Transcripts For CNBC Closing Bell 20160613

Get an interview with siri, by the way. Tomorrow is day one of the fed meeting with most economists saying a rate hike is off the table. When will we see any movement on Monetary Policy . Well be joined live here at the new york stock exchange. And oil, the highest its been. Hes holding to that forecast. We begin with microsofts blockbuster acquisition of linkedin, announced just before the opening this morning. Jon fortt spoke with both ceos. Jon . Microsoft wants to get bigger, but to do that it needs online professional Services Running on the platform. Linkedin has got more than 430 million members, but only about a quarter of them sign in during any given month and to change that, its been promoting itself more than just the biggest place to find a job online. Its promoted it through news stories, training courses and more. Linkedin was approached when stock was lower. Take a listen. We were talk in february about whats the next phase . Can we complete it more tastefully and wbetter relevanc. If it was informed like what projects are you working on. I mean think about how you can bring it to improve the relevance of the feed. Thats what excited us. Microsofts ceo amy hood said shes going to measure this deal on top line revenue but how linkedin brings more revenue to microsoft. What remains to be seen is whether they can strike the right balance which is the key tenet of this deal and getting the engineers to work closely enough to improve the products on both sides, guys. Oh, the challenge for so many of these takeovers, thank you. Microsoft one of several tech giants. Dominic chu has other cash orders that could be looking to make an acquisition of their own. Dom . Tech companies are among the biggest hoarders of cash, and were talking about a ton of money. Lets take a look at our wall gear, our wall of knowledge, and take a look at the big cash shortterm and longterm investments. We talk about apple and its 233 billion cash hoard. When it comes to cash, microsoft has the most even if you include all of those things, its 117 billion for microsoft. Cisco systems, telecommunications giant, 65 billion in cash and oracle on the Computer Software side. Whats interesting about these companies, they all have one thing in common. Theyre all very, very credit worthy. According to s p, each one of these companies has a Credit Rating of at least aa minor or later. Theyre one of two to have that vaulted aaa rating. Johnson johnson is it. They said they were going to take a look at microsoft to see whether or not this acquisition could affect their longterm rating. For now, Microsoft One of two companies that has that s p triple Credit Rating. Back over to you. Something theyll be exploring later. Dom chu at the wall of knowledge. Thank you very much. Does this deal make sense for microsoft and will we see more dealing coming forward. Joining us now is mark hauten. Good to have you with us and what a rollercoast ride it has been. Lets just start with what it means for the future of linkedin. Well, hi, kelly. Thanks for having me. I think this is a tremendous extra teej strategic deal for both companies. The need to have it within the enterprise, theyre very much for them. They provide more products in the next generation Cloud Based Service services. Theyve had mixed degrees of success. I think this is a big acquisition. For linkedin, it givens them a chance to jump start. First quarter 2015 and 2016. We saw significant selldowns in the shares because they made these missteps. I think working within the within the Microsoft Organization will assist that enormously. You know, i find it interesting. You were in seattle recently and you were visiting with the microsoft people and you were asking them, why dont they buy linkedin, so clearly this was something that was on your mind as well. But drill this down to the personal the impact it will have on users out there. I mean Satya Nadella was trying to do that in his interview with jon fortt. What makes sense for the users of both microsoft and linkedin to have this deal make sense . I think the important thing is to understand this is not synergies in a more normal sense. You know, this is not really a costsaving game. This is about providing more products that enterprise users need in one place. Its a little bit like the sales force for a whole number of different klaus based products from one vendor. I think this is doing the same thing. They can now provide within their dynamics offering. They can now provide the social fabric, which i think is going to be so important for the Network Economy that we live in today. That does raise the question, mark. Since its been a rumor for some time, why wouldnt they a acquire a sales force . What happens in terms of the dominos and other combinations that are out there . I think that the sales forces now, you know, its pretty big. Its double the size of acquisition, probably slightly more than the premium youd pay for linkedin. There are also personality issues that would need to be handled. I think that, you know, this is a much safer stat, although, its been much talked about that they could buy the sales force. Other combinations, i think the most interesting area is in the analytics area. With the enormous amount of data thats being created at the moment, analyzing that data is important and theres two names that stand out there both in the 3 billion to 5 billion mark. By the way, before we let you go, i know you own both shares of companies but are you pleased with the price that microsoft paid for this company . Theyve been down sharply the last year or so and they had the huge decline in february. This price takes us back to that level where they began the year. Is that a good price for you . I mean obviously if you get any kind of premium on a oneday view, it looks great. But i have to say i think microsoft has got a great deal pricewise. Its not dissimilar to the play you pay for other network companies, visa, mat f mastercard, and adobe, for example. You actually get a much higher growth. So i think its great. Im kind of disappointed as a linkedin shareholder because im still sitting below the heise, 30 below where the shares were at their highs. Im sure youre not alone in that one. Mark, thanks for joining us, i appreciate it. Lets get to our closing bell change for this monday with the dow down almost 100 points. Were setting some lows. Jim lowell is back and ben willis with princeton securities and jack ber rue jan checks in. What do you expect the market to do with it . The stockmarket is still entirely driven by Central Banks. Todays coming in. The pressure came out of china, some of the Economic Data there that continued to question the pboc. But the brexit was probably the single most important coming in and the fact that the remaining poll exit dropped by 10 . Its still very much positive, if if you will, to remain, but that sort of weakening concerned the market coming in. So there were some stocks to trade with the microsoft linkedin deal, but the stockmarket itself does not have a real good feel to it. Keep an eye on 2081 for a support level on the s p. If we breach that, koit uld be another painful drop down here. Again, if youre a longterm investor, this is going to be a buying opportunity. Im still bullish. I dont think this is the final song by any means, but this is the tape right now because of lack of participation, lack of volume has a real nasty feel to it. We also seem to be tracking crude oil in here, jack. Do we continue to do so . If you look, its finally on the wayside. I dont have to worry about it right now. On the other hand, if we look at the slow side manifesting itself look for crowd to hit a little bit. This june exploration, which is this friday, i guess the question is the fed going to be playing havoc with that pricing and more importantly is brexit the black cloud on the horizon because nobody seems to have price thad in. Jim lowell, so all of these different fundamentals, the macrowith the fed meeting and the brexit and the price of oil and what its doing wrrks do you see opportunities . Nice tie, by the way. Where do you see opportunities . Thanks, bill. I think brexit will be an absolute leverage point if the vote to stay is what transpires, i think youll get a knockon rally thats significant in the european forces. If its to go, i think thats going to create some real near term havoc which means buying opportunities for the long term. We like jed weiss as a good active manager who will hopefully be able to sort that out for us. The feds, while they continue to favor no rate hike, if they stay with it, i think the fed likely raises rates based on fundamentals in their july meeting. So i dont think the feds going to go away, but the brexit issue will go away one way or the other creating good nearterm buying opportunities based on fear. Jacking we should mention whats happening in china and japan. Certainly overnight it seemed like the chinese currency was weakening, a lot of the data and the bank of japan with all the rate headaches has a meeting coming up. So whats the bigger risk, do you think, or opportunity . Right now, negative rates are a cancer. We have to understand that. Its not only asia. Its happening in europe. Ive dealt with them for years. I can tell you first hand, several bankers and bankers alike are staying up with this negative Interest Rate and wondering how long its going to take because quite frankly people are hoarding cash. Theyre looking for ways to be able to preserve capital. None of this is workingful were not seeing any of it come out. Were not seeing any inflation stoke up. Nothing that the Central Banks want is happening. Ben, as were standing here talk, the dow down 19, the s p 13, but the vix has hit 20 for the first time in a few months. Significant to you or what do you make of that . For those who want to play more belts and braces, the vix has been a good place to hedge your portfolio. If you bought it below 13, its obviously paid very well. Its hardly anything to worry about if you have a hedge on with the vix. So a good place, a question for anybody who does that trade now is when do you step out of that trade. Is it time to sell the vix and if you get out of 20, do you wait for 20 2 2 or 25. I think its probably wise. Id be looking to lighten up my vix position if i bought it for a hedge. All right. Very good. Thank you, gentlemen. Good to see you. Appreciate your thoughts today. Thank you all. About 45 minutes to go here. You just heard the dow is down 109 points. The s p down 14. The transports are getting hit, 76 points, and the nasdaq is about 39. We talked about fed, brexit, negative Interest Rate, Goldman Sachs jan hatzius talks to us about the biggest risks he sees with the u. S. Markets coming up. And best selling author Walter Isaacson joins us for the next hour of the show. Well get his take and to the latest announcement from the worldwide verps conference kicking off in San Francisco today. Youre watching cnbc, first in business worldwide. I was working in the yard, my chest started hurting and i thought, well, you need to go to the doctor. I was told that is was cancer, and i called Cancer Treatment centers of america. Dr. Nader explained that they can pinpoint the treatment. Once we identified that there was this genetic abnormality in her tumor, we were able to place her on very specific therapy. 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Its 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, were building a better california. Welcome back. We have a news alert. Earlier in the show we were talking about Credit Ratings. Right now s p, standard and poor is weighing in saying they will look at that. They go on analyst a number of reasons they talk about the idea that microsoft has maintained and is committed to maintaining high credit quality by sustaining its net cash. They also say the companys long history of making Investment Decisions in a fiscally prudent manner is a positive. So Interesting Development here, bill. Moodys, remember, earlier said they were contemplating a possible downgrade of this particular Credit Rating on their end because of this deal, but Standard Poor says it will maintain a aaa rating. Back over you do guys. Credit ratings are an art, not a science, i guess. It depends how you look at it. Its a good point why moodys did this, because they will be using debt to finance the deal, even though its a cash deal. It goes back to that byzantine structure were left with because of all the ways the companies are leaving it. We had a long discussion about this earlier today. Were reinacting it right now. Tomorrow kicks off a twoday meeting. Youll see it live here on cnbc. Then theres the bank of japan meeting next week. So is yellens testimony before congress, there are all kinds of dramatic things happening that could impact the u. S. Economy coming up here. Joining us with his thoughts on the days ahead, jan hatzius, chief economist at Goldman Sachs. Hello. How are you. What a difference one data point can make. Yeah, i mean if it hasnt been for the employment report, you know, it would look like there was at least a chance they might go this week, but clearly thats not happening. Now the question is really what do they signal about what happens after the june meeting, you know, july, september, what do we see and so forth. Do they wait do you think they could raise rates in july and will the brexit vote have an impact on it . I think so, yes. We have a 35 chance in july and the same on september. So i think theres a decent chance. The brexit vote, of course, is a factor, but i think the most important factor is whether the next employment report shows the last one to be basically an outlier on the low side. That would be my expectation. You know, well have to get more information on that. By the way, the whipsawing of the opinion about what the feds going to do because of the data has led to the critiques of the profession. Paul mcculley, by the way, whos an economist. You probably know him well. The egg belongs on the face of my profession, he says. Hes upset in particular about the entire approach the fed has taken here. He says, my profession refuses to acknowledge that the economys existential woe is a deficiency of aggregate spending, for which fiscal policy expansion. Meanwhile david zervok says, and the fed is behind to the cash you observer it would appear the market whats going on . Why has this been such a moment of self flagellation . I think theres a time where theres back and forth. For years we were in an environment where the debate was about whether the fed would be on hold for one year, two years, or three years, and now it is datadependent i think it is a normalization process, but its not something that you can you know, you can look at as a sort of calendar you know, every so and so many months they hike, but it does depend on the new information. I think well have plenty of these episodes over the next couple of years would be my expectation. I dont think that will settle into something much more placid. We talked about this the last time you were here. The fed is never going to have a Perfect Moment when they get everything they want. The last time you were here, the jobs market was stronger, but the Inflation Expectations were not there. Now its reversed it could be argued. Inflation is pretty much where they want it to be but now the jobs market is weakening. Are they ever going to have that moment in time when they will be screaming to them that, yes, its time to raise rates here . I think there will be a time when its clearer than at this point when youve just gotten a data point that at least on its own suggests we could be at a lower pay growth rate. If that hadnt been true and you only see the weaker expectation numbers in the markets and at least some of the surveys, then i think it probably would be time to at least think about going this week. So i think youre right. Nothing is ever all going to line up just because there are so many data points out there and theres quite a bit of noise in them, but you want the. Of the evidence to point toward it. It would seem that if the jobs need to start weakening, the case is made that its broadening. Weve had a number of people come on the show and saying this is a recession, production has been falling since 2014 and the filibuster sooitd of what has been a very healthy and robust labor market, there are other parts of the economy that look like they could almost classically be in recession. What do you make of these dramatically different signals and how likely is it that more broadly things could actually slow down . I think thats too negative. There are certainly some parts of the economy that have weakened and the industrial sector, i dont think its been in recession, but its stagnated for a quite a while. If you look outside the industrial sector, which is 90 of the economy, it still seems to be making progress at Something Like a 2 pace. Sometimes it will overstate it as in q2 where were tracking it at over 3 at this point, but i think the pace is still Something Like 2 , which i think is enough to make progress in the labor market over time. So i think its certainly not a rip roaring recovery, but we are making progress and were pretty close to full employment and i think well be there before the end of the year. Last question. We have to ask you about the record low yields. The tenyear boon for example. Is that the market is that a fear the market has of brexit or whats going on there, and what do you see happening down there . I think thats part of it, although, if you look at, you know, many economies around the world, were still much further away from full employment. So if you take it, the Unemployment Rate is still above 10 . So theres still quite a lot of slack there. Inflation is below 1 . So its at least a percentage point below the ecbs target. So it certainly makes sense that youre in a very low Interest Rate environment there. I think the u. S. Is in a somewhat different position, but theres no question that the World Economy as a whole, you know, still has quite a bit of slack. I wonder if given the negative effect of the negative yielding debt, does that mean from now on its going to be quantitative easing and they need them to ease . They have to do more or what they go for deeply negative rates, you know, i think you could see a bit of both. I do think that qe is probably the more potent instrument. Even if youre not so worried about the negative side of things, they can only move if they move in small inkrementes and nobody ever said a te tenbasispoint could would be. We would like to talk you do all day, but we must go. Heading to the close, 35 minutes left in the trading session here. Coming off the lows with the dow down 95 points. The s p down 12, right at 2083. Coming up, could crude prices at 5 a barrel by the end of this year . A leading oil analyst will explain his case coming up. Up next, new developments in the investigation of the horrific shooting ram pain in orlando over the weekend. Well have a reporter on sight from orlando with the latest coming up. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive welcome back. Youre seeing the market broadly under pressure today. The stocks are rising in the wake of the terror attack in orlando. The deadliest mass shooting in u. S. History. Lets go now to our reporter eamon javers. He has the latest developments in the orlando shooting over the weekend. We have a statement now from disney. Disney is putting out this statement in response that the shooter here in this case may have gone to disney world here in ond. Obviously if you talk about orlando, florida, youre really talking about the big Hometown Company disney. The report is he may have gone there, may have considered other targets to strike other than the pulse nightclub so disney now putting out a statement saying dur this time we have increased our security measures across our properties adds magna tom ters, canine units, and Law Enforcement officers on sight as well as less visible systems that employ state of the arttechnologies. Earlier we heard from jeff comey about what the fbi is starting to discover here about the shooting in orlando. Heres what he had to say. During the calls he said he was doing this for the leefrd isil who he named and pledged almighty to but he also claimed to pledge solidarity with the perpetrators of the Boston Marathon bombing and also a group in conflict with the socalled islamic state. So the fbi there, director there laying out the three phone calls that Law Enforcement had with the shooter during the course of the attack, two in which he called 911, one in which the 911 operator called him back in a desperate attempt to communicate with him. Were also learning a couple of other details concerning the Communications Devices at least so far. Officials indicating theres no indication that there was an iphone in the shooters possession. That was such a big thing in san bernardino. No indication that he had an iphone, also mateens phones are being sent to quantico. Theyre being sent off to lab in quantico. The fbi will clearly do everything to figure out who he was communicating with and if there was any broader conspiracy here. So far theres been no indication that any of this was directed overseas. Back over to you. This may be hard to answer, but can you give us a sense of the mood where pulse is located . We have too much experience with all these shootings now in san bernardino, belgium, and elsewhere. Clearly its only been a couple of days, but give us a sense of how people are responding in the aftermath at this point. Yeah, bill. This is a community that has just been devastated by this attack. Youre talking about 49 victims dead, 50plus injured. Surgeries overnight at the hospital here behind us, i was at the hotel yesterday where they were notifying the family members of the people who had been killed, and i have never seen a more heartbreaking scene than i saw yesterday as those families were finding out what had happened the people they care about. Families cutching each other, in tears, screaming no, no, no. There were clergy members from every faith there to try to provide whatever support they could, but they just couldnt take away the painful stij of that news yesterday. Eamon, thank you. Eamon javers. Be sure to watch americas gun t rice of the ar15. Our documentary on the ar15 airs tonight at 7 00 p. M. Eastern on cnbc. Lets get to our headlines this hour. Sue herera has the latest. Sue . Heres whats happening this hour. Theyre gaining control outside fallujah. Army vehicles and rocket launchers were seen on the outskirt os testify city and thick smoke could be seen as well. Natos chief said theyll send four battalions to the ball kin states. They will formally approve the plan at nato meeting in brussels tomorrow. The department of transportation says airlines are doing a better job of arriving on time while consumer compla t complaints are also falling. 84. 5 of the Largest Airlines arrived on time during april and that is up from 82 a year ago. Hawaiian airlines topping the list. And two soccer fans were charge and sentenced to two and three months respectively in prison. One of the fans was backed from entering france for two years. His father called that decision pathetic. Youre up to date. Back to you guys. Ill see you in an hour. Meantime we have breaking news from fantasy sports. Seema mody has the details. Whats happening . Theyre said to be in talks about a potential merger. This, of course, following the increased scrutiny around the regulation and legality of faept sports. Fanduel and draftkings are the two Biggest Online companies, both valued at 100 billion each. Disclosure. Comcast are. Thank you. I think both companies are spending a lot of dough trying to get this legalized across the United States. It could make sense to combine them in order to just have one set of outlays, but i wonder in a way if it would favor the industry more if it had more players as opposed to just one. Good point on that one as well. Well see how that plays out. 24 minutes left in the trading session here. Back below getting near the lows of the day. Im trying to get cute and it didnt work. The dow is down 104 points. Have a leading trader tellinging us what hes watching when we come back. Also ahead, best selling author Walter Isaacson giving us his take on the world wade developers conference. Stay tuned. Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. When you cook with incredible thingredients. Ato. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than nine dollars a meal. Get your first two meals free at blueapron. Com cook. Experience the thrill of the lexus gs f sport. Because the ultimate expression of power, is control. This is the pursuit of perfection. Were in the final half hour of trade. Were on floor with my pal gordon. Typically i the market goes up before a fed meeting but you also have the exploration on friday which could be causing some volatility and every time a new poll on the brexit comes out, the market responds as well. You know, listen. That really is the one, bill. The fed is going to say what they say and inspirations coming. Youve got russell coming next week. These are big events, of course. But the brexit is such a wild card. People say, look, forget the polls, but how can you forget the polls . In light of what happened in orlando and a lot of this stuff is being sort of factored into it because of feelings about, you know, immigration and some of these other issues, so it becomes kind of like a global type of conundrum here and its taking its toll on the markets. We came in, bill. Asia was sloppy, europe was sloppy. European banks not behaving well. Not a lot of things to get excited about. Then you saw the linkedin deal. You think maybe something will materialize but the other side of it, with dont have much of a banking calendar this week. All eyes are on brexit, bill. They are. Thanks. Kelly . In the shadow, apple is holding its Worldwide Developers conference. Josh lipton is live in San Francisco with the very latest. Josh . Reporter well, kelly, remember, of course, apple has four different on rating systems, right . Mobile, app, watch tv. They want to be everywhere you are. Its a theme apples tim cook talked about at this big Software Show today. Take a listen. We believe that technology should lift humanity and should enrich peoples lives in all the ways they want to experience it. Whether its on their wrist, in their living room, on their desk, in the palm of their hand, in the car, or even automating their home. Reporter two bing headlines that came out of this show, one, they talked to developers and were excited about siri. Apple is going to allow developers to integrate siri into their apps. That means, for example, you can use siri to order an uber or make a reservation. Thats important because in this battle with virtual assistants, you can talk to developers and theyll say apples real great strength is this Global Community of developers. Also apples music got a revamp. It was last year at this time it was the subject of it. Theyre trying to make it easier to use. The service is now going to include lyrics, a daily cure rated playlist. Apple now has 15 million paying subscribers. Remember, in april apple said it was 13 million. They got to 10 million in six mon months. We know over the past year people have faced criticisms. The questions now is with the changes today, do consumers think the issues have been addressed . Well soon find out. Back to you. Thank you, josh. Theyre one of the worst performers on the dow today. And microsoft, too, as a matter of fact. 17 minutes left in the trading session. Look at this. Now were setting lows for real. The dow down, the s p below that 2081 level that ben willis identified at the top of the hour where he wants to see it close above and he wants to see it go higher and the nasdaq is down 43 points. Oil moving lower has been a factor, but cost t days of costing 85 a barrel could still be to come. Mike santoli explains how next. That tenyear yield, 1. 61 sliding lower. Crude oil closing the day lower, too, despite an overall climb higher this year. Cnbcs commentator mike santoli sat down with one analyst who says he sees oil climbing much higher. He has been saying that for a while, right . He has. Hes a longtime oil analyst, in fact, one of the widely watched voices on oil industry. 85 a barrel is his target. And, in fact, he came to that target in january and february when crude was still crashing. I spoke to him last week. Heres what he had to say about that target. 85, aisle admit, is somewhat arbitrary. It was something mentioned as perhaps a good intermediate price. That edds up becoming like a center of gravity especially if the oil tight abouts. Are prices going to stay here. Thats a topic for another time, but at this point, that already seems very difficult for people to believe, that oil could possibly be at 85 before, you know, the end of the year is out, but that is the number. Thats what we think is going to happen. You know, and hes sticking with that. Then weve gotten to this 50 level. Underpinning this target is the fact that he thinks demand for oil is chronic. The markets are much tighter than most people think and opec and more specifically saudi arabia cannot bridge that gap and they cannot come back on very quickly. So therefore he sees them having the ability to get a lot longer crude oil. Yu, but very quickly youd have to believe that as production moves higher, more production will come online. He thinks it cant be turned like a switch. In the meantime inventories are going to be drawn down. Very good. Mike, thanks very much. By the way, for much more on this, be sure to check out cnbc. Com pro for mikes entire interview. Very instructive. Ten minutes left to go. The dow drags down by a number of factors. Its down 118 points, twothirds of a percent. The nasdaq is down almost 1 . And art cashin signaled the market on close is 500 million to sell. Were seeing the impact. When we come back, data with the u. S. Market reaction to recent u. S. And International Acts of terror after this. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Mary buys a little lamb. 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It didnt seem like that way, but if you look at the last six or seven terrorist attacks, whether they were u. S. Or internationally, one month, three months, six months later, you see virtually no change. Of course w dont like when those things happen. The markets are up close to 2 . So very little impact. But there are many things weighing down in the market. The odds at brexit are increasing. Of course, theres still uncertainty about what the Federal Reserve is likely to do the next couple of months. Not at that theyre going do something in june but prematurely. What are the odds of raising Interest Rates . I think the odds are zero. But the odds are starting to creep up for july and a little bit higher for september. But one of the things they look at is the twoyear treasury, no yield. And typically a month before that, the Federal Reserve raises rates. They go up ten basis points. Beginning of the month, the yield is down. So the credit markets are telling you very little chance of the fed doing anything any time soon. The low is 1. 4 going back to 2012. Do you think theyre going to retest that . I think right now the yields would be low when you get them for the brexit vote. Until then, theres no way that the credit markets are going to feel complaisant. Very good, anthony, thanks. Well take a break, come back with a closing countdown in just a moment. After the bell well have more on the microsoft linkedin deal. Also well go to the apple conference where tim cook just left. Keep it here. Youre watching cnbc, first in business worldwide. You get an industry leading Broadband Network and cloud and hosting services. Centurylink. Your link to whats next. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Just inside the twominute mark as we held to the close. The dow down 125. It was 130 a moment ago. We had the buys to the down side with market on close orders. The dow here clearly finishing near the lows of the session. Whats not finishing the lows of the session ive got bob pisani here with me. Watch what happens when i mention this. Look at this, bob. The vix to 21. We were just following along. This was the highest level wed seen since late february and now were going to take that number out. 2081. This is a little strange. I dont pay a lot of attention to the vix unless its over 20. Then it gets interesting. It gets very unusual. The vix went there for two days. Thats very unusual at a time when the s p 500 hasnt moved that much. Were down 4 in the last two days or so. You would think it would indicate a bigger move in the s p and that hasnt happened. I called around some of the trading desks excuse me trade options, and they noted that banks in the past had been big buyers of trade volatility. Theyre under some pressure not to to that as much anymore. There may be a lack of a seller of volatility. When people want to buy protection with this brexit thing, there may not be as many selling protection out there. Moving the vix was very, very pronounced. All right. Very good, bob. Thank you very much. Going on with a decline of 126 right now. We have the thomas robinson, the president. Stay tuned with hour number two with kelly and company. See you tomorrow, kel. Thank you, bill. And welcome to the closing bell. Im kelly evans. Heres how were finishing the day on wall street, the dow down 131 pointss. Pretty much the lows of the seg as we hit the bell. Apple one o tf the worst performers. The nasdaq down nearly 1 . Down 46 point, this despite some big deal make in tech space. And coming up, microsoft denouncing its buying linkedin. Well talk about that in just a moment. First, though, on todays panel, we have cnbcs columnist mike santoli along with Walter Isaacson. For more, fast money trader guy adami. Welcome, everybody. Just thought on the market. I guess the tone was set overnight, but it didnt improve throughout the day. The stockmarket was pretty resilient most of the day. It was standing up to a pileup of a lot of extreme moves in the global market. You have the yen rallying which nobody seems to be positioned for. Its very much a risk aversion trade and the risk around the world. I do think that the discussion that theyre having about this unusual increase in the volatility increase which basically means people paying up for downside protection, i think a whats going on, youre kind of going into the Stock Options market to hedge a lot of things besides stocks. Youre sort of hedging a general sense. We have brexit votes coming up and a lot of potential for shifting underneath. I do think you have to look at brexit because theyre getting more and more clear. That adds one bit of uncertainty to the whole pile of uncertainty we have. The brexit. Th britain is going to determine whether theyre going to stay or leave. Shifting toward exit. I talked to somebody today whos very active and still thinks that people will vote to stay by a small margin, but its a turnout you have to look at. And also around the world, youre having this retrench. Ment nationalistic hunkered dune feelings whether it involves immigration or terrorism or anything else. All of this adds to uncertainty. Maybe it trilkles down to the daytoday price action were seeing, that this worlds flat era is over, that the whole the era of globalization being something we celebrate every day is over. What does that mean . Well, it does mean, especially when you look at what could be secular stagnation in some of the economies especially in the west and you look at the fact that theres no great thing propelling the economy the way the internet and the digital revolution war and that people are more hunkered down. I think people say were not in for year after year growth as we used to be. Guy, cheer me up. Ill cheer you up. You look grandparents day. Walter isaacson is here. Mike is the hardest working here. The penguins won the stanley cup last night. An nba champ tonight. The yankees are batting. 500. Is that good enough . Ive got a big smile already. What walter is saying is pretty much it. The fact that countries are thinking about this makes the inevitability inevitable. Think about this real quickly. If you ask somebody where are you from, new jersey, texas, but broadly speaking when they answer the question, im american. When you go to europe, theyre either from a great britain, ireland, tlauns. They dont view themselves as europeans. This experiment that took place about 20 years ago, to me is a failed experiment and is starting to unravel now. Youre going to see it increase. And it is going to continue to ratchet lower. Is that supportive, mike, to your point that people are going to look to u. S. Assets period of whatever . They will. The question is at what level the buying come back in. I do think what were talking about in general leaves them. On this cycle of looking for the next policy move, the next referendum, the next thing thats not businesses do what businesses do to give you a cat lichl for what markets might be up to. I think you have this clenching up in advance of these known events. Right now it looks like a downward wiggle after an up trend, and i do think that on some level u. S. Stocks are along the spectrum of stuff you buy when things dont look so good other places. Lets not overstate it as you said it. You look at the s p 500. It sits there wiggling around just below 2100. Were not talking a major problem. Were talking people not feeling secure about longterm growth prospect. Youre seeing major new investments, innovations in our economy. So i think theres just a lack of vision for the future that weve been stuck with for the last if youres. At least two companies are trying to rectify that. A mega merger on sunday acquired for 26 billion. Jon fortt is covering the story. Julia boorstin following the linkedin side of things. Welcome to you both. Lets start with you, jon. Heres whats in it for microsoft, more subscribers, more revenue, and more data. Linkedin has got millions of members. They all need to be more productive and microsoft makes software in the cloud that helps them do that. Of course, linkedin knows where youve been, who you know. Microsoft at the same time know as what youre building to some extent and who youre folk to be meeting with potentially today throughout outlook. We spoke with microsofts ceo Satya Nadella. Heres what he had to say. These professionals are using microsoft on one side, linkedin on the other. Thats a massive opportunity to engage in both. Think of the other side of it. Its a higher market, sell and learn. Thats a huge opportunity to integrate and expand with those dynamics. Those two sides are the crown jewels of linkedin but its about putting in Microsoft Office 365 and our cloud. Thats whats super exciting. This is mosts biggest acquisition to date by far. Microsoft had never bought anything for more than 10 billion. And this is more than twice that level. Well have to see how it plays out, guys. That being said, lets get linkedins side of this deal with julia boorstin. Julia . Well, for linkedin, a key to making the deal with most was to benefit it and be able to operate totally independently, jeff weiner reporting to Satya Nadella. The potential for most to linkedin and theyre largely bullish on the potential. Jeffries brian pitts is looking at the opportunity to integrate things. Theres an opportunity to cross out linkedin and products. Of course its all about the execution and how much execution weiner gets. Thank you. Walter, are you a fan of this . I am. I was going to ask jon a question. What seems to be a cool thing about this is you have a combination of the cloud and social networks, and those are the things that microsoft really needs to get into, but what i really dont understand is how would that work. They need an opportunity. For that to work well, you need tenets to use that capacity. Linkedin is one of the biggest tenets when its one of the Productive Software out there. They have a lot of members. The news feed increasingly on mobile are starting to communicate more. If microsoft can take advantage of that, it can combine it with the Productivity Software its got, the things people are doing, now things that people want to do and people are interested in. Thats going to help them build artificial intelligence. It as foij help them build Better Software and get more office 365 subscribers and linked in users at the same time depending on what its focused on or the job you want tomorrow. You can access them. You see this is going to be interlaced somehow. I dont know if that in itself, very specific applications of it is what its about. I do think its sort of expanding on microsofts franchise, and i think what it also tells you, lived in always was destined to be a business tool. I think that makes sense. Also just to put it in context, it seems like a big deal. 55 times linkedins earnings. About 6 of microsofts cap and theyre going to borrow it very cheaply. Its a low bar. Maybe the warning is worth mentioning here. They say microsoft needs to make linkedin less irritating to uhers but they say limiting irritation is not where microsoft has excelled in the past, guy . Its 100 accurate. If you think about when they started the conversation, its not coincidently that they started talking in february. The call was early february what link ed linkedin wemtd from 190 to 125. The language they used and the ability to speak to the street was lacking. In a lot of ways were back where we were around christmas time or so. I think linchedin, their failure to talk about their vision and in dpaep, its a really interesting deal. I guess fwet what i theyre doing it. Integration is going to be interesting. But i dont necessarily see the huge downside for moicrosoft here. Weve got to go, but mike and julia, a quick response. Its more than just recruiting tools. Obviously it has a huge recruiting business. Its an assortment of different apps, whether its news or slide shower. It wants to be part of every different piece of your business day and that really fits in with what microsoft does whether its outlook, calendar, or different tools there. So its really about the business day experience and making sure theyre giving all of the users the tools to be better at their jobs. And jon . Interesting that google is not the one buying linkedin. Theyre both in mountain view. Google tried to make this volatility assault. It hasnt worked. Microsoft 365 is still king of the hill when it comes to revenue. They have not unseated the titans. All right. Real quick, jon, whos going to buy twitter . Yeah. I dont know that, walter. You think i know a lot, i appreciate that. I think you know everything. I have no idea. Jon, julia, thank you, guys, for now. Guy, thank you as well. Always a pleasure. Be sure to stick around to catch guy with the fast money crew, next hour talking with gene munster. Thats at 5 00. Now, what do Developers Think about appleses big announcement including a new operating system for watch. Were going to head live to that conference to find out. And later, which other deals could be in the works in the way of the 25 million purchase of linked in. Youre watching cnbc. First in business worldwide. Is control. This is the pursuit of perfection. When you cook with incredible tokyostingredients. Les. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than nine dollars a meal. Get your first two meals free at blueapron. Com cook. Igoing to clean betteran electthan a manual. Was he said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Welcome back. Apple announcing a hole st of n items. How did the crowd react, josh . Reporter well, kelly, there were thousands of developers from all around the world at apples big Software Show, so we caught up with some of them to ask what excited them the most about what ceo tim cook had to say, and clearly some of them very enthusiastic about apples decision to now allow developers to integrate siri, that voice activated virtual helper into their apps. We spoke to developers about what thats going to mean to their business. Heres what they had to say. It really mean as great deal to our business. We have a lot of business to Business Enterprise customers and opening up siri allows them to ease the application, make and receive calls and make their business a lot more efficient. And when you talk to developers, kelly, in this war between virtual assistants, whether its apple or amazon or google, theyll say, listen, amazon clearly has a lot of skill at Voice Recognition and voice transition. Ams might be this great Global Community of developers in now giving them this new tool. In addition they said they were all excited about opening up imessage to developers. We caught up with them about what thats going to mean to their apps. By opening up imessage and allowing users to operate jibjab right from the conversation, it makes us easier to build great new products. So more jibjab coming soon, kelly. The app store launch eight years ago with 5 million apps. Now two billion apps. To keep people excited, tim cook had to offer new tools and software. Well find out. What did they end up doing with payments . Theyre holding off on integrating that into the messaging system for now . Yeah. There was news about apple pay. There were rumors. People were talking about that as a possible. But we did not see that come to imessage today, kelly. Do you think, walter theres a level its inevitable theres a loevl disappointment out of these events but no big announcements, right . Do these iterations and the things that matter to developers a lot, do you think thats still significant enough to move the needle for apple . Yeah. Sometimes you dont know what the big announcement is until it plays out. For example, i dont have special insight on it. But when steve jobs allowed the app store to be open to thirdparty developers, you didnt know it was going to create an entire new economy in america and that things like ooper and list is built on these kinds of things. I think its a big thing. I use the amazon echo at home. I can say, hey, alexia, have uber call me a car. I think you turned on everyone watched to alexia. At the moment, echo has some good ones, but i think this could open a whole new ecosystem. Especially if you look at it in the history of the digital able, which is having an easier in tirr face with our digital devices is the big thing and the next big one will be chatting with your devices. Not entering data into them. Do you agree, mike . Yes. I think you can bayingly draw the conclusion, that, yeah, they are opening these things and also a sign that its a crowded area. Messaging and these digital messages, thats where everyone is pushing so apple probably feels on some level compelled to say, hey, lets strengthen those functions. One more point, i think another big killer app will be when we really do have the next generation of venn mows. When you can pay for things by voice. I want to buy something digitally or 50 cents for kellys song. Oh, yes. But right now im stunned at how slow its been to get easy easy payment systems. I notice one of them. Youre going to see the dam break. By the way, banks are trying to break the dam themselves. Josh, can apple bring sort of the hammer to the payment space to the way it had to knock at ts heads and everybodys Heads Together to create the iphone a decade ago nearly . Well, listen. Apple pay has had a tremendous success in some sense. Youre seeing a rampup, news bringing button to the web, kelly. The whole point of that, trying to make payments even easier, to ramp up volumes even more. Without apple as a whole, the message to cook is, listen, we want to be wherever you are wlrks thats your wrist, your phone, your desktop, and, yes, apple is a bill part of that. Cop coming up, its not juse currency market. First well get the latest details on the deadly terror attack in orlando and how we can prevent more tragedies at soft targets. Back in a moment. 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Eamon javers is there and he has the latest to now. Eamon . Hi, kelly. A really tragic scene in orlando. Were watching a few yards from where were standing, folks setting up makeshift memorials. Were learning more about the shooter who caused this tragedy, omar mateen. What we know as of right now is he was 29 years old. He was born in new york and moved to florida where he lived for several years. He worked as a Security Guard of all things for g4s. His exwife says he was abusive and unstable. He always wanted to be a Law Enforcement officer. The fbi had been in contact with him on three separate occasion, the earliest we know going back to 2012 or 2013. None of that, though, was enough to really keep mateen on the fbis radar list over the next several years. They ultimately let him go, decided he was not a threat. Thats going to be one of the big focuses of peoples questions as we move forward, was that the right decision by the fbi. Why did the fbi make that decision. The director of the fbi james comey was asked about that and heres what he had to say about the challenges that the fbi faces throughout the country. Our work is very challenging. Were looking for needles in a nationwide haystack, but were also called upon to figure out which misses of hay might become needles. Is hard work. If we can find a way to do that better, we will. So the fbi director saying ultimately the fbi is going to review. For now he feels that the fbi officials did their jobs properly here in investigating here. And, of course, the big question comes down to one of resources. You cant keep everyone whos a potential suspect tin definitely. Too expensive and too much manpower to do that. At some point the fbi agents in the field have to make a decision about whether a person represents a significant present threat or not. Otherwise theyre missing the possibility of keeping somebody else under surveillance. All of that decisionmaking now is going to be questioned, secondguessed, analyzed, and well learn about what happened in the weeks and days to come, kelly. Thank you. Theres a more intense focus on socalled soft targets as well as aloe indicated sources. Joining us is kol p clark and jeff ran za, a retired fbi agent. Thank you both for joining us. What measures should be taken Going Forward . No, this isnt a new issue. The United States is particularly vulnerable because of the vast number of soft targets. Im talking about shopping malls and baseball stadiums unlike easy real which is able to hard an lot of soft targets. Plus weapons are readily more available here in the u. S. Meanwhile, jeff, as eamon mentioned, theres pressure on the fbi why they didnt detain him that we dont know what more could have been done. They should release the information. There shouldnt be privacy concerns because the suspect is deceased. They can redact things. Lets get it out there so everyone can look at it. As we stated earlier, you cant follow these people, even if you deem them a possible threat. How long can you follow them, surveil them for years at a time . They dont have the resources to do that when new people are coming into the fold all the time. Jeff, just to follow up on that, i thought comeys metaphor was good. Its not so much even the resources to follow somebody, but where do you draw that line when somebody merits that much scrutiny when there could be thousands of people that fall into that bucket that on the days that he was interviewed in 13 and 14 and beyond, there were probably dozens or maybe hundreds of other people nationwide who were interviewed under somewhat similar circumstances. This is what the fbi faces everyday, the hay stack as comey said. Even if you had the resources to follow people around, how long do you do it . He doesnt do anything until he decides to buy these guns just a couple of days ago. This is walt isaacson. One of the questions is how much do we allow in our society. If youre trying to do surveillance on all sorts of people, does it help to be able to have the messaging that twitter feeds there, you know, things they may be doing on their phone and as an fbi agent, were there things that you wish you could have had that would have been more helpful . Absolutely. Any type of intelligence is useful in any investigation, especially the social media. The problem weve seen today is encryption issues. There are Companies Like app and others locking down devices as a way to make it more secure but making it more difficult for Law Enforceme enforcement officers who need that. What do you say in response to that . Clearly this was an individual inspired by isis, and i think we need to dedicate far more resources to countering the narrative. We spent a lot of money on the kinetic aspects of warfare. But what about counter messaging. Fearing out how to deconstruct the isis brand which has proven pretty resilient to citizens of our own country willing to inflict violence on civilians. Colin clark, jeff lanza, thank you both. Youre welcome. Time now for a cnbc news update. A car bomb wounding nine people in eastern turkey. Security Officials Say three of the wounded were in Critical Condition and that most of those hurt were civilians. Kurdish militants claiming responsibility. The coast guard unloading eight tons of cocaine at its miami beam base off the coast of central and south america. The shipment is estimated to be worth about 214 million. 17 italian masterpieces stolen from a museum in verona were on display in kiev. The paintings include works by peter paul rue benz and peter ensa know. Worth more than 18 million. George h. W. Bush celebrated his 91 92nd birthday. Last week barbara bush celebrated her 91st birthday. Up next, wheel look alt whether that can spark more mergers and which company can be next. Later well look at one big auto supplier revving up its big bet on hightech car batteries when closing bell comes right back. They found out whos been hacking into our network. Who . Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Welcome back. It was a rough session, the dow closing 132 pointss, threequarters of a percent. The s p was down 17 points at 2079. The nasdaq down 46. It was giving up nearly a percent today. And its the return of americaner monday. Microsoft announcing its plans to buy linchedin in an allcash deal. Jeff weiner will stay on and report to microsofts Satya Nadella. They appeared on cnbc this morning and satya spoke about the details. Jeff and i have known each other for a while and weve been talking about these thing for a while, but for me, this is about the next space of growth for microsoft. When i think about the opportunity ahead around productivity, business process, and the professional network, its a tremendous opportunity to expand our ability to grow. And the deal putting a spotlight on other Tech Companies that might be takeover targets. For more were joined by victor. Welcome. Thank you. Well get to the other potential targets in just a moment. There are many people who have these kind of zombie accounts on the site. You sign up at one point, youre not necessarily active with it, but what does todays deal say to you about the future of linkedin and its future with microsoft in particular . It just tells me that that future is extremely bright. I linkedin. I think its extremely valuable for me. Ceos, engineers of the very companies that i cover, and so, you know, i go to linkedin every single day. I see the articles that they like and share. Thats extremely valuable for me. You use it as a news source. I use it as a news source, very valuable news source. No, please. Twitter became valuable as a news source. It would be useful, you know, to take linkedin and have it be a place where people can write, have it be like media. Com or people share news and maybe microsoft can elevate that part of linkedin. Definitely. They could catapult it into a new stratosphere. It seems to me it was a pretty good match because linkedin at its core is a business tool. They seem to have it as a primary way of going about i. T. But what does it do to the market for Internet Properties . Linkedin being acquired. Yahoo s going to go somewhere. So is it now going to be something where the scarcity is in the remaining properties . I think its the zbiing of consolidation. I talked about this earlier. I think twitter, pandora, ebay, paypal, shutterfly, those sort of names are, i think, prime targets not just for amazon or alibaba or facebook as well as alphabet now, google. I think those are acquirers within the space. Xo group is another one. I think thats a small niche. Thats a nice acquisition target. We receive this in other industries. They often mature to four major players. Look at telecom. Did we learn in 2014 who those four are . It didnt include apple. And netflix is going to take over. Who do you see to be in kind of those pillars of the internet tech space . Clearly its microsoft now, apple, alphabet, clearly facebook. Amazon. Dont forget alibaba in china as well. You know, you also have to put in things like verizon, which you didnt expect. If they do aol and yahoo together and become a different type of model. Excellent point. I love the way that theyre looking at the model differently. Im kind of bullish on that. At t and verizon, definitely. Rico, the topic you were talking about earlier, it could be google or comcast that might be interested. Oh, yeah. That gets you back to verizon, at t, what Tim Armstrong is putting together. Aisle ask you the question. What do you think. Who would be the most likely person . Ive argued that google is probably the most logical part of it. They tried but they failed in terms of social media, and so i think they missed out on social media. Google has missed out on it. I think they could solve that problem now with an acquisition of twigger. Kelly made a good point earlier which is for the search to be the dominant engine for google. It needs to search twitter feeds. Theyre doing it now because they have a relationship in place. There are plenty of investors who hope its about price. Seeing the names floated around today, you have one analyst who covers it. It could be twitter, grubhub, and godaddy. Another talking about you mentioned your picks, xo group, paypal, ebay, pandora, and shutterfly. There are v been a lot of announcements including mar ke toe. Theres sim man tex and blue coat. There is a frenzy of it. Of course, you have the retail for that. The dynamic is there. I guess the one place id caution all that, i dont think microsoft taking linkedin particularly requires a direct answer from a competitor. Its not as if somebody else says, wow, we have to match that somehow and create the same combination of things. Without a doubt, a lot of companies at this point, theyre going to have their growth plateau. And its going to be fascinating to watch. He says he thinks this deal is threatening interestingly enough true sales force given that theyll have way that will be difficult for the Market Leader to follow. A significant day in many ways rj thank you for joining us. Adapt or die as the saying goes. One auto parts marek is changing its times and electronic autonomous vehicles. Well hear from the ceo next. Were ten days away from the brexit vote, how it can affect pounds and the euro later. Youre watching cnbc, first in business worldwide. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Came courtesy of james and patricia thompson. This tv . Margaret and tom lee. The championship game ball . That was sebastian diaz. Good guy. And all i had to do was ask for their money and pretend i was investing it. Their life savings is now my lifestyle. Female announcer dont let someone else live the life youre saving for. Find out if youre dealing with a registered investment professional at investor. Gov. Its a great first step toward protecting your money. Before you invest, investor. Gov. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. As cars get smarter, Johnson Controls is making a big bet on batteries. Phil lebeau spoke with the companys ceo and has more for us now. Hi, phil. The lead as it battery is there. We spent some time talking with them about their start stop battery technology, which they believe is on the cusp of really taking off not only here in the United States but around the world, particularly in china. The focus is these batteries which are 5 more efficient and that the current standard battery, theyre making a commitment that theyre going to be doubling it and the ceo believes theyre scratching the market for how much the demand will be in the market for these batteries. Trying to find a car in europe thats not startstop, youre not going to. Five years from now, it will be difficult in the United States or china or never else to find a car thats not start stop. Thats where those batteries will be in the sweet spot of the market jci is building a fourth battery place, which is no surprise. The demand there particularly for Start Stop Technology is going to be picking up over the next couple of years. And yet, kelly, when you look at jci shares, theyve had a bit of a bounceback in the last couple of weeks, but anything related to the Auto Industry right now, investors have largely ignored them. Theyre looking at the center saying, until we see consolidation, until we see the end of peak autos, then were not going to see it regardless of the future growth. Unless it starts with a t and ends with a j, phil. Theyd better get their, what are they calling it, giga factory up to speed. Youre talking about youre talk about lithium ion batteries there which is separate from what jci is talking. When it comes those batteries, youre betting on the growth of the electric vehicle and the head of them is saying, look, were not going to see rapid growth for 15, 20 years, i mean really huge growth until then. In the meantime, youve about got higher fuel efficiency. Thats the sweet spot of the market that jci believes its targeting with these batteries. Phil lebeau. To leave or not to leave. Thats the question facing british voters. Well be right back. Its more than a network. Its how you stay connected. With centurylink as your trusted technology partner, you get an industry leading Broadband Network and cloud and hosting services. Centurylink. Your link to whats next. The british pound moving lower today on the poll showing more british voters favor leaving the eu. The socalled brexit vote takes place june 23rd. While theyre closely watching currencies for the reaction, it should not be the only thing on your radar. Hi. Good to be here. Yes, the markets are waking up to the possibility of a brexit. Now tracking the polls closely, off sharply since friday. Various polls have highlighted despite sterling weakness over the last week yeartodate. Were still though, above lows that we saw in february when the brexit date was set. But its interesting to see this discrepancy that still exists between the polls which over the last couple of days have shown a lot of momentum toward exit and the betting markets which havent really shown that. And the sterling off its lows. One topic that is expected to be a swing factor is if immigration can still be a focal point in the remaining days or not. Or if the economy remains. Its interesting to have the issues in orlando, florida. I had a leading uk pollster on and i asked him whether that would be an impact to change the debate in the remaining ten days. I think something probably bigger has to happen. But when you get these sudden horrible events, were not quite sure how people will react. He thinks the orlando issue wasnt quite enough, but certainly as we watch the last ten days, if its the economy that maintains the debate, that will help a large amount. If its immigration, that will help the exit camp significantly. So far its pretty much sterling where its manifesting itself thus far. Do you think it stays that way . We look at the performance of european stocks overnight. I think all of them were down more than 1 . I ask whether this if britain were to leave, if it would be better for their currency and better for the euro. The last three or four trading sessions, we would have to say global assets are waking up to it. Brexit part of the driving force of that. If you take a step back from the last three or four days, the euro is up 4 yeartodate against the dollar and 6 yeartodate against the pound. Showing huge resilience ahead of this. This will have a big impact on europe. First i would say the euro would see a little bit of action there. How often do we respond to the german dax. 10 of the dax sales goes to chinese companies. 9 to the uk. I think European Assets certainly need to respond more. Just to take a step further, u. S. Secretaries, theyve been remarkably resilient over the last two weeks, really, when weve seen risk off trades and equities selling off whether in asia, or europe, or japan, u. S. Or uk within europe, we havent seen u. S. Equities sell off so much. The u. S. Secretaries seem to be less effective. Do you think todays selloff on the market was related to the brexit fears . I think its definitely got an impact. Look at sterlings move today. It was off about a earlier in the trade after the weekends polls that saw more momentum toward brexit. The icm poll that came out about two hours ago was going to show the momentum switching back. Sterling rallied to be in positive territory until the poll came out. And then we saw it come off again. Sterling is seriously got the jitters. I think as we get closer to the date itself, ten days to go, well see other assets get the jitters as well. In the poll of polls, when things are going to close indicates a view of interest. Thank you. Pleasure to be here. Tomorrow kicks off the first day of the fed meeting. Well tell you what to expect from that, next. Ther 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. Td ameritrade. Today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Welcome back. Weve mentioned one of the many risks on the horizon as far as investors are concerned. Mike, what are you watching here . Tomorrow is the fed meeting, i dont think there will be a lot of excitement on the statement. We do see what degree janet yellen dismisses the jobs report. Walter . I think the uncertainty in our political systems in europe, United States, whether its our president ial election or brexit, thats just got to be starting to have a real drag. The fed will know by wednesday. Weve got many more months to go. I look forward, by the way, to see you in aspen. June 29th, closing bell will be live from the aspen ideas festival. Were very much looking forward to it. Thank you for having us. Thank you for joining us this afternoon. That does it for us. Fast money begins now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Tonight on fast, a strange phenomenon is occurring in the global market. It could spell big trouble for u. S. Stocks. Well explain what it is and how you can protect yourself. Microsoft agreeing to buy linkedin. If history is any indication, you might want to sell right now. Well explain. And later, worried about a brexit becoming a reality . Dennis gartman says he knows the one commodity that will surge. It begins with g, ends in d, may rhyme with old