Transcripts For CNBC Closing Bell 20170612 : vimarsana.com

Griffeth today General Electric and apple, ge rallying after the ceo announced hes leaving whether the new ceo get gets the stock moving, and apple downgraded i think the song is offsync we are going to be joined by dan fuss whether the selloff is a signal to the bond market. He joins us in minutes to dig into whats happening over there. Lets start with a nasdaq extending losses today, and joiningous closing bell exchange, we have kim forest, senior analyst, and steven, over at post nine, daily contributor, and our own Rick Santelli at the cme. Thank you, everyone. Sarch, sta sarge, you, bike tech, rotation to it. Industrials and energy picked up time to worry when the leaders are hit like this, or is this something healthy . No. I think its healthy its wheres the money going to come from i mean, obviously financials are in play this week. Youll have all three majors, four major banks, three this week, and so currencies move around yields move around, they move into energy because oil is supporting, moving into financials because of the reasons, and i, myself, i went shopping today, buying amazon near the lows, tried to buy research near the lows i didnt get it, sneaks back down, ill try again, but its a shopping opportunity kim, you are as well. Intel your pick here, if i read correctly. Why . Well, its because its kind of been unloved, but we think it has lots of potential because of the research and development, and it owns its plants, so it makes the stuff it designs, and theres a lot of intellectual property generated from that, and i think they made a great push into autonomous driving, and they should be able to capture that market. Let me circle back to the shopping opportunity outperformance of the nasdaq to the rest of the market is wide this year, arguably could have more to go if things come together a little bit. Afraid a little bit when you shop on amazon or Lamb Research its early it might be early, but you dont buy everything you want to buy at once. You just decide where to start buying a stock thats how you start trading stock. These lower levels, where they were earlier today, thats where i start getting involved, and maybe establish a nice healthy position by the time the names come in maybe 1015 with what kim said, i love in l intel. Favorite name, i agree with everything she just said so, kim, going out 30,000 feet, whats going on with the tech trip seen recently, and, you know, what it says about the market sure. Well, a couple of mostly sell side, but also a short analyst pieces on how overvalued stocks were, and you never know when the greater market pays attention to this and takes action i think it is something everybodys been thinking, and, you knowings thats what makes a market it started on friday it continues on monday thats what i think is behind this rick, on the macro and fixed income front, its not dramatic now in the treasury market necessarily, but a lot to really absorb obviously, the fed feeting coming up this week. We had a couple big treasury x auctions, this afternoon, and wall street journal reported the fed is worrying in fact financial conditions remain loose even as they talked about tightens more. What do you think that sets us up here . Well, i love that article in the journal, mike, and, obviously, closing bell, the discussions you, i, and kelly, and bill had, we could have wrote that article years ago because thats the dynamic right now, is the central bank trying to do the right thing trying to normalize rates, talking about reducing the Balance Sheet, but theres still a tsunami of liquidity coming from the bank of japan, the ecb, the bank of england, and so what the u. S. Central bank is doing is getting lost in the policy objectives of northermalization not occur. Relative value trade hot as ever as european rates continuing to a weight on u. S. Weights for arbitrage reasons. We see foreign exchange, maybe getting more volatile, and, of course, some of the big moves are not productive, especially as a multinational trying to create a Strategic Plan over several years, which is really, in my opinion, a huge component thats been missing with these policies its very hard to get a gps and try to plan and Capital Invest over the long term, but, ultimately, i dont know what our central bank can do. They could do all the right things, but if exerting three pounds in one direction and 1015 pounds of pressure back the other way, its a netnet scenario netnet, liquidity finding a home, and normalization is elusive. Get the Central Banks on the same page, and im not talking about us getting more liquid, but talking about the other Central Banks conforming more, and i dont know how that can be accomplished, quite frankly. Theres the tenyear note kim, back in to retail for a second the other picks here are Urban Outfitters in barrens over the weekend talking about how the only place seeing foot traffic these days is apple stores, dollar stores, and costco does that overlay with what you see as the strengths in this rel today . Kind of does anybody go to the store anymore . People order more and more online, and i think thats what were seeing a lot of this traffic that even the better retailers greating are direct to consumer in the vf corp. s case, and more and more online you know, i over i guess at the end of last week, urban had a call, and or had conference they attended saying every month, you know, it grows by, like, 1 , the number of people going to the websites and buying, to foot traffic, how do we know . You guys know what foot traffic is no, i do. Does it matter, sarge foot traffic is in home depot and lowes, guys when waters in the basement, you dont go to amazon and clothing retail, i dont know that foot traffic is a metric thats going to be very telling in the near future absolutely. All right. Except, yeah, i guess when you deal with the basement fortunately, you got a deal with that, you know you do . Ive owned a home for decades. Millennials, hoping if it as suzi told us thank you for joining us today thank you shares of General Electric are higher after new ceo is stepping down replaced by the current president and ceo of ge health care, and effective august 1st bringing in jeff from edward jones and louis to talk about where ges headed now. Jeff, youre the bull here in this debate. See what see happening in the transition we like the ge story. We like the transition theyve been making and the restructuring of the business side of capital. With the transition in the ceo, we are looking for that thoughtful concise Strategic Vision to come back out, and so were looking for mr. Flanner to take a deep dive in the business, lay out the strategy, and where the growth comes from, reassure us on the cash flow, cash generation, and we want to see more information on just where the capitals going to be spent, capital allocation. Thats in general what we look for in the next several months youre a skeptic on the stock or not a great opportunity, i gather, but why not look at it and say, look, the stocks been asleep for more than a decade relative to the market the rest of the market looks like maybe its stretched on valuation side maybe you actually have opportunities for a fresh set of eyes here to get the stock moving why does that not make sense in your calculation well, first of all, the sales are supposed to be down 13 this quarter. The earnings down 51 . The analyst slashed estimates 19. 4 in the last 60 days, and it is a multinational paid in eroding currencies, and when you have a strong dollar, multinationals really struggle if we get a weak dollar, it fuels the bottom line, but the company is lost, and until we have positive forecasted sales and earnings, i dont want to go near it. I realize theres a nice dividend yield, and i hope it sustains that dividend with the cash flow, but im a growth guy. We just dont go bargain hunting like this. Jeff, do you want to see a breakup in a spinout of ges different businesses well, what were looking for right now is just looking for direction in how they are going to grow the company. You know, we dont necessarily need to see a spinout or divestitures, but, again, we want to see where the capitals going to go, where the businesss going to grow, and, you know, really this is a business that really focusing on the needs of the humanity, so, you know, were looking at, from a long term perspective, growth in transportation, energy, health care, you know, weve talked about dividend earlier, so, you know, we think theres a lot of things that can go right for the company in the long term, and Strategic Vision is going to be essential to bring out over the next couple months, and so we dont necessarily need to see a spinout or, again, an acquisition, but mr. Flannery needs to address concerns from investors looking for those types of actions in the absence of real near term earnings improvement in the outlook, is there anything you can see being done with the business mix that could catalyst things for ge, in the shoes of mr. Flannery right now, what do you look at . Just break up and sell what i can sell in the strength thats not going to have sustainable earnings they outsourced so much to the business this really hurts them when the dollars strong, so i would try to be a little bit more domestic, do more business closer to home, but, you know, the truth of the matter is multinationals really struggle with a strong dollar they are not the only one. You know, only 12 of the 50 largest stocks in the s p are forecasted to have positive sales and earnings in the second quarter. Theres a lot of strength in the market as soon as you leave the multinationals multinationals are just not the place to be at this moment we got to goings but, i mean, if youre an executive, you cant make a decision about Major Business units over the strength or weakness of the dollar, can you . Well, unfortunately, as long as our rates are going to be higher than the rest of the world, yeah, were going to have a strong dollar the rest of my lifetime, so no ones raising rates. Ecb made that very clear do what trump says, bring it home is the dollar all that strong right now . Yes, it is. Versus those emerging markets, yes, it is big impact on the multinationals, so youre goin to see it in mcdonalds, see in procter gamble, ibm every quarter. It really, really hurts these companies, you knowings its a big deal its a big head wind all right still 97 on the dollar index, off the year, but, again, record highs months back. Guys, thank you both talking ge one of the biggest movers and stories and widely held stock. Very much retail stock, good and bad, and that difvidend is a the center of that dow down 56, s p down five, vix higher after a multidecade low friday the russells interesting story, relatively outperforming, down four points, and nasdaq worth down 44. Vice chairman is called the Warren Buffett of bonds, and fuss says why hes the most cautious hes been thats next. Also ahead, grocery wars heat up, and walmart the target. Discuss the International Players hungry for a big piece of the u. S. Rkmaet youre watching cnbc, first in Business Worldwide were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Welcome back the fed is expected to raise rates wednesday. Although, you have not heard much about it to be honest no. Its out there, but its its baked in at in point thats true expected a Ripple Effect in the community. Next guest advises caution joining us now, dan fuss, vice chairman and port folioing if manager thank you for joining us well, thank for having me were hearing, dan, that youre quite cautious on your area, corporate credit, thinking theres not a lot of value there, positioned defensively in the fund what are you seeing out there in the markets that maybe has you feeling this way well, its not so much the markets. It is the central bank, and just the general setting, the economys reasonably strong, all the data the fed normally looks at would encourage them to bump up rates a little more, and so i think theyre going to do it, so its good to be cautious and corporates are priced a little bit tight to treasuries. Yeah, dan, interesting thing about that they can be priced tight and go tighter the only way they dont is if we have some kind of recession looming, right i i dont know you know, markets i would agree with that as the general thing, but markets whats the saying markets will be markets. Once in a while things happen that you really dont quite understand, but i think that going forward, rates will rise, actually, initially spread tighten a bit, and then start to widen out a a bit. At any rate, its time to be a bit more cautious, bring maturities in somewhat and do you think, dan, that the fed the fed stance or feds intentions are changing much at this point theres talk theyd like to see some effect on financial conditions which remain lose, on the other hand, the other end of the spectrum, look, we cant get inflation up near the target, so whats the hurry whats the baseline guess for how far they go . Best guess assuming nothing strange happens in the world, that theyll raise rates wednesday, probably in september its a coin toss as to whether they raise rates or they talk about starting to bring the Balance Sheet down or maybe do both i think itll just be one or the other, bring the Balance Sheet down, and then in december, probably raise rates again if we follow dot plots out, which has they have not been too reliable as of late, but follow them out, you say, well, gee, i think they are going to keep doing this and probably, oh, year and a half, two years from now, we might be seeing short rates around 3 or so. Thats got so many assumptions in it that you really dont want to necessarily bet on it dan, im wondering where you think the best place to get income is these days what strategies do you recommend for people well, i think some balance between Investment Grade and high yield corporates, but you got to bring in the long end of the maturity spectrum, so you want to have average maturitiems more average maturitiematuritiei the median temple, and carry a reasonable sized liquidity reserve so you can take advantage as the market gets more bumpy when rates go up. And, dan, do you think theres going to be significant bumpiness when the fed does initiate that wind down of the Balance Sheet, reducing its size, a lot of differing opinions out there whether its a nonevent or disstabilizing i dont think its going to be very destabilizing. I think the fed will be very, very sensitive nonetheless, as you start to have them netnet providing money to the market, initially itll be pretty good, but then as you think it through when we get further out, the swings will be a tiny bit more its more interim day, for a day or two type stuff, so you make small adjustments in the portfolio, and if something really gets out of hand, then you commit some of your reserves its more tactics right now. Got ya. All right. Well be ready in the next several months for bumpiness dan fuss, thank you very much for the time thank you you bet 40 minutes left before the bell you see the dow, down a quarter percent, and s p down a little bit less than that, and nasdaq weighed down by the largest names, down not quite twothirds of a permit. Moderating losses from this morning. Companies set on eating into the walmarts market share in the grocery aisle. 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Plus, there are no networks, and virtually no referrals needed. So dont wait. Call now and request this free decision guide to help you better understand medicare. And which aarp Medicare Supplement plan might be best for you. Theres a wide range to choose from. We love to travel and theres so much more to see. So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Remember, all General Electric<\/a> and apple, ge rallying after the ceo announced hes leaving whether the new ceo get gets the stock moving, and apple downgraded i think the song is offsync we are going to be joined by dan fuss whether the selloff is a signal to the bond market. He joins us in minutes to dig into whats happening over there. Lets start with a nasdaq extending losses today, and joiningous closing bell exchange, we have kim forest, senior analyst, and steven, over at post nine, daily contributor, and our own Rick Santelli<\/a> at the cme. Thank you, everyone. Sarch, sta sarge, you, bike tech, rotation to it. Industrials and energy picked up time to worry when the leaders are hit like this, or is this something healthy . No. I think its healthy its wheres the money going to come from i mean, obviously financials are in play this week. Youll have all three majors, four major banks, three this week, and so currencies move around yields move around, they move into energy because oil is supporting, moving into financials because of the reasons, and i, myself, i went shopping today, buying amazon near the lows, tried to buy research near the lows i didnt get it, sneaks back down, ill try again, but its a shopping opportunity kim, you are as well. Intel your pick here, if i read correctly. Why . Well, its because its kind of been unloved, but we think it has lots of potential because of the research and development, and it owns its plants, so it makes the stuff it designs, and theres a lot of intellectual property generated from that, and i think they made a great push into autonomous driving, and they should be able to capture that market. Let me circle back to the shopping opportunity outperformance of the nasdaq to the rest of the market is wide this year, arguably could have more to go if things come together a little bit. Afraid a little bit when you shop on amazon or Lamb Research<\/a> its early it might be early, but you dont buy everything you want to buy at once. You just decide where to start buying a stock thats how you start trading stock. These lower levels, where they were earlier today, thats where i start getting involved, and maybe establish a nice healthy position by the time the names come in maybe 1015 with what kim said, i love in l intel. Favorite name, i agree with everything she just said so, kim, going out 30,000 feet, whats going on with the tech trip seen recently, and, you know, what it says about the market sure. Well, a couple of mostly sell side, but also a short analyst pieces on how overvalued stocks were, and you never know when the greater market pays attention to this and takes action i think it is something everybodys been thinking, and, you knowings thats what makes a market it started on friday it continues on monday thats what i think is behind this rick, on the macro and fixed income front, its not dramatic now in the treasury market necessarily, but a lot to really absorb obviously, the fed feeting coming up this week. We had a couple big treasury x auctions, this afternoon, and wall street journal reported the fed is worrying in fact financial conditions remain loose even as they talked about tightens more. What do you think that sets us up here . Well, i love that article in the journal, mike, and, obviously, closing bell, the discussions you, i, and kelly, and bill had, we could have wrote that article years ago because thats the dynamic right now, is the central bank trying to do the right thing trying to normalize rates, talking about reducing the Balance Sheet<\/a>, but theres still a tsunami of liquidity coming from the bank of japan, the ecb, the bank of england, and so what the u. S. Central bank is doing is getting lost in the policy objectives of northermalization not occur. Relative value trade hot as ever as european rates continuing to a weight on u. S. Weights for arbitrage reasons. We see foreign exchange, maybe getting more volatile, and, of course, some of the big moves are not productive, especially as a multinational trying to create a Strategic Plan<\/a> over several years, which is really, in my opinion, a huge component thats been missing with these policies its very hard to get a gps and try to plan and Capital Invest<\/a> over the long term, but, ultimately, i dont know what our central bank can do. They could do all the right things, but if exerting three pounds in one direction and 1015 pounds of pressure back the other way, its a netnet scenario netnet, liquidity finding a home, and normalization is elusive. Get the Central Banks<\/a> on the same page, and im not talking about us getting more liquid, but talking about the other Central Banks<\/a> conforming more, and i dont know how that can be accomplished, quite frankly. Theres the tenyear note kim, back in to retail for a second the other picks here are Urban Outfitters<\/a> in barrens over the weekend talking about how the only place seeing foot traffic these days is apple stores, dollar stores, and costco does that overlay with what you see as the strengths in this rel today . Kind of does anybody go to the store anymore . People order more and more online, and i think thats what were seeing a lot of this traffic that even the better retailers greating are direct to consumer in the vf corp. s case, and more and more online you know, i over i guess at the end of last week, urban had a call, and or had conference they attended saying every month, you know, it grows by, like, 1 , the number of people going to the websites and buying, to foot traffic, how do we know . You guys know what foot traffic is no, i do. Does it matter, sarge foot traffic is in home depot and lowes, guys when waters in the basement, you dont go to amazon and clothing retail, i dont know that foot traffic is a metric thats going to be very telling in the near future absolutely. All right. Except, yeah, i guess when you deal with the basement fortunately, you got a deal with that, you know you do . Ive owned a home for decades. Millennials, hoping if it as suzi told us thank you for joining us today thank you shares of General Electric<\/a> are higher after new ceo is stepping down replaced by the current president and ceo of ge health care, and effective august 1st bringing in jeff from edward jones and louis to talk about where ges headed now. Jeff, youre the bull here in this debate. See what see happening in the transition we like the ge story. We like the transition theyve been making and the restructuring of the business side of capital. With the transition in the ceo, we are looking for that thoughtful concise Strategic Vision<\/a> to come back out, and so were looking for mr. Flanner to take a deep dive in the business, lay out the strategy, and where the growth comes from, reassure us on the cash flow, cash generation, and we want to see more information on just where the capitals going to be spent, capital allocation. Thats in general what we look for in the next several months youre a skeptic on the stock or not a great opportunity, i gather, but why not look at it and say, look, the stocks been asleep for more than a decade relative to the market the rest of the market looks like maybe its stretched on valuation side maybe you actually have opportunities for a fresh set of eyes here to get the stock moving why does that not make sense in your calculation well, first of all, the sales are supposed to be down 13 this quarter. The earnings down 51 . The analyst slashed estimates 19. 4 in the last 60 days, and it is a multinational paid in eroding currencies, and when you have a strong dollar, multinationals really struggle if we get a weak dollar, it fuels the bottom line, but the company is lost, and until we have positive forecasted sales and earnings, i dont want to go near it. I realize theres a nice dividend yield, and i hope it sustains that dividend with the cash flow, but im a growth guy. We just dont go bargain hunting like this. Jeff, do you want to see a breakup in a spinout of ges different businesses well, what were looking for right now is just looking for direction in how they are going to grow the company. You know, we dont necessarily need to see a spinout or divestitures, but, again, we want to see where the capitals going to go, where the businesss going to grow, and, you know, really this is a business that really focusing on the needs of the humanity, so, you know, were looking at, from a long term perspective, growth in transportation, energy, health care, you know, weve talked about dividend earlier, so, you know, we think theres a lot of things that can go right for the company in the long term, and Strategic Vision<\/a> is going to be essential to bring out over the next couple months, and so we dont necessarily need to see a spinout or, again, an acquisition, but mr. Flannery needs to address concerns from investors looking for those types of actions in the absence of real near term earnings improvement in the outlook, is there anything you can see being done with the business mix that could catalyst things for ge, in the shoes of mr. Flannery right now, what do you look at . Just break up and sell what i can sell in the strength thats not going to have sustainable earnings they outsourced so much to the business this really hurts them when the dollars strong, so i would try to be a little bit more domestic, do more business closer to home, but, you know, the truth of the matter is multinationals really struggle with a strong dollar they are not the only one. You know, only 12 of the 50 largest stocks in the s p are forecasted to have positive sales and earnings in the second quarter. Theres a lot of strength in the market as soon as you leave the multinationals multinationals are just not the place to be at this moment we got to goings but, i mean, if youre an executive, you cant make a decision about Major Business<\/a> units over the strength or weakness of the dollar, can you . Well, unfortunately, as long as our rates are going to be higher than the rest of the world, yeah, were going to have a strong dollar the rest of my lifetime, so no ones raising rates. Ecb made that very clear do what trump says, bring it home is the dollar all that strong right now . Yes, it is. Versus those emerging markets, yes, it is big impact on the multinationals, so youre goin to see it in mcdonalds, see in procter gamble, ibm every quarter. It really, really hurts these companies, you knowings its a big deal its a big head wind all right still 97 on the dollar index, off the year, but, again, record highs months back. Guys, thank you both talking ge one of the biggest movers and stories and widely held stock. Very much retail stock, good and bad, and that difvidend is a the center of that dow down 56, s p down five, vix higher after a multidecade low friday the russells interesting story, relatively outperforming, down four points, and nasdaq worth down 44. Vice chairman is called the Warren Buffett<\/a> of bonds, and fuss says why hes the most cautious hes been thats next. Also ahead, grocery wars heat up, and walmart the target. Discuss the International Players<\/a> hungry for a big piece of the u. S. Rkmaet youre watching cnbc, first in Business World<\/a>wide were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure<\/a> before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Welcome back the fed is expected to raise rates wednesday. Although, you have not heard much about it to be honest no. Its out there, but its its baked in at in point thats true expected a Ripple Effect<\/a> in the community. Next guest advises caution joining us now, dan fuss, vice chairman and port folioing if manager thank you for joining us well, thank for having me were hearing, dan, that youre quite cautious on your area, corporate credit, thinking theres not a lot of value there, positioned defensively in the fund what are you seeing out there in the markets that maybe has you feeling this way well, its not so much the markets. It is the central bank, and just the general setting, the economys reasonably strong, all the data the fed normally looks at would encourage them to bump up rates a little more, and so i think theyre going to do it, so its good to be cautious and corporates are priced a little bit tight to treasuries. Yeah, dan, interesting thing about that they can be priced tight and go tighter the only way they dont is if we have some kind of recession looming, right i i dont know you know, markets i would agree with that as the general thing, but markets whats the saying markets will be markets. Once in a while things happen that you really dont quite understand, but i think that going forward, rates will rise, actually, initially spread tighten a bit, and then start to widen out a a bit. At any rate, its time to be a bit more cautious, bring maturities in somewhat and do you think, dan, that the fed the fed stance or feds intentions are changing much at this point theres talk theyd like to see some effect on financial conditions which remain lose, on the other hand, the other end of the spectrum, look, we cant get inflation up near the target, so whats the hurry whats the baseline guess for how far they go . Best guess assuming nothing strange happens in the world, that theyll raise rates wednesday, probably in september its a coin toss as to whether they raise rates or they talk about starting to bring the Balance Sheet<\/a> down or maybe do both i think itll just be one or the other, bring the Balance Sheet<\/a> down, and then in december, probably raise rates again if we follow dot plots out, which has they have not been too reliable as of late, but follow them out, you say, well, gee, i think they are going to keep doing this and probably, oh, year and a half, two years from now, we might be seeing short rates around 3 or so. Thats got so many assumptions in it that you really dont want to necessarily bet on it dan, im wondering where you think the best place to get income is these days what strategies do you recommend for people well, i think some balance between Investment Grade<\/a> and high yield corporates, but you got to bring in the long end of the maturity spectrum, so you want to have average maturitiems more average maturitiematuritiei the median temple, and carry a reasonable sized liquidity reserve so you can take advantage as the market gets more bumpy when rates go up. And, dan, do you think theres going to be significant bumpiness when the fed does initiate that wind down of the Balance Sheet<\/a>, reducing its size, a lot of differing opinions out there whether its a nonevent or disstabilizing i dont think its going to be very destabilizing. I think the fed will be very, very sensitive nonetheless, as you start to have them netnet providing money to the market, initially itll be pretty good, but then as you think it through when we get further out, the swings will be a tiny bit more its more interim day, for a day or two type stuff, so you make small adjustments in the portfolio, and if something really gets out of hand, then you commit some of your reserves its more tactics right now. Got ya. All right. Well be ready in the next several months for bumpiness dan fuss, thank you very much for the time thank you you bet 40 minutes left before the bell you see the dow, down a quarter percent, and s p down a little bit less than that, and nasdaq weighed down by the largest names, down not quite twothirds of a permit. Moderating losses from this morning. Companies set on eating into the walmarts market share in the grocery aisle. Management shakeup at a ride hailing giant has the chief rival getting a multimillion dollar investment from jaguarland rover. Details on that next big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement<\/a> insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement<\/a> insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement<\/a> insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] with these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. 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[ minion babble ] [ minions cheering ] [ minions sighing ] [ minions cheering ] [ minions booing ] okay minions, were going back to villainy. [ minions shouting ] so bad so good that im so bad. [ honking ] so, youre villains now . [ nervous laughter ] i mean, hello sweetie. Despicable me 3. Rated pg. Welcome back, two chains going after walmart, aldi investing in the u. S. , expanding store base to 2500 locations, adding nearly 1,000 from the current store count by 2022, and currently operates 1600 stores, and plans to spend 1. 6 billion dollars to remodel 1300 of them. In other words, its splashing out a lot of money here. Meanwhile, little is set to open 100 stores in the u. S. June 15th, saying 50 lower than rivals, where does that leave walmart with 12,000 stores and recent acquisition of jet. Com. They assessed lower prices in 11 u. S. States and undercutting rivals by 15 . Look at shares of walmart stato. They are under slight pressure, mike, honestly yeah. We know this has been priced in, talked about ald coming before i dont know if heidi klums line for lidl changes too much not in that eequation, but in general, pointed in the direction of consumers being the net winners. 500 stores a year for aldi in five years is going to make a dent i dont know if its all walmart, probably regional chains too i want to know how amazon factors into this. This is a thing for wall market, dealing with enough over there already, and now people are undercutting them at what they do best. And kroeger results thursday first time in, like, 13 years they had the same store sales dropped. Lowers guidance for the year, and thats another player. They have done well as of late, but this is competition. Well funtil a year ago, food deflation thats persistent, and theres not a smart way to navigate it honestly like you said, great for the consumer wryep. Cheaper and more options than ever no doubt about it dollars per calorie creating an alltime low good one. Yeah. Need a chart of that. Ive been looking for years to find a chart of that. Let you know what i get it, but less than 35 minutes left before the bell you see were sitting on modest losses across the board. Dow down three tenths of 1 , nasdaq downside leader, giving back outperformance from the year down eight tenths of a performance, and russell outperming a little bit. Up next, latest developments in uber later, pit bull known for the music, but making a name for himself in the Business World<\/a> too. Ahead, the entertainment mulog is live after the market close stay with us folio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access<\/a> 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. Half hour to go before the bell, kenny, you looked for a shakeout in teches a week ago. We got Something Like<\/a> that further to go or not i dont know its a complete shake out yet. Down 2. 25 thats not a shakeout yet. More to go not a disaster i think, you know, that investors are using these big tech names that outtempled, a source of cash to prepare what happens. Hear from the fed, and nervousness makes people cautious one of the ways they are positioning now is picking up laggard groups, at least for now in the banks takes sense, right, look at the financials doing well, and energy is well, but down trend is just kissing it, and we have to wait and see how that really performs run into resistance or break up and through, if so, thats another conference if we dont, play that safe. Is there a sense anybodys saying, look, summers coming, up for the year, back away for a while . Yeah. Not a sore subject. Just feels like the dog days of summer are here already but, you know, listen, theres a lot going on, politically around the world, what happened in italy, madrid, people could be caught by surprise thats the theme moving to the summer we came into the year, well, its scrovolatile, but it was nt the vix spiked today, up 7 today. Its up 27 in three days, the vix. Therefore, its not maybe not so complacent all right kenny, thank you very much yep thank you, guys time for a news update with sue. Sue . Kelly, heres whats happening this hour, everyone. The ttorneys general of maryland and washington are suing President Trump<\/a> for allegedly violating the constitution they plan to ask for the president s financial and tax records. The suit alleges that President Trump<\/a> is flagrantly violating the constitution, which explicitly bars the president from receiving gifts or endorsements from foreign or domestic Government Entities<\/a> never in the history of this country have we had a president with these extensive business enanglements montanas governor avoiding jail time after a scuffle with a reporter after being elected he was sentenced to 40 hours of community service, anger management, and pay a fine happy fans greeting the penguins beating the predators 20 sunday to win the nhl championship, the first team to repeat in 19 years thats the news update this hour back downtown to you, kelly . Go warriors i know, right you got it sorry, sorry. Hoping sue, thank you very much other market movers, meantime, transdime is lower, warren asking to invest gait the business, and whether transdigm overcharges the government shares down 3 today tanger higher, upgraded knneutr from sell, given a strong Balance Sheet<\/a> and pullback from riskier development. They have a 27 price target, and she are just shy of the level. Hope the outlet area is immune to retail world back to price and destinations, entertainment. True. Ubers ceos future is in question heres the latest developments reporter another busy one today. Exodus continues with the departures, but the question right now on everyones mind is whether he, himself, steps aside for a short period if so, who would step in we may get the answer tomorrow when the recommendations of the holder report reviewing Sexual Harassment<\/a> charges are set to be relesioned today, though, the lieutenant is the latest, also the most high profile executive to leave so far telling the team in a memo that yesterday was his last at uber in four years, hes played a crucial role in fundrising and the initiative into selfdriving cars and wondered if hed survive the holder report begin his involvement in the biggest controversies, but as the right hand man, hes been shielded, that is, until now his position was filled by david, a Business Development<\/a> executive at the company, but as you know, the chart at the top is looking empty theres a lot of vacant positions like coo, cfo, cmo, and general counsel. Tomorrow, guys, possible interim ceo. Sounds like this was quite a lengthy Board Meeting<\/a> as they went over all the recommendations, you know, from the report from holders report, so this is the limbo period. We find out tomorrow, you know, all the next steps, is that right . Thats right. You mentioned it was a long report kelly, it lasted more than six hours yesterday. There were tons of recommendations to go through, of course, a lot dealing with Corporate Culture<\/a> and the claims of Sexual Harassment<\/a>, but remember last tuesday, all hands meeting, they discussed the internal report, another report that uber did, and 20 employees were fired as a result we dont know who could be on the chopping board tomorrow, but we could see some more executives, some other high level executives begin that michael is out today yeah. An amazingly fast moving situation. A lot of speculation if they had to raise money tomorrow, what valuation would it be . 68 billion the latest. How much is because of the founder, the ceo always crucial. Absolutely, guys. You have to think a lot of the positions are open absolutely. Throwing in my resume lyft boosted from jaguar, and amazon looking to sell cars overseas mcdonalds teaming up with snapchat for new young talent. Details on the recruiting cam payment coming up on closing bell stay with us deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia coming up in the last 20 minutes of trading, broad markets down a quarter of 1 nasdaq giving back year to date outperformance, especially the big tech names, down three quarters of 1 now coty higher, coverage of the stock with the buy recommendation in the 21 price target the brands include calvin klein, and purchase of prok tar and gamble last year makes them the Third Largest<\/a> cosmetics company. I didnt realize that there we go. 3 ride sharing service, lyft, getting a lift by Jaguar Land Rover<\/a>. What does it mean . Well, its too early to know exactly how this is going to play out over the next couple weeks, next couple months and years as the partnership coming together make no mistake. When lyft is doing is following a blueprint that it started last year with general e mot motors. They took a half billion dollar stake in lyft, which is still holds, to develop products together whether ride sharing, car sharing, potentially autonomous drive vehicles in the future now in regards to jaguar, whats going on here is that it will have its Technology Wing<\/a> in motion is the name of the subsidia subsidiary, work with lyft, and Jaguar Land Rover<\/a> vehicles, perhaps, test vehicles, that will be going to certain lyft drivers around the country, and this is one more example of lyft saying, lets try a partnership, what comes of it they are doing with it General Motors<\/a> and waymo and a Technology Firm<\/a> developing autonomous drive vehicles, and im not surprised were seeing this or see more in the future lyft spreads chips around in terms of potential bets on the future you see, spreading chips, but, obviously, the car makers hedging here too, right . Sure. Right. Trying to get a piece of whatever comes out down the road exactly which is why they are investing 25 billion. Its not a huge amount of money, but it is significant, and it gives them some access to work with the lyft company, with those executives as far as getting a sense of what they plan for the future. Is that tata company bill . It is, it is. Tata owns them, doing better since they bought them from ford, and, ford, they were really two brands that just never fit in with the rest of the portfolio or do very well, and theyve been on a nice roll over the last couple years there was a car i saw on the way here, a twodoor land rover type thing, two doors, two doors suvs crazy. Just got to be higher thats the rule, just a little bit higher phil, reports that amazon looking to sell cars in europe whats that about . Unclear whether or not amazon is looking at sales of new vehicles or used vehicles, but you can bet that the Online Market<\/a> place, if you will for automobiles in europe, is watching this, and saying, oh, boy, whats going to happen . Now, theres already an amazon test program for selling certain fiat models in italy thats been extend the if its new vehicles, thats interesting to see what it does to the dealer market in europe, and if its used, look, amazon already gets a lot of people on their website. Theres a lot of traffic there, and if you one of the online automobile welcomes, you look at this, and you can worried. Amazon has shown its ability in so many market places. I was looking at true car, down 2. 2 . Its not the perfect, you know, way to analyze whats happening ebay sells cars they exclude autos no way. Yeah. I didnt know that. Doesnt get the recognition, but its true. Ebay, and we see this with amazon, people are going to be paying real close attention to what happens in europe good stuff, phil, thank you very much. You bet phil lebeau 15 minutes to go, a little more than that, 65 points down today after record highs on friday s p 500 down 7 nasdaq down 51 now and russell down five. Snapchat parent, snap, facing downgrades and questions about Revenue Growth<\/a> up next, looking at th sesboid of snap with a bull and a bear welcome back watching markets, day of decliedeclin declines here, but watch the lows from friday, we are at 2425 for the s p, and 21159 for the dow, and up above 21200 there. Perhaps some relief to people in the short term, but, again, declines a quarter percent for the dow and s p. The russell more than that down, and nasdaq above 2400, its no change in the story, uptrends in tact. That was a bigger deal. See if it develops that way meanwhile, shares of snapchat higher today, but the social Media Company<\/a> saw shares tumble 10 last week after a slew of downgrades they are reportedly working on spectacle glasses to include augmented reality features now the time to buy snap on the pullback lets bring in a bull and bear on snap. Guys, thank you for being here shaun, give us the bull case, i guess, in terms of what the Company Might<\/a> be showing us in the next couple quarters to get traction with advertisers, and then just the big picture long term you know, why does that need to exist in the ecosystem near term, revenues for years to grow. Were not as concerned about that as revenue. When the average user is worth 5 of that of facebook user, spread is too wide thats what we look for near term rolling out more brand development. Lou, youre not bullish on snap why . No. I mean, look, snaps facing a new innovators dilemma, anythin they do, facebook does bigger and better they have done it, will continue to do it because theres no patent protection. The risk to the growth is the fact that facebooks going to keep ripping them off with impunity and perpetuity. Do you think, lou, facebook rolls out spectacles too i do think youre going to see all these tech giants move into hardware. Its happening, you know, there are virtual reality, so its not a big leap of object to see them doing that look, i think were witnessing twitter 2. 0 in investment with snap never should have had a a buy rating from the gate you cant make an argument on a valuation basis if this company is worth 3 billion plus ill give you that snapchat has great loyalty and engagement, but that doesnt always translate into money like shaun was talking about. Well, i mean, it seems to me for snap to succeed, both as a business and stock, it has to be something other than playing in the same playground as facebook and take a piece of the pie. Something that distinguishes snap, whether its the hardware and engagement that makes advertisers say its a a musthave . Yeah. I think that youre seeing snap building their ip mode you saw the win with the go filters, a lot of augmented reality, theyve invested in in five years thats not come to fruition yet snap has a nice piece of ip, and none has been shown to the user because they have not rolled it out yet, and they were upfront about that in the ipo road show. Question is, if were talking about move k away from the device over the the longer term, five, ten years ws voice assistance, where does that leave snap chat . How do they live in that ecosystem . Everything is about ar, vr, and 3d sensing, no question. Snapchat has the ip through the phone camera, spectacles, whatever the next piece is going to be, they have the ip. I argue with that prove they got the ip that more competitive or gives them that facebook or apple or even alphabet doesnt have. I challenge that want i dont have the numbers in front of me, but ip ive seen is older from other names aside from snap. I think, you know, again, this is a pray for an acquisition before the pair dime shifts away from hardware into voice, and, you know, same thing we see with twitter. User base is valuable. To what party at what price point . Lou, is there anything snap can do whether its changing the way that it approaches new users, the way it basically somehow attacks the potential market that could change this right now . Look, i think one of the key parts of the strategies is protecting the user base they have not pushed and built aggressively, which is really the name of the game in social media. Build that network as fast as possible, so, look, they have to roll out features, they have to unlock growth. The last quarter growth was 36 down from 52 . Forcommanding a valuation in the market, they have to show theres more user growth to come they discounted advertisements, and have you sub stanuated that im not concerned, and the core of the business and content has not rolled out yet its a wait and see. Bring on advertisers sooner rather than later, and, again, back to the fact that snapchat today, back to the ip, no one else has a geofilter no one has location based tagging. Is user growth negative, do you remain positive on the stock . Yes, because the spread is too wide 5 with the demographic holistically, it does not make sense. And, lou, in terms of the potential down the road for the company being acquired, some bigger players saying that, you know, this is a valuable asset or set of eyeballs, who do you think that might be and what timeline are we looking at for that look, i think facebooks naturally acquires, tried it before going public, but looking to expand, looking at disney, new Media Companies<\/a> trying to get into social media, so the suspects looked at to acquire twitter will be the case here and snapchat, and getting back to the valuation, ill agree theres a gap of disparity, but in the market, do we want to make relative valuations bets when we see whats happening with the nasdaq since friday thats probably a risky proposition in this market all right gentlemen, thank you both. Thank you good discussion on snapchat by the way, Arthur Cashin<\/a> walked buy saying theres 350 to sell on the bell perhaps feeding into the further weakness seen here all right when we come back, well have the closing countdown. Right after the bell, wonder woman doing what only four other movies have done what that is and how the rate of the hollywoods queen at the box Office Impacts<\/a> time warner, its owner, and the mieov business. Youre watching cnbc, first in Business World<\/a>wide their leadership is instinctive. Theyre experts in things you havent heard of. Researchers of technologies that one day you will. Some call them the best of the best. Some call them veterans. We call them our team. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network<\/a> to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Usaa gives me the and the security just like the marines did. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com welcome back, a quick market flash with susan lee hi, mike. Airline shares today, slipping as oil prices are inching up field costs may be going up for the airlines, so oil is edging up, close to 1 of the session on signs of inventory declines for the u. S. And news that maybe saudi arabia limits crude to asian buyers in july, and then deepen cuts to the u. S. , so airlines are now the biggest drag with the dow Jones Transport<\/a> index, otherwise, its outperformed the rest of the markets today. Back to you. Susan, thank you very much. So bob on the floor. A lot of back and forth today starting out downgrade of apple cricket to the downside on big cap techs, but on the whole, a modest response thats right. Importantly, we had follow through to the faang, whatever you call them, facebook, apple, amazon, google, microsoft crowd out there, they were down, but off the lows attempt to sell off, but other than netflix here, modest declines overall they were down 35 on friday. I think the important thing here is that we did see heavy volumes, churning in the group again, so if you look at etfs with technology stocks, xlk, smh, technology the semiconductor etf, there it is, smh, and slq, and the qqq, heavy volume, 300 normal volume, but did not result in dramatic price drops we saw on friday right finally, debating the value versus growth idea we saw value outperform in the last couple days, of course, primarily energy and bank stocks, so there you see the disconnect there, mike, talking about, and you have been talking about it waiting a long time for values to kick in. A long time the important thing is value, many, many times value outperforms, and last year, value stocks outperformed Growth Stocks<\/a> its not a law of nature that Growth Stocks<\/a> automatically growth has better branding. Really does value people are, like, cranky people it does better when the economic numbers get better, when the cyclical stocks are better and rates go up thats right. What people also dont realize is its not a hard and fast category. Tech is a value name, and they did, in fact, in the early 2000s underperforming. This is the oldest investment styles, hotly debated because its a little fuzzy, growth versus value, where should a stock grow, but i think its important that what weve been seeing is some healthy rotation. Theres not been rotational move, industrials, energy, and to some degree banks picking up where the teches left off. That, to me, is distinguished from, like, a liquidation. Good way to describe it. By the way, volume healthy above average volume right now for a monday with not a lot of news going on. Theres definitely people in the market moving around, and just because the markets, again, you mentioned this, just because were sideways, doesnt mean theres not a lot of interesting things going on. Back and forth, fed meeting wednesday, and with potentially, not a lot of suspense on what to do, but what they say, well have to listen of course, dealing with the giant Balance Sheet<\/a> they had, what everys looking for everyone thinks they raise rates. Nobody knows whether its september where they stop or deal with the Balance Sheet<\/a> or not. A lot of market moving events this week. Well see what happens. Bob, thank you very much ringing the bell, lgi homes, and at the big board, dr. Ben carson, secretary of housing and urban development. Kelly is here with the second hour of closing bell. Dr. Ben carson ringing the closing bell welcome, everybody im kelly evans, dow dropping 34 points on the bell, cutting it in half pretty much the declines saw on the close, and, in fact, s p dropping only about two points, two and a half points. Watching how it shakes out exactly. 21238 for the dow. 2429 for the s p, and nasdaq at 6175 weakness in netflix, and russ,000 hangs on with a slight decline of two points today, 1419 for the small caps. Much more on whats happening in this market momentarily, and shares of General Electric<\/a> popped on news the ceo is stepping down. Coming up, hear from one analyst who says the stock could hit 40, but could not be the any ceo unlocking the value. Back with us to the hour, michael santoli, and jason, and thank you so much for joining us today. Michael, it feels like you could go back to, perhaps, the James Comey Hearing<\/a> thursday, we got through the event, all the sudden people dipped toes back in the trump trade again you dont need tech as the only place to be in the market. Sure. Can you play with that . The market in general looks at the event happening on a predictable day, and we really want them in the past. Once to that point, it raised the question of, okay, where is the market set up . Whats too stretched to one direction or another, so, yes, i think thats whats going on how far it carries is the question right now as we see, its mostly rotational movements, going on for months, market stayed supported in the fashion how much more needs to be done jason, you said for some time now, the trump basket of the not going with it, so is there catchup happening there . I think so. We happen to be rightly or wrongly, we have been more optimistic about the trump economic agenda being passed, particularly, relating to financials and energy. Those are deregulatory moves that can be made, personnel is policy budget and taxes come later on this year, but much more optimistic on sectors where you can do things at the executive branch level a mixed picture, but said financials are most correlated to trumps rating, right thats right. Three vacancies on the Federal Reserve<\/a> board. One is the vice chairman for financial regulation, important as far as stress tests are concerned. This is not something you have to make massive rollbacks to doddfrank to impact leverage ratios banks use or leverage power they have. Moving into a busy period with the stress tests results and everything else, but what are you watching here . What do you think about everything that weve gone through in the last couple trading sessions, big surprise drop in the techs, and now this working itself out cday . Im not entirely sure its not a surprise the markets too big for the fans, and some assumptions are challenged, though, particularly, with whats going on in the trump trade, and in the trump environment, really, will things we expect to happen happen will they be two years down the road later this year . I think theres a little trepidation around that. You know, we have to think and look back facebook is down significantly over the past few days, but up 30 year to date. If the market falls out and theres more chicken little, which i think we will have, it might be a good spot to get in at some point. Looking the the names here, down more than 10 from the 52week highs including nvidia, ibm, verizon, 19 of them in the socalled territory. Some with big tech stocks, down 10 , you gave up three weeks worth of upside. Exactly going back a fair bet in price, but not necessarily that far back in time thats the equation. To me, looking at a touchstone to whether theres more to worry about in all this little bit of a shakeout, its the credit market, which remains unflappable. Its been the beacon so strong you talk to people who invest in the credit markets for a living, and they say its too good yeah. You have to think that thats the area that gets nervous before its time for stock investors to get nervous absolutely. Looking placid over there. Yeah. Look ag the the s p 500, under armour, ge nurmber two, an auto nation. Whats going on . The general pattern looked like a lot of laggards were pick up the idea theres a lot of strategies leaning one way towards another, it seems like some is unwound or brought back to neutral, but, again, not reextrapolating for one day. Thats what we see, profit taking on names that have done very, very well over the past, you know, six months right and going into some names that have a a lot of potential ge, i think that thats been a lid on that stock for a while. Only two things to happen here, right . Either go up 80 on big cap tech names for the year, or that just stops entirely and rotates you guys argue this is probably the healthiest very healthy. We have a cyclical bias. We are overweight financials, industrials, and technology stocks, underweight bond proxies because we think the trump trade is largely reflationary. Depends on the time frame, but feel strongly it will happener sooner or later. As the fed starts to tighten, in some ways, theres more a bias towards higher rates yeah. And Stronger Economic<\/a> growth. This is giving, in some ways, the fiscal and regulatory sides give the fed a brexit exit from financial repression theyll try to do more of that this week one of the largest hedge fuchds funds is returning a chunk of change kelly, bigger is not better in the Hedge Fund World<\/a> these days vikings global investors, Secretive Hedge Fund<\/a> run, told investors it is returning 8 billion. That is according to a source i spoke with today the firm also announced that its chief Investment Officer<\/a> is departing the firm replaced by ben jacobjacobs, serving as cos the fund lost 4 in 2016, which was its worse ever, although, its up in the year through may. The source said they repositioned its portfolio to account for the capital its returning to investors, and that took place over the course of a few weeks with modest volume, im told the firms biggest Long Holdings<\/a> according to recent Regulatory Filings<\/a> were facebook, mic microsoofmicr microsoft, alphabet, and deere they said they would return 1. 25 billion in capital to its limited partners, the firms founder, wrote at the time that the high valuations in the market have created few opportunities for investing, guys 8 billion . What are these well, they own viking looking at the most recent 13f filing, dated, of course, through the end of march, but looking at the holdings, they own a lot of big cap stocks, kelly, one of the big problems for Hedge Fund Manager<\/a>s, these days, gathering, like, 30 billion in assets, and you only have a limited universe of stocks if you want to do a decent amount of work. You cant invest in small and mid cap anytimes and own a small chunk. Its not worth the time. A lot of guys are trying to get smaller in order to invest in smaller names and generate off of it that way leslie, thank you looking at the top holdings, mike, facebook and google, and, you know, but this is already been executed. Sure. Sold into the best market you could hope for not a bad timing move at least. 8 billion is big, but small in the scheme of a 25 trillion stock market its not a question of it being absorbed but what it says about the job of a fundamental Hedge Fund Manager<\/a> now, and its tough. I would say, again, the fed, easy to blame fed for everything, Central Banks<\/a> for everything, but all the low Interest Rates<\/a> made creating alpha very, very difficult based on stock picking, virtually impossible a third of the russell 2,000 has not made money in 12 months. Wow youre keeping a lot of wounded on the Playing Field<\/a> 40 of the s p 500 yields more than the tenyear right now. Thats right. Explaining why people are happy sitting in index i agree with that i know my investors are actually happily in names paying them 57 yield, great stocks to own over the long haul rather than the bond market with Interest Rate<\/a> risks yeah. Active and passive manager issue is one ongoing for the past few years if youre passive, you are are doing phenomenally more at the beginning than the end of the whole thing guys, thank you very much. Major shakeup on wall street after the ceo is stepping down the stock fell 28 in the 16year tenure comparing with a more than 100 gain on the dow up next, hear from somebody who says activist can help the stock rally to 40 a share plus, pitbull tells us where he found opportunities now, and, yes, his biggest must be mistake. We want to hear from you, contact the show on twitter, facebook, or email us at llnbniomell cu. C te us your favorite zonk its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management<\/a> firms in the country. Discover how we can help find your unlock. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Welcome back shares of ge higher by 3. 5 today after the dow component announced the ceo is stepping down Morgan Brennan<\/a> looks tat his tenure and the man replacing him. Thats right. Replacing by John Flannery<\/a> august 1st he led the Health Care Business<\/a> will be chairman in 2018 now, its welcomed news to investors. The reason shares of ge jumped 3. 5 today, the stock has performed poorly, down almost 30 since september 7th of 2001 when immelt took the account, and kwedecreased likelihood theo not hit the target, but this caps a 16year temperature eu including the 9 11 attacks and just as he reinvented the company as a pure play industrial in 2001, ge derived half profit from the financial arm, and, today, roughly 90 comes from all of those industrial segments instead. Immelt shed hundreds of billions of dollars of asset, and ge capital, got the prices he wanted, and allowed ge to shed the too big to fail regulatory label as well, but oil and gas, merging with baker hughs, is a big drag for the company, and while the power acquisition is expected to be an earnings bright spot, analysts say we wont know how big a bright spot until next year, so what to expect now flannery is launching review of all the businesses, and ge is saying, quote, breakups should not be part of the discussion. That said, the cfo and vice chairman, dont be surprised if we see deeper cost cutting, something that immelt weeks ago said likely was necessary to hit the 2018 earnings target kelly . All right, morgan, good stuff, thank you weve got someone who says ge could hit 40 a share, and investored waited for that for some time, but its more about the activist than the new ceo. Graham, thank you for being here kelly, my pleasure. Lets go back to their, you know, back to the company being cautious hitting the metrics for the year, shall we say you said that was the writing on the wall whats happened under the surface here i think what you have is a company thats been extraordinarily optimistic its one of the measures we take of companies in the industrial space, and ge, as a history of overestimating its earnings capability and overestimating the returns on its businesses, and that leads to missed earnings, missed numbers, and also leads to misallocation of capital, and so while jeff im immelt did a lot, its not enough to drive Earnings Growth<\/a> investors have been looking for and havent done enough to create the returns yeah. You also said, and i found this spr interesting, the question is whether cash flows or earnings are more reflective of the underlying strength of the company saying if theres cash flows, theres less value than youd believe . Yeah. I think the most staggering data point found recently is the range of cash flow estimates that exist for ge for 2018 it gives you a clear picture of just how little it is, and i dont think it gives investors too much confidence that the company can manage itself with this size and this scale youve got human working capital swings theres an m a swing as well in working capital, and so i think its inevitable this is going to work towards some sort of breakup. While you talked about nelson peltz, they have not called for breakup explicitly at this point of ge, but look at the track record with dupont, he was clear when he said that, you know, we think theres a lot of costs tied up in the company, and we think that the best way to get to it may be through breaking the company into pieces. I suspect that that will be a tactic that he will use here as well yeah. Graham, is ge significantly bigger, do you think, or difficult to operate than other very Large Industrial<\/a> conglomerates . Seems to me that, you know, others are of similar scale. Anything about about ge, mix of businesses, when they got in and out of the businesses that does leave them in the position right here i think there is an element of that. All these conglomerates are quite different in terms of that, may share end markets, but their dna is different and history is different, and, you know, ge is a revolving door of investments, but that means strained costs in the company, so e wouldnt be surprised to see some significant cost measures as part of the new plan i just think what youve heard is a culture of laissez faire is too much, but culture of its okay, its all good in the end, they are not focusing on dotting the is and crossing ts and driving businesses to get the best bottom line that they can yeah. Graham, interesting, you flagged theres a lot of talk of how the successor ran the Health Care Business<\/a>, but before that, he ran the deal making piece for ge, so does that fit in with your thesis here they are going to break up, and, also, because we had a guest last hour, just wants to hear the Strategic Vision<\/a> is the ultimate answer going to be that there is not one its difficult to have a business that fits with the vision for energy, and, also, for the rest of the portfolio. You know, the Energy Business<\/a> in particular, this is a good deal with baker hughs, but ultimately, they have to separate the whole thing if e they try to run a conglomera conglomerate, its pinned on whether the price moves up and down, creates uncertainty, and probably impacts a multiple longer term. And, finally, graham, who has a rival or competitor in the space, is getting this model right if ge is not right here . Well, while theres an activist investor who might disagree with me, honeywell got it right for quite some time 3m does a pretty good job. Those are quite more a lot more highly valued companies than ge at this point, but they have been delivering more consistency around top line and more consistency around bottom line, and their stocks are far less volatile than ge stock giving more certainty as an investor we have to go, but if they dont break the business up, do you think it gets to 40 a share or no . I think its highly unlikely. All right graham, thank you for joining us any time. A look at the future of ge. Latest jobs report shows the labor market is tightening, and mcdonalds hopes to hire a lot of Young Workers<\/a> this summer with the help of one popular social Media Company<\/a>. Those details coming up. Billionaire investor Warren Buffett<\/a>, the ultimate value investo investors, but one got a winner sshaorning the lunch auction f le tn what its gone for in the past fast take is up next welcome back time now for todays fast take, and first one up, puerto rico votes to become the 51st u. S. State, a huge boom for flag makers, michael. Among other things for sure theres also a lot of talk how to justify set this by creating another red state. Red state oh, presumably thats why congress will not doesnt seem like the vote was representative of the broad population of the island its been split in terms of how theyd like puerto rico to be governed, and, obviously, with the overhang of the debt, its exactly look, i mean, if push comes to shove, i dont know. The biggest flag maker is new jersey base. Go public. The stock move today in. Didnt look it up up next, we have an ipo today, crowd sourcing funds to be the first listing on a National Securities<\/a> exchange. This after elliot motors was the first crowd funded irk eed ipo year are you bullish on these i have a feeling its probably drawing from someplace aside from the traditional ipo market, so its a hybrid from funding and other ways the First Company<\/a> that decided to go public this way when they have the ability to go traditionally. Google it did it an online auction, but youre not necessarily seeing substantial pee stampede in this one what is up with this, winning lunch for warren buffets, down, and it should go ever higher youd think so. Theres obviously scarcity value, but hes never been more accessible to the broader world. Two, youre not going to get a job as his investment chief. Worked in the past. Exactly, but jobs are are facilitied by younger min. I have a feeling, just the quirks of how the market reviewed all right finally, snapchat augmented reality spectacles or facebooks telepathic head bands, pick one, the choice is eternal. The head band which doesnt exist yet nor may never exist. The company is trying to read your brain so you dont have to text updates i get why the industry is focused in the direction because everybody realizes in years, everybodys staring at a brick is going to see so absurd agree how do you get there . Its not with a head band President Trump<\/a>s ownership violate the constitution the attorneys general of maryland and washington, d. C. Launched lawsuits over whether that hotel is allowing trump to impr improperly benefit from foreign governments. Thats up next, and later, rapper and tech investor pitbull lays out a vision for the future of entertainment and tells us what trends in tech he is keeping an eye on. work sfx its not just a car, its your daily retreat. The es and es hybrid. Lease the 2017 es 350 for 329 a month for 36 months. Experience amazing at your lexus dealer. We, the device loving people want more than just unlimited data. We want unlimited entertainment. So we can stream unlimited action. Watch unlimited robots. Watch unlimited romance. If you are into that. But we also want more like. Unlimited hbo. Can i stop dying now mark . No cant do mi amigo. Its unlimited. Besides you are really good at it james. Dont settle for any unlimited data plan. Only the at t unlimited plus plan comes with hbo included at no extra charge. Welcome back, a look at the close today, up a little bit from the lows of the final hour, dow down 36, s p down just two, and russell down two and a half, and nasdaq with a half percent decline. News alert on now. Checking out shares of merck, saying its taken advise of the committee for two of the cancer drug says they are pausing new enrollment in the two studies investigating reports of death in the groups in trials taken the drug you can see merck down 1. 2 . In touch with merck, no more information than whats said here in the press release, but well follow this for more updates. Kelly, back to you they have hundreds of the combinations in testing, correct . I mean, so, how important is multiple my low ma in that in. Thats right. I mean, unclear, really, how much this would necessarily add to overall keytruda. They are correct, tested in hundreds of combination studies here there may be some concerns just over the safety, until we understand what drove the reports and, really, it may not be anything having to do with the drug well wait for more information, but certainly never good news to hear that about a study. Of course a 1 decline in the stock. Not huge, thank you. Thank you time now for a cnbc news update back to sue. Sue . This is whats happening at this hour, everyone. The defense delivering its closing arguments in the bill cosby Sexual Assault<\/a> trial cosbys lawyer told jurors that constants story a new study shows 2 billion adults and children around the world are overweight or obese and suffer Health Problems<\/a> because of it equating to onethird of the worlds population the u. S. Has the greatest percentage of obese children and young adults at 13 . Not a good statistic kelly, back to you wondering, sue, back to the pour ball, if they get a million bucks, is that an income tax or sales tax how is that taxed it is given to them by the california in this case, the power ballot ri, but i dont know what taxes they have to pay if any on that particular that sounds like a mike question, actually he knows that stuff. I have a feeling they are okay with it even at 700,000 after taxes. I think they would. Sue, thank you. You got it. Meantime, washington, d. C. And maryland are joining forces to sue President Trump<\/a> robert frank has the details robert attorneys general of maryland and district of columbia today filing suit against President Trump<\/a> claiming that the government payments to his d. C. Hotel violate part of the constitution now, the suit claims trumps continued ownership of the hotel and hundreds of other companies violates the clause that bars president from accepting gifts from foreign or domestic governments. Now, the hotel received business from several gochts since becoming president like saudi arabia, spending 270,000 in the hotel and hosted the president for his first foreign visit as have the president now, this lawsuit follows a previous suit by the citizens for responsibility and ethics in washington now, that suit is joined by hundreds of restaurants and competing hotels they claim that trumps hotel has an unfair advantage, and that the president is using his office for personal gain now, the Justice Department<\/a> friday issued a 70page defense saying previous president s sold golds to foreign governments journal washington, for example, sold corn meal, and jefferson sold tobacco overseas, and obama received book royalties from overseas libraries the president said he would donate all foreign profits from the hotel to charity, but the hotel has not disclosed financials or information about those charity gifts, guys . So, robert, my question, the Justice Department<\/a> weighed in on this, so sticking with the point, what further action can they now take if justice says theres no problem well, the issue is is there a basis for either of these suits . So justice sought to have the first suit totally closed out, and basically said, look, this shouldnt go forward at all. The question for both suits is is either party harmed can they prove that the states of maryland and the district of columbia have been economically harmed by trumps ownership of the hotel or in the first in the first suit, have the other hotels and restaurants harmed . Thats going to be a challenge what they hope for here is in the discover ri process to be able to discover and get trumps taxes and all the other information so they are hoping the suit doesnt get completely shut out until they can get that information, possibly make that public look, we have to be honest, this is politically driven lawsuits opposed to economically driven no no shocking yeah the point is i cant believe it. Real aim is to get more financials both on the companies and taxes through the lawsuits right which, michael, i mean, thats clearly a fishing expedition unfair advantage in personal gain is separate from the clause right so well, thats what the determination is of. Clearly, this is not conceived as the real goal of the clause, right . Probably was not a preexisting business that somebody is gaining income from, but i have a feeling we kind of knew we were headed in somewhere in this direction when the president said, guess what, i dont have to divest anything right what, robert . Quick . You know, the point is, the clause just by the written language is very archaic, talking about kings, et cetera the spirit is to say we never want the leader of the United States<\/a> to become a vehicle or to be used or bribed by a foreign entity i think thats going to be where the courts sort of decide will you rule based on the spirit of this or by the literal language . Thats what we test with in both these cases. If it gets to that point. Robert, thank you very much. Thank you, guys robert frank in headquarters. Mcdonalds testing a new strategy, all the details coming up first, you may know him as mr. Worldwide. Mr. 305. Up next, musician and producer pitbull talks tech from the emerge conference iniez. Mmg youre watching cnbc first in Business World<\/a>wide or plan for tomorrow . At kpmg, we believe success requires both. With our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. Kpmg. Deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia 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. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships<\/a> to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov well, he rose from the streets of miami to be an International Superstar<\/a> and businessman. Melissa lee is joining us now frommer merge in miami with pitbull. Melissa . Pitbull, mr. 305, mr. Worldwide, you have so many names. I confuse myself some days. Third year speaking at emerge great to see you again thank you seems you are busier than ever, but you have an interesting prompt coming up, called the up fronts for pitbull. Can you tell us about that basically, the up fronts for and what we got going on, i want to start off by saying thank you guys so much for being down here appreciate it, but, yeah, its basically, i feel as an artist, we have so many numbers aggregated, on youtube, theres 10 million views, and when it comes to speaking to people monthly, that 250 Million People<\/a> checking in one way or another we want to utilize numbers and show brands exactly how powerful pitbull, the prabrand is we invite companies such as telemundo, netflix, google, amazon, microsoft, google is going to come watch the speech, but bringing them down to the dominican republic, showing them a great time and showing them its deeper than being an artist, intertapentertainer, tha business behind it to educate them on. Another way to think of it right now. Your reach now is as much as maybe a network even, and thats what networks do well, yes exactly. Thats why we got the ideas from that said, it is just as much as a network, and thats why when we did the deal with fox for the new years eve special here in miami, it was not just us as executive producer, no, we are Owner Partners<\/a> in the endeavor due to the fact of the numbers put up right its about grabbing numbers and making the best example of them for the companies so they understand how we move one step beyond grabbing eyes and numbers. You want to learn about the consumer you have a project right now with a cruise line yes americans love cruising yes its the right place to be. Youre not just partnering to create a pitbull cruise, but its a step further. You want the data. Data mining, and were doing it from the tours to the residencies we have in vegas, second leg of the tour here in the United States<\/a>, and thats an amazing tour, by the way, always thank you for the opportunity, and apply that to whats beginning on with the cruise line they have been great partners allowing us to do fun things on how to really enjoy the consumer, but also gift them on the fact of, you got fans that went to the last cruise we had that came from asia, that came from australia, south africa to come and enjoy that. Now, we want to make sure we got fans around the woshlrld, and w can utilize their data, enjoy, but they get french benefits for being super fans, okay right now, with a lot of things going on in the way that technologys moving so fast, we forget the fact of what a fan is, you know we want to show them their value, utilize their value relatively new to get the data thats been a year and a half . Year and a half we partnered up saying, hey, this is you should really apply this idea to what you got going on because you do have loyal fans, generation in, generation out. The demo is an interesting skew we mess around at the concerts if it goes from the baby chair to the wheelchair. Or the baby seat to the whe wheelcha wheelchair what better to tap into so many different generations and see what they like and want. When you think about using data to the fullest, and, i mean, you have a fragrance, full owner of the Vodka Company<\/a> acquired our first year, full owners in it, and its exciting. One of the First Companies<\/a> we were involved with, our baby, and how can i say would have never been able to in a thousand years sit here in miami, first generation cubanamerican said were full owners in o Vodka Company<\/a>. Its the new this is the new vodka. You heard it here first in terms of using data to the fullest, do you think how to use it across businesses absolutely. You need to utilize across every platform thats what i mean running into a super fan, they are involved with everything you got going on what we want to do is we want to let them know, every night at the shows issue and right now, this is true, without them, there is no pit bull there is no move no way to live our dreams the way that we do, so with that said, they are vested in the journey. We want them to feel that. We want them to let them know that, guys, you were here from the beginning. Right last night, the night before, a chance to perform in los angeles. Youre on tour now. On tour now, but what an honor. 17 years in the game in los angeles, my number one market in the United States<\/a> of america lets take it further. In the world so what better to be able to go back and theyve seen the growth theyve seen the evolution of what pitbull has become to turn into a brand, and now its all about taking it to become a a conglomerate the fans need to be involved with that. They need to be educated on the steps. I want to bring in kelly evans. Kelly . Hello, kelly. Hello, mr. Worldwide, i have to ask about cuba because you talked about being first generation cubanamerican. Yes the president is giving a speech friday, expected to rollback the obama opening to cuba, does he need to do that . Important thing to you i think one word that can sum up what cuba means to me is that the day that it is truly free, and freedom. However politically they play the games that they do, thats why its not politics, its politricks its things out of my hand, but my vision, my dream to be able to live the dream for my grandmother, my aunt, my father, my grandfather, you know, my grandmother was part of the revolutionary war in cuba, quote on quote, or the revolution, not the revolutionary war, but quote on quote, the revolution, just to see freedom, to be able to perform, 4 Million People<\/a> out there, and us enjoying and celebrating that island free, to me, is deeper than politics, deeper than any law they can pass, whatever business they try to do and whatever policies they think is better for them thats what im here for lets see what happens all right all right. Let me ask you then about something different, which also draws on the incredible experience you had over the years. Weve not asked you yet. Its an honor, pitbull, whats the biggest money mistake along the way that you think youve made oh. Plenty of them i mean, look, failure is the mother of success. In business, you have to understand the biggest risk you take is not taking one ive seen, as a matter of fact, i had a conversation backstage about bitcoin. I had eyes on that five years ago. Are you in it im not in it i just truly dont understand it to this point. You know, i want to know more about it, but amazing what they do, and reality is becoming virtual. Literally. So with that said, i would say thats one of them, and i wish i wish i would have had capital in the late 90s to aa quire napster. I would have cut the deal with steve jobs instead a lot of things being in the music business ive seen that music didnt take full advantage of because they were thinking like dinosaurs rather than thinking ahead with technology, you are five years ahead or behind. No gray area so with me, very blessed to see how everything is moving, but its moving in a rapid pace and just as quick as, we say things in the street about other products, making money on those quickly, it leaves quicker its slow. Its a marathon. Not a sprint we are partnering up with the right Companies Moving<\/a> ahead have we made mistakes . Absolutely well continue to make mistakes. Thats a followun story when y become a success awesome awesome, awesome. All right. All right, well wouldnt be emerge without speaking to you. So thank you so much for the time thank you so much appreciate it. Emer emerge, third year, amazing partnership, and many more and to the companies doing great out there right now, from emerge, and from modernizing medicine, guys, keep it up, and thank you. Get back on tour, pit kelly, back to you. Oh, thank you so much, melis melissa, appreciate it i think he should look at pandora, thats another story. Breaking news with john harwood. Kelly, Steve Mnuchin<\/a> made news before the House Appropriations<\/a> committee where he said having asked the congress to raise the debt limit before the august recess saying that tax receipts were slower than expected is now saying it would not create a serious problem to wait until september. That is likely to encourage congress to wait heres how the president s treasury secretary explain it. If for whatever Reason Congress<\/a> does not act before august, we do have backup plans that we can fund the government, so i want to make it clear that that is not the time frame that would create a serious problem however, markets dont want us to wait. Reporter now in terms of markets, he praised as a sign of how well the trump a administration is doing in the economy. Heres the treasury secretary. If you look at the target, theres been trillions of dollars increased, thats a sign of confidence in the trump administrations economic policies reporter now, this was in keeping with the theme today of pumping up the administrations and pumping up the president we saw that in a Cabinet Meeting<\/a> earlier. You can see my column on that subject on cnbc. Com and on twitter. They want it to happen soon, the september talk may not help with that. John harwood in washington, thank you. Forget linkedin, mcdonalds is looking to other sites to recruit summer employees and three tech stocks that carter worth says e ill a arst buy. The names at 5 00 p. M. Eastern [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management<\/a> firms in the country. Discover how we can help find your unlock. Welcome back mcdonalds is getting social in its quest to hire summer employees. Its not turning to the likes of linkedin susan lee has the story. Mcdonalds is hiring this summer 250,000 expected across its u. S. Restaurants. School is out. Thats why more than half of the new hires are expected to be between the ages of 16 to 24 and to reach the young folks, well, mcdonalds is teaming up with snapchat to recruit, becoming the first Major Company<\/a> in the u. S. To use a social app to fill jobs starting tomorrow, those looking to apply, they can go on snapchat, click on mcdonalds handle watch a tensecond video ad and swipe up to check out the companys career web page and the local restaurants that they can apply to snapplication, first tested in australia, theyre now blingibrg it here to the u. S investors have rewarded the ones that have been quickly adopting to this trend, including the likes of mcdonalds, dominos, panera, even starbucks 250,000, when we asked mcdonalds is if this is the average number they hire each and every summer, they didnt provide any comparison for us, but just of note, 850,000, thats the total number that they employ across the United States<\/a>. Wow, they have a ton of turnover to me, its further evidence of a shortage in worker shortage in the labor market. Shortage of willing workers, yeah basically just locating them if youre a company like mcdonalds, youre constantly staffing you have to keep up with the turn this is a way to get in front of people. Theyre having job fairs to hire 1,500 people, and only 750 are showing up snapplications. We bak dreown the Box Office Numbers<\/a> for you. The power of the Nasdaq Market<\/a>. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment<\/a> objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. But we should be seeing more range of motion. K good, im fine. Okay, well lets see you get up from the couch. Im sorry, what . Grandpa come. At cognizant, were uniting doctors, insurers and patients on a collaborative care platform, making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading Companies Lead<\/a> with digital. Welcome back wonder woman is crushing the competition at the box office. Its almost more impressive this weekend than it was last weekend. Its claimed the top spot for the second weekend in a row. Pulled in about 57 million more in north american theaters get this, out of 46 movies to gross 100 million in a weekend, only four have held up better in terms of their performance from week one to week two wonder woman only fell by less than half. Amazing a combination of being just universally well reviewed. Obviously the competition matters, so it didnt seem as if there was a huge release that would steal away the second weekend. I want to see the mummy trailer one more time. Things are breaking right for the movie. It also suggests that maybe the summer isnt necessarily going to be that big tough box Office Experience<\/a> that a lot of people were thinking hollywood was going to be in for. Its been a long time since i opened morgan stern has said, this is a blockbuster youre really going to enjoy. A d. C. Punching back at marvel comics. How theyve gone too far into the marvel universe. Of course, people like me who grew up with the tv series wonder woman. There you go. Theres a nostalgia trade here as well. Is it doing anything for imax its down in the last few months expense reductions, 1400 layoffs, also big 200 million buyback, so not translating into every corner but this is a company thats trying to transform. At the forefront of trying to make movies in theaters as some kind of big experience as opposed to having people wait until its at home. A tougher slot for them this is going to be a debate that heats up. We spoke about it with adam. What happens when more people want to watch, for example, wonder woman at home they cant get to the theater for some reason. Will they pay up i think the studios and theaters will hold fast on this as long as they can. I dont think theyre interested in eliminating that window as well maybe there will be premium pricing to get it faster. A hundred layoffs at imax as you mentioned, not benefiting from the trend thats right. Ticket goeing this year michael, thank you so much for joining us today on closing bell. Well see you right here tomorrow fast money begins right now. Fast money starts right now, live from the Nasdaq Market<\/a> site our traders on the desk are pete, karen, dan and guy tonight on fast, Energy Stocks<\/a> are having their best twoday stretch of the year. And there is one stock trader you see breaking out no matter what oil does. Were going to break it down plus, jeffrey is out as the ceo of General Electric<\/a>. And if history is any indication, that might be your sign to buy the stock. Later, one retail stock is up 20 in june. Were going to give you the name and tell you why traders are piling in","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800605.us.archive.org\/5\/items\/CNBC_20170612_190000_Closing_Bell\/CNBC_20170612_190000_Closing_Bell.thumbs\/CNBC_20170612_190000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240628T12:35:10+00:00"}