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. not helping

stocks as well. we're going to dig deep sbeer the pullback throughout the next hour here. >> tesla shares were also getting hit on the back of reports of a suspension problem. now, the automaker is vigorously defending itself in a statement. we'll bring you all the latest details coming up. >> meanwhile next week apple's worldwide development conference getting under way. it could bring an interesting announcement in an area you're interested in. ipayments. >> i think you invented that word. is that it? ipayments? >> i made something up? wow. >> i have no idea. but we will find out from our josh lipton what they might have up their sleeve. let's start with the broader market. yield collapse strengthened. the ten-year yields in germany, japan, and switzerland all hitting record lows. >> just stunning. and the ten-year yield here in the u.s. continues to drop falling to its lowest level since february.

this yield crush around the globe all happening at the same time the s&p had been climbing back toward all-time highs, just not today as we're seeing that market come back down with the s&p now down 24 points and the financials in the u.s. and europe getting hit hard very much as well. let's turn to our senior markets commentator mike santoli for your thoughts on this day. i mean there's a clear sent meant right now. >> if you had to explain to somebody who doesn't follow the markets, why are we concerned about money getting cheaper and borrowing being less expensive for everybody. we're explored the streams with the central bank effectiveness. i think that's what has people so concerned. negative yields on so much is pressuring them and i think european banks probably could be arguably the epicenter right now. if you look at the stock performance right now, they're not far above their january and february lows.

this is a little reminiscent of the sovereign debt crisis. the difference is we're not talking about the solvency of the institutions and holding government bonds. it's because they can't make money. they're almost being forced out of the main areas. and by extension are we going to have any creation in europe. all that stuff spilling over to our end. bringing treasury yields down to levels that usually tell us there's some kind of deep stress in the u.s. economy which we're not really seeing in these measures. >> the markets aren't as low. they're near record heise in the u.s. if it wasn't happening, i think the narrative would be very different and much more ala alarming, but do you think they're propping up because they're looking for quality? >> i can't escape the idea. yes. i keep going back to the fact that in dividends they pay more

than $400 billion. that's more than twice as u.s. companies pay on their corporate debt. so it's one of the main sources of reliable -- somewhat reliable yield in the world is stocks. that's distorting because you don't want people in the world going, i'll buy big american stocks when i would otherwise buy risk-free bonds. >> how much of this is attrib e attributable to the polls we're seeing on brexit? >> that's an exacerbating figure. brexit without a doubt is one of those events that's hard to handicap. you don't know how the economies and the financial markets are going to react. you had the german finance minister say, you know what? if they vote to exit in britain, there's not going to be a halfway measure to maintain some kind of economic ties as part of the community. i think that could be of a concern. >> it also feels worth pointing

out the yields that they intentionally push and yields going negative anyway. when we saw japan pushing its short-term yields into negative territory, there was a real backlash and now we have a big bank that may no longer participate. the central bank saying, fine, we want you to do riskier stuff anyway. the difference is it's not about that anymore. any bank that looked at that experience is still seeing across the curve all sorts of yields on its debt tag into negative territory. >> the question is does it cause preverse behavior. in other words, the opposite reaction that you see. does it cause everybody from saying, you know what? i'm not going take more risk because yields are negative. i'm actually going to conserve more cash because i need to save more in order to make up for what i'm not getting in yield. we don't know the answer to these questions. that's what they're forcing us to ask. >> all right.

thanks, mike. we'll see you next hour. mike santoli. meanwhile janice's bill gross was on at "power lunch" where he referred to some of the debt out there as supernova. >> the supernova, by the way, can either explode or -- >> implode. >> -- contract, implode. that's sort of reflective of deflagsz, the implosion, or inflation, the explosion. with 0% interest rates and in many case negative interest rates, it's the last stages in terms of where rates can go and repercussions we'll know in several years. >> let's talk about it. bill swanson is with us. steven sarge guilfoyle from deep value is on the floor of the new york stock exchange and rick santelli checks in from chicago.

gym, what you do make of it? i know you've recently started to pull back, but are you concerned with what's going on with yields around the world, the supernova as bill gross puts it? >> no. i don't see the supernova or the final flash before the end. i think we're in for more slow growth, no recession, and what's concerning to me, he's dead right. it's robbing these companies the ability to raise prices and their margins are getting squeezed. that's why i'm concerned about money leaving bonds into the stockmarket which are riskier assets. >> the other was the consumer senate found u.s. consumers, their five-year expectation dropped. it was a record low. how does that play into everything here. >> it's been a little of this, a

little of that. it's the u.s. dollar. we saw the pound collapse after the brexit poll that the independent did. that's doing a number on it except for gold. people are scared and running to gold as well as the treasuries and the vix. i think seven out of the ten in the s&p 500 are down. there's a rask and people are going to find cover wherever they can. >> rick, what do you make of this fearful economy? the fear continues. do you sense we're on a climax yet? >> see, that's the problem. i agree with most of what bill gross says and i like the term "supernova." where it gets off my particular rails is that almost implies a certain urgency.

i think i agree negative interest rates aren't going to be good for any economy. but it's not going to happen quickly. it's going to happen with big hfr time volatility. i really liked the conversation that you had with mike because traditionally -- and this is important because when we talk about the u-curve, bill. everybody talks about it flattening. it may mean this, but maybe not. the world's different. when the world sees the interest rates going down. they jum top the conclusion that traditionally it means things are getting bad, so it is self fulfilling. mike, my hat's off to you. it's self-fulfilling. they don't get the outcome they want. why do they keep doing it? i'll leave you with one final thought. let's get to macrohe here.

we have debt and extensions of the countries manipulating low. the more you think about it, it doesn't sound like the way we're supposed to proceed. it sounds self-serving. it's rat's northwest and policy makes it worse. >> jim do, you want to get micro for us and tell us where you find value here? >> one thing i wanted toade, don't forget the ecb started buying this week. in europe, the stretch of hybrids has gone up again. i don't think this is the end of the cycle. i think we're in for slow growth, but companies had a lot of power to raise prices during that cycle, and that's starting to ee evaporate, and i think that's troublesome. >> to kelly's point, though, if

you're diem fa sizing the u.s., where are you going? are you going to europe? and if you are, what are you going to buy? >> i wouldn't. look, they're trading 85%, which is like 17.5. that's pretty normal for europe. that's not a garn. no one's talking about a great resurgence in growth for europe. i'm overweight in credits, not equities. >> i was going to ask if it's gold. >> can i add something? >> yes, please. >> no one's going to diem fa size the usz. if it goes the wrong way, there's going to be a cascading effect across yurm. plenty are going to want to leaved a that's going to cause a safe haven here in the u.s. >> you mean other countries are going to want to do the same. >> exactly. there's going to be a lot of people who aren't very happy and

the u.s. is going to be your safe haerven. >> what's exactly the right desikd decisi decision? everybody thinks leaving is wrong and that's why everybody is voting. >> not really, rick. >> oh, yeah. they don't like -- >> leaving might be the big decision. if i'm a british guy and i've been told what to do by the president and other people, i might go the other way. >> short term is a dice aster. >> before we go, sarge, what kind of levels are you watching? >> we've had technical damage. 2093 was my trouble in the sand. then we got hit over the head. i'm thinking if we can regain that level before the end of the day, we can mitigate that damage. 2089 is another.

i'm talking about the s&p 500. >> right. >> yeah. >> exactly. >> cool. thank you, guys. >> you're welcome. >> jim, sarge, rick, signing off here as we have a little more than 45 minute going into the close. the dow is down. the s&p 500 is down 25 points. nasdaq, it's down about 77 points. >> very volatile this week. under pressure, tesla. questions about suspension problems in the model "s" and confidentiality agreements customers have had to sign. and apple pay via iphone messaging could be on the way. >> you're watching cnbc, first in business, worldwide.

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camera as we balk by on the floor. >> those would be the girls who invest and are here to ring the "closing bell" and some guys, by the way. >> have you seen this? look at that. 12. %. the nation's tax prepayer boosting its dividend by 10% to 22 cents a share. the company says it's intensifying its focus on the losses. >> nice move for h&r block. federal regulators reporting on suspension problems on the model "s." they're down. regulators are also moving into related noun disclosure agreements. at least one tesla owner said he agreed to keep quiet in exchange for repairs. tesla responded saying there's no defect, no investigation, and no car company cares more than it does about safety. wrapping up. a blogger edward niedermayer

fabricated the issue. >> let's talk about this. intriguing story, david, l.a. bureau reporter at automotive news. first of all, what do you make of all this? >> i think it's important to first point out a lot less is the issue of the suspension. it in ha has opened -- it's not even an investigation. it's a preliminary report at this point. it could potentially be interpreted as saying you cannot talk to nhtsa and report this issue to the government. >> have we confirmed that? do those nondisclose euro

agreements exist? >> i have seen them and this is based on niedermayer's post. i have seen the mda and read it, and the language is vague enough. i sent it to a lawyer who i know well and who looks over mdas regularly for clients just today and he was saying in his view the language is vague enough that it could be interpreted as to say don't talk to the national highway traffic safety administration about this. the mda is the mda. i talked to someone at tesla. they say while they're adamant that this is not the case for the language, they're going to make it more explicit to say, okay, this is an mda, but it's not barring you from reporting this issue to nhtsa. >> what is it meant to bar you from? >> i'm sorry? >> what is a nondisclosure agreement meant to accomplish then? >> yeah. who are you not talking to? >> it was basically tesla

covering their own buts by saying, look, we're the benevolent tesla. we're willing to cover some or all of the costs of your vehicle, but in exchange for that. after that, there's no more lit gachlgts you can't use it to help us furtherer down the line. them covering their buts. >> i wasn't familiar with this. what can you tell us about how he's regarded in in the industry? >> i will take issue with the fact that in tesla's response today or last night, one of the things they pointed out is that mr. niedermayer has a long axe to grind. he's been critical but not real critical and then they went on so far to say mr. niedermeyer is doing this because one of his people are shorting tesla stock. to have a billionaire tied up in

tesla's stock accuse what i think is a reasonable issue, to say the dow is his motivation was a little -- it didn't sit well with most journalists. he's had an interest in keeping tesla honest. i don't think this is anything different. >> we're going to go, but clearly tesla marches to its own drumbeat and this ba speaks to that? >> what do they make and what are they trying to achieve with >> i think they wouldn't touch it with a ten-foot pole or the language in any such agreement, they would say this is protecting us but by no means are you prevented from alerting the government about this.

like i said, they're going to amend the language going forward. >> david undercoffler from automotive news. thanks. >> thanks. we have full team coverage of today's selloff in just a moment. we'll go live to the nasdaq for the big loaders there. plus, is apple pay or imessaging on the way? we'll tell you about that next. >> also noekt, julia boorstin ups her quotient. that's not an easy thing to do. we'll show you coming up after this. she's rocking that thick. ♪

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here's a look at the dow. you can see in the top left of your screen there, verizon is actually in the lead and for the week it's the leader on the dow. it's somewhere in the range of 3 president 5%. intel, nike, coca-cola higher. also on the flip side, georgijp getting hit again. and you heard of a drop of same-store sales. analysts had been expecting a 1.1% increase, though, shares

are down 6%. >> meanwhile the apples have been gearing up. josh lipton is here to tell us about an apple pay feature in the works that could be a game-changer. josh? >> well, bill, reports are coming fast and furious. here's one rumor. that imessage might support person-to-person pay. it allows you to send texts, photos, video. it's a great service. up to 200,000 are sent each second. why not add each payment. would apple make real money off the web directly, probably not. here would be the benefit. it would be like paypal.

that would pack it easier to buy music and other services, ought to think about it. it could be a venmo killier. we should emphasize it's rumored right now. refuses to accomplish. >> did you see the 60 minutes on them? >> i did. we're looking at the disrupter 50 list. this time we're spending our time on the. >> they're pioneering with what

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infusion victories. mull lens says this is just the zbimt were. we don't rememberworking without in it in system form in the world around you and you document have too ware. it's going to show we missed all the years. >> mull len says with all this talk of robots replacing humans, his technology con bins artificial technology, economy, and a huge one. i have to say i had a lot of fun playing around with this. >> i know. i want to give it a try. what else can dow fwh? >> you can imagine if you put

one on and is someone gave you instrulkzs how to ply an ape you can see how it would be valuable for surgery. you can be someone here giving you instructions. there can be someone thouuss. these very cool. does does that -- >> it has nothing to do with the straw ber. they're concerned about q and r code, there's a couple coming up. discussing fis academy.

that's coming up. >> mean tile the market. bop pisani on the middle of the floor. bob? later in the week we've had a problem with smals bound u schenn rorchd. late friday we foye el shoaled that them to leave. that put praush on the british pound and so we saw a lot of commodity names as sep ron week as more. we call them high beta energy names. here's weapons of. this. the one thing u would piped out

is the volume is nod heaven. that's a big mover, a big trading stock. i think the key thing about today, while we're seeing weakness due to the dollar meyers this i it. it's more like it might face some fraern. >> thank you in a little bit. let's get toal cnbc yuch date with sue herera. sue? >> here's what's happening this hour. it's all due to a calendar quirk where when wf pate in april. the may 1st fell on a sunday. >> the u.s. approving flights from other than footnote it tar dame. american jetblue and swefd a

loij the. the university of minnesota will hold a posthumous i saskatoon, prince. it began br prince's al 121 cents death. and a silo is getting quite a bit of imagine naj. ire paying homage to her kre renltdly deceased husband chld and she f seer her husband. >> they did a glt job. >> it is. it ought is gain store and she decided we're going to tackle this project. >> very cude.

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24 minutes left. the dow down 130. the nasdaq down 66. tough to find any green. less than one row of those stocks are higher today. everybody else lower. looking at the metals as well with the dollar declining. gold and silver moved high owner the week. more economically sensitive copper is lower this week so far. kelly. >> it has been struggling, bill, thank you. i'm on the floor with matt che

cheslock. what are you noticing? >> i would think the market would be down considerably more, especially with all the negative news. you know, it's almost down exactly what the transports are down. so we're seeing signs to follow. you're trading off. certainly what considers me most is this is a friday in the summer. what happens on monday? everyone gets panicky. >> everyone is supposed to get panicky. stocks have held up as well as they have. >> they certainly have. near all-time highs and gold hasn't busted out of any kind of range here. it's had a nice week. but with all the news and global yield worries, wow you'd have expected it to really, really take off. it hasn't gotten there. we may see it. >> we have a block party to get

to. >> let's head to the closer with the dow right now down 135 points. just off the lows. we were down about 190 or thereabouts in the lows on the session. chipotle, just off the e. coli outbreak and now they've taken a new plunge saying from a new study it could end up to be 35% more calories than competitors like mcdonald's or taco bell. have a bull and a bear taking up the case of chipotle in just a moment. meanwhile southern california will get a new railway aimed to ease congestion on the highways and it hasn't cost the taxpayers a dime. we have the story of the brightline next.

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welcome back. here's look at the dow. the s&p is down by 21.

the vix is above 17 now. the small caps are lower and the nasdaq is down 2. >> all right. uber may be cruel, but old-fashioned ride sharing is not dead at least in california and in florida where trains built in the golden state are helping to solve transportation issues in the sunshine state, believe it or not, and it hasn't cost taxpayers a dime. really. jane wells is in california with the latest on this 21st century travel story. jane? >> there are two crazy things about this. one, there are businesses. here at the siemens facility in sacramento they're building these trains for florida. siemens is building the train for florida's brightline. it's a high speed rail line opening up next year starting in miami, eventually going to orlando. here's the second crazy thing.

it's completely privately funded. compare that to the $68 million and counting that california taxpayers may have to pay. both make you get out of your car. the president used to work for disney. >> at the end of the day, we know we've got to do one thing and we have to change our behavior o little bit. we have to convince you to get out of your car and convince you on a much smarter way to travel. besides come convenience, we'll offer a competitive price point. >> commuter rail is hot. >> we're building for denver. >> all here. >> all here in sacramento. >> so why here in california

where it's so high taxes and regulations? cahill says the work force has an enthusiasm unmatched anywhere. the sun. 80% of their power is coming from it. sol solar. >> this is interesting. all the others have struggled to get off the ground. >> no kiddinging. they're start in miami, west palm, cocoa and make a left to orlando. what the key is, they already have the rights to the existing rail corridor. they're going to make money on retail and rezzal and hotels even if they don't make much money at first on the trains.

>> i'm going to quote from david darst. you need cost, comfort, and convenience. >> i need one. >> the see pull i have da pass. >> again, call it consolidation. more jitters. the odd is show that the britons are more likely to leave the european mark. >> look at that nasdaq down 1.35%. the worst performer of the major averages. we'll go like and find out

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the glargd is in time squafrmt susan li, what's going on there? >> it looks like the winning streak is coming to an end. we're at 60% of the 30-day average. let's look at the individual losers so far. amazon, when it comes for the biggest points decline, amazon is the biggest drag. going the opposite direction we have walgreen. they're flying today up over 4%. this looks like it's after the fdc is going to approve a deal with rite aid with certain conditions. tesla is also a mover, another big decliner in the session. this is after possible suspension problems with the

model "s." nhtsa saying they're looking into this. but it looks like that three-week winning streak is coming to an end. back you do guys. >> all right, susan. thank you very much. susanly at the nasdaq. susan hunt from alpine funds. what do you think is going on? >> i think everybody woke up and said, oh, my goodness, rates are very low. you saw european banks get hit very hard. they're wondering what it's doing for the banks and what it might end up doing for the equities. i think there was a big psychological shift. sometimes we wake up and have these days and people say i don't think this is actually as good as we thought it was. >> but you have a couple of picks that you think could work in this market. >> if you think about what is going to be still something that people are interested in.

dividends, bp has a strong dividend. athink that's a good place. when we think about longer term, you still have a lot of people who have a lot of work to do, and diy is becoming more and more something they're doing as they're looking to sell housing. >> the mackerro picture, does i give you pause? we've been hearing more and more managers saying they're diem fa sizing u.s. equities right now. you seem to be hanging in there. >> it's a hard thing, right? because you look atover stockmarkets. the u.s. is not doing fantastically, but it's not doing as bad as the other plauss. i think there's a little bit of an issue. i think there's a real concern we keep trying to make real highs and we're not. yet stocks are still at highs.

at the same time we can still find the opportunities and i think that's what you've got to do. >> you've got to be taking on individual stocks. >> would those european banks be an opportunity? are we there yet? >> i'm not a financial analyst. >> are you buying them when everybody else is selling them? >> i think it's one that nobody understands how it's going to filter through. i think that's why the equities are struggling so much. they're basically saying to the ecb, hey, this is not working for us. this is really a problem. so i don't know where the equities sit. somebody will be bold. i'm a little bit moretries and industrial, so i would be a little concerned just because we don't know how this is going to flow through. >> that is for sure. thank you, susan. have a good weekend. >> we're heading out. the dow down 112 pointss.

we'll be back to wrap it up in just a moment. and they're probably splitting champagne today celebrating the bankruptcy of arch nemesis gossip website gawker and what this means for people in the industry. you're watching cnbc, first in business worldwide.

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welcome back to the "closing bell." we've got a news report from amazon. amazon is preparing to launch its own stand alone streaming music service. this service is expected to cost about $9.99 per month, which puts it in line with other online streaming music services. its launch anticipated to be sometime in the late summer, early fall. remember, this is following on the spring announcement that they were going to launch their own prime video service for just the video as well. so perhaps if this does come to fruition, just the next step along the way for amazon starting to put its online catalog of music and video. bill, back over to you. >> all right. we'll see if alexia is there to help you choose a streaming

service. alexia, and now they're all answering at the same time. bob pisani is here. >> my pandora and spotify. i don't need them. >> things started to falter. the dow industrial average down 12 122 points. >> we're essentially unchanged. for all of these drama with the bond market and all the drama with the currency markets late today, we're essentially unchang unchanged. is there much of a floor after were able to close above. today we went below that and we mad word that we saw another blip up. not a huge one but a blip up. >> today was largely a problem around currency. the dollar strengthened in the middle of the day, of course, on concerns about the brexit vote.

>> credit markets, the real feature this week. our ten-year getting down to levels we haven't seen since february, so that took us down to about 1.65. we're at 163 right now. the real eye opener, you could point to a lot of them. the ten-year bund, down 1.9. >> two basis points essentially. this was a major problem. bank of america, for example, down 4% this week. and we saw some real more serious damage amongst the european banks from the bund yields. >> quickly on gold, it popped again and lots of people out there saying they could see it go higher. maybe a lot higher. it remains to be seen. we're at 1277 in today's trade. >> we saw industrials weak today

as the dollar moved up and you get the hit from some of the big industrial names. >> thanks, bob. >> all right. >> see you later. 120 or thereabouts on the dow industrial average. girls who invest closing it out, ringing the ball and ratos for nasdaq. the dow closed down. 17,900. remember, we traded about 18,000 this week for the first time in quite some time. the s&p down almost 1% today giving up 1 points and it's back below 2100. the underperformer. we told you about that last hour, giving up 64 points today. it was worse than, that closing

just below 4900. now, coming up, gawker filing for chapter 11 bankruptcy protection fighting against peter thiel. now let's get to today's panel. joining me is michael santoli along with jon najarian of na jeerian family office and na jeerian advisers. welcome. >> great to be here. >> steve grasso of stuart frankel will join us off the floor in just a moment. this is a step back after a pretty successful week or whether the bears are opening the door here and there trying to press the market. >> if you take it from a fairly broad view and look only at the stockmarket, it looks like a tiny wiggle at the end of a strong run. tomorrow is the four-run mark. not so bad. overdue for a pullback. but the fact that so many other

markets are having these extreme moves in terms of body yields. you had the vix up and the set that there are a few macro things that there are to be feared of. >> where are you seeing the action, john? >> over seas. it was pretty quick and pretty harsh, kelly. after the polls came out moving the brexit to the highest numbers i've seen. 55% to 45% to remain in the european union. you know, these polls are not worth an awful lot, but as we get closer and closer to the 23rd of june, i think people are miss preissing a lot of that risk because i do think it's a significant risk to global markets in the short term.

in the short term. not overall. if you could jump in a time machine and say would that be big and bad for the united states, no. increase in volatility. could cause folks to get to the sidelines. if they get to the sidelines when the market has failed a number of times at 2,100 or 18,000 for the dow, that just makes, you know, a test -- a 10% test or more all the more likely. >> streev grasso is here off the floor. what do you say? we mentioned that the dollar was stronger in the end. >> i think that was the big take awaichlt the brexit poll was the highest its been. you saw the s&p sell off. whether or not you're expecting that, that's what's happened today. everyone forecasting what will happen just in case or it's there. risk auchlt we have a bunch of

headlines next week. >> the fed meeting? >> exactly. everything we knew coming down the pike is coming down the pike and we're either going to have to trade it or fade it. volume has been light. we'll have to see what happens but it's risk off. >> the other this is oil's bin down. it's helped high yield managements and allowed people to think we don't have this kind of inflation we had in february. now we're going to have to test the stockmarket rally. maybe it's this pullback. it's another piece of it that you can't say, oh, that's falling into place. >> exactly. >> i would say june is still on the table. >> you're capitulating. >> i want to say it's still on the table. you know, zero's a big large

goose egg there. i would love to think it's still on the table. if we're above 2100, think i we leave. let's get it every over wit. >> right or wrong the economists are saying that jobs report just took it out of the equation. i think most people said this now puts them in a better safe than sorry mode. do you think that interpretation is wrong? >> an uber poll would say this

is not -- a miss of this magnitude is nothing. it's just fuzz. it's -- it shouldn't matter at all. however, they did also revise down april and coming as it does with brexit and what we've already talked about, the potential for that, i can't believe that the fed would be ahead of that. now, if they wanted to put off their decision, 14th, 15th next week that they're going to be talking about this and deciding that they're not going to do anything, nonetheless, if they wanted to, could they do it after the brexit? could they do it the 24th or any time leading up? >> with all due respect, where were the economists a couple of months ago? they had june as a possible fed raise hike at 4%. where were they? it's always backward looking. the fed wants you to be on your heels. >> hang on just a second on this very point.

let's bring dominic chu in on this conversation. >> what's interesting, kelly, not that long ago there was a single probability of pricing in a june hike and then all the fedspeak came out preparing the market for what could be a june hike. but let's talk about the economist's view because we've put together a samably of some of the views for the rate hike any part of this year. now, the general consensus perhaps is a june 1 is off the table. we'll see. june might still be a live meeting, although much of the market doesn't seem so. however, there are a number that think that july is still a possibility. this summer is still on the books make for a rate hike. among thoeft, actions, economics, jpmorgan chase. the interesting part of the case here, we'll bring up one of the cases in the case of a july rate hike. why they're saying a july rate

hike could be there, you name them, bar clarks they think a possible september hike is on the table and the economist teams at morgan stanley, rnb and i could be. w we don't think one bad employment one is enough. they're saying that one data point in jobs not enough to derail a summer rate hike. now, there's also a case for september. this one's interesting as well. merrill lynch says it seems most consistent with yellen's high risk aversion. perhaps a middle ground. and why we won't possibly see one up till the end of the year.

and why we won't possibly see one up till the end of the year. they say we maintain our view that the fed delivers only one rate hike this year and that's december, possibly beyond some of as i'm channeling my inner steve liesman because he's not here, that's what the economy thinks so far. we'll see if that comes to fruition next week and see if there e's any commentary. back over to you. >> beautifully done. thank you so much. can i just -- dawes we're running out of time. can we talk about amazon because this is going to come and go all of next week. amazon is going to launch a streaming music sefs.$9.99 a mo. the stock is trading way up there. look at what pandora has done. it's down a little bit on the news. >> it sold off right as the headlines were crossing. it's one of those things, amazon can enter the market. it doesn't make that much of a

difference. long term it memes customers are sticky and somebody else gets hurt at their expense. >> do you like it? >> yeah. my darts use amazon for a lot of the shows and music. so the longer they can make sticky, as long as they can keep people tied to it, as long as they can tie it into a prime service, it just means bezos is going to have more and more clients. >> more leverage. the tv shows help us sell more shoes? >> amazon checks a lot of boxes. i've been bullish on the name, but there's a retracement level where it broke right before the market started to rip again. it was 696. you're in nose bleed territory, but right now with the market, a little squishy. >> actually every one of the

last five years along the amazing run, it's already had a 12%, 20% draw down on the way. >> we'll leave it there. as we do, why don't you guys leave us with a sentence of are they or aren't they fed hike rate based. >> i still think june's on the table. july is noeft likely. >> jon? >> no chance. zero. less than zero. >> nothing in june. small for july. i do think that, yes, janet yellen wants to make sure the markets don't get overconfident. here's what they do. >> they're all on one data point, s&p, that's it. >> that's absolutely wrong. you'll see. >> you know it's not just the s&p. >> tell me what was different in december. they want to see -- the only zero chance you have is dr. j. growing hair again. >> steve, thank you.

steve grasso. >> kathy lien is coming up the next hour. they're going to talk about what it would mean for u.s. stocks. ahead, chipotle's new year is getting tougher. shares hit hard. they're no longer the nation's most popular mexican chain and its food may not be as healthy as the customers think. does the stock look healthy after falling 25% in the last month? and should people who play esports be considered athletes? it matters. they' they're petitioning the white house for visas so they can play the games. re. do i look smarter? yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy?

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clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush. welcome back. shares of chipotle has taken a hit. for starters, mo's is now the new favorite mexican chain. there was the new study released yesterday afternoon claiming chipotle is not the healthy food option. remember, it's down considerably from its back. let's hear from mike cronin who's buller on chipotle.

also will slave-off from stephens who's not sold here. mike, first to you, make the case. >> i think that with chipotle, the scare's over. people are back at the stores. long-term trend says people are eating out more, especially millennials. 24% store growth this year at chipotle. >> all right. will, you're not sold though? >> not sold. i think our main issue sit's going to take a little longer for it. then in the meantime i think margins need to be structurally reset when you think about investments and food costs and the supply chain and markets expense that they never had to do before and try to market to get people back in the door. we think the valuations need to be fairly high.

>> will, i guess one of the issues chipotle has been facing is there was a time when arguably customers were maybe losing a little bit of their loyalty to it anyway. they weren't necessarily so much taken on how much it cost but there was a sense that crowding was deterring people. what does the company have do now that the stock that doesn't look remotely inexpensive that's trying to regain it. >> you're right. there was a little bit of an issue. comps were slowing down, traffic was slowing down. they lost a little bit of the sheen as being the only fresh based out there. as the industry gets increasi increasingly competitive, i think it's increasingly difficult to distinguish

themselves among their peers. you know, in this marketing which is going to be expensive and reset some numbers, we think, i think is going to be necessary. >> mike, do you think mo's is better? >> i don't. i've been to both. i definitely prefer to chipotle. you can measure your own bowl and tell them what you want and don't want. >> but there is more competition. what made it great a decade ago isn't so much the case now, you know. how do they stay ahead of it and do something that's fresh and innovative and exciting all over again? >> i think you're right. they do need to do some innovation with their menu. i love their rice, but they could have farrow, they could have quinoa, other healthy ingredients and really gain that

competitive advantage. kale. >> believe me. kale's everywhere but at chipotle. so where do you think they can do from here in terms of their share price. >> i think they would be happy bouncing back to previous levels. >> yeah. do you think we can get to the previous highs with chipotle after all that's happened? >> i think over time, maybe 12 month, 18-month window, yes. >> i really like jack in the box as the better play. because of cordoba, that one killed because the margin compression is going to continue, i think, on these. the fact that moe's has made these inroads, that's why chipotle has had a tough time getting beyond the story that mike mentioned about at the top, people trying to forget about the bad food epidemics.

>> ohhing sure. will, how low do you think the shares would go? >> three, four, five times, which is pretty aggressive. if things get a little worse, it could go potentially a little lower. 4:05. thank you both. will slabaugh and mike croni cr we'll look at the possibilities of a warren ticket coming up. first, foreign athletes get work sri sass saudi arabias to come and play the u.s. it happens all the time, but should esport athletes get the same treatment and should they even be considered athletes in the first place. that's next. at angie's list, we guarantee a fair price, quality service, and that a tired dog is a good dog. [ dog barking, crashing ] so when you need a dog walker or a handyman, we can help you get the job done right, guaranteed. get started today at angie's list.

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[phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection. challenging. if it even qualifies as a sport. one of the biggest issues is applying for work visas here in the u.s. they recognized them as athletes three years ago in 2013 making them eligible. one superstar gamer was recently

deported because his game did not qualify for a visa. it's led to hosting a competition to raise awareness about the challenges competitive gamers are facing here in the u.s. joining us is andy din, the founder of one oflarge est esports. are you guys athletes? >> yeah. i would say so. >> even though -- jon, do you think they're athletes? >> i think it's a great skill these guys demonstrate and the fact that they can draw the crowds, that's what matters to me, to twitch, and the gentleman we have on here. but u don't buy into it. >> the government said you are and therefore, you should get a work visa. what's the biggest issue?

>> i think the biggest issue is the visibility rate. i think it's going to take time to educate the general population about esports. if you look at esports, it's not basketball or football. esports is sports. so if you look at sports, there's ping-pong, basketball, football, and for esports, it's easy to get visas for games. i think when we did get denied it was smaller game that's growing. sit's going to take time. >> once you're qualified or they say you count as a sport or athletes, isn't that good enough or is there an additional step that they then have to prove that that person is also coming for an approved event? >> it's approved for all events. it's not just an event by event case. if you're an athlete, you're

going to be an athlete for the amount of time granted. visas are easier for sports that have weekly matches every single week that you can follow. for the instance we did get denied it's not scheduled. >> mike? >> i think you start to get into philosophically sticky place if you start to define what a sport is and isn't. it's skilled something that people pay to watch. >> and competition. >> competition, exactly, with some set of rules or sanctioning. so in other words, i think you probably have to have people get past the idea that it's some kind of physical prowess, you know, traditionally defined. >> is there any kindkind of quota, andy, for these p-1 visas generally speaking? ? >> i think in any case it's building a strong case, how many spectators watch these events.

it's enormous. the audience is there. it's hard to get the visas approved because it's not as dense. if you look at football and basketball, it's a high sport. if you look at esports, there's an audience. it's growing. there's an audience in canada, asia, europe. if you look at a game being broadcast on tbs, it's a lot more global and the audience is bigger. in this specific case the audience is there and the general population for the place where you're looking for visas needs to be more educated. >> well, that will come in part with the tournament you're hosting this weekend. good luck with that and what may be growing pans here.

>> thanks for joining us. >> did you change your mind? did mike convince you? >> it's an enviable skill. i'm enviable as well as i'm sure you are for the numbers they can draw for the live and recorded competitions because i've seen 7 million people watching people continue pete. >> file now for a cnbc news update. sue? >> thousands attending muhammad ali's funeral. it including former president bill clinton and comedian miami billy crystal. a little earlier there was a private graveside memorial after a tour through the streets. the u.s. government body banning brock turner for life. brock turner, a six-month jail sentence for assaulting an

unconscious woman has spread outi outright outrage. >> there was $2.8 million to gaming company. it goes to glide which run as number of anti-poverty programs in san francisco. and i think this may be the story of the day in terms of odd stories of the day. new york may allowed pet attorneys be bruried with their animals. it would allow tl cemeteries to allow the cremated remains of their pets to be buried alongside their human counterparts. >> i'm thinking of the mausoleum they'd like to erect for their petting. this could be a new one. >> i should add we lost the family pet alice. >> sorry. >> i don't think we're going erect a mausoleum but it's good

to go this might be something going forward. >> keep the ashes. >> i know. billionaire peter thiel backed a news organization. we're going to have the latest on this saga. and if you thought steve jobs invented apple's iphone, one of our country's legislators says think again. that's later on the "closing bell." aren't getting the most out of it. the ibm cloud is uniquely designed for all kinds of data. like data from the weather company for 2.2 billion locations. or billions of health-related data points. even social sentiment in real time from hundreds of millions of people. it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand.

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x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. welcome back. here's look at how we did settle out. the dow was down 119 points. the s&p was down 19. the nasdaq was down 64. in some cases the numbers we reached, the 18,000 on the dow, the 2100 on the s&p. we have certainly now given up as we head into the weekend. now, gawker media also announcing this afternoon it will file for bankruptcy. it has entered a purchase agreement with digital publisher ziff davis this after the costly legal battle with former wrestler hulk hogan. a judge eventually ruled the gawker owed hogan $140 million. for implications of gawker and

other media sites is miymiya. what does it mean? >> business as usual for gawker and its employees right now. the kploes are going to keep working. it allows them to keep the lights on and look for a buyer so they don't have to pay the settlement fee to hogan. >> what is notable about ziff davis acquiring these assets? >> if he does acquire the assets it will be interesting. it has tech centric properties, ask men, p.c. magazine, and i think purchasing these things like niche magazines fits pretty nicely into his brand. >> you know, i think it's a fairly good tactic.

i do think it doesn't really end the story though. i mean obviously there's some talk that maybe peter thiel was looking for other plaintiffs and it goes beyond the corporate entity of gawker, but i think it makes a lot of sense. >> does it shield gawker in any sense from liabilities? >> i think so. if it can find a buyer like ziff davis, it won't hurt so much. but it wouldn't -- you know, it wouldn't negate certain -- >> like gulf of mexico filing for bankrupting and trying to resurrect themselves. >> right. the bankruptcy judge would have to decide what would be dismissible, kelly, and what wouldn't. it's unlikely that he would say, oh, yeah, this particular ruling that the jury set aside $140 million, we'll just push that aside. very unlikely. so a lot of that money will probably be the disputed case

that continues with all the various appeals and everything, and there's no guarantee that peter thiel won't go after whatever the surviving entity is. >> that's a question. i wonder what people think the implications will be for other publications and new s sites tt fall in that same area. >> right. i think this kind of -- if thiel is successful and frankly he has been successful in that gawker has filed for bankruptcy, it opens the door for a lot of people with money to g after organizations that say unflattering thing about them or things that they don't really like. i think it does kind of raise this question for a lot of the journalists. >> yeah. and by the way, we talked about the litigation and finance aspect of this too. this is actually a growing asset class. >> yeah. something about it feels uncomfortable. it's one of those things where i don't think you have to

necessarily like it to feel there's not an easy alternative to it. >> exactly. nick debtman's statement, even his billion, thiel will not silence our writers and we'll win in court. by the way, on the other side of it hulk hogan says we have every intention to sue them and hold them accountable for violating his privacy. >> the question, i guess, longer term is whether it's gawker or just other, you know, news sites if it has a chilling effect. in other words, this is now a huge risk factor to being provocative or saying unflattering things. >> is it the end, maya, of the blog world as we know it? >> i don't think so. >> they're hard to keep down. thank you for joining us. maya kosoff, tech writer with "vanity fair" right there. coming up. gore, remember, once took credit

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the iphone wouldn't exist. >> does anybody here have a smartphone? in this smartphone, almost everything came from federal investments and search. gps creating by the military flat screens, lld, digital camera, wireless data compression, research into metal alloys for strength and lightweight, voice, the list goes on and on. if you want to know, look at the association for the advancement of science in america and they have the full list. they say steve jobs did a good idea designing it and putting it together. federal search invented it. >> federal search invented it? what do you think? >> no, no. not at all. they paved the way in many aspects, i suppose, the same way nasa did with many of the products that have been developed through the space program. hat's off to the government for doing some of those things. would the government have come one this phone? absolutely not and they haven't

to this day, have they? >> no. >> so this is like, well, you wouldn't have built that factory if we didn't build the roads as elizabeth warren would say. >> there's no denying that. >> you have to have road, we all get that. but to say they have the hand that basically callsed this to happen, no. they were one of the many catalysts that contributed, but it took the genius of steve jobs. >> laid the groundwork. i think the key is to do the kind of research at that stainless is not economic do. no individual could would say, oh, we're going to create this whole system. same with transit, right? real estate verps get tremendous benefits by locating their buildings next to train station or where there's great transportation that no individual company could do. it could be a little symbiotic. >> it's a little weird to be

fighting over it for credit. hillary clinton, by the way, meeting with senator elizabeth warren today. there e there's speculation that she could pick elizabeth warren as her running mate. let's get a roundup now from our john harwood. john? >> kelly, hillary clinton continued her effort to unite the democratic party yesterday. of course, she got the endorsement of president obama and vice president biden last night on rachel maddow and warren. today they met to try to defeat donald trump and hillary clinton went after trump in her speech to planned parenthood today. >> when donald trump says let's make america great again, that is code for let's take america backward, back to a time when

opportunity and dignity were reserved for some, not all. >> donald trump after getting criticism from mitch mcconnell and paul ryan about the judge and hispanic descent was on defense when he spoke to the faith and freedom forum and he tried to indicate he was going to be a welcoming leader. >> freedom of any kind means no one should be judged by their race or color and the color of their skin should not be judged that way. now we have a divided nation. we're going to bring our nation together. >> he delivered that message. at the same time he said he had no regrets whatever for referring to elizabeth warren as pocahontas after her claim to indian heritage. that's donald trump speaking off the cuff to reporters as opposed to a prepared speech. we're going to have to watch and see how the donald trump roller coaster rides.

>> stay with us, john. it is interesting to watch, guys. what implications do you think it holds? >> i mean tremendous implications for exactly who each kaejt is appealing to. so the pivot is probably from speaking to the converted or people who are always going to go along with you because tla believe fundamentally in what you're after and trying to convert other people to. me it's not necessarily the case that either candidate at this stage has -- maybe they can't. maybe at this point there's not that much of a fungy built of support. >> the cross is a big one. >> it is. it feels like both candidates, presumptive candidates are in themyle rounds of a fight, that they look like they're tiefrmtd there isn't that same fire in either of them. in either hillary or in mr. trump. and i think that will obviously ramp up into the conventions as well as, of course, the fall when we all expect this to be, you know, perhaps one of the

most watched events in television history when we have these debates and so forth. >> is hillary clinton looking for somebody invigorating or you do think she'll go with somebody safer? >> well, she will definitely not go with mike cuban. she could go with elizabeth warren. there are different theories of the case. it goes to the point made by mike a few minutes ago about whether the support is fungible or expandible. there's a view that our national coalition, libya rat whites, young people, african-americans, hispanics, single women in particular, college educated is enough to win the election if we simply mobilize them and our key priority would have to be to mobilize them. that would be the argument for picking elizabeth warren. on the other hand, if you think donald trump has alienated so many people, that you have a

chance for something broader, to pull in more moderate republicans, moderate independents, then you would go for somebody safer, perhaps tim kaine of virginia. and there's a real question about which is possible. can you win in american politics? not certain. >> that's a great question. john, thank you so much. john harwood with the latest out of washington. now james corden, the face of "the late late show" on cbs, he's hosting the tony awarding. he's focusing on how he's measuring his success is coming up. app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence

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the 77th tony awards honoring

excellence in theater is coming up sunday. james corden of "the late late show" is hosting. for anyone who has not stayed up to watch his show, yours truly included, they have caught up with his car >> as far as youtube goes, that's the only number i look at. it's across all digital platforms. i can't tell you how many people watch that show. because we make a show that's on at 12:37 at night. the great thing about the internet is it is completely fair and level playing field where you're not relying on lead-ins, some big sports game, 10:00 drama. it's like oil, the good will rise to the top. i feel very, very lucky to make a television show at a time when people are able to watch and view the things that we do at any time of day on their lunch

break, on the train, on the bus with their friends, with their families, to make a show that is a relevant times. if it's good, people will find it. and it's thrilling for us, and everyone who makes our show. we never thought that our show would be in a year the third most subscribed to late night show, and that we would have the two most watched clips in the history of late night tv online. that's mind blowing to us. when you think a year ago, i couldn't even get in the building without my pass, because the security guy didn't know who we were. so what the internet has done for us is allow us to find an audience who understandably cannot be awake at such a time. >> if you're wondering how do you show, what is the fruit of that success online, how about the fact he's hosting the tony awards on sunday? there is a very tangible outcome of what happens with all this online traffic. >> that's right. you're being kind of passed around in a different form. i think he actually gets to a good point which the real front

here is measurement and tracking and trying to quantify what the engagement levels are for all this. it's woefully bad right now in terms of figuring out ad delivery and how many people are watching. >> if you were to take just james cordon, how much of the ad dollars have gone to him and youtube as opposed to cbs? >> that's a great point. i would say -- >> right, that many people. >> google versus -- and the youtube, versus cbs. and just as we talked about with the gamer. and all the millions of people who watch that. not the same kind of skill that james delivers when he has those carr yolkies and so forth. everybody covets these large audiences that these folks draw regularly through the youtube channels and -- >> i'm sure cbs would say, if google benefits, the better for

us. >> it magnifies it. look, at some point if somebody went to the movies every week, nobody had to worry about it. after a while people went after tv and they had to appeal more directly in a more splintered way. i don't think it will deviate too much. >> have you ever stayed up to watch his show? >> i've never seen it live. though i have watched him online many times. >> there we go. great stuff. we look forward to that on sunday. $1.5 billion. that's how much brands are spending annually on music festivals. we'll head to the cma-fest in nashville, tennessee, and how companies are cashing in.

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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. welcome back. country music is experiencing a renaissance and it's millennials who are driving the growth. you having fun, court? >> reporter: i am. i am having fun. kelly, you know how we talk a lot about experience spending. this is a perfect example. nearly 90,000 fans are expected to attend the cma-fest this

weekend. up 34% since 2011. and a lot of these fans are millennials. the cma says that there's been a 54% increase in millennials listening to country music over the last decade. ni the good news for everyone, they're willing to pony up for it. mastercard says that concert and theater ticket sales are up 20% so far this year. now, the artists haven't noticed a big change in the fans themselves. but they are thankful that there are more of them. >> fans are still the same. there's just more of them, thank god. they're very loyal, they're very loving and caring. and they're devoted. >> we met people from europe and australia and everywhere this week. the loyalty is amazing. it encourages us to to keep doing our thing. >> reporter: and not only is the audience fan size base growing, but their incomes are as well.

cma says that 64% of the concertgoers here have household incomes of $75,000 or more. and in general, country music fans, according to neilsen, have a higher income than the average population. very good news for the brands that are spending billions of dollars around the world at these concerts to try to appeal to these very loyal fans. kelly? >> it's a great point. courtney, you a country music fan? >> i have a appreciation for country music. we have an old friend in the business. enjoying the great business success right now, at least by the core people. thinking it's becoming less country. which is always the complaint. >> exactly. >> she's more mainstream than country now. >> right. >> but josh doer, luke bryan. i'm very jealous -- >> of the assignment? >> yes. >> courtney, you know, this

spending aspect is so interesting. talk a little bit about what some of the brands and offerings and people are doing out there. >> reporter: so, there's a budweiser country club here, which is very, very interesting. they have this whole setup built out of wood. there are lots of different beer stations, there's beer games, of course. there's a gentleman making kuzis out of leather totally free. hdtv has a setup this weekend. lift is offering opportunities for folks jumping into their cars for the weekend. you can use all sorts of promo codes. it's very interesting how loyal the fan base is. that's what the brands want to tap into. you rarely see artists that have a one-hit wonder. the fans pay attention to what they say. >> that's brilliant. great to see you, courtney. enjoy it. >> thank you. >> a reminder that the decathlon

kicks off tomorrow in new york. donate and support our own john najarian. spectators are welcome. >> they are, free. >> what's the best event? >> rowing, 500 meter. >> that's tough. good luck. mike, thank you. catch it on nbc sports. "fast money" begins now. tim seymour, steve grasso and guy adami. looking for yield. we've got a way that can generate additional income on every stock in your portfolio. apple gearing up for its annual worldwide developers conference. we're separating fact from fiction on what you can really expect to hear from the tech titan on monday. later, one momentum stock breached a key level. could there be more pain in store? we'll explain. first we start off with the br