Happen because the journal story last night, also about the huge i think its 7 or 6 of the market are now owned by etfs, which is great until its not. There is a growing group of folks who are thinking if were just buying stocks en masse, will any reversal like the qqq, 100 stocks effectively. But five stocksmake up 40 of the index. So thats why people say, why do you talk about these stocks all the time because their weight matters. Theyre so powerful within the index. Earlier today, i was looking at the s p 500, there were probably only 75 stocks that were positive on the day. By the way, the last down month for nasdaq was october of last year for the s p and dow. It was sooner than i thought it was actually back in march. We should appointment out, this isnt a complete selloff this is a day very much about rotation youve got correct. Selloffs in the momentum stocks, technology in particular a lot of those stocks are not returning to levels that are frightping at this point yet but people are buying the financials and Energy Stocks. Which had been laggards recently and especially with the financials, because of the backup that were seeing in yields were seeing Interest Rates rise on whats happening in europe with the selloff in the bond market there yeah. And your point about europe, i think you covered europe as much as anybody, know more about it probably than most of us ever knew, but mario draghi is a name we talk about. I know some of our viewers and listeners, their eyes glaze over, because my gosh, its bad enough talking about yellen, but now youre talking about the ecbs Janet Yellens version effectively. I know its a little wonky, European Central banking, but michelle, please, this is important. For the money here even if youre just a 401 k investor living in dallas. Youve got to Pay Attention. The next biggest central bank in the world besides the United States now starting to pivot starting to pull away. And starting to reduce the accommodation in the market. Thats why we showed the earlier, 1. 14. Do we owe closing bell two minutes of start time . Closing bell starts now you bet they do. No, thank you, guys. Welcome to the closing bell, everybody. Im kelly evans here at the New York Stock Exchange. Better late than never. Im bill griffith. Stocks are sharply lower today were off the lows today the dow was down about 257 points weve come off the lows of the major averages tech and consumer dischrisary hit the hardest in todays trading, while bank Holding Stocks are holding on to gains right now. Well talk about their stress test results, and the dividends that theyre now paying, and whats behind the selloff could there be buying opportunities right now. Well get to that in a few minutes here. Citigroup up 3 where the dow was down 200 a moment ago. The white house announcing new sanctions against chinese banks in order to pressure north korea. Well have all the details out of washington. And after the bell tonight, an exclusive interview with Morgan StanleysCeo James Gorman talking about the stress test results, good time to be talking to jim gorman next hour here on closing bell. Lets get to the selloff on this thursday, the day before the last day of the quarter in the first half of the year joining us today, david is with us, and david elison from hennessey large cap financial funds. You know its an important day when Arthur Cashen joins us. Hes at post 9 with fjs services Rick Santelli is at the cme in chicago. What do you think of we gained this much yesterday now were taking it all back what doyou think is going on here and it was suddenly the opening look slightly mixed, maybe even a little better, and then the tech stocks looked like a trapdoor opened underneath them techs began to plunge. That dragged everything down right behind them. You noted that the dow at its worst was down much more than this well, all day long, nasdaqs been down on a percentage basis twice as much as the dow is. So it shows you how badly the techs are there. People talk about a little sign of rotation in that the financials are up, and some of the Energy Stocks are up but they are up nowhere near as much as what the techs and other things are down. What do you think is going on with the techs this isnt the first day people have been selling them hard, but maybe its the hardest yet i think theres still opportunities in tech. But its got to be more in a consistent free cash grower like oracle, which last week had good earnings news. To the broader market, quickly, its been between two to three times the average number of trading days to the longterm average since weve had that proverbial 5 and 10 correction we are due that alone wont give us that hiccup but when youre looking at stocks on a cash flow basis that are now back to the valuations when we had the hiccups in 2015 and 2011, it tells you in this environment a little profit taking here is where we begin the third quarter, i think thats the wise thing to do and rebuy at better valuations in the market. David ellison, your large cap financial funds making money today clearly with this bank rally. What do you make of this is this an allclear signal . I dont want to make too much of one days gains, but do you think this is the beginning maybe of a new phase for the bank stocks here well, i think what weve had in the last two weeks now is, you know, two reports out of the fed through this regulatory cycle that tells you that theyre comfortable with the banks, comfortable with the capital, comfortable with the regulatory regime, and i think it also tells you that theyre probably going to theyre comfortable with moving rates up and moving the Balance Sheet i think thats good for the banks. Obviously the market is, you know, not as happy about the fact the economy is strong and rates are going up, which youre seeing rate sensitivity to the banks to the positive, rate sensitivity lets say for technology to the down side. So today was an example of sort of reaffirming, reminding everybody that the economys good, the fed wants to normalize, and this is another sign postalong the way saying were going to do that because we can im glad you mention that rick, thats what i was going to ask you about. I think the tenyear hit almost 10. 3 today. Its been an orderly move considering the amount of movement we had at various two and threeweek stretches throughout 2017 for treasury and sovereign rates in general, yes, it has been a pretty big week. Just consider last friday we were at 214. As we pointed out we hit 230 within a half basis point or so. We have one more trading day left on the week everything our guests are talking about, obviously, is spoton. The only question is, which channel is more influential. I will continue to say if i had to sum up whats going on, it would be in two years, rates and firecrackers i think global rates moving up, just not the u. S. , but global rates has really important significance for all equity markets. I think it gives investors a notion of the toll keeper of accommodation and maybe that arm is starting to go down and nobody wants it to hit the hood of their car. In terms of firecrackers, i think whether you look at the long weekend, art knows very well how traders behave when you get long weekends. In addition, this particular long weekend coordinating with quarter end and half year end is probably putting exaggeration into some of the moves. Arthur, i was going to ask you, which of the sirens you think the markets are distracted the most by . For a time its oil. Then its the Interest Rates then its the dollar i mean, technology now seems to be the bogey man where do you see the market facing the most right now . I think youre going to come as the other guests said, back to the rate question, because the Central Banks were your friend they were pumping money in they appear to be slowing down and coincident with that, the corporate buybacks appear to be slowing down the market may have a current thats running against it for a little bit here. So it might be a little tougher to get moving up always remember how the 5th and 4th and youll feel better about everything. I dont know about better or worse. Is this all new, arthur . I thought this was pretty well kind of teltelegraphed. And People Choose this moment to really make moves about it i thought it was intriguing, because what draghi said is deflation is no longer a threat and hastily tried to say its not a reason to end the soft grades they didnt want to hear the second sentence. They stuck closely with the if irs. He was drowned out by the gasps. European developed market purchasing Managers Index has been moving in the right direction. I think thats being noticed by the European Central bank, the same way our central bank was noticing when our pmi index was moving higher. That is the most important business number i will watch every month. There you are david, david, arthur and rick, thank you to you all. Morgan stanley ceo speaks with us exclusively in the next hour of the show just on the heels of this big move in financials, and those stress test results. You wont want to miss it. In the meantime, i check in with bob pisani. Im sticking with the general theme here of rotation going on. So we know whats been going on in the fang names and semiconductors, oracle another big tech name up 30 so far this year its been drifting down lower the last few days, down about 1 theyre going into banks and theyre going into energy. Heres keycorp, yields up in the tenyear raising the dividends in the bank stocks. Theyve been performing better throughout the week. Theyre all up today another reflation trade here is all the energy names, the worst performers on the year but theyve been moving up this week as well oil starting to stabilize around 45. Talking about the reflation trade, noting that this week oil is up about 4. 5 copper up nearly . Tenyear yield up near 5 . It means that thats helping the bank stocks and the Energy Stocks in general. Finally, i want to point out, our star of the day here, blue apron here, priced at 10, Still Holding up went as high as 11. Hit 10 a short while ago trading on the upside. Healthy volume here. 35 million shares. Youre way over what the original size, 120 of the offering size. A healthy demand for the stock not exactly the kind of market you want to come into but hey, you cant pick your spots sometimes. Thank you, bob well see you on the close. Treasury secretary Steve Mnuchin made comments about china and north korea a short time ago at the white house. Ayman javers is there with more. The treasury secretary came to the Briefing Room to announce new sanctions involving north korea. This time on a chinese bank. The bank of dangdong, also on two chinese individuals and a shipping company, all of this he said was aimed at preventing money and all sorts of goods from getting into north korea from the chinese side of the line still, though, he said this was not about punishing china specifically heres what he said. We look forward to continuing working closely with the government of china to stop illicit financing involving north korea. We are in no way targeting china with these actions we will be meeting with china and other countries at the g20 next week. To further our efforts to cut off north koreas illicit activities bill, the treasury secretary was asked twice if the United States government had given the Chinese Government a headsup that these sanctions were coming, both times he declined to answer the question he said simply, im not going to get into of our behindthescenes conversations. To me that raises the possibility that in fact the United States did give such a headsup, but with a no comment we cant say for sure right now. All of that coming before the president goes to the g20 next week where he will meet with chinese leader xi and also with Vladimir Putin with russia, which will be a highly scrutinized meeting. All those world leader meetings coming throughout the later part of next week, guys my only question is, how china might now respond, eamon. Thats a really good question and that may be why, if there was a headsup given behind the scenes, there was sort of a gentle push here on china, thats why you saw the tone coming from the treasury secretary today, we want to work with the chinese mcmaster, the National Security adviser, talking about the relationship with china. He said we dont want to push the chinese. We dont want to use pressure against the chinese. He said, we want to work with the chinese on our mutual best interests, particularly on north korea, where he said the chinese have an interest in terms of north korea in not having those missiles within striking distance of chinese territory as well really an effort here to be gentle with china, in a rhetoric surrounding the chinese bank and chinese individuals. It is the middle of the night in beijing so when they wake up, maybe well hear something else. Thanks, eamon. 45 minutes to go to the close. Dow down nearly 150 points right now. It was down more than 200 a moment ago im looking to see where we were at the lows. 257 on the dow. Wow the s p down 19 right now. The nasdaq, the nasdaq is down 101 points, 1. 6 decline, russell down 13. Up next, nba hall of Famer David Robinson who has cofounded a private equity firm is going to give us his take on the selloff. President trump expected to deliver remarks at the Energy Department in just a few minutes. Well bring that to you live the moment it begins coming up on closing bell. Yoreatincn, rsin business worldwide 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 objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. Who told you . Ave a twin brother . Its true . Ya. Your father and i each took one son to raise on our own. Obviously, i got second pick. [ upbeat music ] brother, its time to become a villain again. How awesome would that be . Okay minions, were going back to villainy. [ cheering ] my little brain is going to explode. Despicable me 3. Rated pg. Selloff day we are well off the lows of the session. The dow was down 257 points at one time today nasdaq leading the market lower, down 1. 5 right now. Yes, that means technology is headed lower the coveted fang stocks, the fab 5 have been going lower today. Weve got facebook, amazon, netflix, alphabet were missing one. I cant think of who it is right now. Theyre down 1 and 2 . Microsoft i think we include microsoft in there. Apple is not on there anyway, dominic chu joins us with a look at the sectors getting hit the hardest. If you take a look at the heat map, there is not a lot of green, but there are still slivers, two of them right now financials, a story line all day. Were actually starting to see a little bit of a rebound overall in the s p 500 just off the lows. Energy as well those two sectors, the only ones in the green, if you take a look at this here, Technology Staples and real estate, worst performing sectors Overall Technology certainly one of the worst performing sectors in terms of the overall scheme of the market today and those big mega cap stocks have a big part of that. If you take a look at sol of the sector etfs at play here, the tech sectors spider, the xlk, thats the ticker, up by 1. 5 . The Consumer Staples xlp and xlu which is utilities, these four sectors spider etfs as of about five minutes ago traded well in excess of the average Trading Volume over the last 90 days were not even over with today yet. This is where the real heat is overall in the markets to put a point on that technology narrative you guys were just weaving through there, many of these Mega Cap Technology stocks are sitting right near or even below their 50day moving average, the trend line over the past 50 days more medium term, this is the xlk. Hovering just below that trend line we could put microsoft trading below there as well, alphabet shares trading below there as well amazon, not actually a technology stock, but sitting right near its medium term trend line certainly technology and even amazon as a retail stock, ones to watch in the terms of the overall sentiment in the momentum of todays market, guys good stuff, dom thank you. Thanks, dom. The real estate sector is holding up better than most today, but still down about 1 some of the names in the sector seeing lower here. 2plus percent as you can see. Our next guest is former nba great hall of famer, started an investment firm, focused on real estate after his retirement. I think its safe to say that David Robinson is one of the most admired, if not the most admired nba player in history. He joins us now from Morgan Stanleys multicultural conference the man they call admiral as well great to have you on the show today. Thank you so much great to be able to visit with you guys today. Whats the mission of admiral capital, the firm that you have founded . What do you do there yeah, admiral capital was borne really out of the Community Things i was doing as a spur i had a nice income. My wife and my family wanted to do something in san antonio, so we started schools, private schools. Then we got involved, we transitioned to a Charter School and so now in the last five years weve been building schools. We built basically 20 new schools in san antonio over the last five years. So that was my passion so in order to support that