trading fees. All, told, though, that thousand club impressive from a headline stand point. Like you said, s p 500, not mentioning explicitly is that berk share, yes, 248,000 a share. The b shares, still at measly 165, guys, back over to you. Favorite Barry Manilow song . Cocoa cabana is good. I like the songs that make the im not singing, dont worry. We want you to. This is your chance to show the world. Im not going to embarrass myself that way, guys. Forever grateful. Thank you. Have a great weekend, guys. You too. Amazon and alphabet two tech Stocks Holding up the s p 500. Those stocks along with apple, facebook, and microsoft are responsible for half of the s ps gains so far this year. A sign that these five stocks are characterizing the Closing Bell Exchange today. Meg green with us today. When you think about it, the markets riding on the back of the faang stocks, microsoft, and, you know, i know some people are anxious to correlate this with what happened to the dotcom boom, but its different this time, dont you think . I dont think were quite to the dotcom bust cycle we had, but it is troubling. You want rallies broad based, and its true, particularly looking at a place like the small caps. Theyve not participated in the same way. Small caps rallied up to the all time high in april and proceeded to have a massachusettsive selloff, and, in fact, look at the 50day moving average for the russell 2,000, its flat lined since march. It is true, are the faang stocks and others driving the market . Yes, absolutely. We want it more broad based. What i say to people, exercise caution in what youre doing. You know the markets are going to be trending higher, all things being equal, they are very much in a flat way at this point in time. We really cant look on the horizon or see anything bringing them downright now, but you have to stay vigilant and keep aware and powder dry right now, but i do believe the small caps are the real key for direction bias as we move through the month of june . Coming back to that, but you said looking at the market overall, you feel like you should be scared. Terrified was the word you used, but youre all in, right . Well, all in with a little cash on the side, and thats the smart thing to do, i think, for anybody. We cant you know theres going to be be a correction, but the correction i think is probably going to be a 10 correction. People will run, let the panic go, investors who are not committed will get out. Talking about these heights and these stocks, i dont know that everyone listened to jeremy this morning, but the markets have been like this in 2000. I looked at that chart when nasdaq fell. Afterwards, oh, my goodness, they didnt realize that. It took 16, 15 years to get back to where it was. Right. I dont think were here, but i think you need to think about this caption, whats happening, were not in the type of world we were in the 50s and 60s when you had women going to work, the baby boomers going to work, appliances coming out. You had so many things beginning, and infrastructure, my god, the roads they were spending on. But, today, what are we looking at . Looking at a lot of the disruptions, which is why you see this disconnect in the market. Cars will be computers on wheels, looking at retail. Who doesnt buy on amazon, and use papal, and all the things social media, and thats whats moving the market because people are looking to the future. Its where you have to be in the market. For a long time, a student of the market. I have to ask you this. Rather than going on yields or currencies today, what do you think about the change in the market over the last several years where electronics etfs have really come to the floor for a lot of people how have they changed the way people trade the markets these days . Two in particular. Etf side, they are wonderful instruments. The issue with them is going to be most likely higher level starts to come back down a bit, just take the hyg. Okay. People run the fund and have to buy securities to keep up with the notion of people buying etfs not buying securities, but it creates a market for securities that might have not existed otherwise. So trying to unload some of that stuff in a time theres a correction is going to have rem innocents in the activity seen with portfolio 1987. Thats volatility. Until we get to that, the other extreme continues to exist. Im convinced that electronic trading is why volatilitys down. In the end, algorithms and especially the ones learning more like watson, Artificial Intelligence, they pretty much try to hold the same position at the same time. Which is good. Its going to create markets that, just like stocks, they go up slowly. They dont have volatility, the same issue with the etfs, catalysts are going to be the market. When those same algorithms, the same Intelligence Computers dont want positions anymore, thats the issue. Were going to really feel smart when that occurs because markets will not be able to handle it for a lot of reasons that include springs. I knew he had to get that in. Kind of that moment. I want to circle back to the russell for a moment because of the banner close yesterday. The nasdaq and s p at alltime highs, dow not far away, and russell lower again today, and i thought this was the one area that was going to have the most runups after the trump election, and, perhaps, benefit from what this environment is that were in. Whats beginning on there . Therest a couple stories to it, i think. One is that the trump agenda is getting delayed, and, of course, talking about tax reform, infrastructure spending, regulatory rollbacks, companies who do 90 of the businesses in the United States, which is the predominant group inside the russell, they would benefit the most. Thats taken the winds from the sails in the russell a little bit there. The other issue that you have is when you see the small caps not participating with the large caps, investors are concerned about growth inside the u. S. Going forward, signals we have to be aware of, and as megawas saying, keep the pattern dry on the sidelines to take advantage of that. Again, the small caps for me are always the key to the Overall Health of the market from a broad based rally or selloff standpoi standpoint, and you have to keep an eye on it. Last point, we saw master redemptions in the iwn in the last week, and that, again, another warning sign as people start to pull away from the market. Now, may be rotating into the larger caps and chasing faang, going to europe a little bit. Im sure thats the case, but its something we do need to keep an eye on. All right. We have to go at this point. Thanks. Thank you, all, for thoughts on todays markets. Have a great long weekend as well. You too. Thanks. Bye. All right, 50 minutes until the close here, down by a couple points. This after string of recent gains. Weve seen the dow remains 30 points off the closing high. The s p retreating from yesterdays close by less than a point. Nasdaq is up about a point, which i think would make for a new High Water Mark. It would. Not far for the s p as well. We could see records by the time we hear the closing bell. When the president of the United States talks, people listen. When we come back, the latest on a controversy sparked by President Trumps comments about germany, plus, a fact check on what mr. Trump said about that as well. Also, coming up, Barry Manilow speaks with us before ringing the closing bell at the new york Stock Exchange, discussing his album, and his biggest money mistake. I cant wait. Stay tuned, watching cnbc, first in business worldwide. We, the entertainmentloving people, want all our rooms to be tv rooms. Because those are the best rooms. Because they have tvs in them. And, when were not in those rooms, we want our shows to go with us. Anywhere . You got that right, kid show thing. Get a directv allincluded package for 4 rooms. Only 25 a month, price guaranteed for 2 years. Available for at t unlimited plus customers. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Welcome back. Checking out Market MoversDeckers Outdoor surging. 11 last night. Now 18 . Ugg boots maker with better than expected revenue and surprise profit. Analysts expected a loss. Deckers raised outlook for the full year. Boom. Gamestop is lower, though, despite an earnings beat. One analyst said nintendos switch console could boost sales, but uncertainty whether they keep up with demand limits visibility for the second half of the year. Animalests point out that a delay in the highly anticipated game red dead 2, that could be a potential risk right there. Preorder in for that, do you . Oh, you know it, yeah. I played zelda 20 years ago. Mario cart here. That was a good one too President Trump clarifies comments about germany that caused a stir. Phil lebeau with more. Yesterday, there were a lot of people talking about reports out of germany that or out of europe, that the president told leaders in europe that he was thinking about stopping car sales from germany because of the trade deficit with the german countries that the u. S. Has right now. Today, the white house is out saying, no, no, no, we never said we were going to stop car sa sale, but they blasted the trade deficit between the United States and germany, and specifically with the auto industry, its a hefty one. Theres a 15. 5 billion trade deficit with germany. Why . German brand vehicles, and theres about 846,000 that were imported from germany sold in the u. S. , primarily high end sedans, sports cars, 5 of the u. S. Sales are vehicles that were build in germany. Brings up the question, well, arent they building them in the u. S. Right now . Yes, they are. Quite a few actually. But relative to the competitors, they still import more than they actually build here. You see daimler, bmw, vw, thats how many they sell in the u. S. Built in the u. S. They are expanding production in the south, talking about bmws plant in South Carolina and mercedes one in alabama, vw in chattanooga. They are expanding, running at capacity, but building suvs and crossovers, and, by the way, many of those are exported. They built more than 800,000 vehicles last year. You can expect that number to increase this year with volkswagen adding a new suv to its plant in chattanooga. Those are the numbers behind the trade deficit with autos in germany. Which, i mean, some of this, phil, is a well known. We have known germany benefits from the cheaper euro, autos are a big source of exports, so it states the obvious here. The question becomes, is there a retaliation in this . Does this become wrapped up in u. S. Policy of some kind . Before you answer, let me say, and i know im criticized for this, but theres no guarantees anywhere, and everybody does what they feel is best for them, and when you have a trade deal or not, theres no guarantee that youre going to have a perfect balance trade relationship, right . Guys, what the Trump Administrationments is for more of the vehicles that are sold here to be built here. Now rs its unlikely that youre going to see the german auto maker say, you know, were going to stop exporting the 7 series from germany so we can build it in the United States. What the Trump Administration, though, is really worried about is that all of the german auto makers have either built or are building plants in mexico, and those plants will be supplying vehicles to the u. S. In addition to whats built in South Carolina and alabama and tennessee. I guarantee you if youre a fly on the wall on trade talks, those plants are at the heart of what bothers the Trump Administration. Again, you do whats right for you, and those are the conditions that are better for them there than hay are here in the United States. Again, thats i get it. Thats something that the Trump Administrationments to change now. They are here to be change, and they want to ensure that we can, at least, begin the process of balancing that. Like the 80s and japanese auto makers. Phil, they tried everything, restrictions, tariffs, and the only solution eventually was, fine, make them here because customers buy them anyway. Correct. Now the question becomes, do we see the german auto makers add another plant in the u. S. . They are expanding production in the existing plant, but the bmw plant is largest in the world and still expanding there. Can the Trump Administration get the german auto makers to add another plant . Thats the question. All right. Good stuff, phil, thank you very much. You bet. See you later. 40 minutes left in the trading session. Hes in the house, you know. Is he . Is that what that stir was about . We waved awhile ago. Dow down three and a half points. Facebook getting ready to take on netflix and video streaming. How big facebook poses a threat to netflix. Thats coming up. Im sorry. Hes won a grammy, emmy, a tony, and there he is with the fleet, Barry Manilow in the house to ring the bell, meantime, though, to talk about the fast changing Music Industry and will ask about him his biggest money mistake. He doesnt know that yet, though. Well be right back. Dear predictable, theres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced, our senses awake, our hearts racing as one. I know this is sudden, but they say if you love something. Set it free. See you around, giulia were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Yeah. Well, we gotta hand it thto fedex. Glasses. Theyve helped make our ecommerce so easy, and now were getting all kinds of new customers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for small business. Fedex. Hes won a grammy, emmy, a tony. Hes a singer, song writer. Do i have to introduce barry . We all know that the great hits hes had, but we were just talking about which kelly said that its stuck in her head. It is mine too. What stuck in my head is this, ive never been here. First time . Its like out of a movie or something. Its fantastic. Isnt it crazy . Yeah. Let me just mention, your new album is called this is my town, songs of new york, from brooklyn. Perfect album to be here for. Right . I mean, you know, they got the album cover all over the place. Its perfect for me to be at the Stock Exchange with this album. So, you mentioned you have not been here before, but, you know, as you become successful, had this long flourishing career, certainly, people approached you with investments over the years . I throw that to the business guys. You know, i like a keyboard, not a computer keyboard. You dont trade stocks . You dont invest . No. You dont Pay Attention to amazon . Somebody does it for me. I dont. Its too complicated for my pea brain. I stick to music. Let me lets talk about the music business, though. Your careers been around long enough, youve seen major transition thats gone on in the industry here of how artists are compensated and how your work is distributed here. Old model better or new model better, what do you think . Simpler, thats for sure. It was not easy to understand. About eight years ago, its got real bad. Nobody knew what on earth to do. How do you sell a record . How do you compensate artists or composers, songwriters, how do you do that . For those last eight years, its been rough. It feels to me like they were just beginning to get a grasp on how to do it, im crossing fingers that we can all timely start to make money again. I want to know so the young people, i dont know how a young band can survive. You dont make money on albums anymore. So last evening, bill made dinner and said, alexa, play