Bazos. Chairs of intrexon down. The company ceo will join us live to respond on the back of their earnings, too. Thats coming up. Lets get to whats behind this selloff. Mike santolli joins us. There was nothing too specific in terms of news but all day the markets traded a bit heavy. I think you want to point to the flattening of the treasury yield curve. Rick santelli has been talking about all day. Twoyear yield is up. Longer terms are down. Thats a slow growth signal. Also a signal the market is sniffing out the strong retail sales data along with the good jolt of Employment Data this week maybe puts the fed back in play. Fed speakers have been trying to focus the market on two more fed rate hikes later this year. Meantime, the market doesnt feel as though the growth picture is all that strong. Maybe thats what we can infer. Thats hurting financials. You mentioned, bill, the staples were one of the losing groups today. Thats an overbought sector. People have been piling in. I would point out, too, you have walmart in there. Walmart is one of the weakest components of the dow. That actually is a quaucy retail play also being dragged down with the other chain retailers. Even as were hearing, mike, walmart could be the one to take amazon. Do a buildout of its own Distribution Network and charge people that 49 bucks a year or whatever. Everybody is back to the whiteboard here on what to do. And it seems as if the markets just not that comfortable in banking on these profit pools anywhere in retail, except for amazon, which seems to kill profit pool. Thats been the rule. I actually thought there would be a bit of a rally attention in some of those core mall retail type names today. Mostly because the xrt, that etf that follows those stocks, down 15 this week alone. Wow. Thank you. Jcpenney was the latest retailer to report disappointing results but the federal government says retail sales grew faster than expected. Courtney reagan, whats going on . The thing about retail, its a crowded, competitive space. Its twothirds of the gdp. Just because Department Stores arent ringing up stellar sales at register doesnt mean consumers arent spending at all. April posted the biggest increase in more than a year, 1. 3 higher than last month. The strongest categories, autos, gasoline and nonstore retailers. That, of course, is where amazon falls. Weakest categories, general merchandise, which includes Department Stores, only up 0. 3 . Food and services, drinking places and Sporting Goods all a little weaker. Now, the differences do seem to match what jcpenney Ceo Marvin Ellison told me on the phone, employees feel good about their situation, savings are better, wages are improving for consumers, and these customers feel good about the future. The challenge is theres a shift happening in preferences. Dont forget, too, the Department Store doldrums have a lot to do with prices. Goods have been getting cheaper for some time. And in march the bureau of Economic Analysis price index showed general Retail Prices declined 3. 2 from a year ago. A point that was a big theme for retail earnings in week. Many forced to mark down inventory. Good for consumers who are spending, bad for retailers bottom lines. What a week its been for those retailers. You can say that again. Thanks. Breaking news right now on General Motors. Phil lebeau stepping in with that. This is a wire from reuters getting a little attention and for good reason concerning fl economy. General smoerts stopping the delivery of three 2006 models, about 59,000 of those vehicles at dealerships that cannot be delivered to customers because the fuel economy stickers on those windows overstated the fuel economy. This is not a case similar to volkswagen. In is more a clir cal type issue where the stickers on the window overstate by one to two miles per gallon the fuel economy for these models, acadia, traverse. They incorrectly state fuel economy so, as a result, dealers cannot deliver them to customers. They expect this to be clarified and cleaned up next week when they hope to be delivering those vehicles. Will get some attention given everybodys hypersensitivity about fuel economy. Do we know how this was discovered, phil . Not entirely clear, kelly. Not surprising when you have the volume of vehicles coming out from auto manufacturers that occasionally youll have this happen. General motors is sending the correct stickers with correct fuel economy so they can then deliver the vehicles. They have to get those razor blades out and get the old stickers off the window. Buy razor blade makers. Thanks very much, phil. Lets get to our Closing Bell Exchange for this friday with the dow down 171 points. Wey cnbc contributor michael farr from washington back with us. Kenny from oneill securities is at post nine and Rick Santelli checks in from chicago. Kenny, today reminds me of tuesday in reverse. Tuesday we had a big rally. Guys are looking at each other, scratching their heads, couldnt figure out why the market was rally. When i got to the exchange, the same thing was happening. We were saying, why did the market sell off so much . You can point to a million reasons but no single reason apparently, right . I really think i think today is exhaustion and weve prone the technical level. 2054 is the 50day moving average on the s p. Were significant reply below that. It feels heavy. Volumes are lighter. Weve only traded 570 million shares. Its already ten after 3 00. Its not going to be a heavy volume day youll get volume at the end of the day because of the option expiration bought the Trading Volume during the day has been relatively light. It doesnt feel like theres any reason for anyone to rush out and buy stock. The market feels heavy. It felt heavy. It feels like it wants to go lower. I wouldnt be surprised now if over the course of the next week or so we test 200 down at 2015, especially if you start hearing hawkish comments from the fed. Michael farr, what do you think is going on with the consumer here . I think the consumer is probably doing a little better than people think. While the sort of brick and mortar retailers have not had very good numbers, were seeing a profound shift, i think a structural shift, to online commerce and ecommerce. And Morgan Stanley came out with a report that said, were going to see i guess apparel right now is 7 of amazon sales. Its going to go to 20 . So, were going to see more people do more on the internet. And theres a whole lot of brick and mortar still paying leases out there, divisional retailers in trouble. Just because you see bad retail numbers doesnt mean bad consumer. The consumer is still coming in with more jobs and continuing to spend, all be it weakly, but continuing to spend. I was joking if we could buy gasoline online we would. Its such a bother to go to the station and fill it up. We used to buy our razor blades online. Rick, some after the retail Sales Numbers said june, maybe, june is on the table for the feds. Do you think the markets are setting up for that at all . I see a nervousness that shows up in the yield ksh curve. We have charts. For a while it wasnt close we were going to take out the february low, but we did. Hovering around a differential of 95. Its the tightest, narrowest, flattest its been since christmas of 2007. Why do i bring that up . Because i think it epitomizes every time you get some strong data, the curve tends to flatten. Because short maturities closely reflect what youre asking. The fact of the matter is twos are unchanged on the week, virtually unchanged on the day. The long end is down about eight bases points on the week. So, when you get a flattening curve after strong data, where all the maturities are basically lower yields on the day, that tells me its a weak dynamic. The stronger dynamic, in my opinion, is two or threefold. The long end doesnt believe the sustainability to the pattern we see. You see weak quarters, strong quarters and over four quarters it usually comes out a little below 2 . I think the market has it figured out with all the ka buicky that comes back with bringing the fed back. Maybe the Biggest Issue is derivative trade value. These negative rates make everything with a positive rate look good. I think thats pressuring the longend yield and making corporates as hot a red light corporate security as you can find. Some dividend yielding bonds, right, kenny . I mean dividend yielding stocks. Right. I think as we move into the end of the day, it still feels haef, like were going weaker. I agree with that i agree with what rick says. As long as this hawkish commentary coming out of the fed, then you can expect the markets going to reprice some of these assets and have you to look for the market to get a little weaker. I dont think it will crash but i wouldnt be surprised if we get waeshg into next week. A light volume day coming in on a down day on a friday, isnt that usually a dont worry too much . I mean, if volume were picking up in this downturn, you would rely, but right now doesnt it feel like a nothing burger . Yes. But it still feels heavy. Listen,ist friday going into the weekend. Theres no reason to buy them. A lot can happen over the weekend. I think you have to reassess next week. I think the next couple weeks are going to depend on what we hear out of the fed. We have to go, guys. Good to see you all. Michael, come back when you can stay longer some time. Thank you, sir. See you later. Have a good weekend. Lets talk about this story, apple making this 1 billion investment in a Company Called didi. What theyre calling the uber of china. I think its more than that. Susan lee plains what didi is what it means for apples future. Didi chuxing means hong kong commute literally in chinese. They have 99 market share when it comes to taxi hailing, 99 when it comes to private car hailing and they operate in over 400 cities in china. You compare that with uber which operates in 45 to 50 cities in china and anyone thats ever traveled to the mainland, they know that didi chuxing reigning supreme. They also let you book buses. They have this Innovative Service called hitch which allows to you book a chauffer. So you can book a designated driver to you, which will take you and your car safely home. Now, if youre wondering whos behind didi chuxing, we have l alibaba, and jean liu, la novas founder, and they havent had a problem when it comes to raising money because ten cents alibaba, two of the largest tech giants in china were some of the early backers. Now this company is valued at over 20 billion, coming from 6 billion just in february last year. So, theyve come a long way. They have a lot of cash on the balance sheets. About 3 billion at the end of 2015. Makes it one of the most top five most valuable Tech Startups in the world. Not just in china. When we talk about profitability and financials, didi, of course, they havent been so forthcoming in terms of how much theyre making but they say they are closer than ever to profitability and, in fact, they are making money in over half of the cities they currently operate in. And they spent some of that money recently. Just about 100 million to get into this Global Alliance with lyft, ola, rap taxle of course to rival uber. We wonder how these sides are shaping up, how are they taking shape globally . Lets bring jon into the conversation. You know, travis apple is investing in lyft. Whats going on here . First of all, the folks at didi are incredibly smart. Also the people at grab. Whats happening here is a grab not just for this ridehailing market. What we think of it as here in the u. S. In china, throughout Southeast Asia even, some of whats happening with these apps is kind of the remaking of Public Transportation and the remaking of the commuting experience. Its one of the most important things people do with their smartphones. You look at apple looking to grow in china, looking to grow in a lot of markets, they get called emerging over here. Partnering with these particular entrepreneurs, the way that people who are driving thoost these services are paying for things and getting paid. Thats an area apple wants to be in as they try to move into midtier smartphones, as they move into payments with apple pay and Services Like that. The first thing i thought when i heard about this was that this was one way apple could use some of that money the cash they have stranded overseas and put it to work. What you seem to be suggesting is theres an intention here to bring this company, didi, into the apple ecosphere, right . I think theres some of that and the desire for apple to get into didis ecosystem as well. Apple has huns of billions of dollars strand outside the u. S. They also have to be careful because apple wants to be a platform company. As you make these alliances, you also make economies. Look how they are feeling about apple partnering up with didi. Its not to say apple wants to do a lot of these because they could end up alienating important partners and they only have so much attention they can give to various industries, but this is one that could be said to make a lot of sense because its china, because of who the entrepreneurs are and because the way the mobile economy is developing in places like china and throughout Southeast Asia. The other question i this is why does didi even need this investment . They already have you said 99 of the taxihailing business. They have tremendous market share. Theyre already very successful. Very successful. When asked last night on a pretty private Conference Call with jean lichlt e, the president of didi, if they had international ambitions. She said every company should. We do. But right now were focused on chinese consumers going outside china. They still want to operate in more china cities. They want to grab more market inside the borders. If you opened didi as a user into the u. S. Takes them into lyfts service. Well see how these line shakes out. Heading to the close, 44 minutes left in the trading session here with the dow industrials down 174, was down almost 190 at one time in a lateday selloff that people are still wondering about. S p is down 17. 5 and nasdaq down 21. Likely republican president ial nominee blasting amazon ceo, saying the company has a huge antitrust problem. Well debate next whether hes right considering amazon is dominating retail and some other industries, too. Plus, intrexon shares have plunged more than 30 since a report called it the theranos of the public markets. Coming up intrexon ceo will be here to defend his company and claims using mutant mosquitos to fight zika really does work, despite the naysayers. Coming up. About 40 minutes left. Market still coming off the lows of the session. The dow down 167 after having been down about 190 an hour ago. The s p is down 16. The nasdaq down 17. Did i say it was expiration day . Its not. So those comments expired. I had bad calendar information. Chip maker defying the markets. Thanks to Strong Demand for its gaming graphics chips. And so you shall thats the story on nvidia. President ial candidate donald trump going after amazon and jeff bezos last night over alleged antitrust issues and bezos separate ownership of the Washington Post. Listen. This is owned as a toy by jeff bezos who controls amazon. Amazon is getting away with murder taxwise. Hes using the Washington Post as power so the politicians dont tax amazon like they should be taxed. Hes worried about me. I think he said that to somebody, it was in some article, where he thinks i would go after him for antitrust because he has a huge antitrust problem because hes controlling so much. Amazon is controlling so much of what theyre doing. Well, we reached out to amazon for comment but have yet to hear back. Does trump have a case here . Joining us is Andrew Stoltman at post nine along with scott blum, also the former general counsel of the u. S. Senates antitrust subcommittee. Welcome, guys. You know, whats the antitrust case here against amazon, andrew . I think the antitrust case has to do with the fact that amazon is an 800pound gorilla, and they have done things in the past that at least raise an endicia of anticompetitor products. They secured diapers. Com, zappos. Com and those companies. European regulatories have started investigating because of the book sales issued. They bought zapos, right . They skewered them for a while. Scott, youre not buying this, are you . First of all, its seth. No i dont agree with that. So, what seems like donald trump has a problem with jeff bozos owning the Washington Post and some things the Washington Post has said but he hasnt articulated any antitrust complaint. I mean, antitrust law is big is not bad. Theres not a problem with a company that grows big and a large market share as long as it doesnt engage in illegal conduct. Amazon has become a very efficient producer and have delivered many benefits to consumers. Thats what really is the test here, is whether the conduct of amazon is benefiting or harming consumers. And i havent heard anything about how amazon is harming consumers. Look, i feel like im in a bizarro world. Have you a republican candidate raising antitrust concerns and he hasnt provided any details to us. All im saying is when you have a company this big that controls that segment of the market, thats problematic. I know there are a lot of competitors out there, so that kind of allays some of those concerns. I mean but amazon shouldnt take these statements from donald trump so lightly, because once you get the doj, once you get the ftc looking at you, there could potentially be problems. The doj and ftc have welldeveloped standards over a century of antitrust law precedent to determine whether or not there can be a claim made against the company. As i said before, merely because a company is large and has a large market share does not necessarily mean its a violator of antitrust law. One thing, for example, amazon was accused by apple and Book Publishers of trying to monopolize the book marke