josh? >> yeah. i would agree with that. i would also add if the best thing can you think of to do is to buy sovereign debt at a negative yield, you should have somebody else investing your money for you. >> josh, quickly, we're out of time. jim? geez. >> have a great weekend, everybody. >> we're out of time. i'm out of my mind. "power lunch" begins now. ♪ >> risky business has the market failed to take danger into account. i'm melissa lee with tyler mathisen. brian is at the investment forum. michelle is out today. let's take a check of the markets and where we stand right now. a roller coaster ride for today's session. the dow is down by 100 points right now. .5%. the nasdaq is down by 50 points. since the february 11th lows, the dow is up 13.4% jump and the s&p 500 and the nasdaq up 14.6%.

and today, gold is trading at the highest level since may 18th. u.s. treasury yields are lower. german bond yields are close to zero. the vix is up almost 10% today alone. >> so one big question is are investors ignoring risk that's are in the markets? let's bring in dominick chu. he's been sitting here patiently for at least 12 seconds. and mike santolli, you're looking for risky sectors. >> we want to hone in on three specific ones. we have a limited amount of time. let's start with one of the hot trades of the year, arguably over the last couple of years. it's been utility stocks. if you look at utility stocks, we know they've been the safe haven trade. less economically sensitive and ones that pay higher dividend yields. these things have been so popular that they now trade at around 20 times earnings. that is higher than we've been at any point in the last decade,

perhaps an overvaluation concern and, of course, with all of these interest rate proxies, these one that's act like bonds, yields and that interest rate environment will be a risk here. that is something to watch out for. number two, here's what's been happening with energy stocks. of course, energy is a hot button topic this year. after we saw the lows of crude around that $26 a barrel mark, we doubled in price since then. the konchz that are most leveraged are the biggest beneficiary riz out there. so big risk to the down side. then also, a big pop here. the question becomes whether or not the risks here are symetrical given that massive runup in the price of crude oil. also want to highlight here the second big sector in the s&p 500, that's financials. the bank stocks, some of the others out there. a lot of the guys are also interest rate sensitive plays as well. and financials, hugely important because of perhaps the notion here that banks may not make as much money if the current interest rate environment stays the way it is and we've only seen longer term yields come

down, guys. those are three areas to look out for. >> mike, you've been looking at the gap between the s&p 500 dividend yield and yield on ten year treasuries. it's widening. >> absolutely. >> largely because the treasuries are going down. >> almost entirely because the treasury yields collapse add long with global yeeltdz. yields. what the implications are for stocks when you have this global yield collapse? honestly, it's difficult to tease out now. when the dividend yield and the s&p 500 has been above the treasury yield for a prolonged period of time, it actually has been a decent -- at least since the crisis 26of 2008 and 2009. we were there for close to a year. that was a pretty good time to be accumulating stocks. now the question here though is we're not in this position because stocks have pulled back. we're not in this position because stocks look cheap on other measures.

we're here because yields globally are lower. the big question is, do we have to worry about the message of bond yields more than we should be enjoying the fact that stocks enjoy that dividend advantage? >> all right. mike, thank you very much. >> all right. so the question now is have we gone too far too fast? are we ignoring the warning signs in the market at this point? let's bring in our advisors. what's interesting is we're looking at the s&p 500 within 1%. we've been under 1 hundred hn% of all time highs. we have stocks, bonds, and gold rallying all at the same time. it doesn't make any sense. >> no. people are confused. i think there's a lot of mispricing in the market, mel. whether or not we decide that stocks are a little too frothy right now, it sort of feels like that. but on the other hand, europe is down 2.5%.

down about 2.5% this week. we're flat. so, yes, we gave back a lot. but then you take a look at the other side of it with the volatility. and the volatility in europe in particular in the german market and dax is over 25. so it's nearly double where it is here. >> why the big spike in the vix today? >> i think it is calling a mosaic of news. i think you have to listen to someone who is right on big mac row moves in the past. i think you have the european back that's are locking up money in safety department boxes because yields are so negative. you have the bund that was already essentially compressed to almost zero has tightened ten dips in the last week. you have a place where the irony

is what dom is talking about is yields are going lower. that will put more pressure on dividends which mike is talking about also. utilities, things that are safe havens. that's what the market is worried about here. i think if you follow the vichl and john does this all day long, you know, around 13 we've seen the vichl down multiple times. 16 1/2 is the level if you're tracking the headline vix. but there is the breakout level. i think markets are kplas ancom. i don't think can you be gaining a black swan event. i think the markets need to be taking apension to this stuff. >> tim nails the part -- >> hey, everybody. >> that is a big deal because that's where he made his biggest killing was betting against the british pound. so for him coming in here and saying, boy, brexit is a bigger deal than people giving it credit for, he's one of the voices that i'm listening to that on. that. >> brian, you want to jump in? >> yes, brian sullivan from out

west. sorry to jump n i heard tim mention bill grossman. we sat down with a long interview. we'll have him live in the next hour. i'd love you to comment on something he said. they tweeted out yesterday that financial markets were a super nova waiting to explode. so we sort of dug more into that. he said just look at me and said all financial assets are overvalued. all financial assets are overvalued. i said if you had one word to describe u.s. stock market, what would it be? his word was voluulnerable. how do you react to that? >> i have a view. i think we're at a place where we know stocks are pushed up in terms of multiple evaluation. this tells me that people need to buy physical things. this is going to put more upward pressure on the housing market. commodities bottomed and you're in a place where inflation trades. if that's the risk and the world is starting to look at essentially inflation, these are the things you want to own. that's the trade.

>> all right. last word in terms of today, you have made any trades today? we've seen some big moves in financials as well as energy stocks. >> on the pop in volatility, i took a little bit off because of that pop being so big. >> right. >> i still think we can push to 20 on the vix. but it's question of do we get a chance to reload next week? if we do on any rally, then i'll sell out here on the vix. >> all right, thank you. >> let's get rig counts. that's what we got. rigs rup three to 328. that is it still down 307 rigs lower than a year ago. natural gas rig counts are up three to 85 in the week up to june 10th. so it looks like at least right now more signs short term for a stabilization. we'll see if that sticks around

in next week's trade. it's not affecting oil prices tremendously still. one to watch. now back out to brian sol van. his native southern california. >> dom, you know, that's really interesting about the rig count. second week in a row we've seen an increase in drilling rigs. not a lot. four last week and three this week. this is the risk that we talked about from opec last week and oil which is that when the prices come up, people tend to get greedy, right? we had tom ward on the show. he said the industry is stupid and makes mistakes over and over again. price goes up. people start drilling a little about bit more because they want the extra cash flow. there is really interesting to watch with oil. we're here because of janus. in the next hour, we have the exclusive interview with bill gross. we have a live interview bill coming up. he talks about the vulnerability of the markets.

they are conoco fill ipdz, marathon, petro ross and the bonds of the big companies and actually asked him, you know, off camera, you are still investing for these? he said 12 to 18 months, he made money off it. i said if you're going to zribt oil market, how it would be? he said plateaued. so bill gross, guys, not necessarily known as a oil guy, but has a view that the price of oil has plateaued and not going to buy any new debt of some of the oil companies. let's go back to oil and get reaction to that rig count number. and we're joined by grievery grossman. he is president of brg brokerage and trades oil at the nymex. jeff, two weeks in a row. a small but slight uptick in drilling rigs z that make you servous about oil? >> no, not at all. when it does is shows me the industry is a little confident right now that market -- that it is stabilized and on its way

higher. i don't see this has a negative really. it shows that people are going to get into the game and really get involved here at these levels. it's a little early yet. it shows the trend taking place in the next month or so. >> you know, we talk about the macro risks and all this other stuff. we don't talk about them enough. is there any macro thing out there that could risk a global slowdown which would mean we use less oil and put downward prices or do you think the uptrend is intact no matter what? >> i think we have a drift higher. i'm not going to go crazy and give you insane numbers. i see this market about by the the year in the mid 50s. that is very sensible based on all the data that i'm looking at, that's for sure. >> all right. bill grossman of brg brokerage. it's a pleasure v a great weekend. thank you very much. we'll be back at the top of the

next hour with an exclusive with bill gross and his comment about the super nova market. >> all right. thank you. how things change. chipotle is no longer the fast casual restaurant in the united states. it is this chain. we're not telling you who took the top spot until after the wraek. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

welcome back to "power lunch." intel shares getting a lift on reports apple will use the chips for some of it iphones. this is the first major win in mobile. intel shares are up .75%. delphi is rated overweight over at piper jaffray. they have the best opportunity to benefit from automation for the auto industry. shares are lower by 1.5%. and twitter is attracting fewer ad than instagram service. it is the first time instagram pulled ahead of at which timer in that category. shares of twitter are down 3.5%. >> mortgage rates could hit historic lows. but there are a lot of mixed signals this spring housing season. dia dian dia dianaolick is tracking them. >> more important is that it is staying there. some lenders at 3.5%, more at

3.65%, but the last time we saw it this was for barely a few hours. not this time around. it's all part of, like you said this mixed bag that we're seeing in spring housing. on the one hand, there is solid strong demand for housing both buying and renting. you have the largest generation of coming of age and creating new households and the second largest generation downsizing or moving to retirement communities. so why are home sales still below normal levels and prices going through the roof again? no surprised. builders are ramping up. mostly on the luxury apartment side. single family housing starts are rising but very meekly. 1.2 million homes a year is the historical norm. forget the fact that we didn't really build any houses during the housing crash. we're still building now only around 780,000 this year. sellers, four million are still stuck in place, underwater on the mortgages. 18% of all homeowners with a mortgage have less than 30% equity. so nirt telling.

they're staying put. and home flippers. they are back with a vengeance to take advantage of these rising prices. they're all cash buyers and what that means it is pushes the regular mortgage dependent buyer out creating even more upward pressure on prices. back to you. >> diana, i want to ask you about a question i saw on realtor.com, the blog or the site of the national association of realtors. they're identifying a trend where the delinquents on helocs are rising dra mat beingly simply because the ten year grace period up is. and so we're going to see that number mount as the year progressed. could that have an impact on the supply of the market? >> no. i don't think so at all. that is a very big number. 87% on the 2005 loans. we saw an 80% jump in delinquents. the reason that number so sbig off a very small denominator. most people who took out helocs in 2005 have sold the house or

refinanced at today's very low rates to get out of the helocs. so there are very few of those left, yes. the grace period did end. and so some are going delinquent. but it is a very, very small, small portion of the market. >> dianne yashgs thank you very much. diana owe lick in washington. biotechs taking a beating down 20% year to date. as you see there. and there is one company bucking the trend, up 50% in just the past month. here's why. they're helping the blind to see again. you have to stick around to see this story next. (speaking japanese) oh watson, your japanese is very good. thank you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. (speaking japanese)

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seaworld. real. amazing bioteches is down 20% year to date. not all biotechs are the same. check out spark therapeutics. they're up 50% in one month. the company helps the blind to see using experimental gene therapy. we met with two young patients, brother and sister, who enrolled in sparks clinical trial. >> things are to come. >> i went outside and it was snowing. i was like, i can see the snowflakes! it was really cool. like, to actually see something that i've never seen in my life before. >> extraordinary story. there joining us now, the ceo of spark therapeutics, also with us is meg terrell. it's a pleasure to have with you

us. a lot of analysts think that approval of this particular treatment blindness for inheritinherit ed reinal distrophy. some investors say is coverage on the genetic testing because that is going to be needed in order to make this drug a commercial success. what can you tell us about insurance companies and coverage for genetic testing? >> well, we think this is a critically important component of how we begin to prepare for bringing up a product to market. and, in fact, we're working on the final stages of preparing to launch an initiative that's going to really help bring and facilitate genetic testing to people who have various forms of inherited retinal diseases including people with rp 65 mutations that may benefit from our market. >> that's an amazing nint she makes. the need for more genetic

testing. i mean, i want to ask you about the reimbursement for that and how are we going to pay for gene therapies when you treat them one time? do you charge $1 million up front for that? >> i think it's too early to talk about price specifically. but we have been and believe it's important to sure we bring innovative solutions not just in the form of research and development that we're doing but also innovate af proechs to how we might actually ensure access to a treatment like this as well as i think importantly ensure that incestives for these types of potentially one time treatments can continue to facilitate more development of the treatments. i think over and above even at some point some daycronic therapies. i think they should try to accomplish these transformations with single dose treatments. >> to follow up on the point about cost, you are concerned about the political environment? we started off the segment saying that biotech sector is down 20% this year alone. and that is in part because of

concerns over drug pricing. are you taking a loog at the political landscape and getting concerned about what may lie for a company like yours which may treat patients that will cost hundreds of thousands or millions of dollars of treatment even if it is once. >> i will say that i think the reaction over the last couple weeks is our stock, i think is largely been more towards, to the results that we've been able to recently show. we recently had data that was made available through an abstract meeting and european oncology and we're presenting that media tomorrow. that was actually showing that your clip before talked about the work we're doing in the eye but that actually that, data was in an area of hemophilia. and what we're able to show there in early results was the ability to substantially reduce the risk of bleeds which is

central to that disease. also taking people and freeing them from the need for chronic administration of factor which really adds a second leg of the stool for the company. it allows us to supply work in the eye and -- >> i'm sorry to interrupt. back to the actual question i posed, drug pricing and the political environment. you are concerned about the environment in which politicians are taking swings at drug companies for charging a lot of money for treatments even if they are treatments that could change the lives of patients? >> well, look, i think those -- that debate will continue. i think as a company, what we're really focusing on is trying to get from here through not only our bla submission but on to the market and continue to advance other therapies. you know, we focus an execute on what we're doing and add legs of the stool as i just said, adding into other areas is going to allow us to create value. i think back to the question that meg asked, i think it's imperative for companies like ours to come with innovative solutions on how we can ensure market access and not

necessarily depend on perhaps way things may have been done before. i think we have to come with innovative solutions and we're intending to do that. >> all right. jeff, thanks so much for joining us. we appreciate it. the ceo of spark therapeutics and our thanks to our own meg te are. rell. >> final gold trades are crossing for the day. that's straight ahead. europe says north american lobsters pose a threat and wants to ban all live imports. that's next. will your business be ready when growth presents itself?

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hi, everybody. i'm sur herrera. massachusetts senator elizabeth warren met with democratic presumptive nominee for an hour at the clinton's washington, d.c. home this morning. warren endorsed clinton last night. >> the largest concentration of mosquitos is along the southeastern coast of the u.s. >> the bid to have lunch with warren buffett ends at 10:30 p.m. eastern time tonight.

but that already beat last year's winning bid of 2.35 million from chinese gaming companies. the proceeds go to glide, a charity that runs a number of anti-poverty programs in san francisco. >> and a sad note here, detroit red wings hockey player gordy howe has died. he flad more than 1700 game in the nhl and scored more than 800 goals. he was widely known as mr. hockey and was a legend in detroit. his final nhl season came at age 52. he passed away at the age of 88 years old. and that is your news update at this hour. let's get back to "power lunch." >> all right. i'll take it. thank you so much. let's check in on the final gold trades crossing for the day. a positive trade. interesting given that we are pretty much at or close to session highs on the dollar index. we're seeing gold at $1275.10. taking a check on the metals complex here, pretty much red

arrow as cross the board with the exception of silver which is up by .2%. copper is just about at that $2 level. that is a key level. there down by just about .4%. now let's check in on the bond market. history is being made around the world. rick santelli is tracking the action. rick? >> i hope it turns out to be a good history. it doesn't look like it. right now, all the settlement, serb ll lspecially the treasury yield curve is meaning. so we're down a handful of basis points on the one week chart of tens. when we look at the big chart, we're hovering at a close we haven't seen since the end of january of 2015. really it is all about the relative value trade. we're kind of getting pushed around by overseas rates. look at a chart starting in january of 2015 for boonz. now i'm going to do an experiment. everybody's looking to what's going on in boons and thinking they have it all nailed down. the last time we were down here,

april 20th is when they made the low. we have one month chart. we're going to do the tens and the boons. what you'll find is in three weeks, the boons went from 07 to 70 and ten year twenty from 1 wi 86 to 230. sometime it's in two directions. tyler, back to you. >> all right. rick, thank you very much. stocks down with the s&p 500 and the nasdaq having their worst days since way back on may 17th. that's almost two weeks ago. yields around the world are are falling with germany, the u.s. -- excuse me, uk and japan. all setting record throws day. rick santelli mentioned the german bund. the yield there is near zero s this time for investors to take risk out of their portfolio? joining us is jamie foxx from paris financial group and showenstein from the morning

star growth fund. welcome. you know, we've had lots of rumbles, jrnlg sorros and carl icahn and bill gross saying the financial markets are a super nova of -- [ no audio ] >> tyler, you know, from the jensen perspective, you can make the case that some parts of the market are overvalued. i think the important thing in the way that we would think about it is if you're looking at individual companies, you can still find valuations that can make sense from a long term perspective. because of 9 streng nthe streng fundamentals that allow them to grow. perhaps can you still yield nice opportunities for stock perspective. >> so let's come back to some of the names that you do like. jamie, let me ask you sort of a similar question.

looks like we've got a lot riding on the hope that corporate earnings in the united states and aren't world more broadly kick in. do you think they will to justify some of the multiples that we see right now? >> i think it's going to be tough. i think this is -- i don't think corporate earnings will be as high as people think. i think the risks are definitely to the down side for corporate earnings. retail is not that great. but i do think there are some bright spots. one thing i will say for people -- people are paying too much -- maybe saying that rates won't rise. i think that's probably the most that the area of the market that is probably the most concerning to me, we probably will get a rate increase and it will cast a lot of people off guard. that is going to make markets fall in the short run. woib very careful about make the determination that rates are not going to rise. >> let me just drill down on that a little bit. are you saying that you think they're likely to rise next week when the fed meets?

july, september? or that it doesn't matter? they're just going to rise at some point? >> i think they're going to rise. i think july is the most appropriate time. i know a lot of people say september. i don't think june is right. i do think july will happen. look at utilities. people are really overpaying for utilities right now. and you're going to get hurt if you're buying up, you think that interest rates are going to stay where they are and they start to tick up. i think people needs to be very cautious about overpaying for them, telecom, staples, anywhere there is a yield stretch. >> let's go back to eric to some of the names that you say represent those pockets of value within the market. two you like and owned are tjx, t.j. max and home goods, my wife's favorite store and pepsi. >> the question was made about retail. i think that is probably true. tjx is a very good play that is

retail but not in the traditional sense. and i think that downward trend towards looking for off price retailing which tjx does very well through tj max and home goo goods. the same-store sales are 6% on average in addition to continuing to grow. the store base is continuing to be very consistent across the perspective of what kind of markets they're in. i think that's really a nice opportunity to continue to work the retail side of things even though the traditional retailers are struggling. by the same token, pepsi, while staples can be a little bit pressured, certainly because they're a good place for defensive yield, the reality is pepsi on an average basis over the last ten years revenues have averaged p 7% growth. it's been a little slower lately. but the cash flow the company continues to generate is really impressive and allows them to be very consistent regardless of the environment and make it a good opportunity for investors

with a long term perspective. >> thank you very much. jamie cox and eric showenstein, thank you. go to our website to see another big stock that eric likes right now. >> we're following a developing story. gawker just filing for chapter 11 bankruptcy. we have the latest in los angeles. julia? >> melissa, that's right. macher media owner nick denton is filing for chapter 11 to avoid paying a $140 million judgment to hulk hogan who sued against gawker for publishing a sex tape featuring him backed by billionaire peter thiel. he denied gawker's request for stay on payment. gawker is up for sale. they began with a $100 million opening bid. denlton said last year ahead of the lawsuit that they were $300 million. and he says he plans to continue to fight the hogan lawsuit

backed by thiel to continue operating gawker which filing for bankruptcy will allow the kplp to do. as the lawsuit continues, the sale of the company is unlikely to close. it's not so appealing to buy into a lawsuit with a billi billionai billionaire. back to you. >> all right. julia, thank you. take a look at tesla shares after today's session dropping yesterday. the shares are down again by 4%. the automaker denying the suts spengs safety issue brought forward by the nitsan response to the april 20th request for information, tesla said nhtsa has not started a preliminary valuation which is the lowest form of investigate torre work it does. we provided all he will information to nhtsa. they told us with very cooperated fully. the former managing editor of reuters is now with the reds institute for automotive research. paul, i want to get your take on

this whole issue and tesla's very aggressive response. they also point out in their blog post which, is i think, it has four or five reasons as to why there are holes in this report. they say a blogger leaked this information. >> i'm willing to believe tesla's story on this. this appears to be one car driven under especially harsh and unusual circumstances. so there is no reason to believe there is anything systemic here. the more interesting issue with tesla is a couple days ago they introduced the first buyer incentive. a new version with a lower powered, lower range battery for 10,000 less than the base price of the regular model s. and a buyer incentive is pretty interesting for a company that hasn't had to worry about that previously. >> so you're looking at lower

priced model s. some are looking for them to get the volume numbers up especially on the back of having done a capital raise in order to sort of stem the gap of capital needed to get that factory up and running for the model three. >> that is exactly what a buyer incentive does. it lowers the price so more people will buy the car. whether it's a tesla or chevy. that's what a buyer incentive is. >> what do you anticipate for demand for this? it seems they're going more down market and meeting in the middle. is this sort of -- do you see this as a preef you of the strategy that tesla will have to come where they offer the bridge lines between these models? >> absolutely. i think so. they really have done a great job in selling to the high end of the market. the base model s was $76,000. most of them actually went out doort, outfitted around $100,000. but that is a very fine part of the market. to wait for the model three in three years, that's going to be

a long wait. they have to do something to keep demand going in the meantime. i think you'll see more of this sort of thing. i think it's natural. it's part of the evolution of the company's lifestyle. >> paul, great to get your -- life sty cycle. >> great to get your take on. this thank you for your time. >> it is drilled into us from the moment we are born. you got go to college. president obama's daughter malia actually taking a gap here before she heads to harvard. but is college still the answer in this economy? we'll discuss that very issue next. here at the td ameritrade trader group, 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 competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time.

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significantly higher. and medtronic won dispute with the irs. they received a tax court ruling in how much of the profits should be taxed by puerto rico and how much should be subject to normal corporate tax rates. >> most more than kids are born it's drilled into us and then that you got to go to college. it best way to prepare for life and the workforce? malia obama who graduates high school to dale take a gap year before she heads to harvard. many others skipping the four year plan altogether. so what is the right way to go? thoughts now from a noted author, the book is called "there is life after college." and the venture capitalist who seeds student startups through the harvard backed x fund. gentlemen, welcome. good to have you with us. lots of gikids are taking gap

years. it's almost mormon than not. i assume i think it's the right thing. >> it's definitely a good thing. what is happening now is that we largely are shoving, you know, 70% of high school graduates through one path way to college throw months after they graduate from high school. but only 50% of them end up graduating in four years. and so manufacture them end up dropping out. they have some debt. they have some credit but no degree and that carries no currency in the job market of 291st century. >> you were a total slacker. you went to harvard. you got to harvard law and mba, editor of the law review, oxford degree as well. it seems to me as i observe today's young folks and the frenzy and pressure about getting into a college, getting into the right college for them, but then what happens is there is so much pressure on them to pick a major and decide what the hell they want to do when they get out of college that maybe giving them the broader sort of education that i think an

undergraduate education ought to be about goes about it boards. reaction? >> you know, i think it's a shame that goes by the boards. when malia enrolls at harvard, the mission of harvard college and other elite colleges like that is to educate the citizens and citizens leaders of our society through a belief in the transformtive power of a liberal arts and sciences education. nowhere in that statement do you see a statement like, hey, we're going to help you get an internship. i don't think there receiver been a time in our history when creativity, lateral thinking and something beyond the tech know democratic skill set is more valuable. and so, yeah, i think we must protect and value these four year liberal arts experiences. i agree with jeff. i think sometimes a gap year makes a whole lot of sense. it will be a shame to convert to advice rate the crown jewels of this country and try to make our educational system something purely vocational.

>> jeff, what do you say to that? a lot of people, the thinking, you know, behind going into a liberal arts college is to learn how to think, not learn how to do a set of skills. in this environment, in this economy, can you still do that? can just go to college to learn how to think? >> you need both, to be honest. you need to be able to get first job but you also need to get fifth job. i talk about in the book the yfd a t shaped individual. someone who broad and deep in one particular discipline and one particular subject. we know that liberal arts college graduates do very well in the job market as long as they also have some specific skills whether it's project management or coding skills. but you need both the specific skill and you need the broad liberal arts. and it's unfortunate that we get into this argument about whether higher education is for training or for a broad education? it's about both. >> how do you react to that, patrick? >> i guess the question is where do we get that -- the stalk of the t? where do you get that knowledge

that helps you in a specific field? is it in the four years in college or is it throughout your lifetime? and my argument is it's throughout your lifetime. and really what a college is plaent to do is teach you approaches to knowledge instead of knowledge which will become stale and which will have to be revamped throughout your life. so three years or four years or two years of some sort of college experience are about approaches to knowledge. how do you really get continue to learn throughout your life? how do you become a learning machine instead of a repository for knowledge of the moment? >> is college usually worth the money, jeff? >> it is if you major in the right major or where it's going to pay off at the end of the day and you actually graduate. part of the problem is there are 50 million americans with some college credit and no degree. the lashlgest segment of the americans are people in their 20s. we have all the millennials walking around with some college credit which makes them no better than somebody with a high school diploma and often they're

worse off because they have some sort of debt. it's worth it as long as you get that credential tend of the day. >> gentlemen, we appreciate you being with us. we thank you. stocks down right now. but they're off the session lows. so where can you find some safe havens? a number of names hitting all time highs. we'll name some of the names next. ♪ using 60,000 points from my chase ink card

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built for business. stock market under some pressure today. there are some winners, as there always are. take a look at the stocks hitting new highs today. some have pulled back from the new highs. edison international still in the green, up by 0.1. general mills, al tri a. waste management trading at all-time levels back to 1988. so historic new highs here. she's been a shareholder advocate for two decades. she weighs in over viacom. here's a big warning -- plus, she will have is a new warning on on companies. first, out to brian in dana

point, california. >> everything is overvalued. that's not me speaking. things could go super nova. how is he making money? what are his biggest concerns right now. we have an exclusive with bill gross in a few minutes out here on the west coast. more "power lunch" right after this. your entrepreneur of the week. the owner of girgies is shipping rope sandals to two dozen countries around the world. sunday morning at 7:30 on msnbc. will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us.

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take a look at the markets right now. we are just about at or near session lows right now. dow jones is down by 150 points. the nasdaq is the worst of the three, down 1.3%. the s&p 500 down by a full percentage point. we are watching the dollar dixie. it is up 0.6. the sectors we are watching closely, oil above 50 bucks a barrel. that sector down 2%. financials taking it on the chin. historic lows on treasury yields around the world. that is down by 1.3%. now to sue herrera with breaking news >> thank you, melissa. an officer-involved shooting at

dallas love field airport in the baggage claim area. apparently this is video shot just a short while ago. you're going to hear several sets of shots. and you can see the police officer in the far, far part of the video. let's listen. what we know is that one person has been transported to a hospital. we do not know which person it was. but obviously there is the police officer. it is an officer-involved shooting in the baggage claim area at dallas love field airport. there are reports that the baggage claim area has been closed in that particular terminal. there were earlier reports unconfirmed they were stopping traffic leading into the airport. however, in looking at the live

shot from kxas, which is the local affiliate in dallas, i did see some traffic moving into the airport area. but you can see there the police cars with their lights flashing. and you do not see traffic in that particular part of the airport. but if the pilot widens out a little bit, you will see traffic coming into other parts of the airport. it could be they have just shut down this particular portion of the building. once again, an officer-involved shooting. one person has been transported to a local hospital. tsa gave cnbc a statement saying they are aware of the situation and the incident but they deem it a local law enforcement issue and matter. we are reaching out right now to local law enforcement to try to get a statement and confirmation on which person was transported to the hospital. ty, back to you. >> a lot of gunshots. >> two separate rounds of gunshots. when we were looking at it earlier, what struck us is some

people were still standing there. there were two long rounds of gunshots. and people were standing there still. and then they moved. you can truly hear the officer screaming get down, get down, get down. >> get down, get down. get down. >> that's when you actually saw people start to move. >> i heard five shots in the second volley. >> we'll keep you posted. battle for viacom. it has raised interesting questions about the importance of corporate governance and whether a founder can have too much power over the board. an advocate for shareholders rights for many years. welcome. good to have you with us. >> thank you. >> lots of companies, many of them in the media business, including comcast, the owner

of -- parent company of cnbc, have these duel dual classes of ownership. is it ever a good idea. >> the only time i have ever seen it is like the "washington post" used to be. you want to have the separation from the mercantile side. for exactly the reason we say here. i always say a dual class stock system is a red flag. in this case it's an s.o.s. system. any time you have 22 lawyers arguing about whether the founder is is competent to make the decisions he's making now,

you know you're in a lot of trouble. >> it was a company like facebook. you mentioned s.o. on s. and red flags. which ones strike that red alarm? they're taking steps already to unscramble that and move the system. the transition for a founder maybe for a short period of time, maybe for newspapers. it has deteriorated. it has been taken away. but any other company, i don't support ill at all. every time there is a disaster you see this huge premium, $100 a share difference. it's the outside shareholders who get the short end of the stick.

not somebody who is no longer able to express his wishes. >> nell minnow, appreciate it. it is just after 2:00 p.m. two minutes past on on wall street. the dow fading again. stocks now around session lows. there's the dow. the s&p flat for the week. maybe a little bit negative now. now to bob on the new york stock exchange. >> hello, tyler. the s&p 500 at the lows for the day after rallying midday. the volume is not heavy. it's light.

we have two problems. first, dollar strength. this is why we hit lows. the dollar has been spiking. that's causing problems for oil and other commodities. commodity stocks is. chevron. most of the oil names weak throughout the day. they are hitting new lows as we speak here. chevron with the lows. low bond yields has been problem hurting the bank stocks the financials have been weak consistently, down 3%, 4% in the last two days or so as you see right here. finally a big tech ip coming to the tech line. a japanese messaging app. 35 million shares. $25 to $28.

this is on the heels of dow jones. bayer is making a new takeover approach to monsanto but at the same price. they want bayer seeking business information from monsanto. interesting headlines with regard to bayer's pending acquisition or proposed acquisition of monsanto. $122 a share the original price tag. we will watch them move in the afternoon trade as well. now over to brian sullivan. back over to you. >> thank you very much. welcome, everybody. we are here at dana point.

thank you for sitting down with us. >> thank you, brian. >> you tweeted out we're at 500 year lows. 500 year lows for interest rates. this is a super nova that will explode one day. what exactly is the super nova. >> a star in its last stage. there is no known or certainty as to which way it will go.

it's the last were stages in terms of where rates can go. and the repercussions we'll know in several years. >> the super nova, to your point can be an explosion or implosion. to me they're the same thing talking about financial assets. either way you are going to wipe out money. is that what is going to happen? do you think we will see a lehman moment? >> that's not exactly true for my way of thinking. a 250 can still go lower and people can still make money. that is what they have done in japan, believe it or not. 28 basis points. it is the most profitable investment this year or the past several years because the price keeps going up artificially. it can go both ways. i would agree implosion and deplosian, the other assets will be well served. because of the risk and low

rates of recession. either way, implosion for most asset categories or explosion, you know, it's not a favorable scenario. we're watching what's happening now with shares of the british pound and what's going on there. it is showing signs of weakness today. this is on the heels of a new report coming from the uk's independence in a poll that shows perhaps a little bit more of a lead coming out for those who favor a brexit from the european union. that particular story in the independent and associated and

the headlines along with it sent trading of british pounds versus the u.s. dollar. down ever so slightly in today's trading. we can point out here there is also an etf here that tracks that particular pound trade. that is the currency shares, british pound, sterling trust. the ticker fxb. those have taken a dip. certainly a development we will continue to watch whether they will leave or remain in the eu. >> the timing is very appropriate. i was going to get to it later on in the interview. but let's do it right now. who knows where the polls are. we'll find out that the 23rd of june. how big a risk is this? >> i think it is a risk. not necessarily because the uk might leave the eu.

but it's a risk that others might think of the same example. that france, by the way, or italy might suddenly decide their own domestic internal policies should be favored versus that of a larger eu family. if brexit wins, fear gets into the marketplace in terms of expectations for growth. how are you or how should you and how will you invest around that? >> that is one additional element that does not favor risk

assets. they are dependent upon growth. even in high yield market on relative stability. and to the extent from a geo-political standpoint that growth is threatened, then risk assets are at risk. of course currencies. the pound we just saw is weaker. one becomes more probable than the other, money moves quickly and causes in stability. >> i don't want to get too deep into the woods but the german government bonds are yield nothing negative in the short-term. so people are still buying them despite these risks. >> to a certain extent they have to.

i would think, but i don't know. but the stocks are doing worse. why do they buy them at minus 25 basis points? people don't. banks do. because they must invest somewhere. and so in this finance-based economy, the alternative is cash. there's not enough vault space to store cash. so they invest where they can on an electronic basis. >> does what's happening in japan and potentially in england and eu make u.s. assets, et ceteras, treasuries, corporate bonds, more or less attractive? >> more attractive. japan, the nexus of the last two or three week rally on treasuries, their 30-year bond is now at 28 basis points. so the japanese basically say,

well, 30-year treasury at 250 plus the possibility that the dollar itself strengthens, that's a double play for them. so u.s. treasuries benefit from the lower interest rates on japan and elsewhere. >> to wrap it up, we think of you as the bond king. with the unconstrained fund, it means you can kind of do what you want. you and i spoke earlier. you like certain mortgage leads. >> yes. they are near banks. they don't carry fdic insurance. banks are levered 8, 9, 10 times. they invest in government guaranteed access. but interest rates -- short-term interest rates and prepayments will disturb the mix. they are not riskless but they

carry an 11% yield. that is an attractive return relative to the risk. >> talking stocks and currency as well as bonds. bill, we appreciate you joining us. it will get real interesting the next few weeks. we'll be out with financial advisers later in the show. thank you very much for sitting down with us out west. melissa. a quick check of the markets on the back of that brexit poll. that's when stocks took a leg lower. s&p 500 as low as 20.90. now 20.91. we are at or close to session lows. a situation we are closely watching for you. call it a burrito battle. according to the latest poll, moe's is the most popular fast casual restaurant of this year. for three consecutive years previous to this, chipotle had

the title. bruce, great to have you with us. >> thank you. >> customers said, you know what, i'm going avoid the whole food safety issue and go to a place like moe's. >> we are a franchise system. we have owners who are doing a great job running with our brand. >> have you noticed an uptick in sales after chipotle had food safety problems. >> on the food safety front, we do everything we can to follow all of our industry standards to make sure those incidents are managed to the best of our abilities. >> what do you do to make sure that you are not tainted that

the category of southwestern food, quick serve, is not tainted by the problems that have cropped up at your competitor. in other words, how do you you persuade your consumer that you're safe and they don't need to worry about the category? >> yeah. so i think there's three things we have been focused on. one is our food. second is service and third is experiences. we have been doing everything we can to offer great food offerings. we are constantly remind consumers they have a great option in us. we have limited time offers. so we are constantly putting in different food items to experience the full depth and breadth of our menu. we have to continue to focus on all the things that drive traffic to our restaurants. >> just quickly, you have 650 restaurants.

chipotle has 1,900. what are your plans for expansion, if any? >> we opened 70 last year. we will continue at that pace. building out existing markets as well. competitors have a big jump on us. but this is validation that we're on the right track and we offer a great alternative. >> bruce schroeder of m on oe's. senior equity analyst nick. great to have you with us. >> thank you. >> do you think the customer base will never go back and opt for alternatives for a moe's? >> yeah. the quality of the food and the

quality of the ingredients has always been at the heart of chipotle brand and identity. and i think they are probably more susceptible than any other restaurant out there. i think there is a higher percentage of customers that aren't going back on a permanent basis. >> where does that traffic go? who is benefiting the most in your universe publicly traded? could it be a privately held company like moe's? >> yeah. that traffic is going to a number of different restaurants evenly. there isn't one that's exactly benefiting. from what we have heard from other ceos is if you're next to chipotle you're benefiting. it doesn't matter if you're in and out burger or whatever brand it may be.

it is more geography and real estate. >> got it. nick, thanks for your time. here's about the global economy weighing on stocks. right now the dow close to session lows. down by 170 points or almost 1%. what traders are saying amidst the selloff. that's next. review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep. you sound like a lot of medical students i know. [martha and mildred are good to. go. i stay focused 24/7 and never sleep. here's your invoice, ladies. a few stops later, and it looks like big ollie is on the mend. it might not seem that glamorous having an old pickup truck for an office... or filling your days looking down the south end of a heifer,

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stocks around session lows.

down for the week, except for the dow. trading lower kroos as the market weighs sliding global benchmark yields and so much more. joining us from the floor of the new york stock exchange, ben willis, princeton securities. gentlemen, good to see both of you. kenny, should we be worried? all of these big hitters saying trouble may be on the on horizon. >> listen, what they are saying isn't necessarily new. we have been concerned about a lot of these issues for a while. do i think we need to be so concerned? i think you have to be concerned. but i don't think you have to be like the sky is falling. it is easy when someone like george has $30 billion to make a big bet like that and then tell everybody about it. it tends to be a little bit news worthy and create a lot of conversation. we will see the market back off

a little bit. it is not out of line considering where we are. the fed, the brexit, spanish vote. get ready for a rough ride. but i think it's all good. >> how do you respond to what the most interesting man in the world just said? >> i'm sorry. i was sleeping. it is definitely worth worrying about and not just great britain. i will go back to when the markets were worried about the greek ex it. they never should have been in in the first place. this will set a precedent that will collapse the eu. the beginning of the end. we now know you have france, italy, all the other majors lined up to walk out the door as well. it is a failed experience. it didn't take into account the national pride of each nation and the fact that central bank

cannot control that kind of economy when it is segregated that way. it is north worrying about. but to kenny's point, the united states of america will benefit from the safe haven. our stock market is getting hit right now. my biggest concern is on the russell. after monday, a lot of economic news globally. >> we are out of time and can't even hear from the most interesting man in the world again. i don't own stocks, but if i did, i'd listen to what these men have to say. we are all of the selloff on this friday in the summertime. we'll be right back. almost summer. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close.

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>> hi, everybody. i'm sue herrera. here is your cnbc news update. increasing office budgets for the first time in years. but, again, denying themselves a pay raise. the additional money for staff salaries aimed at retaining young staff aides who struggle to make ends meet in the expensive area of washington. police shots were fired at love field in dallas in response to what appears to be a domestic violence incident. one person was taken to the hospital. passengers have been allowed back into the airport, but they all have to be rescreened. many young people with migraine headaches may have vitamin deficiencies. researchers at cincinnati children's hospital had lower levels of invite lynn d,

riboflavin. the ali procession arrives at is cemetery where the box great will be buried. they were chanting ali, ali! as the procession passed. that is the cnbc news update at this hour. i'll send it back to you, melissa. thank you very much, sue herrera. we did reach the $50 a barrel mark. we're not 49.08, 07. we see a stronger dollar index in today's session. bob is track the action here. all session lows it looks like. >> yeah. the stock market is getting smacked around by currency markets and bond market. take a look at the pound versus the dollar. don't normally talk about that. but you heard earlier, they jump in the lead campaign support. dollar up, pound down here. that's causing the dollar index to spike in the middle of the

day. that causes problems for the u.s. stock market. a lot of multinationals, it affects them. so we saw energy stocks, for example. oil moved to the down side. chevron i showed you earlier. see what's going on in energy stocks. big industrial names. making a lot of profits overseas. also down a bit. and then we have a problem with the bond market. with bond yields down, notably this puts pressure on bank stocks. so let's say currency and bond issues moving stocks. back to you. all right. thank you very much, bob cosani. the latest on gawker and the bankruptcy they just filed today. zip davis media will be the front-runner in terms of bidding

for the bankruptcy assets of gawker. $100 million. that's the standing off right now in bankruptcy proceedings. we have reports from reuters saying gawker media has now filed adversary proceedings against hulk hogan to halt the litigation against the company. they also want to seek to halt the litigation against the media group's nick denton, their founder. all of this a permanent injunction against the lawsuit that hulk hogan won against the company. and nick denton tweeting, even with his billions, thiel will not silence our writers. our sites will thrive under new ownership and will win in court. this is the latest from gawker. they have an axe to grind. they are trying to fight off still this pending litigation with the likes of hulk hogan and others. >> all right. stay with us. we will be joined now by godaddy

founder bob parsons. parsons extreme golf among his other ventures. great to see you. >> real good to be here, guys. >> we will get to golf in just a minute. why don't we begin with your reaction or thoughts about the global economic environment. with a vote coming up in england, destabilizing situations in asia. what do you see around the world? what is the business climate like? >> right now the business climate for us is good. i think overall on a geo basis for sure, all the signs are there. plus, the other thing i can tell you, i don't know why it is. but if you look at the end of eight years ago during the end of george bush's term, we had the real estate crisis eight years

before that. we had the dotcom bust eight years before that. it was softening. it always seems to be on this cycle. that is just something i've noticed. >> that's an interesting point. >> yeah. >> i want to get back to the thing we were just talking about as well. global golf is important. but gawker media, this was a new business, new media company. you have had a lot of experience with -- not necessarily new media, but emerging businesses here. this is new ground being broken with people bank rolling, other people's lawsuits. i'm curious, mr. parsons, about your thoughts with what is happening with nick denton and peter thiel who is bank rolling some of these lawsuits against gawker media. >> you guys know just as much as anybody, this country gives a lot of leeway to the press and, you know, the guys are given the

benefit of the doubt most of the time. but it comes with a lot of responsibility. this is an issue where maybe they crossed a line. i'm not that intimate with the whole deal. when our big courts issue these settlements, it's a huge slap on the wrist and everybody takes notice. >> let's bring it back to your core business. you have made your money in terms of go go ahead. what made you want to get into golf. you signed a number of high profile distribution agreements for your high end golf clubs. some are $5,000 a set. what is it that you see about asia that we don't see? you're going full bore into selling your very high-end gear in taiwan, japan, and korea as well. >> okay. well, japan is the world's second largest golf market.

korea is the third largest golf market. we launched pfg. what we found is that in the united states, 3.7 million golfers have high household incomes. and i believe that people with money always have money. and they are willing to spend it when it comes to having fun. golf is certainly that way. the japanese and the koreans and to a lesser extent the taiwanese also follow that trend even more so than we do. this move for us makes a lot of sense. >> bob, thank you very much. i still have my pxg hat you gave me at iconic a few months ago. at some point dom and i will come try out the pxg clubs. >> you're welcome any time.

>> ultra premium hat? >> it's just a nice white hat. the worst performing sector continuing its year-to-date lag. a financial fumble. guys, good to have you with us. what has changed probably in the past were couple days is we are seeing bond yields around the world hit record lows. jgb went negative for the first time. i'm wondering how does that change your outlook for financials here in the u.s.? >> well, for financials in the u.s., we're really cognizant most make money off lending long and borrowing shot. it is not looking good. the few financials that we have tend to be more companies that get revenues from fees as opposed to the net interest margin. it is tough tore banks and looks like it is getting tough er.

>> what are those names? >> b and y melon is one of our stocks and schwaab. >> when you look at financials, it is not just u.s. financials doing terribly, you look at them around the world. deutsche bank is down 6%. is there a risk that's what's going on overseas could actually impact financials in the united states even though arguably the balance sheets are the strongest they have been. >> yeah. absolutely. what is really driving yields down in the short-term really has to do with the concern around the brexit, which is adding extreme demand for treasury yields. so that's keeping the long end down. but interestingly, you look at what's happening with basel 3. foreign banks are looking around the world to where they can meet

liquidity requirements. basel 3 allows them to meet that requirement anywhere. that's adding an additional demand for u.s. you treasuries. it will keep the long end lower than it might otherwise be in, you know, even a slow recovery. >> so foreign financials are bidding up u.s. you treasuries, which are hurting u.s. financials. >> absolutely. >> interesting. thank you for your time. appreciate it. gina and kim. for more head to tradingnation.cnbc.com. brian in dana point, california. >> melissa, thank you very much. we have talked a lot about big picture issues, brexit, low returns everywhere, negative yields in japan and germany. what do you do with all of this information? coming up, two financial advisers with real actionable and practical advice just for you. and now the latest from

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let's get some practical advice, chairman of first foundation and chad shields, ceo of shield wealth management. thank you for joining is us. rick, first to you. we have heard a lot of scary things. brett said all of this negative yield. hard to find any yield in this world. where are you getting relatively safe returns. >> right now be careful what you own in the municipal bond area. >> mini bonds as a group are overvalued? >> largest holding was priced at 135. a lot of depreciation will take place over the next 15 years over that bond. for that, adjustable rate bank

debt where you don't have the duration risk but you are taking credit risk. another area, high-yield bonds. hyg is selling 100. agg is selling at 107. bill's approach in terms of looking at the explorer is i think the way to go. bill gross we look at as the wayne gretzky of the bond world. it is not where interest rates are it is where they're going. >> chad, you're a younger guy. you're focused on the younger investor. by the way, who has been burned through the financial crisis, right? looking at almost no yield, no returns anywhere. first of all, how do you convince a 35-year-old or 40-year-old to even invest in this kind of environment? >> most of the people that i'm working with are actually baby

boomers. it is active leadership. leading from the front. giving sound advice for their particular situation. you know. >> everyone is different. and so we really just try to really cater to that individual. >> what's the mood of your client? >> the mood in germ, especially for the younger folks and everybody, they've been burned. they are nervous. they're scared. there is definitely a trust paradigm. a lot of good advice as well. we do what we can. >> i'm glad we're talking. so take this -- i mean this with all due respect. it is hard to talk to financial advisers, give me your ideas. they're all different. different age, risk spectrum. for the general, if we could make an average -- no client is average, i get it. but for the average client, what do you advise them to go into today that's a little bit of return, not too risky.

>> we have been buying a lot of publicly traited traded reits. the very nature of the bond market is it's going to have to get more creative. it has created this environment unlike anything we will see in the future. it will be partnering with people like bill and partnering with advisers that understand it's not going to be the same. we will have to do things differently. and we will have to lead differently. >> so i assume and i hope, if you guys watch cnbc, right? >> every day. >> thank you. we love you for it. we talk about the feds, brexit and china. what do you talk about? >> where will they get the -- >> they call you, rick, i'm scared of -- >> almost everything. i think the election is top of mind.

you have polarized candidates there. also in terms of the fed, the rising interest rates. do you think the fed will raise rates next week? >> not next week. but i think july is on the table. >> it is a real pleasure, guys. we'll have a panel coming up soon. thank you both very much. by the way, folks, we are all over this market selloff. risk off day if you want to call it that. stocks are down. the risk of a brexit is up. dow down 0.9. nasdaq down 1.5%. power lunch back in two.

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show about the first treasury secretary of the united states. "hamilton." the numbers are mind-blowing. i'm not talking about the musical numbers which are mind-blowing too. it's grossing $2 million every week. if you're lucky enough to get a ticket, you can expect to pay hundreds now or in some cases thousands of dollars. it is raucously good. here to talk about "hamilton." is jennifer, author of "untold stories of broadway." welcome. $1 million a week in box office sales. how much profit are they making in profit? >> about $1.25 million profit a week. >> a week. >> yes. >> this doesn't even speak to that $1.9 million, the ticket sales in the aftermarket, where they're going for today, sunday.

we looked at sunday's aftermarket on ticketmaster going for $2,900 for seat. >> the average retail price is about $875, which is $700 higher than the average ticket price. >> what has "hamilton" meant for broadway more broadly? >> it's been a historic record year. 16 tony nominations. they'll set another record if they win on sunday. >> there are some good other shows "color purple," "book of mormon," disney shows continue do very well. with unof t one of this things people are interested in is the star of "hamilton" is leaving in early july. is this going to hurt or help the longevity of the show?

>> history has shown us that it's dependent for the stars. it's healthy to have the initial actor leave to show the show is the star, not the actor. >> when you look at the most tony wins, it was largely associated with the two original stars, math rue broderick and nathan lane. >> mm-hmm. >> when they left, what happened? it wasn't able to keep the audience? >> the producers didn't run as long as cats which wu not dependent on actors. it looks like it won't be dependent on those actors. >> why has this show connected the way it has? you were just saying -- >> i went to my niece's eight grade graduation and three girls borrowed a song from "hamilton" and composed their own lyrics

excessing their experience. is this a "hamilton" phenomenon? is it going to bring a new generation or do they love "hamilton" and only "hamilton." >> he's about pop culture and history. he's brought together all of this that's introduced a lot of people to theater, people who tune in to the tony awards will tune in to see "hamilton," but they may buy tickets for "waitress." >> my son has memorized the lyrics to the entire show. kids his age and teenagers are enthralled by it. is lin-manuel going to win or -- >> i hope it will be historic ties. >> diplomatic.

jennifer ashley temper. thank you so much. the s.h. is short the s&p. dow is short the dow. psq is short the nasdaq. "power" returns in two. my experience with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life.

here's to breaking more glass ceilings in golf and everywhere else. kpmg. continuing our commitment to the next generation of women leaders. welcome back to "power lunch." here's where we stand. s&p down. nasdaq down. let's take a check on the s&p

sectors. financials really taking it on the chin, down by 3%. we've been talking about it all show round. these record low yields, japan bond hit negative territory for the first time overnight and we're looking at a yield curve for the twos and tens spread. that's narrowing. we're also seeing negative action on the consumer n discretion. energy stocks crushed by the or. we've got dom chu to make sense. >> the move in sterling, british pounds, down, and the rise in dollar not helping the commodity trade at all in that sri expect either. but what's interesting in terms of yields and places like japan and germany, it's dragging down our own yields as well. again, moving higher because people just view it as a better alternative than having to pay to keep your money somewhere else. 1.63. 1.62 1/2 is what we're seeing.

we haven't seen that since the diamond bottom in stocks. and interesting move. dom, thank you very much. maybe you can afford the expensive golf clubs. thank you for watching "power lunch." >> "closing bell" starts right now. hi, everybody, and welcome to the "closing bell" on this friday. i'm kelly evans of the new york stock exchange. >> and i'm bill griffeth. a very newsy day. voters plan to leave the eu. global bond yields have been falling. just getting crushed. european banks have been getting hit all day, and weakness in the energy sector with the reports of an increase in production here in the u.s