trip brian. godspeed. >> thanks. big show. jack ma melissa, janus, all tomorrow. thank you very much. more on the markets and more on that scare at the white house press briefing room. "closing bell" starts now. take care, everybody. welcome to "the closing bell." i'm kelly evans. >> i'm simon hobbs in for bill griffith. we are expecting the latest inventory numbers in over an hour. >> move over lipitor. there is a new class of cholesterol drugs. we'll bring you the panel's decision coming up. >> when elon musk speaks investors listen. he will take center stage of the shareholder meeting later. we'll tell what you to expect and how could it impact the

stock tonight and tomorrow. >> green arrows for the s&p and dow. narrow gains. nasdaq in the road. down about two or three points. 5019 is the level there. crude oil is what everybody is watching today. jackie deangelis has more from the nymex to explain that pump higher. >> we did close today over $60 a barrel. $60.14. simon mentioned china. that's one reason. traders were looking at products today. not only gasoline moving higher so was heating oil. when that happens, there is more demand for crude and prices go up. headlines hitting the tape saudi arabia was continuing air strikes in yenl. on a day when crude was moving higher and had momentum you had geopolitical fear added to the

equation. we've been in a tight range. from $58 to $62. traders think we are going to stay in this range. another case where we close lower yesterday and buying the dip strength today. we get this data out later. that will be a precursor to what the department of energy says about inventories. traders have been watching the numbers carefully. especially what the eia says about production. production has been rising in the u.s. despite the fact we've got rig count declines capex declines, et cetera. sometimes those numbers move crude oil trade in the after-hours. >> thank you. oil higher inevitably perhaps, the transports falling again today. it's not just the airlines getting grounded. morgan brennan has details. >> they are down about 10%

correction territory since their december high. other than airlines, some the biggest losers railroads. kansas city southern union pacific, all down after several years of strong gains. the collapse in energy prices the strength of the dollar. railroads are hauling less crude oil, metals frack sand grains. that's contributing to weaker earnings. the trend is expected to continue until later this year. the transports that depend on consumer demand the parcel carriers trucking companies that should be helped. so far that hasn't happened. without stronger economic growth it might not happen. analysts expect the weakness in transports to continue.

from a technical level, 8300 is a key support level strategists are watching. if we close below that the next stop could be 8,000 for dow transports. >> thank you morgan brennan at the nasdaq. let's bring in our closing bell exchange today. guys, welcome all. let me kick off with you. how worried should people be by these continual moves down in the transports and rising oil? >> i think they shouldn't be surprised by the move in transports. transports are often, as your reporter mentioned, geared to economic activity. we had a bad run of data. the first quarter number was bad. once it became clear it was going to be a bad number that's when you saw transports move down with aggressiveness. we think we are seeing some of the economic data accelerate. that should lift transports and

broader market back up. >> a lot of people are looking for what takes us to that next move, whether it is higher or lower. how much further do you think that move could go? >> i think interest rates are going higher. stocks can be coupled nicely from that and do fine. maybe even benefit from the bubble popping in the bond market. i don't think we have a bubble quote, speculative bubble in u.s. stocks. we had a great six-year run. there is more life to it to come. i think the transports are a unique case. a lot of people think the transports will lead. looking back they led in 1990 and 1999's peaks, but they didn't lead the crash of '87 or lead 2008. i think the airlines and railroad s railroads are going down for their own reasons. i would agree there are going to accelerate with what's going on

with oil prices and supply. i'm bullish on stocks. i expect another 10% gain in very short order once basically some of this rotational correction is done. it's a healthy thing. we rotate from one sector to another. >> what are you telling clients? >> i agree with the premise the economy is going to build its base like it's been doing. it will be a slow progressive recovery, but economically strong recovery. we like the market here. we think it's more of a technical sell-off from breaking out from its highs. we expect the market to turn around here. >> what parts of the market do you like? >> i like the areas that get beat up. i like the technology area after getting drummed the last few days. when things are out of favor, that's when i like things. when things get too in favor, i try to look at a rotation from there. i agree with the comment made

about interest rates going somewhat higher. not running away. yet being a positive. once you realize the economic recovery has taken place, higher rates are natural and should be embraced. >> presumably there is a point which interest rates rise to a level they suck people back out of dividend-paying stocks. i'm guessing it's around 3% on the 10 year. >> i would say we've got a big way to go on that. i agree with that number now. you have to see how earnings impact as we go into rate moves. there is a good chance that won't be the case. >> which parts of the market do you best like? >> i go for consistency. financials look great. they account aed great after the strong jobs data. the spread is widening. wells fargo is my leader. it's the only one still making new all-time highs. i love oil refiners.

this he managed it well. >> today getting that nice pop from crude prices. eric, when you look around here at some of the damage that has been done do you see opportunity or are we still talking? i remember talking about netflix yesterday, other names trading at lofty valuations there. is this market looking a he tractive from a valuation point of view? >> it's expensive. it's going to remain expensive and get more expensive in the future. our view is the cycle is supportive for equities. buy on the dips is a good idea. if you take that to its logical conclusion, europe had a bigger dip. we like europe more than the u.s. we think the u.s. will have a good return here in the end of the year. mostly cyclicals. we like financials as much as the prior speaker did. we like health care and consumer discretionary.

>> the thing that stands out is your call the market could rally about 10%. how can that be when we are at 18 times earnings? >> again, you can go to 20 times earnings. the question is where else do you put your money in this market and it's not in gold there is no inflationary pressure? it's a sweet spot for stocks. yes, people are worried we are getting long in the tooth six years. the market can still go seven, eight years. i think maybe in a year or so we might be worried. right now, i'm in that bowl. >> thank you so much. we'll have more on whether it's the u.s. or foreign markets that are most attractive here. >> 15 minutes to go to the close. this market is trying to make a comeback. the dow slightly positive. we are drifting the other way. nasdaq is dragging everybody lower by about seven points. >> coming up in the program, general motors' ceo mary berra dismissing prospects of a merger with fiat chrysler.

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do we get to keep any? welcome back. you see with the dow up it is the consumer staples leading the way. procter and gamble leading the dow up nearly 2% today. we are roughly split between gainers and decliners. technology being the laggard today. that is reflected in the nasdaq. >> breaking news on the white house briefing room evacuation

within the last hour. >> reporter: a jitter day in washington with security threats on both ends of pennsylvania avenue. up on capitol hill in the united states senate this is the scene at about 12:17 p.m. eastern time. as a senate hearing on tsa was interrupted by a called-in threat of some kind. senators in charge of the hearing evacuated the room. capitol police officers moved everybody out of the building on to the surrounding neighborhood. they resumed that hearing about half hour later after the all-clear was given. in the white house at about 2:08 p.m. during the daily televised white house briefing here is the scene as josh earnest was informed they needed to evacuate that briefing room because of a bomb threat called in to metropolitan police. you see reporters filing out in an ordinarily way. there is question now as to what happened.

when earnest came back he said president obama had been in the white house complex during this evacuation but the evacuation at the white house was centered just on the white house press briefing room and not to the larger west wing office area where presumably the president was. though not saying exactly where the president was during this situation. >> if you look at the expressions on the white house press corps as it left they were resigned to it. there wasn't a huge amount of fear. can you give us color how common this is in d.c.? >> it is common. this happens frequently. there is an unintended package, somebody moving too close to the white house fence on pennsylvania avenue. we've seen incidents of fence jumpers getting on to the white house grounds. one case inside the white house. there are security incidents that happen. that resignation on the

reporters' faces, this is daily life in washington these days. there is some question of what secret service can do. they have to take some kind of action. they have to take some effort in case it's real. so often we have these things and they turn out to be false alarms. >> do we know that about the briefing room, that it was a bomb threat? >> we do know it was a bomb threat. we also know they were begin the all-clear. earnest came back in the room. tried to resume the briefing and moving on to topics of trade and international diplomacy. reporters anxious to ask what happened. what they were concerned about was the fact somebody came into the room reporters evacuated the press briefing room but they left their live cameras running. we here at the d.c. bureau could see inside the feed. people around the world could see what was happening. somebody physically blocked those cameras putting up

newspapers and bags to block the press' view of what was happening in that room. reporters asking questions who that was and why that is done. obviously, there is a security concern and first amendment media relations concern. >> i guess the way you search for bombs is potential interest to enemies of the state. you don't want that -- whether it's the dog that does the sniffing or whatever you don't want that broadcast. >> presumably that's the answer. i can tell you one of the things they are always very protective of is the exact methodology of what they do. they are sensitive to the question somebody might have a ruse or trigger just to watch security respond to an incident. they stand off and look how security responds. then they can learn from that for a real attack later. presumably secret service would be concerned about an entire global television audience watching them do what they do.

reporters are concerned and want to know what happened or why it happened. >> or the identity of the agents involved. back on the equity market general motors not too far away from its 52-week high. ceo mary berra dismissing prospects of mergers with fiat chrysler. phil lebeau has more. >> reporter: thank you very much. we'll talk about the merger prospects or nonprospects as it appears for general motors and fiat chrysler. want to give a quick update general motors might be close to a plea bargain with the department of justice to wrap up a criminal investigation into defective ignition switches. today, mary berra said they have no comment regarding whether or not this will be wrapped up by the end of the summer as many reports suggested. here is what she had to say regarding gm and the doj

investigation. >> we have cooperated fully. we continue to do that. it is their timeline. we are going to continue to cooperate to the fullest extent we can. beyond that i think anything else is pure speculation. it does no one any good. >> let's talk about the other story getting a fair amount of attention when it comes to general motors. it involves this man here. the ceo of fiat chrysler. he was been courting gm shareholders, talking about hedge funds that have a stake in gm potentially activist hedge funds about the possibility of a merger. gm said it's not interested in a merge er merger with gm and fiat chrysler. mary berra saying we have a plan and plan to execute that plan. take a look at the dimplevergence between the two stocks. morningstar sent me a note.

part of the rise for fiat chrysler is because of what we've seen with the euro in terms of its costs and how it's benefited there. the other issue coming into play here is when you look at where fiat chrysler is in terms of its execution, sergio marchionne is better interested utilizing the capital this company has in the form of a merger. that it's divergent. don't expect gm to talk to sergio any time soon. >> it's new to the market. up's interested why they ended up at gm? you will know it's no secret sergio was shopping fiat chrysler to anyone who would listen. why has he ended up at gm's door with this force? is it industrial logic or because he feels it's a weaker management team arguably that

could be corralled into some deal? >> it's not just gm. gm is the most public right now. we know he said there were other e-mails. john elkin said there have been other conversations. gm is the only one we've seen leaked so far. his theory being if you take out all the excess capacity if you combine north america strength from fiat chrysler with jeep and ram trucks along with general motors you've got a powerhouse on your hands. mary berra saying we are already strong in north america. we are number one in north america. we have a strong truck lineup we don't need them. we don't need jeep. jeep is clearly the crown jewel. any automaker would love to have jeep. if you're gm and in the process of doing a lot of things in terms of stripping out excess costs, do you want to take on more debt? do you want to take on the complexity adding in fiat chrysler? that's why they are not

interested. >> we talked about this excess capacity issue. if sergio is right and there will be three major car makers producing 15 million cars a year globally, does that argue for more of a tie-up between a 10 million gm producer and 5 million producer fiat chrysler is? will the merger be the correct thing? >> i think he is right in terms of consolidation. what about volkswagen? volkswagen's presence in north america is really low. they don't have a truck platform. they don't do much in suvs. their car program has been anemic for decades. if he hooks up with volkswagen if you are volkswagen and you look at fiat chrysler, you solved the one weakness. don't be surprised if we see something potentially with

volkswagen or other automakers what about the koreans? there are a lot of players out there who would love to have fiat chrysler's strength in north america. gm is strong here. the question is why would it want to do more? >> i'm not sure regulators would be very hot on the volkswagen deal. we had three sessions of losses. we are flat overall which is the positive way to look where we traded today. much of the session has been about recovery from 10:30 eastern. >> that move up in crude weighing on things. a new class of drugs lowering so-called bad cholesterol. it may take another step closer to approval within this hour.

meg terrell will tell us which companies stand to win. >> and the latest on what is kicking lululemon shares into high gear. suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid. checking out the listing on zillow i sent you? yeah, i like it. this place has a great backyard. i can't believe we're finally doing this.

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welcome back. we have a news alert on target. >> target what is we are talking about. they announced a 7.7% boost to quarterly dividend payment. that makes it 06 cents per share. total authorization to $10 billion in total for both authorizations. 7.7% increase to the dividend quarterly, and $5 billion addition to stock buyback program. the company did say in a statement they intend to have the capacity onto crease the annual dividend and repurchase billions of dollars of target shares annually while still maintaining our current credit rating. again news on target. it did move the stock. now well off its best levels today. >> it did pop a little bit. everybody is trying to fight into the green today. lululemon is managing the session. shares soaring on the back of better than expected quarterly earnings and increased guidance

for the year. the company reporting 31% jump in online sales. netflix rising on hopes a stock split will be announced at the annual shareholder meeting today. trading near its 52-week high just under $650. check out spider biotech xpi. it is pulling back. one biotech watcher saying investors are on their toes for any bad news. it's up more than 360% over the past five years. in a not unconnected event, food and drug administration panel is debating whether to recommend a new class of cholesterol drugs. its decision could come within the hour. meg terrell is here with more details. >> this would be one of the first new classes of crest roll drugs in more than a decade. today the outside panel of advisors to the fda is discussing preloid. tomorrow they'll discuss a similar drug.

they are known to lower levels of ldl as much as 60%. could be promising there. right now the panel is discussing the safety of these drugs. they are thought to be prescribed widely. discussion whether they will be prescribed on top of statins like lipitor or for patients who can tolerate statins. talking about safety. people say safety looks good. because they could be prescribed so broadly, that is a big topic. next up they'll talk about the efficacy of these drugs. anybody in about an hour they'll vote whether the risk benefit is appropriate to many recommend this one drug today. the vote will be the one for regeneron. its stock has been halted today. question tomorrow whether amgen will also be halted. >> does one follow the other? if it goes through tonight, it's likely to go through tomorrow?

>> that's the thought. they are very similar. they are different what it they are dosed. people think they are looking similar to each other now. >> nice to see you meg. just about half hour to go in this session. that's where you'll see a pick up in volume. feels like we are sitting on that fence. what are you watching? >> interest rates and yields on the ten year moving our markets other than that individual areas, continue to watch the financials. the conference going on you guys are covering has been moving those stocks. goldman sachs having a health care conference. those are the two areas we are focused on in the trading floor. aside from that it's the yields. >> speaking of yields how about that jolt we got earlier this morning? >> that's a direct impact on what you are seeing in the ten-year yield. that's having an impact. we have to stop saying we are tightening and look at it as normalizing. job openings and labor turnover.

we saw the highest number of u.s. job openings in this country in years. >> there seem to be less people quitting their jobs. it's the chicken lit until the bond market if you will. it started with the bunds. i truly believe the credit market is the bubble. you have nothing to worry about in the equity markets. the concern will be if the fixed income. >> any particular levels you are watching here? >> we kept bumping into the 100 day moving average became resistance on the s&p. 2075. the close right now is to the sell side. there are a few large buy orders. t-mobile is offsetting that imbalance. if you take out those high marks, they're for sale. >> always a pleasure. here are your news updates. former house speaker dennis

hastert pleading not guilty to federal financial and false statement charges. the judge set a $4,500 security bond and surrender of his passport as a condition of his pretrial release. he was greeted by a throng of media at the courthouse. president obama declaring his 5-year-old health care law is firmly established as the reality of health care in america. even as he awaits a supreme court ruling that could undermine it. he defended the health care overall during a speak to catholic health association in washington. >> three jurors in colorado theater shooting trial have been dismissed amid concern they violated orders not to talk about reports about the case. the issue came to light when a fourth juror told the judge she heard a juror talking about the trial on two previous occasions. mcdonald's hired former white house press secretary robert gibbs as its public relations chief. mcdonald's is trying to revive

its business after six straight quarters of same-store sales declines in the u.s. that's the cnbc news update. back to you. >> 27 minutes left to trade. could be a lower close this tuesday. up next the fallout at a major european bank as worries about greece continue. michelle caruso cabrera has that story ahead. stock markets around the world, a lot of the international markets posting hefty gains this year. the pros will discuss where you should invest your money now.

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welcome back. it's been a real stutter step for european markets. the last six trading sessions they lost 4%. the german dax down 0.5% today. greece despite its woes did manage a positive. judge, that goes in strange directions, the greek market. european officials, the commission in brussels dismissing a greek proposal aimed at avoiding a debt default

as a major european bank announces a major overhaul involving thousands of job cuts. here with more detail on both events our chief international correspondent michelle caruso cabrera. >> the cast week has been proposals and counterproposals when it comes to greek negotiations. today was another back and forth between greece and its creditors. we'll see if the greeks can come up with a plan with enough reforms to unlock more than 7 billion euros of much-needed bailout money. all this greece crisis occurring in the midst of more evidence how much european banks are still struggling. hsbc laying off tens of thousands to improve profitability. we heard about a shake-up at deutsche bank amid investor frustration. could the euro zone and its banking system hand al worst case scenario of a greek exit

amidst all this? i asked the italian finance minister. >> if there is an accident, there might be shock waves in the system. the system is much stronger than when it all started in 2010 and 2012. now we have a banking union and stronger institutions. more resources. above all, all the countries including their periphery countries are much stronger. the situation is better in terms of growth and financial vulnerabilities are gone. >> tomorrow we wait to hear any outcome decisive or not out of brussels. >> thank you. uncertainty about greece sent jitters through the market. the dow finding itself in negative territory for the year. >> the global picture continues to outperform the u.s. shenzhen in china doubled in value. the italian index up 18%.

the french cac up 14%. remember, you have to duct the move on the euro. is this a time to continue to invest overseas for growth? let's bring in bill speith. >> i'm bullish on equities in general as a general asset class. that includes the u.s. for me it's based on where we are in the economic cycle. we are in mid cycle edging closer to late cycle. that is not quite as favorable a position to be in.

in europe we are mid cycle but with more of a dash of early cycle on the backs of the q oefrn that's happening in europe right now. the u.s. trades at about 17 forward pe. germany is at 14 forward multiple. yet in the same stage of the cycle. >> the opportunity until lately did look like the ramp was significantly higher. why isn't europe the obvious trade here? why would you go with the u.s. instead? >> is the united states in mid cycle or late cycle from the economic recovery? the irony from that is we still have a housing depression and we are six years into the recovery. if you study economic history books, and there's never been an economic recovery that didn't include housing. the beauty of it is we don't know whether we are in the early

stages of an economic recovery. >> if you are right there's never been a text book that has a recovery potentially as long as the one we are in the middle of. >> that's right. if interest rates stay well below 4% for five to ten years, i would like to think what warren buffett said. if interest rates stayed down around where they are, stocks will go up a lot of next ten years, which is an all the boats float kind of thing. the dash for trash will continue. >> the first fear is this is the recovery we had this. the second fear is the fed because it moved so late went rates, bought all the gains forward and we had the gains for the recovery. >> we view this as a transition period. we are moving from liquidity-driven market, bouncing back from staring into the abyss, which is a lot of the biggest part of the gains the first four five years. then now, what's going to happen

to stock-picking organizations and index investors when clearly domestically-oriented housing, car buying marriages, household formation, when that starts to dominate prosperity we have some prosperity who will figure out what companies to own in that environment. >> we've got to continue the conversation. come back to us. bill smead and jurrien timer. >> we are heading for our fourth straight close below 18,000 on the dow. >> the s&p trying to stay positive on this session. tesla shareholder meeting starts in less than two hours. what elon musk could say. he seems to find something to say that will move the stock.

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big day for the energy complex today. west texas crude up to almost $60 a barrel.

the rest following through, not least on the china data. the data we have and the data still to come. >> speaking of energy tesla holding its annual shareholder meeting today. investors will be hanging on elon musk's every word. >> for more on what's at stake, let's bring in dan dolev. >> thank you. you may see them talk about some of the tax subsidy. that's been a big issue in recent weeks. seems to touch a nerve a little bit with elon. there's also a slight chance they'll talk about progress on the model x and very distant chance they'll talk about deliveries, but i expect that to be early july event. >> elon has indicated he spoke with sergio about fiat chrysler hasn't he? >> i don't know that. i don't think there is a chance

any deal would happen there. >> do you think tesla will wind up with one of the bigger car makers or is this company committed to be a stand-alone tesla giant that grows from various revenue streams? >> we've done a big survey of hundreds of customers. there is so much pent-up demand in western europe and the u.s. about 7% pent-up demand for tesla. without china even. i don't think there is in i need to go together with any other company in the near future. at least not the next five years because demand is so big. they've been ramping up production very fast. why do it if you don't need to do it? >> talk plea,000 the valuations and how you justify the buy rating where we are now. >> we look at 2020 ebitda number we discounted back three

years. we are become we think of ebitda growth could be about 60% for the next five years. if you think about it and put a 1 multiple on it discount back three years, we get to $350 price target. it's not that high of a multiple when you think about it that way. it's all about what they are going to do in the next five years. people like to look at the quarters. it's all about whether or not they can deliver these 500,000 cars by 2020. >> we've got to go. specifically with elon musk who tends to say something to capture everybody's attention, any inklings what direction he may go in tonight? >> i think there is going to be -- i don't know. if he talks about the tax subsidies, i wouldn't be surprised. i think it touched a nerve all the news and press around the

past few weeks. >> he did do quite a long interview with us last monday. we'll leave it there for now. let you get back to watching. dan dolev from jeffries as we await news from tes lachlt 12latesla. 3 mun 300 million to sell on the close. many u.s. companies trying to cash on growth in china. alibaba trying to cash on the u.s. jack ma's big pitch to american business coming up.

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most of the world is cutting interest rates. the u.s. they want to raise rates. >> are you worried about interest rates in this country? >> we think the fed wants to raise rates in the fall. reits were up earlier in the year. there is concern higher rates may take away appeal of reits. >> where do you see opportunity? >> i think steve is right on. if you look at economic data we had a great jobs report. you had ten-yoor high numbers in auto sales. we think fall is likely. investors in bonds should be prepared to look at quality in their portfolio and shortening up durations. it will be a challenging

environment for bonds. and look at germany raised their gdp estimates for 2015 and '16. u.s. investors are underweightn equities. >> there are a number of events in europe that are tricky. it's logical to underweight a lot of foreign investments. >> u.s. has been the right place to be the last two years. i think this change of direction in interest rates will be a sea change of direction in global markets. don't fight the fed has been an adage for investors for years. >> people talk about bubbles. real estate is coming up more and more lately. especially in urban areas in this country where cap rates are low. do you have concerns about froth in some of these markets? >> reits did well last year up 30% 2014. there has been fund-raising by

real estate private equity funds for real estate. in the gateway markets like new york city, san francisco, boston, you are seeing sovereign wealth funds come in. they are comfortable putting in investment. i'd say fundamentals are very strong. supply growth in the u.s. is only 1%. demand growth is about 2.5%. landlords can raise rents. we have good fundamentals, but had good price appreciation the last two years. >> we have to leave it there. have a nice evening. >> up next right back with the closing countdown. >> after the bell, a new class in cholesterol drugs. my feet felt so heavy at the end of the day. they used to get really tired. until i started gellin'. i got dr. scholl's massaging gel insoles. when they're in my shoes my feet and legs feel less tired. it's like walking on a wave dr. scholl's massaging gel insoles, i'm a believer! when a moment spontaneously turns romantic

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♪ ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck. two minutes to the end of the session here at the new york stock exchange. trade of the day, one of the trades of the day is oil. up 3% shy of $60 a barrel on west texas. i guess the trade of the week or certainly the latter half of the month has been the 10-year. today again you saw a sell-off in the treasury market as they make way for a lot of supply which is pushing the yield up. last week we gained about 30 basis points. we continued to make gains. interest rates for this economy, market interest rates are rising. albeit relatively low at 2.43%.

still for all the reasons we discuss all the time. bob pisani is here to count us to the close. >> i want to bring up a chart of lilly intraday. the stock is moving late in the day. there we go. look at that here. i don't know why, but i do understand they were presenting at a goldman sachs conference today. there may be something related to that. i'm going to make a few calls to get more information for you. the big story today is once again interest rates moving up a little bit here. the ten-year is 2.43% as i was coming up here. interest rate-sensitive session. reits, emerging markets weak utilities. all the interest rate sectors on the weak side. good news in this banks. etfs all hitting new highs today. bank stocks are the major winners today. they tend to do better in a

higher interest rate environment level. >> that's it. closing bell continues now with kelly evans live from the floor. welcome to "the closing bell." i'm kelly evans. seeing if we made bigger moves into the close. the dow and nasdaq going out with declines. dow giving up five points nasdaq giving up seven. s&p might manage a slight positive. procter and gamble the biggest gainer on the dow. consumer staples leading the way. tech was an underperformer on the session today. let's welcome today's panel. evan newmark and kayla and guy.

>> earlier we brought you this news story target announced a 7.7% increase to its dividend, as well as additional $5 billion to its share buyback program. we found this on target's website. that link is no longer active. we did print it out. target's spokesperson e-mailed courtney reagan with the following statement, "there has been no release from target. we are looking into bloomberg's report, but to reiterate, we have not released anything." we looked ourselves and found this particular news item with the press release and everything else attached with it. target is saying they never released this. it may have been inadvertent. we don't know. the formal statement is they have not put out any press release. there it is there. there has been no release from target. we are looking into the report. reiterate, we have not released

anything. we had it on our site here. a number of other news agencies cited it. we'll bring more details. target says they have not released any statement with regard to boosting their dividend or increasing share buyback. back to you. >> guy, what is an never to do? if you own shares of target or thinking about it no you this news is hanging out there with target saying they didn't put it out. at the same time you wonder that information came from somewhere. >> target struggled with all that hacking news about a year ago. time escapes me. in my opinion, target needs to recapture $80. the stock floundered the last couple of months. i still like it but if you want to trade it from the long side

let it recapture $80. then it breaks out to the up side again. >> no indication whether this was a hoax or accident. >> press releases don't happen just on a whim. they get passed along with multiple drafts. they are in the works for sometimes months at a time. it's unclear whether this was a press release this had been drafted that got posted inadvertently by some action other than the company's. or if this was completely fabricated as if to look like a target press release then posted. >> it's a strange thing to fabricate. if you are going to fabricate something, you want to go big like a merger or something like that. >> unless you are an investor. the biggest way to move shares is a buyback. >> all i'm saying is that kind of move is not going to be the kind of move you would want to get yourself in jail for. >> fair point. target shares a little bit

weaker after hours on all this. about 2%. let's get back to the markets. guy, obviously today there is much move on the top level of indexes. a lot happening below the surface. >> give evan credit. his bond call is finally coming to fruition. you can't be dogmatic in your views. what caught my eye in terms of the trading activity was continued weakness in transports. in terms of the airlines been looking for capitulation. today is the day delta airlines may have put in a bottom. it closed on changed on the day on two times normal volume. maybe finally you saw the capitulation in some of these

airlines. >> airlines? are you going near them? >> the airlines had an unbelievable run at the end of last year into the early part of this year. they are giving back some of it. a stock like southwest went from $18 or something like that to $45. now it's back down to $35. i'd be happier buying it at $18 again rather than $35. i don't think we are going to see a lot coming out of the stock market. the story will continue to be the bond market, whereas i think now there will be a lot of pension funds, endowments, big institutional players sitting down going are we at the front end of the end of the bond bull market? there is a big question if you are a fund manager. >> i think a lot of people today were focused on the three-year option. $24 billion three-year treasuries. the yield was supposed to be the highest in four years.

it ended up being fairly unspeck tack already from a demand standpoint. people are watching the bond story. the bond market seems to be correcting itself. and preparing itself for an eventual rate hike. they are posturing for it. >> if you wanted a jolt look no further than the report. it was 5.4 million job openings. this often doesn't get a lot of attention. it's released late. sometimes maybe it should be a marked indicator. >> it wasn't just the jolt report. there is a lot of anecdotal and data evidence about wage growth. the question you've got to ask yourself, what is the trend here? if the trend is higher -- it's been slow coming. nobody is looking at the recovery going, we are off to the races. it's a question of trends. these trends tend to have

staying power. if wages do start coming up through the report and other anecdotal evidence, it could be a sea change in the bond market. that has a lot of knock-on consequences. >> transports. crude oil spiked today. it's continuing to lose altitude. 8,307 is the level there. 9217 was the record closing high in december. >> if you look at transports overall, pick up on themes you spoke about here. the idea there are trends in the marketplace. if you look at the overall broader market with the s&p 500 and put it next to the dow jones transportation index, you'll see why some traders are worried what maybe could happen the next few weeks. it has to do whether transport stocks are validating some of that near high levels we've seen over the course of the past couple of weeks. if you look at the s&p 500 and dow transports you see this

divergence. s&p is the white line. orange line is dow jones transportation index. that divergence doesn't happen. you can see throughout the course of the past year-to-date they tracked relatively well. if you go with that, maybe the stock market overall is due to go down towards the level where transportation stocks are. saying transportation stocks maybe indicate where the market goes overall. we asked our data pashters in to take a look how many times you've seen a 5% plus pullback in dow jones transportation index and what happens to broader s&p 500. over the last ten years, the last decade a 5% plus drop in 30 days within that 30 day span like we've seen now, has happened 31 separate times. of those 31 times, again, the s&p has fallen 81% of the time following one of those moves to the down side with the dow jones transportation index. the average move for both indices, the s&p 500 and dow

jones transportation index, down by about 5%. we've seen this 31 times, 5% drop or more in 30 days. the s&p 500 falls four out of five times when it does happen. average move is down 5%. if you look at transports, s&p overall, traders are saying maybe there is no crystal ball. nobody knows exactly what is going to happen in the future but this is saying maybe there is a cautionary flag. >> fair enough. thank you so much. if flat is the new up these markets moving sideways at all against the back drop of the transports being 1,000 points off their highs is noteworthy. >> we've been talking about this with you for months. we mentioned that the transports underperformed since november if you look. something has to give. people have been saying and i'm one of those people. that something has to give for

many months. s&p until recently has been impervious to just about everything. the question is are the transports going to catch up to the s&p or vice versa? at this point, i'm more inclined to believe transports will catch up to the s&p because everything had to catch up to the s&p for the last five or six years. >> fair enough. i'll give you another hat tip today. you've been out of the market. judge, a lot of cash. >> 50% of my money is still in equities. for me to have 40% cash is a huge deal. >> now markets have flat lined. when do you put more of that money into work? >> i think the equity market looks better than the bond market. some of the rotation we are seeing healthy for the stock market. i'm not in a rush. >> kayla? >> we've been expecting that 5%

to 10% correction over a year. if people get out of the market for the summer not saying sell in may and go away but there are enough signs pointing to a summer slowdown possibly being that healthy kickback the market's been looking for. >> if you want a correction europe handed you one. guy, thank you so much. appreciate it. more of guy with the "fast money" crew at 5:00. they'll have the latest headlines from the event. the fda panel set to vote on a new type of cholesterol drug that could generate billions in sales. we'll have the results next. alibaba chair jack ma has a pitch for american businesses. come to china through alibaba. will that be a strategy that is a winner for the u.s. and e-commerce giant?

we showed these kids some items from a nearby store, whoa! but they didn't know they were all tobacco products. ooh this is cool. it smells like gum. yummy. this smells like strawberry. ooh, are these mints? with colorful packaging and fruit and candy flavors that kids love, who do you think tobacco companies are targeting? do we get to keep any? my name is mary molina and i'm a pipeline engineer for pg&e in the sacramento region.

new technology is being used in all facets of the company and what we do. pg&e is employing these technologies as an investment to the system for the long run. we're not just going to roll up and go home because we live here and we work here and we care about the work and we care about doing it right. we all have the same goals to make the system safe and to make the community safe. together, we're building a better california. welcome back. the fda minutes away from making a new ruling on cholesterol drugs. meg terrell with details. >> this could be a big deal. this is regeneron and sanofi

drugs. they are on their second discussion question of two before they take a vote. this really lowers the bad cholesterol in the blood. >> are those the ldl? >> the hdls are good ldls are bad. these for patients who don't get benefit from lipitor or can't tolerate lipitor or other statins. >> is it the case these new drugs would be significantly more expensive? >> yes. they've gone againgeneric. >> we've seen a version with the hepatitis c drugs. this is something that could potentially affect many more

americans depending how government and programs cover it. >> they are not quite as highly priced as hepatitis-c drugs but does affect a large number of patients. they are talking about whether you'll have to prove you tried other therapies to get reimbursed for these. >> let's bring in our health care analyst from cowan. we are moving through this process and about to find out. how transformative could it be if these cholesterol drugs are approved? >> we think they will be second line initially. these will be used for people who can't tolerate statins or aren't on goal with the statins. they are important therapies, but wouldn't change the standard of therapy either. >> do you have an estimate of the population on drugs like lipitor today? >> about 36 million people in the u.s. are eligible. we think initially 10% or 15%

will be true candidates. you are talking about 3 million to 5 million people. big population but not the majority. >> evan? >> i take statins. they are not super expensive. this is the way the pharmaceutical industry is supposed to work. nobody is going to invest all their money to develop new treatments if they are not going to get a return on their capital. there maybe too much hammering about the eventual cost. >> i wonder how 4 million people each year will afford $10,000 a year for this drug. how do you see the population that will require or qualify for these drugs and end up paying for them? >> we think these will be fully reimbursed by insurance. these are people with high levels of cholesterol who have high risk of heart attack or stroke or something bad happening.

>> is there anything in the panel that surprised you? the questions from the panel members or some of the discussion among the fda or outside advisors? one thing was whether the country would be incentivized to continue the cardiac companies if they approve it. >> we were surprised the fda had such questions on the use of cholesterol lowering as a surrogate without looking at heart attacks and strokes. most physicians are convinced if you lower cholesterol, you'll prevent people from having bad events. the fda wanted to hear the panel's opinion on that. >> we'll leave it there. >> who is the biggest single beneficiary if this is approved? >> amgen, whose drug will be reviewed tomorrow they are the whole owners. >> thanks, phil.

let me mention, you foe what works for ldls to raise them? >> are you giving medical advice? >> pistachios? >> your good or bad? >> my mom has high cholesterol. she started eating pistachios and the doctor told her it was the highest ldl he had seen. true story. shanghai composite up nearly 60% in 2015. we are awaiting a decision that could spark a bigger fire under this market. that's coming up. >> while china's market is surging, alibaba has been plunging down 16% this year. chairman jack ma has a new strategy to turn things around. lure u.s. businesses to access the chinese buyer. leave early go roam sleep in sleep out star gaze dream big wander more

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welcome back. alibaba ceo jack ma making a big pitch to u.s. businesses. writing an op-ed to convince u.s. entrepreneurs to sell products on the alibaba platform to reach chinese consumers. he took his case to the economic club of new york earlier this afternoon. >> my purpose coming here that we need more american products to china. we have hungry 100 million people coming to buy every day. this is why we come here. we not come here to compete. we come here to bring the small business. >> joraning us for more is

victor anthony. welcome. good to see you. >> thanks for having me. >> way love about this it's turning on its head what we thought about china being the workshop of the world selling to u.s. consumers. now the argument to the u.s. business is sell to the chinese consumer. this is going to work? >> yes. it makes sense. the pure math is very simple when you look at it. 650 million internet users are in china. that's going to grow to about a billion over the next ten years. rapid secular growth story exists there. e-commerce penetration rates sub10%. that will grow to the mid teens. there is a strong secular growth story for retail and retail over the internet. it makes sense to get global consumers over the world to sell to china. >> how much is a move of to some extent desperation? shares are down 15% this year. does alibaba need a lot more american businesses to get involved to support its business model? >> they do not. they can support that business

almost entirely through chinese consumers. he has aspirations to create more of a global platform. i think that's what he is talking about. >> what is the competitive advantage the u.s. small or medium size business has other than it's a big market and i can sell? i could sell a tube of toothpaste i could be rich. whatever it is. what is the competitive advantage? why would they buy a u.s.-made product than chinese product? >> in china, counterfeit is a huge problem. they would get authentic products from u.s. sellers. they would get brand name prod ubts which are probably difficult to get there. the chinese people when you talk to them they crave u.s.-based products. that's probably the biggest part. >> that is what jack ma said. he used the interesting examples of cherries. once farmers put it on alibaba, it triggered a taste and huge

demand. >> would you expect this to happen at the big business level. i understand why the chinese consumer wants an iphone or want french luxury goods. louis vuitton bags whatever. when it gets to the nuts and bolts, the stuff a small businessman provides in the u.s. it's hard to see what the chinese consumer is going for there. >> if you look at ebay, given access to 25 million businesses across the globe, if you look at years on ebay they sell rare items, hard to find items, unique items. a lot are new. >> do you think the chinese consumer will buy a babe ruth baseball card? >> there is fine art, fine wine memorabilia.

>> there is furniture. i think the resource question is interesting. it is food and energy. it's interesting to think alibaba as a platform for something nonretail specific. what do you think of the distribution platform for u.s. consumers to get resources like cherries to rural parts of china? do you think that is something they can scale? >> it's going to be difficult. more physical goods may be what they should pursue first. the world is becoming more globalized. that is what jack ma is speaking to. he wants to be at the center of that globalization, particularly when it happens on mobile devices. >> how about etsy? there are people on this panel who will go unnamed who are big

art artisnal shoppers. >> there is a problem with some counterfeit. it's not as big as ebay. ebay is a one-shot bill. 25 million small businesses across the globe that could leverage and sell into china. >> thank you, victor anthony. david faber will have much more in an exclusive interview with jack ma tomorrow on "power lunch" at 2:00 p.m. don't miss it. >> time for a cnbc news update with sharon epperson. >> a federal appeals court upheld key parts of texas strict anti-abortion law which could leave as few as seven abortion clinics in the state. it challenged some of the toughest restrictions including all abortion clinics employ

hospital-level operating standards. >> jeb bush arriving in berlin to kick off a european tour. he spoke at an economic conference hosted by germany's ruling christian democratic union. more than 340 million that was supposed to be rushed to drought-stricken california communities is sitting in government bank accounts. this more an year after law makers voted toite to upgrade outdated water systems. state officials concede the slow pace of spending which was meant to ensure the money was used wisely. last week we told but a mississippi school superintendent who pressed charges for disturbing the peace against people for cheering at a high school graduation. it brought a lot of national attention. today he dropped the charges. back to you. >> thank you so much. up next the tsa under fire. should the agency responsible for your safety at airports be privatized? >> google developing a self-driving car. could they be planning to get into the auto insurance

business? we'll talk about that. [ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. checking out the listing on zillow i sent you? yeah, i like it. this place has a great backyard. i can't believe we're finally doing this. all of this... stacey, benjamin... this is daniel. you're not just looking for a house. you're looking for a place for your life to happen. zillow.

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dow dropped 2 1/2. oil higher on the session. let's look at the 10-year interest rate. that getting a lot of interest after that job openings report we talked about. generally this trend moving higher 2.43%. crude oil a quick look there. pressure on the dow transports has that index about 1,000 points below its closing high. wti crude up almost 4% over $60. bomb scarce leading to evacuations of two iconic federal buildings at the u.s. capitol. >> nervous moments here in washington, d.c. today. first up on capitol hill this is in the senate building. about 12:17 p.m. a threat is called onto capitol police. senators adjourn the hearing, immediately evacuate the room and evacuated a large portion of the building.

you see the people leaving that room immediately. that was viewed as false. a little later at about 2:08 p.m., we saw a similar incident at the white house. a bomb threat called in to the white house. white house press secretary josh earnest interrupted in the midful his press briefing televised nationally and around the world. officials at the white house saying this threat was targeted specifically the white house press briefing room itself and not the rest of the white house complex. they said the president was in the white house complex at the time but they said he was not evacuated. nervous moments here. both these incidents seem to have amounted into nothing at this point. >> thank you. we are following both of those. in addition to the tsa hearing today, reports raised questions how safe airline travel is. one revealed tsa's failure to

detect explosions in 57 out of 70 tests. 73 workers were found to have links to terrorist groups. welcome to you both. tony, i love the way you put this. you all this security theater, an illusion of security but no real security. >> that's right. it's a failure at every level. failure of senior management failure of middle management failure of the training program, procuring equipment, just about everything is going wrong there. >> is it merely luck we haven't had a more serious incident at this point? >> i think it is. i think they do have some effective screening procedures. as a whole, the organization fails audit after audit. simply needs new leadership new executive management new training program. better screening in terms of the personnel they are hiring. just starting from the

beginning. >> should it go further should tsa be privatized? what do you hear from the airline space? >> not a lot of evidence one model in terms of privatized security versus government-run security is necessarily better in terms of security. if anything, more a customer service issue. you go to airports where the lines are shorter because it's in the contractor's contract you can't let people wait more than ten minutes in line. i was at a meeting of airline ceos from all over the world. a lot said the tsa in many ways is the envy of the world. has been a leader since 9/11. more going right than wrong. the bottom line there hasn't been a 9/11 since 9/11 and that is not because nobody tried. more than just luck. >> i thought the airline shoe

bomber was pure luck the guy didn't get the shoe off. i'm not trying to be overly negative. as someone who flies, you don't go a tsa checkpoint in the new york metropolitan area and feel a sense of confidence when you go through there. it does not do what it is supposed to do which is to give that sense of confidence. >> he is absolutely right. we travel, my team and i travel with remarkable equipment, night vision equipment, two-way radios. all sorts of confidential and speculative stuff. i haven't been stopped by tsa. they give as suspicious look i give a wink and nod, they give us the okay and we walk through. >> in addition to the culture and leadership as you say, that needs to be changed what about the process and near term can

change? a lot of these processes were put into place a decade or longer ago. a lot of them aren't fitting to modern technology or modern processes. all of us have anecdotes of going to the airport and seeing something that doesn't look quite right we have tsa precheck. i saw the other day, the line was too long. half the regular line of people not registered were ushered into the precheck line. that leads you to believe maybe the stuff you were doing in the regular line doesn't matter. >> there are countless studies that show a repetitive task at a boring job doing the same thing over and over again, staring at a screen over and over again -- >> this is hit to go close to home. >> it's a little more interesting here and fascinating background. you need to celebrity the kind of person. there needs to be psychological screening so you get the kind of person who can be effective in

this kind of environment. you need repetitive training. most importantly, you need daily audits at different locations. with accountability following those audits with regard to the grades they receive. >> we'll leave it there. self-driving cars will not only revolutionize driving, but the auto industry. google is in the middle of this. we'll look at the tech giant's move into auto insurance. shut down of corinthian colleges left many in a lurch and in debt. pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care...

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here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys!

i love this times of year. for all the confidence you need. td ameritrade. you got this. welcome back. we have more on this breaking news from target. courtney reagan, what can you tell us? >> i have been speaking with a source familiar with the matter that tells me target is holding a board meeting this evening. a web link was inadvertently posted ahead of the meeting. separately as we reported earlier, target tells us they did not release any news about a dividend or share buyback. and if there is news to share, they will give it us to. >> target did indicate a link was posted inadvertently by target? >> a source close to the matter indicated a board meeting was

happening tonight. target says that there was no link that was posted. if there is news to share, they will give it us to. >> thank you so much. we'll bring you more if we get it on that interesting story. >> we have a news alert on oil inventories. >> the american petroleum institute out with its weekly status report on crude. it reported that crude drew down an inventory 6.9 million barrels. that is a bullish number. gasoline down 3.9 million barrels. actually, you can see here crude after the close retreated to about $60. now we are trading at about $60.52. a big pop on this report. we've seen discrepancies here. the api is a trade association. it's targeting its members when it does these surveys. the doe, obviously a broader report. last week the ap i-reported a build in inventories. doe said we had a draw.

you could see strepdiscrepancy tomorrow. see where u.s. production stands tomorrow. $60.52 is where wti is trading now. >> thank you. google launching google compare in the u.s. it helps users find and compare auto insurance rates. google could become the insurance provider for its own driverless cars down the road. that's what valerie rayburn suggests in an op-ed. that is sparking our interest. digging how autonomous cars will change the industry. joining us is valerie rayburn. welcome. thanks for being here. was a fascinating piece. let's begin with the fact you do see google becoming the car maker of the future is that right? >> yes. thank you, kelly. i do. what i see with google when i look at their history is a

company that is clearly interested in reinventing the customer experience. they did this initially when they introduced their website. it clearly had a different look than any of the other previous websites. now they are designing and building cars that not only are driverless but also have no steering wheel. with google compare what they are doing is not only in the short term making it easier for consumers to shop for insurance, but placing themselves at an intersection of two critical data points. the customers looking for insurance are providing information, also the insurers trying to win that insurance are providing rating information. in the next five years until a point when they are ready to commercially release their driverless vehicles, they will have mountains of data to use to draw conclusions on what the pricing should be for a driverless vehicle and build that into the price of the car. >> you say, again the whole insurance industry is watching

this like a hawk. it's not clear whether google could facilitate better greater sales of insurance products or become the distributor itself. you say commercial insurers could be muscled out of the margaret if market if google gets into the business of management. is this google's long-term plan? >> not specifically. it's my own perception of where i see the market headed. i see them as potentially being a huge disruptor because the risk associated with the driverless car are so much lower than they are with today's traditional vehicles. it's a less costly prospect for them. they could easily build it into the price of the car. therefore, the insurer -- excuse me the customer no longer has to shop for insurance. if a customer is looking for a better insurance experience, they would get it through the google vehicle. >> something the whole industry is watching.

thank you for your insight. you can check out more on "the spark" at cnbc.com/the spark. >> i love that graphic. >> jazzy, huh? >> plus the driverless cars. that is your new pet peeve. >> pet peeve? >> that and pistachio nuts. >> transformative. corinthian college, if students believe they were misled by their students loans, relief may be on the way. bingo parlors are popular places. imagine the concept married to the stock market. in china, it's a reality. changes could impact chinese investors and global markets.

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welcome back. $28,400, the average student loan debt for 70% of graduates in 2013 who attended public and nonprofit colleges. the u.s. government announcing plans to forgive loan debt of students who attended corinthian colleges. as unemployment continues rising, is this a sign of a

bigger problem to come? scott joins us here at post nine. this story is troubling. >> it is and it isn't. when we first started covering this issue five years ago with our documentary "price of admission," the student loan total debt was approaching a trillion dollars. now it's well over that. and the issue, the big issue was these for-profit colleges. the corinthians of the world. that were selling a bill of goods to students saying that we're going to get you a job and getting them to sign up for financial aid. and most of the financial aid and most of the defaults are from for-profit colleges. now, corinthian shut down because of the crackdown on these institutions. so yes, the taxpayer's going to be on the hook for these loans, these federally guaranteed loans, a lot of them that now are going to be forgiven but it really is part of getting some of this out of the whole for-profit situation that was really messing things up.

>> it's a fair point. but scott, it's so circular in this case. federal government shuts down corinthian, then it says, well you made promises to these students so, we're going to forgive the debt. obviously that's a taxpayer burden at the end of the story. it's just an interesting precedent, especially if they choose in this case to hang it on the fact that corinthian made false promises. i'm sure it won't take that much of a stretch to argue that other colleges have done the same. >> well maybe not. and as far as being a precedent, look, that was always the law. if there's fraud, if a school shuts down you can get your loan forgiven or you can transfer that credit the money you that borrowed to another institution, and all of that's available. corinthian, it's fair to say, was selling students a bill of goods. and the law is supposed to protect them from that. and that may be what's going on. but again, as part of weeding out this issue, the taxpayers are going to be on the hook in the short term. >> evan? >> scott, is this a bit like fannie and freddie and the mortgages? it smells -- all this stuff, you

know, in effect fannie and freddie were vouching that these were going to be covered by the federal government. it sounds like by licensing corinthian the federal government basically said we're vouching for corinthian and so now we're vouching for the money? i mean it sounds like that. >> well there's similarities but there are differences. the issue obviously with the housing crisis was the securitization of debt. that was going on in the student loan market not as much as it used to although it's coming back. these loans are guaranteed. you can't default on a student loan like you can on a mortgage. now, if that changes, if a lot of debt is forgiven if it changes where you can default on a student loan then there could be an issue for the taxpayer. but a lot of this issue is now getting better actually. as frientdfrightening as all this may seem where these students have been shut out and have to go elsewhere for education this maybe part of the cure. >> scott, thank you for being here. there's more information over on cnbc.com. we may be minutes away from some game-changing news on china.

the china's stock market already getting a boost if msci one of the world's leading emerging markets etfs adds chinese companies traded in shanghai to its fund. the decision to add those shares is just minutes away. and be sure to tune in to cnbc tomorrow. david faber will have much more on this in an exclusive interview with alibaba's jack ma on "power lunch" at 2:00 p.m. don't miss it. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

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that fda youlths panel of advisers just voting on the regeneron sanofi cholesterol drug voting 14-3. right now they are discussing how broadly that should apply, which patient populations that should apply to so that will be very, very keefe for how regeneron performs and potentially amgen as it goes into its advisory committee tomorrow. 14-3 positive vote though. back to you, kelly. >> meg, thank you very much. despite disappointing economic data the china stock market is red hot and it could get an even bigger boost when msci, one of the world's largest engineering market etfs adds chinese companies traded in shanghai to its fund. the decision to add those shares will be announced actually in

just a few minutes' time. we're going to talk about it here in just a moment. "fast money's" melissa lee joining us to discuss, melissa. great to see you. and listen there are people saying china's stock market could, quote unquote, explode on wednesday if this happens. >> it could. although, kelly, as we know the decision as to whether or not it would be included that had been out sort of in terms of in the market, knowing the decision was coming for the past couple of weeks. so the explosion may not happen right away because of that and also because the inclusion of these stocks will happen over the course of years. it won't happen all at once. you could imagine if we go from 25% now in the emerging markets index to what could be up to 40%, that's not going to happen overnight. it's going to happen overt course of years so these funds can actually buy in an orderly fashion. >> right. because buys we're already talking about a market that's seen its valuation rise significantly but i guess a lot of investors if you're indexing don't have a choice. if they increase the weighting you have to -- >> they do it over time though. i think the operative word

should be implodes not explodes. because i think if the shanghai stock market's going anyway, you know, you never can tell when you're in one of these bubbles. but i just read some story in the internet about an umbrella company that was up fivefold. some crazy story like this. >> if you read it on the internet, it must be right. >> no but i take your point. >> you're getting all this anecdotal data about how crazy this thing is. and my gut feel is it's crazy. who knows when it implodes. but it will. >> kayla. >> has been something that's come up every year for the last few years, but what's different about this year's decision kelly, is that actually last week vanguard decided to add china a shares to its emerging fund, it's a 69 70 billion-dollar fund. but there's a sense in the market that could legitimize the move and if vanguard which is such a huge and well-regarded money manager, does that then maybe msci should follow too. >> it does look like if you're somebody who wants to bet at least on fund flows that a lot of them are going to point in a chinese direction as all of this moves through. >> absolutely.

and i think, kelly, what will be more interesting as well to watch is keep in mind that to short shanghai is very difficult. the borrow out there is very tight. in fact, securities regulators in china just recently as recently as april or may, said to mutual funds, you can start lending your shares to be borrowed to use in shorts. and so that tight liquidity in that market, it's going to be interesting to see once it gets included into a very very liquid index what that impact will be on the underlyings. >> fair point. and meanwhile evan if you're looking at the market with a skeptical eye toward it fair enough -- >> shanghai. >> yeah. but you're not impelled to do anything about it. you don't have to short, it you don't have to get involved so, you're able to be on the sidelines. >> yeah. i own this vanguard fund that kayla mentioned, and even that fund i believe they leg into the position over a series of years. so if you're expecting, you know, a huge kind of one-time gain i don't think it will happen that way. >> kayla? >> i like that enowns this fund

despite what he's saying about shanghai for the last few minutes. >> what are you going to do? >> a lot of contradictions in this world, kelly. >> for a lot of people the question is going to be what are they going to do? but we'll leave that hanging for you guys. that does it for us on "closing bell." take it way. >> thanks kelly. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee. pete najarian dan nathan karen finerman and guy adami. one area of the market is spelling trouble for the rally. we will tell you what it is and how you can protect yourself. but first we've got breaking news on three major stories happening right now. phil lebeau is covering tesla's shareholder meeting which kicked off just moments ago. bob pisani is digging through a decision that could be one of the biggest ever for chinese stocks. and julia boor zinn is gearing up for the netflix shareholder meeting where the company could vote for a groundbreaking stock split. we start, though with phil lebeau who is monitoring the tesla meeting as it is getting under way. phil. >> and melissa, this next