There it is. And you see about twothirds of the dow stocks are higher. United Health Leading the way. And trailing down there, let me see, i cant see over there. Home depot. Home depot. Lets get more on todays market action. Bob pisani on the floor of the new york stock exchange. Hello, tyler. Mixed market today, but something unusuals happened. Oil dropped and the market didnt fall apart. Take a look. We had a disappointing inventory numbers here. It wasnt as big as expected, gasoline inventories went up. Oil dropped a buck and a half in the middle of the day, but look at the s p. Really very moderate response to that. In fact, took a while for it to drop at all. You can see its come back a little bit on top of that. Energy stocks, like the xop, oil and Gas Exploration sector, did drop on that. Its just coming off the lows, but even that its not that dramatic overall. If you look at sectors here back to the slightly more defensive posture with telecom, utilities and Consumer Staples leading, industrials essentially on the flat side. Ive spent the morning talking to traders about what do they call this rally weve had, this new rally breaking out to new highs. We had fang, and stub, theyre calling it febb, meaning all driven by Central Banks. Others insisting the all Old Fashioned tina, theres no alternative to stocks. Thats been around for a while. And finally theres a number of others who insist its a lot of fomo, fear of missing out. They said if we hit new highs, oh its a lot of fluff and no fundamentals. I think i might go for that one right now. A lot of people moving around a lot of action. Bob, weve got to go. Weve got to go to theresa may, new uk Prime Minister speaking out. Asked me to form a new government, and i accepted. And David Cameron i follow in the footsteps of a great modern Prime Minister. Under davids leadership, stabilized the economy, reduced the budget deficit and helped more people into work than ever before. But davids true legacy is not about the economy but about social justice. From the introduction of samesex marriage to taking people on low wages out of income tax altogether, David Cameron has led a onenation government. And it is in that spirit that i also plan to lead. Because not Everybody Knows this, but the full title of my party is the conservative and unionist party. And that word unionist is very important to me. It means we believe in the union, the precious, precious bond between england, scotland, wales, Northern Ireland. But it means Something Else that is just as important. It means we believe in a union not just between the nations of the United Kingdom, but between all of our citizens, every one of us whoever we are and wherever were from. That means fighting against the burning injustice that if youre born poor you will die on average nine years earlier than others. If youre black, youre treated more harshly by the criminal Justice System than if youre white. If youre a White Working Class boy, youre less likely than anybody else in britain to go to university. If youre at a state school, youre less likely to reach the top professions than if youre educated privately. If youre a woman, you will earn less than a man. If you suffer from Mental Health problems, theres not enough help to hand. If youre young, working harder than ever before to own your own home. But the mission to make britain a country that works for everyone means more than fighting these injustices. If youre from an ordinary working class family, life is much harder than many people in westminster realize. You have a job, but you dont always have job security. You own a home, but you worry about paying the mortgage. You can just about manage, but you worry about the cost of living and getting your kids into a good school. If youre one of those families, if youre just managing, i want to address you directly. I know youre working around the clock. I know youre doing your best. And i know that sometimes life can be a struggle. The government i lead will be driven not by the interests of the privileged few, but by yours. We will do everything we can to give you more control over your lives. When we take the big calls, well think not of the powerful, but you. When we pass new laws, well listen not to the mighty, but to you. When it comes to taxes, well prioritize not the wealthy, but you. When it comes to opportunity, we wont entrench the advantages of the fortunate few. We will do everything we can to help anybody, whatever your background, to go as far as your talents will take you. We are living through an important moment in our countrys history. Following the referendum, we face a time of Great National change. And i know because were Great Britain, that we will rise to the challenge. As we leave the european union, we will forge a bold new, positive role for ourselves in the world. And we will make britain a country that works not for a privileged few but for every one of us. That will be the mission of the government i lead. And together we will build a better britain. Theresa may finishing her speech. She is the new Prime Minister of the United Kingdom. A breathtaking pace of events ever since the brexit vote. Using that speech to acknowledge the Economic Uncertainty and anxiety of the middle class of the United Kingdom, of the lower income class of the United Kingdom, which many pundits believe is what drove this historic and surprising decision by the british people and the people of the United Kingdom to vote to leave the european union, guys. We thought this wasnt going to happen until september when the vote went down there was going to be a whole conservative party vote, Boris Johnson was in the lead and then, poof, all up in smoke. He pulled out. Cameron said he was ready to stay on until october but might have even gone to a whole party vote. But obviously the brush got cleared away very clearly. And mr. Cameron, who resided at 10 downing until yesterday, is gone today and theresa may is there. Wilfred frost standing by at 10 downing street. Wilfred. Reporter michelle, thanks very much. Yes, theresa may just arriving here. Shes the 75th british Prime Minister, the 13th of the current queen. And as we well know the second female Prime Minister. Shes 59, 10 years older than her predecessor. And shes come in to say that the true legacy of David Camerons government was not about the economy but about social justice. And that is something she wishes to continue. She stressed very clearly that the name of the party is the conservative and unionist party. And she described the bond between england, scotland, wales and Northern Ireland as precious, precious. So important she repeated the word. And also said that that precious bond existed between all citizens wherever theyre from. She said shed do everything to help people go as far as their talent can take them, whatever their background. In relation to pulling out of the european union, he said she would forge a bold, new, positive role for the United Kingdom in the world. She was standing there as she waved to the Associated Press here with her husband philip may. Now the focus of course is on o who she will choose for her cabinet. One philip, Philip Hammond, current foreign secretary is the favorite to be the new chancellor. But we dont know that for sure yet. But she has just arrived, gone inside to both her new home and new office here at 10 downing street. An historic day here. We woke up with one Prime Minister and of course we now have a new one. Guys. Yep, next stage were waiting for the new cabinet. Wilfred, thanks so much, live from london. Lets get a news alert on the election here in the united states. John harwood is in our Nations Capital with this. Brian, a lot of americans might wish we could choose new leaders as quickly as britain does. And that very rapid elevation of theresa may. But weve got a few months until november when well find out who Barack Obamas successor is going to be. We do though have just new out now nbc the wall street journal marist polls. Talk about the state of iowa, democrats have carried recently, Hillary Clinton has a three percentage point lead over donald trump. Then you look at ohio, thats critical, no republican has ever won the white house without winning ohio. Donald trump and Hillary Clinton are tied in that state. And finally, pennsylvania, the quintessential rust belt state that donald trump hopes to win by expanding his support among blue collar white voters. That was his base in the primaries. Hillary clinton is leading donald trump in this nbc the wall street journal marist poll by nine percentage points, 45 to 36 . These polls come after a very damaging week for Hillary Clinton after fbi director comey criticized her and her team as extremely careless in handling classified information. So given all those facts, is she maybe fortunate that shes got a lead of the magnitude were showing in pennsylvania and in iowa, but donald trump is tied with her in ohio right now, guys. All right. When were these polls done . July 5th through 10th. 5th through 10th. So that was tuesday through, what, sunday . Tuesday through sunday. Exactly. It does capture the aftermath. And the shootings in dallas and baton rouge and minneapolis. Thats right. All righty. Thank you, john. We have a news alert in the bond market right now. 30year bonds up for auction. Rick santellis tracking the action at the cme. Rick, we had a couple of tepid auctions in the 3s and 10s, what happened here . Finally, a good auction. I gave this auction an aminus, an appleminus. Straight up on eastern, that was the demand. 29year 10month issuance. Yielded auction 2. 72, close to the low yield in the wi market. Of course low yield, high price, that was a big positive. If we look at 2. 48 bidtocover almost 2. 5 times subscribed best since september of 2015. 68. 5 indirects. Listen, i know they stopped and restarted issuing long bonds, but i couldnt find a higher number than 68. 5. And a little bit of a reversal down a bit, 8. 4, 23. 1 go to primary dealers. Aminus, this is what they should have been about. Is it because its the long end . Maybe, is it because stocks surge slowed a bit . Im not sure. But whatever it is they certainly did grab on to the longest part of the yield curve. Michelle, back to you. Got it, rick. Thanks so much. Well, even the markets sitting at new highs, citi out with a new note highlighting four investor concerns. Here to explain is chief u. S. Equity strategist at citi. Tobias, certainly these are concerns everybodys thinking about. The president ial election for one. I think theres a deeper more overarching concern about this particular rally and that is how much faith can you put into a rally thats really being driven by negative yields around the world and this notion that people have to be in stocks in order to make any money . The funny part is that most investors have not actually been in stocks. Mutual fund flows, Exchange Rate fund flows since 09 actually have been pretty poor when it comes to u. S. Oriented equities. When we track sentiment still pretty high. So investors actually havent been chasing the market. Which is kind of inconsistent with the market going up. But its been more about stock buybacks, more about mergers and acquisitions, hedge funds, leveraging, things like that. But they have been chasing what they think of as safety, right . Right. So what if safety isnt . Well, thats what i worry about. Theyve been buying some of these defensive sectors paying up very handily for the yeelgds they generate in almost a desperate search for income. And part of it is what was being discussed before with low bond yields, where do we get the income. And the term safety works and the term defensives work if you dont pay too much for it. Then they start becoming a little less safe and little less defensive and were concerned about that. We think investors may have taken this theme a bit too far. Tobias, you say one of the questions youre asked a lot by clients in your note here is how do you invest if trump wins. What do you tell them . So, you know, i first wave my canadian flag and say im not voting in this election, so dont blame me whoever wins. But i think the issue really is there have been some people fear desperately if you have a Trump Presidency theyll be this great pause, everybody will stop. I think its probably an overstatement. At the same token hes also talked about trying to stimulate economic growth, people think hell cut taxes, hell borrow money to stimulate through expansi expansionary government spending. Hes talking about shredding dodd frank, which would be positive for financials. Hes talked about taking away regulation, which would be positive for energy. And i think both candidates probably a bit challenged for health care. Well forget both candidates do a lot of talking, they still have this thing called congress to get through. That aside, tobias, finish this sentence for our viewers. The biggest risk to the s p 500 right now is so the biggest risk that were watching is the nfib hiring intention survey. What . National federation of independent business, which is trade association for Small Business not china. Not brexit, its not trump. Its the nfib Small Business hiring intentions index . Well, something i worry about. Im not going to predict china, brian. Im not going to predict what happens to the yuan. I dont have that capability. So i dont sit and worry about shocks because i cant predict them. I look at the survey of hiring intentions. It has seemed to roll over, very usually a good indicator for employment with a oneyear lap and does suggest unemployment could be rising at this point and time next year. That is a concern. We dont have to worry about it this minute, but if were kind of looking out as investors, not looking out as traders because im not going to pick the next trade. Im not that good. But answer me this, tobias, go back to melissas first question. You say one of the questions, the four questions you get asked, can you get ever higher p e ratios in a world of negative yields . Melissa and i talk about that all the time. We think about it all the time. I mean, in theory when yields go negative, your multiple can go to the sky, right . I mean, how much more can you get out of that multiple expansion can you get, if any . Im not banking on multiple expansion in our outlook for the markets. Could it happen, its a positive, well take it. What im focused on is that question and the reason i wrote the note and said three plus one. Four. That last question well, the reason i put that last question plus one is part of the reason for that question about the yield is can that continue to support the defensive trade. Right. Thats really what that questions about. As opposed to does it support the are you saying no . Im not willing to go there. It could happen, but if it does, we have to see lots of money flow into markets. So what people think conventional safety trades in your view right now are not safe . Theyre not as safe as they were and in some instances id be very worried. Utilities for example are trading on a price to sales basis of 25year highs. Theyre not going to generate 30 earnings growth. They just dont. Tobias, thank you. Good to see you. Thank you. Teslas cheaper model x, chrysler rewarding hackers, and nissan is getting into the race for selfdriving cars. Plus, audis big push carmaker says it has the most advanced vehicle in production. So we went on a special ride to see it for ourselves. All that coming up next on power lunch. Your Business NeedsBetter Technology to drive better performance. So you need it to be reliable and fast. Really fast. Introducing the comcast business Summer Savings event. Fast Internet Speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. Get some of our most advanced products at a great price with over 500 in savings. Call today and ask how to get these savings plus a 250 prepaid card. Comcast business. Built for business. Welcome back to power lunch. A lot of news today in the auto world. Lets get riegght to it. Phil lebeau joins us. Offering cheaper version of the model x crossover starting at 48,000, right . Yes. Following the same strategy theyre using with the model s, put a 60 kilowatt battery, lighter range in there, when they put that in the vehicle they bring down the price by about 9,000, base price, bringing down to about 74,000, thats what its going to be. And remember with that lower range thats the initial range. You can pay extra at some point theyll do an over the air software update, which would then allow them to increase the range on that battery. Again, theyve tried this or are trying it now with the model s. This is all about expanding the range of potential buyers for the model s and model x. Lets move onto talking about Fiat Chrysler talking about hiring hackers. Theyre hiring an outside firm, teaming with an outside firm to say you look for the bugs and the hacks in our system, those Cyber Security flaws that we have in our products, tell us what they are a