Transcripts For CNBC Power Lunch 20170629

And happy birthday to the iphone ten years ago today steve jobs unveiled a product that changed the way we all live. But what will the next iphone bring . What could be smarter than the iphones weve got now . Well explore that and more as power lunch begins right now welcome to power lunch. Im michelle carusocabrera. Nasdaq is the biggest loser percentagewise and nearly 2 decline. Dow jones is on track for the biggest oneday drop since midway bob pisani is at the nyse. Whats going on . Its a good sign of rotation in the market. Thats what has been keeping up stocks all year. Semiconductors are the losers today. What have been the losers . Banks and energy what are among the few winners today . Banks and energy this is rotation, folks. Were seeing heavy volume. The triple q, big volume there thats a sign that people are using it to buy other things meantime, value and growth are getting a lot of interest. Whats value mostly energy. Growth is a problems txy for fa stocks, so your apple and amazon and microsoft. Everything is down 2 . Energy stocks and bank stocks are coming to the fore a little bit. Even chevron is up General Electric down fractionally you can see this kind of rotation going on. This is very healthy, folks. Look whats happened in the first half of 2017 look how unusual it is technology up 17 and energy is down almost 14 . Thats a 31point spread between technology and energy. Thats huge. Its very unusual to see that. Its good to see people saying, okay, lets see those tech stocks and thats a great sign for the markets as we head into the second half of 2017. Guys, back to you. Thats a rundown so far of what has happened in the stock market a number of big cap stocks are falling below key level. Dominic chu is tracking those. Michelle, people use the 50day moving average, the average price of a stock its just one factor one of these trend lines that people look to look at the technology etf the purplish line is the 50day trend line were trading below there for the Technology Sector overall. Its being driven by some of the biggest names that we talk about on a daily basis apple is below the 50day trend line the biggest stock of them all. Turn around to microsoft, a stock that has seen record highs not too long ago but now trading below that 50day trend line a big mega cap name to talk to alpha bat class a shares, trading below there as well. And then we end on one thats not technically a technology stock. But amazon. Com, its hovering right around the 50 day. Nearly a quarter of the s p 500 starts to show weakness like this and traders are concerned that its not the end all be all. Back to you, guys. Amazon i think is a tech stock but thougnot officially lets bring in kevin oleary and jerry. Big rotation, as bob pointed out. Should somebody follow the rotation happening today or is this a oneday thing theres a great case to do just that. What happened with the stress test and where shortterm Interest Rates are more than supportive of these bank names this is a sector that has yet to get anywhere close to the pre2007 levels. If you get those companies now that are able to release capital buybacks, increases in dividends and then you see a followthrough in terms of topline growth, these are some of the cheapest stocks in the market and i dont think its random that were seeing this kind of breakout whats interesting is that its happening almost as a baton handing off between tech and financials at a time when financials seemed tech seemed a little expensive youve gone from very overbought to some of the very underbought and its what will support the market the rest of the year. Kevin, do you agree with that the money is not leaving, its just going to different places. No, i dont agree with that i think whats going to happen is you get a correction on these types of stocks but nothing beats their growth metrics its very hard to say that any bank, any moneys in the bank can have the growth metric that facebook has that touches every sector of the economy by advertising dollars from everywhere else to itself. I think if you look six months from now, youll see the tech still outperform financials. The other thing that is troubling me a lot, these record buybacks of their own equity its telling you that these Infrastructure Companies that should be supporting the rest of the economy cannot find anywhere to put their dollars except to buy their own shares that does not bode well. Go ahead, tyler. Basically, it seems to me what they are saying, to your point, we cannot intrinsically grow, help eps i think its more sinister. I thought you would think that. I look at it this way if youre a jamie diamond, youre constrained in terms of how much leverage you can put on your Balance Sheet and why take that risk. Instead of putting the cash out into the economy, ill buy my shares back. Its wrong it tells me we have not fixed the core problem you ask why we dont get back to gdp growth its too much regulation on infrastructure banking and way too much regulation at the state and municipal and federal level, frankly. Jerry, we focus so much on these sort of sexyier stocks but you like the nuts and bolts that makes the stuff that sexy stocks needs, like applied materials, for example. Again, i dont disagree on some of the big hightech names. Lets focus on another 150 or so names that have been very attractively valued that are in parts of the economy that are doing very well. Applied material, kind of the arms supplier to the semiconductor world, has got a really cool sector in building these l. E. D. Screens for all of the cell phones that are out there and thats just getting started. You lay all of the memory device growth thats underneath this company. You dont have to worry about paying 1,000 times earning for this and dont be surprised if the market has this transition to those types of names because they are out there and its what makes the market so healthy. Also, dont be surprised to the notion that its bad theres been over a trillion dollars in finance in the last ten years and to see that happen in banks for the first time in ten years isnt a bad thing. It could ultimately help and i was going to ask you if part of what happened with the bank is pentup demand for the things they would have liked to have done except the regulators said you cant do that and now they are finally unleashing it. Doesnt that at least in the short term do something for the stocks yeah. The buyback is an unintended consequence of being too narrow and restrictive. The Banking Sector is the only sector in the entire economy that you can call true infrastructure for all other sectors. I dont care whether youre small or large or mid you need a bank. And we have a situation over the last decade where weve turned the banks into something thats so highly they cant make Money Lending money. The rates are so low that the spread that they would get from lending money, its so small they feel its not worth their risk why would they ever do it . That should be your evidence. During the financial crisis, we thought, oh, the banks are going to be regulated like utilities. And thats what has happened. They cant maximize their opportunities. Jerry, thanks very much kevin, stick around. Id like to involve you in this text conversation. Tech getting whacked the financials are on fire bank of america, citigroup, wells, boosting big time and buying back stocks dividend yields around 2 , something we havent seen since before the financial crisis. Are banks the new hot dividend play chris is Senior Analyst at oppenheimer. I assume youve heard the foregoing conversation whats your reaction there are banks basically doing with buybacks what they cant do with in terms of growing their businesses organically i think thats not the right way to look at it. If you look at the simple math of banks, a wellmanaged bank will earn a 12 to 15 return on equity and if you look, you know, gdp is currently at 3 or 4 . If you look at bank loan growth, it is, in fact, you know, 3 to 4 and a wellrun bank is earning 14 return on equity so they then have a choice either they can plow that extra money into dividends, which sticks them into a fixed payout, they can do acquisitions which hasnt always worked out right, or they can chase more of the asset and lending opportunities. So my question would be, do you see them as Growth Stocks or do you see them as fundamentally governmentregulated utilities and, hence, dividend stocks . Well, i guess i take it a point somewhere in between they certainly dont have the growth of tech on the other hand, since were drawing the analogy here, more money than facebook, amazon and netflix combined so there isnt growth but theres a huge base of profitable earnings and the question is, if you force the banks to retain that, which is what the fed had done up until now, they had been forcing the big banks to retain their capital and so the capital ratios over the last two years, the big banks went from 10 to 12 . It gets harder and harder to earn a decent return when you do that now with these elevated paybacks, i think the importance of this for the banks and market, is that its going to, over time, let the banks right size their Capital Stack so that they can then earn a decent return. Chris, do you differenciate between a Share Buyback and increase in dividend which, generally speaking, is hard to claw back . My argument being that let me as a shareholder decide how to deploy more capital. I dont have that choice when its a Share Buyback do you care . Well, a, i think its well, let me put it this way the dividend blocks you in and the regulators dont like to see that and know when a bank cuts a dividend, its a big, ugly signal to the market whereas, if you go back to the whale situation, the regulators were able to hit their brakes gently, letting them pay their dividend, wait for the situation to go back and then you drive on so i think what regulators like about returning it via buybacks, is that you can hit the pause button. You dont have to lie about it you can say youre going to do it and never do it, which i dont like about it. They can say things have changed. The thing is, it makes you focus on your Business Model Share Buybacks dont. Well, the other thing, though, to consider is that banking is a very cyclical business i can show you bank loans over the last 100 years and there are expansion every nine years and then two years gutwrenching contractions when the banks start losing money so it is just a simple fact that, as you said, its a basic infrastructure stock for the whole economy. But given that banks are by their nature leveraged, their sick cla kill swings are going to be more than other companies so i think its good and healthy to maintain that flexibility. Youre most bullish on your price target versus where it is now is a beef processor. Lucadia National Also owns the Investment Bank jeffreys what is so interesting about this company to you . I think very highly of that company and Management Team. They merged with lucadia about eight years ago. The way its been looked at im the only analyst its a bazaar company, right . Its a 9 billion company and im the only one that covers it. How many situations are there like that . Wow. Its now looked on as a conglomerate and people look at it as this weird, stuck together thing. And what it is going to become, im fairly convinced that they will sell the beef business and then what it will be, it will be an Investment Bank with the Merchant Banking capability. If you think about what made the Goldman Sachs Business Model so powerful, you have an Investment Bank that had a good sense of the deal flow all over the world and when it saw a really good opportunity, it takes it for itself and that is where i think lucadia is headed. When it gets there and after they sell the beef business, i bet you a lot more people on the buy side and sell side will gravitate to that. We dont say that much with the bank stock, when they sell the beef stock this is ground chuck. We have some ground chuck during the financial crisis. Chris, thank you kevin, thanks for sticking around appreciate it. Still ahead, ee lon musk gets boring. Not bored but boring first l. A. And now things are getting serious with chicago plus, melissa sits down with the former secretary of the interior ken salazar her interview, straight ahead. By the way, happy tenth anniversary to that little guy the iphone well speak with the only four people who reviewed the very first iphone ten years ago before it was public and he got a call from steve jobs after really cool historical story well look at apepls future as well were back after this. baby crying fly me to the moon elegant music and let me play bell rings elon musk is setting his sights on chicago. Well explain that phil lebeau is live with the details. Phil this is interesting because a couple days ago when it first came out that elon musks company, the Boring Company, is working on improving transportation in cities, people said, really, how serious could this be . Well, earlier today, our leslie picker sat down with rahm emanuel for a story shes doing and brought this up to him she said, well, whats really going on here . Heres what mayor emanuel had to say. I sent my team out there, a group of people who work in transportation and they were impressed and came out with a date in the next three or four weeks weve got dates that were going to narrow down and to look at the city of chicago so they are going to continue talking. This animation was released by the Boring Company about a month ago and it basically shows the vision for these tunnels that elon musks company is building. And what it could be, a highspeed rail, so to speak, vehicles on a sled that could move through Southern California at a very high rate of speed it would help with congestion. Its very interesting that at least mayor emanuel is saying, look, lets talk with these guys could they help us develop a tunnel between Downtown Chicago and ohare well see. Were a long ways away from this becoming a true project. If youve grown up here like i have, you know these ideas sound so good but never happen we were supposed to have a third airport. Never happened all right thanks very much, phil lets go live to melissa at the multicultural leaders conference melissa . Thanks so much, tyler were here at the conference and were now joined by the former colorado senator, 50th u. S. Secretary of the interior, ken salazar, also a host of other titles thank you for joining us. Its good to be here. Its energy week in washington, d. C. , so im hoping to talk to you about that. Whats your take on what the administration has done so far in terms of its Energy Policy . First of all, the United States is in a very good position in terms of Energy Security and i think the progress was made under president obama and president bush and the Energy Legislation that was put together back in those states which has brought us a prosperous place in the world. Second he secondly, i think the rollbacks from the Trump Administration do not make any sense at all. Like the paris agreement, it doesnt make any sense in terms of the longterm narrative and policy program that we need to have to have a Sustainable Energy economy here in the u. S. The secretary of the interior currently may be viewed as prooil and gas, procoal, such as a couple of secretarial orders, one rolling back the moratorium on coal leases and im wondering this is a very profossil fuel stance th whats your take of what is going on i think thats the case i think the rollbacks on the hydraulic fracking rule, those are rollbacks that were not even supported by many in the industry i think people expect to know what is being injected into the underground and what is being injected into our earth. There are commonsense rules and we try to develop a commonsense approach and i think some of the rollbacks are going to come back to the Prior Administration as they try to deal with the reality that people want to know whats going to go into hydraulic fracturing on public land i think the rollback on coal leasing is not a regulatory issue that we have we have an economic issue because the coal industry is in trouble in the United States, frankly,because the economics of gas are making it so much more profitable and there are incentives there so its not a regulatory issue thats keeping the coal economy down its other issues. You would agree that the coal industry should get a boost in order to help what is going on in the marketplace or is that just a natural course of events . Its a natural course of events right now with the economy but i will also say that as a supporter of carbon and se sequestration program, that kind of research and Development Needs to continue, in my view, because its a very abundant resource and one that the fossil fuel Industry Needs to be doing is figure out how to fuel the economy and do it in a way that is cleaner than in the past. Do you think that this is an administration that will help the fossil fuel industry will they merge the renewables and suffer based on what youve seen so far . Yeah. I think at the end of the day, the oil economy, the gas economy, its a Global Economy and theres only so much that the administration can do. I think what happened over the last ten years before this administration is that the doors to alternative energy became a reality. We have more wind energy and solar energy and the Energy Framework is what makes sense for Energy Security in the United States. And weve achieved Energy Security i think the concept of the Energy Dominance to me is a threatening kind of thing that is not what those who work in this world for a long time have been trying to get to. Defense leaders and Energy Leaders and political leaders for a long time have said that what we need is Energy Security and from the days of richard nixon, we got there from about 2010 to 2016 and thats what we have to protect. Mr. Secretary, thanks so much for joining us we appreciate it. Thank you, melissa. Good to be with you. Ken salazar, former secretary of the interior. Coming up, well be speaking to ceo james gorman, his first interview since the stress test. Theres a lot to talk to him about what is going on in the market and the economy and how much banking regulations should be rolled back. That sounds like all of the things that we talked about at the beginning of the show, melissa, and there are issues raised in the wake of the stress test kevin oleary was negative on how much regulation is on the banks and whether or not it can provide the wd40 to the economy thats so necessary. There are certain ratios that treasury officials, fed officials are already talking about sort of softening which could unleash trillions of dollars into the economy that could help banks and their earnings so that is all of what well talk to james gorman about later on. Also, well review wd40 shares. Its not that the banks are suffering. Theres so much money, they dont know what to do with it. They are making plenty of money. Lets get back to dominic chu. Check out what is happening with the s p because we just turned negative for the month of june not a good sign there. Were watching biotech stocks as well they are pulling back as the overall market turns lower the etf ticker ibd helping to drag down the broader index as well as they pass the new Health Care Bill and this etf is on track for the worst day since january and you have am general, bio genera biogen, you name them. Michelle, we are right near the 50day average price for the s p now as well. Back over to you what does your instinct tell you, dom, about whether were entering or are in the traditional summer chop . All of the seasonal stories at the end of may for what will happen, there is a pickup in volatility its important to note right now that the pickup in volume tirat that weve seen has been moved to half a percent up or down if we move like this today, this is looking worse than tuesday in terms of the overall moves in 250 points right there. Theres 250, down more than 1 nasdaq, lets see if we have the percent change on that it was 1 3 4. Yeah. So, anyhow, it traditionally works with the with the lack of volatility going into this, it could be that some say that we are due but to be fair to the bulls out there, people have been saying that were due for volatility for months now. And ironically, guys, the stock we just talked about, jpmorgan chase, its the only dow stock higher right now. How long has there been a correction last year. More than a year, right january was the last year worst start to the year ever and the average s p 500 stock fell 15 in about 30 days. But then the year ended 10 , correct . Correct some people say that was the correction that everybody is waiting for, that it happened 18 months ago. Coming up, a lot has changed since the release of the first iphone a decade ago. It was tiny. No storage well talk to one of only four ily e who were given th abitto review the original iphone and had conversations with steve jobs about what they thought. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com hi sha, everybody, im sue herera secretary of state Rex Tillerson publicly acknowledging his unhappiness with the pace of staffing at his department during a photo op he told reporters hed like that process to go faster this followed his meeting with the foreign minister earlier this morning xi jinping met at a heavily guarded hotel and xi believes the one country, two systems continues its steady process. And Rupert Murdochs takeover of sky to a long investigation after finding the 15 billion deal risks giving the media mogul too much power over the news agenda regulatorshave given fox until july 15th to propose new concessions that would allow the deal to go through. And police near dallasspen the morning clearing a fiery interstate crash which included catching loose pigs on the highway. A semitruck carrying a load of pigs flipped over and burst into flames the driver was okay. Im not so sure about the future of the pigs, however that is the news update at this hour ty, back to you. I was just thinking that ways they dont have an icon for that no, they dont. They will soon now that you suggested it pigs on the road ahead. Major or minor . Thats just hog wild. Sue, thank you. Markets are around session lows as we watch the bigger selloffs in recent months. The dow and s p leading the way. Nasdaq up more than 2 right now. A little bit more. S p falling below the 50day moving average and now negative for the month of june. Lets check back in with bob pisani only the financials stand between us and a much more violent down day, bob. Yeah. And energy is holding up pretty well im sticking with my theme that so far this is a healthy rotation lets remember, moving away from the semiconductors and Energy Sectors. There you see it we all know what its like in the first five months of the year some of them up 20, 30 and now were seeing a little bit of resistance is that surprising after we have those kinds of moves same with the f. A. N. G. Names as we went into june, we saw resistance every one of these stocks are now down for the month of june its not surprising when you see 30 moves and some of the big cap names. At the same time, underowned banks, yields bottomed and banks are is rairaising dividends. This makes perfect sense as for energy stocks, we stabilize around 45 who knows if that will happen in the long term. Its been hard to call. Theyve been up this week. Finally, i want to call your attention to one thing its a little early but are we starting to see the signs of another reflation trade . Crude is up 4 and copper up 3 . The tenyear yield is up 5 . All right. Its a little early. Im just saying, i noticed it. Guys, back to you. Thats why we have you, bob, because you notice those things. Happy tenth birthday, iphone first one on sale in 2007 cost a lot less and it was smaller, too. The rest, as they say, is history. Josh lipton is looking at it live in san francisco. Josh reporter michelle, apple executives described that first iphone as a revolutionary new product and it certainly radically transformed apple as a Business Apple has now sold more than 1 billion iphones generating revenue of 734 billion. Heres another way to think about that stat. In fiscal 2016 alone, the iphone generated reverend nye of 137 billion that means that the single product generated more revenue in all but 35 companies on the planet in 2006, the mac and ipod accounted for 78 of apples revenue. Today, its the iphone that represents 63 of total sales. Now, this anniversary comes at a critical time for apple with iphone sales coming off their first year of decline. Investors have high hopes for that new iphone in the pipeline. Thats a big reason why apple stock is up more than 20 so far this year. But what do consumers think about that new iphone ten years from now heres what they want to see facetiming should be more like a conference call. I want to be able to test for carcinogens in the air guys, back to you josh, thank you very much all right. So ten years ago when that first very apple iphone was released, only four people were given the device ahead of time by steve jobs himself to give him a full review of the product. One of those people is steven levy he joins us now. A lot of things to talk about here what was your first take of the iphone what was your final review so i got it on a tuesday, i think, and on a wednesday i had to go to pittsburgh and i just took the iphone because i was only going to go for the day i got stuck there in a thunderstorm and i found i could do almost everything that i could as if i had brought my laptop so i realized right there, this is something that is transformational everything converged on this device. You had conversations with steve jobs about it, right yeah. One day im just walking down broadway listening to music on this new iphone and i get a call from steve jobs, how is it doing, tell me about it. He was wondering how i was going to rate my review. And what did you write . I was pretty positive i said this is something really amazing and there was incredible hype about this, as you remember people just couldnt wait to see this even though it had been introduced publicly in january, apple sort of pulled back behind the curtain and everybody wanted to know about it and couldnt get any information about it it was being called the jesus phone. So we wrote i wrote and the other reviewer did, too, even though the hype is incredible, this is a device that lives up to this amazing hype. Jobs, as others have pointed out, his genius was in discovering things that we wanted or needed before we knew we wanted or needed them thats right. So when you were thinking about what you wanted in a new phone, remember when we used a split phone, a clam shell, stuff like that, he knew we wanted not just a phone but a computer in our pockets, doing everything that a computer could do and he wrote the code into how that make it happen base there wecause there keyboard in there. He said im going to drop the keyboard onto the screen and come up with new ways to navigate there using this multitouch with a swipe in order to navigate your way through this world and put the whole world into your pocket is there anything that you wanted it to do that it still doesnt do yet lets see i still cant really type on an iphone as well as i do on my computer im not going to write long stories on my iphone. But you can dictate to your iphone and its pretty good. That is very true and thats what i find myself doing more and more as Artificial Intelligence gets into the phone with siri, the intelligence assistance, we can ask her for things and it does things for us so you dont even have to swipe through the hundreds of apps. Im not sure shes all that intelligent. You can change the voice. You can do the british guy are you happy with the evolution . Ten years on, has it changed that much . Has it changed more than you would expect or less its Getting Better and better and better and apple has trained us that every two years we have to get a new one and people are betting on apple to come up with an amazing iphone 8 and people are saying, ive got to get a new one there. Is that still true . Because i think the development between the iphone, five years in, was so much more amazing than ten to five and i wonder if in ten years it wont wow us as much. Well, in ten years, i think one of your guys asked about what its going to be like in the future when the guy who says its going to be in your body, thats getting pretty close to the truth. Its not going to happen all at once but were dictating to it the sensors are going to get smarter so theyll do more things for us there. And physical manifestation of the phone is going to be less important than the whole Software Suite that does things for us interestingly, amazon, head of apple on this with echo because you talk to it no matter where it is andwhere the device is i less important. Super interesting point with the last one there i was going to ask you, is there some connection to amazon and you nailed it. S thank you, steven. Thank you. Were watching the selloff on wall street only the financials and Energy Sectors are higher why we look at the s p 500 sector heat map s p breaking below the 50day moving average its now negative in june. What about the bond market Rick Santelli is at the cme. Rick i see the equities that is buying pushing treasury yields not now. Look at the tenyear intraday chart that came close to touching 230 we have backed away a bit but were still up 14 basis points lets look at the beginning of november for tenyear. Thats the area were playing around with after the huge selloff that pushed rates up and really started around the election, of course, and if you keep that, lets look at the dollar index and how it progressed very similar in terms of how everything is keying off the big Technical Levels that we swooshed through and especially the euro versus the dollar its surpassed its level and many believe well see 115 now its half a handle or so away power lunch anchors, back to you. Its happened so quickly. Is this one of the pivotal weeks where everything changed is this rotation permanent or were waiting for more proof that we can actually justify are we going to go back down to the 2 level on the tenyear . I dont know. For eight years, all we did was listen to janet yellen and now it references draghi maybe this is all about europe right now. Big draghi. All right. Were going to meg treerll after the break because shes covering the Martin Shkreli trial at johnsons we care about safety as much as you do. Thats why we meet or exceed 15 global regulations for baby products. And where standards differ, we always go with the toughest. Johnsons. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. Remember all those headlines about the lack of volatility and how slow its been well, its back. Industrials lower by 200 points at this point. S p lower by 1 and nasdaq is lower by 2 . Financials and energy, there is the heat map when you break it down into the ten different sectors. The big momentum stocks are getting sold off and moving into value plays like financials and energy which hadnt participated as much recently. The first shall be last technology down more than 2 on the session. And financials after that big stress test yesterday where everybody got an a, all of the children were above average. All right lets bring in matt at the new york stock exchange. I want you to pause it or answer the question that michelle talked about a few minutes ago is this a couple day phenomenon like weve seen a couple times this year . We saw this recently. We were all worried about the financials and they had a oneday mini crash and then thet we had a busy june we got a lot of rebalancing and portfolio adjustments. Financials are getting strengths today. Where are you going to get your money to buy financials. You will rotate some of the gains you have i am not too alarm of this it had not had happen for a long, long time. Now we have the fight of 30 days, does that give you any pause . Whats interesting the other day that someone noticed that the vixs traded below 10 every time it dips below 10, it is worth buying it i am not worried about it yet. We have earnings coming up, thats a focus lets take washington out of the picture completely it will be nice. We can focus of fundamentals for the company. Keep dreaming. What about the rise and yield thats coming as a result. Now rates keep on rising over there. What does it mean for us well, you know, it is hard to say and our feds are under some of their own questions here. Thats what i am going to probably looking at. Are we raising rates too fast here this is probably going to bet of the financials of the banks and not only of the stress test of the standpoint but two or ten years. Thats why you are seeing money pouring into that right now. One of the sectors highlighted is energy. Energy is a strong place in the second half, it is so beaten down and so much reward to this and not much risk. These are the sectors that we are seeing rotations today on a quiet end of the month type trade. All right, thanks so much dont move, we got more power lun lunch after this. Well talk about the list of billionaires in the states gotten longer. Robert frank, on who may be losing their wealth, dont move. From my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. What will you create with your points . What . Pony neighing] 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. A used car, 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 to power lunch. President trump will meet with Vladimir Putin next week. This was confirmed by henry mcmaster, this is a subject of intense scrutiny because of all the issues surrounding the russia interference and disagreements over ukraine and syria d t syria. All this while the special counsel investigation is going President Trump will meet with Vladimir Putin next week at the g7 summit back to you. We appreciate that. Certainlily thatsy thats the c meanwhile, lady gaga, there you go not once but twice in his opening statement, well have the latest from lady gaga of this case. Coming up. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. All right, folks, welcome everybody back to power lunch. I am Taylor Matheson the next ten years apple revolutioni revolutionized music and phones and so much more, ten years ago this day thatsthe day that steve jobs announced the birth of iphones it is on the horizon now for the next decade, the best of the best, the number 5 ranked women financia financials well tell you where she puts her money to work right now. The market sell off housing prices and much, much more the second hour of power lunch begins right now. We begin this hour with two big breaking stories out of washington, d. C. New numbers out for the c Congressional Office lets start with the ceo. Thats later for the most recent estimate from secretary mnuchin who has put the dates sometimes in september it was unchanged at an average of 1. 9 and also predicted of inflations of 2 target next year on Interest Rates, the forecast ticked up to 2 in 2018 and slight liloly in 3 in the g run. It is cutting china ease bank of ding dong from the u. S. Financial system, calling it a conduated. The agency says it transported steel and cold air from china and smuggle in luxury good news. All of this comes as south korea prepares to meet the p t today as you noted that these are sanctions on chinese institutions, not north korean institutions, when you look at the annual report that comes out of the United Nations security council. This made it clear that it was chinese banks that were helping the North Koreans, they have been dealing their weapon programs a programs thats the hope that President Trump could work with President Trump xi jinping in order to put pressure oconee n north korea. This is an accelerating steps now. Got it, well be watching secretary mnuchin as soon as he walks in right now to the nasdaq, bob, one or two things of the cause of this yes, over owned text stocks and banks and energy stocks. I am sticking with that theme. Some biotech as well and whats weak today semis and under loved and under armed. We know these stocks are under. That makes a lot of sensing with the names of the big growth names that are out there with facebook and amazon apple. Crazy runs going into june since june hit, they have been resistance of all of the downside of the month of june. Elsewhere, banks whats happening. Banks announcing dividends of the last couple of days, we have been seeing banks growing to the upside and thats happening again today. Again, down for most of the year energy stocks, i have no idea if oil is going to stabilize today. Finally, i have been pointing out the inflation trade this week, i think it is a little early, Pay Attention because it is been helping to move material stocks and bank stocks, just a quick note on blue apron is holding up despite a lousy day, of the trend of 10 to 11 back to you got it bob, thanks so much. Apple iphone today, ten years old. The iphones have come a long way since june 2011. The first generation iphones have a screen of 3. 5 inches, maximum storage of 16 gigabytes. Now, it is doubled that. There was no video capturing features, you could watch but could not shoot it what will iphones look like in the next ten years lets bring our editor chief at the verge, mr. Patel, you are first, look at your crystal ball, what do iphones evolve to over the next ten years. The dominance story here is convergence. Sorry, we have to interrupt you. Lets go to the Briefing Room at the white house. As always, i will be back to answer your questions. Thank you today the Trump Administration is continuing its efforts against the government of north korea. Despite multiple Uns Security Council resolutions, the government of north korea continues its Nuclear Ballistic missile program. Today, the bank of dadong to be a Foreign Financial Institution of primary Money Laundering concerns under section 311 of the usa patriot act. This bank has served as a gateway for north korea to access the u. S. And International Financial system facilitating millions of dollars of transactions for Companies Involved in north Koreas Nuclear and Ballistic Missile programs the United States will not stand for such action. This will require u. S. Banks to ensure that the bank of dadong does not access the u. S. Financial system directly or in directly through other foreign banks. This reaffirms the Treasure Department to ensure north korea is cutoff from the u. S. Financial systems. In addition, the department of treasurys office of foreign criminal has sanctioned two individuals and one entity for their continued support of north koreas activities while todays actions are directed at chinese individual entities, we look forward to work with the government of china to stop elicit financing of north korea we are no way targeting china with these actions well be meeting with china and other countries at the gsum many it next week to further our efforts and cutoff north koreas elicit activities. North koreas behavior will not be tolerated with that, i would be happy to answer any questions thank you very much listening to the congressman introducing this of the north koreas travel ban, do the department have any kind of scrutiny i have no comments on that today. Well continue to look at a range of options as we are serious about them stopping our activities financial activity that you are trying to stop today and the access of direct and in direct of this particular bank and the u. S. Financial market. This is significant since it is the first bank that we cutoff under this and, well continue to look at these actions and continue to roll out sanctions as i said in this case, it is millions of dollars, we are committed to cutting off all illegal funds going to north korea. Yes, when we put sanctions these banks will not be able to access the u. S. Financial system directly or in directly so it is a significant action. You made clear that this is not a punishment against china but the white house wants to put pressure, are you satisfy that china will see it that way and what china is doing currently. President trump and president xi jinping has had productive conversations. We are taking these actions to show the seriousness in which we are going to deal with it. In the back. We are trying to get better picture of what it is going on in north korea i am not going to go into the specifics. We have specific intelligence and well follow the money and cutoff the money. Will you be able to explain to us, i know you did a research of the actual Economic Impact that you have on the North Koreans and how that Economic Impact actively may cause them a change in there position i think as you know and these sanctions were effective and thats what brought iran to the table. Well continue to work with our allies and speaking with people at the g20. We are firmly to work with other nations and cutoff elicit financing. Can you give us a head ups of the action you are announcing today and you used the term in your statement, is china an enabler . Again, this is not directed at china this is directed at a bank as well as individuals and entities in china again, whether china or anyone else, well continue with sanctions. Again, if we find other activities, well sanction other activities, no off limits. Last week the president tweeted the president tweeted, it sounds like hes given up on china, is he i think well continue to work with china and everyone else the president is firmly committed that well cut the money off to north korea until they behave properly are there any plans in place in case healthcare does not get done and janet yellen, is the administration considerin considering agaconsidering thats a lot of questions no decisions have been made, gary cone and i will make recommendations to the president and no decisions have been made on that. We are committed to get tax reforms done this year it is one of the president s Top Priorities of Economic Growth. The people of america understand that, we need Economic Growth and we are committed of doing that i suspect that healthcare will get done, regardless, we are committed to get tax reforms done so many questions, i forgot your first one. Let me follow up with you on tax reform if you dont mind paul ryan had said today that things are on track. Why should the American Republic believe that things are on track with healthcare reform why should the American People believe it . Of course, believe it. We are all 100 committed in getting tax reform done this year the letter of lawmakers suggesting sanctioning the bank of china my question to you is, have you considered that idea and do you think that idea is on the table. The second question is the debt ceiling. My understanding is the debt ceiling a drop dead time for you all of october, does that give Congress Additional time in your mind or would you like them to act earlier . I have not given any specifics in regards to the drop dead date. What i have said is that i Hope Congress acts before they leave. Yet, we do have contingency plans. The market should not be a concern. For the benefits of everyone, the sooner the better. We are taking significant action today. Well take very significant action rolling out additional sanctions for north korea until they stop their behavior are you aware of other banks you are providing similar access to north korea to International Financial systems. Again, let me say, we have a team of people both in treasury and working with the intelligence agencies and as we see other banks or individuals or enties, you can expe this is something we are taking seriously, this is a big priority of ours not targeting china but this is aimed at chinese banks. Does it speak to message that you are sending to china in any way right before the g20 or is this really an indication of how limited your options are in terms of dealing with north korea directly i would not say it is limited in what our options are of the contrary we are committed and well work with everybody and nothings off the table where we see a list of financing, well stop it there is no message before the g20 the message to everybody is this is a serious issue and well work with everybody. If there is elicit financial going on, well cut it off from the u. S. Financial system which has a Significant Impact you are saying in no way that this is a message to china i said in my comment this was not aimed at china this is about north korea and how serious we are taking this and kind of whether it is china or anybody else, well take this seriously. [ inaudible i am not going to make any comments about that. The question here, you said the president firmly committed that well cut money from korea until they behave properly how do you define success with that you will know success when you see it i think everybody will know success. Their behavior is unacceptable and it is clear kind of, we want them to stop doing Ballistic Missile programs and others. It is very clear i want to ask you something that a lot of people dont understand and you are uniquely qualify to explain the administration and congress are saying there will be 321 billion in savings from the healthcare bill that are out there. But, is that because people and benefits are taken away. Is this really a take away not at all. One of the flaws of the scoring on the cbo when you look at the number of people is that again, there is a lot of people when given the option will decide not to elect to take the healthcare. It is a bad deal it does not mean people are losing healthcare. I think Everybody Knows obamacare was a giant tax heights on the economy and slowed down the economy and it is another reason why we continue to have sub 2 growth of the last eight years and this administration is 100 focused and creating Economic Growth and creating jobs and creating proper wages and getting this economy back to 3 or higher right here on the front. Congratulations thank you very much can you talk about, would you advise for prioritizing debt payments or not. Do you believe that review of chinese investments in the u. S. Should be worked out or more involved let me make the comment on that i can tell you the reviews are careful and involved no matter on whos on the other side it is important for National Security and well use that to the maximum powers and, in regards to priorization, congress should have quickly raise the debt ceiling and we should pay our debts on time thank you, i was going to say congratulations, too thank you two questions, first, you are a participant at the last Imf World Bank meeting, certainly no there is a concern of the u. S. Policy is of the involvement of the International Monetary fund i had a pressure to meet with kristine at least a dozen times. The imf is looking at currencies and the worlds economy. The imf is helpful in working with europe, i think that could have been a major problem this summer that would have had a significant concerns to the markets of the economy i think she was a very important part of this negotiations. Well, my second question because, how do you feel about maintaining the u. S. Level of support at the iff and specifically as apart of the relief for greece because the u. S. s role is through the imf let me comment, the imf commitment to greece was quite small, not even sure if greece is necessarily going to use that i think the significant was a stamp of approval. There is no direct loss to the u. S. Or the taxpayers. We are supportive of the imf and look at all contributions carefully and making sure that we are spending the taxpayers money properly in the back. Can you verify which entities is being sanctioned . The chinese officials did not mention of the bank dadong there is two different actions against the bank of dadong and there is the three old fax sanctions that you pointed out. You will see. It will be a release on the banks. Again, i am not making comments on the behind the scenes how we can communicate. You are a mathematical man, what are the chance that well get a 15 Corporate Tax rate or 25 Corporate Tax rate in the final bill let me comment. Tax reform is a pass fail exercise, we are going to get this passed for a plan thats good for the American Republic we are working with the house and the senate and we are going to get a bill thats passed for the americans and putting people back to work i will comment on healthcare although it is my primary area the healthcare thats been in place is a bad deal for the American Republic, thats why a lot of people are not using it it was a giant tax hike to the American Economy and premiums have been going up a ton so we are looking at making the system more competitive so people can afford it airports all over the world have to step up Aviation Security this is the product of a months long discussion that resulted in yesterday i am wondering if you, sir, are convinced a and ae you satisfy of the Security Risk if for example, Certain Airlines are cutoff. Let me just say i can think of no body better than general kelly to protect our country in this position. I had the opportunity to discuss these issues with him, with the National Security council. I am not going to comment specifically let me make it clear, the safety of the American Public is our upmost concern well never put economic issues, okay, where well risk the lives of the American Republic on tax reform, are you going to be revenue mutual if you dont get the growth and revenue, what are you going to do do there will be complete transparency when you come out with the plan. We are in the process of listening sessions and we met with hundreds and hundreds of ceo and think tanks and various different groups i was over at the house twice today talking to people at the house of representatives we have been in the senate and listening and as we develop this plan, we said we are going to have a responsible plan thats paid for and we do believe in dynamic scoring and well take into accounts. Mr. Secretary, the gep for the First Quarter came out today and we anticipated during the campaign, the president repeatedly promised to have growth rate of 3 and 4 how much of that 1. 4 is attributable to the administration or in actions when are we going to start seeing the 3 to 4 growth that the president promised. We believe we can get to 3 or higher gdp. We have been cleared thats no this year or next year but it will take some time to scale it. Our projection over the ten years period is 2. 9 which i think is quite conservative and scaling up to 3 and staying there. Both the president and i think we can do better than 3 to the extent we can get healthcare passed and tax reform passed and roll back regulatory issues if we are working carefully both in financial and energy and in other areas. We are very comfortable that well hit these growth projections. I am going to take two more questions and then i am going to have to turn it back to the super star over here the president have said before, if china is not going to help solve the problem then the u. S. Will. Is there a deadline such as g20 meeting and an you wiultimatum . The president has made it clear if there are deadlines, hes not going to advertise those deadlines. So i am not going to make any specific comments as to what he has a deadline or if he has a deadline when it is. That would make absolutely no sense. I can assure you that well have conversations with our counter partners about this next week and we have been having these conversations and well continue to do more on this one more question, right here. It does not appear this the house and senate will pass sanctions related to russia. I dont think we got a straight answer from the white house whether the president supports that the administration supports that is treasury. Let me just be clear, again, not only the sanctions that we have on north korea today. Well continue to put more sanctions on iran around the Ballistic Missiles and other progra programs well continue to use this and not withstand anything that congress passes, this administration will use sanctions to the maximum amount available by law we dont need congress to tell us well do more whether they tell us or not we got plenty of those on as well again, thank you everybody and a pleasure to be here. Thank you. This was treasure secretary Steven Mnuchin talking about a couple of chinese individuals, south korean involved in aid in and the betting of the cause of north korea. John harwood are in washington following this story and had some comments of the future of tax reforms which he said the administration is 100 committed to get tax reforms done by the end of this year john harwood, mr. Mnuchin cleared and repeated that this was not directed at china. How can it be read any other way . The president last week sent out a tweet saying that china had tried and he accepted that china had tried and had worked as the Administration Notes with alarm that north korea appears to be Going Forward with tests under those Nuclear Programs this is the step that they took and theyre trying to separate finding fault with china from this particular Financial Institutions i dont think anybody is going to expect this is going to be consequential. There is some history here. Back in 2007, they did sanction, chinese bank in makcao and that brought the koreans to the ta e table. They seized 25 million of north korean money this is a play book thats been in place right now well, thats right and i think the administration also said theyre not taking military options off the table, just dont know whether those would be effective or even house seriously they are on the table but as i said, they felt the imperative to take some actions. Should we expect more such actions, is that our sense that this could be the first of several such maneuvers thats hard to predict. What is clear is that the treasure secretary was trying to make a separation between the actions thats taken against north korea and actions against china. You heard him talk about in the press conference of the committee to review and deals and investment concerns. Hes been bringing that up a lot lately as hes been speaking with investors and bringing in Foreign Investors to invest in the u. S. Because he wants to send a message that america is opened for business even as you have this sort of turn of a n s nationalist. Theyre trying to walk a tight rope there between putting America First and also ensuring that Foreign Investment does not stop sure, guys, john hardwick, lets not forget of the death of otto warmbier. There are three sanctions that are issued here, two of them are against chinese and one is at a shipping corporation and the whole thing is against the bank of dadong, it is the primary border of china with north korea with the bridge that has most o f the flows of goods and services it is difficult to read this anything of a backhanded way to sanction china well, people read it as they want to and china will wait to see, well wait to see what china has to say, the administration took pains to indicate thats not the message that it intended to send to secretary mnuchin said over and over it is going to be an interesting week, well all be watching as the g20 meeting gets ready to take place next week and in germany where there will be a meeting with mr. President and putin. Folks, thanks very much. Did you also notice when secretary mnuchin, he was not a secretary yet, he appeared on cnbc talked about 4 growth and hes not talking about that anymore. I felt that the continual walk back of whats becoming evident that tax reform is not happening nearly as quickly. It is also a pass fail reform his words. No compromise. Yeah. We bring home the ega or dont come home. Or bring home a c and pack. Here is whats coming up on power lunch. Lets take a look and see where it is right now. Lets look at this camera, i no that there is the dow down 166 points, a little better than it was, well talk soon of one of barrons top ranked female Financial Advisers and what she will tell us about the market. Nike reports earnings after the bell ow y wt u edo yone t kn i have that one and much more, power lunch. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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The online lender is offering a deal that they can have both theyll give a months worth of avocado toast anyone taking a mortgage out during the month of july back to you. Thank you very much. The dow is down triple digits and at one point down to 150 points and now 152 s p 500 is negative for the month so far there is not much time left in the month. Just one more trading day. All the big names are down such as they are intact, google, facebook and amazon. Banks are getting good report cards from the feds yesterday. Many are expected to raise dividends. This years list top 100 women of Financial Advisers. Our next guest is one of them, world cup of our top five with stephanie here what do you see as you look at todays stock market as bob has been saying of the rotation from the years leaders tech in financials, is this an enduring move or what, stephanie stiefel. In 2010, it was the gulf of Mexico Oil Spill and 2011, it was the loss of our aaa rating debt ceiling battle in 2010, the markets moved 15 and 2011 at a bare market at 19. 5 . We come to expect these moves if you will. I feel that we are doomed. Evaluations were so high but they were not sustainable. So the fact that is whats correcting in the past week and we are starting to see some leadership in financials and energy is not surprising do you like that of the grou of stocks are not named because i dont like the acronyms. I think it means that the market is widening out think of the disconnect. You have Companies Like amazon and netflix trading at over 100 times earnings in the financial world you can buy dividend paying stocks with phenomena management look at jp morgan, it has a yield thats just kicked up to 2. 3 it has four monster businesses that they keep on gaining market share. We have the best ceo in the Financial Service world in jaime diamond. Thats where the growth is. At what price . I am allergic to over paying for things thats the bottom line at the end of the day there are opportunity us and other sectors that you get so much value and other businesses another one for investors, what about black stone . It has not moved. Except this year finally. And you are able to buy that business and you have a phenomenal Management Team and you have a powerful ceo and it is trading at a discount to its Asset Management pierceed it is a back door way to get equity exposure which everybody wants some exposure in a liquid yielding way with the dividends over 5 . How much of your accounts of your individual accounts that you run to people are individual securities of atfs we prefer doing the research directly and we own the security, absolutely stephanie steifel, congratulations. Thanks. Money coming out of bond prices as well you got yields on the rise, what does it tell us about the markets. The trinity team will weigh in on todays action, next most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Is this indicative of a larger summer swoon or a case of market rotations less bring in our noble professor economic of yale right professor sheller . Yes, and it is free it is free. The best of the world there is no over evaluation there for something thats free, cannot be over valued. Lets talk about where you see stock prices radight now in lig of what i refer to earlier today, feels to me of the beginning of summer chop which we have seemingly most years what is your view about where u. S. Stocks sit right now . It is at an unusual high, the only time in history going back to 1881, where it is been higher, a, 1929 and b, 2000s we are at a high level and it is concerning on the other hand, when it reached to the 30s in late 1990s, it kept ongoing up. It is not definitive, it is a source of concern. Without taking me through the masters or doctoral course on it, whats the case measure . The price earning ratio is a concept that goes way back the problem with earnings in the denominator of that ratio is theyre unstable from year to year they can make sharp swings i thought campbell and i were original when we propose a ten years of average earnings for the denominator. It was mentioned before and going as far back as 1911, it never took whole so i guess barron was publishing a fiveaverage it is been talked about but never settled in it works better in priedicting long returns what you said at the top is frightening to some people listening. It is a certain level right now and you see that back in 1929 and 2000s . That would frighten some people yeah. Well, i think people should be cautious now we have a high market. That does not mean i would avoid all together so, the u. S. Has an unusual high stock market compares to other countries and one can invest in low sector as well the world looks better and cheaper than we do yeah, yeah. Oh. The world believes in us. I guess theyre buying us when we should be buying them, is that it well, i think it runs in diversify, one should have a little bit of everything if one does not diversify, no foot of europe or the emerging world, this would be a good time to do that professor, thank you very much, Professor Robert schiller. My pleasure we should all take his course. Leave melissa out of it she will win lets talk bonds. Treasury yields up for a tad today. Joining us now, all right, it is a ten year yield of 5 or so still low and historical, whats the bond market telling you . It does not necessarily mean which one is radight or wrong, they cannot both be right. The stock market is sort to say buckle up, it is going to be great and hard to imagine the scenario which both of those things are true and we see that in terms of whats happening of economic prices or the in verse of those prices yielded. Okay, which view do you take . So we pretty much think that the bonds probably telling a reasonableab reasonable story here. We do kind of believe that the best here wont come to fruition in terms of Economic Growth we dont see a disaster looming on the horizon, but we think the 3 , 4 stories, radical stacks reform, rationalization of Environmental Issues may have sounded good, but theyre aging poorly as a promise. Thank you, max. For more trading nation, go to trading nation. Cnbc. Com. Earnings after the bell today, is the stock a buy ahead of the results up only 5 yeartodate. And now the latest from tradingnation. Cnbc. Com if youre unhappy with your returns while trading actively, consider taking smaller positions over a greater investment time frame. Evaluating trends over multiple weeks rather than hours can help nstelyer locate more coisnt tradeable trends while possibly trading less frequently whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. 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Weve got a buy rating on nike sam, aside from the earnings per share number, the obvious stuff, what are the one or two key numbers that you are going to first look at tonight . Well, were going to look at the inventory levels and look at sales by region. More than anything else. I know a lot of people are looking at futures they dont correlate the way they used to these days. I think that will show up in the domestic wholesale numbers. Whats key in the inventory what are we looking for, the guard inventory . I assume you want to see less than more . We want to see it basically in line with sales, or at least, you know, in line with what the first 13 weeks of fiscal 18 are going to look like you know, because its always forward looking. They did the inventory for the business theyre going to do tomorrow, not the business they did yesterday. What else is going to be key tonight with regard to guidance . Is it going to be just eps or revenue or what else i think weve got to look at revenue. Weve got to look at the net impact on revenue, how theyre approaching marks, like ecommerce, given the i was going to ask you about that what do you think whats the question to ask about the deal with the potential deal with amazon i think the question to ask is amazon really going to get rid of the thirdparty sellers across the board and maybe give nike a page on amazon, rather than just having some items sold, and then stopping those items that are on amazon from being sold by third parties. I think its very important. Theres over between nike and converse, theres over 80,000 items listed none of which nike is selling directly to am a shon. So i think nike would like control of that, more so than the sales, really, the control for the brands sake and how that spells out i think is essential for whats going on in the longterm health of the brand. Sam, in an hour youll have a lot of work to do. Sam poser, thank you very much. Thank you for having me. Check, please, is next. Check, please. In the category of things making you go, hmm, at levels that last seen in 1929, and 2000, very bad times for the stock market he didnt mention 2008 and 2009, so i suppose thats a positive but made me nervous. We just talked nike i said this before, ill say it again, read the book shoe dog, the biography of phil knight, the founder of nike. Its a business book, but not really its good, right it was the most i listened to it on the audio book. It was the most enjoyable business book in years if this was energy week at the white house, next year is going to be g20 week trump may also meet with the chinese leader xi. The closing bell will kick off in a few minutes i dont want to call it a stock selloff, stocks are selling, okay this is not an abnormal move but given the lack of volatility that weve had, i guess we could say it is an abnormal move the s p negative for the month of june, i cant remember the last negative month we had i know somebody will give it to me very quickly. But nonetheless. We havent had a correction in 18 months so every time you see a move like this, you think, okay, re version of the mean, its going to come around at some point interesting to your point, brian, about volatility. Was it two days ago, market page story in the journal about the lack of volatility the minute that happens, right around the