what i was going to play. >> how about adobe? >> i think adobe is fabulous. i don't know what the earnings are going to be but what they have done with this company is really special. don't get enough credit for it. they are not involved in social media and stuff so i think they get short shrifted by investors and talk about momentum stocks and things have been on fire. >> guys, thanks. "power lunch" starts now. and welcome to it the fed brexit edition of "power lunch." i shall since be known as bremain sullivan, melissa and tyler as always. stocks on hold ahead of the huge thursday vote and right now the dow jones industrial average is up a whopping 19 points. microsoft and apple are your best performers in the index. oil and gold are both lower today. welcome. let's get right now to the key news for your money today. janet yellen on capitol hill. steve liesman listening to every word and joining us now for the most important points on what

the fed chair said. >> thanks, brian. janet yellen reinforcing her cautious for the u.s. economy and emphasized the uncertainty of the brexit vote this thursday and the recent slowdown in u.s. job growth and global economic weakness. >> a uk vote to exit the european union could have significant economic repercussions. for all of these reasons the committee is closely monitoring global economic and financial developments and their implications for domestic economic activity, labor markets and inflation. >> she said the fed is prepared to act depending upon the economic impact they assess. longer term they are optimistic the u.s. economy will overcome the challenges. scott wapner asked senate bank committee chairman if yellen is doing a good job? >> she's cautious and she should be cautious, but she should know what she's doing.

i'm not sure the fed knows what they are doing. >> as for what they seem to be doing now, the big takeaway from yellen's testimony, it suggests a chair that's fine with the market's current pricing. that's barely one hike this year unless there's a market turnaround in the economic outlook. she did not lean against the market pricing. the market pricing didn't move. look at where the ten-year is and the two-year is. it's pretty much where it was. if she was uncomfortable with the market pricing she could have but did not use this opportunity to lean against it. >> hence why we haven't seen that much movement. >> exactly. >> stick around and let's bring in joe lavorgna with deutsche bank and cnbc contributor. let me ask you to respond to richard shelby saying he's not sure janet yellen knows what she's doing. hear that from a lot of economists as well. are you one of them? >> let's just say if you look where the dots are and the markets have been, the market has been right and the fed hasn't so the fed is under a lot of pressure, some of it deservedly so. unfortunately, the fed still needs to revise its forecasts.

they are not there yet. >> in terms of reducing even further their expectations for when they might raise rates because the whole discussion after the last meeting steve brought up, wow, they really lowered the expectations for how many hikes there's going to be in the next couple of years and you think even that's too aggress sniff. >> to steve's point and for the fed that was an aggressive move but relative to where the market, is they basically have the terminal rate at 1% at the end of 2019, essentially three hikes over the next three years or so, so the fed in its mind made a big move but i would argue the fed is still way too aggressive in terms of where it sees markets. >> joe, i've got to correct you. the terminal rate is at 3%, not 1%. >> i meant the market expectations. if you lock a at the december 19 contract, basically applying a 1% so the fed and the market 1100 basis points apart. >> the spirit of what you're saying is senator shelby is

right. >> no comment, michelle. >> let me ask you. steve, you or joe, one of the senators was driving -- they drove at two things. one was that the fed has repeatedly been too high in its forecasts of where the economy was going to be. true or not? >> yes, that's true. >> over time. >> the fed has been forecasting -- >> always too high? >> and they are joined by a lot of the economists here. the notion that monetary policy and very, very accommodative monetary policy has not been enough to kick this economy back on to the track what have potential growth has been a surprise to everybody. >> and let me just get my other question in and you can come back to that one, joe and for you, one of the senators, may have been the same guy and i was listening on the radio so i didn't know who it was and she didn't really answer directly. the concern is that low interest rates bring economic activity forward. in other words, you're borrow future output and pulling it

forward. she really didn't have a square answer on that. what's your opinion, joe? >> happy you mentioned that. that's what i want towed get to. you're right. monetary policy is borrowing from the forward to the extent you lower discount rates and try to galvanize interest sensitive activity and part of the problem, is and i were argue, why growth is so week is because of these fed actions. the messaging of what low rates mean,les fact that you've deprived savers and the fact that people who want to borrow at this point would have borrowed a long time ago and the fed is misdiagnosing the problem. it's been about the availability of money and the outlook and on the corporate side, as you know, there's been very little investment, a lot of m & as and buybacks and part of that is a function of monetary policy and the fed, unfortunately, never seems to take any responsibility for anything that goes wrong, including their forecasts which have been wildly off the mark. >> so just to dovetail on that

and i'll go to steve on this. was the acknowledgement that low productivity growth could continue into the future. >> right. >> and that doesn't necessarily put away the notion that's been expounded by many economists, including larry summers, that we could be in a period of secular stagnation which is what a lot of market participants are fact oregon in. >> this is the profound change from last wednesday. yellen took as big a step of embracing stagnation of larry sum mers, a capitulation, the headwinds that we thought were temporary now look like they are more permanent. i disagree with joe on some of this stuff when it comes to whether or not we're borrowing from the future. >> we have to, steve. we have to. rates are -- we're not borrowing from the past. >> you want to scream over each other. >> i'm not screaming over you. but you can't have rates low and not have it take from the future. it doesn't make any sense. >> my point is that we're borrowing from the past. we're borrowing from essentially

investment that hasn't taken place because of fear. >> that doesn't make any sense, sneef. >> it absolutely does. >> motor vehicles is borrowing from the past. that's a crazy thought. >> if you don't do something now, you never get that the moment back. >> we were at a 17 million plus. that's not correct and you've got to be correct on that. >> and what you're doing is replacing sales that did not happen, that should have happened as the age. u.s. fleet increased dramatically. let me just make one other point. >> sales were very strong in the last business cycle. >> vehicle sales. >> for five years it tanked along with housing. everything tanked. >> these are home sales that didn't take place, not from the future. didn't take place in the past. >> you're saying they are catching up, that's your argument. >> you look at a ten-year funds rate, joe, of 1.6%. that is embedded, laden with fear, fear of failing to invest. >> she did say -- >> because the fed has put rates

at zero. >> she thought some. effects particularly were housing were ongoing, that they were not borrowing from the future, and i think it will be hard to argue that that's not the case. we've had a fairly strong housing market for the last few years. there have been a lot of sales and prices have been going up partly because rates have been so low and people have been inclined to buy. >> monetary policy works with the economy with long and variable lags. the fed is partly the reason why, in my opinion growth has been so weak. they definitely have borrowed from the future. if they haven't, they would have been a little bit more aggressive in coming off extraordinary policy accommodation. >> if you can convince me how and why higher rates would cause greater investment -- >> have you looked at the sector. >> i'd be right on board. >> but you're missing the consumer. you have $10 trillion of savings that's earning zero, come on. talk to a retiree. they will tell you there's a major problem. >> a point made the other day on "halftime report," ten years away from retirement, used to

think you would make 7% and now you're making zero, so what do you do, save even more because foregone future investment? >> the savings rate is not that high. it's 5.5. >> yes. >> it's at a much more reasonable rate. >> could i just ask one quick question. you won't comment on whether or not the fed knows what they are doing but how about this. i tweeted out that i thought the fed was using indianapolis 100 and used pontiac aztecs. the models they use are dated. do you agree with that, kind of to melissa's point, that we're in a different economy and the old models don't matter. >> they have always had one instrument, the fed funds rate, always a blunt tool. the problem is on part of this issue and why congress is coming after the fed is they have become transparent. the old adage about forecasting you don't give a date and a number. they have given usering and still don't have the ability to control the economy in an appreciable way. that's hauls been the case and now, unfortunately, they are

accountable for it. >> joe lavorgna and steve liesman, great discussion, guys. just something we can't get enough of for some reason. >> got a news alert. the bond market five-year note, pronounced reactions when it comes to the ease of the ten-year. >> we are creeping back up just a little bit, basically creeping up to on daj. i gave this auction a "d" as in dog. very few aspects of this auction that were very good. 34 billion five-year notes. the yieldled auction, 1.218. the high went issue yield trade of the day was 121.50. that pretty much says it all. pricing is weak. 57.2 on indirects and that's the only thing that's even close to an auction average and we will

look at directs and that's the weakness since june of 2013. primary dealers take 39.1%. "d" for this auction and tomorrow we'll finish it up and i love that discussion, to listen to joe lavorgna. how far they have come from liking to questioning janet yellen. back to you. >> rick santelli, thank you very much. the associated press reports a short list for running mates for hillary clinton. it goes along with the speculation that we've seen for some time. on that list senator elizabeth warren of massachusetts and tim kaine and senator of housing and urban development. see if you can name that individual. julian castro and let's get john harwood to sum it all up. begin where you will. >> reporter: a day after donald trump fired his campaign manager corey lewandowski hillary clinton was out to keep the

pressure on today. just as a couple of weeks ago she delivered a speech trying to dissect donald trump's approach to foreign policy. today she went after him in the economy saying he would threaten our debt and threaten our credit rating and tip the economy into recession. >> just like he shouldn't have the finger on the button, he shouldn't have his hands on our economy, so let's take a look at what he did for his business. he's written a lot of books about business. they all seem to end at chapter 11. >> now, hillary clinton got mixed news from new swing state polls out from quinnipiac in florida which is a state that donald trump needs to take away from the democrats, hillary clinton's opened up an eight-point lead. much closer in pennsylvania in the quinnipiac poll, just a one-point lead for hillary clinton and in ohio critical state again, no republicans won the white house without it. donald trump and hillary clinton are tied, although these polls

have moved slight little in hillary clinton's direction over the last couple of weeks. donald trump has problems in addition to swing states where hillary clinton is advertising and help's. no one reason is the money imbalance. look at these numbers from the federal election commission in terms of cash on hand. hillary clinton right now is sitting as she pivots to the general election on $42 million. donald trump, just $1.3 million, and this is why donald trump has not been on television. he doesn't have the field staff that hillary clinton has. republicans want him to ramp up. he started fund-raising with the rnc and just today donald trump sent out a fund-raising e-mail and he offered those who donate to the campaign that he would match them dollar for dollar. we'll see how well that works. guys. >> john, thank you very much. john harwood in washington. mean time, we count down to thursday's big vote in the uk on whether to leave or stay in the european union. let's check the pound.

there's the pound at 1.4665. that's what it takes, about 1.46 to buy a pound. but england's key stock market index, the ftse, trading higher today as were indexes in germany and france and let's go now to wilfred frost in london with the latest poll numbers and there are some new numbers. wilfred? >> reporter: yes, tyler. "the financial times "poll of poll have edged leave ahead once again. it's 45-44. that comes after a survation poll came out today. the latest poll was carried out yesterday afternoon and evening. the survation ceo summed it up by saying remain just ahead but it's a poll, not a model. this is genuinely too close to call, and that is really the

sentiment here on the ground that it's incredibly close and earlier i caught up with some voters and asked them how they were going to vote and why. >> i'm going to vote remain and i think the uk is definitely the strongest part. >> definitely brexit. main reason immigration and i think we need to make our own rules. >> i'm not going to decide until i'm actually in the booth. >> two days left, as you said, just under that until polling begin and markets certain responding. it's down a quarter percent and that came down after the latest polls. guys. >> thank you. the brexit vote and janet yellen speaking and earnings season around the corner. what's having the biggest impact and the man who has $2 trillion under management.

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thank you.

ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. is this just might be the understatement of the month. there is a lot going on in the world of money. janet yellen, the fed, the brexit vote, oil recovery and all of it may have you wondering what does it mean for me and my money? our next guest has 2 trillion under management so i'll ask you the question of what does all this stuff going on mean for your clients and their money?

>> they could face a little volatility during 2016. that's nothing new and that will pick up in the rest of 2016. >> we saw it the rest of year and then it's been flat lining. >> you've got the election, a brexit and lots of things coming and many factors that have caused liquidity to be sketchy. interest rates are low wherever you look, high volatility and meager returns. you'll squeeze the portfolio a little bit harder and be mindful of -- >> what does that mean, squeeze the portfolio harder? >> you go to squeeze out and the credit premier and favor credit over equities at the moment and you go to low volatility strategies and be mindful of the need to diversity. >> i'll get to low rates but i want to talk about the thursday vote. you're obviously british. are you a british citizen

currently? >> i am. >> have you already voted? >> i have. >> how did you vote? >> i voted remain. >> you are british and voted remain and have a couple trillion in assets. >> my vote is a personal thing. >> everybody is talking about the potential impact on the financial markets because of this. certainly we are and what do you see as the potential risks of an in verse youth an out referendum in. >> it's somewhat ahmet rick. out, people are focused on sterling. could be a big sterling impact and the real impact is longer term. what does europe look like and what are the stresses and strains and elections in france and germany next year and what sort of pressures does that get for more populace movement in movement. people look for weak spots, in had the insurers or banks when you have longer term interest rates so the out is definitely a troubling scenario.

>> enough that you'll sell stocks if you believe they vote to leave. >> we're already risk off, not ahead of brexit because we see a volatile environment. we don't think stocks are overvalued but we don't think we're getting rewarded for the additional volatility and our risk is placed elsewhere like credit. >> earlier today in janet yellen's testimony there was a question fry believe senator richard shelby where he asked does yellen believe there is a risk to persistently long-term low rates? listen to this. >> i believe that the persistent low interest rates we've had have been essential to achieving the progress, but, of course, rates can indues households or banks or firms to reach for yield and can stoke financial instability. >> do you agree with that? maybe she understated it. do you think she could have have

instability if we keep rates low for a long time. >> it's a restatement what have we know about credit cycles. low term, low rates can reduce the sorts of investments. we see them and we're from a comfortable allocation and you've got to be mindful of core investments and the likes of china where you've got credit bubbles leading to good investments. not seeing that happen. >> rick, very wide ranging conversation. appreciate your insight. thank you. your employer is spying on the e-mails that you send at work, especially at the big banks. coming up, we'll get a look at how they do it and if people actually sit and read your work e-mails. scary story coming up. stick around. consider

last week cnbc's eamon jafrers first reported that goldman sachs had a unique way of sifting through work e-mails and eamon is back today with more on how employers do it and what exactly they are looking for. eamon. >> hi, mark fay and i did a little bit more reporting here and looking into this whole cottage industry of companies that manufacture software that looks into your e-mails if you work at a large corporation, particularly in the financial secretary o and in regulated industries and what we found was a whole range of offerings by

these firms designed to flag specific phrases and then the phrases are actually reviewed by human beings, sometimes in the compliance department. take a look at what we found including one software package that'ses itt ete eted -- that'so track your e-mails to the media and we obtained the full list of the media outlets being tracked. there's one option out there tailored to spot people doing their fantasy league including flagging the phrase da bears. that can get you red flagged. a whole lot of details on cnbc.com. a lot of companies say they are doing this because the regulators require them to monitor communications. you can see how they can take that father and father as the technology advances. >> mission creep, for sure. you flag all the e-mails.

what does that. >> we had one person in our story which is up now describing for us the sort of cube farm where the employees work whose job it is to read all the e-mails. it's a horrific place place to work and sometimes they have thousands of e-mails to read every day of all of their colleagues inside the company. he said a lot of people end up getting conspiracy theories in their head and paranoid. just a very weird place to work and a very weird thing to have as your job to read everyone else's e-mails. >> like a low grade cia, a cube farm, such an awful image. thanks, eamon >> you bet. exclusive comments from bill gross about his departure from pimco and his relationship very much fractured from mohammed l.arin. hear about that coming up on

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comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. i'm courtney reagan and here's your cnbc news update for this hour. three people were arrested with multiple load guns, rifles and ballistic vests at the holland tunnel outside of new york city.

the three were stopped on the new jersey side of the tunnel. a law enforcement official telling wnbc-tv the throw were gun these yasts and have no connection to terrorism. a vegas man arrested at a trump rally wanted to kill trump and planned an attempt on him for a year. 19-year-old michael sanford appeared in a courtroom on monday and was arrested after grabbing the handle of an officer's fun and tried to remove it at the mail. he's been denied bail and hasn't entered a plea. two more out-of-control wildfires are burning in southern california and are poised to merge. the fish and reservoir have burned seven square miles fueled by triple-digit temperatures and the international olympic committee back the iaaf's decision to uphold the doping ban on the russian track team this, after a meeting in which they considered further steps to crack down on doping ahead of the rio games. that's a cnbc news update at

this hour and now back to you, melissa. >> courtney, thank you. and let's take a look at final gold trades. they are crossing for the day and we continue to see the slide in gold as the bremain camp continue to gather momentum. 1272.30 is the level there. silver is down by more than a percent and we do have copper higher by 1.2%. let's get a check on the bond market on the back of the five-year action and rick santelli is tracking the action from the cme. rick? >> it wasn't a good auction. i gave it a "d" and which eve told off and gave it a nice premium and i'm a little bit surprised. you can see it spiked around 1:00 eastern and if you look at a one week of fives you can see the way the yields have moved, of course, and they are moving lower and now they are coming back just a little bit and what's really fascinating is even out on the long end the

ten-year you did see a response to the auction. the only maturities that are at unchanged or slightly higher versus yesterday is the 30-year bond, one basis away from unchanged and the dollar index intraday. it's holding a lot of strength but that isn't the whole story. like all the other starts you need the context to see how it reacted after the fed meeting to see how much weakness it's trying to reverse and already giving back half of its gains for the day. back to you. >> mr. santelli, thanks very much. stocks looking to gain in nine sessions as the markets away the outcome of the brexit vote. joining us now is an institutional wellness central artery gist at wells fargo hand matthew beasley of henderson global investors. welcome to both of you. as i look at my notes, both gina and matthew, it indicates to me,

and i may have this wrong, that neither of you see much upside for u.s. equities from here. gina, you say a 12-month fair value estimate is 2100 and we're at 2086 right now, a big 14-point move. malt two, you say you're not bullish but not bearish. gina, what should i do with my money? >> yeah. i think with respect to u.s. stocks we're still recommending that you really pick your spots carefully. our overweight recommendations are a combination of the defensive telecom sector and the cyclical industrial sector but those are the only two overweights we have in the s&p 500 at this time. i don't think investors, want to be overly defensive but i don't think they want to be overly cyclical as we await this the economic recovery and earnings rebound coming in 2017. we want to be pretty cautious until we get more firming signals that that's going to actually arrive. >> is the earnings rebound going to come not because the businesses will make a lot more earnings because the comparisons are going to be a lot easier.

>> yeah, it's a great point and one we've made ourselves is that a lot of the supposed earnings rebound coming for 2016 is certainly a comparison on the energy complex. oil prices finally stopped falling and the result is we've finally seen some earnings growth in the energy sector and all of the surrounding industries for the energy sector though i will say there's evidence that we'll see incremental improvement in the sales line and that's really important. are we getting sales growth, real top line growth that can filter down to the bottom line in 2017? we see a little of that coming but not a lot to be honest. >> i don't know whether i'm mccharacterizing your overall view but not bullish or bearish. that suggests that like gina you think you've got to really be a smart stock picker here. >> yeah. it does. i don't really see how markets run away with themselves from here. obviously we're having a very meaningful bounce at the market and prompted by a feeling that

markets have the referendum in the uk is going to be resolved favorably in terms of the uk staying in the eu but i would suggest beyond this rally which, of course, can extend into friday if that isn't confirmed as a remain vote. beyond that i struggle to see what's going to drive markets higher, absolutely a significant pickup and gina has talked about the year effect which will be mathematically important and fundamentally it's hard to see what's driving that incremental top line growth, how margins can expand and how valuations can really expand from here in the u.s. market. >> matthew, your accent just suggests that i might want to the ask you what do you think is going to happen with this vote and which ever way you think it will go, will it be good for britain or not? >> well, as of now markets are priced in what we think an 80% chance of it will be a remain vote and staying in the european union and i think markets have been pretty efficient throughout

this whole process. back into may when there was a 20 point chance of leave, we've gone viral. markets and currency markets and equity markets have responded accordingly. i think the thing to be nervous about is how many people are supposedly still undecided. you have a large number of people that could yet spray this vote so while we're 48 hours away from starting to have a feel about exit polls there's a chance you could have a left field event. investors certainly aren't expecting that and certainly that would be a very dramatic downside risk for markets to have to deal with. >> folks, thank you both very much. go to powerlunch.cnbc.com to see gina's predictions for the u.s. presidential elections. a former reaganite and

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want to give you a market alert here. we witnessed the dow briefly turning negative and off the session highs by ten points right now. we're inching higher by .02 of a percent. it's worth noting that the s&p 500 is a few points off the session lows right now, but we are within a very tight range today. michelle? >> melissa, the a.p. reporting that hillary clinton's vp short list includes u.s. senators elizabeth warren of massachusetts and tim kaine of virginia and u.s. housing secretary julian castro. earlier today mrs. clinton took aim at donald trump's economic policies. >> trump would take us back to

where we would before the crisis. he'd rig the economy for wall street again. well, that will not happen on my watch, i can guarantee you. >> the latest quinnipiac polls show fairly tight race in three key battleground states n.florida clinton is at 47% and trump 39%. a dead heat though in ohio, 40% each and slight edge in pennsylvania for mrs. clinton with 42% and mr. trump at 41%. much bigger gap in their war chests though. clinton has around 42 million, just just 1.2 million. let's bring in cnbc contributor larry kudlow, former energy secretary bill richeson who served as new mexico governor and congressman. we're a business network and i want to start with the war chest. governor, i would normally say, wow, trump is at a big disadvantage but here's the thing. in this election, well, if money mattered, mitt romney would have been the president and jeb bush

would have been the nominee, and that hasn't happened this time around. is this a big deal? >> it is a big deal because the disparity is so great and i don't sense the republican establishment has come around to want to help trump in the fund-raising area. it is very important, despite him being a billionaire, but it's not as important as before. this is a very angry populist electorate. economic issues are very important, national security, the whole issue of domestic terrorism. larry kudlow knows economics better than anybody so he can tell you, you know, this is a very unusual year. >> it doesn't help that donald trump has been telling everybody he doesn't need the money for a long time, right? please don't send me money. >> it's kind of a mixed bag. >> doesn't the rnc had a money? >> trump is starting to raise a lot of money but the governor is right. at the very least he's late to the money race. i mean, as i understand it,

hillary's got $100 million worth of ads going up every, especially in key states attacking trump. does that work this year? probably not the way it used to, but, on the other hand, i would want to defend, that and i think the gop in general, they got work to do on fund-raising, i don't disagree. >> is he ever going to get them to come on board? >> the rnc. >> they are working and have had a whole rigamarole of new channels and organizations and some really superb people are pitching in, so i don't think it's going to be a problem. the timing. look, four years ago barack obama crushed and defined mitt romney at exactly this time. romney spent his money in the primaries and obama was ready to rock and laced out a couple hundred million of ads attacking romney as a bad businessman. romney didn't stand up and didn't have the resources. trump has to watch out for this.

>> those polls, florida, pennsylvania, ohio, that's the key. >> hillary is defining trump or trump is defining hillary clinton? >> hillary is defining trump. when you're under attack and you don't respond and trump has not responded to these ads in these three battleground states, those are the three states that if trump expects to win, he's got to get them. he's got to get two out of three and right now they are fairly close, but when you pound incessantly and bill clinton did that to bob dole, remember that, larry? >> i do. >> before the conventions. the tv ads, negative advertising, unfortunately, works. the american people -- >> so you made a very interesting point and that is that the money you see may not matter this time around, in other words, the disparity between 40 million cash and 1 million in cash. where is the money that is not in the candidates' coffers, in other words the back money, the

interest group money that is pretty big on the jon side, and is it getting deployed in his favor? >> no, i mean, trump actually really doesn't want that kind of money. he has said to many people. >> that's kind of my point. >> if you go out and do it you do it without my blessing. that's an interesting point because as you know he's run as the outsider, the guy that wants to overturn the establishment, the k street establishment and the trade group establishment, whether they are republicans or democrats and he has had a media strategy. hillary doesn't go on the air very much. trump is on the air all the time getting a lot of free media. look. this thing -- this race is a tossup. the swing states are a tossup. trump's just had his worst two weeks and he's only lost about a point. >> he doesn't want that money and that money isn't quite comfortable with him. >> you may be right on both counts. i have to talk to my friend lou isenberg the great rnc finance chirm. my take, governor, it's going to come down to the conventions this year in a major way.

the speeches by the two candidates are going to be huge because it's not going to be 3 million people on cable tv. it's going to be 25 million, 35 million, 40 million. >> trump needs to find a way to get lebron james to show up in cleveland. that's what he needs. >> speaking of tight races, governor, larry says the brits should vote to leave, leave, leave, leave, leave, leave. >> i disagree with larry. >> i'm shocked. >> i think that the transatlantic alliance is too important. british is our great ally. >> we can still have that alliance. >> how are we going to contain the french and germans if we lose the brits? i think that trade, investment would suffer. treat trade agreement which i know larry is for between the u.s. and europe would go down if britain doesn't stay. i was just in london. i think they are narrowly going to stay and it's because of young voters want to stay. that's because david cameron has

been very effective. when i was there cameron started telling old people, pensioners, that they were going to lose their pension. >> which is really a cheap shot. >> second only to christine lagarde and i predict they stay and they should. it's important for the alliance. >> i think the governor is right. i think the free trade zone which was the original idea was a good idea, okay, and regarding the european continent, it was a good idea but what's happened it's morphed itself into a super globalized government and they are making judicial decisions, regulatory decisions, welfare. >> bloated bureaucracy, fat and happy. >> huge dbureaucracy and i call this magna carta 2 and i wasn't there for the first magna carta, that it was 1215 with king john. however, the idea of personal

liberty, the idea of self-government, the idea of self-autonomy, i don't believe britain should give that up. i don't think the eu has done very well on a ton of issues and maybe at the least the british rebellion here will cause the eu to change in better ways because europe is not growing and it's a bunch of socialist bureaucrats running the place. >> talk about trying to contain the french and the journalists. >> is there a school of thought that maybe europe is having all these problems just because they have this massive demographic issue. you know, demographics can solve a lot of problems but when you've got more old people than young people no country has ever done well in that scenario and you wonder if europe is suffering through a decade or multi-decade long stagnation that's the only reason is because people aren't having enough kids. >> by the way, we had that same problem here brewing in the united states. >> i did my part. i have a 1-year-old. >> you've seen the charts, larry. >> people over 55 and 65 have a higher participation rate than 25 to 54.

>> you know what i'm saying. there's a problem -- >> it's policy! it's policies! it's policies! >> you make love, not referendums. >> they are regulating and taxing. >> the trade, the transatlantic alines, you know what the big issue, is immigration. >> yes, immigration. i mean, there's a worldwide reaction against it, let's face it. >> but that's also a demographic issue. >> i will agree, a key moment when angela merkel made the decision for the continent that all those people from syria were going to come in. you can call that anti-immigration but people in the uk and a lot of people throughout europe felt like why is she making that decision for all of us? >> that's key. >> what britain has is a lot of young people coming in. it's not necessarily immigrants. it's young men and women from asia. >> somebody else making the choices for you. >> in eastern europe they are going to work. >> because of economic opportunity? >> wait, that's it. britain has the best performing economy. >> they are coming to work. >> and they are coming to work.

>> thank you. >> they also have the most powerful financial center and that's why if they decide to leave it will all be worked out in the next couple of years, but the immigration thing is nothing. >> paris thinks they are going to eclipse london if the uk votes. i mean, can you imagine. what are you thinking? >> sully is going to tell me that all the bankers and traders are going to leave mayfair and move to frankfurt. >> no, i'm not. >> yes, you are. you were just about to say to go to there. >> you ever spend time in frankfurt. >> a reason to go to frankfurt. >> clean airport. >> can i put a question in for the ambassador and just turn the conversation briefly. you have a long experience in foreign affairs. i am interested in what you think about a president trump dealing with world leaders, specifically kim jong-un with whom you have some knowledge.

i'm wondering what this phone call would be like. >> it wouldn't go well and you need preparation and trump shoots from the hip. you have to have substance and say i'm not going to talk about him. i worry about trump and i do. i know larry likes -- i saw that column that was articulate but i just worry about him engaging in a trade war with china and with mexico. >> he won't do it him. >> port restrictions. >> i know he has misspoken, i agree with that. some of his off-the-cuff remarks have gotten him into trouble, but let me just say this. i'm not a foreign policy guy but i do follow the campaign very closely. he wants to restructure nato. so does everybody else. he wants to destroy isis in their safe haven. so does everybody else. he wants to negotiate, he's your kind of guy. he wants to negotiate the art of the deal, china trade, russia, what shouldn't we negotiate? he doesn't want nation-building. i think america is sick of

nation-building. he's not perfect but then again he's got some very good ideas, and on trade particularly, look, china breaks the rules consta constantly and so do other countries and we just passed a customs enforcement act, first time in 40 or 50 years which says if countries repeatedly break the rules then we can apply, the united states can apply temporary targeted tariffs, not across the board targeted, temporary targeted tariffs. clinton did it. reagan did it, obama's done it, et cetera. i don't regard that as a trade war. i think he is trying to help a lot of middle class workers who have really got the short end of the stick, but that's different than protectionism. >> governor bill richeson, great to have you. larry kudlow, cnbc contributor. >> one of my favorite people. >> i don't blame you. "power lunch" will be right back. wouldn't a deal involve two parties discussing something? a little give? a little take?

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up next, exclusive comments from bill gross on his fractured relationship with his former colleagues at pimco specifically, his former friend mohammed elarian. he'll speak on that topic coming up next. why are you deleting these photos?

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welcome back, everybody. you will might recall that we recently sat down with bill gross not about the markets but for an exclusive interview, a candid one, where we covered a wide range of topics on air from the fed to his thoughts on the brexit and did a sit-down interview, a long form one for

cnbc.com where he opened up against his lawsuit with pimco and strained relationship with former friend mohammed elarian. >> let's get the lawsuit stuff out of the way first. i know you probably can't go not details but have you talked to anybody at pimco? you vukd to mohammed? >> i haven't seen mohammed since -- since he left, and i've talked to a few people at pimco. some friends that have left women cobut basically even though we're a block down the street with almost an identical 21-story building, you know, i haven't mixed much, as they say. >> that's the thing you guys are together. basically in this, if you viewers saw how physically close you were. if you ran into mohammed, what would you say to him? >> oh, not much. there's still some animosity from my standpoint simply

because he was my successor and he left, and i don't think i've ever been sure why, and -- and events followed, of course, which, you know, the lawsuit suggests, but -- but, no, mohammed and i are not friends and i doubt we'll ever be friends. >> you can see is the entire interview on our website powerlunch.cnbc.com and did this in three parts. opened up about the lawsuit and why he started over. you're a billionaire, why did you start over? >> why did you need to do this? >> for his self-respect. >> and he's competitive and wants to compete and right now he wants to shove it somewhere on pimco. >> where the bond yield don't shine, my friend. >> no, i mean, he said that. i don't know if you saw that. we're rolling it out and roll out another piece tomorrow and he said that. this is a guy that people don't realize. he gets up super early and checks his computer and knows his results. not every day but every hour and he does actively trade.

doesn't buy a bond and sit back for ten years, i mean, he trades a lot. >> he's also -- whenever he talks in these interviews, he's so zen, all the yoga that he does come out but i bet behind closed doors he pounds the table. >> i've gotten a chance to know bill a little bit and he's extremely competitive. >> very competitive guy. >> he is aggressive. you hear that term with him. >> a very good golfer. >> known to have known to yell at people. >> the guy started a firm with nothing and built it to 2 trillion in assets and was booted out and is pissed off. >> as an understatement. >> he's mad, i should have said. see the rest on powerlunch.cnbc.com. he's mad. >> melissa? >> just after 2:00, stocks trading in a very narrow range and this, of course, following fed chair janet yellen's testimony before congress. the dow briefly turned negative but in the positive and the s&p

and nasdaq is in the oil. oil under pressure down by 1.4%. we're seeing telecom and energy, materials and health care are the lagging sectors. >> counting down to the big vote. on thursday uk voters will decide whether to remain in the european union or leave. the british pound weaker today, pulling away from a five and a half month high against the dollar yesterday and the dollar stronger against the euro today. one poll showing the campaign for britain to stay in the u.s., eu, is losing steam. the poll by survation puts support in at 45% ahead of out at 44%. the previous poll showed in at 45%, three points ahead of out. so what should investors do with their portfolio? what should you buy if leave wins? what do you buy if it stays? a closer look now. >> reporter: hey, michelle.

with such a tight race, as you've been talking about, you node a brexit and bremain portfolio on hand. first the brexit trades if the uk does vote to leave the eu. in that scenario one of the biggest casualties would of course, be the pound and according to morgan stanley the industries that would be most sensitive to a falling sterling and the leave vote are media banks and soft weigh. those that would be least sensitive are food and household products. they could be good bets if a brexit does happen. now, when it comes to individual stocks that could outperform in the form of a brexit look for names that have an inverse correlation to sterling, johnson & johnson and p & g to name a few. and the remain trades, stocks vulnerable to a brexit due to their high exposure to the british market could actually rally in the event that the uk decides to stay. consider one of these names. liberty global. it's already fallen nearly 10% over the last week aloefnl the

cable operator has said that a leave vote would create political, regulatory and economic uncertainty and lead it to invest elsewhere in the future should britain vote to stay. that stock could see a nice relief pop. whatever happened on thursday, we're likely to see big moves in the markets and that will determine what you do in the portfolio and there's a few brexit and bremain trades. >> got it. let's get the latest on the brexit battle. cnbc's wilfred frost joins us live from london. wilfred, the polls are very tight and the markets as if they are not. it acts as if remain is going to win and if it doesn't it sets up to be a really interesting friday if the markets have gotten it wrong, right? >> reporter: it certainly does, michelle. you've hit the nail on the head. the last knife days net have seen big gains for markets, big gains for the risk-related assets that have been moving around the brexit.

apart from the last days as we've discussed already, we saw the pound come back after that survation poll came out. the pound is a great way to look at this. we're near the highs of the year, certainly were earlier in the day. we're near the highs since the debate began, since the campaigns began and george soros highlighting how far sterling could fall if we did get that surprise exit vote and you're right. it would a surprise if we now got it but perhaps not that much of a surprise when you sense the uncertainty still that goes around here. you know, i think people were two days away, starting to harden their opinion. do they vote with their head or with their gut, and the interesting event with the survation pal is undecideds were deciding to leave. >> when you look at the chart we just had up, the moves from the lows in the last week as you highlighted has been breath taking from had a move in

currency, absolutely huge. here's the thing. what if it's telling us that even if they do vote leave it doesn't matter that much? >> well, i -- my take would be that's not what it's telling us. i think you had it right the first time, that i think people have built a lot of confidence over the weekend, that remain had bounced back from its uncertainty of how it was doing and that the pound has rallied as if to say that that's what markets are expecting and we got a little flutter today with the survation showed leave gaining momentum. half a percent immediately and a further quarter percent during the rest day. i think if we did get a vote to leave we would see a significant weakness in the pound. i'm not sure we'll go as far as george soros has suggested as far as 115. that's a very big move indeed, but i think we would see uncertainty on the day of the vote if we saw that and, of course, equities have moved as well. this has not just moved the pound. risk assets globally.

we've seen gold and bonds do well on days when it's been leave expecting to win and equities do well on other days. >> for those of us who cannot get to london right now. what's the move? aside from england's dismal performance at euro 2016, and i think that's a fair thing to say, how common is this? billboards everywhere, people arguing in the streets in what's the mood of london right now? >> yeah, absolutely right. interestingly england not doing great but we did qualify >> you backed in, my friend. you backed in. >> doing fantastically well so northern ireland is slipping a little bit in recent minutes. i think the mood is tense. people are much more engaged in this than the general election, the general election that i covered around about a year ago to elect david cameron as prime minister again. this is much, much more important, something bubbling away under the surface since the coal community was created and

britain then joined the european economic community in 1973. it became the european union in 1993. we've debated for most of the '90s whether we should join the euro. we didn't and now, of course this, comes down to it. this is a once in a lifetime vote. beam care passionately about it and argue about it much more than they do other elections and it's way closer than david cameron thought it would be. otherwise he wouldn't have delivered the referendum and just a day to go before the polls. >> and i'm sure he regrets that completely. wilfred will be there until the vote. >> apple up a percent, pacing for its best day since may 25th but the stock is down 24% in the past year, wiping out $200 billion in market cap and shares might drop even further. on friday apple is set to lose its weighting and will have a

shuffli shuffling in the russell 1000. they will go from 2.5.down from 2.77% and it's worth noting that $100 billion are indexed to the russell 1000 so could we see pressure ahead on apple shares? >> unlikely that we're going to see pressure. a lot of that is priced in. if you take the decline in the waiting for growth investors and then the russell will increase the value. take those to net amount. you're looking at $1 billion or 2 billion in kind of lost equity value of apple or selling pressure on a 500-plus billion market gap so it's a really small number in the first place and separately is given everyone knows about this trade, i think that's largely priced in. i think apple has bigger issues with investors beyond what's going on with the russell. >> and some people are say thalgt rebalancing and reclassification of apple to 92%

growth versus 8% value really underscores what the market has been thinking about apple, and that is that it's no longer that engine for growth. i mean, isn't that the main problem? how does apple get past that and become the growth stock that it once was or are apple's days as a growth stock, purely growth stock, over? >> i want to make a distinction that we're favorable and positive on the shares here, even though some of the underlying fundamentals are negative and the underlying funtals is the iphone is going to be down and this won't be as big of a growth story as it was in the past, but that said i think there's a big opportunity in the stock. the reason why it's not as big of a growth story is their core market, the phone, isn't growing as fast and that puts a lot of pressure on news segments, whether it's mixed reality or automotive. ultimately we feel that this will return to a sizable growth story, not the same growth that it had two years ago, but enough growth where investors, growth

investors will come back when other sectors become more apparent. >> for somebody who thinks its best growth days are behind it. the price that you have, 153, quite an increase in where the shares are right now and one would think that that would classify it as a growth stock. >> i think that the multiple can expand and the other categories are an important part of it beyond what is going to happen with the iphone this year and next year and we'll look back five years from now and think that ultimately steve jobs held apple back. if you look at how much they are spending on r & d. again, those things when they come to fruition will be good for the stock. >> gene munster of piper jaffrey. >> thank you. >> the fight against zika, one company putting us closer than ever to a potential vaccine. the stock is up today, up 70% this year. its ceo joins us exclusively. and a tragic accident puts

jeep in the spot light. the key feature that led to a israel of the model that killed hollywood actor andre yelchin. man 1: i came as fast as i could. what's up?

man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. the peak travel season, health officials are raising the alarm about the continued spread of the zika virus. meg tirrell joins us.

>> reporter: today the world health organization released its health advice for travelers headed to brazil for the games and its recommendations span being cautious around wild life including scorpions and snakes to practicing food and water safety and travel-related advantages owns. these, of course, can include vaccines for hepatitis "a" as well as yellow fever and typhoid fever depending on where in brazil travelers intend to go. one virus of concern for which we don't have an approved vaccine is zika. the ww.h.o. doesn't recommend postponing or moving the games from brazil where zika has hit the hardest because the games are held during winter when the transmission of disease is lower. they advise pregnant women not to travel to areas of ongoing zika outbreaks. >> one company leading the charge against the zika virus is

onovio. you seem to be johnny on the spot when it comes to infectious diseases. whenever something pops up inovio comes up and you're working on a vaccine and we saw that with ebola and i went on your website and saw how many drugs you're currently testing. it's 13 and when you add zika in it's 14. are you spread too thin at this point because you don't have actually anything that's been approved and is in the marketplace? >> so i think our pipeline is very full and very productive. we're able to advance a lot of products, including our lead product that will be ent pittsburgh phase three pivotal studies later this year and for treating several call displasia. we've treated a technology platform that can generate the products using the same mechanism of action and has protected with over 1,000 patents globally so we can rapidly and safely move these

programs forward. we've been able to get a lot of funding from nih and darpa and others and that's why i like to partner with big companies like roche and metamune. >> you finished the phase two trial in 2014. it's been about two years, and i still haven't started the phase three, is that right? that's a long delay. >> we have just met with the fda a couple months ago and gotten the okay to proceed to phase three. you know, it's -- it takes a long time to take new disruptive technologies for these important diseases forward, so we're very much excited to start the phase three later this year. >> are you getting questions from investors though about that time line? i mean, the fda has been pretty -- pretty admired for moving very quickly, especially in cancer, and two years is a very, very long time period between phase two and phase three. are investors asking you why

you're not moving faster? >> during that time we're able to publish top data in "the lancet," one of the top medical journals and we're also able to make and manufacture commercial-scale devices which can deliver these products. at the same time we're successful in producing at a larger scale a commercial level of these vjx 3100 products. >> which is your cervical displasia drug. in terms of ebola and other drugs in the pipeline, i interviewed first in november 2014 on "fast money" and we talked about this vaccine coming to money and more time has passed than you have forecasted in terms of approval. at the same time, you've just filed on june 17th an at the money equity offering for up to $50 million, and that raises the question you have potentially 14 drugs in the pipeline here. you ended the last quarter, the first quarter with $147 million of cash and cash equivalence.

do you have the funding and the focus to actually get a product approved by the fda through phase three and on to the market? when is that going to happen? >> well, we think so. we certainly have the right resources. we have 200-plus dedicated scientists and vaccine developers going to work every day in advancing these programs. you talked about the financial resources. we're adding more. >> because you have to? >> no, we want to plan for the future. we want to make sure that the financial resources is not the rate-limiting step. we have a fabulous technology where we can make these products and advance them. getting the -- the critical validation through our testing, trials whether it's phase one or phase three, have been an amazing development for us and getting the partners like roche and metamune have been

successful and very helpful. >> i twroont ask you about ebola as well because that's one of the topics we spoke to you about a few years ago. when you got $40 million in darpa funding you were competing in a space for ebola with merck, johnson & johnson and glaxosmithkline and they are very advanced. merck had a trial, 100% f-cassy in terms of interim results. you reported interim naze one results from healthy volunteers. how do you compete with huge companies like that? i mean, people invested in inovio and your press releases based on getting darpa funding? is it fair when you have all these competitors? >> we've got think more in terms of leap-frogging the technology. we have a platform that we can use to get the data that we want from the trials. for instance, ebola, we're in

the process of completing our first 75-subject study and we were able to produce antibodies that can protect the patients perhaps and we're in the process of submitting those papers for peer review publication so, you know, the public -- the medical product development is a long and arduous road. we're fortunate enough to have a technology and dna-based therapies where we can safely and perhaps more efficiently and effectively advance these products, so we'll looking forward to hitting our milestones and first starting the zika study and finishing the first 40-subject study. typically you start with a small study for safety. >> right. >> and we're planning to go into a field study very rapidly to test the vaccine. >> we've got to go. thanks so much for your time, dr. joseph kim, the ceo of

inovio. fiat was under fire after the car driven in the accident that killed him was recalled. more on that next. puwith meta appetite control. you and temptation clinically proven to help reduce hunger between meals. new, from metamucil, the #1 doctor recommended brand.

i'm courtney reagan and

here's your cnbc news update at this hour. secretary of state john kerry speaking at a lbgt pride and stayed event telling the crowd while the fight for equality is still not over one should always remember the distance traveled. >> what makes us different is that we're united by an uncommon idea. the idea that we are all created equal and we are all endowed with inalienable rights. that's what defines america and what makes us different from any other country in the face of this planet. it's worth fighting for. >> u.s. representative chaka fattah was convicted of orchestrating multiple frauds that prosecutors say was aimed at enriching himself is. the 59-year-old fattah represented parts of philadelphia for more than two decades was found guilty of numerous counts of racketeering, bribery and fraud. boeing says it signed an agreement with iran air execs pressing interest in buying the aircraft setting up the biggest

deal between the two countries since the 1979 u.s. embassy takeover in tehran. and mcdonald's has returned the lobster roll to its menu in 600 locations throughout new england and new york at a price. at 8.99, by farhe most expensive item on the menu this summer. that's the cnbc news update at this hour for now. back to you. >> thanks very much. courtney, up next more on the tragic death of actor anton yelchin, the car that killed him, a-related jeep. what you need to know if you own a recalled vehicle next. w's the? check it out. lights. meeting configuration. blueprints. call hruska. we've gotta set up a meeting. sure. how do you spell that? abreu, albert, allen, anderson c, anderson r.... you know what? i'll just tell him myself. door. andrade... it's about time business communications caught up. call anyone in your network just by saying their name. call hruska. vonage. business grade. people friendly.

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thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it?

you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. new questions emerging today after it was revealed that the 2015 jeep grand cherokee was a model under recall by fiat chrysler and though it's too early to determine the cause of anton yelchin's actor. the "star trek" actor was killed when his jeep rolled down the driveway and a recall was issued on the jeep due to a problem with the gearshift, drivers believing their car was in park when in fact it had slipped into neutral.

here's nbc news' tom costello on the "today" show this morning demonstrating the problem. >> here's the issue on these cars. it's in the electronic gearshifter and it's spring loaded. watch what happens. i take my gear and move it into a drive portion right? watch what happens with that. it springs right back into a center position. one more time. i'm going to take the car and it's in park right now and i'm going to put it into drive and i do this, and it springs right back into this middle position, so that has been a problem, because some people think they are in fact but they are in reverse or neutral. >> that, phil lebeau, looks like a problem there that looks fairly easy to accomplish. didn't seem like tom was having any difficulty making it spring back into a neutral position where you might start rolling backwards or forwards. >> and tyler, we're seeing that not just with these jeep models but this is the new wave when it comes to gearshifters that you see from a number of automakers

where you have a standard gearshifter and maybe you'll press "p" pore park or this way for driver or this way for reverse and there can be confusion for the drivers. that's as the heart of this issue and recall and there are some questions about whether or not there's a software or a mechanical issue that might lead to these vehicles slipping in or out of park. that hasn't been proven but that's certainly one thing that investigators are looking at as all. >> phil, this is an interesting problem because normally a recall is going to be a mechanical defect. you put it in. the mechanic does this or that. nothing mechanically wrong. this is a design issue. >> brian, you don't know that for sure, there's nothing meman call here. we don't think there's something mechanical here and it's being investigated, but your point, is look, you're talking about the design of switch or gearshifter and should it have been design that had way? that's a fair discussion and operator error you never want to say it's the driver's fault but if you go back to the toyota

unaccelerate unaccelerated driver situations, they were driver error. >> i'm not blaming the operator. this is the same shifter. it happened to a viewer that's in the audi a8. 2011 to 2012 and edmunds back in 2011 did a review of the car and great car, can't figure out the shifter. i'm summarizing. i'm not criticizing drivers or whatever, phil, simply saying if they turn out that this is not a mechanical issue, it's just a learning how to use this sort of odd system issue, what do you do if you're jeep? do you accept the car back because people say i don't feel safe. i can't figure it out. >> i'm not sure how many people will say i don't feel safe and certainly if somebody goes into a jeep dealership and says i don't feel safe and i have trouble shifting in this vehicle they will find you a way to get

into a different jeep model that you feel more comfortable w.at the end of the day what you're dealing with is an issue as we transition to vehicles that move away from that traditional gearshift that we had on the column or in the center stack. >> it clunks into place, into position, that's very electronic. >> right. >> and just looking what the tom did there, it looked very easy to have that happen. it looked like you touch it back and you let it go. boom. lets it go and it springs back. that looks trouble. how many cars are involved here, do you know? >> 1.1 million are involved in this recall, and about 800,000 of those are -- >> that's hugely popular. >> the most popular vehicle in the jeep lineup. jeep grand cherokee sales up 19%, four times greater growth than you're seeing for the entire market overall which is up 2%. this is the hot model, and i should point out. i have friends who have said to me, look, i'm thinking about

buying a jeep grand cherokee and you have to be aware, there's been some issues and it's near the bottom on a lot of surveys. what their answer warnings i don't care, it's good looking. >> they want it. >> that's what's happening for jeep. >> i drive a jeep. >> a hot brand great styling. >> and obviously i'm guessing, and we've got to go and the people who bought the characters 99% of them test drove is before they bought, it used it, obviously didn't see that it was a problem. >> right. >> all right. phil, thank you. >> we all have to get used to t.new levels of shifters, and it's going to be happening more and more. >> phil, thank you. >> that is the hazard of being auto reporter. everybody wants to know what you think of cars. >> reporter: oil prize taking another leg lower today. remember, the july crot closing at 48.will 5 which rolls off the board at the close and we're looking at august which closed a little bit closer to $50 a bear. the dollar was a little bit higher today which was

supportive of these prices moving lower but also buying the dip under this $48 level is probably something trade remembers going to want to do so look for these prices to continue to trade in a very tight range. api this afternoon and doe tomorrow. back for you. >> we'll be watching for the data points. thanks, jackie. fires continue to rage across los angeles county, triple-digit temperatures and drought conditions contributing to three separate fires that have burned nearly 20 square miles. here's nbc news correspondent steve patterson with the late. steve? >> and michelle, if you broaden that out, there's some 5,000 firefighters fighting six major fires across the state of california. here in southern california we just had an update to firefighters. they are saying the fish fire and the reservoir fire are now so close together, about a mile and a half apart, that they have combined their efforts here so 800 firefighters on the ground and fighting a fire that has torched about 5,400 -- 5,400 acres of land up there, and they are dealing with a few things.

one obviously the heat is starting to be a factor, as it has been the last few days. not only does it kind of care el embers and blow smoke hover that hillside, but it's also affecting, guys, in 602080 pounds of gear. not only in that in that hillside behind me there are power lines so they are trying to avoid the intersection that have fire from those power lines, and also trying to get a line because they don't have any containment on this fire whatsoever. if you broaden out, too, there's another fire down in southern california near the u.s.-mexico board, the border fire. that's charred about 7,400 acres and it's burned three structures and injured one firefighter so firefighters really today concentrating on paring these fires down before it gets really, really hot. michelle? >> all right. thanks so much. >> all right. big transition here. let's go street talk and analyst recommendations on the stocks that you need to know about. first stock, marathon oil. it's a double upgrade for mro, morgan stanley, upgrading to an

overweight with an equal weight with a $21 target. that's 40% upside and i'll summarize higher oil prices and a better oil portfolio should help the stock. also today, capital one securities upgrading mro and analysts thinking the stock is discounted to its peers to its net asset value. target is 17, much less than morgan stanley and still 15% upside. >> and one of the stocks if you believe oil prices are going higher you would have better leveraged oil prices. pavel mention that had from raymond james when he was raising his oil stocks. web md, you know how google is fine tuning its medical search results. investors thought that would be bad news for web md which is still seeing a decline on the news. raymond james says the fears are overblown and the intent of the changes to the google searches to is to identify symptoms well enough to do in-depth research on the web or talk to a medical professional so they said this won't have a material impact. >> every doctor i know, i've got

a headache, could be you bumped your head or you have brain cancer. >> you have a tumor. >> i'm that way, 100%. >> every time i go to a website i get more squared about any sort of thing. key bank capital markets, positive on web md noting that even as google's sort of drive to web md has gone down, web md's ad revenue has gone up. >> how interesting. >> third stock, an oil driller, keybanc upgrading it from an overweight to sector weight. they say the company is the best position land drilling contractor ahead of any increased activity. analysts say the upturn has already begun. hearing the same thing. >> the upturn has begun. >> i'm getting e-mails from people in the bakken and incompleted wells are coming back. analysts believe hp, that's the ticker, how much annoyed hewlett-packard, by the way also, supply 50% of any incremental new demand for horizontal so a bullish california. >> that feeds into the whole

notion of a self fulfilling oil price. >> that's the risk. >> oh, prices are down. >> whole foods, credit suisse is defending whole foods even as sentiment is negative due to unclean conditions at one of its processing plants in massachusetts and the analyst sees a unique chance to own the stock while it's in the early stages of repositioning. recent headlines not good but it does create a better setup here in terms of entry into the stock. >> the entry was whole foods has a processing plant? you pictured everybody behind there. >> for pre-made foods and sgluch can we put up a longer term charts? >> at darling, a $65 dollar stock and it's lost half of its value. >> today's under-the-radar name is catalin, ctlt, new jersey-based drug company working with 40 of the top 50 pharmaceutical companies. the stock needs work, down 20% in one month, secondary offering

and firms out defending it. wells fargo upgrading it to an outperform in part because the business is, quote, sticky and for a chance of industry consolidation, their valuation range 26 to 28 a share, 15% upside. merrill lynch, by the way, also upgrading this stock. i think it was yesterday or friday. it was close. >> tough sector to be in though, health care, very tough these days. >> i went to the website and looking around and couldn't exactly figure what they did. weird language. >> maybe that's part of the problem with the stock. >> drug development and delivery, like not in a van. >> free talk is over. gold taking a hit. prices sliding over the past week and how to trade it. that is next. i'm here at the td ameritrade trader offices.

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it is now time for trading nation because traders trade better together so let's take a look at gold. it is sinking 1.5% today and where is the long-term future? dennis, would you be or have you been a buyer of gold today or lately? >> i have not, but i think gold is a buy here.

there's two things had the immediate horizon that everybody is talking about the brexit and the thing about goldsy was always a seller of gold as an asset glass because you can't put gold in a volt and make more and currently though in the marketplace, as we move towards the negative rates you put dollars in a vault and they are going to start destroying each other. there's a possibility if you invest dollars that you'll get less dollars back in a year's time so the lack of yield on gold had long been an argument but negative yield is throughout the economy. >> yeah. >> gold is synthetically has a positive yield. >> there's the headline, gold, safer than dollar. rich ross, how do the charts on gold look, bullish or bear strategic defense initiative. >> brian, whether britain brexits or bremain and gold should brenifit. i'll bring up the charts for

you. >> how many times did he practice that? >> look at year-to-date chart. you're up 20% and most of that comes in the first six weeks. since then we've been constrained within this very well-defined trading range, 1,200 on the low end and 1,300 on high end and the real magic happens on the longer term chart, as we know. let's bring up the weakling. the 100-day moving average and 2,900 week up top. above the 200 week at 12, 13, 13, you push all in on gold. i'm in right now. i'm all in above 1312. a little bearish megaphone broadening top formation which i don't love that but absent that gold works. or if peace prevails on the bremain the dollarizes and i like it either way. i think it's a two-way star. you're a buyer of gold. >> can you do it again, rich, the brexit, bremain.

do it again. try the veal, twice a week. thank you both very much. optimistic on gold. all right. for more trading nation head to our website, i officially want to be referred to at bremain sullivan. >> you heard about this brexit. less than two days before the uk voters will head to the polls to vote on whether to brexit or bremain in the european union. the impact may have an impact on the presidential race here in the u.s. as well. we'll have more when brower lunch remains. 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

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want to leave the uk, angry, economic displacement, distrust of government, it sounds like bernie sanders supporters and trump supporters as well are all part of the same grew. if leave, what does that say about our election here, anything? >> well, it would say that perhaps donald trump has a better chance than expected, and it would disrupt a narrative that's really disfavoring him at this point. he seems in total disarray. so, you know, we change the subject from hillary clinton to now having basically equaled or eliminated the republican advantage on terrorism through the orlando pulse attack, and now she's trying to basically trying to define him very negatively with $40 million in ads compared to zero for trump and to really remove his advantage on economics. so he desperately need as bit of a change. he's fired his campaign manager.

if we see a breks it vote to remain status quo continues, the tail risk disappears. if on the other hand we have a surprise vote and the game plan is to leave as well. >> the people who generally want to leave are the anti-establishment. those are the people who flocked to donald trump on the right of center side and to sanders on the left of center, so it really is a big thing. as you go deeper down the tickets, what do you expect in terms of anti-incumbent, anti-establishment reaction? >> well, tyler, it's interesting. before the really renewed focus on brexit down the stretch here, you know, we were beginning to believe that mrs. clinton's prospects were rising because it's becoming harder and harder to, you know, really hold on with any faith that trump will

ever mount a disciplined campaign. but on the other hand, you know, we've seen episodes in the past wherein you've had the lonely landslide, for instance, in 1972 with george mcgovern. so there's a sense of balance the american people sometimes have. there's a little complacency if hillary breateats trump badly. they can actually shift their focus to maintaining the senate along with dollar resources, and i think we might actually get some important news in the next couple of days as well if marco rubio decides to reverse himself and actually run for re-election, which would give the republican as better chance. >> he's going to do that in like two days. is there a tornado coming? >> i was going to say. clouds over washington. it's a symbol of the election

maybe? >> ghostbusters. metaphorical. >> good talking to you. cheers. some bullish signs in home building, but the stock is down. what are the companies saying about the housing market. it's a question we get from some of our largest banking clients. the face of their business was tellers. then atm's. today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up.

homebuilders reporting earning, selling more homes at higher prices. that's usually a good formula. our diana olynick was on the

call. what did lennar say? >> also thanks to it very diversified portfolio. today lennar's ceo said the focus next is back to basics. they branched out into multi-family, distressed mortgages and a mixed mortgage community called five points. all have independent leadership and are no longer his core focus. >> well, under the lennar umbrella we all tend to thrive and work together. synergistically it's to revert to home builder and present as opportunities present themselves find proper homes for those opportunities. >> five points has been heading for an ipo but miller said, quote, it doesn't happen to be there next. he said he's not as concerned as

others are that apartment rentals are overheating. he credited the markets and the understanding of local markets. as for single family, the average price of homes presented by lennar, the only weak spot was in houston where the fallout from oil was showing up in housing demand. back to you, guys. >> all right, diana. thank you very much. what is lennar signaling for the remainder? >> bob, you've loved lennar for a while. they put this number in. does this translate to all the other homebuilders or is lennar a specialized story? >> number one, never discount them. they're a wonderful team. this is a great opportunity for investors to participate in the lennar formula for creating value. if you're going to look at the industry now, slow and steady growth. very strong fundamentals. we're incrementally confident.

this is great for lennar. this is a buying opportunity in the stock. it's a great entry point. we also like it's also bullish for the other high-quality builders like d.r. horton. >> do you like the streamlining of it and what does that say about some of the others? >> the best thing about lennar, they know how to make money across the housing cycle. this is not the first time they've done this. they did this back in the '90s. they can spin out in a tax spinout ipo. they have a rock star management team. so we think this is a $46 stock that in a breakup scenario could be worth $63. plenty of upside for the patient investor with a three-year time frame. >> all right. bob, we're going leave it there. thanks a lot for your time. >> thank you.

>> end of the macro markets here, the dow just off its high. it hit it just 20 minutes ago. up 60 points. our highs. also trard der andy brenner say it took off. >> here's the thing. the markets have so priced in. bremain and polls have been so wrong. >> they were wrong in the general election. >> because people lie at the polls. >> right. so here's the thing. if the betting market has it wrong, it's going to be ugly, or it's going to prove it's way better on polls. >> or if they're close and it still remains, that still could lead to instability. periphery will still feel empowered to have their own referendum. so there could be even if it's a

remain vote. >> i'm going to go out on a limb and make a prediction. >> do it. >> england is going to be here in 500 years no matter what happens. >> no matter what happens tonight, it will be. >> maybe not 500. >> i have a feeling "closing bell" will also mention the brexit. >> it starts right now, so we'll find out. hi, evening, and welcome to the "closing bell." i'm kelly evans at the new york stoxx exchange. >> i'm bill griffeth. did somebody say brexit? >> oh, boy. >> stocks are seemingly in a holding pattern as we await the findings in the uk. there are other big stories. >> how about apple. the new report says apple will only have subtle changes this year. that means there won't be a long line this year. it could have an impact on the alread