Transcripts For CNBC Closing Bell 20170619

Out in deadwood we heard about the avocado pelting story. Really injured. In a world where amazon is buying whole foods what happens to costco, and what about those costco retisry chickens. You guys talking about it. Is that enough to keep the big box customers coming well tell you what the wall street is saying with costco down 2 . Two words on costco, fresh fish friday. Very enthusiast. Thats what i live for. Activist investor going after the parent of saks saying hudson bay should stop trying to get the deal won with Neiman Marcus and macys theres a better way to inlock the value. And well discuss stragt in a first cnbc interview with Jonathan Litt. We begin with word out of the white house. Kayla touch covering the tech sim mitt and ooemon javers with more on russia threatening to target the u. S. Over warplanes in syria. Ceos of the Largest Tech Companies in the world, alphabet, microsoft, ibm, adobe are meeting today at the white house to modernize the governments infrastructure or to at least begin a conversation about how to do that its being spearheaded by the office of American Innovation which itself is led by Jared Kushners, the president is only we heard from him in his First Official capacity in that role listen before i came to washington, many warned me that the bureaucracy would resist any change that we tried to implement. So far i have found exactly the opposite it is a popular issue though to get the ceos to the table, many of whose companies have been critical of the administrations policies. The reason being the government represents a very Large Customer for a lot of these companies, especially if they are thinking about investing in new contracts and new Technology None of these ceos wants to be left out of those conversations because that could mean lost revenue. We talked about this earlier with vm ceo pat gelsinge. The government is the a huge user of vm products already and some things we can do in cyber security, improving authentication and applications and accelerating a move to the cloud. Reporter one issue that will be championed here at the white house specifically by apple ceo tim cook and others is that of Immigration Reform that is scene of one of the sort of extraneous topics that the ceos are going to be discussing today. Of course, it is an issue thats near and dear to these companies that employ many people who are on these socalled h1b visas when sean spicer was asked off camera this afternoon, whether the president was considering changing what had been a hardline approach to hb1 visa. The president is approaching the issue to listen. Kelly and bill. So what am i missing here they bring together all these ceos of Big Technology companies to ask them how to better automate the federal government. It would seem to me the answer from each of them would be buy my product, wouldnt it . Well, certainly, and thats been one issue that has raised talk of potential conflicts before, bill, notably in a december meeting after the president had just been elected. The ceo of a Major Government Contractor was in that room and Everyone Wants to be talking on their own book and saying you should be buying my products as well so that is certainly going to be something that will be talked about following this meeting, especially if there are any followon c. Im told but the administration by one official that you shouldnt expect to see any deals inked or announced this week, that they are just soliciting input, but thats going to be one of the key questions. Kayla, thank you. Youre Kayla Tausche over at the white house. Now on russias threat to target u. S. Coalition aircrafts in syria. How much of an escalation is this reporter well, certainly an escalation of rhetoric it was a u. S. F18 super or net aircraft that conduct the the shootdown of the syrian airplane over the weekend. In response the russians suggested that they might treat american aircraft and Coalition Aircraft in the air west of the euphrates as targets they might lock them on and treat them as targets in the combat area there. Sean spicer, the White House Press secretary, was asked about that today heres what he said the u. S. Response was he said obviously were going to do what we can to protect our interests, and, you know, this is something that were going to continue to work with. Keep the lines of communication open he was also asked if the United States would change any of its flight patterns in the region. He referred that question to the department of justice, so clearly an effort here at the white house to sort of downplay the tensions and deescalate this moment. A very dangerous situation in syria and spicer says he doesnt think that any escalation of all of that does anybody any good. Kelly . Eamon, to what degree have they thought through the response here . The u. S. Has shot down another aircraft for the first time in almost 20 years. Now if a u. S. Aircraft becomes targeted or Something Like that, what kind of response will there be i mean, they are not going to let this go unanswered and what happens if we start trading fire now over in syria. Sean spicer was asked exactly that question in the briefing which was off camera, and were not allowed to use the audio of it and i can tell what you he said though. He said the Syrian Regime and others in the region said they will retain the right of selfdefense and the white house says they will retain the right of selfdefense, what they mean is they remain the right to fire back if somebody shoots at us or locks on to our aircraft presumably that moans they would have the ability to take out the surfacetoair missile sites in order to protect the aircraft flying in that area. Thats what youre looking at and that could mean a conflict with the russians which would obviously be very dangerous indeed, kelly. Eamon, thanks very much eamon jafrs there at the white house. Lets get to our Closing Bell Exchange the dow and s p are in record territory. Weve got still about 100 points to go for the nasdaq to get to that again joe duran from United Capital is with us, Kenny Polcari at post 9 and Rick Santelli checks in from chicago with us today. Kenny, i said this earlier today. The stock market will never go down again discuss. Uhoh. It certainly feels like that, right . Though if you were here last week if you were on vacation and tech came under pressure it would be a very different kind of tone and sense earlier in the week, but today i think this is all a direct result of whats happening in d. C. , all the Tech Companies, all looking at big contracts. Technology now is leading the way higher today the total overall volume today is not explosive so i think thats much more of a bounceback not only in the tech sector and i also think over the weekend there were no surprises out of france, no political upheaval and i think its almost more of a relief with the majority, but then rates going up, that should give you the sense that the markets should come under a little bit of pressure but were not seeing that. And the other thing that happened we had a rate hoik. We heard about that in deadwood, too. Rick santelli, to what extent is that in the fed speech that kenny mentioned . A lot more to come this week the financials are up okay, participating, goldman even leading the dow here is this having a knockon impact on the markets today . Well, consider this last once fed day when we raised rates we traded a yield and closed at 212. Here we are up to 118, only three basis points away from the low close yield and two out of three of the markets and equities are at alltime highs and the third is up almost 16 on the year. Listen, the fed could get as hawkish as they want with regard to verbalization i think that after all these years where theres been a semi contentious relationship between the markets and fed policy that as they do the right thing, and i do air quotes on that, i personally think removing accommodation is a good thing, the markets arent really buying into it wholeheartedly, so ultimately theres going to be an intersection in front of both the markets and the fed. Is the fed going to do something the market doesnt have priceded in now, i dont know the answer to that, but i can tell you just by looking at the market that these yields arent high considering what equities are doing today and what they have done and a big chunk of the reason beyond the reach of our federal reserve. We dont know what we dont know hey, joe duran, i mean, yes, i missed the tech wreck last week, but now today here we are, Technology Leading the market higher was that just another buying opportunity, or was there a chink in the armor of the fab five, the f. A. N. G. Stocks . What do you think . I think what youre seeing its a very concentrated trade and a lot of market gains being treated by the biggest Mega Cap Companies and the Technology Firms are leading them and what youre seeing them with amazons move to whole foods, the Tech Companies are assessing the Strategic Direction they are going, to so i would say its going to continue, but its going to be more volatile. As valuation is higher, youll get more likely to see a stronger reaction and the very sharp pullback last week, you should expect more of that as valuations continue to be very concentrated with a mega caps and predominantly with the technology funds. Joe, i see here you said think about going to an equalweighted etf because that might mitigate the size, you know, that some of the big tech names have on the index. Do you think thats a good smart move for people in the longer term i do, you know. The thing is as long as you do that with the s p 500 i wouldnt suggest you do it with anything else and heres the thing youve got to realize a lot of growth is lapping outside of the United States we have very soft data as rick has pointed out. There doesnt appear to be doing as well and the Interest Rates reflect that as well as the feds noodling with things, but i would concentrate on Large Global Companies because they are doing really well, and that includes technology. Equal weighting will reduce the noise of the really large mega caps, and even it it up, but you dont want to go too small because really the growth is outside of the u. S. Right now. All right, guys gooding to at this point thank you all. See you later we have about 45 minutes in the session to go. The dow up 116 points and basically popped open with higher kind of sat there throughout the day. S p up 16 by the way, the dow is 281,500. Halfway to 22,000. The nasdaq is up 73 to 6225 and the russell up 8. Shares of saks fifth avenue parent hudson bay popping today. Well talk to the activist investor behind that move in a first on cnbc interview coming up in had a minute. And later is amazon killing the minivan . Well discuss how the Worlds Largest online retailer may be contributing to the decline of the Auto Industry. Hmm. Youre watching cnbc, first in business worldwide. We created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . 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Were the rivera family, and we will be with usaa for life. Welcome back strong day here on wall street, the dow opening higher its now up 120 points more than half a percent and its the lagard today. The s p is up nearly. 75 of 1 the russell lagging for the last several weeks it feels like catching up there with twothirds of 1 gain and the nasdaq up 2 right now. Still a way to go before we get back to an a alltime high on that one so were getting there. Lets check a couple of movers Clovis Oncology sturridging and a latestage trial of its already approved Ovarian Cancer drug shows four times as many patients could benefit from that treatment. Clovis plans to submit an application to the fda over the next four months to expand the level. The stock, as you can see, up 45 on that news today. Valiant pharmaceuticals is getting a boost in news that Billionaire Hedge Fund manager john paulson has joined the companys board. They owned a 5. 7 stake in valiant. The stock up 5. 6 . Landon building is taking a 3 stake in hudson bay Parent Company and they are suggesting strategic alternatives, specifically a real estate deal to Boston Red Sox mize value. Hudsons bay is reviewing the letter and will respond in due course the stock which trades on the Toronto Stock Exchange has been up about 15 today and joining us in a first on cnbc interview is the man in the center of all of this. Founder and cio of land and buildings, Jonathan Litt good to see you. Thanks for joining us today. Good to sigh, bill. Thanks for having me on. Your premise is that the real estate that these stores are sitting on is worth what, five times what the stock might reflect right now. Is that the idea right, so the company is valued its real estate at almost four times where the stock is trading. Whats remarkable and whats different about this company than any other Department Store company is they own the location at fifth avenue across from rock center probably one of the most valuable locations in the country and that location alone is estimated to be worth 16 a share, trading at 10 a shar which is an extraordinary opportunity to own a phenomenal location jonathan, why is this so mispriced. You know, why are investors not accurately reflecting this in the share price . I imagine youre not the only one who knows this. Well, i think whats happened its treated like every other Department Store company which has traded off substantially as people are wright off the Department Store business. What they dont realize is about hudson bay because its listed in canada is that they own their real estate and the real estate has been valued by third parties at almost four times where were trading and one location is worth 16 a share. I just dont think they have done the work. They short the whole group together or sell the whole group together and they miss this this this aspect of the real estate value. But what about these they have two joint ventures where they have packaged real estate in the past. I mean, arent they doing something about it. So in order to establish with the value of the real estate is, they did a joint venture with david simon at Simon Property group and a canadian reit and we now have a, mooin a those. We know what saks is worth on saks fifth avenue but investors come in and short the real estate they short the Department Store company what we really need to see the company do is aggressively redevelop the real estate or take it private. Yeah. And when you think whats the highest and best use of that location across from rock center, it may not be a Department Store company its been here forever and its iconic and there may be a higher and better use for that location than skz fifth avenue Department Store. Thats what makes this so interesting, jonathan. If you look at hudsons bay which has a long an storied history in canada as a retailer, youre effectively going to them and say stop being a retailer an start just being a landlord and anyone can lease the real estate its a tough sell to make to a Retail Company is there a way for hudsons bay to keep its retail presence and do Something Like spinning out the real estate and saying to people in that business, hey, if you want it, you can manage it and still somehow capturing value for their shareholders. I think its a great question, and i think what i like about hudson bay is that its stacked with real estate professionals. Youve got the bakers who are chairman and ceo you have bill mack and lee nybart, all real estate pros whats happening to the stock is happening in a short period time they wont stand around forever rate waiting for it to be realized they will come in and try to figure out how to unlock it. And whether that means shutting the stores down and redeveloping weve seen vornado shut down the alexander Department Store chain and we have the great bloomberg building nine blocks away and theres lots of opportunities and we have really smart real estate guys in this company who we look forward to working with when we figure out how to unlock the value. Heres the thing that i thought about when we read about what youre doing. Hudson bay cant be the only Real Estate Company thats undervaluing its real estate sears and kmart have thought about this as well as they continue to flounder as retailers. Are there other retailers that you can identify, that you feel are in much the same situation at hudsons bay . Weve been looking at retailers for about 20 years to find discounted real estate embedded in their public companies. Saks fifth avenue when it was brought by hudson bay was always on our mind and screens because of the fifth avenue location and it wasnt until recently when the stock got as cheap as it did that it really became compelling from a real estate perspective the other Department Store companies and the other retailers by and large dont own enough real estate where you can monetize it and make double, triple or quadruple your investment by monetizing the real estate. Do you view yourselves, jonathan, as being friendly activists . What are the conversations with management or indications that they might be open to what youre suggesting here. I think that this has happened pretty quick and they are trying to figure it out. I think that the next step really needs to be monetizing the real estate by redeveloping it, or if they want to stay as a retailer, take it private. I was on bill macks board hes a brilliant real estate guy, and hes going to figure out how to do the right thing, and so we look to be collaborative with them and try to unlock the real estate value with them. All right well see what happens keep us informed Jonathan Litt, thanks. Founder of landon holdings, and hudson bay is up 15 . I feel like an expert because i was just in toronto. I saw the store and the main one. Has had a huge presence there. And if saks is worth 3. 5 billion and the market cap of hudsons bay, i dont think its even that. At least they have the option. A lot of other retailers dont. Exactly. It is a special situation in that regard. Yeah. 38 minutes to go here dow up 24 and nasdaq up 76 and the russell is up 9 today. Up next, new statistics on the impact of a cnbc appearance, but well find out whether or not i agree with her or not. Also ahead, will there be less rubber hitting the road in light of slowing auto sales . Micheline, north arinmecas ceo weighs in on that coming up. This is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. So, how are things cartheyise . Youre fired [ screaming ] its time to get back on top. Were going back to villainy. So bad so good that im so bad. [ maniacal laugh ] dont try to fight the feeling of somethin thats so organic. [ pop ] despicable me 3. Rated pg. Welcome back a pretty broad rally led by the nasdaq which is up 1. 25 the dow is up 125 points, and rice energy and eqt are trading in opposite directions today eqt buying rice for 6. 7 billion in cash and stock. That deal combines two of western pennsylvanias biggest Natural Gas Drilling firms rice shares are up 25 and eqt is down 8. 5 the boards of both companies have approved the deal which faces a shareholder view and review by government regulators and by the way, bill, Natural Gas Prices down around 4 , 5 . Okay. So listen to this. If our a ceo looking for a raise, a new study says that you may want to schedule a tv appearance stay with us on this according to the wall street journal researchers found that executives publicly traded companies who appear here on cnbc earn around 210,000 more on average the following year than similar executives who do not appear on tv the study looked at data between the years 1997 and 2009 for more than 4,000 shows and more than 6,500 cnbc appearances first of all to my knowledge, we did not fund the study who did this. It was researched by i forget what university. Look, i dont buy this. I think they are looking for a cause and effect for a relationship that doesnt exist. They said they went into it with the hypothesis that this was the case and what do you know, thats also what they found . Trying to think of a parallel with that. The best i can do but its not perfect the nba draft is coming up you know, youre likely to be taller than the average person if youre drafted in the nba draft. Well, of course, right i dont buy this. They did find an effect that the snow squaller the company the greater this effect was, so if you were to say, okay, maybe, you know, top level its hard to telper say you know, could you see why for a Smaller Company there would actually be one. They are much more likely to benefit from the publicity, shares around a lot more. So youre going to tell me that the ceo goes to the board i was on cnbc last year. Of course not. And i deserve a raise. The board might think weve got a rock star ceo here we better as much. How could we not mention this having said this. Any ceo give us a camp always happy to have you on show and if it gets you a ray, good for you. We hope we dont mark the inflexion point until it was true until it wasnt. Yes by the way, for the second time we are supporting what we believe to be a fantastic cause. It is the lulu and leo fund which helps children and families foster creativity through art and creative endeavors. It was put together by a former colleague but still very good friend of ours, and we are so pleased to offer this. You can place a bid and watch us as we do closing bell and join kelly and me after the show. The bidding ends on tuesday, june the 27th. Which is a week from tuesday. We want this to be higher than last year. The market is up no excuses exactly you know how we work there will be sweeteners in this at some point, and we cant discuss those right now, but seriously, its a wonderful charity. Very deserving and whatever we can do to help i saw what the current bid is there. Come on. You can probably my dad. You can do much better than that. We see you already. Time now for a cnbc news update and lets get over to our Contessa Brewer. Contessa winners like the cnbc hat which you can wear back to your meeting with the board to prove you were at a cnbc event it would help your salary, right . Heres whats happening this hour the Supreme Court has ruled the government cannot refuse to register most trademarks even if they are considered offensive. Its a victory for the slants, an asianamerican rock band. They were denied a trademark in 2011 but the court says names deemed hateful in nature can actually be banned the high court will also hear a case involved voting district lines in wisconsin challengers say they were drawn to benefit republicans the case could have a major impact on gerrymandering, on how district lines are drawn across the country. A new cdc report shows at least 19 children are killed or injured by bullets each day. The data is billed as the most comprehensive now on this topic. And nasa has discovered ten new earthsized planets that may have the potential to host life. They were discovered by the keppler spacecraft another 209 plants likely to be uninhabitable was also found the good news all of this, maybe theres a savior planet here in the future, bill. Boy, i sure hope so thank you very much, contessa. Well see you next year next year see you next hour. Gordon Cholaphansa Narula from rosenblatt security is joining me on the floor of the new york Stock Exchange with the dow up 125 points in record territory and the s p also in record territory two traders before the show today said to me why is the market up this much today . Whats your answer well, bill, i appreciate that you didnt, you know, just explode moy head when i told you last week that we might be vulnerable if they start attacking any of the big nails which is exactly what happened want to get that out of the way, bill. Okay. And having said that, we did retrace a lot of the technology is leading the way today, to the upside. We were oversold so you can see on a technical basis and also some of the fundamentals were strong today. But really, what are we seeing this week thats exciteing and that is its the russel. We have a kwudw a quadwich, really powerful move and the thing thats interesting is the less action that you have, the less volatility that you have, the lower the vix is, its almost as if thats what makes the coil that much tighter, so that means that were going to get to friday, and as we get into that last half hour, last 15 minutes, youll see an explosion of activity thats going to be quite impressive were already gearing up for it. And i know that youll be here for that. I will. Starting to see some numbers going into it here a late day imbalance is already indicating that theres some more interest, but, you know, we are gearing up were going to start to see this thing carry through this week. Its going to be a great week down here. Ive been staring at that tie for 20 years it still impresses me. Thats impressive that youre still wearing it. Thank you so much. Appreciate that very kind of you. Kell . Thank you guys. 30 minutes to go until the close. The dow is down 127 points right now and we continue to add a few as we go along the s p is up 18 and the transports are up 151 and the dollar is higher by half a point. Nasdaq up 77 and russell up 10 up next, new polling data on President Trumps plan to privatize the nations infrastructure and the federal aviation administration. Some of the results of that may surprise you. And can 5 rotisserie chicken save a big box retailer from an emboldened amazon . This story is making me hungry well be right back. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. We have more on this developing story of commerce secretary ross comments about the nafta renegotiation. Ylan mui is here. Reporter ross is indicating the nafta renegotiation may not get done this year if the talks spill over into 2018 they could run into trouble because mexico is having president ial elections next year, and the u. S. own authority to negotiate this deal will expire in 2018 so ross acknowledged that this timetable is short in an ideal world we try to get it done by the end of this calendar year. That would be a record speed for any big trade negotiation so i dont know whether well be able to do that, but we are certainly mindful of the calendar and that the calendar is fundamentally not our friend. Reporter his comments came at the conference sponsored by the Commerce Department and is designed to generate investment from foreign businesses and investors as well. Secretary ross says that the delegations from japan and even china are particularly large this year. Back over to you. All right ylan, thank you. Well continue to follow that story. Cnbcs all America Economic survey is out and Steve Liesman is back at Global Headquarters with some. Data on that steve . Yeah. Kelly, some really interesting stuff where we get to bear down on some of the issues. Lets talk about the key issue about privatizing infrastructure we asked about highways and airports, and look at the support the president has on this 53 favoring it, and 33 opposing it. The rest are dont know or are unsure, but what happens when we ask specifically about the idea of privatizing the faa take a look, we get to the faa and they oppose it there it is right there, 3353 it flips on the other side america is saying hands off the faa, but go ahead and privatize the roads and the airports another critical issue about companies and the issue of Climate Change with President Trump said he was withdrawing from take a look you have 24 strongly supporting it and 10 somewhat its about 34, but big opposition to withdrawing, and a lot of intensity around the issue. The support is strongly opposition is very high right in here, strong opposition. What about companies and what they did when it came to Climate Change remember when they said were going to stick with it 79 of the public, 800 americans polled, by the way, 79 of the public say it is indeed firms responsibility to stick with the Climate Change accords out there, and 72 said its effect i have to do so without the government, and this is my favorite statistic of the whole poll 78 say its correct or appropriate for companies to stick to the paris accords even though the federal government is withdrawing. Now kelly and bill, do you remember after President Trump withdrew what many of the Big Companies said they stuck with it what this data shows is that the American Public is with the companies until them sticking to paris accords even after President Trump said the u. S. Is withdrawing. Clearly we didnt need to agree to it afterall because everyone in the country and the companies are going to go ahead and follow it anyway. You can say that. If we didnt have the paris accords they wouldnt have anything to stick to. Right. You got to come up with a document first got to the have a plan too, and i was, by the way, absolutely stunned by this data showing that 78 say, you know what, even though thing in the withdrew the companies should stick with t. 80 of the public agreeing there. Very interesting. I think theres going to be a real power revolution with solar. Soon some day well start to see the utilities maybe having to deal with it thank you, steve good stuff our Steve Liesman. 20 minutes to go the dow is up 130 now and s p up 81 and the russell up 10 and a the stayathome food wars, blue apron, costco and future Amazon Company whole foods are all vying for the consumer dollar. A playbook for investors and consumers next im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. 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So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Welcome back on the heels of that proposed amazon whole foods keel comes another development in eating fresh at home. Blue apron launching its ipo road show today. Heres more. Reporter blue apron will have two weeks filled with investor meetings asking them to fork over half a billion dollars worth of stock and value the startup at 3 billion in the ipo. Now, we dug through the 200page prospectus to find the pros and cons of this deal, and on the Positive Side blue apron has doubled its revenue to 800 million between 2015 and 2016. Thats largely thanks to consumers wanting more of that healthy, fresh food, and if a customer bought a meal kit theres a 92 likelihood that they bought another one as well. But the risks here are very important, kelly for one, blue aprons net losses are widening as marketing expenses increased 930 from 2014 to 2016, and shareholders wont have much of a say since blue apron has multiple classes of stock, but what everyone is focused on today is the competitive threat posed by amazons combination with whole foods and blue apron even added this line to its prospective just today they say business combinations and consolidation in and across the industries in which we compete to further increase the competition we face and result in competitors with significantly greater resources and customer bases than us blue apron will have to prove to investors that it has enough barriers to prevent amazon and whole foods from biting into its share, kel. Weve talked about this i dont think either one of us will be lining up for shares of that. Im not here to endorse one way or the other, but i think there is a future for this industry im not sure who the winner is going to be. Lets just put it that way. I actually think i was talking about this the other day. There will be a time i get you when apartments some will have kitchens and some wont theres just no need can you take that square footage, especially in a place like manhattan and redeploy it so much better when you just have people dropping off meal kits for you all the time and i guarantee you that that share is going to grow over time. Now you sound like Jonathan Litt doing the real estate. The trend is here and its wonderful. You can get fresh food, pretty inexpensive. Probably saves you from throwing a bunch of all stuff out and one time i plate it had and a bunch of stuff hi to throw out but it doesnt necessarily mean one Company Represents that whole trend. Leslie, thanks. Jump in any time well see you later. Thank you, guys. Meanwhile, blue apron may have its work cut out in the wake of the planned amazon whole foods marriage longtime wall street favorite costco has already been hit with downgrades as the amazon deal could put cost coat a competitive disadvantage Courtney Reagan is stepping in with that part of the story for us. Hi there, bill. Consumers love amazon and also love costco. Studies suggest theres a pretty high overlap in those shoppers so if they coexist now, what changes now that amazon is buying whole foods goldman saks and Deutsche Bank says this combo is bad for costco costcos shares were downgraded and Deutsche Banks paul tyreese russell moves it from buy to hold both analysts cite similar reasoning. Costco had an edge on certain food categories previously that amazon didnt offer and that change with its new whole Foods Acquisition and they both stepped up a steppedup walmart offering and a falloff in costcos previous catalyst like the credit card switch and dividend increases Deutsche Bank and Goldman Sachs caveat the call saying costco is still a relative winner and they dont anticipate meaningful erosion in Business Trends now the outperform for costco is being reiterated saying costcos moat stays in check. It will be tough to replicate the farms and plants that costco owns as it pertains to food as well as the partnerships in order to source food in a lowcost manner for a amazon whole foods costco calling out the 499 rotisserie chicken and the number one cash yew buyer and two top fine wine importers in the u. S. As advantages for costco. Competitively costco does sell more than food, it has gas, travel discounts and more so thats also part of the calls for why theres some of this that is not going to be hurt by what happens with this amazon whole food. Im a member of both. I ordered a patio set from costco and a file cabinet. I dont think theres that much overlap between whole foods and costco i dont buy that whole foods, you know, i think its apples and oranges because of the price consciousness of the shoppers at costco you dont have the same price consciousness at whole foods exactly. Yeah. I think you can both be right. I think, bill, youre right, because we are if youre a costco shopper you are sensitive to price you like buying in bulk and the lower per unit costs however, we know the demographic studies show its a higher income shop their shops at costco which means that shopper could afford the prices that whole foods is currently listing, so i think this all becomes is it a winner take all . Can there be multiple winners and multiple categories . Does costco stay competitive in everything but certain food court categories the rotisserie chicken still remain their number one . We to wait and see. And fresh fish friday thats my favorite there. Thats true. Thanks, court. Thank you. Up next, its the u. S. Versus europe. No, were not talking ryder cup. Were talking about whether its best to invest which place across the pond. Up next, two bulls shark tanks kevin oealry and hes not th and the other guy, hes not. That was a good tease. Very. Its a champagne and models potpourri on my yacht made of cuban mahogany gany, gany, gany watch this rumor confirmed. Theyre playing. What . We gotta go. Where . San francisco. When . Friday. We gotta go. [ tires screech ] any airline. Any hotel. Any time. Go where you want, when you want with no blackout dates. [ muffled music coming from club. Blue monday by new order. Cheers. ] how does it feel the travel rewards credit card from bank of america. Its travel, better connected. Welcome back the rally youre seeing here kicked off in europe with markets seeing gains of nearly 1 after a french president emmanuel macrons party won a big majority in parliamentary elections over the weekend is this a weekend to be buying european stocks further and should investors stick to the u. S. Lets bring in charlie from erroll investments and kevin oleary likes european stocks. Thanks for joining us. Thanks for having us. Kevin, i had our staff i was looking at charts of the three big averages in europe, the ftse, the daxx and cat kon and when you compare them to how the s p and dow perform its a wash, they are all doing pretty well these days so whats the advantage that you see in europe over the United States. Well, if you look over history, the last 50 years, in any cycle europe outpaces our indices 50 of the time so the argument sergeant if youre a longterm investor you want someone to exposure to the european market. Doesnt have to be 100 of your portfolio. I like 20 and the truth is the it does outperform half the time and currently pes are lower in europe and its 11 in europe and the Political Risk that everybody assumed was there just hasnt materialized. Things are quite stable and they still have all kinds of incentive programs to support equities in Government Spending right now. Yeah. So i like europe a lot. I think its going to outpace the s p this year and i think you should be invested there. You know, charlie, whats good for europe is also good for the s p because its so exposed to how well the continent does, so if youre saying that you like the u. S. , do you mean exclusively and if so do you want only u. S. Exposure. Well, i think people should invest in what they know its one of the most important rules of investing and a lot of americans overestimate what they know about european stocks, and what weve found over the last 20 years is there are lots of land mines there and youre probably not going to find the greek banking crisis before it explodes underneath your feet, so, first, invest in what you know, unless there are big differences in values. I would have said four months ago that europe was a lot cheaper, lower multiples than the u. S. , but the u. S. Earnings have been growing faster the multiples have come down so right now theres not much of a gap. Would i go with the Higher Quality u. S. Earning. Before we go, kevin, youre the etf guy. Do you buy just a broad european etf or where do you concentrate those investments that you like there . I use the ftse russell index oeur which gives me largecap stocks in switzerland, germany, france and england and, you know, names like nestle and roche and anheuserbusch, those are names that we know very well stateside because we buy their products, and they have had a huge advantage now they have a lower currency and the wind is behind their backs, antiand a lot of people thought nestle was an american company. No, its swiss and that has had a huge market share in the u. S europe is here to stay and i like to buy them through an etf like oeur. All right gentlemen, thank you thanks, guys. Up next, we have the closing countdown for this monday. After the bell, the end of the minivan is come, and amazon could can be to blame. U. ll have those details for yo youre watching snibz, first in business worldwide think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. baby crying fly me to the moon elegant music and let me play bell rings welcome back to closing bell. Im eamon javers where theres reports that the white house is considering a new spokesperson to replace sean spicer i spoke to a senior white house official in the west wing who did not deny that statement. The statement that the white house official is giving us on where this all stands right now in terms of the Communications Team saying weve south input from many people as we look to expand our communications operation. As he did in the beginning, sean spicer is managing both the communications and the press office, so the implication here, kell, from this statement is that sean spicer is doing two jobs right now, replacing mike dubke who left as the Communications Director a short while ago here at the white house. Its possible that sean spicer might be moved into that role, a more Senior Management role, and we might see other faces here in the White House Press briefing room, including that of Sarah Huckabee sanders kell, back over to you. Eamon, thanks investment ill take it here just headed to the close with records for the dow and the s p today, and if weve got a moment to show you in europe this morning, and ill highlight the cat caron. It was the best performer in europe this morning. Macron says he wants to mak france more entrepreneurial, make labor costs lower and good look on that one and the market was up because weve got texts, industrials and banks all moving on the same day. Something that they will be talking about coming up on the second hour of closing bell with kelly evans and company see you tomorrow, kell thank you, bill. We have a record close on wall street and big valleys across the board. The numbers here the dow with a gain of 140 points on the bell, 21,524 its more than halfway to 22,000 about a twothirds gain for the blue chip index there. The s p 500 up. 8 of a percent today to 2453. Thats a 20point gain for the s p today. The broad market index the russell 2000 small caps up about the same percentage to 1418 they are still at their alltime high and so is the nasdaq and the nasdaq today up 1. 4 , 6239, so meg a. M. Moves here that well get to shortly also have chief executives and Tech Companies including ibm, apple and amazon heading to the white house today to meet with the president. They are talking about modernizing americas Digital Infrastructure ahead, former yahoo interim ceo Josh Levenson will join us and talk about what he think needs to be done and more importantly now to implement that. Joining me on the panel is michael santolli, dani hughes and Neal Hennessey is here, Portfolio Management and chief executive officer at hennessey funds. Welcome, everybody i mean, mike, this is a strong kind of sharp rally today. Some fresh records whats behind in pretty reinclusive. I would call it a walkaway rally as opposed to a runaway rallry not as if you had huge rushes of volume even in the nasdaq 100 etf, the qqq, basically just average volume, but you did have a lot of things working together a lot of times this market has had offsetting good and bad. This time you had, as bad said, banks, technologies and industrials all leading. Defensive groups down and treasury fields kind of finally loosening up to get some lift behind it it its all working its very hard to find obvious weak spots in this uptrend right now and all you can really say is volume is not being great and were entering a tough period of the calendar late june into early july and sometimes gets more choppy. Its a mixed bag. Other people participating some of the s p top gainers, nikes like mike ron, amd up there and so is mallencrot. We can talk about the french election. On the spot, thats pretty good. That was good. Thinking about it when bill was talking. Anyway, just to reiterate that for a second. The parliamentary election, the fact that macron does have a mass popularity behind him, what do you think that does to kind of factor in here at all today it factors in new reat all times everywhere i mean, were seeing it politically. Were seeing it in the stock market, and i think that its been kind of a groundswell really of popular idealism however, i, too, am a little concerned about the volume in this rally, and the fact that we are right on the precipice of august also, you saw the market actually jump up pretty dramatically right at the close there, kelly, which i thought, too, momentum saying that we have to participate in this rally. So, you know, im looking really for ideas with long tails here in this kind of a market. Long tails meaning . Long ideas, long term, long theme. Okay. So, in other words, not just hopping on the bus right now looking at a really longterm perspective. Im looking at the nasdaq and had a lot of companies doing well there j. D. , by the way, nvidia up about 4 , but biggest decliner was costco, down nearly 2 you know, i just imagine thats reverberations we saw some downgrades after amazon bought whole foods. From where you sit, you know, do you just kind of stay broad in this environment do you start to look at a name like costco or alta beauty being lower today. Is that a chance to pick up some of the best performers here, or do you have to wait to see how all of retail shakes out. I dont really know the costco story inside ant out and generally speaking what youre seeing is amazon is moving into where everybody is moving out which is brick and mortar. Now, they do have a different plan of how they are going to move the merchandise from whole foods out to the people, maybe within five minutes, but its a reversal of whats actually happening out there on the brick and mortar story but as when i look at the overall market, theres no youve yafrmt you were just talking about the dow jones being up 140 points for today, but thats only a little over onehalf of 1 , the number looks large bull really only onehalf of 1 you continue to like stocks here, right, is that right, neal some like to come out and say they have run up too far and the economy data lately hasnt been that great its all the top ten performers. You know, so what whats your case for owning stocks at these levels here . Were nine years into this bull market and everybody is giving us a reason or no reasons actually to get out of this market except that its been up for nine years the dow jones sells at 19 times earnings thats not way out of line the price and sales ratio is 21. You get more yield on the dow jones 30 industrials than you do on a tenyear u. S. Government, but all in all, if you pick the right companies and stocks, youre going to be fine. If you look back at the beginning of 2,000 beginningch 2000, there was euphoria all over the street everybody remembers the dotcom bubble we dont have that in this marketplace. You can buy some of the retailers where youre not in a brick or mortar store like a pbh. Its calvin klein. Its speedo. Its whatever. You can do that online you can go and buy you would want to go and see an air stream if youre going to look at tho industries so theres plenty of Good Companies out there that have not gotten caught up in this bull market. And danny, youre looking at the financials jpmorgan and goldman both up 2 so that would certainly help. Financials, weve been overweight in financials and we actually did take some money off the financials i would agree the market feels a little high. Ive been through the ups and downs of the last 25 years and learned my lessons, and thats just to say that this market can continue forward for a long time and make very new highs and im not afraid of participating and i do like to take some money off the table when thats due, but one of the Companies Said i want to talk about is First Data Corp which is actually a transaction pros sessioning company. Stocks actually up pretty considerably this year about 29 year to date it the doesnt pay a yield which is unusual for me, but i like this because they are just everywhere and they just recently bought card connect for 750 million in cash company has a lot of debt. However, they are operating cash flow positive and i think, you know, for the long haul this company will be around and its not a bad way to play the financial space. Dani and neal with some ideas how to play the markets. Glad to have you here. Vice media securing half a billion investment from private Investment Firm tpg capital. Julia boorstin is out in cannes, france where she spoke to the ceo. Julia . Reporter im here at the cannes line advertising festival and just yesterday vice announced had 50 Million Investment from media firm tpg we spoke to the ceo shane smith about how this investment is a key stepping stone as he prepares for a potential ipo its what we would do if we were going public. Its get a thirdparty peg and Start Building our book, and, you know, bringing in revenue, you know, on sort of a hockey stick basis so that that theoretical ipo would look very sexy smith explained where there are going to be investing this new infusion of cash saying they are going to try to build out their individual brands, especially ones focused on food as well as music he also said that they are working on building a direct to consumer subscription content business im not going after netflix that would be suicide. I think whats going to happen is youre going to have in tv skinny bundles, and so we have to sort of, you know, do that, and then also in dtc there will be skinny bundles, six, seven, eight of those that will get there and work what we have to do is do the largest Millenial Library for video content out there, bar none, and if we have that ip library, you know, at t is buying time warner for a reason are. You know, all of these companies will buy up all the ips, and then when its actually millenial ip that everyone realizes they need they come to me reporter nearly a year and a half after launching the cable channel viceland in the United States shane smith acknowledges theres been headwinds to that cable tv business, but he says they have succeeded in having doubledigit percentage quarter over quarter growth for that cable channel and they are successfully bring over their millenial audience to that tv platform kelly, back over to you. I wonder if hes being a little overly broad. Im a millenial, and im not really into vice media. Reporter vice is particularly focused on men, and its not purely millenials, sort of a male audience that goes a little bit older, but its really interesting like a lot of people would say why launch a tv channel if youre going after millenials . Why not just focus on that digital platform so perhaps thats why he has that subscription business in mind. Yeah. They are doing all right, vice s. Julia thank you. Our Julia Boorstin by the way, adobe launching an advertising cloud. The interesting thing is the fight digital is waging for the advertising dollar relative to traditional tv and i dont think they have to fight that hard sometimes. Doesnt seem as if they do. Obviously the market itself wants a solution to this area, and its a very messy one. Its obviously been a lot of money thrown at various types of add exchanges and auctions and solutions. None of them, you know, are plugin centralized thing that was sort of platforming a noveltyic and all the rest of it. The internet drives you so crazy now when youre on it. The programmatic stuff, its all the same and all so sure. Are they going to be able to dramatically improve that content or drive people off all together i think the opportunity is in that all of the buyers of advertising know how much waste there is, and just sort of know how much slip there is in the whole system but i think it was always the advertisers and now its a little more evident to you in numbers. All right more out of cannes the grocery industry with the acquisition of whole foods up next well talk about whether amazon is as big as the rest of the Auto Industry as more people get more items delivered straight to that door and dropping auto sales could impact michelines business the tires and the companys bottom line and you can contact us for the show on twitter, facebook or send us an email. Closingbell nbcuni. Com youre watching cnbc, first in business worldwide my business was built with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Its not just a car, work sfx its your daily retreat. The es and es hybrid. Lease the 2017 es 350 for 329 a month for 36 months. Experience amazing at your lexus dealer. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Welcome back amazons announcement friday morning that it was buying whole foods sent other grocery shares tumbling globally, by the way, but an Editorial Board member at the journal suggests its automakers that should be really worried because people mostly use their cards to go Grocery Shopping thank you both for joining us. David, you know, its a cheeky way of drawing our attention to an important thing cars aroused for. Ive heard people suggesting the drop in gasoline this year might already be attributable to amazon what do you think . David i dont think if im a minivan owner this is not quite the excuse youre going to need to be able to get rid of your van. U. S. Consumers are inherently irrational you buy based on your perceived need, not on your actual need so just because suddenly amazon will be delivering a 30 block of cheese, you know, and some fancy crackers, doesnt suddenly mean that the minivan market is going to shrink, so i wouldnt be too concerned. Okay. Rob re, what about you look, i think that customers are looking for the most flexible and costeffective solution to get goods home, so if that means staying home and getting Free Shipping on a basket of goods, thats great. If that means stopping in a store on the way home from work when your bag of goods is already ready for you to pick up in a quick checkout aisle thats great, too, so i think customers want options and i think they want it cheap and thats what amazon is trying to do here. Yeah, david, i guess theres a lot of things going on that may be working against the minivan. One is just fashion. Crossover suvs have kind of taken off in that regard might we be able to track total miles driven and not just in terms of market share and different types of vehicles thats maybe showing that people are using their cars less daytoday or even owning fewer cars. I think its a little early to show that i think what will really impact that is the rise and the proliferation of Autonomous Vehicles, and thats really going to be where you see a real change in consumer habits. Suddenly instead of being a twocar household perhaps you would have one car that you own and subscribing to another car service, you know, and on weekends youre asking for a pickup truck because youre going to hauling peat moss and on weekdays if youre just commuter its a smaller cass it will be some time before we see real changes and once we do and see that rise of Autonomous Vehicles its going to be a pretty dramatic and very quick shift. And robe, its interesting to think about what kind of shift it will be what do you see in your sector in terms of the impact of selfdriving trucks which may come to market well before selfdriving cars. Yeah, sure. Were very bullish in the trucking space because we think the impact of of Autonomous Cars are coming sooner than people think. The first fully autonomous trucks that run in a platoon could hit public roads as early as 2020. This will have a gamechanging effect on not just all operating costs but also industry consolidation as well as truck utilization. Keep in mind that we have some fairly serious issues with a Driver Shortage right now so if the Trucking Companies have a way to have autonomous trucks on road as quickly as possible and from an ecommerce perspective, were looking at drones and sidewalk robots, a number of transportation modalities that it can get goods from the store to the consumer as quickly but also as cheaply as possible, so i think thats a combination of the two. And michael, theres a lot of Different Things going on here, and i guess the fundamental, you know, question is how much is all this contributing to less driving and certainly people driving less to do those kinds of errands, so, you know, theres a daily trip log kept by atlanta residents in 2011 that showed, you know, over a twoday period 44 of their trips for food were to a store or to some kind of eatery you know, if all of a sudden you take that out of the equation, at least the store piece of it, you know, that is going to make a difference at the margin. It will make a difference at the margin maybe it lengthens replacement cycles which are getting longer in terms of buying a new car and just an idea of what you need a vehicle for and what kind of vehicle. Right. I do think thats going to evolve over time, although as a lot of people would point out and david would, too, a lot more people have pickup truck that need to hauls things in the back so, again, i come back to the idea of perception and fashion when it comes to these things. David, i know you made that point off the top. We own cars for Different Reasons than, you know, than pure utility, but at the end of the day, if people are going to make the choice that saves them the most money, if you dont have to have access to that car and Shopping Trips take out a big reason for that, you know, it can look pretty economical to forgo it like you said and just use other options. Exactly. It becomes a component of your decision whether or not to buy in a second vehicle and what shape that vehicle would be. Yeah, absolutely this will be relevant. I think its a little soon to start shorting minivan sales all right it lives to see another day. Thank you both david and robbie. Thank you. Some of the biggest names in Silicon Valley at the white house today for a tech summit l. President trump be able to mend some fences with an industry hes had contentious relationships with at that time. Coming up former ceo Josh Levenson weighs in a duel in Fantasy Sports coming up next. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. I did active duty 11 years. My in july of 98. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Welcome back it is time for todays fast take we begin with what i think is an overdue move the choice act would raise the tlish hold for shareholder proxy proposals to those who own at least 1 of the company, up from just 2,000 worth of stock at present, michael, which is a very low threshold for billion, billion, billion dollar companies. You inject a oneshare, onevote principle here. Its not one share, one proposal. Yes. The ability to bring something to the table, yeah. And they are from all sorts especially in this era of sort of pet, you know, project type things that come up and disrupt the shareholder meetings and have enough real issues. I do think you should be able to muster support from other people who together own at least 1 because otherwise you would have no hope of actually persuading anybody to vote for it. I agree you can easily say some of the big Cap Companies are too high, but not if youre getting other people on board. 8 billion for apple. Thats a left he chunk. Up next, a big win in a closely watched trademark case it will let asian rock band the slants register their name instead of being hate speech Justice Alito said the active registration of a trademark should not be considered government speech, michael and one of the next sort of topics is the redskins name which seems is safer. Some of the names attached to those trademarks were in yep did i. If this Supreme Court is unanimous in a decision as a principle of law probably means its a sensible call. 80. Tough to skew it as government speech and, therefore, you know, something that that would violate somebodys rights. With the slants it was a selfreverential way to turn it on its head. To own it, yes. The ftc is seeking to stop the merger of draftkings and fan duel which would come more than 80 of the daily Fantasy Sports market, michael, but they created it. They did. I mean, by definite if you start an industry youre going to own it. This would be a merger. One started before the other one started it i think that theres a pretty persuasive case to be made about market power in this particular product, just because the payouts are the only thing you really compete on, right its just random statistical numbers youre betting on. Do you think the two of them they compete on how much they pay out to winers . Fer they are combined and can pay out a high threshold. You can pay less out, and so, in other words, if you can take more from the customer and you have a arguably a different product. You dont think new entrants can come in . And these guys can argue, look, were competing, you know, and and everything else. Speaking of market share, uber is losing ads ubers share of the u. S. Market is down to 77 at the end of may, from 84 just in january and rival lyft says its own share is still undercounted. Potentially so, is and as other competitors out thereto locally in different markets so what it mostly does to me is underscore the fact that uber didnt really have a distinctive advantage except for first mover and brute force in getting out there first and universal adoption. Any way that you would ever think they would let uber buy lyft i think it probably wouldnt happen soon but over time as the market matures for it and you have more players. Got to give them some credit. On the other hand, its not clear that pure scale will get you where you need to go in that market because all youre really doing is subs diegues rides and buying drivers allegiance and most of the drivers drive for both. The mapping thing is a whole otherish ump the once red hot oughtors sect. Also, its been 14 years since is the concorde stopped flying, but could supersonic jets be making a comeback . Llats sti tco ocsi llo men long be. Treasury secretary steve welcome back we set some new records on wall street the dow is up 144 points to 21,528 the nasdaq with an 87point gain, nearly 1. 5 . Still a little bit shy of its high mark at 6239 today and the russell up 11 to 118 time for our cnbc news update with Contessa Brewer hi there, contessa heres whats happening right now. The driver of the van that plowed into pedestrians near a moscow is identified at 47yearold Darren Osborne reportedly from wales and is now in custody one man died and ten others were wounded in the attack. The Supreme Court has decided to hear a case involving district voting lines in wisconsin. Challengers say those lines were drawn to favor republicans this case could have a major impact on gerrymandering across country. Ups is taking on new fees for holidays ranging from 27 to 92 cents per package depending on the delivery option being applied to both individual and commercial customers. And this is the video of the day, right at poor kitten falls into the river in tampa a quickthinking woman on a water bike jumps right in and saves that itty bitty kitty and manages to get it being bapup on to her bike. What a rescue. And then back in goes the cat so back in goes the woman the frisky feline finally found itself fortunately on terra firma. You know what they say fool me once, shame hon you. Fool me twice, find your own way out of the water. Cats can swim, right . Well, watch. Can cats swim im thinking yes, because otherwise she would have been diving under the water to get that cat the cat is doing the dog paddle. Thats a good point were going to have to rename it a little happy end willing story there, contessa. Thanks very much our Contessa Brewer. U. S. Commerce secretary wilbur ross hosting the annual select usa Investment Summit today in maryland that aims to connect global economies and Economic Development corporations in the United States secretary ross was on squawk box earlier and was asked why companies should be investing right now. Were lowering taxes. Were cutting regulations and were stimulating the work force and helping to develop the work force of the future, unleashing our Energy Resources and redoing our trade agreements thats the whole package that President Trump was elected on and its the whole package thats driven the stock market to 1 trillion of gains since the election joining us now in a cnbc exclusive is pete sellek, chairman and president of micheline north america who is at the select usa summit today welcome to you i see that you guys have a bunch of employees in this country a bunch of manufacturing plants. What was the message to you. Well, micheline arrived in north america in the United States back in the mid1970s, and as you said we have 18,000 employees working in the United States now in 20 different manufacturing plants, Research Headquarters and sales offerses. The primary people though are working in manufacturing we have found that the United States is in an incredibly good place to manufacture, and we actually export a lot of what we make we export about 80 of the mining tires, for example, that we make in the state of South Carolina they go out through the port of charleston and of savannah to markets all over the world so free trade is extremely important to us being successful. So is this meeting about the white house asking you to invest more, asking you how other Companies Might invest more, or were you there to make your case to them about why they should keep the borders open . Well, its predominantly to bring companies that have succeeded through Foreign Investment to basically come together and talk about our success and talk about how we can go further and talk about the issues that are important to us as we move forward, but also to recruit other companies that come into the country. The United States is a very flexible adoptable place to manufacture. Theres certainly some interesting challenges such as the tax rate that obviously people are talking about today, but in general Companies Like micheline have been extremely successful coming here setting up major manufacturing operations and investing billions of dollars, and we certainly want to encourage other companies to do the same thing. Well, you mentioned or alluded to some challenges and if its already pretty satisfactory or an attractive place to invest for a global company, what specifically do you think has to happen to persuade those other companies to to try and do so. Well, i think one of the Biggest Challenges that we face in this country is with work force issues despite the fact that, you know, manufacturing provides very, very good jobs in many cases manufacturers struggle to find people that are adapted to the types of skills that we need in manufacturing. One of the things that weve done at micheline very successfully is weve partnered with local technical colleges primarily in the development of what we call the reliability technicians, people that maintain and are set up and run equipment inside our plants. To train those folks requires a twoyear technical degree and we work very closely with Technical Schools to make sure that the curricula is constantly adapting itself to the changing needs of the technology. Pete, you mentioned that you do a business with the Mining Industry how expokesed are you to the u. S. Auto market were very close to the auto market and make a lot of Passenger Car tires and that market this year is going okay its certainly hit a peak, and were being very successful is the fact that we have technology that helps the Car Manufacturers meet their fuel efficiency requirements tires consume about 20 of the gas that a car uses, and we have technology that helps them meet the epa requirements in that area i did not realize that. I was going to ask a slightly different question you mentioned the car industry has peak are we if we move towards more of a ridesharing network, how would that affect your industry, do you think that along with Autonomous Vehicles connected with that will create changes in how vehicles actually operate. The more you take the human being owl of the equation, the less demanding the car is on tires. Vehicles do not accelerate hard or brake hard. They tend to be much more aware of whats going on around them so that will change a lot of design parameters, but at the same time people are going to be mobile this future is very important to help people that are handicapped and older people to retain their mobility as they get into older age and were very excited about the potential. Very exciting to look at it from a tire point view. Appreciate it. Thank you very much. Pete sellek of micheline. How would you like to get anywhere in the world in two hours . Thats what boeing is looking to do as it builds a supersonic jet. Details from the paris auto air show are next and President Trump sitting down with tech ceos to discuss how the government can deliver Better Digital Services Josh Levenson will join us with a preview and how would you like to set the tour the closing bell and have a set of drinks with me and Bill Griffiths all for a good cause to the website to bid for that chance. Do it right now. 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New or unexpected shortness of breath, any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor about brilinta. My heart is worth brilinta. If you cant afford your medication, astrazeneca. May be able to help. large boat honking im living that yacht life life life life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany gany, gany, gany watch this the supersonic jet may being making a comeback. Phil lebeau has a look at the paris air show. Reporter theres now renewed interest in supersonic jets 15 years after the concorde starting flying. This is from boom technology, a coloradobased company its raised 33 million and is working on a prototype that it will Start Testing perhaps sometime next year the ceo believes momentum is building for a return of supersonic air travel. This is not something thats Science Fiction or decades off something that will happen fairly quickly the flight that takes 11 today shrinks to less than five and a half. Reporter boom is developing a supersonic jets 15 years after the cone cord stopped flying it was in existence from 1969 to 2003 and while it got a lot of attention as being the elsewhere sign of being in the jet set the fact of the matter is it was never profitable still, different airplanemakers at building hypersonic planes. Boeing says its investigating building a hypersonic gest that could fly anywhere in the world within two hours. Well get the Business Case to close so that really adds value for customers so the marketplace can expand and i think in the next decade or two youre going to see it that become a reality. Despite the optimism about supersonic and hypersonic jets the fact of the matter is those who lease out airplanes to commercial airlines all say the same thing were a long ways from proving that making money on a hypersonic or supersonic plane is something that could happen i mean, i i think ill just be honest i didnt even realize there was a supersonic jet in the past, that it had gone away, that this was even possible and wed have to be more capable of producing it today. Thats the thing. Imagine in four decades, whatever its been, you should have the Technology Advance to a point where its more comfortable and efficient. Phil said it was not the most profitable or the best experience. Wasnt the concern the noise as well . It was a huge issue. When it was taking off and landing and everything else. Who knows if there will be a broad market for t. Fuel costs are lower certainly on an an inflationadjusted basis back in that period as well. It seems like an obvious fit if they can figure it out and get it right, and i hope first of all, even regular airliners fly a lot more slowly than they are capable of flying, so theres a lot of ways you might be able to improve that. Careful, cautious, but it would be fascinating. And use less fuel. That, too. Breaking news on the american student who had been detained in north korea. Eamon javers has the details. Reporter were getting the sad news from Otto Warmbiers family hes 22 years old and they are saying he died today at about 2 20 in the afternoon. They say it was the result of the treatment that he received as the detainee in north korea where he was held for more than 17 months. The Young American recently attended the university of virginia and we have a statement here from his family who say, unfortunately, the awful torturous mistreatment our son received at the hands of the north koreans ensured that no other outcome was possible beyond the sad one that we experienced today. Thats the news from here. Were awaiting a statement on all of this from the white house. Well bring that tyou eno wh we have it. More closing bell when we come back we want unlimited entertainment. So we can stream unlimited action. Watch unlimited robots. Watch unlimited romance. If you are into that. But we also want more like. Unlimited hbo. Can i stop dying now mark . No cant do mi amigo. Its unlimited. Besides you are really good at it james. Dont settle for any unlimited data plan. Only the at t unlimited plus plan comes with hbo included at no extra charge. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. Welcome back tech ceos are gathering at the white house today to kick off Technology Week and will be meeting with President Trump in a few minutes. Jeff bezos and tim cook and others in working session with adviser Jared Kushner this afternoon. Together, we will unleash the creativity of the private sector to provide Citizen Services in a way that has never happened before we will foster a new set of startups focused on gov tech and be the Global Leader in the field making government more transparent and responsive to citizens needs. Joining us to talk more about whats on the agenda when the president joins them top of next hour is cnbc contributor and former interim ceo at yahoo Ross Levenson thanks for being here. Great to be here. Hi, kelly. First time ive heard the term gov tech. You know, is this all a lot of, you know, happy talk and no action, or do you think substantive changes are going to come out of this hard to imagine substantive changes will come. I was surprised by the term transparency from Jared Kushner, not something weve seen a lot of in this white house theres real issues. Most powerful people in tech sitting down at the white house. They have to be there, though it strikes me that this could be little more than a publicity stunt. The real issues are around jobs and obviously immigration for Silicon Valley companies and other companies around the country. The crumbling Technology Infrastructure that really powers all the government today. It needs to get rebuilt, so havingpeople like ibm and oracle, et cetera, there, is a good thing, but clearly immigration is on the mind jobs is on the mind and infrastructure and, of course, cyber security, and this is this is a pretty tough room right now. Yeah, ross, its interesting, because when you hear these examples of the way the government does business and maybe some of the antiquated methods and technologies that they are using, seems like lowhanging fruit but, on the other hand, how do you bridge from that to what these Big Companies would probably want to do which is really disrupt the whole thing as opposed to on a proboner, basis say let us help you with that. Hard to see necessarily what the broader strategy is and how would you as a ceo try to go in there and approach give and take of all of this look, these ceos are a little bit conflicted because on the one hand, first of all, there is no pro bono, they will give them their time, but what they are really hoping for is that they get government contracts that are worth billions of dollars to rebuild the infrastructure this was started under megan smith in the Obama White House megan, i think, is much more altruistic than perhaps this white house which is clearly said its more capitalistic, and youve got peter thiele and Chris Liddell from microsoft and, of course, Jared Kushner pushing that agenda. First and foremost these companies are looking for business at the white house. On the other hand, you know, i happen to think trump is looking for a villain. He needs somebody to to go after, and whats a better target than than billionaire tech ceos from Silicon Valley. You talk with hatfields and mccoys this is more like rockefellers and mccoys this meeting is going to kick off shortly, ross. You think the president is the actually going to be antagonistic towards this group. Well, look, pure and simple what he stated around jobs and immigration are directly opposed to what these companies do think about these ceos have to go back to their companies and their rank and file employees who are not happy about whats going on with immigration, and workers rr around the globe, so i think its tough on the ceos on the other hand, its important for the ceos to be working hand in hand with the government, get these krcontrac, hopefully work to a better end and at least talk to the president about their concerns, hopefully trump will listen and Jared Kushner and team will listen and my hope is that something good comes of this, but boy, its been a rocky start for these two sides. Thats for sure ross, let me ask you something, if we take this at face value, look, theres a ton of efficiency that could be wrung out of the government if it was able to use modern technologies but theres security issues, of course, that come up, theres accessibility issues im thinking about this kushner line from earlier, he says many Government Operations can go from paper to cloud. If that happened, we know the size and scope of government, how much of a boom could that be for Amazon Web Services or google or some other player . Well, you know, on one hand, youve dwot tgot the hardware ad software that needs to evolve. On the other hand, you have to then train lots of workers to go from doing things the oldfashioned way to doing things in a new world. And that is not something that happens overnight. So on one hand, youll have to rebuild that infrastructure from the ground up. And its massive and youre talking about billions and billions of pieces of data that need to get converted. And on the other hand, you have to go train hundreds of thousands of workers so in theory, its a good thing, but in practice, this will take many administrations but, look, this is somethings that thats been worked on a long time its important thats why the ceos are there. In addition, frankly, they are on probably trumps side in and around taxes. Yeah. Its a pretty tough thing that theyre going to go back n and forth on. You know, ross, you mentioned you think the president might be looking for a villain. What about the public, is the public looking for a villain with Huge Companies and all their power and, you know, their harnessing of all their data, things like that it might not be todays business but seems as if this very small clustering of enormous Companies Might get wrapped into a lot of what is just kind of a dissatisfied public outlook on things yeah, i think thats a little bit inside baseball. I think trump has used technology, frankly, as well as anybody, to win the election its interesting to me that he used twitter as well as anybody has ever used twitter to become president. And, yet, amongst the ceos who are attending today, i really dont see one consumerfacing service ceo aside from amazon. You dont have anybody from facebook there, you dont have anybody from twitter there, no one from snapchat or aol or yahoo these are the big Consumer Services that talk to consumers, and none of them are there theyre all in cannes right now talking advertisers. So yeah, i done know if i want snapchat at the government you know your question is, is could they be the villain, and, you know, there is certainly a need in trumps eyes clearly hes been looking for somebody to attack, and this seems to be a pretty easy target for him but they provide Incredible Services and, frankly, the go government and the United States could use much more technology to make things more efficient. Well, well find out very soon how this goes down. Ross, thank you again for joining us. My pleasure ross levinsohn. Mad moneys jim cramer sitting down with Goldman Sachs Ceo Lloyd Blankfein who weighs in on President Trumps progress so far we can play that for you next. N, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading Companies Lead with digital. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back our own jim cramer sitting down with Goldman Sachs ceo lloyd blan blan blan blankein tonight the new administration and whether trump was fulfilling the things blankfein thought he would. I know there are some people who belief as we do all that sensible regulation is good, but there was some redundancies and a wax buildup as layers and layers have gotten on it, no doubt impeded the economy. He represented trying to deal with it. Now, the devil, of course, in the detail the way you how you look at it depends on what you wanted, but in any case, it seems to have gotten bogged down in the issue. Id say the market now is not what he wants to do, but whether hell be effective in accomplishing it yeah, whether he can pull it off. You can catch jims entire v interview with mr. Blankfein at 6 00 p. M. And jims big gusts this week, ibms rometty and shantau narayen on wednesday goldman is the best performing stock, today, they have a big couple weeks coming up with the stress test results and all that. You do. Yields are up. I dont think thats the whole story. We have a little deal, flavor in the air. That might not be hurting sentiment over there also a lagger group. This is a market that wants to pick up whats been left behind. We know trading wise, the Second Quarter was horrendous. Volatility is so low its pretty much out there so amazon buys whole foods now the idea is maybe there needs to be a raft of more dealmaking to reshape how the industry is reshaping. Everyone is going to rethink where they fit does it mean everyones going to be a net winner or have a place in a reality i do think that at least its building up to a level where we expected it to be, actually. Been a little bit behind what you might have thought this morning, said payments, music and health care are the categories that would be next in terms of where amazon might go on the payments front, Ernston Young had a conversation, he says they expect amount don azot tend into payments amazon told us last year they did 1 billion in Small Business loans. If they really did attack payments in a way, to do more than just facilitate things in their own mat forplatform, it w disruptive payments has been the hottest area in the stock market any company, payments, heard dan talk about first data, paypal, the whole spectrum, people think its a play on the leb tr electronification down the road. I dont get it. It doesnt seem theres enough vig to go around. Whats vig . The spread, youre going to take a spread of transaction a gambling term. A gambling term when it comes to payments, it feels like paypals there, the banks are they probably already have officially ruled out the zel thing. Doesnt chase, by way, have a very generous rewards card with amazon theres frenemies all over the place. Theres also the msci decision on china tomorrow i dont like this whole speck haitian about whats going to h happen. Yeah. It is a big deal if it happens. If they include the a shares in there or not obviously it will matter especially matters more now because in this world, we all inve invest so essentially its an automatic buy for those companies that would qualify if they make that call. I was looking at something earlier, all this stuff is going to get more and more important people trying to game out when you should get in front of it, figure out what theyre going to pick. A lot of dogs being wagged by tails. I like contessas doggy paddle joke from earlier well see you tomorrow. Thank withdryou very much, michl that does it for closing bell. Fast money begins now. Sure does fast money starts now with breaks news. Youre looking at a live shot of the white house where the ceos of some of the Biggest Companies in the world are meeting with President Trump, everyone from apples ceo tim cook, to the man with the biggest news in the last week, amazons jeff bezos microsofts also in attendance combined, these ceos represent an astonishing 3. 5 trillion in market cap these tech lead erst have been participating in Breakout Sessions at the white house throughout the day it all comes as technology surged today tech posting its best day of the year the dow