Plus shares of nike can climbing 6 . New science of a coming trade war. The Trump Administration reportedly near imposing new tar rifs of steel imports. Well dig into the story and the Market Movers on it. As we head into the final trading day of the month the dow and s p each on track for a 7th consecutive positive quarter nasdaq the best performer despite weakness in june also up some 14 that compares to 7 in the s p. 7. 7 for the dow. Its going to be the worse since 2010. 2010. How about that and a lot of it came recently. This week the dollar is down 2 and that was largely driven by the euro shooting higher theres this narrative that the rest of the world is coordinating and i mean the world Central Banks. The ecb, the bank of england, maybe the bank of japan but theyre coordinating the begins of an exit from super easy monetary policy. There was a lot of Central Bank Speak and that is what is being attributed to this rise in global yields that we have seen. Ten year treasury yield from 213 to 227 today and thats created some jitters in equity markets as well and its also hammered the u. S. Dollar. It created this catalyst to have the winners get sold and its a little bit of an unwind of some of the comfortable trades out there and yesterday the Big Bank Stocks and big tech stocks acted like bond surrogate which is is not strictly true. But because youre talking about a stable business, very, very longterm stream of earnings the Interest Rate you have today is how you discount those earnings and seems like they act that way. It created an opportunity or trigger to have a bit of a convergence back from the big performance gap you have. Nasdaq below the 50 day for the first time the xlk breaks its 50 day lower than the july 12th lows so a pattern of lower lows so how much is that a concern from a chart standpoint its a concern. Its the nasdaq 100 down about 5 the s p hasnt had a 5 pull back since october you would think at some point you would be overdue for Something Like that and some of the semiconductors they have given up a fair bit of their gains and its interesting, if you look at the dow performers year to date, techs have been the biggest winner as a sector this year with 5 of the 5 worst dow stocks its new tech or platform tech or secular growth tech growth is the keyword. Its not about the cycle. Its about the magic of the network. Theres so many others. I was having this conversation yesterday in terms of media. Media which took no growth at all. You look at the top line of somebody in the Big Media Companies wrote what they could manage and yet i was like but theres two huge Media Companies called facebook and google and they have grown quite quickly. Although viacom, one of the worst for the quarter, along with its interesting, you have media in there, foot locker is the worst for the quarter and then we know what oil has been through for the first half. Energy, lots of retail. Are Energy Factors big . Yeah. Exactly. So the trends for the quarter here have to some degree been reversed in the last week or so. The do you think well say this was the week the market came to regime policy in. The question is are conditions going to allow for that michael is a strategist today and had an interesting point which basically says Central Banks want to make wall street poorer you have this huge wealth gap and they want to get the markets back on their heels and essentially pressure these deflation nary type trades they get bullied into easier policy the condition question is right. This is the preferred inflation gauge falling 0. 1 month over month. Year over year 1. 4 slowest since november moderating inflation goes against the Federal Reserve trying to shrink the Balance Sheet, ramp up Interest Rates in any aggressive way if thats really what the world Central Banks want to do. Its aspirational they want to get to that point but even if they dont, even if its not a huge assault on Financial Markets and draining of liquidity is that perfect for the nasdaq they want to push against an overconfidence of the markets. We got this figured out. One factor is nicely. Better than respected quarterly results. Its launching a program to sell products on on it. Were executing a new pilot with amazon with a limited assortment as we do with all of our partners were looking for ways to improve the nike Consumer Experience by elevating the way the brand is presented and increasing the quality of product story telling. Were in the early stages but we really look forward to evaluating the result of the pilot. The important word there, he didnt give that much in terms of details as to what the product assortment is going to look like on amazon. Direct partnership with nike highly anticipated but they emphasize its going to be limited in scale and in roll out and theyre just going to test it so for analysts this morning its hard to model a revenue boost but they do see it as a longterm positive and also as a sign that nike can transform with the time and we got that in the new announcement where theyre going to focus on to consumer and key cities. This company is transitioning to where the consumer is going and they underscored that with the numbers yesterday. 35 of nike revenues are direct to consumer. Thats nike. Com or nike stores but its driving 75 of the growth right now emerging markets up 20 or so. Margins were down though. Theyre trying to get their inventory in control a little bit. Theyre facing stiff competition. Nike talks about the promotional environment in north america but thats the most important market for this company the offset is helpful but thats something theyll have to turn around they did talk about innovation thats going to be the driver if they do want to turn around north america. Basketball is back that was important for people to see and, you know, the amazon deal. The guidance for fiscal 18 is a little bit back half load. I just find the market response intere interesting. Everyone was flinching in advance of what they thought was going to be the worst report they sell jor dance on amazon that would be interesting. Which they would not commit to there was a question on the call and they didnt mention that one but jordan brand is doing well they have high hopes there was so much run way internationally and through apparel that they havent scratched the surface. The valuation has a planned to it mike. It has been deep relative to other companies and nikes valuation because there have been a lot of doubts and now that they set a longterm trajectory. Its a 21 times forward multiple its a premium but not a premium at where they have historically traded. Wheres under armour . It was a little bit stretched out. The president prefires meet his south korean counter part in the white house this Morning Health reform on the president s mind although aman is tweeting again. Good morning to you. Good morning. A lot to bring you up to speed on include on the trade front. The new Media Publication reporting today that the white house is leaning toward 20 tariffs on steel that they say comes from a meeting here at the white house on monday. I just talked to two officials here at the white house that are pouring some cold water on that report suggesting that its not clear yet where the president is going to land on tariffs so i think its maybe a little early to say that we know for sure where that fight is going toend up we know there are two factions here inside the white house on tariffs and protectionism more broadly. On health care the president also tweeting this morning putting up a new proposal. The idea that they could simply vote on capitol hill not to repeal and replace but just simply to repeal obamacare now and then replace it at some later date i just talked to Kelly Ann Conway about that idea and she said the specifics are not entirely worked out yet. I asked her if that would violate the president s promise to keep the more popular elements of obamacare including that you can keep kids on the plan until age 26 and preexisting coverage bock blocked by Insurance Companies they havent worked out the specifics of that but theres Republican Sen tors on the hill that are supportive of repealing and then replacing at a later point and then on politics we saw the president tweet yesterday about morning joe host get a lot of attention i asked Kellyanne Conway if that hurts the president in terms of his legislative agenda on capitol hill she said that doesnt matter it doesnt matter what the president says on the tweets because the media would have been covering russia anyway so doesnt change the media lenses here and then we saw the president with a new tweet about morning josing that he actually watched the program this morning and he doesnt like what he sees effectively. So this is a lot going on at the white house here. So many things dont seem to get the attention of wall street but this trade issue does. Whats the next step in terms of getting a sense as to they havent reported where most of the cabinets say dont do it whats the next step here . The next step for me is to go back inside the building and find out more about it the folks are very good. A lot of those reporter versus good sources and theyre very plugged in but the two officials i talked in are pouring cold water on that particular report saying its not clear where the president is going to land in terms of tariffs if youre wall street and looking at this you might not want to react with certainty here that this is a done deal. You might want to suggest the needle on probabilities might be moving but i dont think we can say for sure where the president is going to land on this because theres internal tension in the white house between globalist faction and protectionist faction. We think we know where the president s weather mane goes on those issue. Were going to look at sectors highly concentrated in steel. Talk to you soon going to be a busy day in washington when we come back, his take on the markets as we wrap up the month, the quarter and the half. Taking a look at the premarket he did warn us about dwindling population on tragd desks over the holiday. What that would mean for volatility well see if we get a repeat when we come back. What happened yesterday was right after the opening bell, someone showed up when they went into near free fall. I think after searching around what it may have been is two or three automatted programs begin to compete with each other and one in front of the other they turn more aggressive but not having fully staffed then lead to more volatility we could be subject to it today. Were starting with the dow and s p looking for the opening but nasdaq looks far more neutral where it was idea so keep your eye on that and see how the techs hold up. The fang stocks, the big nasdaq 100 stocks are going down the way they went up which is in lock step. Similar percentage moves on a daily basis and then it seems like a bit of a reallocation so therefore the pressure on the broad indexes. No, youre right. A lot of people did try to make it a rotation but you, into energy and its up 1 10th of we had these reports that the president is considering steal tariffs. What is your sense as to whether its playing in at all to some of the jitters they have been giving them a little bit of latitude here. We havent gotten anything at all. We havent even come close to it if he were to suddenly slap on tariffs youll see a major shutter go through the market here people worry about trade wars and where were going from there. Well wait and see as we said yesterday the early part of july has a history of being lateral moves it would be okay to consolidate. All right thanks. Coming up well tell you why warren buffet and Berkshire Hathaway is now bank of americas biggest shareholder. Take another look at futures plus ten minutes to go before the opening bell looks like markets indicated to open higher at least the dow and the s p still some pressure on the tech heavy nasdaq down four on what is set to be a down week for stocks more squawk on the street straight ahead. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. In august of 2011. Virtual pay just about 7. 14 a share for the common and based just on the common stock price thats an instant profit of about 240 or very quick 12 billion if you wait a few years. Yeah we talked about the fact that only warren, i can use his first name, gets those kind of deals. The deals he got when youre not just looking for the money but youre looking for the endorsement thats so important and the confidence thats what he gave them in 2011 when he did that deal. He did similar deals during the crisis i remember with goldman sax and ge terms that no one else could get period. Whats interesting about this b of a deal in 2011 if you look back at his comments at the time it wasnt strictly like goldman and dprks e where there was a run on the bank and you needed capital and you needed to show you could get capital. He said it was a good investment the stock was down and i called the ceo and said i want to invest and thats the deal he managed to get anybody else calls and he might say were listed on the new york stock exchange. Feel free buy our bonds. B of a does have a statement this morning we appreciate buffets continued support. We welcome his decision. Well get to the opening bell in st f mut ju aewines im here at the Td Ameritrade trader offices. Ju aewines steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Live from the Financial Capital of the world the opening bell in 90 seconds on this friday which is for some a long Holiday Weekend a few movers tesla up about 2 3 a participant on twitter asks musk to clarify a july release date for the model 3 give us some clarity musk says news on sunday. News on sunday. So thats what, july 2nd and the idea that whether it was in the first week of the month or the last week of the month because they already said july was going to be the release date and that was going to get the stock moving, its par for the course he keeps a constant teaser feed going to keep the anticipation alive. Thats whats happening and of course that stock has backed off with a lot of the other high okay tanstocks as well. Did get some earnings out of mirks, cron. Revenues ahead pricing up 14 and the guide above the estimate, 173 to 187 for physical q4 streets at 157. The fundamental momentum. All right so lets get this final trading session and q2 done opening bell here at the nyse. The s p at the bottom of your screen at the big board, Software Provider celebrating its ipo today at the nasdaq sell brath its celebrating its ipo. Ipos have been on our mind this week as blue apron yesterday closes essentially flat. Someone called it a reality check for unicorns looking at a lower valuation than its last fundraising round. Interestingly we average first day return of a u. S. Ipo this year is 6. 9. Maybe slightly less than underwriters report but thats good and blue apron having lowered the range you have to qualify flat on the first day but it held the ipo price at least through a day and this morning so far. That must have been tough on that ceo. No surprise dows best component and the s ps best component is nike starting off with a bang. Better than expected earnings. Its responsible for a large part of the ows gain. It was a 10 cent beat on the bottom line. Lower tax rate and cutting cost and also some strength in markets like western europe and china and emerging markets despite flattish results for north america. Nike also sounded upbeat when it came to innovation and they also confirmed the deal to sell directly on amazon even though its going to be a limited slow roll out that makes investors and analysts optimistic here. I do think theres a little bit of an overlay which is positive for the shock while the company doesnt emphasize that its still not so hot. Down 2 for north america so theyre going to have to prove that they can turn around their home market and get some of the innovation to drive higher selling prices which are also kind of a low point of the report. Worth taking a look at shares of hain and give you the background the stock up 10 this morning. This on news that came out yesterday. This is an activist fund founded in 2012. He had been a former principal at relational. They have been active. Theyre small, though. My friend that knows all about these things said about 400 million in assets at this point so the position which at 9. 9 is not that far from the total assets seen under management, well, actually they own a lot of it through options as you might imagine and i can get to some of the specifics there if i can actually read here in terms of what their ownership is. 8 million shares 2. 3