Part of a key index. You see ftse is up there, attracting index of half a percent. Well have details. It sounds like baseball but i will have an impact on the market. Plus, new details on drama between two of the highest paid ceos. That would be viacom and cbs. Howard schultz says starbucks could be joining the rain, of cooled beer. Well hear from him. We ask Howard Schultz about that. We start with the big day in china. How they could get a nice pop after the close of trading today. Welcome back, bob pisani, hi. I wanted to stay in hawaii, but i came back because of you two. I want you to know that. Thats why i came back. Look. We may not get a pop in prices. Its the biggest indexer. Right now theyre behind the indices. So msci is in the process of putting all of the u. S. Listed chinese stocks in their indices. This is a big deal because china is becoming a part of the worlds economy. The second half is happening tomorrow. So tonight were going to see a lot of volume in these stocks here. So let me give you a typical example. Heres alibaba, the biggest of all the chinese stocks. Going to go in the indices tomorrow. Which means everybody whos closed or bound to them are going to have to buy the stock. Thats a lot of volume right now. 18 million shares of alibaba. Thats above norm normal. Another one right here is chi hu, 2. 1 million shares. Thats another one. Bai baidu, c chip. That includes when we talk about all the time the emm. China waiting in that is going to increase. Believe it or not all the stocks in the index, none of them are included. Msci is considering including the inland stock. Other people say China Mainland stocks still not ready for prime time. Look at the crazy market swings we saw last year. Right now expect a lot of volume in these chinese listed stocks like baidu and alibaba at the close. Well be on top of that and ill be with bill to walk you through that. If youre real good, bobs also going to show you slides from his trip to hawaii at the close of the countdown as well. Thank you. Thank you, bob. See you later. A long dispute keeps escalating and threatening the future of u. S. chinese relations. Seema mody has returned from a trip to china. She returns with what she found. Thanks for joining us. Hi, bill. Its fastly becoming a large geopolitical concern for global leaders. Its the number one risk thats threatened the relationship between the u. S. And china. Its claiming about 80 of the South China Sea which it says it was given after the war with japan. Neighboring countries are questioning this. Now, the South China Sea represents 5 trillion of trade and accounts for about half of Global Merchant shipping, a third of the planets oil shipping making it a crucial part of doing business there. But the foreign vice minister in beijing says the United States should not provoke china in the South China Sea without expecting retaliation. Chinas now said to be in the process of sending Nuclear Submarines in this region in an effort to strengthen its military presence. A Security Forum that kicks off this friday is set to kick off the risks associated with the south china dispute. Watch for any developments as both amp up their defense. One is saying theres a higher chance of an unintended conflict between the u. S. And china. Something we did witness in april of 2011 when a chinese plane collided with the u. S. Its something well have to watch in the coming weeks. See maseema, thank you. Our seema mody coming back from her trip to china. Lets get to the closing bell. Keith fitz jert from money morning. Com. Kenny, from the big board and Rick Santelli checking in from chicago. Keby, a lot going on. The Economic Data kind of mixed. The price of oil seemed to be the reason we saw this selloff midday. What do you see going on . What are traders trying to achieve here on the last day of the month . All the triggers you say completely impacting but it foals like the end of the month. I think that story knocked it out of the sky. Theres going to be a lot of volume in the last couple of seconds as the market closes across a range of stocks and so investors should just realize that. The big volume is not necessarily change in psychology at all. Its really a rebalancing of those indices so it doesnt mean much in terms of investor psyche. Sure, keith. What are you positioning for . Is it higher Interest Rates . Do you still expect the fed to keep moving . You know, i do. Exhibit them to move rates despite the fact that the data does not seem to support that. So i want to be cautious. You have to look into tech. You have to be making decisions about what you want to keep, what you want to sell and more importantly what youre going to buy as part of a kneejerk reaction. And, rick, art cashin was pointing out the dollar seeming to want to strengthen. It could be a problem for the fed as we get closer to that june 15th meeting here, right . Well, i agree because art zeroed in on the odd man out. The one chair that we need to watch as the musics playing, but im not sure im totally with the conclusion. I dont think the fed should be afraid of the dollar. The dollars afraid of the fed. We can be talking until were blue in the face. Its resurrected. And it was resurrected after a very brisk, a very terse minute a little over a week and a half ago regarding having a tightening sooner rather than later. The point im trying to make is normalization involved a lot of moving parts. Some of its the negative impact to continue do what were doing. The dollar seems to be in that camp. Many argue that stan fisher is in that camp, that all the things weve done arent working like we thought they would. Maybe there are negative consequences. You see everybody come down and see the dollar doing what it is, theres a lot of gamesmanship going on and im not sure the feds making it any easier to deal with the volatility. Keith, let me go back to you. Whats on your Shopping List should the prices go down . Im telling you. What im taking profits very cautiously, im considering taking stocks in amazon. Thats overweighting. Underweighting im looking at agricultural tech, for example. Theyre not properly recognized. The mon santos deal is a key player for me. Kenny, before we head to the close door we wait for the fed meeting or what catalyst are you looking for to move this market one way or the other . Well, listen. Shes going to speak again june 6 they say live. I think theyd like to push it to july. Fridays going to bring us a report. Its expected to come in at plus 160. So thats not really a positive number or a reason for them to be so anxious. My question is weve waited the long. Weve got the breks ta meeting. Whats going to be another four weeks. I think at the best thats what we have to look forward to. The july rate, if it even comes. Im not sure its going to come then. All right. Well see what happens. Appreciate it. We do have about 50 minutes left to the trading session. It was down when the Oil Market Just tumbled in its last hour of trade. But were down 132. The s p and the nasdaq trying to remain positive for the month of may. Nasdaq has a little more. Up next well break out the biggest earners and the new need that has topped the list. Plus, why one top Economist Says janet yellen and the fed says to wait until july to raise rates. And starbucks announcing a new line of cold drinks just in time for summer. Howard schultz tells us how big an opportunity this space is. Thats later on the closing bell. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial ServicesCompanies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. Billions are spent to confuse and, dare i say it, flummox the american public. Save 16 on car insurance. Switch now. Well at compare. Com, we say enoughs enough. So we constantly scrutinize millions of rates. Answering the question once and for all, who has the lowest. Just go to compare. Com and get up to 50 free quotes. Choose the lowest, and hit purchase. So you can get back to whatever it is you civilians do when youre not thinking about car insurance. Compare. Com welcome back. The dow is down 130 points. That, as you mentioned, bill, puts it in danger of turning on the month. The s p looks like its up still about half a percent, the nasdaq. The sectors are negative for the year. Some of the best sectors this month include semiconductors, they were up 8 and biotech. Not exactly a sell a man gorks away month. Exactly. Except theyre selling today. Viacom is facing a battle if sumner attempts to oust those board members. The lead member of viacom wrote in a letter and we quote here, to a person, we feel the responsibility to challenge in court what we honestly believe to be fraud removals. That is especially so because flaw that we see would be the inexplicable assertion that sumner was acting with his own free will and attempting to do so. The soap opera continues as we keep referring to it. I think from their point of view, its sort of as if they held on for all this time. And Shari Redstone who was once estranged from her father seems to be in control. The lawsuit i think catalyzed this whole thing because a lot of them were coming to his defense initially pointing out that they felt he was competent to make a decision like he did last october when he kicked herr out out of the house and now its come back to haunt them. Now theyre not so sure. I think so. Mary thompson has more. The travel website expedia paid the ceo over 90 million in Stock Options putting him at the top. Cbss stock fell as moonves got a 4 pay hooik. Your coal rounded out pulling over 53 million. They polled a grook of ceos with over a billion in revenue. On average the pay of these ceos, 15 lower than the 200 highest paid ceos in 2014. The average paycheck for the group last year, 19. 3 million, down. Median pay fell over 5 . Behind the decline, a flat stockmarket and fewer big paydays. The number of executives paid more than 40 million dropped to eight in 2015. The average made 525 times more. Back you do. Thats the number you were mentioning the other day. A lot of activist investors taking them to taf forecast that kind of ratio right now. Wouldnt you nknow less moonvez and philippe dauman. Two of the companies, disney andirius satellite radio. Even though it is 529 times or the ceo is paid 529 times more, they actually received a slight increase this year from 2014 for the average worker, although it was slight, 2 . Everyone wants to be a media company. Wasnt oreo wants to get in the game . Now we know why. Mary thompson. Thank you. The transport is up. The vicks up by a point and a half and the nasdaq is down only by about a point. Weve gone 20 minutes and now were going to talk about it. To hike or not to hike. Up next, a former new york fed official will tell us why he thinks janet yellen should move in july, not in june. Plus, apple reportedly will start releasing a major iphone upgrade every three years now instead of every two. Well discuss whether thats a smart move or a sign of trouble later on closing bell. What are you doing right now . Making a cake ayla reminds me of like a master chef and emiana reminds me of like a monster chef. Uh oh. I dont see cake, i just see mess. Its like awful. It feels like i am not actually cleaning it up whats that make mommy do . doorbell whats that . Swiffer wetjet. So much stuff coming up. This is amazing woah. Wow. Now i feel more like making a mess is part of growing up. Stop cleaning. Start swiffering. It takesbut stealing itd work to eaonly took a few days. Female announcer protect your money. Find out if youre dealing with a registered investment professional at investor. Gov. Before you invest, investor. Gov. With about 40 minutes left this the trading session the dow is down about 115 points. Coming up into the day the dow was up 99 points for the month. For those of you at home keeping score, if we can close down less than 94, we can be up. 17,7000 and change. Investor carl icahn behind the drugmaker. Its unclear exactly how big of a stake icahn has taken. Keep a close eyes on amazon. It topped its all time high. It did that this morning and in doing so it surpassed facebooks market cap value. But as you see its up 1. 1 at 720. 32. Now economists expect feds the raise their Interest Rate this summer. The biggest question is whether theyll raise rates in june or july. Steve liesman has more. The question is how big is it. Whether it happens in june or later in july. For the record, fed chair janet yellen said last week. Probably a rate hike would be appropriate if the data remains strong and the forecast comes in as she expects. Others were underestimated. The chances. Thats different than one will definitely happen in june. It could mean millions. Forern else, its hard to see that it matters all that much. If youre investing with a longterm horizon, a quarter point in june or it happens in july, well wash out over the course of months and years. Second quarter growth is accelerating. The 2. 7 per Second Quarter growth after a strong spending number. This morning its the Third Straight upgrade weve had to the tracking estimate. Along with better growth, rates are going to rise one way or the other. But, of course, our next guest has a different point of view. The actual month may matter in one critical aspect. What they say happen this year. Bill . Lets talk about that, steve. Stay right there. Lets brick in krishna goo ha, you were mentioned. He used to be with the new york fed. Krish never, why do you think its critical they go in july not june. First off i want to say steve is saying something thats almost always true, which is that it almost always makes no difference whether the fed moves it one meeting or the next meeting. This time i think its different. Why. Because if the fed moves in june, it will be going ahead of the burres it vote. The question is why. Why wouldnt you wait six more weeks and let that event pass. Theres only one plausible region. That is you want the option to go three time this year in the second half, june, september, and december. If you wait until july, the fed is essentially saying were giving up the third hike auction. Its july and see you in september if the second half data is good. Thats the message the market has already set, i think, to perform well on. The market would respond quite badly if it looked like the fed was seriously contemplating in three. Thats what i was going to say, steve. The markets had a hard enough time trying for this one. I dont think it says very much about whether september is on or june is on. I think theyre at a closer meeting of the mienlsd when it comes to hikes, one in june, one in september. It could happen in july. Im not saying it could definitely happen in june. My concern, krishner, is this. I think whats been happening, what ive been hearing and theres not a whole lot of it yet is theyve been downplaying brexit. You know what it is . Its a trade agreement and one party is leaving the trade agreement and theres a potential downside which, by the way, is not teen second, third, or fourth biggest economy in the world. Krishner, let me ask you this. Do you think its possible that the fed would not raise rates in july then . Is that why you would want them to wait . I think we should think of the brexit vote as a risk event that has a fat left tail. On the case, even if they vote to leave, it would be off 10 , 15 , European Assets off some. It wont generate any major stress for the system. It has a fat left tail. You could get some very large moves including euro. That could translate into a dollar surge. You could potentially have difficulties with the global banks based in the uk. You could also see contagions start to express itself in terms of breakout risk in the eurozone. Again, not in the base case but in the tail. Back to the points, what i would say is the following. The only thing you give up if you wait to hike in july is a credible option to raise rates three times. So why, steve, would i not wait to delay in july if i wasnt sending some signal about the probably of perhaps having to go a third time . There is a matter of credibility here where the fed has signaled rate hikes. Its been six months. At the end of the day it doesnt matter a whole lot, but you get to crying wolf. You didnt do it in june. You may actually create more risk and more volatility by waiting than if you just went ahead and did the inevitable. I dont see that at all, steve. Right now the market is priced. Its all set. The dollar isnt doing anything crazy. Were all nicely set for a july hike. The market is not discounting june. The idea is go ahead and hike in juchblt nothing happens. Nonconsistent. First of all we need to have this conversation on friday after the jobs report where i think that percentage could potentially change. If it remains the same after the friday