think about that before you have a power. thanks so much for watching "power lunch." "closing bell" will start right now. hi, everybody, and welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> and i'm bill griffgriffeth. stocks in the red, telecom, utility are the worst performers and plenty of days when they are the best performers. just that kind of market. another area that's been struggling lately for obvious reasons, european banks, but we have someone today who says there could be a buying opportunity in those beaten down names, and he will explain why coming up in a little bit here. >> apple's pain may be samsung's gain. posting strong numbers for the galaxy phone. where does it leave the new apple iphone coming out? we'll talk about that coming up. >> and shocking new numbers from the cdc on the zika outbreak in

puerto rico as the white house continues to urge bipartisan approval for zika funding. meg tirrell will have that coming up. >> and fbi director james comey getting grilled and an interview with clinton supporter and linkedin founder coming up after the bell. >> dannion and white wave foods and which other companies could be right -- did you write that? >> i did not. >> sara eisen joins us. >> the clubber producers. big food companies are starving for growth so many are scooping up smaller, faster growing brands that are on trend with healthy eating and enter soy milk and plant-based dairy. that's why french yogurt giant dannion is paying up for white wave at 26 times cash fly,

higher than other recent food deals. white wave has long been looked at as a target. wall street analysts expected anyone from general mills, kellogg's, general mills, coca-cola or pepsi kind of all made a play to come in and buy this company. we asked the pepsi cfo hugh johnson if he had looked at it. >> a lot of food and beverage companies are struggling for growth and are trying to reshape their portfolios to hit their expectations. over the last ten years we've reshaped our portfolio already to be consistent with expectations, whether it was acquiring quaker or tropicana or gatorade or izzy or naked so we're really happy with where the portfolio sits right now and it's capable of generating the growth that we've committed to externally. >> pepsi and hugh johnston did say if they wanted a big company like that, then they would have had it. so he's looking at the innovation side of things trying to grow organically, but many other are looking to buy growth, so what's next, we know mondelez

recently bid for hershey and if mondelez comes back with a better offer and hershey accepts, but a big if. arrowhead mills, celestial seasonings and another other number of fast growing healthy brands. many analysts say this is one of the only pure plays left and suntrust robinson cited snack brands and the truth is companies are harder to come by because there's been so much consolidation in the food business in the last year or two. >> what's happening with the pricing for these deals? are they so scarce now that they are pretty rich or how do things look? >> that's why you've got a higher price at white wave today. if you look back at some of the deals, starting two years ago. remember annie's organic cheddar bunnies, general mills scooped that one up. that was a pretty hefty price, 38 times cash flow. just in the last two years, we've seen the biggie kraft and heinz, not an organic healthy

story. that was a story of two giants getting together to cut costs and increase scale. diamond foods, the all monday producer and snyders getting together, a number of them and the valuations have sort of been all over the map, but this one is considered a little bit higher. >> synergies, dannion and white wave, yeah, both in healthy dairy-like products here. is that it? there's companies, one division goes out of favor for one another and as others are selling they have a good product mix. >> it's about growth and about the alternative to these packaged foods and they have to get growth. they also have to get exposure for the u.s. market. for danon this doubles their market to about 22% of total revenues so that's a big part of it. white wave, a company that's been growing, compounded annual growth of 20% but has yet to really go international, small international presence, hasn't had the scope to do so. the other factor to mention is

this is the first pote brexit deal, a french company. it can borrow very easily and very cheaply thanks to mario draghi and negative interest rates, and it is a sign of confidence in this industry or at least the fact that they need to go out and buy growth. >> come on. there's got to be a currency play in here somewhere. >> well, there is a currency play. >> it would work against them. >> it would against them because the euro has weakened against the u.s. dollar so they will to exchange. it's a negative yield play. they can borrow for this. >> there's always a currency. >> i was waiting for it here. >> sara eisen, thanks. >> let's get to our "closing bell" exchange for this thursday with the dow down 77 points. larry glazer from may flower is back with us and ben willis is here at the new york stock exchange and rick santelli, our buddy in chicago joins us as well. ben, i would have thought we would have been a little less volatile today waiting for tomorrow's jobs numbers. what's going on and what's causing the selling.

i guess it's oil, huh? >> it's oil. actually the entire commodities complex. oil is the banner, if you will, but take a look at silver. silver is getting hammered along with some. others. gold is holding up because it's more of a safe haven play and truly not a commodity at least in my humble opinion but i think that leaves the rest of the equity markets starving for something to trade. it's been a very slow trading day, if you will, from that perspective, but i'm anxious to hear from rick today. the real story going around seems to be the interest in government bonds between the u.s. bonds, the ecb bonds and there seems to be a shortage, an idea that major pension funds are going to have to load up. there are hedge funds loading up on the bonds ahead of the trade and there seems to be a scarcity. when the fact of the matter is when the united states holds 20% of their own issuance. the ecb holds 50% of germany's issuance and the bank of japan holds 33% of its own issuances. that's a significant holding or short squeeze, if you will, or

cornering the market. we're hearing a lot of concern about money flows and what's happening in the government bond market. >> what do you think about that, mr. santelli? >> i think it's reprehensible. i mean, these insurance companies, these mutual funds, so many entities out there that have liability asset mismatches and the paper isn't there because ben willis is exactly right. it's on the balance sheet to keep interest rates low, in many cases negative. for what purpose is beside me. so the point of having those huge percentages don't hold water. our own central bank told us their strategy was flawed because the things they thought were temporary, which is really a shortcut because they didn't want to use the proper vernacular of it's not cyclical but structural, the medicine is wrong, has put everybody in the box, and we're going to pay a price for that down the road, and what's more, those same experts in front of brexit told us it's going to take ten years to work this out. look at the telegraph. look at our own website. look at reuters, the swiss, hong kong, singapore, china.

they are all making a bee-line to set up trade agreements with the uk, even before article 50 is triggered because like the song, "love will always find a way," especially when the word love is followed by import/export money. love money will find a way. >> what would you add to that, larry glazer? >> look, virtually everyone is waiting for that next shoe to drop and whether the shoe is going to be political between donald and hillary like we see in the house oversight committee today or whether it's going to be something macro like the ripple effects of brexit or currency-related, maybe we have a currency war or liquidity crisis like in real estate today. so all of these things are a real concerned. investors we talked to are really worried. too much risk in the financial system and see that risk played out in things like the bank stock prices, in default swaps and they worried there's too much complacency in the market right now, when you see high yield and emerging markets and see the vix really low. that shows a lot of complacency, so all the more reasons why tomorrow's jobs report, look,

everybody always says tomorrow's job report is the big one. tomorrow's is really big. it's really big because it sets the narrative for the rest of the year in the equity markets and the bond markets. i think it's absolutely critical. >> goldman is out with its guess of 210, 210,000 for tomorrow. ben, what are you hearing? >> same thing, 200 to 220. again, very bushel, and for those people making the argument that the fed cannot raise -- let raise naturalize this year. >> sure. >> strong number like that certainly brings that back into question, and i think that's a function of what's going on part and parcel of what's going on right now. the idea that the fed -- because the fed funds rate is telling us not until 2019. not exactly sure that market is correct given all the other pressures in the fixed income market. >> ben, i want to go back to what happened this morning in stocks. i guess we had the oil inventories, obviously that sent oil lower again, but then we also had the british pound weakening. what do you think are the forces in this market day to day now which are going to be dictating, you know, the pound weakening, oil weakening. is that going to be the story?

>> right now it looks like that is going to be the story for -- again, i try to hesitate and use oil. i know that there tends to be a correlation early on, but then it will separate itself here and there. oil never should have been where it was. we know now that oil rigs will start to come out at $50 a barrel. the anticipation had been at 60. we're hearing lower numbers and major discoveries which means the major oils are still drilling for oil, even at the levels and that you'll be able to produce $40 barrel oil off the shores of africa at this point so i think the narrative is still concerned about the central banks, that this market, any market throughout the globe is not performing on fundamentals but is performing on fear of what the next central banker is going to do. >> hey, larry, before we go. >> sure. >> you know, we've established here that there's a tremendous appetite among investors for dividend-paying investments. >> that's right. >> they want to find income wherever they can get it these days. >> that's right. >> you want to look overseas to

the dividend payers, why? >> that's right. look, the safety trade has simply gone too far and that's what the market is trying to show us today ahead of that jobs report, and if you look at just the spread between domestic dividend payers and overseas dividend payers, you're going to get a much higher yield for some of the global companies which is why the ftse is outperforming many other markets because of the big dividend-paying names, and you're seeing higher yields and lower valuations and a benefit of currency, and, look, investors can only -- can only chase domestic dividend paying so much. double-digit returns on companies with no revenue growth doesn't make sense forever, so i think that's why you're going to see this rotation into some other areas. it's a great opportunity to rebalance the portfolio here, particularly ahead of a jobs report tomorrow where investors may come to that conclusion. >> all right. very good. thank you, guys. good to see you all. appreciate your thoughts on today's market. >> and this market has the dow down 65 points on the session. again, a mirror image what have we saw yesterday when we started t weak and finished strong.

oil, weaker pound and now a weaker overall market. down down 65 and s&p 5 and nasdaq still down 8. >> the cut-throat smartphone wars and when we come back a look at prospects for samsung and apple and whether apple shareholders have to wait for next year's iphone for a big leg up in the stock. also ahead, a hectic day on the hill, donald trump courting republican members of congress and fbi director james comey defending his agency's decision to not recommend charges against hillary clinton. you're watching cnbc, first in business worldwide.

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welcome back. we're seeing these markets under pressure. the broad index s&p 500 down a quarter percent but the nasdaq is managing to hang on to gains. take a look at humana. antitrust regulators looking to address concerns over their proposed buy out, a trade publication says officials from both companies are set to meet with justice reviewers tomorrow.

humana shares down 10%. among the main concerns, whether the deal will limit consumer choices for the elderly and aetna plans, the potential acquirer, are lower by 4%. >> let's check some other movers by thursday. micron technology among the biggest gainers in the s&p with micron announcing a new manned flash chip that's been optimized for internet things and automotive applications. gartner estimates the internet of things hardware and services market could hit lrg $3.5 trillion by 2020. those are all those smart things in your home, the internet of things. kelly told me. western digital also rising with the hard disc maker late yesterday raising its earnings guidance for the fiscal fourth quarter that ended july 1st. western digital also announced that market long will take on the cfo role on september 1st in addition to his current position as chief strategy officer. kell?

>> let's get to samsung now. posting its best quarterly profits in over two years citing galaxy s-7 smartphone sales after apple saw its first year on-year iphone sale decline s.samsung eclipsing apple as the smartphone of join. michael, this is pretty significant. do you think the days of apple growing its market share of phones are over? >> no, i don't, but i think apple investors will need to be very patient. i think what you're starting to see in roseapple is a focus on the operating system. ios 10 is a game-changer in terms of refinement from the operating system but if people are looking for really big hardware changes, i don't think it's going to be this year. i think it's going to be next year so i think you're going to hear the song that samsung is defeating apple for a while. the reality is i think apple's basically saving its powder and

next year is going to be when apple really makes a splash. >> mark, you were nodding as michael was talking. does that mean in a samsung is winning the battle but they are going to lose the war? put this in perspective for us. >> two years is a long time in terms of smartphone sales. >> right. >> usually what's been shopping that samsung has been catching up to apple. for the first time in a long time the roles are reversed, especially when it comes to things like the camera, the camera in the s-7 is excellent in low light so apple has to catch up. there's a rumor there's a dual camera in the iphone 7 but the wow feature in terms of the o-lead display may not show up until 2017 and samsung, ironically, might be the supplier so at a time that samsung might be pushing into foldable phones, rollup devices that doubles as a phone and tablet, i think he's right. apple is going to continue on software and services, but that might not be enough to get people excited at retail where they are making that decision. >> and to underscore the point you're making, mary meeker says, michael, you know, go back to

2009. ios had a 14% market share. android's share was 4%. >> right, righting. >> go to last year. ios market share 16% and android market share 81%. that's huge. >> well, part of that is the implosion of blackberry, right, so let's be clear. >> yeah. >> one of the things that is important to recognize is samsung, you shouldn't really attach samsung to android too much. samsung is doing everything it possibly can to get out from under android. whether there are ties in software or the operating software they can come up with. particularly when google comes out with the new nexus phone which is really trying to bypass other manufacturers. google is essentially really made android almost a trojan horse at this point, so i think samsung is going to try to get out from under android. that's going to be tough. the app universe is not anywhere near what it needs to be for a new operating system, but i

think you're absolutely right in terms of what was just said about the display and the camera technology. those are game-changers, and part of the reason why smartphone sales i think are not going to crater like people think, i think if you have a point and shoot camera for $145 from canon, i think that's going to crater. needs to be with connected devices. samsung camera is better than apple's camera. it's just that simple. >> at the same time, a lot of people have already got rid of their point and shoot cameras. we were revolving beyond that so people are looking for, you know, the next big thing so from samsung, things like virtual reality, and for apple it might be self-driving cars so i think the race is what is that next big device? apple has the lead when it comes to smart watches and samsung has wearable fitness devices and they are trying to grow their own eco-systems as fast as we can. are we missing the point or not getting to the point when we're

not focusing on the phones themselves? is it going to be some other product that's going to find the real growth for that company, for apple? >> not right in the post-smartphone era but in the last couple of days there's a report that apple has a patent out for augmented reality glasses, right? so obviously they are looking at it, but that's apple's modus operandi. they are never first to market. try to let someone else be best. >> let someone else figure out the answers. >> how long can they wait? >> michael, don't be a stranger. thanks for being with us. >> nice see you. >> take care. >> mark, thanks for joining us here as well. 40 minutes left in the trading session heading to the close with the dow down 57 points right now. >> coming, we'll have a special report on the only company working on a zika vaccine, and it just struck a deal with the u.s. army to speed up development. and up next, donald trump and fbi director james comey both on capitol hill today with two very different experiences. the latest developments coming up after this. ♪

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welcome back. temps crack 90 degrees in washington, d.c. today, but two cool customers made it up to capitol hill. donald trump visited with the republican members of the house and senate as fbi director james comey defended his agency's decision to not recommend charges against hillary clinton. >> we have our own cool customers on the beat. john harwood covering trump and hampton pearson on the comey story. john, let's start with you.

>> reporter: bill, it's an unusual day when donald trump is not the biggest news story out there. that was the case today, but he did go to washington to meet with republican members of the house and senate and try to rally the party behind him. he had some success in that meeting with house members. he was introduced by our friend and cnbc contributor larry kudlow. he followed up with a q&a session with house members and at least one from new york walked away impressed. >> honestly say there was not one negative moment. there was no awkward moment. it was all positive. it was very united, and -- and we'll see where it goes, but today -- if today, you know, the way it's going to be, it's going to be extremely effective campaign. >> not quite the same story in the senate. there were some tense moments. he was challenged at a couple of points by dissident senators including jeff flake of arizona. donald trump said to jeff flake you may have some trouble in your re-election and jeff flake

asked the presumptive republican nominee to explain, among other things, his statement about john mccain saying he admired the people who were not captured in the war. senator flake came out of that meeting saying i still can't support donald trump based on what i know. nevertheless, i think overall you have to say this was a step forward for donald trump to try to unite the republican party and get them behind him. he needs overwhelming support, bill, in order to be competitive with hillary clinton in november. >> all right. john, stay there. half. on, not all the republicans were meeting with donald trump. many of them were in that house oversight committee grilling jim comey. tell us about it. >> reporter: an absolute marathon day for the fbi director on capitol hill defending his decision basically not to bring charges against hillary clinton for her use of a private e-mail server while secretary of state. republicans basically challenging his judgment early and often, but the real moment of the day came during a clash

between comey and florida congressman john micah. >> look me in the eye and listen to what i'm about to say. i did not coordinate that with anyone. the white house, the department of justice, nobody outside the fbi family had any idea what i was about to say. i say that under oath. i stand by that. there was no coordination, no -- there was an insinuation in what you were saying that i don't mean to get strong in responding but i want to make sure i was definitive about that. >> reporter: now committee chairman jason chaffetz, the oversight committee chairman, that is, pushed director comey about whether hillary clinton has lied during this investigation. >> did hillary clinton lie? >> to the fbi, we have no basis to conclude she lied to the fbi. >> did she lie to the public? >> that's a question i'm not qualified to answer. i can speak about what she said to the fbi. >> did she -- did hillary clinton lie under oath?

>> not to the fbi, not in the case you were working. >> do you need a referral from congress to investigate her -- her statements under oath? >> sure do. >> you'll have one. you'll have one in the next few hours. >> reporter: again and again comey said only once in the past century have charges been levied for negligence in handling classified information, and hillary clinton, he said, did not receive special treatment. >> i just want the american people know we real dethis the right way. you can disagree with us, but can you not fairly say we did it in any kind of political way. we don't carry water for anybody. >> reporter: but, wait, there's more. right now, as a matter of fact. the inspectors general from the state department and the intelligence community are telling that same committee how this whole investigation began. >> and looking, john, you know,

throughout the day as comey was making those remarks, donald trump was trying to capitalize on it through additional fund-raising, and he's brought in quite a sum through e-mail and his other activities lately. >> reporter: he has. that a good fund-raising report he put out yesterday. he had not been raising a lot of money during the primaries, of course, because he was put being a lot of his own money in as a loan. he says he's forgiven the loan, but the fact that he was able to along with the republican party and associated entities raise that money, more than $50 million, was a positive sign for him. he also put another 4 million in on his own. just wanted to bring you up to date. just gotten a statement now from the campaign of hillary clinton about the comey hearing that hampton was covering and that we were discussing earlier. the clinton campaign said that they were pleased the hearing took place and that director comey had reconciled some contradictions between what he had said earlier in the week and what hillary clinton's public statements have been. this is about e-mails with classified markings and that sort of thing and said that

they -- the clinton campaign was declaring that republican conspiracy theories would not be proven and that further attempts to exploit it will only backfire. we'll see if that's borne out by what happens in the next few weeks. >> hampton, very quickly, it would appear this is not over yet if -- if the oversight committee puts that request to the fbi to investigate whether hillary clinton lied under oath, right? i mean, this is going to be drawn out some more. >> reporter: well, specifically statements made to congress. that's what mr. chaffetz was trying to get at. the other thing, too, we've had the request from speaker paul ryan repeated again today that now that the investigation is over there's no reason congress shouldn't get its hands on more of the unclassified documents that were part of this investigation going forward. >> all right. john harwood, half. on pearson joining us out of washington. thanks, guys. let's get to a cnbc news update with sue herera. >> here's what's happening at

this hour, one person is dead and four others injured after a random shooting in tennessee. police say the shooter had at least two weapons and fired shots at a local day's inn and vehicles along volunteer parkway. he then shot at three responding officers before he was hit by returning fire. bill cosby arriving at a pennsylvania court with his lawyer who will ask a judge to throw out sex assault charges against him or allow the comedian to face his accuser in court before trial. a trial date could be set if the judge rules against the defense. and a trial begins today for the fourth baltimore police officer charged for his alleged role in the death of freddie gray. police lieutenant brian rice arriving at court this morning. he is the highest ranking officer charged in the case. overseas, a single bunch of grapes sold for just under $11,000 at auction in central japan. ruby roman grapes are known for their sweetness, beautiful color and small star.

a grocery store won the bidding where it will display the grapes and give them away to customers as samples. that comes to about $360 per grape. >> giving them away. >> who wants to go first here? >> i don't know. >> who wants to go first. >> it's amazing. >> does make me feel better about spending 4 bucks on bread. >> getting a bargain. >> i would recommend for your summer reading a book called "popular delusion and the madness of crowds" and one of the most popular delusions was the good old fashioned tulip mania in the 1600s because apparently it's back again, in grapes. >> i did the same story last year. they auction them every year so, i don't know. we haven't seen a top in grapes yet. >> apparently not. >> thank you, sir. >> see you in an hour. >> see you later. i guess they sold a melon for several thousand dollars as well. >> ruby red grapes or something. >> ruby red grapes. >> yeah, very fancy. >> get them at whole foods.

>> the cherries that i got at whole foods that went for about the same amount, by the way. >> whole paycheck. >> 28 minutes left as he tries to back time and get out of here. the dow down 25 points. a key trader and what he's looking at the close. very interesting look and the european banks and what they are telling him now. >> and later we'll go live to idaho and speak to linkedin chairman reid hoffman saying how the acquisition of microsoft could change things up at the professional networking company. stay tuned for that. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.

welcome back. it would appear crude oil was calling the shots today dragging stocks lower after the government reported a much smaller than expected decline in crude inventories down 5%, two-month low of wti at 45.18 and brent crude down almost 5% to $46.40. kell? >> i'm here at the big screen with half an hour left in the training session with mark newton owner and technical analyst and mark you're saying the european banks might have gotten so bad they are good now. >> that's correct. it looks increasingly like

european banks could bottom out the next couple of weeks for a few different reasons. one if you look at a weekly chart going back. you see that we've gotten down to the lowest level since 2011 and these have been hit hard and have dropped 50% just since last july. here was the high last july and here is where we are, really at the lowest level here which should be a very key level of support, and a lot of this depends on yields. banks have fallen yields straight to the downside and are showing a few signs of stabilizing. german bund yields and u.s. treasury yields and ahead of the big number tomorrow. increasingly very important to pay attention to yields trying to bottom out which in turn could help the financial sector at a very crucial time. >> could help the market squarely focused on the problem. is this a trade or an opportunity to get into something that could really pay off longer term because we know the problems of these things? >> technically these have been in a downtrend for a full year. they are in a steep decline so i'm thinking we're going to bottom out. more of a good risk/reward trade that they have. only 3% to the downside near

term whereas the upside could be potentially 10% to 15%. momentum divergence is one thing and momentum has held up while prices fall and that's a positive. nearing former lows. the sentiment has gotten so bullish on treasuries that everyone thinks the ten-year has gone to 11%. time to take a stand and we should see a little bit of a small number and yields pop. that could be good for the financials, european banks in particular, look like a good risk reward. >> you are taking a stand. thanks for joining us. bill? >> media and tech ceos along with powerful investors are in sun valley idaho for the annual allen and company conference. today they heard from the president of argentina, mauricio macri and our julia boorstin was there and caught up with him about his nation's turnaround before he took the stage. >> reporter: that's right. the president is here in sun valley to talk to the business leaders here about how he's reforming argentina's economy and well on his way towards drawing more than $100 million

in foreign investment over the next few years. >> i think that now may be the only good news around the world. the world is a mess, and argentina shows an opportunity, so i think that everybody will understand that being in argentina will be a very good opportunity for doing good business. >> reporter: macri said china is aggressively investing and would be willing to put in all the money that the country needs and that he's pushing for a balance of global investors. as for a global issue weighing on many ceos, brexit, president macri does not think the uk will end up leaving the eu. >> i doubt if this is going to be going to happen, because there are many things to go on before that is finally implemented, you know, so i would imagine that brexit can come through us at the risk of

the end of the united kingdom so that shows that it's not so easy. many leaders that have pushed in the referendum. i -- i think that it -- that they were not -- they were not prepared to win the referendum. >> you can find my entire interview with president macri, including his thoughts on soccer star lionel messi on cnbc.com. guys, back over to you. >> you know, i'm surprised, julia, he wasn't a little more positive, maybe long term, about the uk's decision to leave. as somebody who is resting his own economy in a more market friendly direction. >> well, i think he's really -- he sees argentina's economy increasingly being part of the global economy, of working much more closely with the united states and he had a lot of positive things to say about president obama's trip down to argentina, and he really sees argentina as a participant in the global economy going forward and from his perspective he thinks for the uk to real rebe a global player, it would really

benefit from being part of the eu, so he really doesn't seem to think it's going to go through. obviously we have some time to see how that will all play out. >> indeed. >> yeah. we focus so much on the problems in brazil and venezuela that we've forgotten about the success story that is argentina right now. julia, thank you. julia boorstin in lovely sun valley. coming back a little bit. i haven't seen art cashin with the market on close orders. that's for a little early on that and the dow is down just 28 points so we'll see how we do as we head towards the close. the threat of zika still hanging over the upcoming olympics and closer to home that virus is spreading in puerto rico and prevention funding for the u.s. continues to be a political football. new details from this afternoon's zika update coming up next here. >> these days when you say it's a dog's life, it can be a good thing because fido and friends have become big business. we'll look at the growing popularity of pet insurance. look at that cutie.

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where the jobs are? will markets brace for another momentum surprise. how the fed could use june numbers for its next decision. first word and analysis tomorrow on "squawk box." welcome back. we're keeping an eye on biomarin pharmaceutical and it may be a takeover target of swiss-maker

roche. biomarin is currently at 87 and it's unclear if a formal offer has been made. >> up, but not even close to any of those prices. so from washington to san juan, the threat of the mosquito-borne virus has government officials on edge and how are they doing on solutions? meg tirrell has been tracking it all and joins us with the latest developments. >> that's right. a lot has beening if on in this fight and the most current is that sanofi has teamed up with the u.s. army and they hope they can have it in internal trials and they are working on their own candidate, a dengue vaccine and they are adapting that vaccine to another vaccine as well but the hope is by working with the u.s. army they will be able to expedite that advantages

own and get something in human testing soon. now, one of the concerns that they have and everybody has right now is u.s. funding to fight zika. right now the white house has asked for $1.9 billion in zika funds and congress has not yet al dated it. the house has passed a $1.1 billion bill and senate democrats rejected that saying it contains poison bill provisions that make it unable to accept it and the white house just held a call with reporters bleeding with congress to get together and pass a bipartisan bill before they go into recess next week and i got off the phone with sanofi and they say it makes a big difference, not expecting the vaccine to be necessarily profitable for them so they are trying to figure out other ways to fund it. >> what happened to intrexon? >> they are looking for a way of controlling the mosquitos that spread this disease so right now they are waiting for the go-ahead to start testing this

in florida. the fda has done an environmental review and said it doesn't look like it has an environmental impact, but right now they are kind of talking with the locals and figuring out whether they want to do the tests. these are genetically modified mosquitos and some folks are concerned there could be an impact but the fda hasn't found one. we said there's been some news about puerto rico. the cdc saying as many as 50 pregnant whimper day may be getting infected with zika and, of course, because the biggest concern about zika is because of the birth defects called microcephaly and other birth-related defects next teamly concerning. >> which is enough to put this on a fast track as it pertains to the fda i would assume. >> absolutely. >> what kind of timing? >> if we go into human clinical trials with the vaccine, it could still be another year or two before we get even farther so it's not as if it's going to be an immediate solution so right now we're looking for more funding to be able to send to puerto rico to help with mosquito control and better

tests to find out who has the disease. >> thanks, meg tirrell. 13 minutes left in the trading session and the dow down 25 points. if you keep talking, then he's going to signal me. all right. we've got a big market on close order today. $700 million to buy going into the close. we'll see if that has an impact on the margot. we told you yesterday about potential danger signs in the utility sector. our next guest says another traditional safety play could cause trouble for investors as well and he'll explain what that is coming up next. ng right now? making a cake! ayla reminds me of like a master chef and emiana reminds me of like a monster chef. uh oh. i don't see cake, i just see mess. it's like awful. it feels like i am not actually cleaning it up what's that make mommy do? (doorbell) what's that? swiffer wetjet. so much stuff coming up. this is amazing woah. wow. now i feel more like making a stop cleaning. srt swiffering.

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all right. nine minutes left in the trading session with the dow down 30 points. joining us, andrew slimmin from morgan stanley. we were talking yesterday about the utilities which, of course, will a classic defensive play and the high yields that they are offering right now. you have another sector you're looking at these days that may be in danger territory right now. >> well, i just think there's so much risk-off right now. it makes you cautious on being cautious because the sectors are pretty richly priced. everyone is on one side of the boat which is caution and that gets me a little nervous. >> well, consumer staples, too. >> very expensive. >> an area where people might

think obviously the utilities in those areas and how staples and how risky are they, do you think? >> when everybody is piled into those two sectors it's a sign the market will go up, not down and when the markets go up people chase return more than dividend yield. >> but the fundamentals will dictate that. >> exactly. >> and are you suggesting that they are above where they should be based on the fundamentals and the fundamentals include all of the negative rates around the world. >> sure. >> and the economic difficulties that have brought those on. >> i think there's other parts of the economy in the united states where the fundamentals are actually getting better. if you think about the second half of last year, parts of the economy really fall off a cliff, energy, materials, industrials. >> right. >> so year over year the numbers are going to start to look better in the second half of the year so i think the number for the economy are going to start to improve and people are saying wait a minute, why am i consumer staples and maybe i should be in energy and industrials.

>> any of the cyclical areas seem to have problems. financials, people say how are they going to keep making money and look what oil has done the last couple of days. are you comfortable with the secular stories. financials, that's an old character and for energy, don't forget that year over year energy prices will be higher by the second half versus lower in the first half. and at these levels energy will be about 30% higher than it was last deekcember, if it holds ani do think financials with central bank policy will be a tough go, even the second half. year. >> quickly, do dividends matter to you? everyone is looking for income right now. >> i think dividends are great but i think there's other places to get good dividend yields other than the utilities and consumer staples. there's a lot of good energy and industrial stock with very good dividend yields. >> schneck. >> because nobody wants them because they are higher overall and that's the higher priced

part of the market. >> andrew slimmon from morgan stanley joining us today. we'll come back with the dow down 35 points and today's closing countdown. after the bell, likely gop presidential nominee donald trump trekked back to capitol hill today to meet with republican leaders and cnbc senior contributor larry kudlow was with him. we'll go inside those meetings with larry coming up. you're watching cnbc, first in business worldwide.

heading to the last three minutes, the stuff we discussed during commercial break, i wish you folks could be here. >> nah. we have more fun without you. >> here's what the dow has done today as we wait for tomorrow's jobs number. goldman is out with its prediction of 210,000. >> that's on the aggressive side. >> i think certainly that's an important number but everybody wants to see what they do with the previous months. how much they revise it. >> hopefully they will be revised upward. >> we're finning lower after a higher opening and oil was calling the shots especially after the inventory data out from eia showed a much smaller drawdown than anticipated. down 2.2 billion barrels when they were expecting more than 6.6 million drawdowns. >> and almost no drawdown in gasoline inventory and the good news is gasoline prices are going to be cheap even though demand is high. there's still plenty of gasoline

and they are pumping it like crazy and that's a problem for the refiners because they are not making any money. >> nationally gasoline prices are down 26 days in a row, the national average. ten-year yields still down and around 139. you wonder what will happen to those yields tomorrow if we get a strong number from the jobs report, huh? >> you would think it wouldn't go any lower than 1.40 but a lot of people were saying it wouldn't go any lower than 1 is.70. it's going to be a big number and a market mover no matter what happens. >> big merger day, one in food. whitewave being bought by danone. that stock was up 20% much of the day. there it is up 18.5% at $56.23. pretty much the bid price there at 26.25. >> who knew almond milk is worth so much. >> soy milk and almond milk, a very big market right now and the one we'll be watching tomorrow, executives from humana and etna will be meeting with

doj executives and there's talk maybe there's some big reservations from the justice department regulators on that and both those stocks have been suffering, especially this afternoon on that talk. >> any deal that will go through anymore? any size deal that will get through at all? i'm asking. >> we'll find out. >> i don't know. >> ask them. >> they have all been turned down. >> yeah. >> it's a problem. >> been a tough market. >> the good news, going back to the oil business is you're going to be getting cheap gasoline all summer. that's fantastic news. the bad news if you're an oil refiner it's pretty bad because prices are low. gas -- oil prices are relatively high so look what's going on with the oil refiners. all hitting 52-week lows essentially so it's the summer of discontent and the margins are under pressure so they will have to cut production because there's too much gasoline and their margins round pressure because gas prices are really low and oil prices are relatively higher than they were. that's a major issue. bad news for them and by the

way, $2 drop in gasoline, that's a little bit crazy. a lot of speculators in the oil market for sure. >> thanks, bob. see you later. get ready for that jobs number. we'll have it for you tomorrow morning at 8:30 a.m. eastern time. meantime, the closing bell is ringing here at the stock exchange and team exchange at the nasdaq. stay tuned now for hour number two of "closing bell." see you tomorrow, kell. >> thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. the dow going out with a drop of 25 points. today the s&p in negative territory by only two points. look at the nasdaq. it managed to stay positive. today it was up 17 points, better than a third of 1% so some differentiation across the markets as we were whipsawed by oil. we were much higher earlier in the session and then we finished here. that british pound sterling moving lower again, too.

coming in linkedin co-founder and executive chairman reid hoffman will join us live from the sun valley media conference. definitely want to stay tuned for that. cnbc's senior market commentator mike santolli along with stephanie link from global asset manager. you have money trader tim seymour joins us now as well. >> hi, kelly. >> thank you, tim. you know, mike, i love your question that you posed to the twitter community, how high does the payroll number have to be to bring the fed back into the picture and most people said there is no number. >> no number strong enough that would bring it back for september, i specifically asked about september which seems to be the nearest likely time that there's some play in the expectations. i do wonder if you get well above 200,000 net new jobs and upward revisions to prior months and maybe wage growth that in fact have to raise the odds above zero for september and i think i was really trying to get at the idea of trying to

challenge what's become a very, very comfortable consensus here that the kind of race to zero in yields, the zero growth story is just what we have for the foreseeable future. i think some data can come along and disturb that idea. >> do you think people are too complacent with a ten-year below 1.4% in this country. >> i do, because if you look at some of the economic data points that we've gotten in the last week, week and a half have actually been okay, right? >> yeah, adp, initial claims, ism, ism services and manufacturing, and so i think, you know, it's not that we're going into a recession, and the yield curve is implying we're going into a recession so there's so many mixed signals. totally understand that rates will stay low for longer even if the fed starts a cycling cycle but there will be a push-pull between do you own cyclicals or defensives? but you have to find yield. 318 stocks in the s&p 500 that yield more than ten-year. >> wow. >> so you can find some names in both categories, because i think

that's what you want to do, but i think that's going to continue to be the theme. >> tim, this is all been keying up for the report tomorrow morning 8:30. i mean, it goes back to mike's point, too, which that we're all kind of comfortable with this, you know, $38,000 number from last month. >> i'm not. >> and, you know, it could look very different in the morning. >> well, i think what mike is saying, and i think what i believe is that the risks are probably asymmetric going into this number. i think there's risk to the downside. i think bad data is bad. it's bad for markets, especially in a world where we think the fed is on hold so i think anyone that's crying recession out there is pointing to the labor market as being a very lagging indicator, and the last thing to give ground there. he's no question that employers are much more cautious in this environment. i don't think you necessarily have to equate a lack of hiring with a -- with, you know, a pickup in the firing rates, et cetera, but i do think that this number is very, very important for markets and i think at a time when everyone was already

marking down global growth, tomorrow is a number that, if anything, i would be protected going in based upon the way markets have actually been reasonably complacent this week. >> let me get you straight. you think the risks to the downside are for the economic data in the months ahead here. >> well, i think the risk is that in we print a weaker number and let's just say that his forically when we've had a bad print, expectations for a snap back have typically not been well served and, therefore, to say we're going to do a lot better, i'm not going to make the call. we know what the forecast is. >> got it. >> what i'm saying is markets have been responding to bad data and it's been good in terms of market reaction, and i don't think you're going to get that tomorrow. i think in we get a bad number, i think markets are tilted to the downside and i've actually played into this event where markets actually are offsides going into a weak number. >> yeah. >> i would agree with that, and that's simply because when you already have markets pricing in no fed move through next year

there's simply no kind of silver lining in terms of policy from a poor economic number. on the other hand, you could also say that markets are offsides in the other direction. in other words, the bond market complex is just not prepared for a strong number and so you saw the selloff in the defensive yield stocks today real we treasury yields didn't do a whole lot because they were overheated and overbought and maybe that's something you might see if in fact you do get an upside surprise. >> and you mentioned several places where people can get a dividend yield, better than they can in stocks and bonds and when it comes, for example, to the financials. >> sure. >> are there places that you think, hey, you know, it's not as bad as everything that's being priced in right now. >> on the financials it's challenging because you've got this flat yield curve for sure. show i think if you have a longer term horizon. i think eventually the fed is going to raise rates. it may not be this year. it may not even be next year, but if you have a long-term horizon, these companies are very much much better capitalized and very, very cheap. could stay cheap for a while and

if you have patients you could put some money there. i don't know if you want to be overweight as to when you have a direction when and where the fed is going but i don't want to be overweight staples telecom utilities. i want exposure there, but they are expensive so you have a few of those and you have to also own some of the cyclicals and it comes back to many so of the data we're talking about. the ism number is pretty impressive and the employment data within the ism services was good as well. >> ge getting a lot of attention breaking out or threatening to break out. it blends a lot of that. highest yield among the big industrials and has some click callity and when they have started to break out it has to be last to the party, but it's been the case the last several years that it catches up to the market but doesn't lead it. see if that pans out. >> maybe in contrast to that, tim, where do you think are the attractive places in the market right now? >> well, i tend to think that despite some. news in the stock news and health care sector, i think you have to go to places where going

into earnings season you've seen earnings revisions that have been to the upside and i also believe that actually this may be a tough one to swallow. the retail sector has started to not only turn on the charts but if you think about, again, the comps going into earnings season and where a lot of retailers, and i'm talking about some of the department stores, have actually managed inventory much better than people expected, the balance sheets are actually very, very good. this is a place, if anything, the valuations are very much your friend and i think the -- the comps and the year-over-year benefits of actually benefiting in the sector now after people priced them into extinction is something that's kind of interesting. >> kelly, just to that point. costco. >> exactly. >> did anyone look at that number. >> under the radar. >> it was a flat number. >> l brands. >> costco is a flat number but people thought it would be horrendous and flat was good enough to. tim's point, absolutely. the retail and consumer discretionary. >> l brands, owner of victoria's secret comes out with a 6% comp and only expected to do 2% there. might have been some life yet

and might have been life in the economy or spending or something last month. >> certainly seems like may was horrible and horrific, and we didn't know what that was and then we're hearing data points that june wasn't so horrible. saw an improvement month over month so that is encouraging. i think the most important thing about tomorrow's number is the wage number. rooting for higher wages so that gives more support to the consumer so we'll have to see. >> and a lot of this was overshadowed, of course, by britain's vote to leave the eu. ceo jamie dimon was making comments to an italian newspaper and he said, quote, maybe you can even reverse it. there's always solutions to problems as long as you have the right people in room, end quote. he also spoke about the implications where jpmorgan, if britain does leave the eu, saying the worst case that we might have to relocate a few thousand people to other offices in the eurozone though the majority would stay, stephanie, in the uk. >> i think there's so much uncertainty. we know that -- in the financial services sector.

jpmorgan and goldman sachs and morgan stanley to some degree. we know they have kind of alternative plans, but it's going to take such a long time to get all of this situated and figured out, and so everyone is kind of at a standstill so i actually agree. jamie dimon is saying let's try to get this process a little bit quicker and let's get it going so that we can get some answers and we don't see capital spending totally fall off, consumer spending totally fall off. >> related to that, mike, we learned that the next leader of the conservative party in britain is probably going to be a woman, theresa mayer or andrea ledsom and does that narrowing down. leadership help provide some. clarity as all? >> it does help especially because the guys who fell away, to clear the way for her, were really nobody's favorite and seems like that was just more representative of the kind of turmoil that the party was in so i guess it's a net positive. i still don't think you've dispelled this idea that britain can remain in a state of suspended animation for a while and you're not going to

necessarily have the resolution. jamie dimon's comments say if we get the so-called passport treatment where you have financial services able to operate across the eu from london, that's great but almost nobody thinks that's a likelihood. >> right. >> it seems as if there's going to be a limbo for a while. >> the two main things to watch for out of the e awe ru sti point is any kind rhetoric on what they want italy to do about its banks or what they will will lou them to do about its banks and whether passporting reference will be granted to britain. >> well, i think there's no question we're going to continue to get a lot of headlines. they won't be pretty and in some level i think we'll have a decreation kind of impact from some of these headlines. i really do. >> yeah. >> i also think that the reality for britain and the reality for europe are two very different things in terms. currencies and in the uk's case, this is a total stimulus to that economy. if you look at the better part of the ftse 100, strip out the banks, i mean, you've got a number of companies that really benefit from the weaker pound, and if you look at the euro, as much as people want to talk about how the dollar will

dominate everything, say what you want about the quality. underlying european union fabric, but the euro has a $30 billion, you know, trade surplus, current account surplus. that's going to keep the euro strong, and i think that's going to have some impact on multi-nationals, but don't think that that's going to mean that the dollar is going to stampede everything so i think the headlines are scary, but the realities underlying what is happening on the economy are things that won't change overnight. >> relatedly and before i let you go, tim, what does this all mean from where oil and gold trades from here? >> gold has a wonderful, you know, moment in the sun where people like it for a safe haven and they also like it for a weaker dollar so dollar rallies at safe havens and i think gold also benefits from supply and demand factors and the reality is gold underinvestment and the miners, there's less supply and gold will continue to hold a bid here. i don't think you need to stampede into gold. i think there's $50 to $70 of brexit into gold and not much

more, and i don't think you can expect a lot more. with oil prices i'm surprised the inventory numbers had the numbers today. i'm of the camp that it's between 42 and 50 on brerngts and that's probably -- it's not going to go a lot higher but i don't think it's going a lot lower and that's what a lot of people think it's about to do again. i would be on the other side that have. >> all right. tim. thanks for joining us. >> thanks. >> there's much more coming up next hour. tim and the "fast money" crew start at 5:00. they will be talking to paul sankey at wolf research about the one group of energy stocks that he's calling the canary in the coal hour. that's top of next hour. donald trump meeting with republican leaders on capitol hill including cnbc contributor larry kudlow who has been informally advising the presumptive republican nominee on his tax plan. larry and barany frank go head to head on trump and the fbi director's decision not to recommend charges against hillary clinton and don't miss an exclusive interview with

linkedin ceo reid hoffman. that's all coming up. you're watching cnbc. first in business worldwide. thk you is what we say. but we mean so much more. we mean how can we help? weean what can we do? we mn it's our turn. to do our part. to serve you,

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we have a news alert on juno therapeutics. seema mody what's happening? >> reporter: they are halted. the biopharmaceutical firm has received a notice from the fda a clinical hold has been placed on trial of its leukemia drug after two patients died last week. again, we're looking at shares halted. they will resume trading at 4:35 p.m. eastern. we'll be sure to bring you the price action in that stock when it it reopens. seen as a major setback. kelly, back to you. >> thoughts, guys? >> ce lg ene is a shareholder. kind of comes -- it's terrible news obviously but comes at a really bad time for biotech this. group has lagged so substantially after being a market leader for the last five years so you kind of need good news no get people back in and interested. we'll see if this is kind of a one-off and if investors gravitate to other names out

there. >> still have m & a action in the area with medivation sale process. juano says they have essentially asked the fda if they can continue with the trial under different terms so they have to resubmit some paperwork so it's not as if they are going to aband abandon this therapy, but they are trying to modify it. >> we'll bring more info as we get it. during the height of the financial crisis many people lost their homes to foreclosure but new data shows those numbers have dramatically improved recently. dominic chu has been taking a look at foreclosures and why the economy could be looking up if the housing market continues on this track >> a blig tail wind for the u.s. economy in the coming months could come vie ark the housing market. first of all, the financial condition of many americans is getting better and even though wage gains have stalled out more people are making their mortgage payments on time. according to property analytics firm core logic the number of completed foreclosures in april fell by nearly 16% year over year. that's around 37,000

foreclosures done, down from the 117,000 plus that happened in september of 2010 when we emerged from the depths of the financial crisis. you've also got housing prize on the rise. home prices nationwide in may up nearly 6%. a lot of that though has to do with the amount of available homes for sale. less inventory means higher prices. over the last four years equity for home owners with a mortgage has almost doubled to 6.9 trillion, that's according to corelogic's chief economist. the rapid increase in home equity reflects the improvements in home prize, dwindling distressed borrowers and increased principal repayment. these are all positive fact thoors will provide support to both household balance sheets and the overall economy. now, also keep in mind there are home improvement retailers out there, companies that make home furnishings and fixtures to keep an eye on as well. if perspective home buyers elect to go shopping for fixer-upper

homes they may need work that they can benefit. >> estimate that had more than two-thirds of the economy is driven by consumer spending. if they can hang on to the days in coming days and years it can help companies performing better than a lot of other places in the world. back over to you guys. >> our dominic chu. >> hard to know exactly when, you know, not like we get the monthly retail sales number. hard to gauge when the spending is all hitting and maybe it's something underneath the surface freeing up some spending power for folks. >> yeah, the household balance sheet has been getting healthier for a long time now. the fact that you're going to have those foreclosures rolling off of people's records is a net positive. i feel like if somebody at all is mortgage eligible and things are getting a lot better. at the lower end where you're still stressed by say subprime auto loans and all that, it's not going to look that great. i agree. there's plenty of ability to do more spending. the question is, you know, will people? >> right, or will they continue to save. the savings rate up 5% in the

first quarter so does that continue? it probably does, but do you have on the margins some additional spending for sure. housing is also interesting because the housing stocks mainly are u.s. centric so if you're looking for kind of a theme to not deal with europe or international. >> right. >> i mean, housing certainly could be a place and the home improvement stores have been on fire for the last several years and that can easily continue especially if rates stay low and it's all part and parcel of the same. >> you have a news alert on gap to get to on the retail sales figures. talking about them from earlier retailers and seema mody. >> gap june same-store sales up 2% which is better than estimates helped by old navy where sales there were up by 5% but keep in mind gap store sales were down 1% for the month. we're looking at shares of gap. moving a bit here after hours so we bring up the screen, up 4% after same-store sales gap, month of june, up 2% and better

than expected. >> thank you, seema. we've got three that can make the trend. costco, l brands. >> all of the trend remains month to month inconsistent, both for gap and others. i mean, you mentioned l brands, they beat in june and had a soft warning for july. >> you've got to be careful, mar egyptian, right? >> are they giving this stuff away. i was in hold navy and bought a whole bunch of things for my daughter for a lot less than i normally would have. >> there's a dark cloud to the silver lining. >> coming up, we'll head live to sun valley, iaido, for linkedin ceo reid hoffmann and donald trump on capitol hill to meet with republicans. did he win them over? larry kudlow was there and he joins us coming up on "closing bell." to do one thing another. only at&t has the network, people, and partners

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welcome back. cnbc is live in sun valley idaho where media moguls and tech titans are gathering. reid hoffman joins us now with our own julia boorstin. julia? >> reporter: kelly, thanks so much. thanks so much for joining us here today. i know you're doing a panel with marc andreessen among others about artificial intelligence. why the is it so important for the ceos and investors here to understand ai? >> reporter: so i think artificial intelligence, which seems you'll hear as machine learning, is going to be transforming massive swaths of the area of work in the economy and it used to be that when people thought about technology transforming and industry and productivity and they thought

about manufacturing lines and thought about efficient transport and energy. this will actually even if affect professional spheres. for example, one thing like 10 to 20 years from now, if you're going to be an effective lawyer or doctor, an effective financial analyst it will be in part in your ability to use the technological implements which are loosely going on the name of artificial intelligence and ways of doing large amounts of data and intense classifications and doing it in ways we may even be discovering something new ourselves. >> you recently wrote an article, a column for "time" magazine about how robots will be taking our job. what does all this ai stuff mean for the american economy? >> we're in fact a technological leader. one of the things we're strong about so i think it could have have i positive and dynamic effects. yes, jobs will be going away. we need to focus on entrepreneurship and creating new jobs and the jobs that exist will also be technology enabled in the way part of the skill set

for the job is having the technology skills. that's programming skills. that's like, for example, knowing how to use excel or knowing how to use word and now at a more sophisticated level in order to be able to do your job well. >> do you think that america has the education in place to train for this next generation? >> i think we need to get it? you know, it is a common and i think intelligent worry that our education is insufficiently s.t.e.m. and insufficiently technical and inefficient ly lacking in some areas. >> you actually haven't made any investments in artificial intelligence. what are the areas you're most interested in investing in right now? >> artificial intelligence, kind of classic, marketplaces, networks, how do millions of people interact with each other and how do you have a better life or work? how are you more productive? those are the kinds of

investments i work and goes everything from paypal to payments and linkedin obvious have i to airbnb and that's the common theme. >> airbnb has raised more funding and are you concerned that companies of this size won't be able to go public and maintain that private valuation? >> when you have a real solid company like airbnb you can choose when you go public. if you feel the market doesn't actually get you the right valuation and is not the right time, it's such a utility, something that will exist i think, you know, decades into the future. hundreds of years in the future that i'm not really worried. you can actually pick your time. do i think it's a general worry that public and private financings can actually in fact mismatch. airbnb is not one of those companies. >> what's your overall sense of the ipo market and the private market valuations right now in terms of a bubble or not? >> i think the private valuations tend to go higher than public because you can

choose when you do it. it's chosen by one investor. the highest investor or one of the higher investors will invest in that price and i think you have structural tension which we've seen like happening last couple of years which i think is part of the reason why you've seen less tech ipos because people are working to -- are putting in the energy to work into their private valuations before going public, and i think that is a -- a legitimate concern, but i don't think it really unbalances the capital market the ways, you know, that public market, you know, booms or -- okay, you know, bushels actually do. >> almost out of time and i have to ask you about politics. i know you're a big supporter of hillary clinton and you recently wrote a column attaching mitch mcconnell because of the way he's handling various things. what is your goal in entering this public conversation? >> so, normally i try to stay to where i'm very expert. i may comment more on politics in the future. here it's just do your job. obstructionism, how the parties fight is part of what i think is

seriously harming the u.s. and seriously harming all of our futures, and so consider candidates. you may reject them, but do your job. don't go on artificial strike and say hey, you know, even though this person is elected president of the u.s. i'm going to ignore that for a year and i'm going to declare it. do your job and consider candidates. you can reject them for public and good reasons, but it's just unconscionable obstructionism that's destroying all of our future that shouldn't be tolerated. >> i hope you have a fun time debating peter thiele about the presidential election. reid hoffman, thanks for joining us. kelly, back over to you. >> i would like to listen to that debate. julia and reid, thank you both so much. time now for a cbs news update and let's get to the sue herera. hi, sue. >> hi, kelly. house democrats making a unique attempt to demand action on a measure to toughen background check for people purchasing guns. one by one they used the same speech and held up a photo of a

victim of gun violence and one by one house speaker denied the request. florida senator marco rubio is skipping the gop convention in cleveland. a spokeswoman for rubio said he had initially planned to attend but decided to focus his efforts instead on campaigning and meeting with voters in florida. secretary of state john kerry took a stroll through kiev stopping to buy some local souvenirs. he was accompanied by ukraine's foreign minister and large security detail. his mission was aimed at reassuring the country over its tear torol disputes with russia. and people started visiting a noah's ark atraction in kentucky. that's noah's arc, the rebuilt one, by the way. the massive structure is 510 feet neat long and cost $100 million to bill. the christian group behind it says they built it on specifications in the book of genesis. it was granted $18 million in tax incentives by the state.

that's the news update. back to you, kell. >> i just want to know if they have got the animals. >> well, they -- it's a little coroversial because they put dinosaurs on as well and there was some state funding that was withdrawn because it was a christian group. goes a little dicy for a while. >> i see. i'll look it up anyway. sue, thanks so much. >> you're welcome. sue herera. coming up fbi director james comey coming under fire from republicans for not recommending charges against hillary clinton. barney frank and larry kudlow go head to head on whether he put this controversy to rest. and later health insurance has gone to the dogs. coming up, oh, i could watch this video all day. we'll show you how big of an industry pet insurance has become and how some companies are even offering to or are even offering it to attract talent. stay tuned. people talk about "deals" on their auto insurance. wouldn't aeal involve two parties diussing something? a little give? a little tak

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rough session yesterday. that put pressure on the markets. juno therapeutics shares are set to reopen in a couple seconds. a cancer drug trial was put on hold. fail at all times were involved. meg tirrell has the latest. >> reporter: never good news for a biotech company and people are taking it pretty seriously for juno, their lead program and juno works on a new form of of immunotherapy where you're taking a patient's cells out of their body, beefing them up to detect and fight cancer and then giving them back to the patient. they say there were two deaths last week in the clinical trial of the lead program and the fda has put this trial on hold. now what this involves is essentially a pre-conditioning treatment. it's not the treatment itself, so what juno is doing is adding a chemotherapy essentially to condition the patient's immune systems to accept this treatment and then giving them the treatment, so what juno has proposed is just going back to what they were doing before, not adding this other chemotherapy to the pre-conditioning treatment. the fda has asked juno to submit

new documents reflecting that change and juno says it will do that this week. however, it's not clear how soon they will be able to restart this trial. that's why you're seeing -- we haven't seen the stock reopen yet. it might anyminute now and competitors also working in the spite like kite, for example, following quite a bit, kelly. back for you. >> meg, thank you. those juno shares just on the screen were down about 30% there around kite, which you mentioned down 14%, watching blue and celgene to your point. >> it is interesting news and interesting they will try to refile in a different classification. the sentiment for this sector, as i mentioned before is so bad. bad news is treated really real bad and good news is treated okay, pretty good, right, so that sentiment needs to change and can't have these data points come out and fight that as these points. >> juno below 30. people there who can't hear it. it's down 28%. >> as i mentioned before, you know, you had a little bit of excitement about cancer therapies and about the

companies that can bring those to bigger companies, that was the medivation story with sanofi earlier this week and other companies caught caught up in that excitement about what's the next thing so obviously had a little bit of a blowback? >> if celgene gets hit hard, that one you actually want to buy on this news because they have a great pipeline and they have a great product. it's very well established and a lot of indication and that sort of thing. >> and this story will continue to play out. meg tirrell at the nasdaq. two big stories in the nation's capital. donald trump meeting with members of congress and fbi director james comey was grilled by the house oversight and reform committee over his recommendation not to press charges over the e-mail scandal. joining us now barney frank and larry kudlow. larry, mr. big shot, you've been aninformal adviser to trump. >> yes. >> you actually introduced him today at his meeting with republican members. house. what are we supposed to call you here? sir trumpian helper outer?

>> well, i'm not sure i understand your question. i've moderated a lot of republican congressional events down through the years. i was happy to do this and, look, i think the biggest thing here, this was a unity meeting. almost the entire house caucus, i bet they had close to 240 people, republican caucus, and the issue here was that the trump campaign, mr. trump, agrees with the house conference. i don't know, 90% of the time, and that was the topic of the discussion. i helped start it off, but it was a minor role, and it was a unity. i mean, i heard tremendous, tremendous momentum back towards the unity here with trump and the house republicans. >> yeah. well, you know, i know the tax plan has been one area in particular. >> yes. >> where you've been working with him, and is this with an eye, larry, towards maybe playing had a role in a trump administration? >> i have no eyes for roles and none of that stuff right now.

as you may know, the committee to unleash prosperity, we start that had for tax cuts. i'm a member of that. we're helping mr. trump right now. he's the last guy standing. happy to do it. look, i'll tell you one thing that came out of this, very interesting, because i don't know how the newspapers are going to play this. there was i believe a house member from texas and he said very directly to mr. trump, they had q-and-a. he said, look, during the primary i strongly opposed you but during the election now i am going to strongly favor you, and i'm not going to name names but that was the tone of this from speaker ryan all the way down, so i think trump made quite a lot of progress. >> but the issue you're referring to this was it flake? there was a back and forth over, you know, watch out for your re-election prospects and i'm not sure i can support you after the comments about mccain? >> well, kelly, i don't want to dis-april point but that was a private meeting and i'm never going to name names and it is what it is. i will just tell you this. i was at the senate meeting.

the majority, the vast majority, nearly the total majority support trump now, again, moving towards party unity. >> in the meantime, there were the hearings with james comey on capitol hill today. he was denying any political motivation behind his decision to not recommend charges for clinton. but if you think the e-mail matter is over, by the way, think again. oversight care jason chaffetz did promise to request the fbi open a new investigation into clinton's comments immediately. >> did hillary clinton lie? >> to the fbi? we have no basis to conclude she lied to the fbi. >> did she lie to the public? >> that's a question i'm not qualified to answer. i can speak about what she said to the fbi. >> did she -- did hillary clinton lie under oath? >> to -- not to the fbi, not in the case we're working. >> do you need a referral from congress to investigate her -- her statements under oath? >> sure do. >> you'll have one.

you'll have one in the next few hours. >> so this might not be the end of the road yet for the gop in pressing this matter, barney frank, but do you think that james comey's testimony kind of put to rest the public's concerns? >> well, it ought to put to rest the concerns of people who are any kind of an open mind. i am struck by the apparent desperation of the republicans to hold on to something that a very respected impartial and indeed republican prosecutor has dismissed. look, this is a pattern here. you know, we heard donald trump raise the vince foster thing with kenneth starr repudiated. we saw them try very hard to find something about benghazi and come up with nothing. hillary clinton should not have used the private e-mail. that was a mistake. it was irresponsible. the problem the republicans have is they were hoping desperately that the fbi would bring criminal charges.

i was very pleased last week when larry testified, not testified but he said he had complete confidence in james comey's integrity. to be honest, i think the fact that the republicans have now decided to go after director comey is politically stupid and in fact is not going to help them very much. i think the problem is that they are lacking any kind of confidence of their own nominee. i've got to say when layer says that the republican house conference now agrees with donald trump 990%, that's good news for house democratic candidates. if they agree with him on what he says about mexicans, about immigration, about several of these other issues, that's good news for us. >> all right. >> larry? >> we'll be glad to campaign on it? >> well, okay, let the games begin, barney frank. look, you know, trump's idea, the gop ideas, paul ryan's ideas, lower taxes, lower regulatory burdens, create jobs, wages, unleash energy, repeal

obamacare, we'll let the games begin. i think the gop has the upper hand on the pro-growth message which i think is going to be vital. regarding -- regarding mr. comey, barney, let me just get this in please. i'm not making a judgment about mr. comey. >> you did last week, larry. >> last week you supported him. >> i'm not -- i'm not unsupporting him, okay? i'm not. it's fine. >> sure you are. >> the issue is, look, his own report said that miss clinton was guilty of extreme carelessness but was not guilty of what he calls gross negligence and they could not find any intent to violate the classified information, okay. that's what he says. i will say this. miss clinton got off. there's no indictment, okay, fine. however, because of the findings of the comey investigation, what he laid out very clearly today and earlier, those findings are going to hurt miss clinton on things like trustworthiness and

so forth. they are going to hurt even though there's no indictment. >> do i get to respond? >> let me respond. first of all, she made a terrible mistake on the e-mail. nothing has been brought forward that shows that any damage occurred to the country because of it. secondly, this notion that -- and i'm talking about chaffetz's obvious frustration that there was no crime and he's continuing to push for one, this is -- this is an indictment in search of a crime, and -- and i'm glad you reaffirmed this, that you have no criticism to make of comey for not indicting but you are an unusual republican in this regard because overwhelmingly they have transformed this into an attack on comey's integrity. mr. trump, your candidate, talks about tarmacget which is the preposterous dem goingic suggestion that mr. clinton's unwise meeting with loretta lynch has anything to do with this.

no rational person thinks that the meeting in any way influenced mr. comby. >> trump says it. >> larry, let me finish! is there because you may want to duck this one but i said no rational person but your candidate did say it. >> well, look. >> donald trump has been suggesting, not more than suggesting, talking about tarmacgate and it's a pattern with him that ted cruz's father was a murderer, that hillary clinton -- bob, you talk about lying and irresponsibility. iev never seen dome goingry and total disregard and anything like donald trump's. >> all i'll say is you're right, clinton going into loretta lynch's plane, was a mistake. i happen to agree to you. >> was it related to comey? was trump right? was trump right to call it tarmacgate? is your candidate right to call it tarmacgate? you don't want to comment because -- >> i'm an economic policy adviser. the only thing i'll say regarding mr. comey's testimony

today before jason chaffetz's committee, he indicated that there is in fact an ongoing investigation regarding the clinton foundation, that that is still ongoing. i don't know anything more than that. that's all he said but that's still out there and i would keep an eye ton. >> and let me get -- the comments stand for themselves. thank you, gentlemen, we'll leave it right there. >> and larry won't comment on trump and tarmacgate. >> health insurance for your human independence is a standard employee benefit and some employers are offering insurance for your pets as well. you're watching cnbc, first in business worldwide. hiaby! hi daddy!

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japanese message offing service loin is set to trade publicly in the new york stock exchange in about a week. bob pisani waiting patiently and is here with a preview of that offering. one of the companies is also gearing up to go public. bob? >> consumer stocks, all the rage. we only saw eight new ipo files for the month of may, just eight and a fleury of files brings the june i'm poe total to 17. another two now set for july. on monday line raised price of its upcoming ipo to 32.50. this will be the biggest ipo of 2016 and it's a dual listing set to start trading next thursday

here at the nyse and friday overseas in tokyo. with many consumer stocks at new highs no surprise we're seeing a spate of offerings in exactly that space so earlier this week advanced pier food hoelgsd, a big food manufacturer, announced terms that will begin trading likely friday at the new york stock exchange and next friday. just recently filed. yedi holdings which makes coolers and outdoor gear, don't laugh. 600 million in sales and acushnet which makes titleist golf balls and other equipment, and the biggest surprise i see out there. how about an oil company going public. when was the last time that happened? centennial resource, an oil and gas exploration company filed recently, this will be the first e & p company in almost two years. so this is how the ipo market works. suddenly consumer stocks, new highs, guess what it appears out of nowhere, a whole bunch of consumer companies. >> you're going to be a busy guy, bob. >> i've been waiting for months. >> a lot of catching up to do

waiting for something to happen here. >> i got your best ties, bob. thank you so much. our bob pisani. 60 billion, that's how much americans spent on pepsi shares. $60 billion. jane wells has a look at where all that money is going. jane? ♪ who let the dogs out >> reporter: yeah, coming up next, we love our pets like humans. in fact, we love them more than humans. we'll do anything to let them live longer. up next, dogs versus cats. who rules? in the pet insurance industry. when we come back. thanyou is what we say.

but we mean so much more. we mean how can we help? we mean what c we do? we mean it's our turn. to dour part. to serve you, r all you've done to serve us. ♪

americans do spend more than $60 billion on their pets each year. and no matter how much owners love their animals, they get sick. now once considered an extravagant expense, the industry of pet insurance is

booming. jane wells has a couple of friends there and has more -- are those swim goggles, jane? >> reporter: those are dogles, kelly. goggles for dog, the hippest thing. you've got to have them. >> oh, man. >> reporter: mean, there's an estimated 160 million dogs and cats as pets in the country and one of the fastest growing areas is pet insurance which is estimated as being $700 million and so far will cover 2 million to 3% of% and as millennials put off having children more companies are offering pet insurance as a benefit to attract talent so a chicago startup called figo has raised $8 million and it's being offered to fortune 500 companies including an airline flight attendant union and it does more than provide insurance. it's an app creating a whole slew of tools. it's easier to do with pets because of no hipaa regulations and the average premium is $450 to $500 a year.

>> we'll accepted you text messages when your shots are due for your pet. we'll tell you what the shots are, reminders. we will let you file a claim via your mobile phone. where we let you find businesses that are pet friendly around you. some reports say one out of every three or four fortune 500 companies are offering pet insurance as supplemental insurance and contributing or passing on a group discount. >> now figo says it will be profitable on a proforma basis in three years. it came out of a google tech ink boughtor. by the way, pet insurance started in sweden in the 1920s and moved to the uk in the '40s and the first american pet to have insurance, guys, was lassie which, again, proves dogs are better than cats, right, kelly? >> oh, my gosh. lassie was a rock star. glad to know it's just not lassie that qualifies and jane, we love that you've been hanging out to the guys. whoever dogs they are, i don't know if they are. >> reporter: mine. >> oh, they are. >> reporter: this is princess

leah and these eyore. >> and now i know what dogles are. i hope you have a great jump in the pool? some cats wear them, too. i know you have a cat, kelly. sometimes cats will wear them though cats aren't quite like dogs. >> already trying to get them off. >> put them on the harness, and we haven't tried the goingles yet. i love it. thank you. >> three cat people on set here. tomorrow brings the junes jobs report and investors will be paying close attention. the f ho mc meeting three weeks away. the full impact when we come right back. i asked myentist if an electric toothbrush was

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welcome back. the biggie tomorrow morning, june jobs report hits at 8:30 a.m. eastern time. a couple of estimates. we've got goldman saying they think it's going to be a gain of 210,000, probably on the higher side of the street. the adp report this morning, the rest of it, by the way, citi up 155 and ubs up 150 and rbc up 205. the ooh dp we got this morning and jobless claims strong. where does that leave us? >> leaves us leaning a little to the strong side. even if we get 200 it will be viewed as a bounceback from a weak month last month. >> just one at a time. >> i think a lot of people want

to see if last month gets revised. >> and the verizon strikers coming back in and that's included in tomorrow's estimates. >> swing of 70k when you add it both in. still tickled by the buddy pictures. got to get everybody's pictures. maybe on set. >> thank you both. that does it for "closing bell." "fast money" begins now. "fast money" starts right now. live from the nasdaq market side overlooking new york city's times square, i'm melissa lee. traders on the desk are tim seymour, steve grasso, dan nathan and guy adami. tonight on "fast" one top technician says there could be trouble at tech and it has something to do with apple. he's here to explain and think the rally in gold is coming to an end? not so fast because one better is betting a stagger $15 million that the metal is set to surge to new heights. behind that stunning trade. later the mega merger between humana and aetna could be in serious jeopardy leaving billions on the table. all the details but first what is usually the moment of truth for the markets? that, of course, is the