Welcome. Im Michelle Carew sew cabrera. Transports and the small caps, the russell 2,000 trading above record close right now check out the individual movers. Coach, Constellation Brands among the names hitting new highs today even though constellation has pulled back. Tyler. Welcome, im Tyler Mathisen heres whats happening at this hour blue apron plunging 10 right now. Reports that amazon may look to get into the prepared Meal Kit Market more on this ahead and manufacturing in new york state growing for a second straight month in july, but it is at a much slower pace new orders and shipments both slipping just a bit. And celebrity chef bobby flay is planning to take his fast casual burger chain public. Melissa . The Trump Administration is calling this week made in america week and today the white house is hosting a made in America Showcase featuring products from all 50 states. Ammon jafrs with the latest efforts. Reporter thats right, melissa. The president is going to tour displays here of products that are made in america. Theres going to be an indoor component, an outdoor component on the south lawn including marine one which is of course made in the United States. Theyre going to highlight a bunch of brands here look at the list including chickfila, caterpillar, campbells soup, stein way, gibson guitars, stetson hats no word on exactly how the white house is going to address the questions that are going to inevitably come about why ivanka trumps products and the products that are sold at trump hotels are not themselves all made in america. Well wait for the 2 00 p. M. Offcamera briefing for the answers to that question which is likely to come the white houses way. Despite this theme week that the white house is focused on, the president still tweeting about russia today he had a tweet this morning saying, most politicians would have gone to a meeting like the one don jr. Attended in order to get info on an opponent. Thats politics. So the president there defending his son taking a meeting with a russian lawyer who was advertised to be carrying information on Hillary Clinton i can tell you, a lot of folks here in washington would not agree with that statement and say that is simply a normal thing to do in politics, but the Trump Administration very much focused on explaining away that meeting as a typical daily research, the kind of thing that you always do in a campaign. Ammon, thank you. The senate putting off a vote on health care while senator john mccain recovers from surgery when mccain comes back, is the bill going to come back as well . John harwood is live in washington. Reporter on that theme week that ammon mentioned, one thing that is not going to be made in america this week is the new Senate Health care bill. John mccain, over the weekend, had surgery to resolve a blood clot behind one of his eyes. That involved surgery into his skull. He is out and as long as hes out, Mitch Mcconnell definitely does not have the votes even to take up this Senate Health care bill the longer that bill hangs out there, the more its going to be hit by criticism like this over the weekend from republican senator Susan Collins of maine this bill would impose fundamental sweeping changes in the medicaid program, and those include very deep cuts that would affect some of the most Vulnerable People in our society, including disabled children, poor seniors it would affect our rural hospitals and our nursing homes, and they would have a very difficult time even staying in existence and serving vulnerable populations. Reporter now, that kind of criticism is very threatening to the bill because any number of seven senators may vote against it among those considering no votes are people from dean heller of nevada who came out against the first iteration of this bill to ron johnson of wisconsin whos got various objections to it the problem is if this bill continues to be in limbo, you have a whole series of things waiting in line behind it that are going to be stacked up first of all, Congress Needs to pass a new budget resolution that is critical to getting to tax reform because they want to pass it under the favorable rules that you can only get under a budget resolution. So once they do that, unless they have already done health care, that would kill health care, and then theyve also, in addition to tax reform, theyve also got to raise the debt limit some time in the next couple of months, so theres increasing squeeze play on congress about Getting Health Care wrapped up and getting onto the other issues tyler. Thank you very much earnings parade kicking into high gear. Netflix after the bell today, nine components report this week despite the d. C. Drama, are earnings deciding the key driver of this market john, we have a fed that seems to be tightening thats the suggestion that everybodys following here, the belief we have a congress that seems locked up. They dont seem to be making a ton of progress on any front right now. So is all you have then to move the market up earnings i dont know if i would be quite as critical. I think the fed is not so much tightening as readjusting. They dont have an oath registered in heaven to destroy the economy. I think janet yellen will raise as much as she can without adversely affecting the economy. But you do not have a tailwind no. The fed policy isnt going to be restrictive i should be clear about that but its not the tailwind it was over the last 8 years. The only reason theyre not pushing is its worked earnings are going up as the fed backs away and tries to bring rates back to normal money can get pulled back into the stock market from earnings and thats what im hoping happenings. Is there one or two that you will pay particular attention to im going to be looking at goldman sachs. At the end of the last quarter, around march, estimates were around 4. Theyre down to 3. 40. Thats a pretty big lack of confidence from analysts im looking at that. Im going to be looking at microsoft and g. E. Because a lot of focus is going to be on multinationals. S p revenue, about 40 is overseas, so i want to see if that actually translates to the bottom line. Did your stomach turn when you saw the black rock numbers yeah. 80 to passive low margin funds, meaning people dont want people like you to tell them what to buy or sell. The inflows were pretty staggering very often the reaction you get of black rock is down today, its really more of a reaction of analysts pegging the numbers. I have to push of my industry. Active management is really key in key areas, international, small cap where there are less Analysts Covering the stocks thats a chance for analysts to really shine. Isnt the linchpin going to be Technology Earnings tech stocks the biggest gainer so far we need to see them deliver at this point, yes . Otherwise this record high may be poof. Poof and then well see what happens. No matter how highly valued Technology Gets within reason, its not going to be the valuation that pulls it down but that could be two or three years from now i lived through the late 90s. It was over, too high, over. As along as the numbers keep coming through, you keep buying. When they dont come through, even take your loss. Its very interesting that the most important sector isnt tech this quarter. The most important sector was the worst performing this year and thats energy. Energy is going to drive growth. Without energy this quarter, you got only 4 Growth Energy is going to be up about 400, 600 . Thats even with oil only at 45 right now. David, john, thanks activist investor nelson pelths pushing for a seat on the board of Procter Gamble but look at the stock, barely moving and have you ever gone on vacation and thought this would be a great place to buy a house and rent it out. Well tell you which spots make the best rental investments, comi uonpor ncngp weluh. Welcome back nelson pelts and his hedge fund pushing for a seat on the board of Procter Gamble but is that really all they want. They want a board seat, better returns and they think that by making peltz a director he can boost p gs market share and bring down the companys bureaucracy. Thats according to materials filed today. He told squawk on the street earlier thismorning that the company has room for improvem t improvement. P g is 4 higher, yet their margins are right up with the top guys in the business theyre bigger than anybody else theyve got this 40 price advantage. Somethings wrong. Something is wrong theyve taken 10 billion of costs out since 2012 we havent seen we cant find a penny of it. Now, in response to the proxy fight, Procter Gamble said it maintained, quote, an active and constructive dialogue since it made its investment in the company but as you look at Procter Gambles muted stock price today, its important to note what trian is not asking for. Peltz doesnt want to break up the company, fire the ceo, replace directors, or cut pension benefits todays news is whether or not peltz can get enough shareholders to vote him onto the board or whether this forces the companys hand into a settlement guys were going to talk more about that now thanks, leslie. Joining us is Jeffrey Sonnenfeld and jeff graham, author of dear chairman. Professor sonnenfeld, ill kick it off with you. What do you think nelson peltz is after with this one board seat what can he do with that what i think hes really after, if there werent lawyers watching i would say were looking at a 75, soon 76yearold looking for one more final fling. This is not something which is needed this is a man who is already on five boards if you count his own tran hes on four major boards. That should be a pretty big distraction. Every Stock Exchange would condemn somebody to be on more than four boards even if he was sitting around with nothing to do with his time, this is a stronger board than any in america. It is a fantastic board with former ceos or current ceos from great firms, from American Express to boeing to others, and this is a ceo whos a year and a half into the job doing everything right this is a brand thats sort of one of the top brands in the world. This is something that shareholders should be celebrating. And by the way, activists no longer are the darling of investors. So were seeing a lot of shareholder disfavor to run behind these kind of campaigns finally. Jeff number two, let me ask you, leslie just said he doesnt want to replace the ceo, he doesnt want to replace the board, so what does he want . One last shot at the brass ring, as professor sewnenfeld said. Jeff number one is exactly right. You have a situation where you dont have like the widespread discontent with the ceo and the board that you see in a lot of other activist situations. And so it seems like his main complaint is he likes the ceo but he wants things to move a bit faster the question that you have to ask is, is that the kind of an argument that will resonate with the voting shareholders of p g and im not sure that it will. The stock underperforms the market we had an analyst on this morning who thinks there should be a fullon breakup because of all the statistics that peltz talked about, the ability to charge more because they have the best brands and yet their margins arent competitive happily, michelle, thats not while thats his traditional motor tudus operandn peltz is not looking for some big assetdy inve dd dd dd ddy de weve seen breakup of pieces sold off after their lowest pieces at the worst times. Happily, peltz is not pushing for that even. Only you and that analyst this morning. Jeff, you say all these good things about the management. The stock though still underperforms. Amazing thing about the magic of markets unless youre elon musk and jeff bez bezos, it doesnt happen in seconds. Im not sure a honeymoon period ought to be but it ought to be longer hes doing everything right, as even peltz says he is. If peltz said that the ceo is doing everything right, lets take him at his word they have reduced from 16 product categories down to ten bringing in more focus that the higher shareholder performers in this space have had more focus and theyre getting back to that focus and theyve got the right guy to do it. How do you think nelson peltz ultimately makes money is he along for the ride hes got a new ceo theyre on the right track any move a little faster maybe the stock price might move higher faster . A guy like nelson peltz doesnt tie up a few billion bucks in a 224 billion Market Cap Company for no reason, right look, its a good, depend a e dependable its a bow heem hee moth even if his activism is not successful, he has had a lot of these situations, including pepsi, where he gets involved and gets engaged and, you know, like, hes correct on the stock. Its an undervalued stock and he succeed in the investment when his activism ultimately falls short and this could be a situation like that. Quick final question to you we spent a part of last week talking about the entry of the german grosser leadle in the United States. They make a lot of their money selling nonbranded products, housebranded products, generics that are of high quality the broad question here is, is the day of the dominant brand on which p g has made its living for more than 150 years, is it waning no. Weve had generics come in, unbranded goods come in to clothing apparel, pharmaceuticals and still theres a great premium on the accountability, the quality, the dependability. But theres always room for generics, too. Theres a big marketplace out there. What there isnt room for is activists. Thats why 100 of Institutional Investors say theyre not happy with the performance of their activist thats the issue here. Weve got a great board, great leadership, no reason to disrupt thats being fixed beautifully now. Thank you very much, guys thanks. Appreciate it. It is summertime and youre taking a great family vacation, you may be thinking would it be a smart idea to buy a rental home near where youre staying everybody thinks about that. Well tell about you an interesting new way to find that ideal location plus, when life throws you a rainy day, play in the puddles winnie the pooh acblklisted in china. Well tell you why. Is he pro democracy [brother] any last words . [boy] karma, danny. Karma [vo] progress is seizing the moment. Your summer moment awaits you, now that the summer of audi sales event is here. Audi will cover your first you have a place to go on vacation and think it would be a great idea to buy a house there and rent it out for some of the season diana olick joins us with a look at a new product to help you determine whether that investment will pay off. Diana . Well, becoming a landlord today looks like a nobrainer. There are lots of companies to help you buy, manage and even renovate rebtal homes. With home prices sky high, demand for rental homes is stronger than ever but as you said, not every property will offer great returns, and some, well, they could offer very great risk. So roofstock which is an Online Market for Single Family rental homes is launching a new rental index that rates every neighborhood in the nation for risk 72,000 separate census tracks with about 1500 homes per track. Beyond home values and rent prices, it looks at several other metrics like income and education levels of the local population level of owneroccupants, employment, School Ratings from elementary to high school among other things, and then it ranks their risk on a fivepoint scale. What our index does is it breaks down a city into very little discreet pieces and neighborhoods and it may be that a neighborhood is a very interesting opportunity for the right type of investor, even if it may be off the radar at a metropolitan level competitors in the rental marketplace like home union and investability, they all offer data on investor returns for big local markets, but they dont get as granular with this type of risk. Roofstocks idea is to open up the nations neighborhoods to all investors everywhere and then give them a little peek inside especially as more and more novices enter the market learn more about this and find the links, realtycheck. Cnbc. Com. So they actually sell homes on their site so they collect the brokers fee on that or some sort of fee exacted by the seller well, roofstock is one of these market places where you can go on, you can find out where homes are. Theyll help you manage them and help you find them, buy them its not so much that what were talking about. Its this index of risk which theyre trying to help you decide in the first place where to go to but there are lots of companies that will help you buy the homes. They dont necessarily sell them directly theyre more like listing sites or brokerages. Diana olick, thank you in d. C. To the bond market Rick Santelli is tracking the action at the cme. If you look at a tenyear note, its down about two points twos are unchanged, 30s down three. Nobody should be surprised open a chart to about the second week of march and youll see that march, may, july, all have tops that are slightly smaller as you go along. 2. 42, 2. 41, a whisker under 2. 40 open a chart up to the end of 2015 2. 27 is big. Thats where we settled 2015 and it always seems to come back and haunt us the market is acting as though its going to be that tight of a range. We talk a lot about the strength on the euro versus a variety of big currencies whether its the pound, the yen, but on the dollar index, it continues to hover at some of the lowest levels since november and many traders dont see any bounce to the ounce even though our central bank is in the snuggie mode more than any other central bank michelle, back to you. Markets showing doubts then thanks, rick white house pushing made in america week will we see a move on nafta or trade with china and speaking of china, why did the country ban winnie the pooh how the loveable bear got himself in the middle of an