Transcripts For CNBC Closing Bell 20170628 : vimarsana.com

Higher one and a quarter percent. Im glad you cleared that up. Me too. Kbupg after the bell. The results of Bank Stress Tests and a number of dimpbd and buyback announcements could follow well tell you what to expect. Bid up again today big moves there lets get to the market move today. The dow, s p having one of their best gains in two months the financials leading the way there, the nasdaq is the big leader with a gain the biggest game percentage wise here lets get to the Closing Bell Exchange right now leah bennett from Westwood Trust is with us today good to see you my friend. And Rick Santelli checks in from the see me in chicago. Rick, i want to start with you because yesterday we talked about this taper tantrum that the european treasuries had had after mario said, you know, used the word reinflammation instead of disinflation, and the ecb had to walk that back today. You know, those yields havent given up all the that much as a result of that, have they . No, and that really is the point, listen, i get the walkback, i understand none of this has ever been done before, central bankers are a little apprehensive, words have meaning at this point. The market paid a whole lot more attention, and youre exactly right. Whether you look at spain, italy, candie, u. S. , bobbles, the amount of increase in rates yesterday was larger than the givebacks today. Reminds me a lot of the stock market for many, many weeks in 2017, where we had very few corrections and when we do have down dates, theyre dwarfed by the updates, same type of thing. How are we supposed to interpret that my reasoning after talking to many fixed income traders is, listen, we dont know what marios direct timeline is, theyre going to be gun shy if it affects the markets, Global Markets that is, because its the First Central Bank outside the u. S. To actually think theyre going to start pulling the reigns and slowing things down a little bit. At least with regard to stimulation, accommodation, quantitative easing, its going to be a bumpy ride, i dont know if i call it a taper tantrum, i would call it just a mini taper tantrum, and in that description lies some of the odds in the marketplace, its very significant, how significant if we get closed, ten year note yields above 226 which by the way was the high of that quick move from right before the election to right after the election, when we went from 177 on the 4th of november to the 14th at 226, boy, that level is now turned out to be very important because it basically was the high yield today, thats your pivot to watch for treasuries i would use 40 to 2 to 45 basis points for that same pivot for boons. And steve, is that behind the move higher and financials today or is that because of more anticipation about this afternoon . How much is price even if we get a slew of announcements about buybacks and returns i think its probably a combination of the two i do think its about the results that were going to hear later on today kudos for rick for getting in the word, the first time i remembered hearing it on a 3 00 p. M. Spot with cnbc. Maybe we should take a moment for that spell it. Look at ricks face rick, make the face. There it is there it is you know, when you look plop, plop, fizz, fizz. When you look at the back half, were running into quarter end. Were going to have to decide, is it the horse or horses that have gotten us here . Health care up 14 is it going to be technology up thereabouts . Who is going to take and do the heavy lifting across the finish line look at financials, you look at energy, those have been the underperformers. Financials, couching a bit energy, couching a bit, energy is down 14 . So if you have those guys doing a beta chase trying to make up for lost performance, theyre not going to get it by buying tech and health care, theyre going to have to place their flag in the ground and make a bet on energy, on reads, so were on one of the underperformers. And leah, we can anticipate this afternoon with the feds stress test results, were going to get some dimpbd increase announcements here, but youre looking overseas in europe for dimpbds right now, why yes, thats correct at westwood group, we have an office in toronto that focuses a lot on international and emerging market opportunities. And if you look over in europe, valuations are lower and dimpbds are rising at a faster rate than they are here in the United States so we think theres a lot of interesting opportunities there, the stock that we certainly liked quite a bit. We think its positively leveraged to the recovery in europe it was a great Management Team, and its very consistent with our investment approach of looking for companies that have Earnings Growth that is underpreerkted by wall street. Would you say the twing kiss, one of those companies, leah yeah, twinkie is another good example. We want our strategy here called westwood select thats our best ideas across the firm. And the hostess is a name that we known our Small Cap Value strategy so everybodys been talking aboutings this year, the amazon whole food acquisition which is exciting and organic foods is certainly an area thats growing very rapidly, but you have to talk to those that cater sugar as well. So, hostess is an iconic brand that had a new Management Team come in about two years ago, they were bought out of bankruptcy, a fantastic team that has turned around 80 iconic brands, including duncan hines we think this company also is underappreciated and the margins are growing at a nice rate and it has the potential for an increase and their Balance Sheet characteristics, definitely something we like. Up 61 in three years steve, what do you think, is this a one day wonder, this rally . Do you suspect this what has been a very quiet market in terms of volatility that we could see it beginning of a new trend here you know, you really have to look at it in a couple of different ways, theres been the rise of pass i have investing versus active management and whenever you look back, bill, look at a lot of charts, whenever we do sell off the selloffs are shortener duration and even if they are in deep, you whip back quickly. And i think its a matter of guys just getting involved in what they deem as to be the best marketplace and best sector, the best space, and you cant keep people out of the equity market. It just seems like this market has a bid. There might be different leadership, but we dont take that step backwards. So, although we could see a little bit of a sell off, i do believe going to the back half people probably are going to invest more money into this marketplace. So ultimately, higher markets stay with it, stay diversified all right very good, thank you nice to see you. Thank you. Appreciate your thoughts on todays market i didnt realize russell has a better gain than the nasdaq. And its about the same in point terms too. Interesting. Nasdaq trying to make up for losses yesterday the dow more than doing so, up 151. Fedex announcing a potential issue that could show up on its next Earnings Report im Morgan Brennan has that story, morgan. Hey kelly, they were halted earlierier today for pending news the key statement, quote, we cannot measure the Financial Impact of the Service Disruption at this time, but it could be material so what does it refer to well, fedex disclosing that its tnt express unit which it acquired last year was quote significantly by a systems virus. That update on the heels of a massive ransom ware attack that hobbled a number of Companies Across the globe this week fedex saying tnts operations and Communications Systems were disrupted, but that no data breach was known to have occurred also that operations of other fedex businesses are unaffected. So it marks the second time in less than two months that fedex has been affected by a cyber attack remember, in may, the company said it experienced issues with some of its Microsoft Window systems due to that virus that impacted industries and governments in hundreds of countries. Nonetheless, you look at shares of fedex today, they are moving higher theyre up more than 1 . Near the alltime highs they recently hit guys, back over to you still a troubling development. Markets not troubled by it. Yeah, but you know, you just have to wonder if thats because these havent been systemic so to speak until now, but, you know, you can bake it into the share price, maybe move through after one quarter. Now that they are becoming more pervasive, you know, i just wonder if theyre even if theyre spending more on Cyber Security over time and i dont know, morgan, if this was just mandated by fcc, they have to tell everything put everything on the table. They said as they go through the process, it could have a Material Impact on them, right yeah, and you know, and thats the thing to key in on. We dont know whether its going to have a Material Impact or not, they dont knee, but the fact that it could, i think, it was the last line in the press release, guys, the other thing i would just note, the transports are outperforming today too. You talked about the small caps, the small caps are outperforming too. Part of the fact that it might be part of this broader, bid to the upside for these names right now. A full Service Report from Morgan Brennan there you can get a nod to the transports i deliver see you later, yep. That she does. Now to blue aprons ipo pricing thats expected this afternoon we have a lot coming up next hour yes great stuff the drama is all leading up to the trading that begins here at New York Stock Exchange tomorrow, leslie has the story for pus. Plenty of drama indeed, bill, after blue apron filed an amended perspective this morning, slashing its range, the company is now seeking 10 to 11 per share after investor demand was too weak that the earlier 15 to 17 price range. Now, its rare for companies to refile with a lower price range, only 4 of Internet Companies have done so since 2010 according to deal logic. Big investor concerns around this one involve the Business Model. Sending a box of ingredients to customers homes that they then have to cook themselves. Theyre also skeptical about the cost of acquiring new customers, and blue aprons inability to keep loyal ones. And theyre nervous about the competitive environment. Not just with other Meal Kit Delivery startups, with the looming tieup between amazon and whole foods. And lowering the price range, blue apron is forfeiting about 200 million in proceeds from the ipo and shaving 1 billion off its valuation at the new range, blue apron is asking for a price in line with what investors paid in its latest private round two years ago. Thats not a reinforcing sign for the ipo market or the private funding market, guys well, i guess the question, leslie would be, how much more have they done to create, you know, a mote around the business and lets bring in bob on that as well whos here with us at post nine, bob, in those two years, has the company made it harder for competitors or not . Thats right. Thats really the whole story and why they reduced the price the line between grocery delivery, which is what amazon is doing with the whole foods purchase and Meal Delivery which is what blue apron is doing is very thin. The mote to answer your question is not very wide at all. And thats the problem and by the way, weve seen this with other companies, remember what happened to snap. We had the snap ipo just a little while ago, then immediately, of course, everybody came out and said wait a minute, facebooks got instagram, thats a major problem. Weve seen these gigantic Tech Companies invade the smaller spaces before. Remember the smaller company, etsy, they handy crafts, and amazon said amazon so is going to do that and their stock dropped as well on that. This has been around far while, this problem we have here with us a meal kit. This is a big one. This has got three different recipes. This is the produce you were talking about. Yeah, thats the mountain of produce that he was referring to leslie, have you used blue apron . I have not used it myself you have not, okay. Ive been studying the financials enough that i feel like i could make almost a blue apron financial dinner, but no, i have not eaten the actual meal kit. Have you . Ive done plated which is very similar and what i hope is clear about this, all of these Meal Services like blue apron are sending you the raw ingredients, and you prepare it yourself. And after doing plated, i ended up with a ton of extra food. My schedule is changing too much i couldnt take advantage of it, if there was one where it was hopping in the microwave, its read yes three minutes type of thing, sign me up. But in, i couldnt make this work have you got with an all vegetarian meal plate . There is one in there one is vegetarian. I was looking for that. Theres pork chops with Honey Mustard pants sauce. Now im interested. With barely salad this is for the pork chop that is for the pork chop hand me the other two menus. They took those away from me to show them for display purposes very quickly here. This is the vegetable toes tada. Thats the veggie one and then this one is a noodles, this is also vegetarian. You know and wheres the wine choices . They have wine choices on here too i know. On the menu card. I dont know, you know youre quite the chef i love to cook. These are interesting recipes, its an interesting concept, but we have responses from our viewers, and i asked on twitter whether youre a fan of blue apron, and we had were just going to show two of themhere guess, both one pro, one con, and heres the pro its great for a busy person, senior, the sickly who need proper nutrition, this helps family members who increasingly take care of family members. Thats fantastic. But heres the one, and i guess i could have written this one, even though he didnt phrase it exactly the way i would. He says im not lazy, i go to the store. Its not that im not lazy, i prefer to pick out my own stuff. By the way, heres how they frame it it should be a cooking education it is i learned thousand make a great vinaigrette from these. Are you going to stick with it thats the thing weve done this used all your time. I go to whole foods and make my own martinis, i know how to do that. Got to have enough olive in this there youre going to be hungry. For those of white house live on that. Leslie, thank you. Thank you, guys probably more on that pricing, we hope in the next hour which again was cut significantly below what they were looking for originally. 45 minutes to go until the close. Are you bringing the food home whats happening no, i already know what im making tonight, and its not that dows up 147 points today, nasdaqs up 82 thats helping wipe away some of yesterdays declines s ps up 22. And the 82 or 22. You can see it all there its right there whereby yeah tweet from President Trump is calling amazon out for, quote, not paying internet taxes. When we come back, a tax expert weighs in on whether the president is right or not. Also ahead, should investors be buying shares of big banks or regional one ahead of the stress test results due out this afternoon. Two wall street strategists will debate that coming up. Youre wchating cnbc, first in meal kits worldwide. baby crying minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons® the number 1 choices in hospitals. Youre in the match app. Now tap on the new missed connections feature. It says ive crossed paths with kate six times this week. That is a lot of times. Shes cute too yea how did i miss her . You didnt. Match picked it up for you. Check out new missed connections on match. Start for free today we cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats up to 16 times faster than slow internet from the phone company. Say hello to faster downloads with internet speeds up to 250 megabits per second. Get fast internet and add phone and tv now for only 34. 90 more per month. Call today. Comcast business. Built for business. Why do they put the carrots in plastic you think these two would be in the same one. President trump taking another swipe at amazon and jeff today on twitter this morning, he did tweet the amazon Washington Post sometimes referred to as the guardian of amazon not paying internet taxes which they should is fake news as we know, this isnt the first time he has taken this on. However, its something that he did several times while campaigning for the white house. I have respect for jeff bay soes, had but he bought the Washington Post to have political influence, and ive got to tell you, we have a different country than we used to have. We have a different, he owns amazon he wants political influence so that amazon will benefit from it, thats not right and believe me, if i become president , oh do they have problems theyre going to have such problems amazon, which through its ownership controls the Washington Post, should be paying massive taxes but its not paying. And its a very unfair playing field. And you see what thats happening and what thats doing to Department Stores all over the country. Very, very unfair and youre talking about billions and billions of dollars. They should be paying those taxes. Maybe thats why jeff wasnt smiling when he sat next to the president. That is wooil rineheart, hes with the Bank Stress Tests<\/a> and a number of dimpbd and buyback announcements could follow well tell you what to expect. Bid up again today big moves there lets get to the market move today. The dow, s p having one of their best gains in two months the financials leading the way there, the nasdaq is the big leader with a gain the biggest game percentage wise here lets get to the Closing Bell Exchange<\/a> right now leah bennett from Westwood Trust<\/a> is with us today good to see you my friend. And Rick Santelli<\/a> checks in from the see me in chicago. Rick, i want to start with you because yesterday we talked about this taper tantrum that the european treasuries had had after mario said, you know, used the word reinflammation instead of disinflation, and the ecb had to walk that back today. You know, those yields havent given up all the that much as a result of that, have they . No, and that really is the point, listen, i get the walkback, i understand none of this has ever been done before, central bankers are a little apprehensive, words have meaning at this point. The market paid a whole lot more attention, and youre exactly right. Whether you look at spain, italy, candie, u. S. , bobbles, the amount of increase in rates yesterday was larger than the givebacks today. Reminds me a lot of the stock market for many, many weeks in 2017, where we had very few corrections and when we do have down dates, theyre dwarfed by the updates, same type of thing. How are we supposed to interpret that my reasoning after talking to many fixed income traders is, listen, we dont know what marios direct timeline is, theyre going to be gun shy if it affects the markets, Global Markets<\/a> that is, because its the First Central Bank<\/a> outside the u. S. To actually think theyre going to start pulling the reigns and slowing things down a little bit. At least with regard to stimulation, accommodation, quantitative easing, its going to be a bumpy ride, i dont know if i call it a taper tantrum, i would call it just a mini taper tantrum, and in that description lies some of the odds in the marketplace, its very significant, how significant if we get closed, ten year note yields above 226 which by the way was the high of that quick move from right before the election to right after the election, when we went from 177 on the 4th of november to the 14th at 226, boy, that level is now turned out to be very important because it basically was the high yield today, thats your pivot to watch for treasuries i would use 40 to 2 to 45 basis points for that same pivot for boons. And steve, is that behind the move higher and financials today or is that because of more anticipation about this afternoon . How much is price even if we get a slew of announcements about buybacks and returns i think its probably a combination of the two i do think its about the results that were going to hear later on today kudos for rick for getting in the word, the first time i remembered hearing it on a 3 00 p. M. Spot with cnbc. Maybe we should take a moment for that spell it. Look at ricks face rick, make the face. There it is there it is you know, when you look plop, plop, fizz, fizz. When you look at the back half, were running into quarter end. Were going to have to decide, is it the horse or horses that have gotten us here . Health care up 14 is it going to be technology up thereabouts . Who is going to take and do the heavy lifting across the finish line look at financials, you look at energy, those have been the underperformers. Financials, couching a bit energy, couching a bit, energy is down 14 . So if you have those guys doing a beta chase trying to make up for lost performance, theyre not going to get it by buying tech and health care, theyre going to have to place their flag in the ground and make a bet on energy, on reads, so were on one of the underperformers. And leah, we can anticipate this afternoon with the feds stress test results, were going to get some dimpbd increase announcements here, but youre looking overseas in europe for dimpbds right now, why yes, thats correct at westwood group, we have an office in toronto that focuses a lot on international and emerging market opportunities. And if you look over in europe, valuations are lower and dimpbds are rising at a faster rate than they are here in the United States<\/a> so we think theres a lot of interesting opportunities there, the stock that we certainly liked quite a bit. We think its positively leveraged to the recovery in europe it was a great Management Team<\/a>, and its very consistent with our investment approach of looking for companies that have Earnings Growth<\/a> that is underpreerkted by wall street. Would you say the twing kiss, one of those companies, leah yeah, twinkie is another good example. We want our strategy here called westwood select thats our best ideas across the firm. And the hostess is a name that we known our Small Cap Value<\/a> strategy so everybodys been talking aboutings this year, the amazon whole food acquisition which is exciting and organic foods is certainly an area thats growing very rapidly, but you have to talk to those that cater sugar as well. So, hostess is an iconic brand that had a new Management Team<\/a> come in about two years ago, they were bought out of bankruptcy, a fantastic team that has turned around 80 iconic brands, including duncan hines we think this company also is underappreciated and the margins are growing at a nice rate and it has the potential for an increase and their Balance Sheet<\/a> characteristics, definitely something we like. Up 61 in three years steve, what do you think, is this a one day wonder, this rally . Do you suspect this what has been a very quiet market in terms of volatility that we could see it beginning of a new trend here you know, you really have to look at it in a couple of different ways, theres been the rise of pass i have investing versus active management and whenever you look back, bill, look at a lot of charts, whenever we do sell off the selloffs are shortener duration and even if they are in deep, you whip back quickly. And i think its a matter of guys just getting involved in what they deem as to be the best marketplace and best sector, the best space, and you cant keep people out of the equity market. It just seems like this market has a bid. There might be different leadership, but we dont take that step backwards. So, although we could see a little bit of a sell off, i do believe going to the back half people probably are going to invest more money into this marketplace. So ultimately, higher markets stay with it, stay diversified all right very good, thank you nice to see you. Thank you. Appreciate your thoughts on todays market i didnt realize russell has a better gain than the nasdaq. And its about the same in point terms too. Interesting. Nasdaq trying to make up for losses yesterday the dow more than doing so, up 151. Fedex announcing a potential issue that could show up on its next Earnings Report<\/a> im Morgan Brennan<\/a> has that story, morgan. Hey kelly, they were halted earlierier today for pending news the key statement, quote, we cannot measure the Financial Impact<\/a> of the Service Disruption<\/a> at this time, but it could be material so what does it refer to well, fedex disclosing that its tnt express unit which it acquired last year was quote significantly by a systems virus. That update on the heels of a massive ransom ware attack that hobbled a number of Companies Across<\/a> the globe this week fedex saying tnts operations and Communications Systems<\/a> were disrupted, but that no data breach was known to have occurred also that operations of other fedex businesses are unaffected. So it marks the second time in less than two months that fedex has been affected by a cyber attack remember, in may, the company said it experienced issues with some of its Microsoft Window<\/a> systems due to that virus that impacted industries and governments in hundreds of countries. Nonetheless, you look at shares of fedex today, they are moving higher theyre up more than 1 . Near the alltime highs they recently hit guys, back over to you still a troubling development. Markets not troubled by it. Yeah, but you know, you just have to wonder if thats because these havent been systemic so to speak until now, but, you know, you can bake it into the share price, maybe move through after one quarter. Now that they are becoming more pervasive, you know, i just wonder if theyre even if theyre spending more on Cyber Security<\/a> over time and i dont know, morgan, if this was just mandated by fcc, they have to tell everything put everything on the table. They said as they go through the process, it could have a Material Impact<\/a> on them, right yeah, and you know, and thats the thing to key in on. We dont know whether its going to have a Material Impact<\/a> or not, they dont knee, but the fact that it could, i think, it was the last line in the press release, guys, the other thing i would just note, the transports are outperforming today too. You talked about the small caps, the small caps are outperforming too. Part of the fact that it might be part of this broader, bid to the upside for these names right now. A full Service Report<\/a> from Morgan Brennan<\/a> there you can get a nod to the transports i deliver see you later, yep. That she does. Now to blue aprons ipo pricing thats expected this afternoon we have a lot coming up next hour yes great stuff the drama is all leading up to the trading that begins here at New York Stock Exchange<\/a> tomorrow, leslie has the story for pus. Plenty of drama indeed, bill, after blue apron filed an amended perspective this morning, slashing its range, the company is now seeking 10 to 11 per share after investor demand was too weak that the earlier 15 to 17 price range. Now, its rare for companies to refile with a lower price range, only 4 of Internet Companies<\/a> have done so since 2010 according to deal logic. Big investor concerns around this one involve the Business Model<\/a>. Sending a box of ingredients to customers homes that they then have to cook themselves. Theyre also skeptical about the cost of acquiring new customers, and blue aprons inability to keep loyal ones. And theyre nervous about the competitive environment. Not just with other Meal Kit Delivery<\/a> startups, with the looming tieup between amazon and whole foods. And lowering the price range, blue apron is forfeiting about 200 million in proceeds from the ipo and shaving 1 billion off its valuation at the new range, blue apron is asking for a price in line with what investors paid in its latest private round two years ago. Thats not a reinforcing sign for the ipo market or the private funding market, guys well, i guess the question, leslie would be, how much more have they done to create, you know, a mote around the business and lets bring in bob on that as well whos here with us at post nine, bob, in those two years, has the company made it harder for competitors or not . Thats right. Thats really the whole story and why they reduced the price the line between grocery delivery, which is what amazon is doing with the whole foods purchase and Meal Delivery<\/a> which is what blue apron is doing is very thin. The mote to answer your question is not very wide at all. And thats the problem and by the way, weve seen this with other companies, remember what happened to snap. We had the snap ipo just a little while ago, then immediately, of course, everybody came out and said wait a minute, facebooks got instagram, thats a major problem. Weve seen these gigantic Tech Companies<\/a> invade the smaller spaces before. Remember the smaller company, etsy, they handy crafts, and amazon said amazon so is going to do that and their stock dropped as well on that. This has been around far while, this problem we have here with us a meal kit. This is a big one. This has got three different recipes. This is the produce you were talking about. Yeah, thats the mountain of produce that he was referring to leslie, have you used blue apron . I have not used it myself you have not, okay. Ive been studying the financials enough that i feel like i could make almost a blue apron financial dinner, but no, i have not eaten the actual meal kit. Have you . Ive done plated which is very similar and what i hope is clear about this, all of these Meal Services<\/a> like blue apron are sending you the raw ingredients, and you prepare it yourself. And after doing plated, i ended up with a ton of extra food. My schedule is changing too much i couldnt take advantage of it, if there was one where it was hopping in the microwave, its read yes three minutes type of thing, sign me up. But in, i couldnt make this work have you got with an all vegetarian meal plate . There is one in there one is vegetarian. I was looking for that. Theres pork chops with Honey Mustard<\/a> pants sauce. Now im interested. With barely salad this is for the pork chop that is for the pork chop hand me the other two menus. They took those away from me to show them for display purposes very quickly here. This is the vegetable toes tada. Thats the veggie one and then this one is a noodles, this is also vegetarian. You know and wheres the wine choices . They have wine choices on here too i know. On the menu card. I dont know, you know youre quite the chef i love to cook. These are interesting recipes, its an interesting concept, but we have responses from our viewers, and i asked on twitter whether youre a fan of blue apron, and we had were just going to show two of themhere guess, both one pro, one con, and heres the pro its great for a busy person, senior, the sickly who need proper nutrition, this helps family members who increasingly take care of family members. Thats fantastic. But heres the one, and i guess i could have written this one, even though he didnt phrase it exactly the way i would. He says im not lazy, i go to the store. Its not that im not lazy, i prefer to pick out my own stuff. By the way, heres how they frame it it should be a cooking education it is i learned thousand make a great vinaigrette from these. Are you going to stick with it thats the thing weve done this used all your time. I go to whole foods and make my own martinis, i know how to do that. Got to have enough olive in this there youre going to be hungry. For those of white house live on that. Leslie, thank you. Thank you, guys probably more on that pricing, we hope in the next hour which again was cut significantly below what they were looking for originally. 45 minutes to go until the close. Are you bringing the food home whats happening no, i already know what im making tonight, and its not that dows up 147 points today, nasdaqs up 82 thats helping wipe away some of yesterdays declines s ps up 22. And the 82 or 22. You can see it all there its right there whereby yeah tweet from President Trump<\/a> is calling amazon out for, quote, not paying internet taxes. When we come back, a tax expert weighs in on whether the president is right or not. Also ahead, should investors be buying shares of big banks or regional one ahead of the stress test results due out this afternoon. Two wall street strategists will debate that coming up. Youre wchating cnbc, first in meal kits worldwide. baby crying minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons\u00ae the number 1 choices in hospitals. Youre in the match app. Now tap on the new missed connections feature. It says ive crossed paths with kate six times this week. That is a lot of times. Shes cute too yea how did i miss her . You didnt. Match picked it up for you. Check out new missed connections on match. Start for free today we cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats up to 16 times faster than slow internet from the phone company. Say hello to faster downloads with internet speeds up to 250 megabits per second. Get fast internet and add phone and tv now for only 34. 90 more per month. Call today. Comcast business. Built for business. Why do they put the carrots in plastic you think these two would be in the same one. President trump taking another swipe at amazon and jeff today on twitter this morning, he did tweet the amazon Washington Post<\/a> sometimes referred to as the guardian of amazon not paying internet taxes which they should is fake news as we know, this isnt the first time he has taken this on. However, its something that he did several times while campaigning for the white house. I have respect for jeff bay soes, had but he bought the Washington Post<\/a> to have political influence, and ive got to tell you, we have a different country than we used to have. We have a different, he owns amazon he wants political influence so that amazon will benefit from it, thats not right and believe me, if i become president , oh do they have problems theyre going to have such problems amazon, which through its ownership controls the Washington Post<\/a>, should be paying massive taxes but its not paying. And its a very unfair playing field. And you see what thats happening and what thats doing to Department Stores<\/a> all over the country. Very, very unfair and youre talking about billions and billions of dollars. They should be paying those taxes. Maybe thats why jeff wasnt smiling when he sat next to the president. That is wooil rineheart, hes with the American Action<\/a> forum i dont know where to begin with this story, lets lay it out here amazon does collect sales tax from people who buy from them who live in the 45 states that have a sales tax so there are taxes that are paid, but what about amazon itself and the taxes it pays . Where do we stand on that . So yeah, i think the president was half right here, and in part yeah, as you mention, amazon clearly does pay sales taxes in the states that its required to, and it really started this in april 1st, however, theres the other part of the amazon which most people dont really Pay Attention<\/a> to as muchwhich are the third party dealers, the platform itself amazon is more complicated which make up probably about half of all retail sales will isnt it the case i thought it was that jeff basos owns the Washington Post<\/a>, not amazon right true, he does that. He owns the Washington Post<\/a> and amazon theyre structurally separate, yes. No, but my point is if jeff owns the Washington Post<\/a>, what bearing does that have on amazon the corporations, you know, taxes. It shouldnt. I would suspect, i am i dont see why there would be any why there would be any inner connection all right well were laying that out there all right yeah. Where do we stand though the Supreme Court<\/a> ruled years ago that company doesnt have to pay sales tax if they dont have a physical presence in a state amazon is now developing physical presences with brick and mortar stores, we know they have one in new york city for example. Yes so thats going to change their tax situation going forward, isnt it . Yes, it will. So they have agreed, at least in april they agreed to start, you know, collecting taxes for the states that require sales tax. And with the, you know, with the new deal thats been launched, potentially they have a bigger, bigger tax incident. So it seems like maybe, maybe they in fact got into these deals and are now working with the state specifically for this reason, but yeah, it is the case amazon is now going to be, you know, now has a bigger footprint in the retail world and a lot of the problems they had in the past really have kind of gone away since april will, the issue at heart here is also whether the administration would ever push back against amazons market power, obviously good question yeah, they are quick to point out look, we have a small share of grocery if you want to paint it that way, but do you think that theres a feeling that amazons success could make it a target yeah, it could be i think theres been a sea change and not for the right reasons in the antitrust this is one of the other areas i work a lot in. And i really would hope that, you know, whoever comes in and starts really shaping the ftc on these issues really, really deals with consumerbased harms and really weve seen, especially from a lot of commenters in this space that they really havent talked about what the harm is going to be of this merger. Thats what i would focus on i hope the administration would do the same. All right will, thanks, appreciate your insights thank you will we should point out director of technology and innovation policy at the American Action<\/a> forum. And we have 35 minutes to go. Dow up nearly 150 points today more than rebounding from yesterday, the other savage trying to do the same. The transports morgan mentioned earlier also up 150 points dollars weaker hanging on to the 96 level and the nasdaqs up 85. The maker is gaining ground on wall street despite a decline in yogurt sales. Well talk about the key drivers and challenges confronting general mills. As it pertains to yogurt coming up and American Airlines<\/a> is testing some new scanning technology will it speed up lines at the airport . Those details are coming up. The,ou mth gliover er wld you whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if there was a single site where you could find the right hotel for you at the best price . There is. Because tripadvisor now compares prices from over 200 booking sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. 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. Again, well get the second part of the results from the stress test after the bell today. J and j and murk are the decliners. There are about six of them out of all 30. General mills trading higher after reporting both an earnings and revenue beat before the bell this Morning Company<\/a> credited its successful quarter to cutbacks in both promotions and costs despite the beat though, General Motors<\/a> had a 3 decline in u. S. Sales most of that driven by a double digit decline in yogurt sales. However it may be able to turn those numbers around after releasing a new frenchstyle yogurt endearingly called we. The company said there is no official definition for french yogurt, quote, it is more of a standard we have created the head of the yogurt unit said, i think greek yogurt is over. Its been over for a while. And now theres an icelandic yogurt its delicious. Is it all right. I got scurvy delicious, but i got the yogurt here, and it was no beuno. Heres the deal, does anybody like yogurt, plain yogurt . Its healthy, its good for you, you can lose weight, you know, blah, blah, blah, but, in order to get people to teet, you have to add stuff and that takes away some of the benefits of eating yogurt. So now this whole greek nonsense has gotten in the way. Its not that its better for you, its the pro teen craze and the new flavor thing, and its now kind of playing itself out yogurt will remain popular probably i think its a fad. Itll remain popular as long as you keep the cutting and over to it. Reporter see, you keep the cutting edge stuff going there, and people will eat it, but just plain yogurt, not happening. Indian food thats what its good for. Curried yogurt. Time now for a cnbc news update with sue hare ra, hello hello guys, and i love plain yogurt heres whats happening in other parts of the world President Trump<\/a> convening and Energy Round Table<\/a> meeting at the white house this morning and he met with governors and triable leaders, freeing up access to developing Natural Energy<\/a> resources former president obama and his family paying a visit to a temple in indonesia. Aarrived following a five day vacation on the Resort Island<\/a> of bali the obamas will be in the city for two days a Police Helicopter<\/a> fired on venezuelas Supreme Court<\/a> in what president nicholas ma dur row said was a thwarted terror attack he later said the chopper fired on the court with grenades, some of which did not detonate, and that helped to avoid any deaths. Venezuelan officials are hunting for the police bhoon carried out that attack. And President Trump<\/a> welcoming the manager and several players from the world series champion chicago cubs to the white house. They gave him a team jersey with the number 45 in recognition of his being the 45th president of the United States<\/a>. President trump called the cubs a great team thats the news update this hour, ill send it back downtown to you, kelly. All right, thank you, sue im on the floor here with kenny of oneil securities and i understand maybe you could take these ingredients, cook us a storm i could, id like you dont need it to come in a box prepackaged. I wouldnt work for you if they get on your distribution list at the bottom. Every day will be a recipe for amazing italian food you should launch meal preparation service. I should. From your lips to gods ears i like yogurt and i use it in my banana bread, its good. See what im saying what do you make of the market meantime today its interesting between yesterday and today. Yesterday you had this nervous, kind of varietyfilled market, yet today, its all gone away. All of that anxiety has gone away trump came out, they had the meeting at the white house with all the senators theyre trying to get something done. Theyre trying to paint the better picture that hes got this meeting today with all of these energy, energy executives, and, you know, hes trying to turn the conversation, and i think what that tells you about the market is very anxious depending on the news of the day, yesterday, look what happened yesterday, before you know, the s p and up 24 on what . Nothing really changed between yesterday and today. Weve also got oil moving around weve got news about europe maybe tightening or yields moving up a little bit the Financial Stress<\/a> test results after the bell today thats right, a lot of that news was out yesterday mario came out with that news yesterday about potentially tightening and janet yellen came out yesterday and said were still ready to go. And the market could get nervous. Today, its like theyre not paying attention to what happened yesterday i think what that tells you is that were stuck in this 22, 25, 2250 trading range and i think were going to be stuck there at least until we get through next week. If i dont see anything dramatic between now and then by the way, for you down here, the fact that blue apron had to cut of offer price, does that make you uneasy at all . I dont think it makes us uneasy, i think its a reality of whats happening in the space. The whole food things is not helping that at all, but id be happy to talk to blue apron. Happy to cook this stuff. You think im ready to go with that. Thank you very much. Kenny, over to you, bill all right i see a cook off between myself and mr. Him at some point. Perfect. Listen, i am so up for that all right charity buzz. See you later. 27 minutes left in the trading session there, the dow up 15 1 points nasdaq and wrestled up more percentage wise major air carrier is Testing New Technology<\/a> aimed at speeding up the airport screening process. We have details coming up on that, and ahead of the results of the feds second round of stress tests, two leading strategists named big and thd orai bank stocks that coul beig f gnsats coming up 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. Minions, were going back t[ cheering ] so, youre villains now . No no. No. No. [ evil laugh ] ow yes. [ gasps ] despicable me 3. Rated pg. With the markets trading here, we have other stock to talk about, advance autoparts among the laggers in the s p with Cleveland Research<\/a> downgrading the stock to neutral from buy the firm says that pressure on the industry will likely outweigh benefits from the companys turn around effort and speaking of autos, its time now for fast take and first up today, there is a new acronym in town, sacs, taking over as the new it car. It is smaller and has a sportier look and for that, 7,000 more, bill. Imagine maybe some performance hangsments too, but wow. And utility out because ive been reading the reviews theres not enough room to carry anything in the activity, in the sacs, yeah does it have any pickup to it is it a giddy up i guess, i see these things, its like a sports car, few more inches off the ground. Its like a sporty crossover. Is what it looks like, right and if its the new it car and they are charging a whooper for it is that the musthave for you . I guess, the subaru, maybe. Yeah, i know, youve got your subaru San Francisco<\/a> once had a booming housing market, now it is one of the slowest growing markets in the United States<\/a> rising by 5 in just the last 12 months, it kind of sites slow job growth and high pricesed a the reasons for this reversal, could this transstoned other cities interesting to me about the writeup in this, San Francisco<\/a>s chief economist said we are in the middle of a slowdown. Yeah. Blue aspron making somewhat indicative of this we know the fundraising is probably 2014. So you know its been a gentle landing, but its been a slowdown nevertheless. You know, last i looked, they had not repealed the laws of physics, it does prices dont go up forever, they have to come down whats interesting about San Francisco<\/a>, you know, they have a very crowded market there. And i think its adjust function that prices have just gotten too high yeah. Traditionally among the most expensive Real Estate Market<\/a> the rents were higher than new york and i think google is now using Modular Construction<\/a> techniques to building housing. Whether this this spreads to other urban centers, i dont know i think this might be a special situation. Its been a couple years now that that area has seen a slow down finally, main wild blueberry prices have fallen to a ten year low. Yes last year growers receives 27 cents per pound versus a dollar. Thats a 75 drop. Citing competition from canada blame it on canada again. Where the blue beris works in their favor, but look, this happened to lobster some years ago. Prices just plummeted after the financial crisis when demand went down, but what they did is they had to rebrand the lobster use it in other items so that price could come back again and they could weather that storm. How do we absorb the surplus . Well, they need to find new things turkeys, they did that with turkeys years ago, you know, get it away from just being thought of as a thanksgiving meal. You know what they should say for fourth of july this year, everybody should have a crate of blueberries. There you are red, white, blue. Put it in your yogurt as i do at least if youre going buy low, sell high, now is the time to buy blueberries apparently. Apparently yes, thats your helpful hint for today from closing bell. And you can read what youd like about commodity prices. Maybe currency is the way to go. The dollar index at about 96, the british pound, the euro showing strength there markets are responding positively, up 150 and with the second round of results, less than an hour, well discuss if youre better off investing in the big banks or the smaller ones next are you unamerican . If you are a short seller, the man who runs the New York Stock Exchange<\/a> thinks you are. Well look behind toms comments coming up. baby crying fly me to the moon elegant music and let me play bell rings are you ready for 3d Airport Security<\/a> apparently its happening. Phil is here with the details, phil bill, were going to be waiting to hear what kind of announcements going to be coming out in the department of Homeland Security<\/a> over the next couple of hours about whats reported to be enhanced airport screening that they are going to be pushing not only here in the United States<\/a>, but also reportedly up to 280 airports around the world, now, these airports cannot immediately put in a 3d carry on bag screener, but remember, just a couple of weeks ago, we were up at rnd facility and manufacturing facility just outside of boston, and we saw this technology firsthand yesterday American Airlines<\/a> announced that it is buying eight of these machines that it will be deploying at airports in the United States<\/a>, investing up to 6 million, and what were seeing is really the transition into more enhanced passenger screening that many people say, well, look, when are we going to get passed the current level of xray screeners that we have right now thats the next generation again, there are enhanced security procedures that were expecting to hear from the department of Homeland Security<\/a> within the next couple of hours. Really guys, this is the beginning what have youre going to start so see more specialized screening when you talk about people and their carryon bags at airports. So bill, is this going to make the checkin sort of the security process go more quickly or not in theory, it should. These machines are designed to move more bags through the system much faster, about twice as fast as the current process because they can detect potential problems, explosives that could not be detected by the machines right now and in theory, theyre supposed to move through the system quicker so you should be able to move through quicker lets see if that actually happens. And while youre talking, phil, were looking at a live picture here of homeland secretary security secretary john kelly confirming that the u. S. Will impose enhanced security measures on all u. S. Bound foreign flights i say, good. Well, the one that says i dont think anybodys surprised. Right. Guys, they have telegraphed this over the last several weeks that they are headed in this direction. First the laptop ban was the first indication when they targeted specific airports in the middle east, but, they have made it very clear that what theyre seeing through intelligence about the potential for terrorists to use laptops in coordination to potentially detonate a bomb, that worries them and thats why youre looking at the enhanced security. So it looks like it would apply, this is, you know, sort of to recap as this news comes in, applies not just to carryones, but also to checked baggage, phil, but it would be for airlines who havent met enhanced security procedures presumably there are airlines or airports that of that and now reintroduce these items. Right whats important is we have yet to hear specific details, now some of that, they dont want to the release because they consider that intelligence that they dont want to share wofbl terrorists on the other hand, you would think that the airlines at some point, if its going to mean changes in what we pack or how we pack or how we go through the airports, they will convey that to us. We should point out, this is not an expansion of the laptop ban that is still just for those airports that have already been designated in the middle east. Joining us now is marty from who likes the big banks and chris from fig partners who prefers those regional ones, welcome to you both, marty, weve seen quite a nice move here in the big financials of late, you think theyve gotten more room to run well, beginning of this year, the banks were inflated on deregulation and tax reform. As that kind of played out and the frustration built out the fundamentals that the big banks are going to show midyear. Weve given up the excess outperformance, the banks are way behind this year we think the valuation point is good to be able to get the capital acceleration, were going to get this afternoon, and double digit Earnings Growth<\/a> which you see in the Second Quarter<\/a>. Chris, youre here to make the case for the regionals, and i see on your list, you have bb t and fifth third, both highly inquisitive, is that one of the reasons you like them . Actually no, bill, i like the regional stay because theres a real Pricing Power<\/a> the banks are very much lagging on deposit costs, so as the fed has tightened several times the past few quarters, deposit costs have barely moved. I think thats very powerful for the banks, particularly the regionals who have market shares around the country and thats going to help their margins and earnings in both Second Quarter<\/a> and the second half of the year chris, how do you think that would impact the big banks it should help the big banks too. Sorry, go ahead, chris. We think its helpful for banks of all sizes i think your largest banks have the biggest Pricing Power<\/a>, i think the large and regionals were both benefitted marty, what are you expecting from the stress test results this afternoon i mean, are we going to have any surprises, negative surprises, do you think, in terms of how much capital is allowed to release . I dont think were going to see any negative surprises this afternoon. If anything, theres a lot of expectation. I think we could even surpass whats out in the marketplace. We think that the last couple years weve seen Dividend Growth<\/a> and 11 to 12 , we could see it as high as 18 to 20 this afternoon. We could see as much as a 30 to 40 increase in share repurchased authorization. This is the first time that weve actually seen deregulation come to play, which is the banks below 250 billion, dont have the path to qualitative test anymore. So that pressure taken off gives them a lot of flexibility to ask for more capital deployment. We think like banks of america or wells fargo and the bigger banks will be Nice Investments<\/a> especially in wells fargo can show the First Step Towards<\/a> healing past the issues with the path this afternoon. And, chris, for you, i mean, we mentioned two of the them, bbmt and you also like sun trust. Is that it or do you do you just like the concept of regional banks over the big banks in general i think theres opportunity for the regionals to trade higher for many, certainly regions financial also fits the bill you can move further down as huntington was mentioned by marty and certainly look at pnc and key. I think the Business Prospects<\/a> for Second Quarter<\/a> are very strong lone growth seasonally is better, i mentioned margin, i think the expense side should be constrained. We like the fact that credit costs are minimal right now. There arent issues in the industry which is good for chargeoffs. All right marty, chris, thank you both well see how those stress test results come out in about 40 minutes here meantime, breaking news on staples, we have details hi, i want to point your attention to the screen shares of staples up now as much as 7 on the report from dow jones, quoting sources that private equity firms Sycamore Partners<\/a> is near a deal to buy the supplier for more than 10 a share. That would value staples at more than 6. 5 billion. According to to the report, the deal was staples could be announced as soon as wednesday again, looking at share was staples popping on this report, now, just about 6. 3 guys, back to you. I guess dow jones saying it could give more than 10,000 a share. They blocked the emergencier between staples and office depot. They were talking so its going to happen here they got a price yeah. All right. Still, i just the other thing i know, they were talking about maybe changing the Business Model<\/a> for staples away from director to consumer and the businesses the business market. Which was the argument for blocking in the first place when it seems quite obvious in the age of amazon being the biggest player in the room apparently they have quite some control over it. Looking at the stock price right now. I think the markets buying this, if its 10 or above, theyre keeping below it right now as you can imagine. 8 gain seven minutes to go. Dows up around 150. S ps up 22, nasdaqs up 90. When we come back, well go live to the nasdaq to see which stocks are moving there and weve got the countdown to the bell coming up aerhi ft ts. Ft ts. For years, centurylink has been promising fast internet to small businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. We do business where you do business. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if there was a single site where you could find the right hotel for you at the best price . There is. Because tripadvisor now compares prices from over 200 booking sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. baby crying fly me to the moon elegant music and let me play bell rings the nasdaq outperforming the dow and the s p. Bertha up in the middle of the action, bertha yeah, were seeing a very nice bounceback for the nasdaq, the chips snapping a twoday losing streak. Today, were seeing some big gains from the likes of Cypress Semiconductor<\/a> upgraded over at barclays, also in video and reports of that, it maybe set to release a new Digital Currency<\/a> graphic card, you could read about that on cnbc. Com but for the month, chips are big losers down about 2. 5 . Look at biotech though up for the month, also on pace for their first back to back quarterly gain since 2015. Thats where weve seen a big rotation this month. Also speaking of health care, we want to watch walgreens, its up today, ahead of its earnings tomorrow, the big news that people will be watching for on that Conference Call<\/a> is news about the ftc regulatory watch on the deal. Expected to announce whether that deal can go forward or not by july 7th. You can see rite aid is up on the news, anticipation that maybe well get good news, fred also is going to be buying 1200 of those Rite Aid Stores<\/a> today up as well back to you. All right bertha, thank you very much. Two and a half minutes left as we head to i dont know where i got this, i guess i got it from the blue apron thing. Dow is up 144. Lets review again we go back to the european debt market, the yields there, and ill show you a three day chart here of the german market. It was, you know, flat on monday, tuesday took off yesterday, after mario made those comments that everybody thought, okay, theyre going to start tapering and we had a temper tantrum i call it that Rick Santelli<\/a> quibbles with me on that. And today they walked it back, and said no, weve got low rates for the foreseeable future, but look at the response there, not much theyre holding at those higher levels for a lot of the european treasuries look at our market same time frame, three days, we had a bit of a response yesterday not nearly the same magnitude and its holding those higher levels as well. Pretty good rally for equities in the United States<\/a> today after all of that, european regulators are talking about easier money policy, same thing is going to happen here, i guess, and theres the s p up smart amount on the day that should be the dow i dont know how look at how weird is that, bob it says s p 500 there we go thats better. Broad rally across wall street today the russell 2,000 nearly at a record close here at 1424. 92 its just a point shy from its alltime closing high. Everybody else is off the levels, but still a nice comeback after yesterdays declines, twothirds of a percent are up 21. 453. The nasdaq up nearly 1. 5 today to 6234. Weakness in the dollar today, ill have more on that and crude oil. Blue apron its ipo price tonight. Well get that number any moment from now later, the biggest banks get graded by the fed to see if they have enough capital to survive an economic shock and to see if they could pay out more. Well get the results and potentially a flood of dimpblds and buyback announcements. Joining me today, michael san toely along with Rebecca Patterson<\/a>. Welcome to you michael, bill more buyers than sellers today. It is odd to see the strength of this on no employee. Not much, i think the message from today is and its a consistent one for a while now that the market is label the tough to spook yesterday was really the third time in three months that the nasdaq had a pretty good jolt to the downside, down more than 1 . Air pocket, shake out, but then the market has had a hard time sustaining downside momentum, today was kind of a reversal of that didnt quite recoop all the nasdaq losses of yesterday, but almost so, so to me, it wasnt so much newsdriven, its just that hey, the story hasnt changed, credit markets arent spooked, we kind of absorbed the central bank speak, and there was a lot of it. Without too much trouble, and then the financials, those other areas that have lagged that are participating for the upside rebecca, were looking at the nasdaq, haubed how its lagging a bit. The names in particular, but today, you know, the comeback story. So are people repositioning for the second half or not here . There might be some of that going on, but i agree with mike and that, you know, nothings really kmanged economy isnt doing great, but its doing well enough Central Banks<\/a> are being gradual. The ecb reconfirmed that today a short term and fairly brief and limited decline in the market, you see sentiment reverse fairly quickly i think theres still a skiddish investor out there and it doesnt do anything to dent what is an ongoingly widty story which is the story behind the bull market for the most part all along where do you think the fate of the Health Care Bill<\/a> rests in all of this . The importance you described to them, michael, and the very different reactions if you want toed so say it was yesterdays market or the market in the morning that that bill was post chd had the hospitals stocks up and people since telling us, no, this would be horrible for the hospitals. Pretty hesitant to attribute yesterdays move down or todays move up, specifically to perceive progress at this particular bill. I think the market has kind of gotten off that treadmill to some degree, theyve decided not extrapolate whatever legislative maneuvering today is going to lead potentially to policy down the road i do think though it remains kind of part of the background music of this market that something might get done even if its not overhauls on health care, overhauls, comprehensively of taxes, its going to be something that at the margin, is going to be a little bit of a help. Where rebecca are you guy us focussed how important is 12 that the agendas moving along, even if Health Care Gets<\/a> put to the side, something happens on tax and maybe its not reform and maybe its just a cut. Uhhuh. I mean at this point it seems with taxes its probably going to be late this year, early next year if it happens at all. And i think the good news in a way is that market hopes have been pulled back down to earth and so, theres not a lot of selling and disappointment to be had. Multidecade lows, inflation is under control. Ed if and other Central Banks<\/a> are going to be gradual. This is a backdrop where you want to stay invested. You need to be aware of valuations, but you dont want to get out of the market the one that i would flag is the very short term gallop Economic Confidence<\/a> poll, which is really rolled over a little bit and it looks like its kind of like a lot of things, adverse after the election and giving much of that back. Thats kind of i dont know, its not one thats really a benchmark, but the wanting to keep an eye. Finger in the air what are you saying as you head into the second half of the year and after youve seen the incredible performance i think weve talked with this, health care up 15 year to date technology up something in that range, the nasdaq up 16 or 17 at this point. Its been extraordinary. Yeah, were not making any near term changes to our sector recommendations, which continue to be technology, which has been the longest held outperforming rating that we have had. Second to that in terms of duration of outperformance financial, and then health care, because i think health care is a sector that is still sort of housed in the growth indexes, but because of the uncertainty is a place where you can find some value i dont anticipate at least in the near term any changes to those recommendations. And meanwhile, rebecca, what are you saying translates into economic momentum or disappointed if matt and others cant get things done i think there sproebl more upside there weve tilted a little bit more towards europe we have a u. S. Overweight, but thats an area i think thats still worth watching. The other thing to consider is are we still in a sweet spot where central bankers from the uk, europe, the u. S. , and canada all coming out saying get ready for higher rates, were going to try to get tightening happening here it is weaker than it should be for germany i mean, it could go up 20 and itd still be a bargain for them they want to sell more bmws, what can i say to that point, it was art saying today, theyre scrambling to undo the image that tapering is at hand seems like were still on par for that list. Quick final word, you also excited about some of the opportunities there . Yeah, i think mike made a good point about the sweet spot. And i think we are still in one. When youre in a rising rate environment, but youre coming out of a deflation their period and rates are rising from a low base, thats a period of time where you get this positive correlation between Interest Rates<\/a> and stock prices, and i think we stay in that. I agree with mike, at some point we probably hit a wall where tighter Monetary Policy<\/a> becomes a negative, but i think theres a decent runway ahead of us. All right thank you all. Good to see you guys liz ann and Rebecca Patterson<\/a> here to kick things off today. Were just minutes away from the feds financial reform stress test find out if the banks pass the ski test and weather theyll start increasing them immediately following the results. But first, its a biotech bet gone wrong up next, our fast take on the eyepopping amount one republican congressman just lost after his biotech investment plunged more than 90 . And we to want hear from you you can contact us about your show, share your feelings, feedback, you can reach us on twitter, facebook, or by email, closing bell at nbcuni. Com youre watching cnbc first in business worldwide. baby crying minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons\u00ae the number 1 choices in hospitals. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual<\/a> wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you\u2122 Liberty Mutual<\/a> insurance. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Welcome back breaking news on the Martin Shkreli<\/a> trial. We are at the courthouse are details, meg reporter hey kelly, after three full days of the Martin Shkreli<\/a> jury selection, we do now have a jury for the trial. We are expecting opening arguments to start any minute now. The courtroom is full. Just trying to get in is really impossible just trying to get into the room where the trial is going to take place, there are many people trying to listen to this of course they went through hundreds of jurors to get down to the jury of 12 plus 6 alternates a lot not committing for six weeks in the summer. Still others, as we reported yesterday and the day before, coming in with opinions about Martin Shkreli<\/a> they were able to get a jury here, and we are expecting opening arguments. Well be heading back in bring you any news that coming out. Finally a jury, back to you. Meg, thank you. Meg covering all of that for us. And its time now for fast take this hour. We begin today with a share price collapse of a Pharma Company<\/a> whose biggest investor is Chris Collins<\/a> shares of inate pharma which figured into tom prices confirmation hearings, mike, are down 92 , thats a paper loss of 17 million. And there was scrutiny on collins purchase, inside purchasing theyre buying it. This is a good defense do they have moral attitude yes, basically just kind of a disclosure thing. Strange i believe mostly at this point. So, yeah, its actually kind of a fascinating one, where in this case, and he was really a backer of it. Got other investors. It wasnt like i heard something and flipping the stock i was shocked to see what a collapse that was. Next, boy, am i rooting for this one as well. Its like a 50 cab ride. Its kind of an annoying stretch, of course also very densely populated part of the world. I would use a much stronger word than annoying to describe it took me two and a half hours on the subway back from jfk the other day and that has the option unlike la guardia. Ohair does too, theres like a light rail this is the hard stuff. We love it in concept, it is it remotely near being fundable, buildable . Glon whos got the money for it . Illinois doesnt, chicago doesnt. Exactly Marissa Meyer<\/a> defending travis, calling him a friend and saying, quote, when your Company Scales<\/a> that quickly, its hard, and there are rumors she could replace him. There are rumors, i wonder if thats people connecting the dots whos an available free agent in Silicon Valley<\/a> and who needs a ceo . But, look, i think there is some empathy toward i mean, ma ris is meyer was in the early days of google, but stealing quickly. Early Stage Companies<\/a> on the other hand, i mean, were talking about memos from travis that came under scrutiny as being unappropriate. It i just wonder if theyre looking for a female ceo would be. Who knows what the reception will be there. Yeah, well see finally european cities are pulling a uturn on diesel cars and no wonder given how theyve polluted the air and the automakers like volkswagen told about that heres what i just cant help but thinking about this, what if they had gone with petrol all along . Obviously not as ghood terms of mileage, which has been one of the big attractions of diesel, but yeah, in terms of pollution, maybe would have ended up better. I dont know on a net basis, but really it just shows you how hard to clean diesel problem was that everybody had to cheat. Why did it have to be diesel . I was in london, and i was there for five years before. It was horrendous. Meanwhile in new york city, youve got the clean buses theres not a sense it didnt have to be that way. It was economize and basically because you got better mileage because the taxes make fuel so expensive. I know, and you know, again, this is going to be a really hard thing for them to undo. And its really tragic its tough. Thats all i have to say about that Financial Sector<\/a> has been underperforming since President Trump<\/a> took office. Could the latest stress test results which are due out help turn things around thats ahead yesterday we told you about Legendary Music<\/a> producer kwinsy jones lending his name to an etf. Up next, whether thats a sign that market could be reaching a ekst wh us rays always been diffe. 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. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com will welcome back, markets have had a nice run this year, look at that, good figures for the full year. S p up nine, nasdaq up nearly 16 and according to to the Federal Reserve<\/a>, etfs a better driver of that Exchange Traded<\/a> funds spent 98 billion buying stocks. Owning nearly 6 of the u. S. Stock market, thats the highest level on record with us, here to discuss his new etf, youre part of the problem though, its not a problem, charles vooertman, this is great to see you good to be here back in new york from hawaii i didnt realize tie and everything. Tie and everything no hawaiian shirt, you know, no legs. I say that for where its appropriate. Where its appropriate. This is only the second etf you have launched . Yes and so so your focus is pretty specific, i mean, its funny because we talk about etfs, largely, truly passive or just getting market exposure or kind of gimmicky, branding really, i consider hedge fund in etf clothing. We basically have 100 Companies Growing<\/a> Free Cash Flow<\/a>, using a portion of that Free Cash Flow<\/a> to reduce the share count. We dont look at buybacks per se, we look at shares outstanding at the end of the quarter, and we also dont Want Companies<\/a> that are borrowing so theres been stories that bye backs are underperforming, but if you separate were living proof that buybacks based on Free Cash Flow<\/a> outperform. Reduces by 4 to go up by more than that the remaining shares because companies that are growing cash and using a portion to reduce the share count, you know, do well. Is the buyback thing as much in fashion overseas as finding these companies doing this theyre doing more so its buyback os cur when top management has a bigger stake in the action so, its like if your companys doing well and youre generating cash and you own a piece of the company through options or whatever, reduce the share count, you own more. So, Companies Like<\/a> in europe or whatever that didnt emphasize management owning shares, didnt do much buybacks, but thats changing and so there are many buybacks and were finding a nice number of companies to choose from. One aspect i havent heard you mention that i think is the way Warren Buffett<\/a> framed it, he said i dont have a problem with buybacks, but they need to focus on price in other words, these buybacks should be done when the share surprise trading low, undervalued, and not just because they can well, if you could tell me when its low and when its high, i will gladly buy low and sell high at any time. Unfortunately, weve discovered that companies that basically use the metric Free Cash Flow<\/a> as the source of their buybacks, if theyre growing crash and theyre using a portion of it, the timing is usually all based good to so to speak. As long as they keep growing the cash and is Free Cash Flow<\/a> enough of an agreed upon metric across all companies in terms what have it really its the cash simply, the design purpose of business, believe it or not is end to up with more cash to get started. Unless of course youre elon musk, but hes not yeah, higher stock price for something, netflix or something is more important than Free Cash Flow<\/a> anyway, the Free Cash Flow<\/a> growth is the its the amount of cash, more cash at the end of the quarter than the start of the quarter. Means the company had Free Cash Flow<\/a> its that simple. Let me ask you something, kwinsy jones now branded on etf yes and i imagine this is more the beginning than the end as people realize, i could have an etf with my name on it too does that worry you as an investor we have seven years of a bull market, and investors are convinced that etfs can never go down they will outperform mutual funds and hedge funds. Everything is great. Unfortunately, theres no managed money, what happens when there are outflows for index etfs, whos the buyer . Were not going to have a financial crisis in our lifetime. Exactly and mario, god bless him, he throws a little runs something up the flag pole and takes it down pretty quick when he sees the reaction of the global oh, youre not going to keep printing money forever charles, great to see you thank you so much. We love hearing your point of view thank you so much. Thank you the feds Financial Stress<\/a> test results are due out in minutes. Well bring you the full results right after this break the president of the New York Stock Exchange<\/a> making eye opening communities. Thats still to come on the closing bell hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual<\/a> wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you\u2122 Liberty Mutual<\/a> insurance. Dow up 144, nasdaq up 187, russell up 187 as well but these gains pretty impressive here, about 1. 5 for the nasdaq today time now far cnbc news update with sue herrara, sue. Hi kelly, heres whats happening at this hour everyone, the Senate Intelligence<\/a> committee back at work, focussing on russias efforts to interfere in u. S. And european elections. Former undersecretary of state, Nicholas Burns<\/a> describing President Trump<\/a>s actions has irresponsible. I find is dismaying and objectionalable that President Trump<\/a> continues to deny the undeniable fact that russia launched a major cyber attack against the United States<\/a> regardless of what party he launched it against. Hes done the same thing in europe abc says it has reached a settlement with a south dakota meat producer that filed a 1 billion lawsuit against the network. The suits stem from reports abc did back in 2012, alleging the companys beef products contained pink slime the defamation trial started earlier this month no terms released. Looking for cheap gas . The lowest in the country, at 1. 49 a gallon this morning. Thats it, youre up to date, kelly, back to you that is shocking. Thank you. Lets get to straight to kayla toush in washington, kayla. Hey kelly, for the first time, the Federal Reserve<\/a> has not rejected any capital plans submitted by the 34 banks getting stress tested. The fair did find Risk Management<\/a> issues at capital one. It is now required to submit an updated plan within six months or risk its Dividend Payments<\/a> and buybacks getting frozen. The companys levels exceeded feds thresholds, but it did once already adjust share hoerld returns before the stress test results were out last thursday American Express<\/a> did the same. One was bronco the threshold the rapid growth in credit card balances and uptick in delinquencies and stress test that included more severe losses for credit cards played a role in this years assessment. Am medical examiner cleared the bar by a thin margin, but senior fed Officials Say<\/a> unlike years past, getting close to the threshold wont be met with a penalty. Banks are capitalized and have requested to substantially increase payouts those senior fed Officials Say<\/a> banks will be paying close to 100 of their net earnings, kelly, another first since the financial crisis and one that investors in these doc stocks have been waiting for. Thank you joinings now break it down some more is tom brown here with us at post nine from smooet capital management. Tom, what do you think what happens now i think what happens is the shareholder, we get some money back the form of share repurchases, and you know, the industrys really gone from being where the regulators were concerned about being undercapitalized to now at the point where theyre just well overcapitalized, its crazy. Bill, who are you looking at in particular here yeah, im just watching for that its its a company that has just been so out of favor for so long, if you could normalize the ratio from say three years from now and see sizable dimpbd increases, itll be fun to sit there in place like we like to do that comes up quite a bit, michael. As citi does as well. My question would be, were these results so well telegraphed that theres going that we essentially priced a lot of this in were talking about returning an a. Capital that they have in excess right now, but then, who knows after how many years if its just going to be whatever their payout ratio out of earnings is, has the market adjusted for all of this a lot of good news built in so the consensus expectation was that bank of america would raise its dimpbd by 50, 50 thats a pretty high expectation. And the reason why its important to mention that is because were going to find out they should start dribbling out soon i think something important to consider is this might have been the most hated industry sector of my career. Im 37 years in the business and think about it, first they had all of their selfinduced wounds, then you had a serious of politicians and regulators running around and closed barn doors after the animals were out, and then you have to remember and this idea that somehow dodd frank or skrut nis regulators or powerful politicians can eliminate the Business Cycles<\/a> is. Jamie diamond will defend this and say yeah, we stress test ourselves all the time. So you know, maybe weve gone too far, maybe we havent. I mean, sheilabearer was concerned about it some of the leverage ratios and, you know, where those might be left after all of this. Well, think about this. The Federal Reserve<\/a> Household Debt<\/a> Service Ratio<\/a> is bumping along a five year low for 37 years. So, we dont have any idea what these banks could make if we actually did print 3 gdp growth for a year or if millennials buy houses and buy couches and televisions and they use their American Express<\/a> card or their bank of america visa or whatever so, its very exciting and since the torture lasted eight years its unlikely its all going to be washed up in a couple of years. Kayla, do you see anything coming out as of yet, now we wait for each individual bank to tell us exactly what the plans are. Kelly usually comes out fast and furious, and we are man monitoring, i have one eye on the screen and one on the television, but one notable difference between this years stress test and years past that ive covered is when fed officials have been talking about the fact that banks are now asking for significant increases for their level of payout and theyre going to pay out close to 100 of earnings, that is not something that has generally been either remarked upon in these Conference Call<\/a>s or its clear if you step back to 30,000 foot level, and that is an administration and a Federal Reserve<\/a> that is looking friendly upon shareholder returns right now. And were showing Morgan Stanley<\/a> there, its moving a little bit higher perhaps we have more. Banks are responding to these favorable stress tests lets just start with Morgan Stanley<\/a>,le to raise by 25 to 25 cents, the company also announcing a 5 billion buyback. Take a look at wells fargo, also in focus to raise its dimpbd by 3 to 39 cents, wells fargo announcing 11. 5 billion buyback and to your point, state street, another stock and focus here to raise its dimpbd by 11 to 42 cents. State street also announcing a 11. 4 billion buyback. Were just going through all the reaction here, kelly, for now, back to you. Thank you im happy with that problem i hope his ownership continues to rise and rise what do you make of state street that one doesnt get talked about quite as much. 11 dimpbd hike. Great company, great position, along with Northern Trust<\/a> and bank of new york really dominate the Custody Business<\/a> worldwide and theyve been held by from their capital release, and so i think its a little bit of a catchup. Theyve also been really great stocks lately. So you had state street, Northern Trust<\/a>, new york as well to some degree making highs recently i think its basically a Capital Markets<\/a> play, theyre not pure banks traditionally. Kayla, you know, her point is well taken i mean, this is more than just okay, the reason theyre doing the buyback, theyre being told in effect see back in lets use the prior eras, it was totally common for banks to pay 50 of the profits out in dimpbds. You dont need a new branch every year, theres not a lot of dmal has to be reinvested, in fact, a lot of these folks are reducing their footprint and using technology to interact with their new customers and so therefore, cost structures going down, so, what do they need this capital for . Its just bloegt the system. And you know well definitely circle back to that. In fact American Express<\/a>, one of the names it was looking a little bit weaker as mentioned, they cleared by a thinner margin, lets get back to this capital returns clearly a big trend here American Express<\/a> to raise its dimpbd by 9 to 35 cents a share, also announcing a 4. 4 billion buyback. You can see the stock is responding favorably to this news up just about here after hours. Also look at fifth third, by 14 . Regions financial by raising its dimpbd by 29 so the results just trickling in here, kelly. What is your message about whether thats appropriate or not . My message, this stress test is crazy we come up with this draconian economic assumptions, we are arbitrarily have a 5 floor, they also pass citi pass wad 10. 7 capital ratio compared to the 5 floor they have to pay back more than 00 of theirearnings but explain that for a second. Just to run down the excess capitol. And thats appropriate . Theres no reason why they should hold on to a higher amount than, you know, than what is in these tests. No because the environment 5 , at 10. 7, hold on, how much do we need citi is a separate case, they generate regulatory capital. Because of their deferred tax asset. I hope when we find the results for citi, that theyve paid out 120 of the expected earn pgs. Kelly, a way to think about it might be, think about all the money that gets released if they cut the tax on repay treuating money from outside the country, this is, this is money thats being repay treuated from inside the country. But is it going to be thats a great way to put it one time effect, in other words, is this the banks playing catch up or catch down or should we expect for a year after year now that the payout ratios are that high from the depressed levels of earnings of last four or five years to more normalized earnings and again, you know from talking to us in the past, we believe that the ageing and the millennials is going to be very positive for the Financial Institutions<\/a> because theyll just do a the love things at age 35 that they didnt do at age 28 you get velocity of money picking up, and they get teeny nicks out of almost everything that happens and there is your leverage on top of that. Is there any concern about all of this good news and people getting excited about the stocks at the moment we are in the credit cycle not that its going to fall apart quickly and the stress test has stringent assumptions about what they can withstand, but on the consumer and corporate side, doesnt get any better than this in terms of credit losses. Well, mike, the Household Debt<\/a> service rash joe bumping along 37 year lows for years let me point out that citigroups looks like a large buyback. Yeah, impressive move to double its dimpbds. A raise by 100 to 32 cents a share. Citigroup also announcing a 15. 6 billion buyback. So a clear indication in how theyre responding to this favorable stress test. The second round of it, were looking at shares of citigroup kelly up about 1. 2 , back to you. Kayla, what do you think . Is it party time well, people thought it was party time, kelly, last year when citigroup had 18. 6 billion buyback, clearly these banks are all stockpiling, they feel that they can give this money back to shareholders and citigroup was a bank was remembering itself in the Federal Reserve<\/a>s cross hairs and one of those banks that they found objections with the plan and they had to keep someone from retiring to actually manage that process it illustrates how far a lot of these companies have come. I want to revisit American Express<\/a> too because the stock you saw, it got a big boost on the back of that 9 increase to its dimpbd, but, the assumption is that American Express<\/a> wanted to do more it had to adjust its plan in order to meet the feds threshold, so the fact that the stock is up about 1 , does make you wonder, how much more did the company want to be able to give back to shareholders, but had to basically tampa down those exemptions in order to clear the bar here and kayla, thank you, maybe we can put up a board here to show the price action of citigroup, Morgan Stanley<\/a>, American Express<\/a> and a couple others according to rich peterson, its the second biggest since 2006, tom. So youre saying maybe this is more of the beginning of what could be coming from these banks here for investors i think its going to be several years because were now going to start to bring down the capital ratios that were brought well above the next three years is a catchup. The new citigroup is 2 pkd yielder at todays closing price. Thatll kind of go down initially as the stock goes up, then up as theyre able to raise. 2 , its not much to sneeze at compared with a zero competition for overpriced stables. Wait, explain that a little bit. Staple stocks yeah. Not staple the the company no, theyll be 24 times earnings to get a 3 dimpbds out of a Staple Company<\/a> thats not growing. These banks are going to grow. Its inevitable. Even if we stay at 2 Economic Growth<\/a>, you know, off and on for the next ten years, these businesses are going to have they got a lot bigger. They got bigger. Tom he owns citigroup, i dont. I own American Express<\/a>, i dont know if he does, and so you heard American Express<\/a>, you know, they had all the advertisements for the nba finals and all the games and theyre reasserting themselves as the 5 charge guys, youve got o to love it and of course they want to pay more dimpbds everybody else charges 2. 5, they should get to pay me twice as much we have bank of new york looets look at bank of new york the Bank Following<\/a> suit rising its dimpbd by 26 tls also expected to increase its excuse me, 2. 6 billion buyback also being announced by the bank as well, shares are unchanged, switching focus to bbnt, the company raising its dimpbd by 10 to 33 cents a share and also announcing a 1. 88 billion buyback. And if we have a second, look at key corpse also announcing it plans to raise dimpbds by 5 thank you the share price reaction is muted. You know, were talking about 1 increases for and i think citis case maybe the biggest ever a lot was priced in, correct, tom . Right and im happy based on the action today that before the announcements were made that the stocks are actually up any on the on the actual news. And in the case, we havent heard from jpmorgan yet, and wells fargo, American Express<\/a>, this is the highest that American Express<\/a> stock has been since they divorced costco which of course is a mortal sin. You know to. Im impressed you stuck with them. We started buying when they fell into the 70s because of the divorce, and were close to cost toe, so, i mean, it was bad, but it wasnt the end of the world. Theyve only been in business since 1855 yeah, they used to deliver mail, i think among other things tom, quickly, when people wake up and read the headlines tomorrow and say wait a minute we remember the financial crisis well, why should it be okay for banks to pay out more than they are earning. Why okay for only 5 capital levels instead of 10 k37. Because their capital is 2. 5 times what it was when we started the crisis so we have done a better job of Risk Management<\/a>, and weve significantly built up the capital basis. Thats right. You got that . Oh yes, and Elizabeth Warren<\/a> still a senator. One final piece, and i wonder if its going to come around are we going to see a round of true mna come around, tom, or is that done . The four large banks are done right and then, the banks between number five and number 25, what they really have found is we can grow our Customer Base<\/a> without paying twice book for somebody elses Customer Base<\/a> yeah. And so i dont think youre going to see among the top 25 banks, i dont think theyre going to be a big part of the growth strategy. The mote got bigger the mote got bigger, and thats what everybody forgets, when bad things happen to an industry you kind have to ask, did the mote get bigger . And these companies, the mote got bigger and by the way, bank of america was up 2 , it hasnt given us the details yet were going to take a quick break here try to get more on the stress test results when we do come right back by the way, the tom farley called short sellers yesterday there was a little context around that statement. Well also bring that to you next and still ahead, forget about regular Driverless Cars<\/a> gm has new super Cruise Control<\/a> what makes it so super, coming up baby crying fly me to the moon elegant music and let me play bell rings i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. The banks are releasing their response and it includes a lot of dividend hikes and big buy backs. We have more breaking new with kayla. We are getting a release from capital one that the fed found issues with on Risk Management<\/a> and what they called one of the most material businesses they have to recommit and capital one appears to be more conservative with what it is asking the fed for it will maintain the 40 cent per quarter dividend and go forward with a 1. 85 million buy back program between now and the of 2018 this time last year the bank requested and was approved for a 2. 5 billion buy back program. The bank tempered expectations in terms of the way this years process and stress test process went it will recommit the claim by the end of the year and no other comment in the press release to alleviate the concerns and it is as you can see be more conservative and the stock is down a little bit more than 1 you mentioned these were tougher on the Card Companies<\/a> . Senior officials said not only did that play a role in the stress test scenarios, but have seen record balances, over a trillion dollars and delinquencies going up slightly and credit Card Companies<\/a> report that when they come out with earnings it does appear that the fed is taking a closer eye on these companies specifically we still dont know what that material business at the fed alludes to and perhaps we will get more detail from the Company Going<\/a> forward. Shares down about 1 . Sun trust announcing they are going to raise the dividend about 40 cents a share a 1. 32 billion buy back will rogers is saying consistent execution combined with the Strong Capital<\/a> position enabled us to increase the return of the capital. Lets take a look at p and c financial saying they are going to raise the dividend to 75 cents a share and a 2. 7 billion buy back switching focus to key corp, i top the recap and take a look. The stock was responding favorably to their announcement. Dividend hike to 11 cents a share and 800 million buy back. Lastly lets take a look and end with cit group 16 cents a share and a 225 million buy back back to you. Thank you i will mention i was just crossing the screen and a huge buy back from jpmorgan 19. 5 million. 320 billion market cap company. Obviously it can have that capacity for a big buy back. With the dividend increase, it will bring it up to a 2. 5 yield. The banks are trying to get their dividends up to a point where they have a premium yield. As the guys mentioned its positive that is fully expected. The shares of about 45 probably under two that puts them a little bit higher citigroup raised by 100 as we mentioned, the bac shares are moving up before this was out and they are building on that a little bit. Obviously i think the messages are going to be as fully aggressive as they are permitted to be when it comes to returning capital. That was largely expect and once you get the confirmation because there is some play in the decisions to how much to pay out and buy back the question that goes unanswered is whether they can put that in a leadership position it will be a lot more about the macro and the yield behavior at this point. 2 Economic Growth<\/a> is good enough, but not what will propel the guys i have been fighting the idea that this was an orphaned group of stocks for many years they are trailing on the fiveyear basis. Im on board with the fact that theyll participate assuming the yields behave. These results are coming across and you have the shares in the 1 to 2 range. Still ahead of where we might have been. Anything that stands out to you than as we mentioned, capital one, American Express<\/a>, a little more severe that they were testing does that spell opportunity yeah. I think its a reminder that that is the front edge of how the credit situation starts to get ragged its not so much a crisis, but it is on revolving losses and the reserves they have to take capital one might be an auto not American Express<\/a> they are on the leading edge of where that will take us when its not so great. Farley had controversial comments we will give you the whole story after this baby crying minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons\u00ae the number 1 choices in hospitals. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual<\/a> wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you\u2122 Liberty Mutual<\/a> insurance. Welcome back. New York Stock Exchange<\/a> president tom farley testified and had this to say about short selling. I have an emotional reaction. It almost feels icky and unamerican you are betting against a company. The datadriven reality as you get into the numbers allowing short selling in the economy is good for Capital Formation<\/a> the real issue that our companies have lets have a little more transparent. If you see the headlines where they call it icky, they are not fair he was setting it up to make a point about it he said thats his emotional reaction there is a reflection that said what are the guys up to . Clearly the sellers are significant flyers we are at the point where we know enough about it and understand enough now that its okay for there to be disclosure. It still presents some kind of danger there is a question as to whether it is fully justified. Its about how they get treated by companies the trading revenues are the best ever. A busy hour that does it for closing bell. Fast money begins right now. Fast money starts now our traders on the desk President Trump<\/a> lashing out at amazon today we will tell you what he said that has tech investors so worried. Blue apron is pricing their Public Offering<\/a> after cutting the price range earlier today. What it could mean for the debut tomorrow we start off with th","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800408.us.archive.org\/8\/items\/CNBC_20170628_190000_Closing_Bell\/CNBC_20170628_190000_Closing_Bell.thumbs\/CNBC_20170628_190000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240628T12:35:10+00:00"}