Why this particular one stock, a big namer is the best for every, and he means every portfolio. Its not a trade, but a buy and holder. With the dow having the worst day since april 17th, we will start with the market it is. Lets bring in the director of oneal securities and ubs. Kenny, dont you feel like this is a familiar refrain back to good news and the economy and bad news for the market. I do, but what investors and people should be noticing is this is not there is no panic here. They are testing. Its very important. We will test it jen and based on the macro data. Better than expected. It reignites the rate conversation and therefore it causes a trader type. They dont have that explosion in volume. And therefore i think its an opportunity. That are is nothing to get too worried about. There a lot of uneasy headlines in the news. Even england may be talking about exiting the eu. Whats happening in europe does matter. Its also why in one way the dollar is up today. Is this something we need to be paying attention to . You always need to Pay Attention to it, but germany would work hard to keep greece in the fold. I think what they have to be careful about is making a deal that is too favorable. That ignites the measures in spain and italy and be very, very careful about that. Would you jump in on that thought. How worried are we about whats going on in europe . This is like the movie cereals where at the end of every episode the train is about to crash or something is about to happen. I would like to switch it around. And thats why you see yields down and stocks down too. And oil is down. Many of these things come together to say the economy is slowing. I think what they saw with the durable goods nontransport is yes, it was up more than expected. The last two months were so weak, i believe we were under where we were in january. Things are not going along here. A good point and you ask the question, can the economy with stand the higher rates. Before we let you go, i need to bring up the dow transports. We did talk about the theory last week. Lets continue that. The dow transports is down 10 . The all time high in november. Correction territory. Absolutely. The dow is like we talk about that theory. This pending correction in the Broader Market will start to happen. You have to be careful how you define that. Thank you, guys. We will speak to you soon. New alert in the bond mark. Twoyear notes. Whats the demand like . Rick . I graded the demand a c plus at the top of one. Remember, twoyear notes and threeyear notes might be trickier with the fed in play. Anyway, 26 billion yielded auction at. 648. The one issue market looked like it was trading around 64 1 2. 3. 40 is the bid to cover close to the 10auction average as was the indirected. Over 42 . They were better at 72. 2 and take a little over 40 . Probably give us a better indicator of where the investors are, but and bring on the 35 billion five years. Back to you. And the two year, they are a c plus. Lets go to dominic for a market flash. Gold prices are down as the dollar rally continues. Miners as well. Also angle gold and they are all down around 2. 5 to 3 . Goldminers are focusing on the heels of lower gold prices and the stronger dollar. Thank you very much. The vice chairman of the Federal Reserve sending a message to the markets. Here to interpret it for us, he wants to make sure 7 cool and chill and preparing them. Did i tell you that Interest Rates were going to rise . Thats what hes doing. Part of a road show that is out there. Talking in israel about emerging markets. Them getting ready and warning up. We have a tape before. Heres three points he made. Is that should be no surprise. Expect spill overs when the fed tightens. Some emerging markets and some institutions are more prepared than others. The fed is not the global. What that means is essentially we are watching and aware of the effect. Its not our primary goal or target. We are looking at the best thing we can do that fisher said as we can keep our own house in order. Interest rates may go up. If you are surprised, you are not paying attention. Thank you very much. Steve liesman. Mandy, over to you. Two pieces of data out on the housing and they both say the same thing. Live in washington, give us more detail, diana. Up 5 year over year according to s and kmrks is a threemonth running average. We know the games accelerated in april. Heres your perspective. Home prices are about 16 off the peaks of the housing boom. Lets go to sales of newly built homes. To 517,000 annualized units. Up 26 from a year ago and the 30year historical average is 780,000 units and the peak was 1. 4 million. Also new home prices are up over 8 from a year ago. Thats rough. Again, if you heard about those rising Interest Rates. I have heard something about that. Anyway. Appreciate it. Charter communications buying the rival. He spoke with the ceo about the deal. David. We first reported on charters in acquiring timewarner cable. They continued attempts and came up empty because it wasnt willing to offer a price that timewarner cable wanted. That company said we will sell for 160 roughly in comcast stock. That deal 14 months later fell apart after objections and guess what, charter got another chance. This time the company didnt waste a lot of time and it didnt quibble over money. Paying 195 a share to acquire timewarner cable. 100 will be in cash and the remainder in charter shares. Having a good day after bouncing around a bit this morning. 153 million new shares will be issued. 23 billion in new debt will be taken on to lever at about 4. 5 times or so. They are paying a multiple to ebitda. Thats how we measure the deals, up 9. 3 times. It is an awfully large price tag and one we have rarely seen in the cable industry. We asked why he was willing to pay so much. We think that we can make the company a lot more efficient and that through time and through growth in a Network Environment that a lot of value is created. The multiple is high relatively speaking today, but so is the upside and so is the Growth Potential and the ultimate cost potential of the business. They are taking on as much as 800 million a year. Not largely through layoffs, but trying to do things in a better way. Regulatory is still an issue, perhaps not as large as it ended up being for comcast. I did ask what his expectations are and why he believes this deal will pass muster with the regulatory authorities. If you look at the public statements of the fcc, what the fcc is seeking is being developed by by this transaction and not just about doing no harm, but bringing Better Services to the country and to customers and expanding the footprint upon which they are delivered. I think the competitive environments enhanced by us doing this will be if you look at that ecosystem of who we are playing with in terms of other competitors, they are very large and it will be a Small Company compared to the large phone companies and comcast and the wireless companies. All right controls 24 million customer relationships and 19. 4 million internet lines. 17. 3 million video lines. They will certainly be a significant competitor in bro broadband in particular which is shaping the deal making we have seen going on lately. Its interesting to see what they mean for us, the consumer as well. Thank you so much for the great reporting. May is shaping up as a red hot month for auto sales. Did they spend the weekend at a car dealership . We will look at the early numbers and go to texas for a live update on the massive and deadly flooding there. Do stay with us here as we are sitting around session lows for the dow down about 220 points. Dont go. 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The company entering a partnership with the auto maker daimler to bring Wireless Charging to electric vehicles and mobile phones and cars and twitter in talks to acquire the flip board to value the news app, but more than 1 billion. The memorial day even though it said my name there, you take it. Approximate are. The memorial day holiday is typically among the five busiest welcomes of the year. Is behind the wheel for us in chicago. Whats the score, sir . For the most part it lived up to expectations. They worked with buyers in terms of Online Retail sales. In particular, monday, memorial day, yesterday was a relatively and expected to be up for the kkd to 9 compared to a year ago. Most believe that the may sales pace is going to come in at about 17. 2 to 17. 3 million vehicles. They continue to be in demand and luxury models doing well. The one brand when i ask whats selling, they said the same thing. Jeep. Part of that momentum is being driven by the newest model which is the renegade, the small suv they introduced. It has been doing well. Sales up 21. 8 . Jeep is the number six best selling brand in the u. S. You take a look at shares which is fiat and chryslers stock symbol. Its jeep and ram. Tyler, those are the two linchpins for sergio as he continues to look at options in the future. All right, phil. Thank you very much. Big storm battering texas and houston with heavy rains and flooding. He is live in houston. Charles . Texas has been hammered over the last few days with Severe Weather and flooding. First in the austin area and the blanco river. Washed away 400 homes or damaged or destroyed. Some of them washed away with people inside. People have died with texas storm this is week. Overnight rainfall and 11 inches fell in the houston area. Six fell in one hour. No city with handle anything like that. Houston was inundated and traffic was snafled today. The City Services were canceled for the day and slowly the city is getting back together as the water begins to recede here. The mayor has said that there was a fire rescue of more than 500 people including some of the people in this 18 wheeler here behind me. They were rescued in a high water boat rescue earlier today. Park are our prayers go out to those affected. The company promoted to a very important position in the company. What does it mean . We are all over the big market sell off. Lots of red in the s p 500. Its a 22point drop. Dont go away. Time upon a once, people approached problems the way same. Always start at the starting. And questions the same asking. But that only resulted in improvements small. So we step a took back and problems turned these insideupdown to approach them newly. And thats when we it saw. Garbage can create energy. Light can talk. Countries can run on jet engine technology. When you look at problems in ways different, you new solutions find. Shares of apple are more than the market, down day across the board for apple. Josh has answers from one market. He is a legendary figure. Whats he going to do now . You can thank the 48yearold designer who helped create some of the apples most iconic products including the smart phones and ablets. Apple promoted him to the newly created position to chief design officer. In that role, she will focus entirely on current design products. And new ideas. His day to day administrative responsibilities will be handed off to the long time collaborators. Ultimately he is still the man in charge of hardware and software design. The promotion means more time to focus footure initiatives including the Retail Stores and new tamp us. How should investors interpret the move . Apple surged nearly 50 in the past 12 months. And with krealtive strategies, they dont think so. The title is actually good news and they can concentrate on products they are more important than ever at apple and he possesses many of the same qualities he becomes cleave design officer on july 1st. They are moving lower and sitting at 1187, down by 16. Silver also hitting a twoweek low and if we clip over the board, copper, and flat numb. Not being good or kind to materials today. Over to you. Hi, tyler. Its the one thing to clean from the note we had. I give it a c plus. We made our low yield after auction time. We are only about four basis points. Much different from the long end. That shows you the curve movement. We are much loftier and flirting within one or two basis points. If you want to look at whats going on, we can talk about the euro breaking the 110 range to the downside. I think a month today chart with the dollar index is important. Whether it was oil or multinationals, everybody was really nervous that the weak dollar was going to do big damage. A daunting exercise by how you are trading. We are all over the sell off. The dow is off the ultimate session low and still down by 200 points as you can see there or over 1 . Give us an update from the nyc. A down day since the open. A little bit of followthrough and of course fridays close. Weakness across the board, as you take a look at the sector. How that is impacting a number of metals and materials which is one of the weaker performing sectors with energies. Oil prices are flirting with the low that they hit back in may or earlier. May 19th. We are seeing weakness as i mentioned across the board. Energy industries, telecom and materials. You can see the leaders to the downside. Talking about how the fed has given the marks enough indication that readies are going to move higher at one point. You should expect volatility. This has been ticking higher since the opening bell as well. Well over 10 as you can see. Up a hefty 17 . There concerns what you have seen is a rise in the dollar, but a pull back on the yields of the 10year pressury with the average of 2. 17. Some people would interpret the data as being the stronger for the economy or suggesting a stronger u. S. Economy. Seems like the bond market is saying well, maybe not. You are seeing the pull back in yields. Transports continue to be weak. Right now you can see the dow transportation average over 100 points. Another sign that there concerns that maybe the economy is not firing on all cylinders. The dow down less than 200 points. Thank you very much. We will have more on the market sell off after the break, including why we are falling. Also on the radar, the rising power of chinas currency. What its going to mean for the dollar and the way the world trades. More power in two. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. We monitor Network Traffic worldwide, so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. Hello, everyone. Heres your update for this hour. President obama said he has expressed his condolences over the texas flooding to greg abbott. At least six people have died. The president said he told the governor he can count on the federal government for help. Meantime, take a look at the video of the flooding in houston. Its taken by a drone. The area received about 11 more inches of rain, much in a sixhour period, flooding the road ways. Rescue teams conducted hundreds of water rescues overnight, mostly receiving stranded motorists from the vehicles. Vladimir putin expects sanctions to be lifted. They expect to expand domestically. Scary moments on a business jet that ran off the runway after landing in Baltimore Washington International airport this morning. The twinengine cessna pilot said the brakes filed. Luckily none were injured. Thats the cnbc Business News for this hour. Ty and mandy, back to you. Todays big drop, the dow is barely higher for the year. How does that compare with european markets . As you look at the market overall, the big 200 point drop, the broader s p 500 with the index of stocks is up about 2 year to date. They are just off of the record high levels. It has been an under performer if you look at the rest of the world. Go across the atlantic to whats happening in europe. One index out in the uk, thats up again a decent amount. About 6 so far overall. If you look at the way its structured, thats one of the under performers in stocks. This is where things get interesting. For instance, year to date up 19 . A lot of momentum and continental europe. We will put through one more to show you the idea of what we are talking about. This is up 19 so far. We have come off of the highs. Here in the european story. This is a twoline chart showing the performance of the i shares. This tracks stocks mostly in the europo zone. This here, the top line is an interesting one. Its up about 18 . These two indeces track the almost exact same basket the stocks. The difference in performance is the weakness in the euro. Thats into the dollars. For those watching, that will be a big deal when it comes to the Dollar Strength talk. Back over to you. Thank you very much. Lets stick with the european theme. This according to the Financial Times and the country will be unable to meet pension and wages in june andy reimburse owed without the deal. He is a cnbc contributor among other things. They described greece. The train keeps coming and coming and then she is rescued. You make the point in the u. S. That its fairly good and benign at the very least. I think greece has to explain. For those eligible, thats creating uncertainty. You have china headlines where they are exchanging har are sh words over the south china sea. The stronger dollar and they are moving up rapidly. The transports are getting worse, not better. There might be reasons to be cautious. Stanley fisher, basically tried to chill, guys. Its not exactly his way of speak. That was the thrust of it. Its funny because early earlier in the year when they sats down, they are going to raise Interest Rates sometime this year. We are data dependent and not date dependent. Janet yellin said are we Strong Enough . Maybe. The Unemployment Rate and inflation rat