>> your success is not the world's problem. you are now media as well. welcome to the club. might have to take more responsibility some day. >> interesting to see how the laws develop around this. >> if they develop around this. >> yeah. >> thanks for watching. and thank you, courtney. >> thank you for having me. >> "closing bell" begins right now. hi, everybody. welcome to the closing bell. i'm kelly evans of the new york stock exchange. >> happy monday. >> yeah. >> happy frigid monday here. it's very cold in the new york stock exchange but you don't care about that. i'm bill griffith. amazon prime video is coming to apple tv. we have a new imac pro, paying your friends through imessage has been announced at the developer's conference. you're going to love that one, right? >> i mean, i like apple pay a lot. >> now you'll be able to use that as if it were like venmo which you also use. >> that's good.

they need to help people like me understand how to get this up and running pretty easily and within imessage. that's the key. >> and the apple watch is going after fitbit. once again i'm going to be wearing a dinosaur at some point in the technology world, but we'll take you live, get more details. we're still waiting to hear about the siri speaker that will take on alexa coming up. >> that's the big question hovering over that conference. also shares of blue birth b -- blue bird bioare poppi are popp >> trump announced plans to privatize air traffic control. what would that look like exactly, how does that work? transportation secretary elaine chao will be joining us in a first on cnbc interview coming up in this hour. let's get to the apple developer's conference in san jose, california. josh lipton is on the scene with some details for us. josh? >> reporter: bill, there are

more than 5,000 developers here behind me today. they want to hear about software updates. they listened to apple's tim cook and others. they offer a number of updates to their operating systems. one big feature that's coming to that new version of ios is ios 11, the iphone, the ipad. apple did introduce today peer to peer payments through a new feature they're going to call apple cash. that would seem to be of course a direct attack on similar services like paypal. you can send money more easily to your friends and family. for apple pay, that's going to be part of ios 11 which will launch later this year. apple ceo tim cook started the conference by talking about apple tv. i heard you two talking about how amazon prime video coming to apple tv. obviously your living room is a big area of competition between

all the big tech giants. if apple tv is going to be a success, tim cook knows he has to bring you some of the most sought after and attractive content that's out there. another operating system that received an update today was the watch, so a new workout app for the watch, a new music app for the watch. as always, apple doesn't break out units or revenue for the watch but idc actually just this morning pointing out that at least according to their estimates apple shipped about 3.6 million watches in q-1. up 60% year over year. that means they're tied for the fitbit. for the mac, new operating system there. apple unveiling a so-called high sierra operating system. they say with this system safari will be faster, mail is refined. it will support vr for the first time. it wasn't just software. they also introduced hardware updates as well and unveiled a refresh line of imax. so new hardware is also on the way. the whole mac line did move to

that 7th generation intel processor, the newest processors. all those new macs are going to start shipping today. that product does represent about 10% of this company's total sales, including apple putting its flag in the sand saying they intend to keep being a competitor in this space, taking on microsoft, dell, hp. guys, back to you. >> one thing i like in here, they have a do not disturb while driving mode for ios 11. joshua, thank you, and keep us posted. tom dolan from the information, tom, what's most significant to you? >> right off the bat, them mentioning that amazon video is going to be coming to apple tv. this is a long time coming. it was reported a few months ago that this was going to happen. finally they've made it official. what's worth looking at, amazon is not just a competitor in terms of streaming video because they've already had netflix on there, but amazon has also

individual episode downloads which is directly competitive to what itunes has had before. so i think you're getting a sense the fact that amazon video is coming to apple tv, that apple is in a way kind of giving up on that as an exclusive business model and willing to let amazon come in on their turf when it comes to individual episode downloads. very much important and i think big news when it comes to apple video. >> cooperation there but then presumably we're hearing that the end of the show is when they're going to unveil this siri speaker to go after alexa, so they haven't completely given up as competitors against amazon, have they? >> sure, sure. not at all. i mean, very much interested to see how that's going to be rolled out. all the reporting is that they're going for a high end speaker so that is very much tied into the music aspect of it and trying to have a high fidelity music experience. absolutely, they're not giving up in terms of overall competition but even just allowing amazon onto the

platform is a major concession that had not happened in the past few years. >> tom, i just feel like all of these devices that they're unveiling, while amazing, are perhaps not as exciting as they might have once been. >> incremental. >> look, this is an environment where you know better than anybody we're excited about what's happening with the cloud and artificial intelligence and analyzing data and being able to use your voice to access those capabilities and execute commands, and it doesn't feel like a very -- i don't know, it doesn't feel like the mobile phone and the imac or whatever matter so much. is apple risking kind of losing the forest for the trees here? >> i don't know. i mean, i think you're right on that it does feel kind of incremental. what is more incremental than taking your operating system from sierra to high sierra. there's an acknowledgment but listen, apple has the best relationship with the app

developer community and that's what wwdc is about. i think you're seeing the developer community figure into a lot of the decisions here. they've rolled out a lot of kits. there's the music kit, there's the augmented reality kit which is a whole other story that's going to be very interesting. i think you're right. they had that kind of cheesy video starting off talking about a world without apps. obviously they're trying to play on an emotional strain here and get people thinking about themselves as the hub of apps. when it comes down to it, people are probably downloading fewer apps than they used to in the past and apple wants to show that apps are significant and it's really just not clear how much people are going to continue to be massive app downloaders the way they were in the past. >> once again, i've been downloading a bunch of apps lately. story of my life. >> there you go. >> there is a good transit one for new york. if you don't have it, transit app. >> i don't need that. thank you, tom. tom dolan with the information. let's get to the closing bell

exchange. remember now, any positive close today for the dow, the s&p or the nasdaq will be new all-time highs again. that's how we finished the week last week. jj ken ahan is with us. david bonson is out there somewhere. we've got new york stock exchange trader kenny pullkari, and rick santelly from chicago. j.j., we love when you come along. you tell us what your customers have been doing. let's focus on apple. have they been net buyers or sellers? >> they've been net buyers for the last two months. it's interesting -- i'll start with one thing overall. our retail clients have been net buyers for four consecutive months of the market. so although it's the most disrespected rally ever, our clients have been believers. it's kind of funny, bill, because four months ago they actually sold apple and then going into earnings they started

buying it again and they've been buying it ever since all the way back up. they had taken some profits and the faith is renewed. >> some other good names we'll get back to but kenny, i wanted to ask you about the activity overall today. the move in oil again is kind of lackluster. i'm sure that can't help the market. >> not at all. but there's pathetic volume. i think there's a lot going on this week and the political drama towards the end of the week is kind of what's holding everybody at bay. but not a lot of volume. we've had really no move in the s&p or dow of any significance. oil weaker again today even after that news last night about what went on there in the middle east and the four nations boxing out qatar you would have thought oil would have rallied on that news and in fact it did bullt tn it backed off. it's a little confusing. the market feels tired right now but i don't think anyone wants to make any big move because thursday could be the kind of a day that -- >> james comey. >> yes. the election and the vote on financial reform which is coming this week as well.

so there's a lot going on that could send the market one way or the other and people are going to sit and wait until they get a better sense. >> david bonson, i'm looking at your notes here. you feel it's time to start peeling back from some of the big fang stocks. so i guess apple would be a part of that. are you kind of taking some money off the table there? >> actually, we would look at apple a little differently than the fang stocks. in apple's case we want to be defensive, careful. we're not adding to the position, but in apple's case it at least meets our criteria because it is a dividend payer that has the capacity to be an extraordinary dividend payer at some point when they get serious about that $200 billion-plus of cash sitting around. in the case of the other names, you're right, we're much more bearish on the fang names, and that's totally valuation driven. it's no way a commentary of what we think about those companies aspira operating entities.

we think it's a great environment for risk takers and maybe time to peel back compose shurs. >> we're just showing the charts of those four companies in the fang category there. as you see, amazon and now alphabet are both above $1,000 a share. >> moves year-to-date. rick, meantime, what about the u.s. dollar, especially after the terror events in london over the weekend? >> you know, not much activity. the dollar is still bumping along what is the lowest level or close to the lowest levels since the fall of last year. the euro of course with a 112 handle, don't see a lot of volatili volatility. don't see a lot of volatility in the fixed income markets in general or in the u.k. specifically. it's kind of a white noise day. interest rates softened up a little bit friday and they've pretty much sade softayed soft, with important data today. whether it's nonmanufacturing ism, it wasn't a bad number.

it wasn't a great number. it was okay. and especially considering some of its recent strength it wasn't bad. but nothing earth shaking. productivity was unchanged. unchanged now makes us happy. we were expecting a small negative number. so there was no volatility at 8:30 eastern when these data points came up either. tomorrow jolts, nobody is going to pay a whole lot of attention to jolts. i think we remain in this stencil. the equity markets, energy, energy is going to spend a lot of time in the 40s and everybody is going to make a big deal when it gets above 50 but i see a lot of the same trading activity engrained in the charts, don't see it changing any time soon. >> before you go, rick, there's some disagreement about the impact that the u.k. election will have on the british pound. as teresa may's lead has been slipping in the polls here, some feel that a loss by her would be beneficial to the pound because she's been a hard liner on brix

it. then there are those who feel that if she loses it, it kills the economy there and in fact would kill the pound. what are you guys betting on there? >> most traders here are actually looking for upticks in volatility on the pound to sell. they're not looking at whatever happens in this election to alter or give us the kind of horsepower some of the brexit before and aftermath markets gave us. so they're just not looking for a lot of vol. most traders look at her lead shrinking and think most likely it has to do with some of the horrible events, the terrorism that's going on, and there really isn't a lot she's going to be able to do one way or the other and that's the way the traders down here seem to be positioning in front of the ultimate vote. >> we were going to have some more questions here but we have some more coming from the apple convention. so we're going to let you guys go. thank you all, always good to see you. josh lipton, we've got the siri speaker, have we?

>> reporter: well, bill, they just started talking about a new produc product,. they're billing this as a breakthrough home speaker calling home pod. they say this is going to reinvent music. it's an apple designed woofer, an apple designed chip. it will be in his words spatially aware. we're waiting to learn more about what that means. fun to use and coming later this year. we don't have yet pricing for this device. obviously we heard a lot about this in the run-up. maybe this will be a siri enabled smoker to take on amazon. i'm going to get back to listening and bring you more headlines about this product when i get back. guys, back to you. >> thank you, josh. a home pod, you see what they did there? >> just like the ipod but for the home. >> right. >> clever. >> got to get that in there. can't wait to see what it looks likes too. >> 45 minutes to go.

we will bring you much more as we learn out of that apple conference. the dow is hugging that 21,000 mark. s&p down, russell down about five. up next, the latest developments in london raregardg the terror attacks and the impact it could have on the u.k. elections this week. ahead, what president trump's plans to privatize the airline industry mean for airlines and fliers. transportation secretary elaine chao speaks to us on cnbc, first in business worldwide. what the road demands, the gs delivers. experience high performance through high technology. in the lexus gs 350 and gs turbo. experience amazing.

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welcome back. the brutal terror attack in london this weekend could play a pivotal role in thursday's election in the u.k. wilbur frost has more of the story. >> reporter: fiwe have had the details released of two of the three attackers that were shot dead at the scene behind me. khuram shazad butt born in pakistan and rashchid redouansco

had claimed to have been moroccan. all of this playing a big role, security stayed top of the agenda in a way that it didn't really after the manchester attacks two weeks ago. this is probably helping labor leader, jeremy corbin, more than prime minister theresa may of the conservative party. may framing corbin was having been soft on security in the past, but corbin able to point to the fact that this happened on may's watch and that she lowered numbers when she had been home secretary. >> you cannot protect the public on the cheap. the police and security services must get the resources they need, not 20,000 police cuts. >> reporter: bottom line, two more polls out over the course of the day. they all show momentum for jeremy corbin, but every single poll still has theresa may in

the lead. bringing that all together, the ft poll of polls shows that the conservative lead has stiffed over the course of the day from two points to nine points. >> is the labor party going to claim that they're going to invest more in police presence? do they stand for taking a tougher line in that regard? >> well, there's absolutely no doubt that over the course of, say, the last five years the rhetoric has been toughest from tre theresa may against anti-terror, particularly shoot to kill is something that he's opposed in the past but slightly changing his tune on. in terms of number of policemen, labor wanted to increase it by 10,000. so he has a clear argument on

that fact. of course the conservatives in the past have argued how is he going to pay for that. but that's less of an issue today in terms of paying for it. so there is some ground for jeremy corbin to work on it. the debate is now which way do voters believe. >> will fred, thank you very much. will fred frost in london. in theresa may does lose the election on thursday, the british pound will take a tumble. >> independence you're jp morgan. >> or maybe it will rally. >> how do you think the markets respond to the election? >> the last several months the pound has strengthened. it's been a combination not only of softer data but i think the realization that there's no debate between the soft exit and hard brexit. it's going to be hard. the u.k. is claiming we can

negotiate from a better position of strength but really it's not in the eu's interest to take it easy. they're not doing it to punish the u.k. but they don't want to make it easy for any country to pull out. this debate is kind of moot. whoever wins or doesn't win, you have to struggle with brexit. the implications are still out there and it's all negative to me. >> if theresa may wins on thursday but instead of having a larger number of people backing her, she has a much more fractious one? >> i think it will be negative for the market. >> what happens to the u.k. economy? >> it would remove any shred of hints that maybe we could get a soft brexit. again, i still think this is going to be hard no matter what but there's an illusion that's propagated by may and her group that we can negotiate something better. if he's in a weakened position, the markets will perceive that

as being less likely. >> and there's the impact on the economy, is it inflationary in the u.k., how do you assess that? >> weaker currency would feed into inflation but then you've got the trade flows and trade barriers that's going to hurt the economy. it's a mixed bag. you have to talk about slow growth, higher inflation, a good combination. >> are there any outcomes that would point towards a firmer pound? >> at this point i think the dye is cast. i've seen people say maybe if labor wins we can somehow reverse this. that seems like a real long shot. that would be the only way to come out of this. >> always good to see you. >> thanks for having me. let's get back to josh lipton for more details on this apple home pod as they're calling it. josh? >> well, bill, now we do have some new details about shipping

for this new device, home pod. it is coming later this year in december. price, the cost will be $349. it will come in two colors apparently, white and space gray. you are going to talk to this home speaker with siri. that's of course apple's voice-activated digital assistant. you can use that speaker to not only listen to music but also check news and messengers and calendars. apple moving it to this space where amazon and google already play. amazon with echo has about 70% of this market. it benefitted from first mover advantage and a big predistribution platform. we talk to tech analysts. they say apple could have an advantage in this space as well. it has 500 retail stores around the world and obviously a big marketing budget, not to mention a huge global install base 1 billion iphones and counting. i'm going to keep listening to the keynote and get you more

headlines. >> josh, i think it's amazon who's about to roll out one with video, with a screen. if you are able to offer people that, especially in a transactional environment where i can point and click on the product that i want to order or carry out other functions, apple is not going to be able to offer that. >> reporter: i'm sorry, you were breaking up a little. could you repeat that? >> i was saying it looks like this home pod does not have a screen, does not have video, correct? >> which alexa is going to have at the end of this month. >> reporter: correct. it does not look to have those features, you're right. the question is are there enough apple fans out there who would still be interested in a device where i could control music and check my messages and do it all hands-free. are there enough of those people interested and apple can stay in its own ecosystem. that's a big part of this. it doesn't want people moving to amazon and google will find out how many people will be

interested in that technology. >> you have the alexa, bill? >> yes. >> a home pod, would you try it out? >> i'm happy with what i have. as i've mentioned to you, i use it basically as a music player. that's my record player, as we used to call them. >> what about you? >> i don't have any of them yet. if they can expand the market -- i'll tell you what, i'm a little skeptical of the siri voice technology. i don't have a great experience with it on my phone. >> i'm always yelling at siri, can't you under me. >> exactly. he's our technology expert. >> we'll get you a raise on that one. we're going to take a quick break and get more details on the -- is that hollow? could you put a bouquet of flowers in there? >> that's not a bad idea. >> looks like a flower pot. the dow is down nine points as we head towards the close.

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the dow down 8 points. joining me on the floor of the new york stock exchange is matt chezlan. we're back in that mode where the markets are not responding the way you might think they

would to some geopolitical events over the weekend. >> i'm shocked we're not seeing it, especially since it's the second occurrence in such a close time frame. everyone has been calling this market overvalued. everyone is expecting geopolitical news to be the impetus for selloff. we're not getting it. >> i'm not just thinking of the attack in london but also this diplomatic break between the various arab states breaking with qatar. >> that's sector related. oil is suffering from this. now that we're finally getting over maybe this isn't the cartel that's had the power that they've had in the past, the u.s. is taking up a lot of that demand and supply, it's a good thing for the world but maybe they're finally showing some ability to defend themselves. >> do you think they're waltiit for the election on thursday? >> i guess so. we're going to have liquidity events throughout june and every event could be one of them. >> the meeting, comey testimony.

>> especially the rebalances. so you have plenty of time to position the portfolio. >> time now for a cnbc update. >> here's what's happening at this hour. white house deputy press secretary sarah huckabee sanders says president trump will not invoke executive privilege to attempt to block former fbi director james comey from testifying before congress on thursday. this, she says, is in order to facilitate a swift and thorough examination of the facts. secretary of affairs says the va and the defense department will adopt the same system. this is to make health care better for the country's veterans. >> as you know, the health and safety of our veterans is our top priority. and having a complete and accurate comprehensive medical record is critical to the health of our veterans and to the safety of our veterans. >> meantime, canadian prime

minister justin trudeau showing off his kayaking skills at an event to recognize world environment day. he carried his own kayak as you saw there and paddled away. a bit later he was talking to reporters and he said countries cannot walk away from the reality of climate change. that's the news update this hour. i'll send it back down to you, kelly. >> thank you very much, sue. we'll see you later. coming up, privatizing air traffic control. we have secretary of transportation elaine chao here to discuss the president's plans and a first on cnbc interview. and bloomberg -- blue bird bio stock is up today. we'll talk to the company's ceo about that move. that's next. e. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list.

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it is the world's biggest cancer research meeting, the american society of clinical oncology conference under way in chicago right now. blue bird bio stock is popping on the back of its results for a blood cancer treatment it's working on. meg temperaturrell is at the conference. >> joining us is ceo nick leschly. thanks for being here. >> thank you for having me. >> you have exciting data that's among a group of companies

working on a new way of targeting cancer. tell us about that. >> this is very exciting data in the context stock. we're trying to harness the immune system to attack the cancer. the data is actually going after a blood cancer. what we've done is find a way to target your own immune system by taking cells outside your body, using technology to harness and direct it. once we put it back into your body to attack the cancer. we've gone after patients who are terribly sick. they've tried everything in the book and sort of at the end of the line. those patients have had an incredible response. it's very rare in our business that you get a chance to see where you try something like this and 100% of the time you're seeing a positive response. these are patients their thinking about how to transition and in this case you can give them a totally different lease on life. that at the end of the day is a really big deal and exciting.

>> there are a lot of treatment options for multiple myeloma but still it's not a disease that's been cured. there's still a need. tell us about that need and where your treatment will hopefully fit in there. >> so we work with one of our partners and they've been a big part of changing the landscape for multiple myeloma over the last decade with multiple drugs that have made a big difference. even as you get through all those drugs, unfortunately, generally speaking, the cancer does come back. once it does come back, we're talking thousands of patients, you have a shortened life span on the order of six to eight months. those are the patients that we've started with where you're sort of saying there the expectation is quite low, unfortunately, for being able to do something important at that point in their disease. that's why it's so exciting and impressive data to have the investigators be able to provide something for these patients that's having them respond and now we're out past a year in some of these patients. that's very significant at this point. >> in this technology from other companies working in this space

in other cancers, we have seen some safety concerns. what have you seen in your data about the side effects of this treatment? >> great question and very important question. when you treat any cancer, anything, you always want to balance the benefit with the safety concerns. in our case, we've seen very limited toxicity. that's sort of an unusual thing with the type of treatment we have. the immune system is -- when you rev up the immune system it can have other consequences. in our case we've seen a very manageable safety profile for the patients. as you're dealing with patients who are quite frail and doctors are decided what to use and not to use, they have to consider the safety side. we've seen a very modest profile and that excites us as we think about where can you treat the patients, not only the ones i've been talking about but maybe think about treating patients earlier in their disease and the safety profile there becomes a very important question. that's another forward looking question that we look forward to addressing. >> we look forward to talking with you about it down the line. thanks for being here. bill and kelly, back to you

guys. >> good stuff, thank you guys. that was ceo nick leschly. 20 minutes to go into that session. the dow is down about seven points right now. small declines across the major averages after a record-setting week there, especially on friday with some of those new highs taking a bit of a pause. we'll go back to the apple developer's conference and talk to one shareholder who says apple is one of the market's cheaper stocks. president trump has moved to privatize air traffic control. we'll talk to his transportation secretary, elaine chao, about what companies will be part of this new plan coming up. it's all yours. wow! record time. ♪ at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. ♪

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the market down 12 points right now, industrial average. hollywood has wonder woman now, but we still have the dynamic d duo of zach and block. joseph zach and michael block. good to see you guys. we've been talking about what you believe should happen away from growth to value but growth is still leading the day, michael. >> every day we wake up and there's an exciting new story.

i see some of the other brokers come out and they bowl the same stocks. the same semiconductor stocks, big u.s. tech names. over and over again people are buying the same stocks. >> they're going with what works. >> it's called momentum and it keeps going and going until it stops. it hasn't stopped yet. but i've started to see signs of that today. meanwhile, energy started a rally and it was very encouraging to see. >> you're watching the administration. it's infrastructure week. there's announcements about air traffic control. we could get more about energy infrastructure next week. do you think that could be a catalyst again? >> i think the policy decisions in washington are very market l impactful. yes, energy is in the sights of those organizations. i almost said something else. the point is that those policies are being watched by everyone on wall street. >> but you still want to lean toward those out of some of our

slightly contrarian and slightly out of favor. some are more desperately out of favor. but in this market it's getting more difficult to find the neglected names that still have either a balance sheet that justifies an investment or maybe they're over capitalized in this case. as michael said, technology still does draw our attention because that's where the earnings are growing and that's where people are spending money. >> what's a name like charles schwab doing on your list? >> generally we stay away from financials but charles sha rachs an ideal asset manager. if you're an investment manager with under $1 billion you probably want to be under their roof for compliance and trading. interest rates go up, they're move higher. >> you think we'll go back to energy at some point? >> i do.

we had this news about qatar and its neighbors and yet the stocks had an initial sell this morning and they started holding up. we joke about wonder woman, batman and robin with zach and bla block. i was thinking about chasing the storm troopers. that's what zach and i are doing. they're on the run, we got them. >> you don't feel like you're grasping at strausws? >> no. i'm going to watch "star wars" later. >> the market is worried about a glut. you've got the u.s. frackers who are pumping as fast as they can. what's going to bring the price of oil back? >> first of all, in terms of stock selection, you want to think about high quality names. i personally like the higher quality large cap u.s. oil service names. smaller names could be acquisition candidates for

someone who wants to grow ac acreage in certain areas. we're going to hear more from the trump administration. infrastructure is going to increase energy demand. if you believe in that you believe what zee said when he hosted world business leaders a few weeks ago. if you like industrials, certainly you're going to like energy and that supply demand is going to fix itself. >> i want to come back to your pick for advanced auto parts. carl icahn is trying to knit together a national player in that space, plus we know the challenges. >> it is out of favor. we think that changes in management will help that company. they've done a lot of things incorrectly. they're under threat from everybody from amazon to auto zone to o'reilly parts. if you walk into one of their stores, they need to be refurbished but the price reflects that desperate anature. regard to energy you have to be very careful because there are

companies that destroy capital and they're not going to be good for shareholder value over that period of time. we think you have to be very cautious, regardless of where the price of energy moves. personally for our firm we think it should be around $60 before you could be looking at companies that are going to make money in a confident way. >> you would get in earlier than that? that's what makes a market. advanced auto parts, a specialty retailer but retail itself is just suffering mightily. are you looking at that as a group yet? >> we have gone over retail with a fine tooth comb and found lots of carnage. it's hard to fight amazon no matter what business you're in. i think i mentioned last time you can get a suit on amazon. you can buy anything that you want. auto parts would be one of those areas that continues to be vulnerable, but it is such a massive shift in the retail business that it's hard to judge right now, and it's hard to judge real estate. how many people are going back to malls to shop and the generational shift to the millennials, how do they buy

their clothing. >> let's use the big box retailers as an example. they've been among the hardest hit lately. are they going out of business? >> i don't think they're going out of business but they'll have fewer stores going forward and they'll be in premiere spots. so maybe you're in the affluent sections of suburbia, maybe inner cities. but some of those retailers became overstored, so you walk into any town in the u.s. and see the same five or six franchises. that's got to change. just use barnes around noble as an example. there are a few left. >> don't break my heart. >> case in point, dollar general, they reported last week, expectations were low. they gave numbers that seemed all right. stock has skyrocketed. it has a lot to do with positioning, people leaving it for dead. maybe there are certain things driving traffic that people should think about. there are stories like that. joe mentioned aap. stories like that, exciting time

to pick stocks. >> speaking of exciting, so ends another exciting episode of zach and block. we could rename it value verse growth. we love to hear from you, believe it or not. be sure to follow closing bell on social media. send us an e-mail. there's all the ways you can contact us. >> ten minutes to go. dow down 13 points, s&p down two. coming up, transportation secretary elaine chao will join us to detail president trump's plan to privatize the nation's air traffic control system. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there.

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market showing the sell side. the major averages are backing away from the unchanged level. the dow now down about 16 points. . apple making some big product announcements at the worldwide developer's conference in san jose. they've unveiled the new apple home pod. the competition for amazon's alexa. josh lipton joins us now with more details.

we saw the picture. can you tell how big it is? >> reporter: i have yet to actually see it for myself, bill. i saw only what apple's phil shiller was presenting on stage. i believe he said it was fairly small, under seven inches i think he said. i don't believe we got a weight on that yet. in terms of some of the specks it was interesting. i think he said it would support six mics. i think part of the reason that's interesting is when you talk to tech analysts they thought if there was a device like this, it would be an interesting test for siri and i heard you guys talking about earlier. siri has been confined to smaller devices like your phone for example, that means fewer and smaller mics. it could be interesting when siri comes to a device like this which is relatively bigger and the opportunity to have more mics and larger mics. that's so critical for voice recognition and translation. we'll hopefully get a gauge pretty soon from analysts about how well exactly it works.

>> josh, are we pretty much wrapping things up now? we were waiting for this speaker to be unveiled, and now we have it. now we have the details. >> reporter: you're breaking up a little. i think you asked about the home pod details? >> yeah, so that we have the major announcement -- >> we've got -- i mean you've got the update on the operating system. you've got some of the gadgets they're going to use on the apple watch, the venmo-like payment system for apple pay. other things, plus now this home speaker. so this is what we are getting in terms of hardware and software introductions from apple today. is that it? >> reporter: yeah, listen, i think that the job of apple's executives today was when you saw apple's tim cook or phil shiller or craig on stage, their mission today was these 5,300 developers behind me was to try

and excite these developers and try to win them over, get them excited about developing apps for their services and their products. a big way to do that is to do these updates. i saw that with ios 11. i think the big headline will be that peer to peer payment service which does seem to be a direct assault here on similar services from square and paypal. we saw updates as well to the mac os and new hardware updates to that lineup as well. i was impressed by how much time they spent on the mac exactly, not just giving detail about the new mac os but that lineup. they're truly saying, listen, this is a place where we want to keep competing, a product that continues to represent about 10% of our total revenue. >> thanks, josh. see you later. josh lipton at the wwdc as they call it. we'll take a break. the dow down 15. got the closing count in just a moment here. >> make sure this thing is on. it's hard to hear.

after the bell, british prime minister theresa may is taking aim at silicon valley after another terrorist attack hits the u.k. we're going to talk to our government's first ctr about whether tech is doing enough to stop terror. you're watching cnbc, first in business worldwide. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.

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heading into the close, about 90 seconds left here. bob is with me on the floor of the new york stock exchange as we pull back ever further from last week's record highs. the s&p town three poindown thr. pretty quiet. there's today s&p. most of the action before noon and then afterwards we just went sideways. two things, two stocks are now above, they've joined the $1,000 club, amazon and alphabet. alphabet joining them today. there you are. how nice for them. >> we had a bet on that last week, didn't we? >> i was going to show oil which did not pop as some people thought it might have with this breaking off of diplomatic relations between qatar and some of the arab states over there. that's still down 47. if you want to look at the vix. >> the vix is below ten. we were trying to figure out how many times that's ever happened.

i think there's only 14, 15 times the vix closed below ten. and on oil, many new lows in oil stocks today. no rally at all. >> is it the calm before the storm. very busy week coming up. stay tuned. we'll talk about that as we look ahead. and secretary elaine chao will join us as well on the second hour. see you tomorrow, kelly. >> thank you, wibill. after a record breaking week on wall street, today the dow dropping 20 points on the bell. we had slight declines throughout the day but they did intense by a little bit on the close for a drop of about a tenth of a percent. that's true for the s&p as well. as for the nasdaq, the drop a little more than that, 6295 and change and the small cap

russells today at a close of 1396. the russell not to take out their prior record highs that were set this year. in the wake of the london bridge attack this weekend, facebook says it wants to be a hostile environment for terrorists. we'll talk about silicon valley's role in combatting terrorism with former chief technology officer of the united states, anearby chopra. we'll join us later this hour. joining us, michael, sarah and liz. there's a lot of factors you could point out. the term you've used about the irk aruss rally. how do you think? >> the resilience of the market as people perceive it to be basically impervious to a lot of headlines you might think would be negative, i think it's fed on

itself a little bit. i've rarely seen a market that re-prices higher, gets to a new record level and then kind of sits there. we've got very small shallow unsatisfying pullbacks and i think people are in that mode. until the credit markets sell off let's say or until he get some reason like earnings or visions going down as opposed to staying strong as they are right now, it's hard to see people making any sudden moves. it might be another one of these little rotations that we've had a few times. a real news vacuum for a couple days we're going to be dealing with before thursday. >> sarah, there's a lot of focus on that event. that might affect how we're trading but as we know from a broader perspective we've had so many political events, terror attacks, so many issues out of the trump administration to deal with. against that back drop, how are you guys investing? >> we're looking for situations where you have something that's either something going on like you're doing some restructuring. we're in areas that we think are going to grow regardless like

defense unfortunately. and we're looking for places that we think that whatever the backdrop is you have some positives going forward because either you're restructuring or your end markets are picking up. obviously we're looking for dividends as well because we're dividend investors. >> what are some examples? we're showing a few companies that you like. what are some of the others? >> stora enso are changing a lot of their profiles. we own upm which is doing something similar in paper. those are the kind of things that we look for. on the defense base we think that the contractors and some of the i.t. providers are going to do fairly well going forward. >> more reads on the u.s. economy. they were okay. the productivity number was revised up to zero. the services data was a little weak but still at reasonably high levels. any clouds there in terms of the

economic environment? >> i don't think so. i think we've been an economy that really is sort of one step forward, maybe a quarter step back. we stay in this slow and steady mode, which obviously is not necessarily a bad thing for the economy. although you just mentioned and we're all talking about the heightened political uncertainty, actually economic uncertainty is fairly low and i think that's one of the reasons why volatility has been low. we haven't really wavered that much off of this 2% new normal rate of growth really this entire expansion which again is not a bad environment for the establishing. >> -- stock market. >> low and slow has been the mode for a number of years. i've had a lot of focus on the ten-year treasury yield on why that yield has been sticky at the lower end of its range. half of all days have been above the level, half below. there's nothing magic about this level. that's been an environment where the stock market is compounded

15% a year, not saying it could be that way forever. >> bryan reynolds had a great note about this on friday where he was saying if you look at the drop in yields since they were talking about the ten-year, largely it's tracked to the drop in oil prices, it's inflationary. look what's happening in the junk bond market where yeeltds were down 5.5%. credit issuance has been extremely strong. none of those signs that would accompany -- certainly nothing we saw early last year when you had more of a panic about china's growth prospects. none of that's playing out here. >> all of those are different ways of saying we have a high liquidity, steady growth environment. those are the kind of moments from which the markets can decline and get a little bit tougher, but there's nothing to say it's going to happen today or tomorrow. that's the issue. >> and also, sarah, big story of course affecting the oil price maybe a little but not dramatically, just what's happening in the middle east with qatar, these other

countries cutting ties with it. i mentioned the price of oil there. i don't know how much that feeds into the narrative that it can't drop further. do you have a view on that or do you think you have to know the specific companies that you really want to get involved with? >> i think that for oil specifically, you do have a supply and demand issue and you have -- and they are trying to work with opec to change that right now. what's going on in the middle east does add a layer of uncertainty but i was also surprised that the oil markets didn't react at all. they're more of an lng exporter but you have the idea that tensions are ratcheting up should normally make oil jump but i think that says that people are looking at the supply side and saying we're not that concerned. >> the dollar which is another factor that drives all of that too, today it was kind of up a little but it's still below 97. this thing is slumped substantially this year and i wonder, especially going into the u.k. election on thursday, however that plays out, where that leaves the dollar and where that leaves the stock market.

>> well, i think the dollar is likely at least in the near term will continue to be in a bit of a range. obviously the move on the down side is to the benefit of exporters but i also think it reflects not so much deterioration in growth here or change of perception about what fed policy is going to be but better growth in many overseas areas. in fact, there's no major economy in recession right now. pmis and leading indicators generally higher outside the u.s., so i think that reflects the potential narrowing of what has been a wide gap in terms of monetary policy here versus the rest of the world and that's been some of the downward pressure on the dollar. >> let's talk for a second about the race to 1,000. both have crossed that mark with amazon and alphabet, the parent company of google of course. amazon got there first. the share price is not exactly apples to apples. yes, it happens to be the price of one share. it's not necessarily that revealing about the rest of these two companies. it's one of these psychological

things that still gets to the heart of this market. >> it does to some degree. i think the folks at alphabet would say we can both be at $1,000. we'll take our $200 billion advantage which is i think what it is right now. alphabet has never split its stock so it seems like a more clean number. i'm sort of on the lookout for these various market indicators that seem like a culmination point. they seem like, okay, we got there. maybe 2500 in the s&p would be there if we got a few more percent higher. that's the idea of this trade that's just going to levitate until we get to some unknown extreme and i don't think we have reached that yet. notwithstanding what these very high priced stocks are doing. also, the average stock right now in the market is $100, meaning that the share price on average has gone up. >> has that affected what you guys invest in at all, sarah? >> for us we look at liquidity. it's less about the stock price than how much the volume trades. if you're trading volume funds

you want to make sure you're not in liquid stocks. we look more at general liquidity. >> we've heard though that actually the higher that price per share gets the more it can affect liquidity, make the price jump around a little more. anything like that coming into play as it becomes more common for these companies to trade at higher levels? >> not that we've noticed so far. i think you've seen decent liquidity across the board. i think the bigger question from a market standpoint is are central banks going to keep supplying a lot of credit because it's been helping the equity markets a lot and also one of the reasons why you're seeing lower interest rates so there's a little bit of tension there. >> liz ann, as we're heading into possibly the next rate hike from the federal reserve and after that report on friday, a little less pricing in of the ones down the road. what do you think is going to happen? >> we think they'll move in june. i think it's a little too early to say what they're going to do in september. i think the inflation data gives them reason to pause a little

bit but some of the underlying job status suggests that they ought to continue to move. since the fed started raising interest rates at the end of 2015, financial conditions have loosened, not tightened. >> great point. guys, thank you very much. coming up, apple after holding it's developer's conference in san jose, the tech giant making big announcements, including unveiling its home pod music speaker. will it sustain its stock this year. plus facebook hoping to become a, quote, hostile environment for terrorists. you can tweet us, facebook us, e-mail us with your thoughts about the show. closing bell at cnbc.com. you're watching ccnbc, first in

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>> hey there, kelly. this is without a doubt the single biggest diplomatic rep tour between these gulf arab countries in the 40 years they've been together in this council. not only will these countries basically be baugh indicating qatar, but this has serious implications. we've heard reports that in doha folks have been stocking up at the grocery store. nobody understands how long this could go loon and what we know qatar hasn't given much ground here. saudi arabia, egypt accusing qatar of basically supporting terrorists and of course this all goes back several years, not just over the last several weeks. this is a very long and storied past between these countries. what we know of course is that saudi arabia has long been trying to put pressure on the qatarys to basically stop their foreign policy. this is a very interventionist

foreign policy and it's going to be interesting going forward if they're going to manage to do that. >> hadley, thank you very much. let's get over to dominic chu. >> as we talk aabout a lot of cancer stuff, this is not cancer related. this is accord da therapeutics that specializes in nervous system disorders. this after the company presented some positive phase three study results of one of the drugs its developing to treat a form of parkinson's disease, specifically a part of parkinson's disease which occurs in off periods for patients, that is the reemergence of certain symptoms of parkinson's disease. the reason why it's important here for them is because accord da shares have lost about half their value over the course of the past 12 months. about 20% just year-to-date so far. according to at least the studies they presented, guys, it

looks like a positive result for one of their drugs and it's helping the stock up by 15% in the after hours trade. back to you guys. >> hopefully it will help parkinson's sufferers. thank you. apple announcing new hardware and software today at its developer's show. let's get back to joshua lipton. >> all new versions of apple's operating systems on the way including ios 11. >> now today, we're going to take the world's best and most advanced mobile operating system and turn it up to 11. >> reporter: now, one big new feature of ios 11, it's going to support peer to peer payment called pay cash. it's similar to companies like paypal and square. as for hardware, apple did

announce new ipads today, a 10.5 inch and 12.9 inch. it's a viewing experience you would typically get on high end tvs. 30% faster, better graphics. starts at $649 and is available to order today. also new numbers on apple music. now 27 million paid subscribers is up from the 20 million that we heard about in early december. there's a new way to listen to that music. apple did unveil a whole new device called home pod, a smart speaker. it will be available later this year in december. it will be siri activated so fans will be able to use that device to ask for music, check messages or news hands-free. kelly, back to you. >> thank you very much. what does it mean for apple investors? joining us is apple shareholder jason ware and paul sagaous.

jason, let me begin with you and from a shareholder point of view what you like about their announcements today. >> the announcement at the worldwide developers conference usually centers around supporting the ecosystem, supporting the stickiness that is the apple base, the user base. there's over a billion iphone devices and the glue that olhol that together is create more exciting use inside of that i can ecosystem. we want to see those things developing out of these conferences that help support that broader investment thesis. >> paul, when you take sort of a 30,000-foot view of where the tech sector is going, some of the capabilities that are being developed, the big five when it comes to artificial intelligence, for you apple is not one of those players, is it? >> it's not. apple is a company with a strong philosophy about the primesy of

the device. it's really about the iphone and everything proceeds from there. well, with other companies developing very powerful services that sit on gigantic hyper scale data centers with access to gigantic data sets and able to do magical things, increasingly it's going to be difficult for apple to sort of keep up. the smartphone market is nearly flat and all the growth is happening at the low end where apple doesn't participate. if you can't sell more devices, how are you going to -- >> i noticed from your notes you said apple might have for example in the realm of scientists who work on artificial intelligence one or a couple of them, whereas companies like google have 10% of all of them. apple has a ton of money. can it just catch up? >> they've been trying to hire people. they made an acquisition of a company up in washington which netted them a high end scientist and they hired the head of ai at

carnegie mellon university. that's two. google has 83 scientists that have been cited in academic literature. they have an enormous brain trust and have been working on these problems for many, many, many years. very difficult to catch up. also, google has all that data from those billions and trillions of as much as from all those people using youtube. apple has decided it doesn't want to collect that data. >> jason, how would you view this concern, obviously apple continues to be able to command a premium for its devices. it hasn't really seen too much slippage in the way of market share, but is apple falling behind in the way of corralling the broader platforms? >> there's a really great question. we heard a year ago when everyone was bearish on apple saying that we've hit peak iphone and it turned out not to be the case. our thinking is with the coming iphone 8 launch coming up and

seeing what is coming out of the developer's conference, the device that has great equity, the device that people still want to own, the device thmarri great services continue to demonstrate that apple has a fantastic user base and it's kofrn continued to fall to the bottom line. it's trading lower than the broader market and s&p tech sector at large. to us that's a pretty good profile. you get a nice dividend and a heck of a buyback program as well. >> apple is entering this voice market with the home pod going against amazon's alexa, will they have success in doing that? if they're willing to say, okay, maybe the primesy of the mobile phone isn't what it was, i thought it was interesting you said that could imply dimmer futures for companies from

snapchat to yelp as well. >> i think the home pod is really going more after sonos than it is going after google home or the amazon echo. it's 150% more expensive than amazon and google products, and the siri, there's been a lot of recent studies that suggest it's really not on par in its capabilities with ai in other products. it can create a great piece of hardware which delivers a beautiful sound, i don't doubt that at all. sew knows had revenues of about $1.5 billion last year. beating sonos, who cares. >> i have a sonos so no hard feelings. anyway, guys, thank you very much. the apple shares down about 1%. for more, jean munser will be on fast money to give his take. if you own a tesla, you

could soon be paying more to insure it. find out why other insures could follow its lead. first, transportation secretary elaine chao joins us to detail president trump's plan to privatize the nation's air traffic control when we come back.

welcome back. president trump today announcing his plans to privatize the nation's air traffic control system. he spoke earlier today about the benefits of such a move.

>> our new plan will dramatically improve america's air traffic control system by turning it over to a self-financing nonprofit organization. this new entity will not need taxpayer money which is very shocking when people hear that. they don't hear that too often. under this new plan, the federal aviation administration will focus firmly on what it does best, safety. >> joining us now in a first on cnbc interview is elaine chao, united states secretary of transportation. welcome. >> thank you. i've heard it mentioned that this might also somehow improve fuel efficiency and things like that for aircraft. how comprehensive a difference do you think this will make to our nation's airline industry? >> it's going to make a lot of difference. this new proposal on the air traffic control system is a cornerstone initiative of the

infrastructure proposal. basically the president's initiative on air traffic control will enhance safety. it will assure access and improve efficiency. basically, as the president has said, the air traffic control system will be moved into a new independent, nonprofit cooperative that will be free from all these government regulations which slow down the procurement of new technologies for our air traffic control system. our air traffic control system is the best in the world and we want to maintain it that way. that means that we've got to keep abreast of new technologies, and we want to make sure that the air traffic control system has access to the most up to date, modern technologies. >> and this of course kicking off a week that will be spent focusing on our infrastructure needs. are you guys going to look for putting the funding or financing

in place for projects first, or should we expect that every day this week for example we'll hear about a project for bridges or highways or airports or those sorts of tangible things, or are you going to try to get the public and private partnerships together to fund the needs that we do have first? >> you've certainly mentioned a mouthful. basically we started off with infrastructure week with the announcement of the movement of the air traffic control system into a nonprofit, newly independent co-op that will be self-sustaining, self-financing. there will be a transition period of three years at least, and it will be done very deliberately and carefully. for air traffic controllers, they're just going to be -- it will be the same for them. they'll end one day, start the next day, and the new system will be there.

nothing will be moved. it's a technological advances that we are addressing because right now air traffic control being part of the federal government is being hampered by the lengthy government procurement rules which are delaying the i don't knon set a acceptance and absorption of new technology. with the new pace, rapid pace of technology, we want to make sure that our air traffic control system is able to take the new technologies really quickly and adopt them and modernize the system so that it's sustainable and it will continue to be the number one air traffic control system in the world. >> madam secretary, you're in detroit and have just spoken to an automotive conference as well, so should we expect announcements on autonomous cars and information sharing between cars and our infrastructure to be part of your announcements

this week or your plans going forward? >> well, on thursday and friday we will continue with the infrastructure proposals that hinge upon transportation. on tuesday and wednesday, there will be other parts of the infrastructure proposal that will be announced by other departments. there are 16 different federal agencies that are involved in the task force that is putting together this infrastructure project, and as mentioned, the president has thought about about a trillion dollars over ten years, and there will be a federal government component and there will also be an opportunity for the private sector to participate in financing public infrastructure as well. in some states the private sector is discriminated against and disallowed from participating in the financing of public infrastructure. so stay tuned. tuesday, wednesday, thursday,

friday will be very exciting days for infrastructure improvements in our country. >> all right, madam secretary, elaine chao, thank you for joining us today. >> thank you. >> beginning of a very busy week on that front. time for a cnbc news update. >> here's what's happening at this hour. president trump says a move to modernize electronic health records is a big win for the nation's veterans. this after va secretary david shulkin announced that the va and the department of defense will adopt the same electronic system for their records. >> this is one of the biggest wins for our veterans in decades and i congratulate secretary shulkin for making this very, very important decision. >> opening statements began in bill cosby's sexual assault trial. the prosecution argues that cosby used his power and fame to violate his accuser, andrea con steady.

the defense made the case that she and cosby had a romantic relationship. look at this video, a good samaritan spotted a vehicle rolling through a spotlight and into a busy intersection and saved the day by jumping into the car's passenger seat basically through the window. he stops the car, as you can see there. the driver was actually having a seizure. after jumping into the vehicle, randy tom p kins put the car into park and the police officers said he did yeoman's duty. back to you. >> i had to watch that closely to figure out what was happening there. incredible stuff. i'm glad they caught it. >> yep. >> thank you, sue. >> you got it. british prime minister theresa may says internet companies create a safe space for terrorists. next up, aneesh chopra looks at what silicon valley is doing to crack down on terror.

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welcome back. it was a down session on wall street but just a small one. the dow dropped 22 points on the bell. the s&p down just three. the nasdaq down ten. the russell down about nine

after setting record highs last week. in the wake of this week's terror attack, british prime minister teresa may is looking to prevent the spread of terror. >> we cannot allow this ideology, the safe space it needs to breed. yet, that is precisely what the internet and the big companies that provide internet-based services provide. we need to work with allied democratic governments to reach international agreements that regulate cyber space to prevent the spread of extremist and terrorism planning and we need to do everything we can at home to reduce the risk of extremism online. >> let's get more from julia bore sten in silicon valley. >> facebook, twitter and youtube are all working to pull down extremist content and notify law enforcement of what they're

finding. this is not only about battling the spread of terrorism but also about protecting their users and advertisers and their platforms. facebook which just last month hired 3,000 additional employees to help stop abuse of content saying, quote, we want facebook to be a hostile environment for terrorists. we work aggressively to remove terrorist content from our platform as soon as we become aware of it. twitter saying, quote, terrorist content has no place on twitter. we continue to expand the use of technology as part of a systematic approach to removing this type of content. google also addressed those concerns saying, quote, we are committed to working in partnership with the government and ngos to tackle these challenging and complex problems and share the government's commitment to ensuring terrorists do not have a voice online. now, this attack in london is just the latest terror attack to draw scrutiny of the internet giants. there are lawsuits against facebook, twitter and google from families of victims of

other attacks in paris, brussels as well as the one here in san bernardino. guys, back to you. >> julia, thank you. julia boorstin. for more on silicon valley's role, let's bring in aneesh chop chopra, the first technology officer under president obama. thanks for joining us. >> thanks for having me. >> do you expect there to be moves on the front of internet regulation as a result of all this? >> i sure hope not. i hope we continue the multi-stakeholder commitment we've made to maintain a free and open internet. a lot of countries around the world, especially in europe, joined with the united states back in 2011 and endorsed a set of internet policy principles that said we're going to work on these issues in a multi-stakeholder fashion, and that really keeps us away from concerns that we might have overreach on the part of governments what might seem like a reasonable idea in the wake of these tragedies have unintended consequences if they are rolled

out, not only in terms of what it actually means or how we maintain openness but also what it means for how other countries might respond. >> what do you mean by a multi-stakeholder operation? who are all of those stakeholders and how do they come up with some sort of rules or guidelines or agreement? >> the great news is that's how we operate in the international economy today. there are often industry coalitions and standards that emer emerge. you can imagine on some of the more difficult topics like the potential for the propagation of child pornography for example, a very difficult subject, there is no specific kind of top down framework. the industry has come together to come up with a method by which they can share that information on whether there's flagged content that is seen at risk in all the major properties on the internet known to remove said property. so we've tried to work on a number of topics this way, protecting increasing privacy protection for individuals, strengthening our cyber security

posture, and it's all about having stakeholders from the kind of public sector if you will but also the tech companies and those who represent the community all coming around the table to find solutions. >> when you have a company like facebook saying that it hopes to be a hostile environment for terrorism and they commit to trying to maybe detect patterns of communication, things like that, you say that basically that there are these standards that are on the table but what commitment does facebook have in terms of being transparent about how it is going about trying to detect some of this activity? >> that's part of the conversation. most of these social media platforms have terms of service that reflect what it is that a user is allow today do or not allowed to do on their platform. some of these areas might violate those terms of service and they try to create more transparency. if you recall in the wake of

piracy on music, youtube said we're going to create a more transparent system where we see something is potentially a pirated piece of music, we will allow the rights holders to essentially match whether the content in question meets a particular standard. so there's more transparency to see whether or not you want to take it down or you want to do something else. so the good news is a multi-stakeholder approach tries to solve these issues in a way that balances all of these competing interests. but once we cross the line, if we move to the point where government is dictating what can or cannot be seen on the internet, the unintended consequences are potentially dramatic, in addition to questioning more of our security posture because it will force some of these -- >> aneesh, are you sure you worked for the obama administration? >> that was our approach, internation internet policy principles. secretary hillary clinton led the u.s. international strategy for cyber space and at the center of it was a commitment, the multi-stakeholder

collaboration, as a way to maintain a free and open internet. we have countries around the world that censor american content and block access to what it's like in democracy. >> also i work in a business that knows there's a difference between censoring content and editing it and developing a whole process for making sure that a news-gathering organization upholds various principles in the public interest, making sure that all those things are put first. i think there's somewhere in the middle here where perhaps these content companies are going to have to explore where they need to go. but thank you for joining us, aneesh. >> thanks for having me. >> aneesh chopra, former cto for the george w. bush administration. kidding. coming up, two big investors taking interest in the auto industry. carl icahn looking to replace mr. goodwrench as your friendly neighborhood auto repairman. we'll have all those details next. think again.

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same issue? >> it depends if they get mass dpis bugs. in other words, if they have sales of the model three where you're looking at sales somewhere around maybe 100,000 next year, 150,000, eventually is the some point people will say, okay, what's happening with the insurance cost for these vehicles. aaa is just wrone insurer and tesla said this analysis is severely flaw and not reflective of reality. among other things, it compares model s and x to cars that are not remotely peers, including even a volvo station wagon. be that as it may, if you're a manufacturer, kelly, you do not want to be in a position where people say, getting that car fixed is a pain in the neck and very costly. again, this is just one insurer. let's see if we see this with other insurers as well. if that's the case, as more teslas go on the road, it could be an issue if people say it's too costly to get fixed.

>> mike, we know right now, if you can afford a model s or x, you can afford to pay the insurance but once it goes mass market it could be a different story. >> as the owner of a volvo station wagon i'm trying not to be offended by tesla's statement. you also have to have a critical mass of cars on the road to kind of know what statistically it's going to end up being. so maybe there's kind of them being a limited number of high end cars. >> phil, while we have you, how about these reports i briefly mentioned but that carl icahn is looking to acquire thousands of auto repair shops with the idea that they will buy products from his distributor instead of national chains and maybe build up this national brand that could service fleets as we move in that direction. >> people would sit there and say, wow, this makes a lot of sense. last week they bought 250 of these precision auto care

centers. they'll have more than 1,000 repair shops as part of their nationwide repair business under the icahn automotive group. it makes sense to say, look, if we can sell parts, we have federal mobile and auto plus distribution, can't we say to people, hey, come buy your parts from us, we'll give it to you at a lower rate than if you've got to go to auto zone or somebody else for your commercial parts. keep in mind, there are more than a quarter million auto repair facilities in the united states. now, that's everything from your dealership down to the place where you get your oil changed to the mom and pop shop that might be out there in certain neighborhoods. it's going to be really hard for him to get mass scale so that he's driving a lot of business out, but it is an interesting play and one that's certainly worth watching. >> yeah, icahn enterprise shares are down by one and a quarter percent. bill, thank you. up next, is there any beef to a lawsuit by meat processor

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welcome back. it is time for our fast take. we begin with the nfl. first it allows touchdown celebrations. now they're letting hard liquor advertised during games again, at least for this season. the rules are still pretty strict. it's not like they need the ad money, right? >> they do need ad money. it's been a process of liquor getting back on the teams. they started getting them back about five years ago, and would only run them after 11:00 p.m.

for a while, so it seems like it's the nfl saying maybe there's an artificial distinction between beer ads that run constantly, and hard liquor. i hate to say pink slime, that's the source of a lawsuit going to trial today. the company's use of that term defamed beef products. it's a big free speech case. if they win, imagine what other companies will maybe want to do. >> it's pretty fast. it was an effective report that stuck in people's heads. what fascinates me, the use of the pejorative term to describe a business's product. so my question is, if abc loses this case, can they go back to somebody and call what they do fake news. which is a pejorative term for their product. where do you draw the line. >> that's very good. "the new york times" claimed this weekend that by wall street's metric, its share price, marisa meyer earned every

penny of the $900,000 a week she earned during her five years at yahoo!. is that a fair point? >> it's one metric to determine whether any ceo gets paid correctly. i'll mention, i worked there for three years, i got there shortly after marisa mayor was hired. she was a ben fish of the share price going up largely because alibaba was going up in value. if you remember when she was hired, she was a talent out of google. it's almost like an athlete getting paid a huge contract for the performance they did before they got to that team. so on some level that was the cost to get her. and also, when she was hired, it was perceived that the value of the operating business was negative. now they're getting several billion for that operating business. >> a couple of bucks a share. maple syrup -- >> the canadian preserves. >> some breaking news to get to. courtn courtney, what's happening

there? >> drexler is no longer the ceo of j. crew. they hired the former president of west elm to take over the top spot. this is just another move in j. crew's executive ranks. remember, janet lyons stepped down, probably more likely pushed out, in april. she had really been in charge of j. crew's look and design for some time. mickey drexler has been ceo for a number of years since coming over from the gap. he will remain on as chairman. mr. brett will take over the ceo position in july. there's a lot going on here. kelly, we know j. crew also has a lot of debt on its books. some looked to j. crew as a potential bankruptcy. not happening as of right now. but there are some warning signs. so there's a decent amount of moves that need to be made here, to move this company back into a growth trajectory. >> courtney, thank you. kind of like a wow, eyebrow raised, and maybe it's not that maybe you wouldn't see it coming, but some of the

self-reflecting comments i think he made in "the wall street journal" not that long ago, we didn't see the technology coming and disrupting the industry the way it has. >> and also, i think he also conceded that they, as a kind of fashion beacon had kind of lost their way, got out of tune with the customer. and that was supposed to basically be, of course, where he's made his name and reputation, two different companies as having his hand on the pulse of those things. >> it's like a great player of going back to the sports analogy, the last one that's not the same as the glory days. >> west elm has been one of the standout performers. we'll see. >> i got a couch from there once and i wasn't pleased. red light or green light, facing gm shareholders in the green light capital chief david einhorn tomorrow.

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shareholders of general motors vote tomorrow on greenlight capital's plan to split up the shock. leslie picker has more. >> hey, kelly. three directors, two classes of shares, and one billionaire investor behind it all, david einhorn. one of the largest proxy battles of the season will come to a

head tomorrow in detroit, as gm's investors are set to vote at the company's annual meeting. einhorn does not frequently engage in proxy battles, but his frustration with gm stock price performance drove him to take more of an active role. other investors share his look at the lagging stock price. proxy advisory firms recommended that shareholders vote against his nominees, and his plan to split gm stock in two. credit rating agencies said his proposal could lead to a credit downgrade, and could unlock as much as $30 billion in value. einhorn has opened a stake in gm for at least six years and now holds up to 3.6% of the company, plus call options. kelly? >> all right, leslie, thank you very much. michael, we have that coming up tomorrow. sounds like a lot of people waiting for thursday. >> without a doubt. the next couple of days it will be a little bit of, you know,

bide our time market-wise right here. i do think this vote will be interesting, because i think the burp is pretty high. not just because of the complexity of what einhorn's proposing, but the fact that gm stock has outperformed ford handily for one, two, five years. >> michael, thank you. we'll see you tomorrow bright and early. that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site. tonight on fast, something that's happening in the currency market that could spell major trouble for stocks. the chart master is here to tell us what he is seeing. plus, thin is in. the vice stocks from alcohol, the cigarette, casinos all soaring. we'll break it down. later, shares of snap getting hit today. things could be about to get a lot worse. we'll explain why. but first, we start off with apple. the headlines are coming