knows. he goes nuts, loses his mind. can you get more excitement? nothing better than a good game show. >> doesn't require skill, does it? >> nope. >> my parents won the newlywed game in 1980, and i was born nine months later. >> what? >> 100% fact. that's not fake news. closing bell starts right now. ♪ >> oh, hi, everybody. >> i can't wait. i cannot wait. >> mr. cocoa cabana joining us later, and i'm kelly evans at the new york stock exchange where guess who rings the closing bell? >> barry manilow, he's ringing the bell to commemorate the brand new album called "this is my town," he's from across the river there, and people on the trading floor have been all

singing today. >> at the cnbc offices. >> and apparently -- >> soon around the world. >> karoke day in the news room at cnbc. by the way, can you shoot -- just look. it's fleet week as well here. >> wave, everybody, guys, say hello to america. >> there you go. >> so we got barry manilow, fleet week, and the whoop whoop will be coming up in 30 minutes as well today. >> adjust your volume. >> there's other news too, though. we have to get to it this hour. bmw and volkswagen caught in the cross hairs after president trump slammed the german auto makers. what's behind the harsh represent reck coming up. >> the ceo of netflix said its biggest competitor is sleep, remember that? now facebook could be trying to give netflix a run for money as well. details on that story coming up a little later. as amazon and alphabet crawl towards $1,000 a share, we begin

with stocks in that prestigious $1,000 a share club, dom has -- there's only one stock, other than berkshire hathaway, right? >> of course. the $1,000 stock club is verified, for sure. amson is close, but only one member of the large cap s&p 500 index, that title belongs to online travel site, priceline group, the shares now trade over $1800 a piece. you got the company out right now, the shares alphabet at 992. the only other one in the $900 hang is surgical, remember, guys, share price itself does not mean much for the market value, though, in case of the amazon and alphabet story, it used to be the potentially more attractive, but now they turn to

mutual funds, and that matters relatively less than it has in the past. higher prices discourage a lot of trading volume, so relative disadvantage there for some of the professional brokers that charge trading fees. all, told, though, that thousand club impressive from a headline stand point. like you said, s&p 500, not mentioning explicitly is that berk share, yes, 248,000 a share. the b shares, still at measly 165, guys, back over to you. >> favorite barry manilow song? >> cocoa cabana is good. i like the songs that make the -- i'm not singing, don't worry. >> we want you to. this is your chance to show the world. >> i'm not going to embarrass myself that way, guys. >> forever grateful. thank you. >> have a great weekend, guys. >> you too. >> amazon and alphabet two tech

stocks holding up the s&p 500. those stocks along with apple, facebook, and microsoft are responsible for half of the s&p's gains so far this year. >> a sign that these five stocks are characterizing the closing bell exchange today. meg green with us today. when you think about it, the markets riding on the back of the faang stocks, microsoft, and, you know, i know some people are anxious to correlate this with what happened to the dot-com boom, but it's different this time, don't you think? >> i don't think we're quite to the dot-com bust cycle we had, but it is troubling. you want rallies broad based, and it's true, particularly looking at a place like the small caps. they've not participated in the same way. small caps rallied up to the all time high in april and proceeded

to have a massachusettsive selloff, and, in fact, look at the 50-day moving average for the russell 2,000, it's flat lined since march. it is true, are the faang stocks and others driving the market? yes, absolutely. we want it more broad based. what i say to people, exercise caution in what you're doing. you know the markets are going to be trending higher, all things being equal, they are very much in a flat way at this point in time. we really can't look on the horizon or see anything bringing them downright now, but you have to stay vigilant and keep aware and powder dry right now, but i do believe the small caps are the real key for direction bias as we move through the month of june? >> coming back to that, but you said looking at the market overall, you feel like you should be scared. terrified was the word you used, but you're all in, right? >> well, all in with a little cash on the side, and that's the smart thing to do, i think, for anybody. we can't -- you know there's going to be be a correction, but the correction i think is probably going to be a 10%

correction. people will run, let the panic go, investors who are not committed will get out. talking about these heights and these stocks, i don't know that everyone listened to jeremy this morning, but the markets have been like this in 2000. i looked at that chart when nasdaq fell. afterwards, oh, my goodness, they didn't realize that. it took 16, 15 years to get back to where it was. >> right. >> i don't think we're here, but i think you need to think about this caption, what's happening, we're not in the type of world we were in the 50s and 60s when you had women going to work, the baby boomers going to work, appliances coming out. you had so many things beginning, and infrastructure, my god, the roads they were spending on. but, today, what are we looking at? looking at a lot of the disruptions, which is why you see this disconnect in the market. cars will be computers on wheels, looking at retail.

who doesn't buy on amazon, and use papal, and all the things social media, and that's what's moving the market because people are looking to the future. it's where you have to be in the market. >> for a long time, a student of the market. i have to ask you this. rather than going on yields or currencies today, what do you think about the change in the market over the last several years where electronics -- etfs have really come to the floor for a lot of people how have they changed the way people trade the markets these days? >> two in particular. etf side, they are wonderful instruments. the issue with them is going to be most likely higher level starts to come back down a bit, just take the hyg.

okay. people run the fund and have to buy securities to keep up with the notion of people buying etfs not buying securities, but it creates a market for securities that might have not existed otherwise. so trying to unload some of that stuff in a time there's a correction is going to have rem innocents in the activity seen with portfolio 1987. that's volatility. until we get to that, the other extreme continues to exist. i'm convinced that electronic trading is why volatility's down. in the end, algorithms and especially the ones learning more like watson, artificial intelligence, they pretty much try to hold the same position at the same time. which is good. it's going to create markets that, just like stocks, they go up slowly. they don't have volatility, the same issue with the etfs, catalysts are going to be the market. when those same algorithms, the

same intelligence computers don't want positions anymore, that's the issue. we're going to really feel smart when that occurs because markets will not be able to handle it for a lot of reasons that include springs. >> i knew he had to get that in. >> kind of that moment. i want to circle back to the russell for a moment because of the banner close yesterday. the nasdaq and s&p at all-time highs, dow not far away, and russell lower again today, and i thought this was the one area that was going to have the most runups after the trump election, and, perhaps, benefit from what this environment is that we're in. what's beginning on there? >> therest a couple stories to it, i think. one is that the trump agenda is getting delayed, and, of course, talking about tax reform, infrastructure spending, regulatory rollbacks, companies who do 90% of the businesses in the united states, which is the predominant group inside the russell, they would benefit the most. that's taken the winds from the

sails in the russell a little bit there. the other issue that you have is when you see the small caps not participating with the large caps, investors are concerned about growth inside the u.s. going forward, signals we have to be aware of, and as megawas saying, keep the pattern dry on the sidelines to take advantage of that. again, the small caps for me are always the key to the overall health of the market from a broad based rally or selloff standpoi standpoint, and you have to keep an eye on it. last point, we saw master redemptions in the iwn in the last week, and that, again, another warning sign as people start to pull away from the market. now, may be rotating into the larger caps and chasing faang, going to europe a little bit. i'm sure that's the case, but it's something we do need to keep an eye on. >> all right. we have to go at this point. thanks. thank you, all, for thoughts on today's markets. have a great long weekend as well. >> you too. >> thanks. >> bye. >> all right, 50 minutes until the close here, down by a couple

points. this after string of recent gains. we've seen the dow remains 30 points off the closing high. the s&p retreating from yesterday's close by less than a point. nasdaq is up about a point, which i think would make for a new high water mark. >> it would. not far for the s&p as well. we could see records by the time we hear the closing bell. when the president of the united states talks, people listen. when we come back, the latest on a controversy sparked by president trump's comments about germany, plus, a fact check on what mr. trump said about that as well. >> also, coming up, barry manilow speaks with us before ringing the closing bell at the new york stock exchange, discussing his album, and his biggest money mistake. >> i can't wait. >> stay tuned, watching cnbc, first in business worldwide. we, the entertainment-loving people, want all our rooms to be tv rooms.

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welcome back. checking out market movers deckers outdoor surging. >> 11% last night. >> now 18%. ugg boots maker with better than expected revenue and surprise

profit. analysts expected a loss. deckers raised outlook for the full year. boom. gamestop is lower, though, despite an earnings beat. one analyst said nintendo's switch console could boost sales, but uncertainty whether they keep up with demand limits visibility for the second half of the year. animalests point out that a delay in the highly anticipated game "red dead 2," that could be a potential risk right there. preorder in for that, do you? >> oh, you know it, yeah. i played zelda 20 years ago. >> mario cart here. >> that was a good one too! president trump clarifies comments about germany that caused a stir. phil lebeau with more. >> yesterday, there were a lot of people talking about reports out of germany that or out of europe, that the president told leaders in europe that he was thinking about stopping car sales from germany because of

the trade deficit with the german countries that the u.s. has right now. today, the white house is out saying, no, no, no, we never said we were going to stop car sa sale, but they blasted the trade deficit between the united states and germany, and specifically with the auto industry, it's a hefty one. there's a 15.5 billion trade deficit with germany. why? german brand vehicles, and there's about 846,000 that were imported from germany sold in the u.s., primarily high end sedans, sports cars, 5% of the u.s. sales are vehicles that were build in germany. brings up the question, well, aren't they building them in the u.s. right now? yes, they are. quite a few actually. but relative to the competitors, they still import more than they actually build here. you see daimler, bmw, vw, that's how many they sell in the u.s. built in the u.s. they are expanding production in

the south, talking about bmw's plant in south carolina and mercedes one in alabama, vw in chattanooga. they are expanding, running at capacity, but building suvs and crossovers, and, by the way, many of those are exported. they built more than 800,000 vehicles last year. you can expect that number to increase this year with volkswagen adding a new suv to its plant in chattanooga. those are the numbers behind the trade deficit with autos in germany. >> which, i mean, some of this, phil, is a well known. we have known germany benefits from the cheaper euro, autos are a big source of exports, so it states the obvious here. the question becomes, is there a retaliation in this? does this become wrapped up in u.s. policy of some kind? >> before you answer, let me say, and i know i'm criticized

for this, but there's no guarantees anywhere, and everybody does what they feel is best for them, and when you have a trade deal or not, there's no guarantee that you're going to have a perfect balance trade relationship, right? guys, what the trump administrationments is for more of the vehicles that are sold here to be built here. now rs it's unlikely that you're going to see the german auto maker say, you know, we're going to stop exporting the 7 series from germany so we can build it in the united states. what the trump administration, though, is really worried about is that all of the german auto makers have either built or are building plants in mexico, and those plants will be supplying vehicles to the u.s. in addition to what's built in south carolina and alabama and tennessee. i guarantee you if you're a fly on the wall on trade talks, those plants are at the heart of what bothers the trump administration. >> again, you do what's right for you, and those are the

conditions that are better for them there than hay are here in the united states. again, that's -- i get it. that's something that the trump administrationments to change now. they are here to be change, and they want to ensure that we can, at least, begin the process of balancing that. >> like the '80s and japanese auto makers. phil, they tried everything, restrictions, tariffs, and the only solution eventually was, fine, make them here because customers buy them anyway. >> correct. now the question becomes, do we see the german auto makers add another plant in the u.s.? they are expanding production in the existing plant, but the bmw plant is largest in the world and still expanding there. can the trump administration get the german auto makers to add another plant? that's the question. >> all right. good stuff, phil, thank you very much. >> you bet. >> see you later. 40 minutes left in the trading session. he's in the house, you know. >> is he? is that what that stir was about? >> we waved awhile ago.

dow down three and a half points. >> facebook getting ready to take on netflix and video streaming. how big facebook poses a threat to netflix. that's coming up. i'm sorry. he's won a grammy, emmy, a tony, and there he is with the fleet, barry manilow in the house to ring the bell, meantime, though, to talk about the fast changing music industry and will ask about him his biggest money mistake. he doesn't know that yet, though. we'll be right back. dear predictable, there's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden,

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he's won a grammy, emmy, a tony. he's a singer, song writer. do i have to introduce barry? we all know that the great hits he's had, but we were just talking about -- which -- kelly said that it's stuck in her head. >> it is mine too. what stuck in my head is this, i've never been here. >> first time? >> it's like out of a movie or something. it's fantastic. >> isn't it crazy? >> yeah. >> let me just mention, your new album is called "this is my town," songs of new york, from brooklyn. >> perfect album to be here for. >> right?

>> i mean, you know, they got the album cover all over the place. it's perfect for me to be at the stock exchange with this album. >> so, you mentioned you have not been here before, but, you know, as you become successful, had this long flourishing career, certainly, people approached you with investments over the years? >> i throw that to the business guys. you know, i like a keyboard, not a computer keyboard. >> you don't trade stocks? you don't invest? >> no. >> you don't pay attention to amazon? >> somebody does it for me. i don't. it's too complicated for my pea brain. i stick to music. >> let me -- let's talk about the music business, though. your career's been around long enough, you've seen major transition that's gone on in the industry here of how artists are compensated and how your work is distributed here.

old model better or new model better, what do you think? >> simpler, that's for sure. it was not easy to understand. about eight years ago, it's got real bad. nobody knew what on earth to do. how do you sell a record? how do you compensate artists or composers, songwriters, how do you do that? for those last eight years, it's been rough. it feels to me like they were just beginning to get a grasp on how to do it, i'm crossing fingers that we can all timely start to make money again. >> i want to know -- >> so the young people, i don't know how a young band can survive. you don't make money on albums anymore. >> so last evening, bill made dinner and said, alexa, play barry manilow, is that music to your ears? as we move into a new mod el of compensation, like, that's a lot

of of dollars and cents in my pocket? >> you don't make much from streaming, right? >> we don't. that's one thing. how does a young band make anything anymore? i think what they are getting a grasp on, it's just changing from what i understand, the way you -- >> you make money touring, you don't need the money, but this is for the love of the craft. >> yeah. i don't tour anymore, but i do do one night -- >> at nassau last night. >> right. that was fun. i'm doing a couple more next couple months. i do one-nighters here and there, and it's very exciting. >> again, touring is where the money is in the business anymore, right? >> it's the only place. but, you know, for a young band, they got to have an album out for the audience to come and want to see them. they put an album out, nobody buys it, but they can put their name on the marquee, nobody knows who they are. that's the problem. yeah, you got -- that's a place to make money for a young band.

it's live concerts. >> to what extent to have a residency in vegas, and look at the success, something you'd be interested in? >> oh, you started the process. >> oh, i did seven years in las vegas, only five at the hilton and two -- i just loved it. i would do it again in a heart beat, but, you know, it's a fun place to be. >> lucrative? >> what's that? >> is it lucrative? >> for someone like me, yeah, but for a young group? i don't know. i don't know. >> okay. knowing what you have told us about your investments and everything, we love to always ask our celebrity guests what your biggest money mistake was. what was yours? >> oh, i hired the wrong guy when i started off. i hired the wrong guy.

from -- i didn't see anything, and i didn't know it until my manager came along and said, you know, you've only got $11,000 in the bank. for mandy all the way through copa. $11,000. >> were you horrified? >> i jumped in the pool. then i started to go to work. >> but you still don't pay attention. you trust -- >> no, i pay attention more than i did. >> i get it. >> believe me. but -- >> how do you not pay attention? >> any young artist did what i did. how many times do you hear the same story, all into the music. >> heard that a lot >> bouncing checks at the amt to getting big crazy checks. what do i do with that? i hire a business manager, and he was not a crook, he just didn't know what he was doing. >> wow. >> clearly. >> yeah. >> i also wanted to ask because i did not realize you wrote so many famous commercial jingles,

way, way, way back, but -- >> still play the state farm insurance one and i am stuck on a band-aid. they do. >> and that's going to be stuck in our heads today. >> yeah. that's good. ♪ i am stuck on band-aid brand and band-aid is stuck on me ♪ >> tell us about the new album. really, what keeps you motivated to keep going here? >> i'm more of a lucky guy. the well has not run dry yet. i always have ideas. that's -- >> all your songs? >> half mine, and i decided i would do half standard because there are so many great standards about new york. since i come from new york, a lot of the album's great, and i want to be listeners to recognize some of them, so i put five standards and five originals. and it's a love letter to new york. >> quickly, anybody you still like to duet with or collaborate with? >> oh, i have my favorite collaborate rayeors i go back t

after year. >> i'm out of luck. >> answer's no. >> well, give me a call. >> yeah. >> a thrill to have you here, barry. >> you too, thank you so much. >> thrill to have you. heading upstairs there. >> i am. >> to ring the closing bell today. >> sure. >> great barry manilow joining us here at post nine. time now for a cnbc news update. let's get over to sue. hi, sue. >> hi, guys, jealous, one of my first dates was a barry manilow concert at the amphitheater in los angeles. oh, anyway. this is what's happening this hour in the news, everybody. former house speaker john boehner delivering some harsh words for president trump telling attendees at an energy conference in houston that, quote, everything the president has done has been a complete disaster, end quote, but he did praise president trump's aggressive steps in challenging isis. the head of britain's counterterrorism group says police arrested key players

connected to the manchester bombing killing 22 people in a local concert. >> all this is sifted together, making enormous progress. we got to understand everything around the terrorists, the network, and how they manufactured the explosive device. enormous progress made, but we have details to work on. >> first lady wearing a colorful floral applique jacket, costing $51,000. the color burst comes after a steady wardrobe of mostly black during her husband's overseas tour. dolce and gabana is a mulan designer. >> she's been wearing designers from the countries she's been visiting for her entire overseas trip. >> oh, cool. >> i didn't know he did a residence in las vegas. mortified.

>> i'm sorry. he was the first to do that. >> now i know. >> that's okay. it's fine. it was a thrill to have him on the show, right? >> now she's going to beat herself up. >> do not do that. it was a good opportunity. >> i wasted everybody's time. >> they'll probably ask him back. he said he'd like to do it again. there you go. >> we shall see. >> thank you, sue, see you later. 30 minutes to go as we close, dow down five points now, s&p fractionally lower, nasdaq on a three appointment gain, a record close, and russell down a point. >> watch out netflix, facebook is making a huge play in the video streaming space, look at the viability of facebook tv when we come back. later, the kinds of homes millennials may be saving up to buy. it'll surprise you. stay with us.

25 minutes left in the trading session here with the dow down seven points, but the nasdaq is still slightly in record territory, and joining me on the floor of the new york stock exchange, thrilled to be following barry manilow here. >> oh, he's -- >> you consider him your opening

act here. >> exactly. i appreciate barry stepping in and doing that. >> almost as thrilled to talk to you as i was to him. rick santelli pointed out awhile ago he thinks it's the electronics rating algorithms that smoothed the market out. you think we'd have more volatility when the fed raises rates. what do you think here? >> right now, we are trading on the technical basis more than anything else. today, light volume, tight range, but it's been a strong week, a paradigm shift, 2400 on the s&p, and now it's the floor. i think, guys, coming back just to get to 2405, that level, and 2415 is the next breakout point. >> okay. >> watching that. >> close to that right now. >> bumping heads there all day. we'll continue to monitor that closely. the question is, what's on the close, it's a slow day, but most important half hour of the day when we see a lot of flow come into the building, an we are seeing it. although it is a friday before a

three-day weekend, we think there's numbers here on the closing bell. >> all right. we'll see what happens here. thanks. >> pleasure. >> have a great weekend. >> you too. >> kelly? >> thank you, guys, netflix ceo surprised people on the earnings call last quarter saying this was his biggest competition. listen. >> think about it when you watch a show from netflix and get addicted to it, and then you stay up late at night, we're competing with sleep on the margins. >> well, now, netflix may compete with facebook as well. the social media giant reportedly cites on content creator like vox media and buzzfeed to produce original programming. joining us more about this is ed lee, from reed code, parent company is fox media, and market reresearch consulting company, and they specialize in consumer tech products. glen focusing on entertainment and media content. welcome, guys, working on a facebook show? >> i am not, our parent company is, i have nothing to do with

the efforts. it's an interesting experiment on the part of facebook, certainly. the key, though, with this experiment is they want more ad dollars. that's why they are going after it. not just any ad dollars, but tv ad dollars. the contents looked more like tv than anything else. >> when i equate this with the fast food companies, stay with me on this, you know, everybody eventually gets around to serving breakfast, salads, you know, that's where the money is at that point, and now, with social media, everyonements to get into video and original content because that's what people want to watch. it's -- i mean, isn't that what we are witnessing here? >> you know, it's interesting. there might be something a little bit to that, but the biggest point is that facebook and netflix, if you want to bring them together, they have very different consumption models. i mean, netflix hit premium content, big tv screens, facebook, a lot of what you do on there is mobile, it's computers, so, yes, they are

competing for eyeballs, but they are different experiences. >> i'm going to stay longer on facebook if i'm there to watch a 20-minute program, right? i mean, it's -- they've got distribution here. >> yeah. that's a possibility. i mean, when you look at the budgets that they are putting into it. it's not anything that's necessarily lavish, but they are investing some money, so they do feel bullish on video, and they do see that as a future, as a platform. >> i mean, at the same time, though, people don't go to facebook to watch video or video like -- they are there to interact with friends, family, and that's why it's sticky and successful. it's a real relationship. i don't think they go to it for content. other thing to note with the new efforts they are doing, the would be on another tab in the app. you have to really go after it. it's not just something in the news feed. >> saw this with netflix, came out with new series compelling that made them adjust the viewing, so i wonder if doesn't take much for facebook to get

that -- if itments to invest in that direction, it can go that direction. >> absolutely. they have the heft, the size, absolutely, the money to do it. >> amazon doing the same thing. >> if they actually produce a hit, meaning content people want to watch, doesn't matter if it's facebook, people go there. that's true. here's the thing, you guys know in the tv business, producing content is hard. i don't care how much money and talent you have, how big the potential audience is -- >> bid against the incumbents for that good content. >> contactually right. >> i'm sorry, that's the thing. is the cost of original content. i mean, netflix has bumped up against that a lot of times. you know, they realize it just keeps going higher if they want to reduce -- that could eventually become a problem for facebook, don't you think? >> surely it could. if you lock at it that way, but when you look at what netflix is doing, they are doing something more on par to hbo or showtime, producing things that could be

on primetime dramas or premium tv. looking at facebook partnering with buzzfeed for example, that's a lot of daily snackble content. they are putting money into it, but, again, the consumption model is just really different. >> right. >> to the point that you have the video head as something -- >> and interacting with friends. >> what are we talking about here? cat documentaries for facebook? i mean, if we're not talking about -- >> they are scripted and up scripted, so, you know, i think there is some potential game show elements, but i think there's going to be a lot of 20 and 30 minute sitcom stuff, not necessarily what's on tv, but what the publishers and producers come up that work on their platform and audiences. they are tapping into that expertise. there's ads, looks like tv in a lot of ways, so between facebook, youtube, and what amazon's doing and you got hulu out this, they are looking more like tv in that way. >> i'm the cat documentary. >> yeah.

i got your attention, didn't i. we'll pitch that idea. >> ed lee, glen howard, thank you both for joining us. appreciate it much. >> pleasure to be here. coming up on 18 minutes to the close with the dow down nine and a half. nasdaq is positive. any positive for the s&p or nasdaq would be a new high. president trump putting fear in the pharmacy industry and new commissioner may be ready to move on that front. details next. meantime, memorial day's the unofficial start of summer, so to ring in the holiday weekend, david returned to offer his take on where the market is moving as the dog days approach.

welcome back, president trump made no secret of his destain for high drug prices campaigning for the white house, and the commissioner is preparing to move on plans to tackle rising costs. meg is here with how. >> kelly, the faa typically distances itself from questions on pricing. the new commissioner is diving right in. here he is speaking yesterday to a house subcommittee. >> simply put, too many parties

are priced out of medicines they need, and while it's not playing a direct role in drug pricing, we can facilitate lower cost alternatives to the market and increase competition. >> the commissioner said he intends to unveil soon a drug competition action plan. it aims to increase competition as a mode of lowering prices including curbing gaming regulations beyond what congress intended, improving regulatory process for competitors, for example, and increasing the overall efficient si of tdrug rl process. there's no competitors to increase competition and avoid situations that happened two years ago raising the price of a 60-year-old medicine by 5,000 practice. talking a lot more than ever heard before. >> it's interesting. you wonder if at some point the fda, when they approve -- decide to approve a drug, they ask how

much you charge for this, if that becomes part of the process, right? >> they are not going that far right now, where the fda somedayed out of things, not part of the mandate, think about the safety of the things. >> you know what i mean? >> i do. totally know what you mean, bill, others say it should be in consideration, but right now, they are just trying to speed up generics. >> yeah. got it. >> all right. we'll see what impact it has. thank you. >> thank you. >> 13 minutes to go. small declines, but look, the s&p just turned positive here, again, talking about minor moves, but because of the stake, higher close, nasdaq, russell down a point. >> david is back with the market acronym of the week, and ties into memorial day weekend. that's coming up next. he's out there somewhere. we'll find him pep. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim

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ten minutes left in the trading session with the dow up changed, but the s&p and nasdaq are in record territory with these fractional gains. joining us, a man who -- you missed this -- doing rapping. >> what? >> here? >> start out by saying i write

the songs the whole world sings. >> stick to the rap. >> all right. opening up a three-day holiday, starting in a memorial day setting, beginning of summer, summer would be a good ak nif. s for saudi stability. they are trying to stabilize the oil market, trying to stabilize the flow of goods back and forth between the united states. they sell us oil, they buy things from us. okay. arms and other things. finally, they are trying to save lives in the middle east together with the united states. the u is usa vigilance. we want to recognize the heros. we stand with the victims in manchester, and the coptic christians in egypt, and we remember the families of the people in fort hood, texas, and

boston, the boston marathon, orlando, florida, and san bernardino, those are the big four attacks we suffered in the last four, five years. the m is monetary policy. good thing is the fed can raids interest rates. i market doesn't like it when they don't think the fed is paying attention. they can raise slowly and they will. in the classroom, the judge in the courtroom. the fed is paying attention. very good. the next m is moody's downgrade on china's debt. >> what do you think about that? >> it's not a huge thing. however, debt is a huge thing. in 2000, china's gdp was $1 trillion. japan's was $4 trillion. today, china is 11 trillion, and japan is still 4 trillion, 17 years later, but the debt to china is off by 2 trillion to 30 trillion, so that's what people are worried about with that second m. >> right. >> e, earnings phenomenal. you all reported this day after

day. up 13%, and so this is one of the things powering the market. the final, the r, is what winston churchill calls a riddle inside a mystery inside of enigma, and that's russia, political machinations, washington, could affect the market, and if that's the case, you can go ahead and use that as an opportunity to buy. hope it doesn't happen. if it does happen, that's a good time to buy. the earnings -- you know, there's so much cash on the sidelines, interest rates are very, very low, the market is high, kelly, and volatility is low. this is not a great recipe for a long term, but i think it can continue for a while. 33% long term averages, 39%, so we don't have euphoria right now. the party can continue.

>> you want better entry points? if the russia headlines come and spook the market again, you're saying maybe that's -- >> that's the time. that's the time. i think you can buy europe and buy u.s. equities. next week we get the fourth, consumer confidence, you get cop consumption, personal consumption, case schiller. the four cs. i sound like i know what i'm talking about, but i don't know what i'm talking about. >> no extra charge for the cs, by the way. good to see you. >> happy memorial today to you, bill, to you, kelly. >> thanks to all of the service people who are here with us today, and thank them for their service. we have the closing countdown in just a moment. >> and then when we come back after the bell, activist, hedge fund manager, paul singer, warnings about what happens if

trump's promised reforms are not enacted. more about that. you're watching cnbc, first in business worldwide.

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begin with here. what is this thousand? zem seven consecutive days with the market higher. s&p in record territory. the number traders talked about forever, it seems, 2400. kept bumping up against. we broke through it earlier this week, and now as you heard from various traders, that seems to be the support level. we'll see. now they are all picking their favorite number above that, their target, to go higher here. what a crazy week for crude ill, u.s. crude, wti after the opec meetings, voting to extend the production cuts another nine mont months, and the market collapsed, down 5% the other day, coming back a light here, up 1.7% today, but well below the 55 range as some people think we should be at right now. the ten-year yield, same thing, fed minutes came out. slow and steady is the word from the federal reserve on what nay do with monetary policy and the yield went down on the

temperature-year, but we are still stuck in the range we've been in for quite a while. there's the thousand dollar watch we've been following whether it's going to be google or alphabet as its known, parent company, or amazon, and bob pasani, at 994.98. we point out that as amazon has split its stock -- >> right. >> three times. >> yeah. >> over the years. >> but -- effectively 12 times what it would have been. >> would have been a $12,000 stock. >> what a week. we may not make that -- right on the edge of seven straight days. i want to point out, though, the dow transports up 5% since -- look at the move up, last week, middle of 17, nasdaq's up 3%, s&p 2%, but this is in a trading session that we're up, and i called around all day in the trading desk saying, hey, folks, what about the trump agenda, oil not doing anything, the economic data, and everybody said, bob, nobodiments to hear about it. the market is in the i don't want to hear about it kind of

mode. i said, didn't that hurt, that was a lot of money back then. $500 like a good neighbor. >> barry ringing the new york stock exchange. stay tuned now for the second hour of the "closing bell," happy memorial day, everybody. ♪ thank you, bill. welcome to the "closing bell," everybody, i'm kelly evans, small increase to close at the record high there, the dow looking at a jump of about six points to 2176. s&p is up about half a point. we'll see exactly how that shapes out, but that would, i believe, be a record high of 2415.5. the nasdaq gaining less than a tenth personality, but 6210 is the high water mark into the

long weekend, and russell, sitting this one out lately, and today, did so as well. dropping about a point, remaining at 1382. the dow has not yet taken out the march 1 record highs. russell set a record close on april 26. meantime, singer management is warning of a recession if the trump administration does not s.t.a.r.t. making changes on taxes, regulations, and health care. all the details an what it could mean for the market coming up, but, first, joining me to talk about the markets, the chairman and founder of navalier associates, and head of global equiti equities, let me begin with you, as people head into the weekend to start thinking about the summer, do indexes stretch to you or do you like the price action you're seeing. >> no, i like the price action. we're melting up. we had a correction a week ago, and it was a buying opportunity. i -- there's been a a lot of

shorts tweeted here in recent weeks. there's a lot -- still a a lot of very good buying pressure, and, you know, june's going to be a big month for realignment. we're going to have russell indexes realigned. i already bought stocks anticipated being added. we have our quarter end rebalancing policy, and then we get quarter and window dressing, so, you know, we finish march on a strong note, and so it looks very good going through july, and then it's bumpy in august. >> courtney, do you echo that? there's still so much skepticism about the rally. guests said it's a summer of volatility, the political events we're dealing with, this is where the market is overvalued. you know, do you echo that? >> i echo that. i've. saying for a very long time we've been seeing this melt up, and i'm okay with that. i don't need a ton of volatile till. the trading desk would love to see a ton of volatility, but my

personal portfolio does not want volatility. i do not need to take the altercation. at the end of the day, i definitely agree that we will continue to see a slow melt up. incredible things from the earnings session. very stock specific. this is a stock pickers market right now, and we're seeing the companies that are doing well, knocking it out of the park, and we're seeing those that might, you know, need improvements falling by the wayside. >> he's an example of the skepticism. in fact, comes from one of the most successful value managers out there. this group, of course, and with -- i don't know if we have text of that, there we go. he said, when share prices are low, fall of 2008 and early 2009, actual risk is muted while perception of risk is very high. you know, the point being by contrast of today security's prices are high, but perception of risk is actually -- put the risk to investors that are elevated. does he have a point there?

>> well, if you're a value manager like he is, yes. values struggling. this is not a value year. last year was. so, yeah, i guess if i was a value manager, i would be chronically depressed now over financials and energy and things not participating. the truth of the matter is that it's on the growth side, and we -- the market has not gone up as much as earnings have, so pe ratios are falling. so on the growth side, it's just wonderful. of course, it's led by tech. we have a lot of exciting, you know, israeli stocks, chinese stocks, a lot of the big abrs safer than the nonavr components, so a lot of exciting places to invest right now. >> you are excited about ulta beauty. why is that? >> well, other than i have a 16-year-old daughter who was just there today, of course, the -- it's a cult. i mean, look at the same store sales. it's stop iunning.

it's a predominantly domestic company. when the dollar was strong, people look for domestic companies. it was a trump stock before there were trump stocks, put it that way. retails are really tough areas. you see lowe's versus home depot, home depot is winning that now, and ulta is thee best retailer you can buy right now. >> courtney, i mean, look, ulta is not the story at this point. i mean, i'm following it, i feel like a groupie. same store sales incredible, quite the runup, and, you know, what would you say about all that? >> kelly, i'm going to start with management. marry dillon is a phenomena. she's doing a phenomenal job running the company, incredible brands in, and i have an idea, actually, film closing bell from ulta when they bring mac in. pitch that to the network. >> when they bring mac in? >> mac brand to ulta stores,

online last month, and they're going to be in the stores now, it's going to be huge. it's going to be huge. i'm excited about the name. covered the name at lou capital from a research perspective. they are in by backyard in bowling brook, and the excitement and buzz in the stores, around the name is incredible. >> is there any other way to play this game, courtney? >> well, you know, i think at the end of the day, you know, you think about all the tech stocks that are actually driving this market right now, when you look at the facebooks of the world, there's instagram, whether you like snapchat or not, you're not getting on snapchat unless your makeup looks good, so, ultimately, ulta is positioned very, very well to absolutely be able to monetize and capitalize on this, you know, looking good moment that we're seeing right now, and i think with the tech stocks that are rising and all that we're seeing, you know, with bookings right now at video live or

instagram stories, ulta is po d positioned incredibly well in the retail space. >> huge investment in nvidia. also one of your favorites, and we've also had a slew of announcements, google trying to come out with its own chip, apple maybe doing the same. do you like a name like nvidia as the place to be in the market? >> sure. well, nvidia is the new intel. intel had to buy mobileye to compete with them, but they are dominating graphicships for a long time, and for over a decade now, and energy efficiency, and now they are dominating the artificial intelligence chips, invading our cars, invading our lives, so this is going to be a $300 stock in a couple years, so just hang on. it's going to be a great ride. >> wow. >> so more than doubling. >> wow. >> it's incredible. >> where's that leave intel, louis? >> intel fell behind.

that's why they bought mobileye, and they do artificial intelligence for bmw anvidia dos it for volkswagen, audi, that group, and mechanically, volkswagen is ahead. they'll have a fully autonomous audi in 2020. they are doing the research on it, and there's cars that drive themselves around racetracks pretty fast. >> really quick, courtney, too, yeah, just looking at your tech picks, a name you are watching, a recent ipo. >> absolutely. i've been watch iing of twilio, not excited about the guidance given, but spoke about the buzz on the street right now is that although they guided a little bit lower and guided around their interactions with uber, they probably are hedging themselves. think about it. the biggest clients, the

facebook, there's netflix, amazon invested directly. i think we might be okay. you skrjust close your eyes and ride the coaster. first couple quarters being a public company can be a little troubling, but i think that their business model and in advance in the market place is incredible. >> maybe another way to play the biggest names of the year so far. guys, stay right there. marking 121st anniversary of the dow jones industrial average. bob is on the floor with a look, bob, and i love this, at the average annual return for the dow since inception, what did you find? >> we have the answer. average annual percentage the last 12 is 1 years, 7.5%, annual basis does not include dividends, so actual returns would be higher. now, you probably know the path to seven and a half return is not smooth. in the '20s, up seven of the first eight years, boom years, biggest one-year gain? 1950. 8 it 2%, biggest year decline,

53% in 1931. ouch. hitting a historic high on 380192 the 9, it bottomed july, 41 it bottomed at. after the crashed in 1929, and did not regain the highs until 1954, the market boomed in ten years, great years, going from 556 to 965, and it did not close above 1,000 until 1972. dow did not top 1,000 until 1982. 1990, a boom year, we know the dow went from 3,000 in 1991, 4,000 in 1995, 8,000 in 1997 and topped 10,000, 1999. i was on the floor for that. it was ugly in the early 2000s after the financial crisis, but it passed 14,000 in 2013, and, kelly, you know this, not

looking back, moved 7,000 points in four years. how about that? 121 years of history. >> by the way that was impressive. the other thing is 7.5%. bob, stay there. louis, i was going to ask you, do you think people bank on 7.5%? just so happens that's the bogey for pension funds and they are not going near stocks. >> yeah. i think that's a good return for the dow. first of all, has a high dividend yield. has massive inflows to indexing, and then furthermore, you're in the best earnings environment in five years, and earnings get better every quarter. it's going to do better than that near term, but longer term, that's 7.5% return that's realistic, especially with the juicy dividends dow has. >> do you echo that? again, so fascinating that pension funds had a really difficult time making 7.5%. piled into the investment high

yield credit out there, and whatever the new instrument is, private equity, hedge funds, alternative investments, you name it trying to get 7.5%. they just did it in the starcht. >> you have to be diversified. we'd love to pile it on 100%. but that's not responsible or prudent. the pension funds, many of which took actual rates of return down from 7.5% substantially to not chase yield. i do think that having the diversified portfolios they do have will be ben official. 7.5% over the time frame, stick that into an infrastructure fund and potentially double that with less risk than the perceived risk in the stock market, so i'm not going to pretend like i should be telling public pension plans or corporate how to be allocating, but one thing learn over time is that diversified portfolio is necessary over the long run. >> sounds like the blackstone

pitch with infrastructure funds too. good points, though. thank you very much for joining me. appreciate it. >> thanks, kelly. >> famed hedge fund manager with a warning for president trump. paul singer says the u.s. risks recession if the white house can't make changes on taxes, regulations, and health care. larry kudlow reacts next. new study finds millennials want to buy homes, but they are not saving for down payments for typical houses. is that a red flag for the real estate market? that's still to come on "closing bell." you're watching cnbc, first in business worldwide. what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii!

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call today. comcast business. built for business. welcome back, activist hedge fund elliot management warps of a recession if the trump administration fails to follow through on promises. over to leslie picker for more. leslie? >> that's right, kelly. the direct quote from paul was all hell would break lose, but they are not expected to ask what hell looks like. we think it's a good time to build a significant amount of dry powder. we think the low volatility levation magic act of stocks and bonds will exist until the

disenchaptering moment when it does not. that helps explain why the firm raised $5 billion in 24 hours earlier this month. think of that as a rainy day fund that elliot sees opportunistically when prices go down. elliot's strategy could slash that of other investors, namely just other value actings, expecting it to return $1.25 billion worth of capital back to investors in early may. when he saw it to be a lack of opportunity. both of them join a slew of other prominent hedge funds managers like omega who face significant political risk to the market, guys? >> all right, leslie, thank you very much. joining us for more reaction is c cnbc senior contributor, larry kudlow. what i find about paul singer is it's not valuations are high or whatever, but it's move the agenda along or else the market does not have enough momentum behind it. >> i think he's right.

i mean, paul singer is an old friend and smart map. i'm not in recession camp, but i do, however, acknowledge this is investment capital formation over the last, i don't know how many years, have been the weakest spot in the economy, and it's one reason we're growing at two instead of three or better. >> do you think this will be a powerful -- is it going to make a difference in the white house that a guy like paul singer comes out and quickly -- is it -- maybe not the white house, but help congress? move things along here? make that kind of difference? >> well, you know, if singer is a strong critter, strong donor to republican causes, so people will listen. trump will listen, i mean, they like -- president trump likes -- >> am i asking -- >> i don't know. i mean, at this point, it's a matter of timing. the tax cuts are going to go through. i can't predict when. they are going to be easier than the health care stuff.

they should have been first on the agenda. i do believe tax cuts are going to go through, but i want to make a point about the threat of recession and so forth, right. i don't see a recession. i do see slow growth. profits. can we talk profits. they are the mother's milk of stocks and life blood of the economy. >> yes. >> you can't produce if you're not profitable, okay? a couple points. number one, we had big, big profits numbers in the s&p 500. at most, most overseas, internationally driven, and if you take out that and the banks, the actual profits are much less, and you got a gdp report now, now that's profits at large. >> yeah. >> four, five million companies in there, those are so-called irs profits, can't fudge anything, okay? and they are falling 5.6% falling, core domestic profits fall, 5.6% on a year on year basis, and with respect to profit margins, they, too, are

falling because the balance between cost and prices has not been favorable for quite some time, so i'm just saying -- >> mean more inflation? >> no, i'm -- no, may wind a being deflationary. missing link is productivity. you get wage increases, modest, you don't have productivity to offset it, but prices are not full enough. >> more german plants making german cars, then all problems are solved, right? >> you are leading me into at topic, and i love doing that. >> let's talk about president trump, my support on most things, but not necessarily trade. he took a blast at the german trade situation. they run a trade surplus, okay, export a lot of stuff, and he wants to see more balance, and he made threats and so forth, and, by the way, you can't negotiate with one country. i just want to say this, there's

two sides to every coin. german car makers in the united states are producing -- listen to me -- tens and tens of thousands of american jobs. we want jobs. mr. trump mewants to make ameri great again. the administration is geared towards improving the job industry in the hard industries, right? >> are you saying they don't recognize that? the language does not recognize reality of what the german car makers do for the economy? >> could have been a yes, but i recognize -- didn't hear that. >> right. what are they trying to get from this -- >> here's some stuff. let me give you this. i said temperaturns of thousand jobs, literally. this is from the german car makers association. in south carolina, if not for bmw, there's not a spartanburg. seriously.

i mean that. 60% of the german cars made in america are exported. president trump likes exports. should be very happy. they are creating jobs and exporting, and, finally, this doesn't measure the effects, right, second and third effects. they are not just making the cars and american workers, but retailer, sales people, repair shops, fix-it, you name it, all that, german cars right to work states have saved a big chunk of the south, and, by the way, are pulling jobs from the north. a lot of the losses is in mushz and places like that. it's not that they are leaving america, but they are going south. >> absolutely. i grew up in upstate new york, and it's hallowed out. everybody moved for better property taxes, outside of syracuse. >> wow. >> little town. >> so i'm just saying, let's have a balanced view on trade.

okay? if there's trade infractions, every president solves them. i get that. blanket statements on trade, you got to be careful. the germans -- i'm just saying this -- the germans are helping to make america great again. okay? on top of that, they are exporting, so that supposedly makes america great again, although, i'm not expert on exports, but paul singer is not 100% right yet, but the profit story tells me the economy has some holes in it. >> yep. >> and, yes, we should lower -- it's three easy pieces, kelly. the movie was five. i'm making three. lower the budget tax rate, immediate expenses for new equipment, repatriation. >> make more german cars in america. >> you make -- >> that's the fourth -- >> you'll be the investment destination for the whole world, three easy pieces, and, yes,

thank the germans. the south rises again with bmw. >> have a great memorial day. >> larry kudlow. >> amazon inching closer to the $1,000 club, but stocks trading high prices are targets for manipulation. also, remember bill griffeth's drawer? now the company is out with a new fitness tracker, greating rave reviews and may make bill a believer. find out next. ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here.

welcome back. it's time for a fast take on this friday before the long weekend, and look who is here to take part in it. mr. bill! >> where is everybody? oh, you -- >> they -- >> wait a minute, you get a studio audience this hour? how does -- >> applause, applause. >> where did everyone go? >> the poor man is prepping for another show. we have to ask you about the fitbit. >> well -- just tell me the truth. i'm not -- you're not playing stump bill here, are you? >> yes. >> that's not what this is about? >> there's one -- one day, not this day, but one day. >> all right. >> first up today, the hat that was not, disney was not hacked after reporting hackers threatened to steal a film. after reading reviews of pirates, hackers might have said it was not worth the effort. >> we see the same on this one.

face it -- >> just saying -- >> talking about guardians of the gal laxy, that would have got their attention more, but this is number five for the pirates series. >> interestingly enough, it's off to a strong start. >> well, i think it is critic proof. those who love the series, jack spar row and company, are going to see this anyway. it's a beloved character. they forgot to add plot. after number three. >> still need those. >> yeah. >> a rainy weekend, picking between pirates and baywatch, you are viewing? >> home watching ccm. >> wise man. next, mark zuckerberg. >> use social -- on track -- we should have a society that measures progress, not just by economic metrics like gdp, but

how many of us have a role we find meaningful. explore ideas like universal basic income so everyone has a cushion to try new ideas. >> now what he did there was what everybody should do when they make commencement speeches. he got us talking about stuff. i gave the commencement last week, and the message to the graduates was stay hydrated. that didn't work out. i get what he's saying, but if it was easy enough to do, we would have done it already. right? it doesn't fit the model of our economic system in this country to provide everybody with a level playing field. >> all about them getting out ahead over job loss as well, and fortune pointed out it was pope francis going on charlie rose to emphasize importance of work. >> yes. >> certainly, anybody that has creative tendencies should be free to be able to pursue

tendencies, you know, the old joke, you know, half the screen writers in hollywood, how do you call them? hey, waiter, you know, but same goes for silicon valley, creative person there who deserves a break, absolutely, but i don't know about -- the wordup ver sal, i think, is the the problem here. universal basic is the problem. >> yeah. next up, chibani getting the shoutout from clooney, calling on the private sector to do more to solve the refugee crisis saying, he wants, quote, all hands on deck. >> that fits our business model more in the economy, and we've seen starbucks and others do already, say they would hire a certain number of imgrants and help that process there, but, yes, it would be nice to have more. how do you do that, though? what incentives do you provide for companies to step up on that? >> not enough for george clooney? >> that might -- >> if they see the end result, come watch a movie with george

or be casted for a role in the next film. >> george can ring the closing bell. >> i like your thinking. >> right? >> can do fast take. >> i'll take barry, you get george. >> this works well. >> okay. >> finally, and most importantly, it's the fitbit you've. waiting for, bill. the hr gets positive reviews, and it better because stanford put out a study saying it's awful, adding a lot do a good job measuring heart rates. >> i don't know if that's what i have or not. looks like it is, but, you know, i got the fitbit -- >> does look like it. >> after visiting my doctor in february, he suggested that, you know, i needed to lose a couple pounds, and the way to do that was with a fitbit. >> which you had already. >> i had one before, but, you know what, counting calories was too cumbersome to do that. as you probably know, there's the old one right there. it's still there, too. the new one is on my wrist, and since putting it on in the last

couple months, i lost ten pounds. >> when you're a guy, it's that easy. slap on the fitbit -- >> no, not easy, but -- my doctor said, don't worry about calorie counting or that, just count the steps. >> wow. >> that's what i have done. >> thank you for walking back and forth here to take part in this today. >> and on pbs tonight. >> tune in. >> have a lovely weekend. >> you too. >> yes. let's get sue to join us here. >> thank you very much, guys. indeed, i will. here's what's happening this hour, everyone. egyptian president appeals to president trump to take the lead in fighting terror after mass militants opened fire on a bus packed with christians e in egypt killing 28 people and wounding 22 more. egypt now launched air strikes against libya militants responsible for those attacks. >> american singer grande is returning to manchester for a benefit concert to raise money for attack victims and families.

details are being finalized, but she will announce it as soon as everything is confirmed. bmw recalling more than 45,000 older cars because their doors open unexpectedly. it covers certainly 7 series vehicles from years 2005-2008. they are still working to find the cause and develop a fix. we end on a story tradition. the annual hat toss at the u.s. naval academy graduation. there it is. shipmen give three cheers for those left behind. more than 1,000 graduates then tossed their hats into the air. that's the news update this hour, kelly, back to you. >> a sight to behold, sue, thank you very much. have a great weekend too. >> you too. new study finds 80% of millennials want to buy a home, there's just one problem. the vast majority saved less than $1,000 for a down payment. how much a problem is that for housing?

later, heading live to the border of texas and mexico to find out why developers are building a huge new wall despite concerns president trump's border wall proposal could have damaging effects on the recent economy. stay with us. you could fill a book with all the things you'll never learn from a book. expedia. everything in one place, so you can travel the world better.

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welcome back, a look at the day on wall street, moves major, headlines are, the s&p and nasdaq lows, fresh record closes here, s&p up less than a point, 2415, the new water mark, nasdaq up five points, 6 it 210, and russell and dow lower. lrm all right. breaking news on the debt ceiling. ylan, what's happening? >> kelly, the white house is starting to warn that the debt ceiling could be reached late this summer. that's according to two of my sources. senior staff in the white house treasury department and omb dli delivered the message to conservatives in a meeting yesterday. congressional budget office previously estimated that the country would not hit the debt limit until the fall, so this could catch markets off garuard. mulvaney said it comes sooner than expected because taxes

coming more slowly than anticipated, but the treasury secretary will not directly address the timing in his testimony on the hill, but repeatedly urged congress to raise the debt limit before lawmakers leave for the august rece recess. now, the actual date of the deadline remains unclear. tends to be a moving target, but already conservatives are in a battle for raising it. the house caucus said this week any increase should be paired with spending cuts, though they prefer a clean debt limit bill. back to you, kelly. >> there's nothing we like more than the endless debt ceiling stories, ylan, drags on, and importantly -- >> this is just the beginning. >> i know. we know there's priorities, though, like, is there enough room for this in the middle of everything? used to resolve and move the agenda along somehow or become another stumbling block? i guess these are the questions posed to everybody after the weekend. thank you for bringing us that news, ylan, in washington. wall street journal reported

millennials want to buy homes, but are not saving for a down payment. this is what brian moynihan suggests. >> our goals back to regulatory reform is move down payment requirement from 20% to 10%. it's not introducing much risk, but helps a lot of mortgages get done. look at the statistics, difference from 80 and 90 loan to value is not much different as it is between 95 and 90. that's when you start to see real differences in performances, and we don't want to wish people to borrow money they have trouble repaying, but i think we can move some. >> would a 10% down payment help resolve this, and do millennialsment to buy homes? they are interested in buying rvs, no joke. joining us now, rv expert, diane and justin, luxury broker at cline real estate. dia

diana, there's a lot of competing stories, sounds like the age-old question rephrased, what do millennials want? >> all we talk about is what do millennials want, doing stories gauging if they are saving, to the saving, and, look, i talk to a lot of millennials, they want to buy homes, and older ones are. there's a jump in the share of first time buyers and millennial buyers. that was from an apartment rental company survey. put that there. talk about down payments as the barri barrier, and it is, because younger people have student loan debt, higher represents, started later in life on jobs because of the recession, but, remember, there are low down payment programs already, 3.5%, fha, 10% freddie you just have added costs. put it this way, put 3.pennsylvania% down on a 250,000 home, median price in america, less than $10,000 to buy that house. >> justin, what are you seeing in the market?

>> well, you know, it's difficult with the competitive markets such as new york and san francisco, one, you know, new york, the average place is now in ceo sesz of $2 million, a starter home in san francisco, well in excess of million and a half, and then you're dealing with competitive offers, and difficult 200 groceriegroceries juices and cocktails. >> you're playing into the avocado toast story. >> do you think that's what's going on? >> a little. >> people are consciously choosing to sort of spend too much on unnecessary everyday items, or is it the case that maybe some millennials are not interested in buying houses, just an important part of the, you know, how to spend money? >> well, you know, they are

inherently interested. i think it just is so expensive in so many markets that it just doesn't seem real liz tick. i have one couple, just married, paying $7,000 a month for a two bedroom in san francisco. offered last week on a starter home, a fixer, listed at $1.2, went in excess of $2 million. >> oh, my gosh. >> the process is so daunting. >> talking about the most expensive markets in america. you can't say that millennials everywhere are in san francisco, sure, denver, downtowns paying high rents, but vast majorities are not living in san francisco or in manhattan. they are living out in america where the median home price is $220,000. those millennials are moving towards the city. they are starting to buy again. yeah, in the hot markets, it's very hard to buy, but in the rest of the country, it is not. >> right. i think that we are seeing cities like charlotte, portland, oregon, seattle, dallas, austin going up for that reason.

a lot of millennials move to areas like that where homes are far more affordable. >> diana, one final question, as you mentioned, there's a lot of people who could buy more affordable house in parts of the country, but is the job market different today somehow? is it really centered much more in the new yorks and san franciscos and or is it spreading? is there a chance for anybody, you know, across the country who is interest the in buying a home to find one? >> well, there's certainly jobs across america, they are snot just centered in big cities. we talk about them because that's where the big money is stocks are, et cetera, what we talk about on cnbc, but there's cities like cleveland, very hot right now, kansas city, st. louis, cities in the middle where housing is very affordable, even in the south, as you said, charlotte, portland, oregon, hot and pricey because everyone moved up there. one thing, the tiny home movement -- >> what is this rv story today? >> rolling -- yeah.

first of all, a tiny home, because of zoning, has to be mobile because they all have wheels on them because you can't put a tiny home on a plot of land like right here. are they buying them? maybe when they are 25 so they can buy a $30,000 tiny home and it's fun, wait until you have a kid. just saying. >> yeah. >> they can drive the trailer, pull the rv along. anyway, it's not safe, people. diana, justin, thank you for joining us. >> thank you. >> we continue to try to get the pulse of the market. meantime, eyes on amazon, retail giant inches closer to the $1,000 share price. the benchmark could make the stock right for manipulation. more on that ahead. jay wells is in texas with a different look at retail. hi, jane. >> reporter: hi, kelly, yes, 100 degrees here. this is loredo, texas, that's mexico.

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midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪ the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. welcome back, president trump has vowed to build a wall on the u.s. mexico border, so why have mall developers spent $100 million to build an outlet mall right there, and jane wells is joining us from loredo, texas with answers. hi, jane. >> reporter: hey, kelly, you know, talk of a border wall,

bordarrder adjustment tax creat tension in border towns. the mayor said 40% come from shoppers crossing to come here to places like this, it's 120 million, kelly, to open up the new outlet mall. opening up as anti-mexico represehetoric heated up and th spent millions to bring it here. >> we're very welcoming towards the mexican shoppers because that's our nature, but it's good business, you know, for a a city. >> the timing was challenging. no two ways about it. and it was not just the new administration. the peso has been weak for a couple years now. which hurt border shopping, but the center, itself, in two weeks did over $4 million. that's a lot of sales. >> reporter: 40% of the sales here are in cash. that's twice the norm for cash transactions, showing you, kelly, how reliant they are on the mexican shopper, even still, border towns across texas see

lower sales tax revenues, part due to trump rhetoric, the weaker peso, which could be traced back to the president's rhetor rhetoric. back to you. >> braving 100 degree temps, jane, impress. amazing. >> i'm fansing. >> have a great wednesday, and thank you very much. >> thank you. >> seems like there's nothing but may ham in airports, but there's a business looking to be a calming influence. that's right? >> that's right, kelly, and, in fact, my fraphotographer said, , this is smaller than my closet at home. he's a bragger. when is 56 square feet luxury? when you're at the airport looking for peace and quiet and a nap, right? if that's not all, wait until you hear about the dogs. after the break on cnbc.

>> welcome back. as lines are growing, fist fights like this one earlier this month are breaking out. now an airport in texas has come up with a way to calm passengers. contessa brewer helps us. >> reporter: hi there, kelly, dfw is the tenth largest, tenth busiest airport in the world as far as passengers go and so you can imagine all the flight cancellations, the delays the screaming children, to stay say nothing of children, they are trying new tracy programs, that

has gone literally to the dogs. there are dozens of k-9s checking caresss and compliments, the travelers squeal or coo. dfw launched the program in december to lower stress and improve traveler experience. >> i used to travel almost weekly for work. i thought, you know, it's so hectic, it's so busy, i'd love to see a dog. i think as you've seen, everybody loves to see the dog. i mean, very few people walk by without coming up to pet them. it makes everybody smile. everybody is happy. >>. >> reporter: you know what else makes people smile? mood lighting in security. yoga lounges, they're doing minute squeeze, you can pop down your $42, you get an hour in a private suite, peace, quiet, phone calls, without people listening, lay down new want to, have a nap. guess what. it's working. dfw is having great customer satisfaction. by the way, kelly, one of the

dogs live for you here, it turns out, they're like humans, they started their memorial day early. >> i wanted the one with the hat and the flass. >> so cute. >> i mean, it would make my day. i want to take them on the flight. >> i don't think that's allowed. i appreciate the effort, contessa. >> they go. the people have them on the flight. right, they do. when you can't have your own dog, you can't imagine the people who say i miss my dog so much. i need a little pet. >> it's great therapy. >> there is my favorite. >> look at the hat and the flass. >> brilliant. >> thank you so much. i hope this eases your flight back. our contess that brewner dallas, ft. worth. up next, why a sky high satellite could be right for market manipulation? why the chart master carter worth says we have a final rally. he'll reveal what it is next hour. we're on to you, diabetes.

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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

>> welcome back. amazon stock could be right for stock manipulation. eric. >> that's right, thanks, obviously, we know amazon shares

are around $100, splitting it for retailers getting in, a cheap place to buy. another thing to consider, the high stock prices could leave things open for potential market manipulation. that's according to michael freedman, general counsel for trillion, he wrote a program to detect manipulation like this. it simply comes down to size. when share prices are high, ordered are thin. any one trade can bump the price around and more bumps means more chances for manipulation chans include artificial device, it's visiting the prices where the mark will hang out having to trade. other experts, they pointed out thinly traded points are ripe, it's the number of shares that gets traded, regardless of market cap. he says exchanges operate best

when they're about 28 and 80. we know prices move one penny at a time. you want one to trade at each penney level. right now, there are over 150 stocks with share mices above $100. >> we have amazon, google. who is behind them? >> so there is like five stocks that are at 900 or more, it's practice isline, am zorn, google, both classes there, you look at shares above 400, 300, there is about 15 stocks total. i think there it is, look at that. there is names like plaque rock and charter and clip ottley is above 450. >> regeneron. auto zone is up there.

equinex is up there. >> the real estate play, i wonder if this will make a very important announcement, eric. >> quick shots, they are heading, the women's a lacrosse team, final four stiefls. they've had the best season in the program's history. we are so proud of you. we chewill be cheering you on i general. "fast money" starts right now. >> live from the nasdaq markets overlooking new york city's prime square, i'm little lisa lee, tim seymour, karen finerman, guy adami are in the chair. where is it heading next? steve grasso breaks down the levels to watch. gold is chiny. he'll explain why it's so bullish. you don't have to be a prime peb. that's little later on in the