Renewed megacaps. Weakness in technology butt a dumper on the rally if financial shares which were hire following the results of the stress test we told you about last night. Today, the dow jones indus average fell 167 points to 21,287. It had been down more than 250 points midday. Nasdaq drod dropped 90 and s p 500 was off 21. Although the pullback may look concerning, it may want be as bad as it appears. Bob pisani explains. It was anything but a breezy summer day for the stock market. The dow plumets as much as 257 points before ending down 167 points. Largely weighed down by apple. But for the moment, this sunt look so much like the start of a broad eer sell off as a healthy rotation. Investors are moving over big tech names like microsoft and apple and google. Theres some reason for that. Bank stocks for example bounced the cap a tall plans of all 34 banks under review in the second round of the bank stress hasnt happen td since 2008. Theyre raising all of the dif depds. Chevron traded higher because crude oil price started drifting back up and beyond that, the price of copper, a key industrial precious metal is within about 3 this week and bond yields are also up 5 to levels not seen since may. For nightly Business Report, im bob pisani at the New York Stock Exchange. It looks like a slam dunk quarter for nike. The Worlds Largest sportswear maker reported better than expected earnings. Even in the face of increasing competition. The dow component earned 60 cents in the most recent quarter. Ten cents above estimates. Revenue up 5 from a year ago to more than 8. 5 billion. Investors liked the result, sending the stock hire in initial afterhours trading as nikes quarter. Winning ways it sees for nike after revenues came up short last quarterly earnings. The north American Market which had been lagging nikes business so far this year showing signs of life in the quarter with revenues slightly higher than expe expected, while sales were less than anticipated and in just a few days time, the Worlds Largest apparel maker is gd to sell their goods on amazon, something nike resisteded for a rong ti for a long time, so the swishmaker is finally embracing online direct selling. Nike also announcing recently, a reduction in their head count by around 2 . About 1,000 jobs being cut. Theyre also reducing the number of styles they sell by a quarter in an effort to streamline operatak in this report card, its in the inventory, going up 4 in the three months, where as we saw a decline in the previous quarter. And some see inventories as a sign strength of sales. For nightly busi so, what does nikes earnings beat mean for the stock and your investments . Erica irvin is president and ce of of Reality Shares and joins us now. Welcome, eric, nice to have you here. Havin me. First of all, with the report e stock. I know your index owns would you be adding to your position at this point . Yes. So were system attic tattic in, we hav the future potential for growth and if anything, this was just a sign thats going to continue into the future. So for individual investors thinking about how do i protect my investments over time, nikes a perfect positioning for them. You look at the numbers in the report, susan lee just pointed out inventory was up about 4 . That was something one of the analysts we spoke to was very concerned about. He said watch the inventory number. If its growing if in line with sales and this looks like its rough ly in line, okay but read rather see it going down. As long as its growing in line or bet r or you know, shrinking, then both are good. Trz with nike, the biggest thing people have to concern themselves with is inte imagine if you could have owned nike 20 years ago as they were penetrate iing the u. S. Basketb le alone. It was up almost 21 . Thats going to continue as we see this emerging market consumer just get wealthier and more kated in their buying habits. One is the coming world cup. World cup, but the olympics as well. You know, so thee to corporate this three by three format, which is very popular in chip. Incredibly popular and nike owns basketball. They just dominate. So not only do we have soccer, but we have this Global Presence with the b its going to be very strong. Its a new b basketball format. Not so big in the u. S. , but bigger around the world. What about the u. S. Competitive situation . Adidas has been doing nicely. Under armour, they dont own the space, but theyre no, maam dant, nike, that is. You never want to throw in the towel. Nike just continues to innovate and create new products and they really are a fashion that doesnt go out of style because they constantly figure out ways to talk to their consumer and surprise them and delight them. Thats what theyre going to continue to do here in this market. On that note, thank you, eric, for joining us. You bet. Reality shares. Zblmpb good news and less good news. Gross domestic product grew by more than expected at 1. 4 in the First Quarter. The final reading on it economy grew at just 1. 4 . The reading was the First Quarter since last year. Wh a rate that has bonn knot been achieved in the u. S. Since the 1990s. A Federal Reserve official does not support raising shortterm Interest Rates this year. James bull lard, president of the st. Louis fed, state the current level is appropriate for a lo and that he does not think the decline in the Unemployment Rate would push up inflation all that dramatically. The multibillion dollar merger between two of the nations largest drugstores has fallen apart, but not completely. Walgreens scrappins takeover for rite aid and instead, will buy about half. That sent shares of rite aid down. Bertha coombs has more. Walgreens and rite aid say they decided to scrap their nearly 9. 5 billion merger deal because after 18 monlts of negotiatin would blocked. Based upon feedback we have received that led us to receive they would not approve the merger. Will give rite aid access to drugs at a pigger discount through wholesalers. In my firm belief of the english faith where the there is a way that 2 million can despite find a deal that believes any trouble. During the merge erlg process, but analysts say the tc may still have concerns about consolidation. There could be some diftty because it could give walgreens more negotiation leverage. It gives them an edge and grows their market share. Theyre already the largest player there. Walgreens ceo says this smaller deal will still help the company achieve the growth it needs. An environment which will get more promising with reports that amazon is now exploring the pharmacy business. The expresse doubt i that amazon will be interest nd the near future in the next few years. In the market because they have so many opportunities. And many which make it much more simpler. Which is a really business. Rite aids ceo laughed when asked about amazon, but said everyone in the spindustry is looking at selling prescriptions beyond the pharmacy counters. I think all of us are trying to figure out how to crack the code on that kind of economic model. If approve d, they expect th new deal to close months. Still ahead, lawmakers are considering changing the way americans save for retirement. The Treasury Department is taking new steps to increase pressure on north korea. It is target iing a few chinese entities including small bank that allegedly acts as a conduit for illicit financial activity, ib including facilitating transactions for the ballistics weapons program. The secretary made it clear the focus is on north korea, not china. We look forward to continuing working closely with 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 of g20 next week to further our efforts to cut off north koreas illicit activities. The white house also confirmed that president tt witt putin after at the gathering of world leaders. Republican senators are now negotiating changes to Health Care Legislation that would overhaul the industry. Akoording to reports, law mareks are considering c the nearly 4 tax would ensure there is funding for subsidies for consumers who acquire insurance. According to the wall street journal, no final decision has been reached. Wall street as you know has been focused on the prospect of tax reform. A key part of the trump agenda. And there is talk about potential changes that could change the way you save for retirement. Elon has the details. The fight is starting to get personal. Much of the debate here in washington has focused on the need to overhaul the Corporate Tax cow coa of consumers and Industry Groups its calling attention to the prospect for major changes for individuals. Particularly when it comes to retirement. Thats because the taxes you get to defer on Retirement Savings are worth 584 billion in federal revenue through 2020. Former congressman jim mcrearry works at the save or savings coalition. He called that a piggy bank thats tough for lawmakers to resist. Retirement security pot of money is pretty big. In the united states. Revenue icy mareks neutral tax bill frek, its a logical place for them to look. Needs to find a way to pay for it. Among the coalition is concerned about, limiting deductions for 401 k s and iras, lowering the cap on how much individuals can contribute and create iing a ne after tax univer account remina is a policy pert from the heritage foundation. She said americans should be open to new ways to save for retirement. Universal savings account which has been proposed by dave and jeff flake, it allows them to par tase pit in our requirement savings system. Now, a spokeswoman said that 401 k s remain a critical savings tool. The white house has also said it would preserve the 401 k deduction. But the coalition is still worried theres wiggle room in those promises. 75 of private Sector Workers any change to the requirement system could felt far and wide and no one can guarantee that retirement will be golden. And to read more about how tax reform could change the way we save for retirement, you can head to our website, nbr. Com. Consolation brands sees better earnings on tap and thats where we begin tonights market focus. The Liquor Company raised its earnings outlook for the year following a better than expected profit. Helped in large part by strong beer sales. Overall revenue u rose, but it wasnt enough to beat expectations. Still, shares up 5 to 192. 79. The food giant con agra saw its profit rise. Its the maker of slim jims and ready whip, dont combine the two. They cut cost and shed slow margin products. Those results matched estimates. The company said it would buy back an additional 1 billion in shares. Thats lot of slim jims, but shares took a hit because of con agras lowest than expected marnlens and a profit forecast that was below many analysts projections. Shares were off at 36. 08. The Meal Delivery service. Almost said male delivery service. Blue apron began trading on the New York Stock Exchange today. 10 tlrs r the companys initial range of 15 to 17 a share. The ceo says he still sees a lot of growth potential. One of the big opportunities for blue apron quite frankly Going Forward is to even grow that Revenue Generation for customers by going into new categories, more products in the same customers weve already acquired and deliver and develop new products for some of the customers today that we dont currently serve. All right, so they opened at 10 a share. And they closed at 10 a share. Ending the 21st century fox is nearly 12 billion deal to buy the rest of European Broadcaster Sky hit a roadblock today. British regulators raised concerns that billionaire fox owner, rupert murdoch, would have too much control over the u. K. Media. The deal will be b examined by britains regulators. Shares rose to 28. 19. Mccormick said acquisitions and new product demand helpeded the Company Report higher than expected revenue. Also came in ahead of forecast, but the company slashed gints for annual operating share. And that sent shares lower by 3 to 95. 36. And the Semiconductor Maker micron technologies said cost cuts and improved prices of memory chips helped sales grow. The company also beat earnings ek peckations and gave guidance for the Current Quarter above forecasts. The shares were flat but ended county 2 31. 47. After calling kin etic in home for more than 160 years, aetna is is relocating to new york city. The move comes at connecticut faces budget deficit problems. The insurance giant says it plans to retain thousands of employees at its hartford campus, pu that could change down the road depending on the States Economic health. New york city apartment prices ghit a new high. According to the wall street journal, apartment sail sales in the big apple rose 20 in the it the strongest pared to last Second Quarter since 2008. The report noted that buying activity though may be getting too kole as there are less new home contracts being signed. The infrastructure in the countrys largest city is in such poor shap declared a state emergency. Andrew cuomo of new york plans to sign an executive order to accelerate everies to include the citys subway system and its service. Including in it needed repairs and cars and other equipment. There have been lots of derailments lately. The governor pledged to direct an additional billion dollars for capital improvement. This comes just days after a subway train derailed increasing concerns that the system is not just unreliable and not on time, but unsafe. Across the country in los angeles, a tunnelling start up began dig iging under the city create a tranetwor elon musks venture called the boring company, just completed the first segment of the tunnel in l. A. Last month, he said that the first tunnel would run from the airport known as lax to culver city, santa monica, westwood and sherman oaks t plan calls for other tunnels to cover more of the greater l. A. Qua. Maybe he wants to consider the name of the boring company. Coming up, in ten years, the iphone has transformed the way we liv created whole industries, disrupted businesses, so whats next for the smart phone . Sfrz. Artificial intelligence will add nearly 16 trillion. The boost in gdp by as much as 14 by 2030. The technology would increase productivity and spur shopper to spend more. The report calculates that shoppers driven to work by Autonomous Cars will use their extra time and resources to buy more hire eququality goods. Ten yea ago, people lined up to buy the first iphone. No one knew then what we would know now and that is that it would change the way we live and it would change the business it created entire industries while kryps ming some others. Josh lipton takes a look at the device. An ipod. A phone. And an internet communicator. And ipod, a phone. Are you getting it . Not even steve jobs could have known just how transformtive this device could be. Apple has sold more than 1 billion iphones and its flag ship product now accounts for the majority of its sales. The iphone didnt just reinvent apple. The product upended and redefined markets. Made the blackberry all but obsole obsolete. It als created an app economy valued at 1 trillion and its the app store that helped fuel the growth of so many young, mobile First Companies from snap so, what do Consumers Want to see from the iphone ten years from now . Face time should be multiway. Like conference call. Should be able to test for passengers in the air. The food, making sure that air quality is good. Would not likely to be integrat this comes at a critical time for apple. With with iphone sales coming off their first year of decline, but investors have high hopes for that latest virgen version expect nd the fall. Im josh lipton, san francisco. Apples smart phone is by some accounts, the mother of all smart phones and a game changer for the industry, but with so many in the market, what will this mean for the future of the smart phone . And will it be even around in ten years as we know it today . Scott stein is Senior Editor at cnet and joins us now to discuss. Scott, i heard someone say that the ultimately, the smart phone wont even have a foep. Questn is will you still be looking at a screen. Up looking really Old Fashioned as these devices connect easily to other things, do you want to be looking at the screen or things they connect o to. If if it connects to my refrenlg rater, id rather look at the screen. Carrying a huge phone is not always that ito get smaller in some ways. I think its ballooned in size and in ambitious. The other question, too, is how much of that will be b u see a lot of voice connected stuff and i feel like that has is ups and downs and its probably hit iting a wall as fa is also challenged as far as you know, the idea of artificial intelligence, can they rise up against google, amazon and others and provide and prove to be a power house in the ai field. Also, what you can do with a screen and a phone, possibly augmented reality, which is what apple is going towards. Now, is that go ahead. Back to something that you mentioned and that is the voice controlled technology. Like the alexas in the house. That seems to be b the most immediate challenge to me. To the iphone and the other smart phone makers. How do they either integrate that, go around it, enterprise things that are better than that. Its a good question. I think its a huge challenge. I mean, appls sir, has a lot of issues. It doesnt work well for me a lot of the time and theres a war going on in voice controlled tech where you know, whether youre using google or amazon or apple, youre picking one ecosystem and you cant talk to multiple ais at once or multiple voices like you can launch apps. Thats something apple launches more than one device, which they will, with home pod sit ng the home and list ping. How do you handle, ta