Transcripts For CNBC Closing Bell 20170707 : comparemela.com

the economy are most at risk if there is a trade war. >> and companies warning last month's global cyber attack is actually having an impact on their financials we've got the details on which companies are being hit. >> meanwhile, can a superhero save the summer box office season in the new superman movie is out today we'll tell you what's riding on that film and an analyst who says exposure to movies is a risk for some media companies. we'll tell you which ones. >> "spider-man" versus "wonder woman" and the fight for the box office. >> so far -- >> so far "wonder woman go the "is dominating >> big-time this summer and our not surprised? >> no, about time we had a female superhero start with stocks moving higher on the back of today's jobs number. the junes job report may have come in much stronger than expected but the federal reserve is expressing some concerns about wage growth right now. ylan mui, another super woman. >> the fed flagged the problem in the monetary policy report to congress which was released ahead of yellen's tim on the hill next week, and it says that despite the broad-based strength and measures of employment wage growth has been only modest. the federal also called out inflation which it says has softened some in recent months now, this recent report was put together before the june jobs numbers came out but that underscored the report on wages. they linked it to low productitivity growth but not just in the u.s. but around the world. a few potential explanations that the fed dives into the report, the robert gordon theory that today's technology isn't that transformative, that the global financial crisis has kept workers from moving into more productive firms and forced companies to cut r & d spending. maybe it's the slowdown in global trade whatever the reerng the fed still is he is tabt to say that this is the new normal, but it warned if this trend continues, it could halfer the fed's ability to stimulate the economy even in a shallow recession. back over to you. >> ylan, thank you please don't go anywhere we also want to bring into this conversation cnbc economics reporter steve liesman, jeff cleveland and cnbc senior contributor larry kudlow so now we've got a debate. the fed sort of in between a rock and a hard place. wall street expects them to keep going with hiking ates, but we're not seeing a whole lot of inflation, and we saw that in the wage growth numbers. >> i agree 100%. by the way, more people working more hours does not cause inflation. that's a good thing, not a bad thing, all right prosperity does not cause inflation, so, therefore, i conclude and it was good jobs numbers the fed should restrain its restraint. they should go very, very slowly here. >> don't you think they will anyway >> i don't know. it's hard to know -- >> most economists are saying expect another hike. >> of course, expect another hike if you look at forward-locking market price indicators of inflation, gold, the dollar, commodity baskets, yield curves, spreads, i don't see any indications of inflation whatsoever inflation is too much money chasing too few goods. it's a monetary phenomenon it's not about working and, therefore, as long as the market indicators are calm and steady, i say to the fed halt your fire and wait andwait for corporate tax cuts. >> i know you want to take the other side steve. >> i want to associate moy remarks with -- with my thoughts with the comments of my colleague larry kudlow and point out we use this term wrong we say wage inflation as a proxy for wage increases only wage growth, that is, bigger or higher or greater than productivity growth is potentially but not necessarily inflationary we should not go directly from higher wages to fears of inflation. >> this is key just to clarify, real quick. >> i don't want to get too deep into the weeds on this. >> because people are getting language wrong first of all, wages are not rising rapidly what really rose in this employment worked was hours work which is terrific, by the way, terrific and i'm just saying to steve's point and we do agree on this, only if the fed monetizes wage increases, and they are not. there's no evidence in the market indicators, even the old-fashioned money supply is only grow at 5%, 6%. this is nothing going on here. the fed should restrain its restraint. >> steve, you know, i -- as you know, my degree wasn't in economics, but i did get an "a" in the class i too, and they always told us that full employment would lead to wage increases. is it balls of the hours worked increases that we're not getting wage inflation >> look, i'm sorry, bill, but your textbook was correct for a textbook but not necessarily for the real world we don't really know why when you look at what's happening with unemployment and what's happening with wages there's a much bigger gap than you see. you can see right there the other times that unemployment was this low, it's a very simple supply and demand equation as the supply of labor goes down, the price of it goes up, so you should have higher wages. but look at that gap to the right side it could be because it's the new technological global world it could be because older folks are retiring younger folks are coming on to the payrolls at lower wages. that could be all part of it we don't necessarily know for sure we know that you should be in a situation of higher wage gains than we've been having at the given unemployment rate and it may be something that's yet to come. >> steve, i thought it was interesting that the feds did not include that sort of baby boomers blaming -- blaming baby boomers as the problem in their monetary policy report they left out that whole demographic argument as among reasons why wage growth has been so tepid, though it seems like that's one you cannot ignore demographics are simply perhaps moving in a way in which productivity is going to be lower. >> ylan, i think what's happening at fed is bigger and broader than that right now. i think they are rethinking the inflation dynamic that they know. >> oh. >> when i interviewed the chicago fed.you know, what he said to me was, look, there's all this other stuff going on and we ought to be thinking about it i think that one of the things -- >> hang on, hang on. >> one of the things the fed ought to do is create inflation. they have been incapable of essentially doing that for several years, and i think we all want to come back and re-examine this. >> jeff cleveland, like you're at an italian family dinner. you've got to jump in here, buddy. >> you're saying the fed should just move ahead with rate hikes, right? >> i think what's happening here is everyone is falling over themselves to try to explain the past inflation has been low it may just be that we're now getting to the point where the labor market is getting tighter. recently got to 4.4 on the unemployment rate ant when we get there we'll see wage growth pick up. we're not seeing it in average hourly earnings yet. we are seeing it in the wage tracker, the atlanta fed wage tracker which is up 3.5%, so i think we're seeing some incipient signs that the wage growth will pick up. >> this is good, this is good. this is old stuff. it's never worked and it's not going to work again. look, more people working and prospering does not cause inflation. that is a goal to be desired, not shunned. monetary policy affects inflation. if the fed is creating too much money and you'll see it in a crashing dollar, in a soaring gold price, in soaring commodities, none of which do we see, that means this is all fine here's the opening to the fed. i want them to normal irksz okay business, tax cuts, by the way, the congress must not go home in august they must stay and give me a business tax cut. >> six minutes to bring up business tax cuts. this is a segment we knew was going to come. >> an increase in business tax cuts will increase the economy and real interest rates and the federal follows the real interest rate tire and we'll normalize, but just on the face of it, just because some people are work, that is no reason to tighten policy, i'm sorry. >> jeff, i'll ask you the final question just to move this forward. beyond the debate of will they or won't they because they will make the decision without our panel >> no. >> is there a risk though if they do tighten more this year and raise interest rates and start shrinking the balance sheet prematurely before they see the whites of inflation's eyes as we've heard before is that risky for the economy and the market >> no. i think the economy is in great shape. that's what you see in this report we've seen no slowdown, sara, in job growth 180,000 average monthly rate which is almost exactly like last year. larry, i'm not seeing wages cause inflation. i'm saying wages will pick up here it's better for the consumer, consumer incomes run which are good for the economy. >> right. >> good for stocks. >> right. >> so this is a good argument. >> no, no, hold on though, guys. i know we have to go >> i've got to wrap this it up at some point. >> serious underlying issues here the idea that wages are not going up, the inequality issues, serious economic issues. it's not an inflation problem, but it is a problem. >> we're creating too many incentives, and a lot of these social programs. a lot of people are out of the workforce who should be back into the workforce that's a different subject, i know. >> and now we're getting way off. >> the former federal reserve governor, friend of mine, may be the next fed chair for all we know kevin has repeatedly said the federal reserve should stop obsessioning about these labor market indicators and should start watching commodity market indicators and open market bond indicators when you look at those indicators, there is no inflation. >> well, corn and soybean are jumping big here these days. you just said xhotdity prices. >> all right the index, the index, the basket the crb spots, the crb futures, gold, dollar look, the yield curve is flat. none of that stuff is showing to kind of break out what we're all looking at don't kill the economy wait until the tax cuts come and then the fed can move. that's what they should be hoping for let america prosper. >> if we're waiting for a tax cut we'll be waiting a really long time. >> ylan, the problem with your view is you may be right, and that is why -- that is why we're going to come back there are 25 calendar days in august they should use them no august vacation no vacay we have staycay. that means stay at home and work and if they do staycay we'll get a good business tax cut, the economy will rise and interest rates will normalize and the dollar will strengthen and america will be great. >> it don't rain in indianapolis in the summertime. somebody, please pass the garlic bread. we've got to go here appreciate it. >> good to be. >> see you later that was fun. now to the markets ray dalio from bridgewater associates thinks that the central bank party could be over soon he wrote about that on his newest linked-in post. central bankers have clearly and understandably told us that henceforth those flows from the punch bowl will be tapered rather increased, and our responsibility now is to keep dancing and closer to the exit and with a sharp eye on the tea leaves a lot of metaphors to work with there. so what impact could all of that have on your investment strategy let's get to our "closing bell" exchange mike gibbs is director of equity portfolio strategy at raymond james. keith bliss from katonin companies somewhere out there on the new york stock exchange and jack bouroudjian playing the part of rick santelli, co-founder and xheef chist at universal economist. others have made the same comment that monetary policy is no longer a tailwind, is becoming a headwind and here we sit with a is hundred-point rally on the dow today and the stock market is near all-time highs. so is that not yet a headwind for equities in. >> the proof is not in the pudding yet for me yet they have raised interest rates three times since december and financial conditions have done nothing but ease the dollar has depreciated, the ten-year rate has been staying to its downtrend line going back 20 years, trading up the last couple of days but still trading below 2.3% and the equity market is raging at all-time highs. i don't see monetary policy. yellen said, always very god about telegraphing what they are going to do about months in advance and very open about that and so far hasn't done anything. the word we're starting to hear out of fed speak now is they are worried about asset bubbles. that's the excuse that they are going to use to go ahead and keep raising interest rates, and it's really all about financial conditions people need to focus on that the dollar strength where the ten-year trades and where the equity market is, it still shows that money is flowing very freely in the market, a little too much for the fed's liking, and that's why they are going to raise interest rates listening to the italian dinner party before, it really has nothing to do with the unemployment rate, wage pressures, wage gains. it's all about the financial conditions people need to focus on that, ant market is, and the market is okay with it at this point in time they are going to march on and probably raise another 25 in december they will keep doing that and that's just the way it is in the equity market. we'll take it. >> i'm not sure that the market is okay with it, and i'm not sure that this is only about the federal reserve. dalio indicated it was global central banks and that's really the story of the last week or so we saw the synchronized global bond move selling off, yields higher, stocks wobbling around the world. is that how you see it >> jack? >> absolutely. sara, you can even say what ray dalio is saying they have been taking the syringe away. we've been pumping the patient with steroid injections now for years, and when you start to take the medicine away, what happens is that patient goes through withdrawals. we're going to start seeing the global economies go through some volatility that's the withdrawal part of it it now the bottom line though is that what we're looking at is the situation, and rick santelli has been talking about it time and time again, that you've got one-third of the sovereign fed controlled by the federal banks. this is a ma nip late market if we had one-third of any market controlled by any entity we would be talking about it as if it was a monopoly at some point so what we really need to do suns that this fed is now draining the system. the central banks around the world are ready to drain, and if that's taking place, then we have to be prepared for it, an as ray dalio was saying, we've got to be very, very close to the exits. look, you know, this market has gone up 20%. you can't go broke taking a profit probably is a good time to start monetizing some of those gains into this rally. >> and mike gibbs, you know, yields have been rising here recently, and the bank stocks have come up as well is it time to buy the financials here finally, do you think >> i like the financials we've liked the financials all along. you notice the yield curves have steepened a little bit and financial have come up 90% correlated to the ten your over the last year, and i think yields will continually push higher, and i think the financial go higher. financials have good earnings momentum behind them the regulatory environment is coming down, and i do think that they are an area we like and an area i would continue to purchase. >> all right, gentlemen, we have to go. the spaghetti dinner has crowded us out a little pitt here but thank you all for your thoughts on today's market action have the a good weekend. >> same to you. meantime, a news alert on uber what's going on? >> hey, bill, the drama continues this time in uber's lawsuit with alphabet, the autonomous car division waymo. waymo has dropped three of its four patent infringement claims against uber waymo tells us this will narrow the focus of its lawsuit which after all is largely over trade secrets, not patents irish says the latest development is a sign that waymo can't make its case. included in its statement a spokesperson says, quote, faced with the hard truth, waymo has resorted to floating conspiracy theories not rooted in fact, doing everything they can to put the focus on sensation rather than substance those are fighting words, guys, and certainly not the last that you'll hear from either side to remind you that this is the case that centers on a former google engineer anthony levandowski that went over to lead uber to its driverless car company and waymo alleges he took proprietary technology with him which was later used in the autonomous car process this goes to a jury later this year waymo says we look forward to trial. >> and the jawboning has just begun here thanks very much see you later. >> 43 minutes left in the trading session. it's been a pretty good day for the bulls so far to close out what has been a pretty volatile woke for the equity markets. >> they were all flat i think. >> started the week with a real and we're ending it right now. >> bouncing back from yesterday's big logs of a percent. >> exactly, which was taking u just above the unchanged level for the week here. >> president trump did meet with russian president vladimir putin today at g-20 in germany up next the highlight that have highly anticipated meeting we'll also skwus whether trump's tough talk could actually end up hurting the u.s. >> one of the shorter handshakes you'll ever see among world leaders, by the way. >> and sony and disney teaming up to reboot the "spiderman" franchise. is it too late for this super hero move toe save the summer box snofs a look at the big studio winners and losers coming up. >> and we want to hear from you. you can contact the show on twitter, facebook or send us an e-mail you're watching cnbc, first in business worldwide at fidelity, trades are now just $4.95. 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. and at $4.95, you can trade with a clear advantage. if only the signs were as obvious when you trade. fidelity's 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. trade policies were certainly a hot topic today at the g-20 meeting in hamburg, germany and so was president trump's long-awaited meeting with russian president vladimir putin. our eamon javers is there and has the highlight from both discussions. eamon? >> reporter: yeah, hi, sara, you're absolutely right on both topics secretary of state rex tillerson gave a briefing to reporters after the meeting between trump and putin in which he laid out some of the items that were discussed. he said that president trump brought up the issue of russian interference in the 2016 u.s. election as one of the first agenda items here's how he explained in the off-camera briefing how that conversation unfolded. >> they had a very robust and lengthy exchange on the subject. the president pressed president putin on more than one occasion regarding russian involvement. president putin denied such involvement, as i think he has in the past. the two leaders agreed though that this is a substantial hindrance, and the ability of us to move the russian-u.s. relationship forward and agreed to exchange further work regarding commitments of non-interference. >> reporter: so commitments of non-interference is something that the two sides will discuss going forward. no specific commitments though here as of right now as far as we understand. we're going to wait and get more reporting on that. meanwhile some economics being discussed here at this economic summit including on trade, a couple of points to bring you up to speed on angela merkel saying that the g-20 offers a chance for a multi-lateral steel deal here so that's something to watch forthcoming days and also the president with non-committal conference on nafta saying we'll see how it all turns out and the wto, imf and world bank urging g-20 leaders to agree on actions to reinvigorate trade but at the same time to support workers, so that's something that will be of interest to a lot of the protesters who have been here. we've got a big contingent of anti-capitalist protesters here in hamburg it's gotten a little bit violent on occasion over the past 24, 48 hours. those folks very much feeling the globalization has left them and the folks they care about out on the global outside looking in here and expecting their views vehemently here in hamburg, guys. >> we're just glad you made it inside safe and quiet. eamon, thank you. >> it got a little hairy out there earlier so we came inside. >> good move >> thank you, eamon. president trump's tough talk on trade has the eu warning of retaliation. if the u.s. does go through with restrictions europe would respond to any sanctions. here's the quote, strong one from junker. our mood is increasingly combative. >> one of the things he said they would impose tariffs on, kentucky bourbon. >> main export of senator mitch mcconnell's kentucky. >> let's bring in david gordon from the eurasia group and carla hill, a former trade rep under the first president bush miss hill, are we headed for a trade war with europe? >> i hope not. i hope that we can reach out and regain our leadership in trade it's been a while since we've had a good multi-lateral trade agreement or even a major regional trade agreement, and we have indicated that we're not interested in, and that really hurts or nation's economy. we have pulled out of the transpacific partnership, and now we see japan making a deal with europe which will have an adverse effect upon a number of our industries as japan lowers its tariffs to our competitors, and we are in effect taxed when we get the opportunity to sell >> david, clearly america first is a solo kind of policy, but do any of the other major leaders endorse this sort of anti-free trade multi-lateral trade deal stance that the trump administration has taken, and i would know they say they are not anti-free trade, they just want it fairer and this posturing on free trade is the united states isolated here >> i think the u.s. is isolated rhetorically, and eu commission president juncker laid down a tough line and i think the signal came from chancellor merkel's comments that one of the potential outcomes is a multi-lateral framework on steel, so the u.s. has been talking about a steel action either under anti-dumping rules or under the so-called national security exemption rule that is part of the wto. the europeans are pushing back i suspect that merkel would -- would not have made her comments unless she felt that there was a fairly good chance of coming at least to an agreement in principle around a framework for addressing the steel issue, though i completely concur with carla hill's statement about the u.s. walking away at our expense from trade, and i think that's where other countries aren't behaving that much differently than we are, but they are not self-isolating themselves through rhetoric. >> hey, miss hill, has german and even chinese steel been dumped here? i mean, is it unfairly subsidized price-wise and we've just been looking the other way and allowing that to happen? is that what has been going on >> when we have trade rules, we should use them and if there is dumping we should bring a dumping action and apply remedies those that we have agreed to i think it's very difficult to say that without evaluating what has gone on that we're going to take action against particular countries on particular products, so -- so i would like to see us work within the rules that by the way we've led for 70 years, whether under democrat or republican administrations, we have been the leaders in developing rule of law governing trade. for us to walk back from that, the largest economy in the world. that is going to hurt us baldelli. >> all right we'll see what comes out of this g-20 summit. david gordon, carla hill, thanks for joining us. >> china is not in the top ten impovertiers of steel. they are number 11 and, still, germany is higher up, canada >> time for a cnbc news update with sue herera. >> here's what's happening at this hour. torrential rains creating a very wet situation in one of new york city's busiest subway stations water gushing from the ceiling of the 42nd street bryant park station. riders are posting these types of videos all over social media. the national weather service says the area could see up to 4 inches of rain today police are looking into what caused an suv to strike a moving freight train in minnesota today. the vehicle's driver and the railroad employee were both airlifted to the hospital, but extent of their injuries is unknown. and authorities are preparing for protests tomorrow over confederate statue displays in charlottesville, virginia a clk group filing permits to hold a rally to argue against removing those statues and costco adding a new item to its food court menu, at least for the time being the bulk retailer is testing organic cheeseburgers made with organic beef and chall buns. guys, back to you. >> i know they are famous for their hot dogs. >> are they? >> you don't strike me as jumbo cheeseburger type. >> i'm actually not. i live in the city i don't go to costco it's a suburban thing. >> one of the issues is next to the costcos especially in the southern california area, there are a lot of in-and-out burgers so southern californians are questioning whether or not this is actually going to be a profitable move. >> now you got her attention. >> there you go. >> you got if. >> 30 minutes to go before the closing bell still looking at a pretty broad-based rally for the market s&p up more than half a percent, discretionary higher and energy is lagging behind. the dow is up 91 points. >> tesla is higher today, but the stock is still down more than 10% just this week alonger and now there's another potential red flag for that stock. we'll have that story coming up. plus, samsung's quarterly profit could be set to top apple's for the first time ever. find out what's behind samsung's big move an whether apple investors should be worried. and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant 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(child giggles) symbicort. breathe better starting within 5 minutes. get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. we have a picture out of hamburg, germany you can see the protesters starting to pick up the pace as we saw yesterday the protests do increase as the sun goes down, and sunset is in about 15 minutes there in hamburg. no doubt we'll start to see that -- interaction between the protesters and the police pick up you already see the water cannons out, and they have fires burning right now. >> this seems to be disruptive it's also affected melania trump's first lady's schedule for the day. i wonder if mayor bill de blasio has made it over yet he was going to be joining the protest in some form. >> shares of tesla moving higher today after having a pretty rough week south australia has picked tesla to install the world's largest grid scale battery this project would be built on a wind farm, and it's designed to have enough storage and power to light up 30,000 homes if there's a blackout now, tesla has a 100-day deadline to deliver on this, and if they don't hit the deadline, the battery is free. just -- it's part of a bet tesla had with the government down there. and in other tesla news, production of the first model 3 car is said to be completed today. the model 3, of course, is the cheapest tesla vehicle comes as new data show registrations of tesla vehicles in california sell by 24% in april year over year california is by far the largest market for the luxury electric carmaker out there that stock has suffered amidst all that news this week. >> clearly it was a tough week for tesla's stock. the stock is still up more than 40% over the last 12 months and continues to be the big battleground between short sellers. more than 20% of the short interest, and a lot of high-profile names against it like chenos and einhorn and true believers in elon musk and i do think it's interesting that tesla was supposed to shine and highlight the model 3 production it, the first time they were going mass market. all of this other bad news seemed town fold that will be the test, analysts say, whether they can pull that off. that's the shorts winning the battle and so far tesla winning the war. >> overall. >> we'll see. heading to the close here with about 24 minutes left in the trading session, the dow is up 92 points, closing out a volatile week with gains after that jobs report came out pretty strong this morning. >> stronger than expected. mondelez the latest company to warn its revenue is actually getting hurt bthy e cyber attacks. up next, we'll look at the cost of the rising attacks and other companies being affected you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. i am a first responder tor and i'emergencies 24 hours a day, everyday of the year. my children and my family are on my mind when i'm working all the time. my neighbors are here, my friends and family live here, so it's important for me to respond as quickly as possible and get the power back on. it's an amazing feeling turning those lights back on. be informed about outages in your area. sign up for outage alerts at pge.com/outagealerts. together, we're building a better california. stocks are bouncing back from a big selloff yesterday here's the s&p sector heat map you've got groups like technology, consumer discretionary and industrials very strong. that's the group that's backing off the stronger job reports higher yields and the stronger dollar confirming that groups in the red include energy, telecom and consumer staples. >> the usual suspects there. the yield play, higher yield. >> telecom can't get out of its own way this week. >> and pretty much the s&p 500 is flat. telecom is the worst performing sector of the week, down 2%. financials are actually the star performers for the week so far. >> higher rates helping. >> yeah. >> mondelez meanwhile says a recent cyber attack is going to cut into its revenue growth for the second quarter mondelez one of the many companies reported being hit by a global ran someware attack back on june 27. a lock now at this example of how cyber attacks did affect a company's bottom line. >> aditi. >> there you go, bill. cyber security experts i've talked to say they only expect these types of attacks to continue and to wreak financial havoc on big-number companies. and part of the reason it's not too difficult or expensive for hackers to get cyber tools to cripple a company's computer network. reports are showing cyber crimes cost u.s. companies an average of more than $15 million per year the hardest hit sectors, financial services, utilities and energy and technology, but industry watchers say no one is safe in the most recent attack mondelez says its second quarter revenue growth would be reduced by 3% because of disruptions to its shipping and invoicing during the last four days of the second quarter mondelez was among the firms in 60 countries affected by therance someware attack officials at shipping giant mersk which was also asked said it's too early to predict the eticket of the attack on their company. other victims of the attack is the maker of lysol warning investors of a 2% sales drop for the quarter because of the attack and drug-maker merck, i reached out to them as well, and a spokeswoman says they don't expect to see an appreciable impact on their second quarter results. back to you guys. >> aditi roy, aditi, thank you. and in terms ever mondelez, shares not a big reaction. the company did confirm its organic revenue forecast for 1%. said it will make most of it back in the current quarter. permanently lost a few sales but this does highlight and there's the stock back up. down a percent this morning. it highlights the growing financial risk, and some of the cyber security stocks today are actually rallying. >> as well they should. >> because they are going to have to spend to fix their systems so that they are not vulnerable to these kind of crippling outages. i tried calling mondelez the day of the hack and you couldn't get through on the phone lines because they were connected through the phone linesp busy signals non-stop. >> we'll find out who is prepared and who is not when more of these attacks happen is it the proverbial line -- >> i guess we'll find out how much more it's costing. >> but you know what, that's a dollar well spent, whatever your spending. >> when they get more security. >> absolutely. >> yeah. >> protests are getting more violent in hamburg, germany. let's go back to eamon javers with the late on the clashes what are you hearing and seeing, eamon? >> reporter: yes, sara, we've been hearing reports of these violent protests all through bought the day here in hamburg it's now getting on towards nighttime here in the city, and we're seeing more video coming in right now, if you can pull that up on the screen. you can see clouds of dark smoke over the city here they have been burning cars other all day. we're seeing a report here that the hamburg police have tweeted in english saying we ask peaceful protesters explicitly to distance themselves from rioters and leave the riot areas immediately. you can see the fires burning there. the police giving a warning here to political protesters saying that you've got to separate yourselves from the rioters because the police need to move in and deal with the rioters in this city. we've heard some complaints from some of the people out there earlier today that we were talking to who wanted to protest, who said that these rioters are giving our cause here a bad name and making it difficult for us to get out any kind of image about our side of the argument on globalization other than this image of violence and destruction and, unfortunately, we're seeing more violence and destruction on our screens here angela merkel condemning the use of any violence at the g-20 summit, anything that risks the lives of police, bystanders is simply unacceptable. that from the german chancellor as she's playing host to all of the world leaders here in town today. they are at symphony hall now. most significant world leaders on planet earth right now are all gathered in the same building at the same time so that's amplifying the security situation here police don't like to see this kind of disturbance when you've got that many powerful and important figures from around the world all in one place at one time we're also told that the police have said that one of their officers was massively attacked and that officer fired a warning shot that we're told is getting big play on german media outlets tonight and according to a second police report, a warning shot was fired by police after they witnessed a robbery earlier today, interfered and then were attacked by the culprits, but those images that you're seeing now are of the trash and debris that some of the rioters have brought and dragged into the street we're told this is not actually very far from where i'm standing right now, and they have been dragging the trash into the street and loyaltying fire to it and causing a disturbance. the police are trying to move in and deal with it some of the flu flashing lights in the background of the shot there, those are the water cannon trucks that the hamburg police officials have been using throughout the day i would imagine in this situation that we're looking at here they will try to deal with the tire yesterday as the police said they saw people setting fires they would move in they need to make sure that they have this situation in hand from a security perspective before they move in with fire officials, a figure of journalists and what i call protest tourists and then you've got a hard car group of people out there and that's who is lighting the fires many so of the folks came up to us today and tried to intimidate us just outside here near the waterfront so there's a group of people out there trying to intimidate, scare, create violence, create mayhem and then just a pupil out there to look and that's why police said you need to separate yourself. if you're a protester who wants to express a political point of view, you need to move away from the rioters because we're going to move in and deal with the situations there. >> all right eamon, thank you we'll be checking back with you. hopefully, thanks don't escalate too much tonight >> you bet. >> a little less than 15 minutes to go before the closing bell. we've got the dow up almost 100 points mostly reaction to that positive jobs report that we saw earlier this morning tech is in the lead. that explains the nasdaq's 2% gain, 1% gain for the small caps, the russell 2000 as well >> look at that. >> yeah. samsung and apple are the leaders in the mobile phone business, but would you believe one is actually helping the other's bottom line? we'll tell you how after the summer. >> and movie season hollywood is looking for its worst box office we'll see which movies can be saved and which ones are hot stocks tickets come up. (upbeat dance music) (bell ringing) your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. welcome back, "spider-man" homecoming officially flying on to the big screens after earning $50 million in the previous shows last night our julia boorstin joins us with more. >> reporter: with the third highest thursday night of the year, "spider-man" homecoming is set to bring in between $85 million and 1 is 10 million this weekend. this reboot has drawn rave reviews of over 90% of critics and audiences saying they liked it, according to rotten tomatoes this the "spider-man" is a rare collaboration between sony and disney's marvelch the last spidey film fell short expectations, sony eager to revive its most valuable franchise asked disney's marvel to produce the film, disney paying $175 million to make it part of the deal, disney gets to bring the popular superhero into its universal films with iron man playing peter parkers's mentor it's in last place with studio market share with only 4% and this movie could further bolster the box office leader which is disney drawing more attention to its "-for-"coming out this fall. the box office is down 9% this summer but if spidey can pack trailers that is means people will see trailers for the other big movies coming up. >> that's how that work. so which other studios stand to win or lose at the box office this summer? joining us for a mid-summer assessmen assessment, paul dergarabadian, what do you think? >> i think it's up to spider-man to weave a web of box office for us this weekend and as julia said with over $100 million expected this weekend, i think this movie can do for early july what "wond woman" did for early june which is get us back on track. 9% down from the summer, hopefully spider-man can get us dead even with last summer as "wond woman" did but we have on the way some really big movies that are well reviewed like "war from planet of the apes" from fox and "dunkirk" from warner brothers we'll see a resurgence in the box office as we go into july. we need a box office superhero, we need him now and that's a good thing. >> she already came a few weeks ago in the form "wond woman. let's talk about stock strategy here which studios do you want to own, if any, on some of the lackluster box office results, or do you want to avoid the group completely >> our call has been the best media stock which of course is cbs which doesn't have a movie studio and one of the reasons we like cbs it because of that fact we've been incredibly bearish in the movie space for a couple of years. budgets are going up and studio profitability shrinking across the industry and with disney increasingly dominating that profitability which is good for disney but for investors expectations are very high. >> doug, it i mean, i saw bit of yeah, their receip-- i say buena vista, their shares are up 20% and why not look to them as a place to invest right now. i realize it's not a pure play, disney in, that regard, but you wouldn't look at them possibly >> well, this -- the increased profitability of disney studios has been a big part of the stock over the years they went from being a $500 million profit contributor to over a $2 million profit contributor. the big question is how much better can it get? over half the industry profitability and while i expect disney's studios to continue to do well, the prospects for them to do better than they are now are pretty low >> last quick question, paul how much longer are we going to be addicted to sequels how much longer do we put up with this? >> well, i think there's an issue with sequels if they don't have the quality i don't think it's an issue of categorization if you have a movie that's really good, i don't care if it has a 5, 6, 7 or 8 after the title, but what we've seen this year is superhero movies have been the bright spot, "logan," "guardians of the galaxy" and "wond woman" and now "spider-man" getting great reviews and all doing well at the box office both in north america and overseas and that's most important because most of these movies, the sequels are very lopsided. 70% to 80% of their box office is coming internationally, and with the well-reviewed films they are doing well in north america, too we'll see that with "spider-man" this weekend and hopefully that will keep going. the quality has to be there. >> that's for sure. >> paul dergarebedian, thanks for all joining us today. >> five minutes to go before the closing bell that means the closing countdown is coming up which is exciting >> yeah. >> nasdaq up 96 points. >> oh, the pressure. after bell, by the way, we'll talk to two ruian pes ssexrt about the meeting of president trump's meeting with russia's vladimir putin and that short handshake coming up. you know what's awesome? 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(upbeat dance music) (dance music abruptly stopping) (dance music starting then stopping) (upbeat dance music) (bell ringing) about 990 seconds left as we head towards the close here. we're tight on time so let me show you all three of the major averages and how they did this week we started the week with a pretty good rally, and we end it, and that means we finish the week virtually unchanged, a little bit higher for the week oil, very different story. continued lower. more supply is just beating this market up. it looked like we might at mid-week be heading back to $50, but that's not the case now. we're at 44.29 yields on the ten-year bund continue higher. think about this last year at this time they were negative, bob pisani two weeks ago the yield on the ten-year bound was at .25. reflation is the word they used. not seeing it in gold as gold is hitting its lowest level in months and the last trade on 100 before gold was beginning of the year. >> big concern is that central banks may not be as accommodative anymore. never mind, they are not actually raising rates except for the fed. that interest rate story was the big one for the week we saw banks rall exand we saw a fairly broad real, bill, besides banks, semiconductors moved up rather nicely, biotech and industrials, big move up in industrials this week despite the fact that ge hit a two-year low. >> free toothpaste for everybody. colgate is bringing "closing bell." stay tunes for the second hour of "closing bell." welcome to the "closing bell." i'm sara eisen in today for kelly evans. bill will be rejoining us in just a moment. a look at how we're finish willing the day up and the week. it was a shortened holiday trading week, and we go out on a positive know. the s&p 500 closing up .6 of 1%. the dow jones industrial average up .1. it was really technology that was the standout sector today. that helped the nasdaq gain a percent. the russell 2000 index of small caps also finishing higher by 1% and besides tech it was consumer discretionary and industrials and real estate that did the best samsung and apple may be competitors in the cell phone space with apple wing the market share there, but the tech giant, we're talking apple, is giving samsung a major boost in profit. we'll have the details of that story coming cup, and -- and we are monitoring the clashes this hour between protests and police in hamburg, germany, right near the site of today's g-20 meeting. we'll bring you the very latest from the scene coming up joining us to talk markets on the panel, cnbc market commentator mike santoli and courtney gibson also joins us, president and head of global equity and fixed income at loop capital. welcome, everybody mike, this was a pretty bumpy week, and when you look all in all the groups that did the best were financials and industrials. >> yeah. >> which is a pretty strong sign even in the face of that global yield rise and some worries about that. >> yes especially the way the week started, sara, definitely this kind of exit from the big growth, is to. technology stocks continued. that seemed like a second quarter story and the backup in yields going on globally, as bill was just talking about, definitely did put the wind behind the financials and some of the cyclical sectors. all that being good, today's relief number was about the jobs number today which show job creation was a little bit better than expect pedestrian on track and you also saw some labor market slack and it was balanced all the central banks talking about tightening that's not happening in the absence of key economic data and the numbers didn't give anybody a reason to say that's going to be even more of a hurry than we thought yesterday. that's why you got that sigh of relief yesterday. >> courtney, it was ray dalio who said the days of easy money are open peter boockvar said that monetary policy no longer a tailwind but a headwind and as mike is suggesting we're seeing that in some of the sectors that are benefitting from a higher rate are you starting to rethink a portfolio? are you readjusting to get ready for the higher rates, or is it too soon >> well, i definitely don't think it's too soon. i think we've known for a while now that rates were going to rise i've said for many, many, many months now that the economy is doing better and the numbers today continue to prove that i think ultimately if you have a portfolio, and at least what our clines do is you maintain and diversity a portfolio and when things are losing a little bit, you add a little bit to it i'm excited about seeing the numbers coming out of the banks next week. we saw what's happened over the past week or so here, and i think, you know, as you get some dips in the market, you pick up and overweight in sectors that you want to be in, and you pull back in those that you think aren't going to do as well in the future, but i think you manage your portfolio very disciplined and in a way that allows you to get the returns that you want over time >> evan, you look scared about the era of the easy money policy. >> you look scared. >> is that looking scared? >> i don't look scared. >> you never look scared. >> no, no, i don't -- you know, i mean, i've been saying the easy money policy was over for about five years now so you -- >> so you were early >> i was very early. you don't -- the answer is nobody really knows. i would say that the great bond route that's happened. the ten-year is still well below 2.50 to 2.40 and the 30 year under 3% no real bond route at the long end of the united states going forward the real question could be around volatility there's been almost no volatility over the past six months or really over the past year and a half. the question is where will that volatility come from my best guess it will come from europe it may come from the central bankers, but it will definitely come probably not from the u.s. >> let's dig deeper into the jobs report that mike mentioned as a catalyst for today's real cnbc's steve liesman joins us with the breakdown steve? >> yeah, this was a solid jobs report, and alade concerns that the job market and the economy were slowing it all seems to be enough to keep the fed on track to raise rates. here's what jorgan said in the comment. the overall takeaway for the growth picture is that the economy seems to have finished the second quarter with decent momentum and fears of a sharp slowing in the third quarter should be mollified by today's report what was in the report, 222,000 jobs, better than the 174,000 expected and you got the may and april revisions up by almost 50,000 jobs. unemployment rate ticking up because there was an influx of workers in the workforce that you can see in the participation rate that was higher where were the jobs? that may have something to do with the why the wages were so muted. leash our and hoppity up 36,000. government, all local up 35,000. construction doing better and temporary help a good sign and retail the first increase in five months, since february. barclay saying the federal believes activity and labor market will lead to higher inflation and this report likely to give comfort that the of coofly continue despite the modest removal of accommodation. the chance of one more hike this yore unchanged at around 50%, so the third hike remains a tossup and that's going to pen additional data. that data, sara, could be better wage or inflation. >> something that certainly the fed is looking for along with everyone else. steve, stay with us as we get the panel to react here. there is a debate, mike, tailed about would we're seeing enough deflation in the economy we got the average hourly earnings numbers higher, not high enough when you're talking about 200,000 plus jobs in this cycle to recover. >> it's been sticky, obviously sticky to low. people talk about the structural factors there, you know, higher wages, old earl people retiring replaced by younger ones by the way, teen employment was a big standout to the upside in this report. they are not going to be driving a lot of average hourly earnings what you can say is weekly earnings are outpacing inflation. so it's -- it's good on the household basis and good for people who are earning the prevailing wage, but, yes, it's not push pentagon inflation. it's just a big question has been are central bankers willing to look beyond the fact that they haven't been able to manage the 2% inflation for a while and, you know, it remains an open question. they are saying that they think it's temporary and we'll see if it acts up. >> courtney then, we're starting to kick this word inflation and reflation around a lot recently after mario draghi said what he said a couple of weeks ago are you ready to step into some of those inflation-sensitive areas like the energy stocks that have suffered so much recently i know you're talking diversified portfolios right now, but would those be better opportunities at these levels here, do you think >> you know, it's funny. if i could time the market i wouldn't be able to sit here and talk to you, bill. i've been buying some energy and been buying some energy. i think it is low. once we get oil over $50 a barrel we'll start to see a significant rally there, but you know it's interesting with the jobs numbers and everything coming out and as you mentioned kind of wage growth being the challenge, we have more people working. with more people working, more people can spend money, and so i think we need to really start thinking about the fact that this economy is doing better and how is it that we play the market in order to capitalize and continue to monetize on that growth because it is growth that we're seeing in the market it's not a debate anymore. >> when i find so interesting is what steve touched on earlier which is that even though we just had a jobs number that came out of 220,000 new jobs and the jobs numbers all year have been plus or minus pretty good, that there's still only a 50% chance of the fed raising rates again this year which is -- which is astonishing, and i'd be curious to get steve's view on why the market is discounting it that much. >> you know, i think because it was a really sort of chill jobs report if it was going to be strong, it had a lot of things in it that were not inflationary, that 0.2% on wage growth the idea that we keep bringing in workers and we don't get this sort of sense of a tight supply which would happen in the higher wages, and plus you have people come into the workforce and then the inflation numbers have really been squirrely. i think we're all kind of rethinking the inflation dynamic here, that maybe this jobs market has had a little bit further to run, and plus, you know, the other thing that's interesting is the market has been dialing out the chance of any stimulus this year it's really the stimulus question that becomes the inflationary question. if you have a massive tax cut into full employment or a massive infrastructure spending bill into full employment, that's going to raise the hackles of the fed on inflation, and then cause the market to be concerned about the potential of a policy mistake by the fed. but this number 2.20, 2.40, i think it's all okay here. >> i also have a sense and maybe steve has a view on this, too, the fact that we're invoking the likelihood that we aring this to start to wind down the balance sheet towards the end of the year or at least have a plan that's mudying up what the markets think the feds might do on the rate hike side. it's sort of a wait and see. maybe the fed is going to view that balance sheet action in lieu of one or two hikes down the road >> you know, mike, i don't think so i think the market is pretty clear here on this idea, that there's going to be this other rate hike, 50-50 call it if the wage data inprove and you'll get the balance sheet reduction, but the balance sheet reduction is so benign, right, and there's essentially a put in this. if the market gets upset about balance sheet reductions, the fed kind of told us we may ease off this just a little bit it's going to be on this autopilot, but this very, very slow rising thing, and eventually gets up to real money but not at the outset. >> hey, courtney, would you buy any bonds here in that diversified portfolio? >> you're so funny, bill of course you have bonds in your portfolio. >> right, right, right. >> but it's an interesting time right now and it's where are you buying bonds in this market. i think there are some interesting places that you can buy. you look what's going on with munis and we were talking about pension plans with connecticut and illinois a little while ago. there were some interesting opportunities to garner some yield there, and it's just a matter of where you're buying and why you're buying, and so i think it's -- you know, whether you're getting in on the high yield end or whether you're still buying investment grade companies that you want to use to balance out the portfolios, but there is an opportunity there, and, you know, steve, i 1,000% kind agree with your assessment are where the market is going i think that balance sheet winddown is going to be what it's going to be the rate hikes, i think we do see another one towards the tail end of the year here and i think the fed is doing a great job of being transparent and clear around the direction that they are going and it's up to the market to decide that they are actually going to listen. >> so, steve, not to -- not to be a debbie downer here, but clearly this was a good number and a lot of people are going into it thinking that we've peaked on job growth and that was a little premature is this sustainable? >> >> reporter: >> if you look at some of the internals, you look at age kids age 16 through 19, job surge of 200,000, so that's summer hiring there's some seasonal quirks in this number that we haven't been talking about. >> you had to bounce back from a weaker may i think that's pretty clear here, and i think that some of this sort of specific data you want to take over a series of a couple of months and not dig down too deep on a single month. listen, here's the thing the job growth in this country should be, if we're at or near full employment, somewhere between, i don't know, call it 100,000 to 150,000 200,000 is not sustainable and won't be the case, and i think it's going to be interesting to see the market and the body politic get used to what should be the sustainable rate of employment in this country given the demographic growth, and you're just going to have to ratchet down the expectations. 200,000 is pretty hot for this market and this dynamic. >> i mean, you know, the average so far this year is 180,000 monthly. last year it was 187,000 you know, we're just kind of chugging along here sluggishly but we're not doing badly thoughing right? >> in years past, remember the boom times >> what was the aberration the boom times or now? >> i agree that there is no particularly hot sector. there's no sector where wages are suddenly growing exponentially like there was in the mining and say, you know, oil and gas sector back in 2004 and 2005 and 2006. the finance sector, salaries, bonuses, they are being compressed down. >> right. >> there's no area that you can point to and go this is where you'll get all the wage growth from. >> i think that's because a lot of wages are arbitraged by foreign competition. i think that's something that keeps a lid on prices. in the oil and gas -- in nearly every sector, the only thing is you have places where there are shortages where you have labor shortages where you have the strong wage growth. >> and that's in construction, by the way that's the most consistent area where you can't find people. >> we'll leave it there. good discussion going internal on the jobs report. >> have a great weekend, everybody. >> you, too. courtney, our thanks to you as well nice to see you. >> thanks, courtney. >> thanks, everything. delight the. that's how russian leader vladimir putin described his feelings when he met president trump at the g-20 meeting earlier today. how does everyone else feel? we'll talk to two russian experts coming up. >> maybe not so delighted. >> maybe. >> and samsung expects its profits to rise 72% to more than $12 billion and samsung actually has apple to thank, at least in part u''ll explain that coming up yore watching klebl on cnbc first in business worldwide. the new guy? what new guy? i hired some help. he really knows his wine. this is the new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad. what do you think? for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ oh >> well, it was only supposed to last about 45 minutes but the meeting in hamburg, germany between president trump and russian president vladimir putin lasted more than two hours for more on what they talked about let's go to hamburg and cnbc's eamon javers. eamon? >> reporter: yeah, hi, sara, you're right it was a long meeting between the two world leaders today and we're getting information about what was discussed remember, only six people were in the room, but from the u.s. side we've gotten bullet points of some of the talking points that were exchanged between the two world leaders, including the u.s.-russia relationship going forward. secretary of state rex tillerson staying that they didn't want to spend very much time dwelling in the past in fact, they wanted to talk about the relationship from here forward. they also talked about russian interference in the 2016 election, the syria cease-fire which is agreed to in southwestern syria starting this weekend with the u.s., russia and jordan all participating in those talks. also discussed were the north korea threat and what they called cyber crimes, so something of a mixed message coming here from the trump administration with the president himself yesterday saying that he wasn't sure exactly who hacked the u.s. election or who interfered in the u.s. election last year. could have been many countries he believes russia may have been one of them, but it could have been other countries as well today though secretary of state rex tillerson saying that in fact the president did bring up concern with vladimir putin about the attack in the u.s. election last year and rex tillerson offering some details about the fact that this meeting went so long, as you mentioned, sarah, saying it went much longer than planned. in fact, some aides devised a way to try to bring it to a stop once they realized how long it was going. here's how tillerson described how that went down earlier today. >> i think there was just such a level of engagement and exchange neither one of them wanted to stop several times i -- i had to remind the president, people were sticking their heads in the door and they sent in the first lady at one point to see if she could get us out of there and that didn't work either. >> so we've all been in those cocktail parties where our spouse needs to come in and rescues us maybe some of that dynamic playing out between the two world leaders but clearly the president wanted to stay in those conversations depending on what was being discussed should find out a little bit more had a little bit of disagreement between the u.s. side and the russian side on the way out of the meet begun what exactly the president said to vladimir putin when putin denied the fact that the russians had been involved in the u.s. election last year, so some diplomatic squabbling here, but for the most part both sides took pains to say it was a successful meeting guys >> eamon, thanks very much very savvy on vladimir putin's part we're told that he said if we intervened in the election or meddled, show us the evidence of that well, you can't do that because that gives away our trade secrets and where our spies are to know that, so you can't do that anyway, more on what the meeting between the two leaders of the u.s. and russia means for our relationship going forward joining us rights now -- what's that >> i think we want to hit -- >> before we get to that meeting. eamon, tell us more. it's now darkness has set in there in hamburg what do the protests look like are they escalating like they did yesterday? >> yeah, they are, bill and you make a good point. it's after 10:00 p.m. here in hamburg, and we're in northern germany so it's just starting to fully be dark outside just now as you can see from some of the pictures, the protesters an rioters have set fires in the streets here this is in the secretary of hamburg that's not very far from where i'm standing here. police and authorities have been dealing with this all throughout day. we're told there have been very significant clashes between police and rioters police have been sending messages to the rioters -- to the protesters saying we need legitimate protesters to separate themselves from the rioters here if you're out there expressing a political view, if you're out there exercising your freedom of speech here in germany we need you to move away from the rioters so we can move in and deal with the rioting group which is a small core group, but there are people who are determined to cause mayhem and harm we dealt with some of those on the street earlier today that's why we're here inside the hotel and knots not back out on the street where all of that is happening. >> just a little more color on place you mentioned. it's the entertainment district. >> you're being very polite, sara. >> you can call it the red light district. >> a lot of red lights. >> we went by there earlier today. it is -- they are socially generous there definitely engaging in capitalism i'll put it the that way. >> i'll ask you more about the location so hamburg, i believe, is the hometown of german chancellor angela merkel, and -- and i'm just wondering what these people want, if this is something that was local or if -- if people were coming from all over the world. >> these are definitely protesters who have come from all over the country, certainly most likely all over europe and we've seen a lot of the protesters today marching with signs in english, definitely trying to attract the attention of the global media. this is a broad coalition of groups here. there's hard core anarchists in this group hamburg has a long tradition of anarchists groups operating here, but there's also some anti-capitalists, people flying the old-fashioned soviet hammer and sickle logo and people with the anarchy banner you remember when the punk movies in the '80s, that sort of thing a broad coalition. mostly anti-globalist asts anti-capitalists and some of the protesters we talked to today were lasting the fact that the violent actors here were causing all the trouble here hand distracting with these images that we're looking at now, distracting from the legitimate political message that people in that protest group said that they wanted to get out today they are worried that these images will drown out their objections to globalization, to capitalism, et cetera, and they are probably right about that. i mean, the media will go to where some of the most violent action is and cover it >> you know what's interesting is with this g-20 summit you have at least one leader in the meeting who is an anti-globalist, right? >> are you talking about bill de blasio. >> who knows where he is. >> he's there. >> i know. >> i was just going to say that the other common point here between the president and some of the folks in the protests who were yelling obscenities at us on the streets in german, a lot of the anti-globalists don't like the media either so there there's maybe common ground that they can find on not liking the media. a lot of the anarchists that we dealt with today were very skeptical that the media would cover them in a fair way and the president has been vigorous in expressing his view that the media is not covering him in a fair way either so maybe some common ground there. >> thanks, eamon we should note i've been to a few g-20s, always demonstrators on the sidelines but this is obviously more intense which is why we're showing. it doesn't usually get top billing like this. >> yeah. more on what the poutin-trump meeting may mean for relationship and bring in our friend who is with the new school she's in moscow. so we've got a very long audio delay from moscow, so we'll have to be patient when we hear from nina, and olga is with the center for strategic and international studies. no audio delay there as well ladies, thanks for joining us today. olga, you know, the two leaders said they wanted to focus not so much on the past but look to the future and the relationship between our two countries. what do you think that's going to look like >> well, i think it's going to look a lot like revisiting the past and one is for two reasons. this is the third president in a row that wants to get off to a better start with russia and secondly, the approximate we've got are caused by actions of the past, so you don't solve or make any problems on you'll crane without being aware of what happened in ukraine so this idea that you can start forward from a blank slate. it's a lovely idea but it's not really helpful in policy work. >> nina, what is your takeaway from the meeting and the body language between trump an putin and some of the loudy language of others that was discussed >> i think the body language was particularly interesting because we saw donald trump really to very vigorously shake with his hand he actually took him with both hands and then he pat him on the back, and when there was a moment when it was open to the media and so we saw a meeting, they are sitting together with their legs spread, by the way, which is sort of a very macho sign for both leaders. it was interesting that trump also had his hands kind of put together in a sense. he did so many to be the execs appearanced person in that conversation, mostly because he is less experienced and his body language did suggest it but it does seem that the meeting went very well, probably contrary to the hopes for many because it did last for over two hours. they couldn't -- they couldn't end it melania trump came in, and i thought it was really interesting. they actually had a different account of the alleged or probably not so alleged hockey trump accepted putin's explanation, that trump was very kwirm. i expect the russian hacking and cyber security, and they stepped over it and they are going to go into the future. >> nina, i'm curious how is this playing until russian media? what kind of coverage is it getting, and what's the interpretation there, bearing in mind that we're talking about russian media? >> well, it's, yes, russian media. well, it does seem like it's an absolute win for putin the way it's being portrayed in fact, tillerson comments -- i had to read to know what he said in the western press rather than the russian press. the russian president cited lavrov in sort of the comments that trump made. rush can't interfere and some members really waned to take -- sort of shut a bad late on it seems for the first time russia almost fully achieved his goal of many years and particularly the last few years when he wanted to appear a very important global power player, and it does seem that with donald trump he really got his because got a meet being the meet being was over four hours hand they agreement on fur different issues >> evan? >> olga, it's evan newmark what's interesting is almost the complete absence of commercial or economic discussions at the meeting between putin and trump. how is putin dealing with the low oil prices, and what does that mean for his relative negotiating position given that kind of the economic situation in russia hats not been particularly good lately >> so, oil prices aren't that were at the heights but higher than the russian assumed for purposes of what happens next. you talk about the russian economy, it's not in tatters, it's in recession, you know, bordering on stagnation but that's not that nato official you know, i think that these are one of these myths, that russian economic failures are trying bomb into street al pill -- a little bit of belt tightening is not that foreign to washington. >> her time has extired and i want go back to her. i was told they were going to go out of 30. i guess i was misnord. do you agree with with olga's assessment that vladimir putin is getting what he wants in terms of being season. >> i think absolutely pun. to him he wednesday to be seen if not an equal with the u.s. president and something very close to that and meetings like this do feed into that i would also point out that almost everything that was agreed that i had, it was prerecorded. >> the new raps for sacks on you crane -- we know that that was in the works tants so we also have to recognize that this meeting was prepped wetty prell. >> okay. now i know nina is out of the picture an olga thank both a great it very much. >> working international all the way to sue herera in new jersey. >> thanks, guys. fire officials are trying to prevent a very large crane from collapsing in oakland, california it was badly damaged during that fire this morning. it was an inferno at a building under construction no injuries reported, and that cause of fire is under investigation. an evacuation of 10,000 people have been ordered in eastern poland it comes after a massive world war ii german bomb was found yesterday. authorities are working to safely remove and death tate interest. a prisoner is on run, and he's back in custody now in south carolina after escaping a sec time from maxual security princeons. authorities say 46-year-old jimmy causey used wirecutters in his latest escape that was most likely drop by a drone he's serving a life sentence for kidnapping. vice president heat getting some heat today over at the kennedy spacer in the. he touched a piece offim at all do not touch he towed it and it sparks this tweet. sorry, @mariorubio made me do it oh, okay this isn't exactly the first time that this had happened. halls a very good against of you'llor no cord on -- >> apparently not good at following directions. >> the world's largest super-maker is getting a little bit bigger campbell's soup making a deal to get into the organic soup space. we'll serve up the full details on that one next. >> yes, we will, and as we usually do on a jobs friday, we'll take you to where the jobs are, and tay hod'sot sector has an international player to it. that's coming up on kwebl. i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. . is it time for a fast take already? hey, campbell's soup saying it will be acquiring pacific foods for $700 million campbell says the deal with the natural foods company will accelerate their efforts to meet consumers and changing tastes and preferences. sara >> which is clearly part of a big trend that's been going on in the package food business which has struggled to find volume and sales growth. my fast take on this, guys, and it's not funny, is that the amazon whole foods deal speeds up these kind of deals because this is a big customer and a potential customer for campbell's soups that's not selling campbell's soup in whole foods so now this is going to be the big future of grocery or online grocery. this is a way to get inside of those stores, and i -- and i wouldn't be surprised to see more of these deals. we've been seeing them for the past few years heading into another period of lower volume and sales growth for these companies. watch out for any sort hockey stick kind of sales, organic, natural plant-based company to get sold. >> which does bring up the possibility. everybody knows the big package food companies are buyers, so will they serially overpay for this stuff >> they might. this company has over $200 million in sales they are paying up not a lot of options one remaining public company did rise today but they have a ton of different brands. speaking of food, blue apron delivers meals ready to cook to customers' doors but its stock is not delivering returns for investors this week. take a look, down more than 17%. >> ouch. >> do you think this is a warning sign for other companies that are looking to go public. >> i think there's a layer of suspicion here this was clear that this deal, this ipo was more sold than bought lowered the price at the bottom of the range and held it up for one day and it fell right apart from there and there's doubts about the business model not so much anything beyond that that's extrapolatable. >> certainly a big business model issue. the question that this really raises is the old ipo model of businesses where there were question marks over the business model. years ago, you know, the zing arks of the world, pandora, zip car, we don't care about the business model and we'll buy it in in case this one they bought and they suddenly got there's really no business. >> some would also argue they waited too long. in an earlier stage with revenue they might have been given the benefit of the doubt. >> the poem know too much. >> amazon and whole foods. >> not to disagree with you, and i've heard so many trends predicted from the amazon/whole foods. >> everything at an inflection point. >> everything but the curvey cancer going to happen. >> i don't know, if they get in the drug business. >> just imagine when they come out with their actual plan for whole foods. >> they have to consummate the deal first sears announcing they will be closing eight sears and kmart stores that are unprofitable the company will continue to focus on its best stores he's imploding here. he was the greatest involvementor of his generation and has turned into the worst retailer of his generation he'll go down as the single worse retailer. >> and i'll make the charge that he didn't even try to make a g as the retailer. kmart that there's just way too many of. >> it's a real estate story is what it is. >> kmart real estate is not really worst much. if you're an anchor sears store in a good mall, it's worth something. >> go back to '06-'07 as this guy is getting to turn sears to the next berkshire hathaway. i don't think he quite did it. >> still waiting. today's tech leader can be tomorrow's tech loser. that was certainly the case for jawbone, the fitness tracking and speaker company which is now licktating its assets. coming up a look at why jawbone can be a cautionary tales for other companies. >> samsung's apple iphone and one is actually helping them make money and plenty of it. that's coming up next. yeah. like changing up the celebrity at the end to someone more handsome. and talented. really. and british. switch from cable to directv. get 4 rooms with hd, dvr, and every box included for $25 a month. at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. by the way, samsung announced preliminary quarterly earnings earlier today, and those numbers are indicating that the company could top apple in operating profit for the same period samsung's guidance shows that $12 billion while estimates for apple are just over $10 billion. >> what's interesting to note here is that samsung is actually a big apple supplier is it apple that's actually making samsung richer? let's ask our guest from mashable how big of a business for samsung is applying apple parts? >> a very big business when you look at samsung's earnings quarter over quarter, their phone and mobile tablet business has been flat component business continues to grow, and that is because they are selling a lot of components. in particular memory dvr 4 r.a.m. is in so many smartphones and computers. apple is selling right into that. >> now we're hearing that samsung, that the new iphone is going to have an oled screen and guess who makes that. >> this is a smart business to be in making the parts for the phones that everybody wants, now that people don't want samsung phones, but they went through a bumpy time with the note 7 meanwhile, a i will is selling tens of millions and in the fall we'll have and all systems with samsung hardware inside of of it and apple will say they never take anything off the shelf. they like to have it altered, updated specific to their need, but samsung is still going to get paid. >> it reminds me -- starting to think of an analogy to me it's little "big bang theory" is on cbs created by warner brothers studios kind of competitors and also suppliers. some of them when ericsson made hand sets back in the 1990s. they had to back away and they kind of made the infrastructure. is this sustainable forever or ultimately does samsung kind of back off from the actual smartphone business? >> i don't think -- samsung shows no signs of backing away from this business they are continuing to -- we know that it may be coming as soon as august they learned a lot of lessons from the note 7. they are very aggressive on this they are also, by the way, leaving on some design features. when you see a curved screen on samsung galaxy s-8 and see something similar on the iphone 8, samsung is influencing them it's a two-horse race, apple and samsung in the mobile area, so they won't give up on that, but that business gets funded by the component business which has just been quarter over quarter a great business for them. that will not change. >> what do they make components for besides apple and themselves >> google, if you talk about hgc, if you talk about basically any smartphone that's out there, samsung probably has a part in it other manufacturers are involved i mean, by the way, we know that qualcomm has a part in the iphone, you know, and sometimes that doesn't always go so smoothly. >> when you're a competitor and supplier, that's like having the fox in the hen house, isn't it you're giving away your trade secrets here. >> apple and samsung have such a fascinating relationship we know that there have been lawsuits, you know, about ip, where they say you copied us meanwhile, they continue to do good business with each other. it's almost like they have found a way to have the squabbles on the one side while not slowing down and in particular apple not slowing anything down to get the product out there that consumers want. >> lance, thank you for coming by it is an interesting story with a good headline. >> a pleasure. >> making apple richer as a competitor. >> you ready here we go. >> you want to do that again >> want to do it again. >> you know what it means? >> do you speak chinese? >> there you go. >> if you do, you could be in high demand as a translator, and we'll to you where the jobs are, and there's plenty of them coming up. >> objection but, first, jawbone is set to liquidate its assets leaving hribal fitbit in the game what the may have kept jawbone afloat and why lyft might want to listen up that's next. ♪ and let me play (bell ring) your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. fit bit traded slightly higher today even as rival job own is set to liquidate its assets leslie joins us with a look at whether job own could have avoided liquiduation >> the simple answer is oftentimes, it often does, they need to go public first. remember, at one point, jawbone was valued at $3 billion fit bit far less than that before it went public and today, fitbit is worth about $1.2 billion, but unlike jawbone, it's still in business for thousand there are countless examples that show a similar phenomenon where there are two start ups in the same niche disruptive business there's also a so-called first mover advantage of going public first. it becomes a lot more challenging for that second company to then get out. a lot of people also refer to box and drop boxes are two other examples box went public two and a half years ago and why drop box is rumored to be gearing up, it's unclear when that will be and whether it will be at its $10 billion evaluation from the private market it's not always the case though that a second misses out many experts six years ago were worried that facebook would miss out op the first mover advantage once its rival linked in went public that wasn't necessarily the case still, the potential benefits have advisers pushing that company to go out before uber i'm told guys >> it's an interesting take because fitbit as a public company hasn't done that well and the stock is down 15% over the past year. i was wondering if this was more a category weakness on wear b technology >> they can tap the capital markets and it's hard to discount the publicity event that comes with going public especially if you were the first one in one of those niche spaces it doesn't mean you'll survive forever. >> there's a certain discipline that comes with a publicly traded company that doesn't happen when you're private >> you're forced to find a way and monotize or have some acquire you. to go that direction if you were forced, but on the other hand for the system as a a whole, i think this is how it's supposed to work 5 or $600 million was put in didn't work out. venture guys lost out and the world didn't need this company that's one way of looking at it. >> that's a good point, too. fitbit's valuation has been cut in half. the type has largely depended on what the version is, so yes, you may survive longer, but if their valuation is getting cut in a public market, then the private company will suffer as a result. >> a lot is just a feature of the fact that for the past decade, private market valuations have been comparable with public so there hasn't been the need like there was ten or 20 years ago to go public quickly. that's what's strange about this you know, in the saying that i often hear from father, you waited too long. waited too long. >> all right leslie, good to see you. thanks for stopping by you have a knack for languages like she does? >> i'm getting great reviews on twirt. high demand for translators out there. while the schedule is flexible, the job can be demanding we'll take a look at the day in the life of a translator >> and coming u up on "fast money," the technician who called the sell off in tesla, will tell ushe h wree sees the stock going next after a brutal week as the world gets smaller, more companies are seeking translators. kate rogers has a look at the day in the life of a freelance translator and what needs to be done to be successful. kate >> that's right. the job is about much more than just speaking multiple languages. it requires true skill, dedication and consistent learning the number of people working in the industry has doubled in recent years, so if you're willing to put in that work, you're going to have a lot of job opportunities in the years to come. uta grew up fascinating by foreign languages and decided in high school she wanted to work in translation services. >> i'm a complete word nerd. i'm a language enthusiast and i realize back then that i wanted to learn the english language. the nuts and bolts of o it and i wanted to learn it to almost to perfection, if that's even possible >> nearly three decades later, she's still at it, translating english into german for automotive, medical, electronics and tech companies >> the variety is tremendous in this field >> as a certified translator with the american translators association, she maintains credentials by attending conferences oond kopting her education. she can also set her own rates and manage her schedule. >> if you have the specialization, training and ek appearance, it is a demand for highly trained translators >> but the work can be challenge. >> it is not always very easy to satisfy the really high demand when it comes to quality in the shortest time possible everything now is delivered faster and faster and faster >> the best part about the job is of course the ability to set her own rates and determine her own schedule, which is nice. the ata says salaries are really competitive and if you're highly skilled in a difficult language that makes six figures is not out of the question, guys. back to you. >> all right kate, thank you very much. you want to do that again? ♪ i learned it just for this segment. >> starting to sound like olivia newton john. >> you have to sing it >> really hard to be a translator my russian was good. i lived in moscow for a number of years she was probably a native german speaker. >> now, you have to say something in russian >> i don't want to -- i was going to say something about putin and trump, but then i thought better >> probably a good idea. i'll just say -- >> counterintuitive given the fact that we have these programs and you would think it's something that's going b to be displaced. >> i think we would be good translators. get used to having somebody talk in your ear the whole time you're try iing to make sentenc. >> that was a good story because i've seen it at the u.n. they sit in these little boxes on top of the floor in these 1920s kind of radio. >> your language has to be pretty good and the problem is a lot of that translation stuff, that's going the way of machine learning that stuff's going to be gone. >> we got to go, too, guys thank you, have a great weekend. >> thank you >> that does it for "closing bell." "fast money" begins now. have a good weekend, everybody "fast money" starts right now. live from the nasdaq market side overlooking new york's time square i'm michelle caruso-cabrera in for melissa lee. our traders on deck -- tonight on fast, amazon takeover rages on there's a new report that says the number of prime numbers in the u.s. is surging, but how real are those we'll break it down with skeptics, plus, metals gone wild gold, silver copper getting crushed, but traders think the bottom might be in we'll explain then later, nap chat hovering on its ipo price, but investors are working on a key

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