know exactly what he wants. >> but he is the largest personal shareholder. and i was looking. i own the stock through my 529 fund. >> oh do you? >> which is american funds group fund. anyh anyhow, that is how you own stuff sometimes you don't even know. thanks for watching power lunch everybody. ♪ good pick. welcome to the "closing bell" everybody. i'm kelly evans. >> and i'm bill griffith. the new beige book survey. ooh it has more than half of the feds regions seeing modest growth right now. we'll talk about the impact this could have on the rate hike decision coming up in a couple of weeks here. >> and elon musk's surprise the owners of the upcoming tesla model 3. using the super chargers may not come free. how that could impact the number of pre orders coming up. >> just ahead. google and amazon making

headlines at that code conference in california today. find out why jeff bezos of amazon says winning golden globes helps sell more shoes. and sheryl sandberg joins us. stay tuned for that and facebook's ceo. and steve leishman now. on whether the fed is givie ini clues on the next rate hike. >> u.s. is youing modestly. and the --. the beige book did stay tagt labor markets were seen widely. and have seen wages pick up. other sectors show real estate was stronger and looks like manufacturing is doing a little better up at least from recent lows and today's ism manufacturing suggesting the

same thing. the beige book said consumer spending increased moderately throughout districts. points toon economy that sounds like it is growing around 2%. but some say it is strong enough for the fed to hike over at jeffries they put out an immediate commentary that said the reports --. not a whole lot of evidence to do. real data tomorrow. the adp delayed because of the holiday tomorrow morning. and jobs and services on friday. overall jobs look of course are 170 as expectations continue to ratchet down. >> what do you think? it seems to me the one headline that jumps out to me, the non economist, would be that wage growth report they put. that is something they are watching very carefully. >> they are. and i think you are right to point that out bill. you have been watching longer than i and that is the kind of thing they would be looking at.

it doesn't say they have to raise quick or embark on some, you know, steep increase in the fed funds rate. but it does say wages are picking up. it is something we were waiting for. it underpins the case for a rate hike. so again we have that june or july debate but i'm not sure there is much debate whether or not they ought to go some time in those two months. >> any patchy? >> some continues to exhibit weakness in oil and gas. but overall the economy continues to add jobs despite what they have lost in the oil. but yes it hits individual districts and sectors very hard. the economy seems to be wti stang. as you know and consumer sending is okay and we've seen it pick up and part of what's helping the outlook for better growth.

>> we'll see if it's sustainable. thanks steve. kim forest, steve grasso is somewhere on the floor of no new york stock exchange. and rick santelli in chicago. they say the stock market should not fear the raising of rates because history suggests the stock market performs well when they raise rates do you think that will happen this time around. >> i think history tells us usually the fed raises interest rates in the face of better global growth, better growth at home and inflation. we don't have any of those three right now. so i think that is the scare. but i will tell you bill. what do people always fear? they sell yield in the face of a fed. december everybody was worried about emerging markets, selling utilities. utilities rallied 14% from that

rate hike. gold rallied. gdx. the miners rallied. the dollar actually weakened. be careful about what you think. look at the facts. >> workdays. better. top and bottom line. then you have the sales force bid for demand wear. what do you draw from sales force's bid here. would you be look at at this part of software to invest? >> sure. i think it is probably a better time for a investor to take a look at it. sales force from anybody i know that is a salesperson and uses the product they absolutely love it. and, you know, that speaks a lot for the product. because salespeople generally don't like to use tools. they like to sell. so it enables their work, you know, and makes them a better

salesperson. they love it. but i think it is interesting that hr is picking up. or hr-focused software is picking up. and i think companies are looking to manage their workforces better in an era of rising wages, does about that make sense? >> rick did you see anything in the beige book that you feel the hawks can hang their hat on right now? >> i'm pretty much in the rorschach camp on that. if the fed wants to tighten, they will find reasons. if they don't want to tighten they will find ample reasons not to. so to me there is no way to divine which way that is going to go. but i thought the yield curve was kind of fascinating today bill. because in your question to steve and the answer i totally agree. there was a time, you know, when we were chugging along in a strong economy. the long end, seeing all the strong fundamentals of the strong economy would ratchet rates up and at some point of course the party would have to

end or the punch bowl pulled away. so the short end would start to flatten as the fed talked about raising rates. all of those days are gone. kind of a stockholm syndrome market. i think many ways they are held hostage by policy and now the markets look to the feds. i'm not sure that relationship emerges but i'll tell you the fed things the markets aren't ready for a tightening. but the market's been conditioned by the fed to think that. it is a strange relationship. i'm not sure when we are going to go. i'm still saying we're back at square one. at 37 basis points with regard to the rate it is too low in ar 2% economy. we want more. but we might be in this quasi 2% for a while. so we're kind after back to the future with regard to what the fed is going to do.

>> a name people are watching is boeing. if -- kim, you like boeing here. why? >> for a couple of reasons. their book to bill this year is probably going on the under one. but do you care they have a backlog that stretches into the next decade? so that is one reason you might look at it if you were a long-term investor. there's been news out on a government refuelling plane program that says it's been kicked out six months before another -- or the first delivery. do you really care if you are a long-term investor? no. use this as an opening. so that is why we like the name. >> are you worried? you know, the journal editorial said there's basically been a bubble in this space. do you think that's been true? is there a risk we're coming on the other side of that? >> well i think if you are -- if your reason for owning this was

fuel prices are going to drive people into new planes, then maybe. but i think it is also the cost of running your fleet. and these new planes can demonstrate that that is a lower cost -- total cost of ownership. the rates are still low enough. people don't buy these planes. they lease them. and those rates are good enough. so we still think that the backlog is very safe looking on into the future. >> before we go steve, which number is more important, $50 oil or sp2100? >> i'll take the cop out. they are probably equally important because they are both right here. we're walking into a wall of resistance in both. you are never short a dull market. it's been very illiquid. the bulls have had time on their side. seems like the markets are held

hostage by both like rick said. i wouldn't be putting money to work until we reach new highs. >> interesting to watch the s&p test that 2100 marks. >> it's been flirting for a while here. >> up just a point. the dow is barely higher. moving up out of negative territory most of the session today. >> nike and under armour are of course once darlings of wall street but it's been a rough couple of months for the athletic apparel makers. we'll talk about whether this is a buying opportunity for these beaten down stocks or not. >> and amazon ceo jeff bezos and sin dar pichai making comments in california. and bezos giving sight into the company's content strategy. >> globe, you know, it helps us sell more shoes. >> of course it does. golden globe.

let's take a break. we'll be right back after this.

welcome back. keeping an eye on markets here after a healthy volume day yesterday. and by the way if you thought the stock moves were interesting. credit markets we came back and had one of the biggest issuance days. about $17 billion with. so something to keep an eye on with in terms of the markets. >> and hardly ho hum considering it opened down 122 points this morning so the dow has had a good comeback today. >> and demand is among the biggest gainers on wall street today after being acquired by sales force for $2.8 billion. 56% premium to the tuesday closing price.

sforseo says will help expand the e-commerce business. >> google ceo's sundar pichai just hatching up a big speech in the code conference. >> sundar talked about video, about hardware. but a big theme of this conference is artificial intelligence. and pichai talked about how that is an extension of google's legacy in search. >> in some ways we think of this as each user being their own individual google. and i think how we answer and respond to, i don't know, a 10-year-old living in indonesia with like you asking a question. i think it is not -- we want this to be user centric. and i think part of building a

smarter system over time is to be able to understand users and with that assistant for them. that friend for them. skmi think it is going to take us time to figure this out. >> google's interested in getting more and more information about what people want to know in their day to day lives. even if they are not entering it directly into a search bar. also talked about nexus devices saying google is going to take more hand in how those tablets or phones, how they are designed. whether they are still going to work through partners. also emphasizing video. people increasingly want information through video not just text. so google trying to build on the strengths and work the angles over time. >> and it is interesting to think about how they now might be looking to amazon's alexa. which kind of came out of nowhere and became a standard almost for a.i. and voice recognition technology. >> google, yes is coming out

with its competitor. it is not going to be open, at least not initially the same way amazon's is. i was talking to one of the executives here at amazon just about when amazon knew that was a success. and he said within about a week after they released it, the amount of demand they saw and the private release and the way people were trying to hack it too do more. they quick expanded the vision for it and very happy with the way it is growing. >> they know it is a success when people are immediately trying to hack it. i love that. jefb wf bezos was there as well. listen. >> amazon studios is now making original content for prime video and that is going extraordinarily well. we've got multiple golden globe winning kod comedies.

from a business point we get to monetize that content in a very unusual way. when we wane golden globe, it helps us sell more shoes and it does that in a very direct way. when people -- if you look at prime members, they buy more than amazon than non prime members and one of the reasons they do that is once they have paid their annual fee they are looking to see how they can get more value out of the program. >> the idea of amazon for many years was i could buy it online and it would delivered to me. sometimes very quick. i -- personally i'm utterly astonished sometimes this box shows up on sunday and i only bought it saturday at 7:00. and it's there on sunday. >> yeah. >> pretty cool. >> yeah. >> but that's not your truck. that is usps or whatever. >> yeah. in the u.s. we're going a lot of the last part of the delivery.

we're not -- >> trying to take fedex out of business and. >> well always better prices. better prices on transportation would be acceptable to us. but what i'm really saying is we are driven to supplement the capacity. we'll take all the capacity we can and we still need to supplement it. we're growing our business with ups, and with u.s. postal service. and still we're supplementing it. >> a lot to work with there. are they trying to put ups and fedex out of business? >> no i don't think they are bill, but i think what is happening is they are at this point supplementing capacity but they are also putting a lid on

the prices i this i some of these competitors can charge. if amazon figures how to do this capacity delivery sufficiently, they know how much it should cost and how much capacity they should have. who knows if they eventually decide to take it over. and the other piece about the shoes and the movie, it works the other way too bezos was saying. when they sell more shoes and people want prime because of that, they are more likely to check out the movies and tv shows that amazon has in the libra library. so faz cycle. >> are the competitors going to have to assemble to some conglomerate rival to amazon or are they going to be the only ones able to delivery across all of these facets of our lives. >> at the root of that is data. what amazon has always had from the beginning was information about exactly what people are shopping for. not just what they are buy bug looking at on the site and they have been matching it to figure

out what people might want. so amazon has a brought selection and knows how things e fit together. even if competitors develop, they have to blend their data to be in such a way that they can be as smart as amazon about those things. there are those trying to do it in ride sharing. didi is trying versus uber and lyft and grab. but data is really the competitive advantage. the coin of the realm in this new era. off the top of the head you wouldn't think a movie or rinltal tv show is going to help you sell shoes unless you have the data that allows you to go for it strategically in that way. >> felt like we were entering a golden age of technology. i thought we were b already there. but he thinks we're just entering that now. >> bezos said he went on this great vacation with his wife and in-laws. and joked he actually gets along with his in-laws. had a good time but he still ran back into the office.

so some of that speaks to his general enthusiasm for things he's working on. he always thinks it is early innings. ever hear a tech executive say well we're in the ninth inning, i'm just kind of phoning it in at this point. they are not going to be in that seat for long. >> great stuff from the code conference. and more in the next hour when we're joined by facebook coo sheryl sandberg. and the company's chief technology officer. >> and elon musk telling model 3 owners that it may not get access to its super charging network. is this a little zinger now for people willing to pony up a thousand dollars for the cheaper newer model of the tesla? >> i'm not sure how much of a

zinger it is. putting down a thousand dollars for a $35 thousand base vehicle. and i'll be stunned if anybody pays just 35,000 dollars fur that people. and not getting the electricity to charge it up for free. i thought if i was -- >> are they asking for cash back? >> that is the interesting thing. they have been very cautious about giving out numbers in terms of how many people have returned their deposits. they did say the last time they gave us an update that there was i any like 12,000 who decided i put down a deposit and then took it back. the total number is still like 373,000 vehicles. you have 18 months minimum before they start rolling out. >> how much is it to use would have been these chargers?

>> it is not a cost. the super charger network is part of the deal. when you buy a model s you can use the super charger. or a model x you can go and you can use it. what elon musk is saying is you have to upgrade your model 3 to have access to the super charging component of it. at the end of the day that is it. doesn't mean your can't recharge your feel. it just won't go as fast. that is what super charging is all about. when you go and super charge your vehicle, you are making -- and i'd have to look at the latest numbers. i they 50% charge in 20, 25 minutes. as a slightly slower rate. >> so it's yet to be determined whether they are going to charge people approximate for super charger piece. >> you would get upgraded software. if you came and said i want this but i want the capacity to do super charger. they would say okay. and they haven't established the pricing yet. it's no different than any other business. they realize what people will

want. >> you sound like you are shopping. >> i pass by one of these charging stations and i see teslas in and i guess i'm too embarrassed to stop and ask. >> premium and unleaded electricity. >> all the same. and i have that sales number in a little bit. >> you promise? >> i promise. >> the accountants in the back room. let me know. the dow up 18 after having been down 122 on the open this morning. theranos founder elizabeth holmes had a net worth of $4.5 billion a year ago. you won't believe what forbes says she's worth now after investigations about whether she misled investors about the company's technology. and reinventing a brand. why is another retailer trying the exact same strategy as one

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wealth management, at charles schwab. welcome back. we have that breaking news on auto sales now. >> a little better than expected. 17.45 million is a t rate of sales. not the overall sales. the rate of sales for the month of may. earlier general manager am and saying 17.1, maybe.

17.45 is the pace of auto sales for the actually overall auto sales for the last five years. 17.5 is where we finished last year. this means in the first four, five months of this year, i haven't done the collations but most say the pace is going to be around 17.2, 17.3. not a huge fall off from 17.5. still strong. >> why is it at even the best of times seems like people are braced for the worst of times? is it not just about the cycle anymore? about the existential threat. >> it is. everybody is looking around saying i buy a car now or suv or truck? what's it going to be like in four years or five years? >> back and drive a 2011 vehicle right now. you would look around and go whoa it doesn't have a lot of stuff we have now. >> it's true.

17.45 million is the sales pace there. alleviating some concerns from this morning. >> you are looking for awe new car aren't you? i can tell. let's check the movers on wall street. whole foods shares surging after crit swiss upgraded the price to neutral. whole foods shares have lost nearly half their value since closing at a record high way back in october of 2013. in the meantime shares of luxury goods maker michael kors slightly higher after reporting better than expected profit and quarterly revenue helping to off set weak guidance for the first quarter because of rising expenses. and lands end. >> they have set upon a new course since bringing in a new ceo last year and that course appears to be targeting a very different breed of shopper more

traditionally associated with lands end. let's get to court courtney reagan with more. >> lands end posting another disappointing quarter. the seventh straight quarter of negative comps. it's just been just two years since spun off from sears. -- many of her rebranding efforts so far appeared to be targeting a more fashion forward shopper. there was that flashy pop up shop on 5th avenue during the holiday season. and the can vags by lands end launch in april. there is a membership option too for $50 a year shoppers get free shipping and lower prices. the margin looks very nice.

-- far from what shoppers think of when they think lands end. certainly the brand needs a boost but the is the fashion way the right one? you can see it looks quite different than what you are used to so is this what j.c. penney did. looking for a new customer, hoping to fire the one it has. while canvas is still small piece of the business, the initial response has been good. >> i can feel for the typical lands end customer being left out here. i can remember years ago. i used to shop at abercrombie & fitch. this was your father's abercrombie & fitch. there was one on 5th avenue. and i'd go there once or twice a year. it was a preppy kind of store

for want of a better term. >> -- a big brought iron lamp with grizzly wears and a armchair. nothing like the brand today. >> so i walked into the store one day expecting to buy more polo shirts and khakis and. and i didn't recognize. i had to go back outside and look at the name. they changed just like that. and i suspect that is what lands end is having. and they should think about what's happened to abercrombie & fitch. >> and abercrombie & fitch changed from what you are talking about and now have changed in a different way. they are getting away are the logos. they have introduced black. so, you know, change is necessary to some extent but lands end is a company that's been around for a long time and everyone sort of knows what that brand stands for. repositioning a brand is no small feat. certainly something needs to be done because the financials have been cairo but i wonder if this is is it.

the stuff looks great but again do you go to lands end look for a red suede stiletto or a dress that's 175 dollars that you could wear to a wedding as opposed to, you know, fishing. >> where did you get those she r shoes? lands end. here is sue herrera. >> go people shot dead in a shooting on the ucla campus. the shooting took place in the engineering build where there was a huge police and s.w.a.t. team present. they are now saying it was a murder suicide. and no suspects on the loose and the campus is safe. and recalling more more air bags. according to the senate report at least four outmakers are selling new vehicles that have the takata air bag.

xi jinping meeting in beijing amid a downturn of relations between the two countries following north korea's refusal to curb its missile launches and nuclear test. >> and french president hollande, angela merkel and more took a trip in the longest and deepest rail tunnel. the goddard tunnel took 17 years to build and $12 billion. but it looks very elegant. that is the news at this hour. >> europe's big dig as it were. >> it is. thaz that is exactly right shsmt. >> thanks sue. >> 25 minutes to go here. the crude. the market has taking cues there. we had some rumors under a opec. different things to keep on eye on. the rebate strikes one thing to.

>> up next the floor traders here to get his take on the state of the markets on this first trading day of june. >> and ever core partners founder roger altman joins me and he says conventional wisdom for the markets is more often wrong than right. he'll explain why coming up. [beekeeper] from bees to business expenses,

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about how you want things to be. go long™. about three minutes left in the trading session here. joining me is allen valdez. i ask you the same, which number is more important? 2100 on the s&p? or $50 on oil? >> i'd like to see $50 on oil. i'd like to see us hit it or go a little bit above it and that will get the s&p above 2100. >> you think oil is leading stocks again. >> i really do. especially through the dry season. should be coming above $50 right now. >> are we destined to go higher here? you have been in this market. >> i think the market is going to get a little better here. all the underlying things are

better today. overall things are better. i'm not on the class why it is going to fall apart. i think we'll see a raise come the latest july, maybe june. we have to wait till monday and see. but i think that is going to really upset the markets. >> wondering what would get us above 2100. oil at 50 he says. dow up about 19 now. s&p up 3. nasdaq up 8. and still to come, an exclusive interview with facebook's coo. and nike getting downgraded by two firms today. and under armour rp warning the bankruptcy could hurt the -- sales. and roup, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other

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welcome back. have a look at shares of lulu lem p. higher after criticizism of the company management. earlier laid out a case for making changes. >> vision is what's really missing. if you see what lulu lemon is doing they are just rolling out stores. but they are not mohring into

the anything new.rphing into the anything new. they have technology. they say they are doing innovation. but i might be the number one person in the world to understand that and i don't see it anywhere. >> other news rippling through the fitness sector. nike has been downgraded. and under armour cut its sales outlook citing the bankruptcy of sports authority. hit pretty hard there. and we're wondering has the bloom fallen off the rose for the companies and which is the better buy now? let's talk about it. >> joining us to debate. welcome and thanks both for joining us. liz, why do you like under armour here. >> they have significantly more opportunity. there is a tremendous amount of white space for them. channels they are not in.

they are segmenting their business for the first time. and i also think that they are connecting with millennials in a way that is rare in branded consumer products these days. they are leading with technology and i think some of the moves they have made are very smart. >> david, nike the larger but more mature company. why do you still like this one. >> i don't disagree with anything she said. i think you have to look at what's already baked into the stock price. under armour stock price 25% compound growth and profits for 15 years --. that's a lot bigger than what nike is today. you know, i think under armour is a great company i just think the stock is priced already for more than perfection but enormous amount of growth. the risk/reward on nike is better because expectations are lower. >> you like nike because you don't like the growth potential for under armour? i'm curious here. >> what i'm saying is when you

are looking at risk reward, which in a world where you can't predict the future is the best thing you can do. under armour is doing a good job copying the nike blueprint of getting hooked up with the big stars and building brand around associations with people. those have been great moves but nike still has good assets and still have the ability to get good assets. profits are way higher. so they have better resources. really i'm saying the under armour stock price is assuming already they are going knock nike off the pedestal. >> here is morgan stanley with a downgraded nike saying the whole category is weakening while competition is increasing. even though under armour has been a catalyst, is it just now a maturation phase? >> i think there are pockets of weakness. we've seen weakness in

basketball. the basketball category, which obviously nike dominates that category. but in general we're dealing with a longer term trend in athletic apparel that is going to persist. it plays well with demographic changes we're seeing. so i'm not ready to call athletic apparel or footwear a slowing trend but i do think nike has a lot more to risk than under armour. >> what about the impact of the bankruptcy of sports authority. if i remember correctly that was 25% of under armour's sales right there out the door. so they have lost a huge outlet for them. so what happens now? how do they make that up again? >> it wasn't 25% of their sales. it was something much less. i think somewhere around 3% but maybe a larger portion of their wholesale sales. they reduced the percentage that sports authority was over time. and they are doing really well in the directed consumer channel particularly online. they have lots of white space in markets they are not in. and with retailers they can

increase penetration. so i think they have lots of opportunities. you will see shake out with weaker retailers. but they still have tremendous opportunity. >> it was 25% of the sales decline they were talking about. that is what the sports authority contribution was. all right folks, thank you. liz dun. and david trainer. thank you for joining us. to the close. 12 minutes left in trading. the dow up 10 points. art kacashin was just telling m the market on close orders market on 150 million to the sell. so little dot to sell side here. >> and we're going hear from sheryl sandberg at the code conference. and she's weighed in on the fight between media site gawker and peter thiele. >> i know this is actively discussed here. and should be. because issues of independence and media are key to democracy

and key to all of us. peter did what he did on his own. not as the facebook board member. we debate know about it. >> and? >> and you should talk to him.

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>> enjoyed a very strong run for box. can that move into the green continue? after the bell analysts expect to see box post a loss of 24 cents, revenue of 89 million and billings of 85 million. since february the stock is up some 40% though still in the red year to date. analysts are going to want to hear about any progress towards profitability and new customer acquisitions. back to you. >> thanks very much. joining was 8 minutes left and the dow up 2 points, bruno de la ma the ceo of global x

funds. >> thanks for having me. >> what do you see power it can market right now. we're going to talk about themes for the long-term market but right now what is moving the market or not do you think? >> there is no real trend to the market right now. there seems to be a little bit of disappointment on the consumption side with a lot of retailers and their earnings. there is a little optimism with industrials and a little bit of a tug of war between the two of them and really no momentum to the market. >> one of the places we're seeing activity is giving people ways of trading. especially with etfs. you have a longevity etf here. a lot of bio tech names and that is lngr like linger? >> like longer. >> you hope it's not called -- >> beef it. as well. that has names like adidas. white wave guilden and what else? one for millennial as well?

>> absolutely. >> milf, what's in that one. >> millennial on the cohort, 13 to 36 is actually the biggest generation with 90 million people. it is big. they generate about two trillion of income. growing rapidly and expected to quadruple. and it looks like companies are that well suited to the types of behaviors of millennial consumers. >> mi-i-l-nm-i-l-n. >> any of those companies you participate this. >> well just the whole idea maybe you want to give something -- just because i. >> a lot to do with the future and growth. when you look at the investing it is very much about where is the market going and what are the companies most likely to benefit from those long-term trends. so if you think about millennial today they are becoming a bigger

and bigger piece of the consumer. but consumers are different. they -- >> yes they are -- i can speak from experience. i know millennial that are very hard to please. >> very. >> and can be very fickle sometimes too. so it is tough to pick a stock for the long-term. e if you are expecting them to create the growth for those companies. >> and again. all great businesses but still. >> the point is well taken. >> thank you for joining us today. we'll come back with the closing countdown in just a moment. >> after the bell live to the big code conference in california where you will hear from top leadership at facebook. coo sheryl sandberg and mike schlep froepfer

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have could have stock bob pisani would be demand wear. this company being bought by sales force.com as the premium of roughly 56%. >> that is a flat line my friends. >> they are done. >> we were saved by ism today. the print better than expected. the market breathed a sigh of relief. and we were heading down and we turned around on the ism services report. next big number will be friday. we'll see if that's going to help. we're looking for breakouts now. only 90 new stocks a highs today. a 2% from a new high on the s&p. we should see more breakouts. texas instruments a new high today. -- bad sign. always considered bad luck.

texas instruments. microchip. the stocks, [ bell ] >> that is the real bell folks. looking for breakouts on friday as we do better than exchange rated. >> -- old joke. virtually flat on the dow as the red bulls of new york ring the closing bell here at the new york stock exchange. see you tomorrow, kelly. welcome to the "closing bell" everybody. i'm kelliney evans. the dow up nearly a point but the s&p up about 2. interestingly enough it looks to be closing just below the 2100 mark. a level everyone's been watching psychologically and also as a tell for what kind of strength behind the rally. the nasdaq up only about four

today. coming up facebook coo sheryl sandberg and facebook are cto mike schroepfer will be joining us. and mike santoli. and more. welcome everybody. crude oil was a theme today. overall though the most significant seems to be just the lows that we saw this morning. >> yeah. crude oil turned right before 10:00 a.m. bounced back pretty hard. good guess as to why. but the ism number came in stronger than in expected as bob menti mentioned. it's only been two days since the strong week. it is a new month. it is noisy. i don't think there is a strong theme except people on the side lines waiting for yet more fed

speak and it seems the market is just hanging in there. >> even though i hate the term brexit, the odds are appearing to kind of come back into the market a little and kind of nip at the rally as people are unclear about the direction for that. >> i'm a good handicapper and i like when the numbers move around a little bit. but it does seem like there is perhaps a little more concern over that. i think that the struggle is real here. that there is, you know, quite a lot of money that is not just on the side lines but a really wants to be on the market. and there are so many global concerns and even though we have this modest growth here in the u.s., i think it is not just the u.s. i think it is what's happening overall economic standpoint around the globe. from china to japan to brexit. and the conflation of the potential of all o those events coming together and then looking

back domestically ahead to the presidential election makes it impossible to break it soo new high levels. >> and meanwhile we don't talk about it enough maybe what's happening in credit markets. huge corporate debt issuance yesterday. tells you something about the kind of markets being open more business. maybe it could provide a cushion or a --. >> the high yield markets, which was everybody was talking about probably including myself. 4 or 5 months ago and looked like it was on the verge of a little mini collapse has come back with a vengeance. and to your point it is like open for business, like nothing ever happened so that whole credit scare seems to be in the rear view mirror. i think it is still beneath the surface but seems like all systems go for now. the resilience of the market is what continues to impress me. a day where we could have easily sold off 15 to 20 handles in the

s&p, has us closing up a couple handling. that is very impressive. against a backdrop of auto sales lauz. any number of reasons for the market to sell off yet here we are within a percent and a half of a all time high we made last may. >> the regional indexes have not been that upbeat. then the beige book. the dollar actually weakened after that happened which would suggest maybe more spooked by the softening activities in some districts than the good news everybody else. >> the dollar definitely softened but own the other hand the two year note went up a it. so all these asset classes oscillating in a narrow band and we're trying to draw oop too much of it. i think the market is maybe okay that if things line up we can get a fed increase in july. but that is still a long way from here the to there. >> another big event of the day.

salesforce. >> they are doing everything right. the guy givings great interviews. he knows how to speak to the street. it is a company that continues to you both by acquisition and organically. the only knock on that company has been valuation. but the market shrugs its shoulders. i said three years ago that ibm should have spent that money and bought salesforce. that horse is out of the barn. but again these guys and gals are doing everything right at crm. and it is just another example of them using their ambulance sheet. the strength they have, to make acquisitions that will benefit the long return. >> tougher the last year or so but today might be a sign that

if salesforce is getting in a lot of other attractive names in the space could be available. >> and that is one story that continues to have legs to it and continued mergers and acquisition activity. and given the fact there is credit availability, that you still have the rates being low. i would expect a lot of other companies are going to take the opportunity here, since they haven't been doing that organic investment and the capital investment to continue on the m&a path. so i think it's good news for middle market names across the industries, i think for players that are in certainly verts. i think as the good. >> summer is typically slower for big deals and capital markets. should we be listening and watching for. >> i think we should. all though i think it is going to be more of a steady flow as poed to a quick boom. there is a line of thinking that

says that companies are going to be sort of catalyzed by the idea of a increase and acknowledging the debt window remains open. let's use it or lose it. but i think it is going to be very sector based. >> we're going to call this an early grex. guy we got to let you go. >> whoa that was quick. i didn't say they carol, quick. mike -- >> [ inaudible ]. >> see you later. >> -- before you have to go? >> i have many parting thoughts. i think the opec meek is a big deal. i'm watching that. back to you. >> thank you sir. there is more coming up on fast money. if you think a june swoon is coming, paul hicky has three stocks he says are your best bets this month at 5:00. and media and tech now mermging at the annual code conference.

julia boorstin is in in california joined by sheryl sandberg and mike schroepfer. >> thank you so much. you just left the stage where there were quite a few questions about the role of peter thiel on the board. he of course has been funding a lawsuit against gawker. and you said he will remain on the board. and why should someone who wants to take down a journalistic institution be on your board? >> peter did what he did as an independent citizen. we didn't know about it and it certainly wasn't using any facebook resources. we are an open platform. where people share and connect e to their friends and connect to the news oumts they want to hear from. and that is important for us. kba gawker is a beta partner and they remain an active partner of

ours. >> does it change your perspective of having him on the board? >> we have a lot of strong and independent board members and they do something outside of facebook. >> the other big topic generating conversation here at code is all of this controversy over the question of whether or not there was bias in the trending topics that a facebook puts in people's news feed. were you surprised by the kind of outcry there was? >> we have a responsibility. we have an open platform. it has to be one for all ideas and i think there is concern that silicon valley has a liberal bias. so the fact that conservatives were worried is something we took seriously. we clarified what trending topics was. we explained that news feed is algorithmically based and most importantly we sat down with the conservatives who were worried and able to explain what we do, how we do it and listen to them

and that dialogue will continue. >> whether did you think? >> i think it was positive. most of the people who became published and talked about how they were grateful to talks to us and more importantly grateful for the understanding of what we were doing and not doing. >> does this controversy make you think there is a priority in creating a a.i. for trending topics in the news feed so you wouldn't need human creators at all? >> i think the thing to remember is what you see there is really dominated by who is your friend and who you like. you will see very very different content. so a lot of what we focus on even with ai. is how can we get better at figuring out specifically you want and seeing what you are interested in and doing that as best as we can. >> is there a world where you wouldn't need a.i. where you wouldn't need human curators. >> the news feed is

algorithmically generated and based on what you follow, what friends your have. and what you like. and that is what you're there to do. toe see what's going on with friends and what's going on on the sites and pages you are interested? >> yesterday jeff bezos talked about how they are investing in a.i. and echo and the alexa software. do you see facebook creating something similar. >> we're invested heavily in a.i. two years ago mark showed up to talk about our plans and the research lab we've built to work on a.i. and using it on products every day to make it better so people can connect with each other. 800 people a month are able to see a month are able to see a post in someone else's language and applying a.i. in ways that people can connect. >> what about the next generation? >> you are starting to see some of this in our messenger bought

platform. way for developers to plug and work with us in messenger. and instead of trying to search around on the interface you can just write a message. i think there is tremendous opportunity on facebook for people to find experiences by messaging through facebook messenger. >> but no hardware in the works? >> we're working on lots of stuff. >> sheryl, since the last time we spoke on cnbc, we've seen the explosion of live video. wii saw it recently with this chewbacca mom video. something like 155 million views. how do you translate all of those views into the revenue for facebook. >> our business works that people use facebook, they use it to share and connect. they spend their time with us and they are more relevant to serve them relevant ads for things they want to see. it is really exciting what's happening with video. whether you see is as people share more there is also an

increasing visualization. the original facebook posts were just texts. and then photos and now just video. and something so powerful about the live video platform. and as people spend more time it is good for business as well. >> and one thick like news outlet likes cnbc do broadcasts on facebook live. there are broadcasts going on from inside here. how do you convince these premium content providers they can make money if they put content on facebook live is this. >> what's happening is the distribution mechanisms are changing. everybody has a phone and that phobe has immense power. even two years ago most people couldn't have shot and loaded and taken a video as easily. and i've seen you do facebook lives from your phone. so we can see the power of that technology. and over time we'll work with people on monetization as well. i this what content providers want is to get content distributes and we want to be part of it.

>> how are you going to keep that kind of growth up. >> i think the story of the business right now is the shift to mobile. and i we're excited about the progress. we have 50 million small businesses which use our facebook free product on a monthly basis. 3 million are now advertisers. 200,000 advertisers on instagram and tahat's been great. on the other hand we still represent a small fraction of most marketers budgets even our largest customers compared to the time they spend. for the first time the lines crossed three years ago. the average american now spends 4 hours on tv and 5 and three quarter hours on mobile. we have a super bowl on the u.s. in mobile every day. so our opportunity and challenge is to help marketers make the shift to be where consumers. >> there is a question about measurement and how you measure a video view. is it three seconds? more? how do you answer those concerns? >> the best form of measurement

is when we help marketers measure what they actually care about which are end sales. and we work on that. we have advertising products that can help you measure if you are a car company seeing an ad all the way to purchase. and we have increasingly work with advertisers, client by client, company to company to help measure the results they want to see. >> and users, particularly millable millennials. millennials. is that a threat? >> mark said then eight years ago and still believes that the social thing is going to be big. and that means there is going to be more social products and people are using facebook, and instagram and using messenger and what's app and other product likes snapchat. facebook remains the best place in the world to get the largest audience of teens. but we theed too continue to work hard and build products over three, five and ten year time frasmt we have a long view.

>> and you and sheryl did a job switch for three days. >> yes. >> what did you learn about what kind of products facebook should be developing? is it alternative to snapchat. >> a lot of what i learned is how much time and energy sheryl and her team spend trying to make our partners and advertisers successful. meeting after meeting trying to understand whether they need from the platform. what more we could be doing for them and how much she spends time on that. i don't know what you find in your kay as me. did you get to go in vr. >> i did. we think in three, five and ten year horizon. three year the current business. optimizing and continuologist grow. and five years, messages, and reaching a billion people and advertise. and ten years, investment this is the core technology and vr and a.i. i think the business side, the side i work with more of our decisions are in the three and five year time frame. we don't make as many 10 year decisions and sitting in

schroepfer's shoes i realize how far out you have to think. >> what are you hearing people want? is it more products like snapchat? like the lens, branded lens? do you feel you can take things back to the product side and say here is what we node do now? >> we sit together, along with mark. both sides of the company work incredibly closely together. we have our regular meetings of advertising. that is obviously the sales and marketers and the product and the designers and the engineers. whether we hear from marketers is that they know to be where consumers are. they know they want to serve the right ad to the right person at the right time and measure results all way through to sale and it is up to us to help them do it. >> kara swisher asked if you wanted to be -- of disney and you said you love your job. >> i love my job. >> do you think you could be an even more powerful role model if you are ceo of a major company. >> some people ask me the in i'm going to lean into anything other than facebook.

my answer is i'm doing all the leaningky. i really love facebook. it's been incredible years and i work with my closest friends and i really believe in our vision. our vision is working to give people the power to share and make a world a little bit smaller and more connected and i think we're doing that on a daily basis. >> so no job changes. >> no job changes. >> thank you both for joining us. we really appreciate it. julia. and kara he said had to ask. thank you all for joining us out of the code conference today. nights on that discussion guys? >> i love that she said that we're having the super bowl on mobile every day. and talking about the vision and the opportunity here. when you are talking about eyeballs and scope and putting it in that kind of visual perspective, i thought that was incredibly powerful.

>> but the question always hanging over sheryl sandberg doesn't have to be disney specifically but the sense that hey it is out there now. would you, could you take that next step. >> >> and all she does is a disciplined way and probably a genuine way is convey confidence in facebook and what we're up to and complete control over the message of what she's dealing with right now. to carol's point what she really does get across is this idea that they are situated in such a position of strength, that even the controversy over peter thiel. even the controversy over the news feed. they are just these manageable ripples they can in an open way try to deal with. they have a super bowl every day where they didn't have to pay for the content. a super bowl every day where content providers are clambering to give it to them. does that mean there were $350 billion? i don't know. not really part of that

calculation directly but that is in unique position they sit? >> and going back too her stepping away. she really is at the helm of this company. when you are a helm of a company doing so well and so many opportunities, why would you leave? it seems to me that that is not the type of thing you would want to step away from for the possibility to get roe, return on ego, by getting the ceo title. just doesn't make sense. >> only to leave from a position of strength, as opposed to one of weakness. let's get to earnings from box now. they are out. shares moving lower. josh lipton with more. >> box reporting and disappointing. so let's get you those numbers. reporting a loss of 18 cents. the street had been expecting a loss of 24 cents. revenue jumps 37% to 90 million. the street had been at 89 million. some waebsness on billings at 76

million. they were impacted by what's called increasing seasonality in the business. worth pointing out the deferred revenue of 122 million also missing estimates. heading into this stock enjoyed a strong surge about 40% off february low. on this call you are going to hear analysts want to have a lot more color about exactly what progress the company is making towards profitability. new customer acquisitions. now newer solutions like government are performing that. call starting at 5:00 p.m. eastern and we'll be on it. >> shares down 8% after hours. now is the fed driving the market? or is it something else entirely? roger altman weighs in coming up. and alphabet has been on the hunt for a wier for its robotics decision.

you're watching cnbc first in business worlzwide. clds they found out who's been hacking into our network.

who? guess. i don't know, some kids in a basement? you watch too many movies. who? a small business in china. a business? they work nine to five. they take lunch hours. like a job? like a job. we tracked them. how did we do that? we have some new guys defending our network. new guys? well, they're not that new. they've been defending things for a long time. [ digital typewriting ] it's not just security. it's defense. bae systems.

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robotics companies. >> this is all about artificial intelligence. the future of robotics. and the future of autonomous drive vehicles. and toyota like the other out makers actfully pursuing this. and you might sayively pursuing. and you might say what does this have to do with toyota? well according to this end gadget toyota is close to buying boston dynamics the whole point being they want to focus more on autonomous drive vehicles less on robotics. toyota likes at artificial intelligence as really being at the heart of what is going to happen in the future with autonomous drive vehicles. not to say alphabet and google don't believe that as well it. think they look at boston dynamics and say it is not necessarily what we need to do. toyota's research arm doesn't get a lot of attention, base

misdemeanor the silicon valley, clearly believes there is value here. and what we're driving towards is going to happen, 5, 10, 15 years from now you are going see artificial intelligence and several driving cars. and by the way all the manufactures i talk to. say the same thing. how quick the artificial intelligence in the vehicle is progressing. >> again, google is getting into the driverless cars but feels it can divest this business. >> right. obviously there is some sort of not invented here syndrome that i think perhaps plays into their desire to divest this and do things on their own. what scarce me a little bit. -- well the entire video scares me. but if they are doing this for the ai sid of things. to me the government should be buying this company. we shouldn't be letting this into the hand of any other country in the world. to me i'm looking at that and i'm looking at soldier of the

future and that is completely frightening to me. >> the argument could be made there is a number of other companies and the government is not going to be the only one that is going to work on this. and let private enterprise develop it and if there is some great product at some point that comes out whether for the military or other application, if toyota drops that, great. everybody will be able to. and we all know they are not the only ones working on this. >> seems like head start or axel rant to what they want to do. and much more about a difference of approach. we'd rather be on the software side and not necessarily the implementation in the hardware. >> and also seemed to suggest they learned from boston dynamics what they needed to learn. which is interesting too. phil thank you. >> glad to be here. >> phil lebeau.

we'll see what toyota does if they buy it. exactly. talk about the boom and bust. elizabeth holmes thought to be worth 4.5 billion dollars a year ago. now said to be worth a whole loss lot less. and more. move like a start-up? it's a question we get from some of our largest banking clients. the face of their business was tellers. then atm's. today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up.

the death toll in a car bomb and shooting attack in a hotel . the attack began when a suicide bomber detonated an explosive laden vehicle at the hotel's gates. >> french tax shorts seeking nearly 400 million from booking.com. according to a filing by priceline to the securities and exchange commission. it added it would contest the assessments. >> hillary clinton calling donald trump a fraud at the new jersey rally today. accused him of being shamed by the media into making promised donations to veterans groups. also accused him of taking advantage of vulnerable americans through his trump university. and a new york judge has set bail at $25 million for a professional gambler linked to

golfer michaephil mickelson. that is the news update. back to you kelly. >> ever core's executive chairman joins us next. ♪ you're not gonna watch it! ♪

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i used to like that song. welcome pack. a quick look how we finished today. the dow started with big declines but managed to close higher about 2.5. same for the s&p closing just below 2100. and box reported earnings after hours. shares still under pressure and down about 8%. and everyone from ceos to pundits is focusing on tomorrow. how does that change the investing landscape? roger altman joins us, welcome to post nine. >> hi kelly. >> greet to sew you. what's changed in the investing lines? >> i think if we were having this interview two years ago, two years ago right now.

and you had -- we were talking about the outlook. we would have talked about how the bigger merging markets were going to be the engines of global growth. we would have talked about oil prices at a hundred or higher. we would have talked about interest rates marching upwards and beginning their long expect expected march in that direction. and certainly would have said to ourselves not a chance in a million donald trump would be a major presidential party nominee. and you ask yourself why has so much of broad forecasting -- and i could use a series of examples if we had more time -- been so wrong? and i think it is -- >> because we can't know the future. >> well that's always been the case. the cave men didn't know the future. but i think what's made it much harder to do forecasting is, one, the financialization of all markets. so take oil and iron ore. today they are driven by

financial investors more so than the consumers of the commodity. and globalization of course. we have never seen so much capital circling the entire globe at so much velocity. and it produces volatility. so that commodity markets for example have taken on the same volatility as broader financial markets advise in the modern era. >> and this constant barrage of brexit, exit and. >> and i think you have unprecedented amounts of information flying at the speed of light. and among other things, nations like china, like russia, autocratic nations have have controlled information about themselves have lost the ability do that in this era. so today, even two years ago we would have speculated about the real growth rate for china.

now there are numerable, evercore does a good one. indices that can be constructed and they are often better than the official statistics. and people can figure out no matter what the government says what actually is happening in china. whatever it may be. so all of this -- the speed of this information, the financialization of market t globalization of this information. the lack of control over the information has made it more difficult to forecast. it is more difficult to see ahead. and we all know for example that no one foresaw going back a couple of years ago even or a year and a half ago the collapse in oil prices. no one foresaw that. fascinating. >> fwhar implication force aen investor? the higher speed the way markets react to themselves? does it mean keeping more of a buffer? or being more agnostic to how you are going to go? >> really depends on the investor and the focus is and the horizon of the investor is.

but as an example i think it puts an greater and greater preemen on investors doing their own work. because i think the ability to rely on what i'll call the conventional wisdom or conventional forecast, has fallen to unprecedentedly low levels. it is not necessarily the fault of those doing the forecasts. in fact, it isn't the fault. it is the lesser and lesser ability to do them correctly and make them accurate. if any of the four of us was an investor, my advice would be do your own work. because your ability to rely on third party forecasts however well intentioned or however smart has diminished a lot. >> even the short-term nature of the markets and the focus of companies having to deal with everybody from activists just wanting the information from minute to minute. what is the long-term implication for that? because i know that there are a lot of company whose feel like they can't make some of the capital investments they may

have made five years ago or ten years ago because they will get penalized in the short-term by the investors. are we risk the future here of the markets? >> well, this you might call it the triumph of short-termism is a big problem. and ironic so many ceos who are accused of having a very short-term focus, focusing only on the stock price storm or a week from tomorrow, focusing only on the next quarter's results are actually prisoners of this dynamic rather than creators of it. because of the role of investors and the demands and the market as a whole that you are referring to. now it remains to be seen, for example, whether activism, which is running at very high levels s a permanent feature of the investoral landscape or a medium term one. we'll just wait and see. activists, for example, right now a being a little less

successful case by case as a year ago. but fundamentally this short-termism is contributing to the difficulty of forecasting and the lack of usefulness of the conventional wisdom because everybody is focused on the short-term by definition. and a year out it seems like a millenni millennium. a lot of people have pushed back against it. and we may see more push back it. in maybe an issue in the presidential campaign. hillary clinton has talked about it. but it is not a healthy development. it is making forecasting harder and let's hope that it balances itself out a bit. >> i feel so relaxed already. roger thank you for joining us. appreciate you coming down here. roger altman. breaking news with seema mody. >> uber raising more capital. 3.5 billion from the saudi arabia investment fund valuing the tech company at $62.5

billion. the largest single investment made in the private company. saudi arabia, the public investment fund will get a board seat. we know uber has a wide range of investors. but in this latest round turning to the middle east for raising capital, kelly. >> seema thank you. >> it's fascinating. obviously this is a huge consumer of capital uber is and they want to go to a place where they can just write the check. you don't want necessarily to go back to the same investors. it is fascinating. >> didn't prince -- lyft? >> i think you're right. and in some theoretical way for saudi arabia it is a hedge against everybody owning a car long-term. >> can uber actually operate in saudi arabia? >> i don't know. >> women still can't drive as far as i'm aware. >> last year. elizabeth holmes topped forbes liz of self made women.

now forbes has lowered her net worth to zero. and it's been called a scheme and -- how it could impact the race for the white house. you are watching cnbc first in business worldwide.

she once topped forbes list of american's top women.

today her net worth is down to zero dollars. forbes lowering it based on the fact of the valuation of the blood test itself has dropped to about --. tells us this in response. as that privately held company we declined to share confidentiality information with forbes. as a result the arlt is based exclusively on speculation and press reports. welcome matt. >> thanks for having me. >> what was interesting here is you trying to estimate what theranos is worth now. how did you come to this figure of $800 million? >> first we talked to a bunch of investors, all of whom were not theranos investors. so a lot said well it's zero. and the two mo emethods we arrived was one giving them full credit for the cash they raised. so you assume they haven't destroyed any value. and adding on to that, 50 million or so for ip and using

that as a starting valuation. the other was that we learned their sales are south of a hundred million. if you apply a generous diagnostics multiple of about ten times sales you end up in the same place. so we were comfortable with that. once you have the figure the structure of the shares, holmes doesn't get reimbursed for sale or any other way of looking at the valuation. and she winds up with by the standards of owning stakes in big companies a relatively small or perhaps non existent pay out. so swe thought the safest thing to do was to take the estimate down to zero until there was more information. because the real thing about theranos is -- and i say this having interviewed elizabeth on stage twice and talked to the company a lot we really know very little about this company. >> but we've known such for a very long. and for my perspective it's

always been zero because she never cashed out any of the stock. so why does the press jump in and put this dollar value on the hot new thing. and the new steve jobs and the lich richest woman. and from her perspective she's never really said that that i've known. and she's never had a liquid security. so from that standpoint it's always been zero. >> the unicorn valuations are challenging for that reason. you have a company that has a valuation. the valuation becomes publicly known by filings or by reporting. you have confirmed the valuation. and now what does it mean. and that's definitely a challenge that we face. in the past we've discounted these valuation -- we've generally taken the approach. and i'm not in charge of valuations but we've generally taken the approach that we take the valuation at face value. in cases where it is distressed we discount it.

in this case the decision was made we were going start to do a valuation from the ground up and you get a very different number when you do that. >> not to get too scientific but there probably is a way to say if you were a bank would you consider her stake worth x and lend against it? i guess there were other ways to have some third party way in on exactly whether she has net worth? >> yes. thank you. there are also we could have tried to extrapolate from interest market cap changes in lab core and quest have gone occupy. i thought about that now and tried it. you come close to this doing that. >> interesting. thanks for joining us. matt herber with forbes. the california lawsuit is heating up with a batch of newly released document precise the university so called sales playbook. those details are next.

ed

a news alert on the pga. >> it looks like donald trump is losing some business to mexico. specifically, one of the pga tours that was held at his doral resort in miami. and there has been some controversy about this. mr. trump lashed out about it. tim fincham, the pga chair, had this to say about the decision. >> some of the reaction involves around the feeling that somehow this is a political exercise, and it is not that. in any way, shape or form. it is fundamentally a sponsorship issue. we are a conservative organization. we value dollars for our players. we have a strong sense of fiduciary responsibility.

>> now, he mentioned the sponsorship issue. i'll get to that in a second. mr. trump responded, it's no different than nabisco, carrier and so many other companies. the pga tour put profits ahead of jobs, millions of dollars in revenue for local communities. and charities and the enjoyment of hundreds of thousands of fans who make the tournament an annual tradition. this embodies the very reason i'm running for president of the united states. that's mr. trump's response. mr. finchem mentioned the sponsorship. there was a clause if there was a change of sponsorship, they had the right to move the pga tour. cadillac, who has been sponsoring the tour in most recent years, decided not to continue that sponsorship. that gave the tour the ability to move. there you go. >> mexico city, where i guess

pga tours has problems in the past. >> they have, yes. it's not the first time it will be hosted there. but there were some issues the last time around. >> back in 2003. they'll have another go at it. sue, thank you so much. >> sure. >> meanwhile, new details in the lawsuit against trump university. nbc's peter alexander has the latest for us now. >> kelly, good afternoon. among the harshest critics of this defunct for-profit school, we're getting our first look at sworn statements as part of the federal class action lawsuit, where employees complained of unethical sales techniques, unqualified instructors and dissatisfied students. one former sales manager testified, i believe the trump university was a fraudulent scheme. he said he was even reprimanded for not pushing a financially strapped couple hard enough to sign up for what was the $35,000

real estate course. another manager explained how the students were asked to max out their credit cards to pay. this case will not be resolved until after the election. trump's lawyers, they deny fraud. they point nbc news to a campaign released video with positive reviews of trump university. still in recent days, trump's taken to attacking the federal judge here, tried to discredit him as being biased, even drawing attention to his mexican ethnic background. this entire episode, of course, giving hillary clinton some new ammunition. she's calling trump a fraud this afternoon, arguing trump is, quote, trying to scam america the way he scammed all those people at the trump u. kelly? >> peter, thank you so much. now investors are closely watching the fed's next move. is the dallas fed keeping its eye on a specific group of people and their activities? we'll explain next.

i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

the call just came in. she's about to arrive.

and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. the unemployment rate may be down, but so is productivity. there's a specific reason for this drop. millennials. it estimated less than 50% of their time during the work day is spent on value creating

business activities. instead, they're more focused on social media and texting. this is in the final paragraph of the dallas fed's gauge. >> this definitely gets to the difficulty of measuring productivity in an office setting, a white collar service economy. in other words, to talk in the '90s, it wasn't as productive, because you were undercounting hours. it is amusing. now we have overtime laws. >> that's what stirred it, exactly. this is a miscellaneous comment that other government regulations are seriously slowing things down. their point is, if you make us pay overtime, we have to focus on the main productiveness over the work day. >> we never talk about the fact that there is work week inflation as well. i don't know anybody who has a salary who works 40 hours a week. entrepreneurs work double that

or mot. >> if people aren't working overtime, maybe they have to do things during the business day anyway. i'm sure it's not just millennials. thank you so much. carol and mike. that does it for us on "closing bell." "fast money" begins right now. "fast money," right now. live from the nasdaq market site, i'm melissa lee. the traders are pete, karen, brian and guy. tonight on fast, is a june swoon for stocks right around the corner? we've got three stocks that always perform well in june, no matter what. we'll give you the names. plus, oil hovering near 50 bucks, opec gears up for the big meeting tomorrow. a top analyst in the space tells you where you should be putting your money to work right now and where he sees value. call it a case of leisure drama. slamming the company in an open letter. it gothe