A springtime special power lunch begins right now. And welcome to power lunch. Sorry. Brian mentioned stocks hit record highs midday. We saw the nasdaq turn lower. Amazon, microsoft and google. The intradays are even more dramatic and a lot of volume at last check trading at the 125 of its average daily volume. Extraordinary volume for a friday afternoon. And as stocks rally the vix hitting a 24year low. Financials big movers. Among the leaders in the group bank of america, Morgan Stanley and regents financial. With us on set you saw his finger, lets show the whole person, the one and only guy adami. Josh brown was walking off set. He yelled my name, i looked over at him, im sorry. Lets first talk about the tech selloff. Start to roll over at 12 20. You pull up any intraday chart including it tesla, nvidia, amazon, apple, all of them rolled over. Nvidia sticks out to me. Its been on everybodys radar screen. At 1 00 it traded is 50 million shares. After making an alltime high the reversal is significant. So if youre looking for an opportunity to maybe get a pullback, this is the beginning of something, the reasonable levels of the 120s. Whats your fake on the overall it tech roll over . My take is this. The vix is telling you everything you need to know, again, below 10. Market said these tech names have been on fire. Xlf against 23 bucks. Now trading to 24. The riskreward sets up. Should we find solace that the tech stocks arent doing well but the market is holding up. Yes is the short answer. Im going to go back to the vix and say if there was concern i think you should see the vix north of 11 not 960 or wherever it is now. Mr. Pinterest, welcome. Lets kick things off with three stories driving conversation. The latest are from washington. More from canada where Steven Mnuchin will meet with his counterpart and the latest from london and the uk election has left the Prime Minister and her party badly bruised. Our reporters have it all covered. A full trio. John harwood in washington, ylan mui and wilfred frost. Reporter we just had the president have a highprofile event on what he hoped would be infrastructure week. It was a speech repeating had his position that we need to have an upgrade of roads, bridges, airports. What everyone is paying attention to is the controversy involving the Russian Investigation and james comeys testimony yesterday. The president tweeted this morning he thought the hearing yesterday and the Intelligence Committee was total and complete vindication of his position, and he said it identified james comey as a leaker. Now the president is going to speak in his own words at a News Conference in the next hour or so in the rose garden with the romanian president having a working visit with the romanian president who is, of course, the leader of a nato ally. The only thing anyone will be interested in is what he has to say about james comey, hes a liar who fired him to influence the russia investigation. High drama in the rose garden this afternoon. John harwood, thank you. Now live in ottawa, canada for the meeting with his counterpart. Ylan . Reporter here in ottawa on his home turf taxes and trade. Canada is speaking to clarify mnuchin position on the border adjustment tax. The two economies are deeply int intertwined. Mnuchin is meeting with ge, gm, ford, google and are there to hammer home the message that goods need to be able to travel across the border. Some uncomfortable items will come up, Climate Change and defense. Canada announced it would be increasing its spending on military by 70 over the next decade. The Canadian Foreign minister said as the u. S. Steps back from the world stage canada needs to, quote, step up and chart its own clear and solvent course. Officials tell me they are developing a partnerships. That relationship will be crucially important as they head into the g20 next month, guys, and look forward to renegotiating nafta in the fall. Back to you. Ylan, thank you very much. Now to the developing news overseas as the uks labor party is calling on british Prime Minister teresa may to resign. All following an election in which wilfred frost is here joining us. Was this a situation where may may have actually lost despite technically winning . Reporter well, Jeremy Corbin called on her to resign early this morning but that call falls on deaf ears because she has won the most seats and, therefore, has been able to return to 10 downing street as Prime Minister albeit without an outright majority. So her position now relies, in fact, on the support of her own mps. With that in mind she has apologized to her party. I wanted to achieve a larger majority but that was not the result we secured, and im sorry for all those candidates and hardworking Party Workers who werent successful but, also, particularly sorry for those colleagues who were mps and mince it terse who contributed so much to our country and who lost their seats and didnt deserve to lose their seats. And as i reflect on the results, i will reflect on what we need to do in the future to take the party forward. Reporter she has also in last few moments confirmed no major changes to her cabinet. The chancellor yet again phillip hammo hammond, home secretary is, again, amber rudd. Others confirmed in their positions. This is another sign of her very weak position now at 10 downing street. She would have been liked to have reworked a shuffle. Brexit discussions will go ahead in ten days time. Teresa may will be the one to stop them. Highly uncertain whether shell be the person to end them. Wilfred frost in it london. Well see you again. The broad market not being shaken by anything whether it is the uk election wilfred talked about or the drama in d. C. The dow is up 90 points right now and set to end another week even higher. Joining us the equity for the folio manager of J P Morgan Bank and Portfolio Manager with russell investments. Doug, ill begin with you because russell, the name is on the russell 2000, the small cap index, which had been lagging for most of the year. It looks like it got life in itself so far this week. Why, though, is nothing seeming to rattle this stock . It doesnt matter the headline. Melissa and guy are up here every day going, stocks are up. Its the right question, brian. It certainly seems like a teflon market at least. That said it is ubiquitous or universal theres no risk. We see while yields are up today theyre not at levels that would be reflective of the same optimism seen in risk asset markets. Its probably the highest geared, if you will. This is the case i would say we would recommend taking some of this as an opportunity to take some of the upside opportunity off the table to potentially protect a pullback. Its a case where we dont have full resolution. Sell stocks broadly . I think youre going to see some of your overweights off the table. Theres still a lot to happen. Yes, teresa may has had this fall but its good to be the north ireland Democratic Union party. A kingmaker role but its still to see the ef kaes she will have in leading government and i think theres going to be lingering soft boil in the United States about what still is trying to advance the trump agenda amid circling concerns tied to what weve heard this week. Jack, whats your interpretation of what youre seeing in the markets in terms of the roll over we saw midday and particularly in large cap it technology and the bid higher to financials. Is this a rotation in this market . I think what weve seen is a market which has continued the cycle between stocks, if you will, almost a return of several years ago the risk on risk off, with the risk on today being the ten year. You see some people going back and saying maybe this is a beginning of some signs of embracing companies that are more economically sensitive. Names that have had great runs year to date and are less exposed to the improvement in the economy. Jack, a quick question. The vix below 10. Currency volatility is outpacing equity. Does that mean anything and is it concerning to you . I will look at the equity where youre seeing parts of the market canceling each other out. Offsetting some of the surge that weve seen within the Technology Stocks. When you look at currencies, weve thought about them as fixed income returns and equity volatility, maybe thats a sign of some uncertainty in the world but youre certainly seeing reasons for that volatility whether thats policy shifts in the ecb, the prospect for policy shifts coming out of england, perhaps less hard brexit with a less stable government, certainly in terms of teresa may not being able to improve the quality of her hand having lost some seats and having to go into a coalition government. And we look at the u. S. The data is good. Its not as good as people are expecting if you look at the economic surprises but still the u. S. Is a growing place. All right, jack and doug, well leave it there. Thank you. Have a good weekend. All right, now your weekly recount numbers with jackie deangelis. Jackie, americans cannot stop putting oil rigs in the ground. Theyre addicted to oil. 21 weeks of additions for the week ended june 9th, today. We added eight more oil rigs. Were now up to 741. Thats up 413 from a year ago. Now you can see oil prices are a little higher closer to 46 but, remember, we have that 5 slide this week getting very close to 45. Bearish over the long run. Producers trying to take advantage of what the opec folks are giving back. Back over to you. And, jackie, i dont want our viewers to be surprised because i know you talked about it. I talked about it. Two years ago all these ducs, wells that were sitting around. I heard you warn about it. I said it. Now these are all coming online. Its exactly what people warned us about two years ago. They can bring them online quickly. Theyre looking at this now as an opportunity, brian. They dont want to sit back on their heels. The tricky part is if we go up too fast there could be more price destruction ahead and that could be bad for the shale players as well. So theyre in control and theres a very fine line to walk. All right, jackie, thank you. Jackie deangelis. Still ahead its we deliver friday. Over the past few days we have been asking you to accepted us your orders, the stock you like us to debate, buy, sell, or hold. Well deliver answers but, first, why the wall youre looking at could be adding more names in the month to come. Brace for more defaults next. Yet another troubling sign in retail, hudsons bay, which owns sachs fifth avenue, lord n taylor is cutting about 2,000 jobs as part of a restructuring effort. The operator run out of the United States also reporting a steeper than expected drop in sales for the quarter. Melissa . Moodys release as new report saying it expects the number of distressed retailers to keep growing with more defaults likely in the months to come. Now 22 retail eers distressed. The lead retail analyst, charlie, good to see you. It does look like a lot of debt in 2018. Thats just around the corner. Theres about a billion that we published which are the b2 b3 ratings, a couple notches above distress for us. You overlay those and you have a tough situation out there for retail in general. Brian talks about this all the time. Everyone says amazon is killing all these brick and mortar retailers. Its not nearly as big a percentage as the market would lead to you believe. What is the real problem macys, nordstroms, sears . The real problem is that retail is over stored now. Its not a liability, its an asset. The problem for retailers today is getting it to be flexible enough to use in your Online Business and some have done a nice job. I would call out nordstroms in a good way. Yes,a pos it tiff way. Sweat iing the asset and use the assets for both channels and thats where retailers have to go. And if you cant do that and we discussed it. 92 are still done off line. That does include gasoline sales. Financial flexibility. Proi vat he cequity and then ths everybody else, can you split it down the middle . You can certainly split it and i think when youre looking at the retailers that did leverage up and these would be the private equity owned companies, they may not have the flexibility to do what they need to do. You have to invest in your Online Business. You have to compete against everybody and think about it this way. Amazon and walmart right now are in the middle of a bat thtle fo retail, period. Theres a lot of Collateral Damage out there. If you get in a price war with walmart, you cant win. If youre the fourth or fifth derivative, even the person the retailer above you can hurt you. And thats what were seeing. So usually in most markets we see credit lead the equities. Weve seen just the equities trade abysmally. So whats your sense of where we are now in terms of whether or not the credit is reflecting the danger some retailers could be in. Were at the highest level the highest number of cwca. Thats one telling factor. Its usually around 40 names and goes in and out. Youre going through Credit Ratings and, by the way, just like in school a c is worse than a b. A cwa is a really distressed company. When you look at the credit rating, the debt load, maybe the debt to equity, which ones would you say, you know what, in 2018 when all that debt is due, these guys are going to have trouble . You could literally look at that list and point a finger and probably be fairly youll have a pretty good chance of hitting someone who will have a problem over the next two years. What are some of the names . Claires is on the list, sears, niemanns is on the list. Im not calling them out spes f specifically as potentially point your finger, but these are big names on the list. J crew is on the list. We have some bellwether retailers that have dropped for a variety of reasons. Charlie, thank you. Cs are worse than bs . Seriously, thats my whole college career. Reevaluate that. Its the craziest thing. Thank you, brian. Ruin my friday. Youre welcome. Cnbc and survey monkey have teamed up. The results may surprise you. Well have them for you next. Hey, the future, whats her problem . Apparently, i kept her up all night. She said the future freaks her out. How come no one likes me, jim . Intel does just think of everything intels doing right now with artificial intelligence. And pretty soon ai is going to help executives like her see trends to stay ahead of her competition. No more sleepless nights. Were going to be friends im sorry about this. Dont be embarrassed of me, jim. Im getting excited about this we know the future. Were going to be friends because were building it. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. 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. All right, welcome back. Cnbc and survey monkey have teamed up for a new Small Business survey. Lets see how theyre feeling and doing with our Small Business expert kate rogers. Reporter this is our first cnbc survey monkey survey. They are confident. Our Confidence Index scaled from zero to 100 has a value of 60. Anything more than 50 indicates owners are feeling more pessimistic than or optimistic than pessimistic about the direction their business will head in over the next 12 months. One quarter says taxes are most critical, double the amount of regulation, customer demand or cost of Employee Health care. Those are all tied at 14 . Also respondents largely approve of the job President Trump is doing so far. National Approval Rating was just 38 in the latest gallop poll. His Approval Rating is at 58 and owners said they believe politics will actually have a positive impact on their business in the year to come. Republicans had a higher confidence reading than democratic Small Business owners, 70 versus 47 and more identified themselves as republicans and democrats at 38 to 23 . The data it for our survey was collected in april amongst some 2,000 Small Business owners. We cast a very wide net. Theyre feeling good. Kate rogers, thank you. Next up, buy, sell or hold. Were serving up stock advice on the stocks you have chosen. We deliver friday next. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Im sue her era. Here is your cnbc news update this hour. Bill cosby said he apologized to the family of the woman he is accused of drugging and assaulting only because her mother thought he was a, quote, dirty old man, end quote. Thats according to testimony that cosby gave over a decade ago. Police outside the greek parliament, an upcoming vote on new austerity measures. South koreas top security analyst and adviser to the president seoul will not change on the deployment of the t. N t a thaad system. And britains labor leader Jeremy Corbyn celebrating his strong showing in thursday