they are in the same mall in a lot of places. it hurt dick's when sports authority came down. this is in the mall, one place to go, children's place, remarkable numbers >> you have 15 seconds and you said pay attention to the afternoon to see where >> it's too early watching video this it afternoon. just be careful because a lot of these guys who bought at the bottom really do want to ring the register later in the day. >> thanks for being here >> "power" starts now. >> all right, scott, thank you very much. that's right we'll talk more about tech the apple of investors' eyes, apple, amazon, google, facebook all down again but what you want to know is, is this just a discount on investments you need to own we'll find out if tech does keep selling off many think this one sector may be the place for your money. we'll name it. and uber under fire. a major management shake-up. the ceo in the balance and a $70 billion valuation on the line as the world's hottest startup ran out of gas i'm brian sullivan and "power

lunch" begins right now. >> i'm melissa lee coming to you from miami it is the tech event of the americas with us on the show today forget walking into a bank, this company is completely disrupting the way consumers now get loans, instant loans. the ceo of green sky is with us. plus our exclusive with the ceo of sprint. we'll weigh in on merger speculation with t-mobile. and personal final guru suze orman will be along as well. let's take a look at the markets this hour. the nasdaq continues to be the story today. right now the tech-heavy index is down about a full percent doing the worst of all three major averages apple is a big reason why. the biggest, down more than a percent more than the next weakest sfok, united health. the stock getting another

downgrade today, the second in a week for unh netflix, microsoft among the big tech laggards on the day ge investors making more than 3.5% today this, of course, after ceo jeff immelt announced he will be stepping down after 16 years at the helm brian? >> sara, good to see you money is flowing out of technology you know that just by looking at our brightly colored screen where is that money going to now? dominic chu knows the answer and he's here. the one-week performance, you are seeing a rotation. we're not going to call it a great one because it's subtle. take a look at this because over the last week the bank stocks, the beaten up financials are up 3% one of the real bright spots in one week also energy stocks we know how badly it's been for them 2% upside there and it's coming out of, as sara and brian mentioned, two of the hardest

hit sectors out of here into the underperformers over the course of the past week the outperformance of the s&p 500 and technology, well, it has been technology all year so far but take a look at the big drop on the right-hand side we he are seeing real weakness on a relative basis. we'll see if that trend continues. the deeper discounts, take a look at some of these stocks they are well below their 52-week high that's bear market so, guys, brian, the technology secotor right now about 16 or 17 of them already so far in correction territory >> you do know the answer, dom chu always money big money advice on what is best

for your investments now joining us are robert and nancy with heartland financial bob, i know we have talked many times in the past, you have been a big fan of amazon. you've seen what's happened. two ways to look at it number one, amazon's run is done you're going to sell or you still like it and, therefore, it's cheaper and you're going to buy more which one might it be? >> i think you have to buy more. i don't necessarily think you have to be a buyer today, but i think you have to wait for this sort of short-term correction to play out i think what you saw is a lot of folks sort of heading for the door once you start to see big money moving to the door, a lot of investors, a lot of self-directed investors also move in that direction and you get this herd mentality. amazon is an expensive stock, no doubt about it >> it always has been. no doubt about it.

sara and i, the same amazon valuation discussion the last 12 years. you called it a mini short-term correction why are you so confident it is a mini short-term correction and not something bigger >> i think it goes even to the government a lot of people were expecting the growth agenda to actually catch a little bit of traction this year. we haven't seen anything of it we've seen the comey, the flynn, the concerns about the trump talking to various people and i think the market is going to come back to growth. i think you're going to see an economy that's just barely moving forward people will look for growth in their portfolio and i think these names represent it amazon definitely represents growth so i think once you start to see a clearing out of the weaker hand you start to see people moving back into these names >> nancy, sit tight. we'll come back. we have breaking news out of washington, d.c., with hampton pearson. hampton? >> reporter: brian, the u.s. appeals court in san francisco

has upheld in large part the ruling that blocked the trump revised executive order restricting travel from six muslim majority countries. this, of course, was the review of the ruling from the hawaii-based federal judge that blocked part of the trump order basically claimed it halted the entry of people from six muslim majority nations and refugees so now the ninth circuit weighed in supporting essentially holding off on that ban. it is expected perhaps at some point that the u.s. supreme court is going to ultimately have to settle the whole question back to you. >> the legal fight will continue hampton pearson, thank you with us now we're having a conversation about the markets with bob and nancy nancy from heartland financial, you've liked these big cap tech names. i think you like alphabet, facebook and microsoft so are you going through some of the wreckage over the last two sessions or too early within just two days to try to figure out whether it's a buying opportunity? >> well, thanks, sara.

we are valuation driven, and i have been on talking about large cap technology for the last year recently saying we are selling our apple to buy more facebook and so if you look at where we are today in valuations compared to 2000 we're nowhere near the lofty levels that we saw back then and i lived through that period or barely lived through it but in addition i was recent ly at the bernstein strategic conference every ceo from consumer staples, discretionary, industrial supply chain, energy, we're talking about technology as the way they were going to improve march gyps and intrees productivity so if we aren't going to get help from washington the solution for gdp growth is technology we like harris corp, texas instruments. we do still like facebook and microsoft. on some pullback i would be happy to buy back some of the apple we've been selling

>> bob, i wanted to ask you about ge, obviously in the news. you have been an owner of this stock. how unhappy of a shareholder have you been and how much does today's new decision, new announcement of the ceo change that if at all >> it's funny because over the last few weeks we've been talking about it in our investment meetings. we've been sticking with it because it is a core name. we do believe in the portfolio that they have it will bring in some change but we realize it's going to take some time. the dividend you are pretty happy with but the overall performance and your total return has been down i think it's going to take some time and i think you're going to probably have to wait until the middle to late next year before you see real changes start to come through i don't think you want to be a buyer of it here i think you have some time back to the growth names, it technology continues to power us forward.

i think also the specialty retail eers, fames like ulta, starbucks. louie will come on probably in about a week or two and will be say iing the same thing, you're going to be profiting long term. by ulta and i think you'll be okay >> nancy, a final quick comment. it is spring it's the season of love. what's the stock that you're in love with now? >> that one threw me, brian. >> that's my job >> we've been adding to stocks like home depot and ve at that on the payment side and we still like the health care space though we recognize it will be volatile we're investors not traders. i agree growth will continue i believe it will be growth at a reasonable price

>> the world according to gart home depot and visa. we love having you on. now to melissa lee who somehow found her way to miami today >> i know. i drew the short straw, didn't i, brian the tech tesell-off we maysee head winds for the broader markets. chief investment strategist at deutsch asset management david, great to have you with us the sell-off we've seen fit into your thesis we will see a summer pullback >> we do expect a summer pullback but we don't expect it to stay down for long. we think technology is a pause that refreshes the valuations that got high, fundamentals are strong we have market expansion most of the big cap tech names took the option expenses into the nongap results, really good quality of earnings. we like tech we have been pointing out that

we want to be cautious in the summer moving from tech to health care as a preferred growth play but we are still steering clear of value. we're very cautious on energy, industrials, and cautious on small cap for the summer >> part of your thesis, david, is that we're not going to see any sort of tax reform until after the august recess and, therefore, you see the summer swoon but also valuations in the overall markets are challenging right now. are there pockets you see challenging because a the lot of people might have said it is one area that had run up too far too fast and what sectors in terms of valuation are challenging right now? >> we expect it in future years, a long lasting cycle i think what you can say is true for tech valuations have gotten demanding but we're not alarmed about it and now we're in a seasonal

period where people are looking to evaluate what the year end upside s. in order for there to be attractive year end upside we need a little bit of a pullback particularly until we see a clear plan for the corporate tax cut. we're not the going to see that until after the august recess. so we think the summer is a time for the market to cool down, consolidate, maybe some of the high-flying on the chin. we think they come back strong and importantly rather than debating just exactly what tech does on every wiggle, we think health care is the opportunity here and we have taken some more cash we've raised cash because we think we haven't seen the full bottom for the summer. >> so there could be more than a 5% pullback, is that what you're saying >> we're expecting the overall s&p to have a 5%, at least, pullback from the highs -- >> at least. >> we expect that. i don't expect tech to go down much further from where we are now. the real risk still sits energy,

industrials, small caps, and i like financials for june we have the fed this week. the it ten-year treasury yield going down we expect to see it lead to dividend hikes the point here is don't back up the truck on value stocks. financials, energy industrials, small caps they have yet to bottom. >> got it. david, appreciate the time melissa, news alert in the bond market. ten-year notes are up for auction. rick san ttelli at the cme what does demand look like, rick >> reporter: it wasn't as good as the three year. yes, this is a double-header today due to the fact the fed most likely will raise rates wednesday. we have $20 billion nine year 11 month. we reopened them the grade was a c, to answer sara directly, an average grade. as you look at the chart hopefully you'll see rates

dropped after the good three year, rising after the not as good ten year. let's go through the internals the yield 2.195. bid side on the wi so you can see it priced out of the box. 2.54 bid to cover. that was pretty good, 66.1 indirects wasn't bad, above average. 5.3 on directs a little light. it gets a c and tomorrow, of course, we will finish $56 billion in supply with 30-year bonds. $12 billion to be exact. sara, back to you. >> that two-day fed meeting. rick, thank you. general electric ceo jeff immelt stepping down after 16 years at the helm a look at the company under his reign and what the company could become without him first, yuber is lucky it's not a public company otherwise its stock would be down 90% according to our next guest. where he thinks that $70 billion company goes from here coming up

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with everything else going on, bitcoin one of the most highly traded assets down more than 10% right now i know you're the currency expert you go to some of the bitcoin exchanges -- i think it's asset class -- they have it down as much as 13%. >> that's after it crossed over 3,000 for the first time ever yesterday and outperformed almost any other asset that you look at so far this year stocks,

bonds, dollar, commodities >> don't pile on because it's been so good this is probably healthy and expected >> impossible to tell what the valuation is it's an alternative sort of technology, a block chain where tech investors expressed in it like fidelity, the japanese government giving a signoff. there's a lot of demand coming from overseas. plenty of reason it could go up. it's highly speculative. there's the bitcoin. >> i heard about that on wide world exchange >> which you watch every morning. you know i didn't do it this morning so i could be fresh for you today. major shake-up at uber chief business officer michael is out on the alleged sexual harassment our deirdre bosa is live the management crisis gets worse and worse. >> reporter: it continues, sara. the next big question is whether the ceo himself takes a

three-month leave of absence emil michael was the right-hand man and uber's chief deal maker. now he's the highest profile exit so far. he announce d his departure in a internal memo to his team saying yesterday was his last day and, quote, it has truly been the experience of the fastest growing company of all time. he has played a crucial role in growth he brought if major funding that helped reach the valuation he has also been attached to some of the startup's biggest controversies and many wondered leading up to this point if he could survive that holder report now we're waiting to hear if he takes a leave of absence and if he does there are very few people who could step in remember that it's not just michael, the 20 plus employees fired because of the internal investigation, these are just some of the other names that have left. this exodus has been going on for months, guys, and there

could be even more to leave tomorrow once that holder report is made public >> all right, deirdre, thank you very much. uber is lucky they have not gone public yet because if they did their stock would probably be dropping like a rock on the recent run of bad headlines. let's bring in the professor of engineering. professor, listen, they are not public but a lot of our viewers may not know they do get valued, fidelity and others will mark up or mark down their internal valuation certificates, the last time this was noted by the journal uber had a valuation of $68 billion making it the most valuable startup in the world. do you expect the next time we see these markups uber will be marked down? >> it depends on who they bring in to lead the company travis has to go he represents everything bad about silicon valley the ford ceo, they had need to

get someone who has experience who can be customer centric and really transform the company at this stage of the company they need an adult running it not the spoiled brats who have been running it so far if they did that, the value could be high again. it's happening at every level of management, the company will be worth less and less. i said as much as 90% less, i made that number up. the value is declining because of all of the changes. >> can i hear your point you get these 20-year-olds who start companies. despite all the missteps, the headlines, all the controversy, did indeed build the private company valuation. it does remind me of google. you remember they said they needed a, quote, adult to run the company as well. is there any analogy here? >> well, they brought eric schmidt in and eric did wonders

for the company and now they have other very senior executives running google. companies have to bring in experienced management that you can have spoiled brats building the first level of technology. once you get your point you need professional management in there. that's why i said we need names like mark field, jeff immelt or from ge. we need people who run billion dollar businesses and who can have the customer focus, transform the company. >> jeff immelt just left as ceo because his stock underperformed during his whole tenure and was the worst performing member. on the valuation, the latest financials that uber put out in the first quarter, revenues grew 18% and losses are narrowing so clearly there's a management issue but why such a sharp

markdown if the financials are getting better and it's unclear what the impact is on consumers who use it >> well, because almost every layer of management has been guted now right to the top the company may not even have a ceo tomorrow if everything goes the way it should go you've had such turmoil over there, such a shake-up that there's no one in charge of the company right now. they have to get over all of this they have to bring the right people in. what they did in bringing in hold er and huffington and so o was very wide. now they need adults to lead the company. that's what will save the value of uber. >> we'll see what that holder report shows they're set to release it to employees tomorrow nice to see you. thank you for weighing in. they don't have a ceo, maybe a coo, a cfo, a cmo -- >> a senior vice president of engineering. >> someone on twitter joked it's an autonomous company.

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welcome back to "power lunch. time now for the good, the bad and the ugly first the good bed, bath and beyond among today's top performers in the s&p. the retailer getting a positive mention in this weekend's baron's.

transdigm, elizabeth warren, the latest to call for an investigation into that company related to how it prices parts when it is a sole supplier to the u.s. government. and then the ugly, ugly day for coherus biosciences. the fda rejecting its version of amgen's drug still ahead on the show, jeff immelt leaving general electric after 16 years is his departure a big chance for the company to transform we'll hit that coming up but first, back to melissa with more on what's coming up from miami. melissa? sara, forget the big banks, from home improvements to cosmetic procedures, how personal loans are made talking 42nd approvals

hi, everyone i'm sue herera here is your cnbc news update

this it hour u.s.-supported kurdish soldiers have begun to attack the isis strong hold in raqqah, syria u.s. helicopters helped move the kurdish and arabic fighters to that region just a few weeks ago. raqqah was seized by isis back in 2014. attorney general jeff sessions to testify before congress tomorrow and he is asking to do so publicly he will testify before the senate intelligence committee as part of the russia investigations into election meddling united pet group is recalling dog chew products sold nationwide the company used a compound that has not been approved for use here in the u.s. it did receive limited reports of pet illnesses and the year's first auction of black densuke watermelon in japan did not disappoint one sold for more than $4,500. another going for more than $3,600 the pricey fruit is a popular gift and known for its shiny black rid and apparently very sweet flavor

i would hope so at $4,500. that's the news update this hour back to you guys >> sue, here's the amazing thing about japan is that we hear every year there's no recession, no growth, the economy is in tatters, they've had five recessions in five years and every story about the most expensive fill in the blank tends to come from japan sold for $6,000, sushi >> they appreciate the finer things >> very well said. >> a $4,500 watermelon is the finer things >> apparently so >> i guess it is it's not even seedless sue, thank you >> hopefully it's seedless >> i saw the girl spitting seeds out. another look at your money the markets right now, they're down the nasdaq is down twice as much as the dow or the s&p. two big e it tfs that might be in your portfolio are also down. that is the qqq and the xlk big technology etfs suffering another day of losses. the xlk has fewer stocks than

the qqq and is more heavily weighted to apple. apple is 11% but still the xlk is down less there's some good news out there. materials, though, briefly hitting an all-time high it's all about fertilizer. mosaic and cf industries, two fertilizer companies, are doing well today more good news for your money as well the run continues for fedex and 3m they are both at lifetime highs. we are also watching shares of ge today rallying almost 4% right now. ceo jeff immelt leaving after 16 years in charge. he was speaking out today. morgan brennan joins us with more on the story here morgan it's been a busy day for ge, shares really soaring today. john flannery, who most recently had led ge's health care segment, will succeed jeff immelt as ceo starting august 1st and then as chairman in 2018 immelt told investors this summer's transition has been in

the making since 2013 meaning it's not due to shareholder pressure but this casts adramatic run for immelt who took the job days before 9/11, then weathered the financial crisis under him ge has completely changed. now in 2001 nearly 50% of profit was ge capital today the industrial businesses account for about 90% of earnings now that's thanks to big divestitures including $260 billion of ge capital assets, also spinning off oil and gas to merge with baker hughes. meantime ge because us a at this point's power business, invested in tech, a platt the form analysts believe will soon pay off. immelt saying today, it's a good time for this kind of transition, that ge is a vastly simplified portfolio with many levers for building margins and more market share and flannery outlying plans to improve the company during a facebook live event. >> no one's happy with the stock price right now or some of the cash pictures that we've had

we know we can be better at those things i want to focus on those things. i'm going to spend -- do what i've done in the health care business, spend a lot of time early on with investors, with customers, with employees, listen i listening, hearing what people think about the company. >> also worth noting contrary to market speculation, ge saying, quote, breakups shouldn't be part of the discussion executives today reaffirming current quarter guidance so shares of ge soaring on this up almost 4% but it's also worth noting that under immelt's tenure the shares are down since 2001 in september. they are down nearly 30% and they have vastly underperfeorme some of their more direct industrial peers it does seem investors are welcoming the news today >> reading the analyst reports it feels like the consensus is he made a lot of big decisions to transform this company, to take them through the financial crisis, and make it an industrial giant the question relate d to timing,

go big on oil and gas, go big on finance, was it too late were these moves done at the right time, selling off our parent company, those sorts of things >> there's been some talk about that i've heard it in the investor community and among analysts today, for example in light of all of this news there's been a lot of questions about cash flow, which has really been under scrutiny whether the company is going to hit its earnings guidance for 2018 not everybody has been looking for. but there's a lot of pieces in play here that have the potential to pay off finally >> 16% of ge's revenues come from oil and gas oil at $45 >> it's going to continue to be a drag for the company >> morgan, thank you morgan brennan as tech rolls over, financials are finding a bid in the last week the s&p bank etf up 6%. so is this breakout in financials what everyone was waiting for? let's bring in the principal at sander o'neill have a little rotation from it

technology into financials is that what's going on, jeff, and do you see this as a lasting move >> i would like nothing better than to tell you financials are break iing out to the up side here i find myself still cautious in the near term. it comes down to your time frame, if you look in the longer term a lot of the things that have kept the market bullish on banks are still in place potentially better gdp growth, rising short-term interest rates, some regulatory tax refor reforms. if you look into 2018, i think you should still be constructive and bullish on banks as you look into the summer a lot of head winds coming from uncertainty. i have trouble seeing that uncertainty be clarified over the next, call it, weeks or months i think financials are kind of appropriately valued here, kind of in a holding pattern. i don't know if it will be time to be jumping in them en masse though to the extent you're looking at them i would stress the universal banks, big banks like citigroup, jpmorgan that's the better place to be

right now. >> you mentioned deregulation as a catalyst because lately it feels like the banks have been slave to whatever is happening in the bond market with the yield curve, and we have seen the ten year stabilize here above 220. isn't that largely what's going to drive the financials, or do you see it changing? >> well, i mean, ideally we see short-term rates going up which we are seeing and the yield curve steepening we're not seeing that. we're seeing short-term rates go up which makes you look at the more asset sensitive names as the banks that have the potential to outperform. some of the names like jpmorgan and bank of america that i mentioned earlier play into that i think the flattening of the yield curve is certainly weighed on the banks year to date. that tends to change and change quickly. forecasting interest rates is a tough way to earn a living picking bank stocks. >> jeff harte, thank you for weighing in on this mini bank rally we've seen the last few

days now back to melissa in miami melissa? all right, thank you very much, sara we are live in miami, a global idea exchange focusing on how technology and innovation are disrupt iing industries and speaking of disruptors, number 17 on cnbc's disruptor list the co-founder and ceo of green sky is here on set with us welcome to the show. you're basically a company that has a $3.6 billion valuation you're not a lender or a bank be, and yet you're disrupting how lending is done. can you tell us about what your company does >> absolutely. thank you for having me. so we work with 17,000 merchant retailers, enabling them using mobile technology the ability to offer instant promotional credit to now over 1.2 million customers and we partner with financial institutions throughout the united states creating a service that works for all of our constituents. >> so you have an investor in your company

l let's bring it down to the exact example. i'm sitting down with a contractor i want to put an addition on my house. i need a loan. and with my phone i can scan my driver's licenslicense, correct >> that's correct. >> and you take it from there. >> we provide the contractor a mobile app that allows them to offer you instant promotional credit they'll scan your driver's l license so you don't have to type in a bunch of information then you confirm that the information on the driver's license is correct you'll add in a couple other pieces of data like your s ocia security number. you give us permission to pull credit, a second later we'll tell you, congratulations, you've been approved and here are your terms and your disclosures, and you can go back to what really matters, which is a transaction commerce fulfilling a dream >> the average fica score is 760. people don't pay any interest because the first year is 0% apr and whatever low digit

afterwards but people usually pay in advance how is it you can do this much quicker than a bank can? why was there that window of opportunity for you. >> sure. in the last ten years everybody has one of these and we're a mobile first company we partner with banks. and banks have always been our partners and we're bringing technology and a marketplace to banks, to merchants, to deliver something that's exceptional to the consumer how businesses grow and delight their customers and our focus is use technology to be noninvasive, transparent, and really easy so everybody can focus on what matters to them. >> in terms of your experience, household debt has reached $12.7 trillion in the most recent quarter. how do you view your market? are consumers levered up $12.7 trillion is a lot of debt households are holding on their own balance sheets >> for ttunately income and gdps doing even better. we think we're just scratching the surface. we've done e$8 billion.

>> are you going to go public? >> we'll see the ceo of green sky brian, back to you >> melissa, thank you. we'll see you in a bit we are joined by the ceo of a tech stock that has handily beaten apple, amazon, facebook, all of them in the last few months and this company they just want to you have fun and play around. th ierewatntvi coming up next on "power lunch." 'saved money on motorcycle insurance with geico! goin' up the country. love mom and dad' i'm takin' a nap. dude, you just woke up! ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ geico motorcycle, great rates for great rides.

let's go down to washington, d.c., labor secretary alex acosta is taking questions at the white house briefing let's listen in. >> skilled workforce is critical to the building trades and that's how it's worked for a number of years. i've talked to several ceos. ivanka trump has spoken to several ceos and there's excitement in the business sector that private-private partnership

where businesses come together with education to focus on dema demand, the skills business is demanding has worked in other sectors and can work throughout the economy. yes? >> the question is where exactly do you see these apprenticeships? most complaints it's for low-paying jobs and not the higher education jobs that you need and it amounts to nothing more than indentured servitude >> that's factually wrong. if you look at the average starting labor for an apprentice is $6 0,000 a year, higher than a college graduate i met with some at the ford facility and they love it. they love it -- let me finish. they love it they are excited about it. and they're being paid a very good wage. you see apprenticeships in white collar positions as well

there are a number of ferirms fr areas like bookkeeping, accounting if you look at law schools, for example, there's been conversations even in it law schools about the need for more experienced based education. the carnegie committee came out with a report about the importance of experienced based education in law the point i'm making we need to stop thinking this is limited to a certain experienced based education works throughout all sectors of the economy >> just a quick follow-up. >> one follow-up >> is your program geared towards the white collared jobs? >> our program is geared to all industries and all jobs. the point here is to foster private-pr private-private partnerships

between educational institutions so when students go to a community college or are looking at apprenticeship programs in the building trades or four-year institutions, when they leave they have the skills necessary to enter the workforce in the middle, yes, sir? >> yeah, in the president's budget talks about work requirements, also congress is talking about some new welfare reform for able-bodied people. could this integrate into that at all >> certainly one of the important aspects of this is the portability of credentials when someone learns a skill, it's important to signal to other employers that this person knows a certain set of skills. the emphasis is on high quality apprenticeships because it's important to not water things

down, to have skills that are indicative of quality. yes, ma'am >> the overall focus on workforce development, the president's budget contains about 40% cut in all workforce skills programs from the last budget if it's a priority why is the president calling for that and then, secondly, my understanding is the budget has about $90 million for apprenticeship programs which is also what president obama had requested. how is this expanding what the last administration wanted >> let me circle back to the point i made about private-private partnerships and what the building trades do. the building trades invest a billion dollars a year of private money to develop a skilled workforce. and so i want to challenge the assumption the only way to move policy is to increase government spending we're trying to measure outcomes so private to private

partnerships, if industry is willing to work with labor to foster these programs that's exactly -- isn't that what we want to see? we should measure on outcomes and not on spending. yes, ma'am i was calling right in front of you and then i'll follow up with you. >> how do you foster these private-private relationships? is there some executive action that will be taken is there a tax policy proposal how exactly are you proposing this would happen? i guess organically happen beyond what already exists >> i will answer in two parts. first, you've already seen that to a large extent as we've had roundtables with business leaders, as ivanka trump has conducted several meetings with ceos around the country here at the white house. and the second part to your answer is stay tuned and listen

to the wednesday announcement. yes, ma'am >> is there a certain region or group of people you're trying to focus in on with these apprenticeships especially since even as the president is saying the unemployment rate is doing well under his rate going well under his administration, there's still groups of people be it by region, race or gender still has issues when it comes to employment is there a focus on certain groups, regions and gender >> so, man you are correct the unemployment right i believe is 3.4%. the broader rate i believe now at 8.4%. as we've had discussions with ceo z that are looking at these apprenticeship programs, one of the items of discussion is a way to work with communities that you typically don't see going into the stem fields and other fields part of that discussion has been

how do you target those groups, how do you reach out it's interesting, because apresenterships himself here, they bring student together in a co-fort model with individuals who are currently working in their field. it allows the possibility of role modeling. an apresence tis can have a role model that can private support and introduce them to the field. so i actually think this is going to be a great thing for expending opportunities for example to women and stem. >> one point to point out. with that you're saying women stem you know that there's still, boil down to race, the offend and hispanic employment number particularly in stem, is this administration looking to push also apprenticeships for those communities as well for the private private partnership?

>> we're looking to push apprenticeship across the board, all people all entities, this is an opportunity for everyone. sir, red tie >> thank you sir you're mentions you're targeting all sorts of professions how do you get around in many states there are laws that would prevent this sort of thing, such as in the legal profession where most states i believe don't allow people to do things like read for bar anymore how do you get around regulations and same laws? >> let me circle back and clarify, the question was is it targeted to blue collar, and i said no it's across the board. i gave an example where experienced-base -- the example for apprenticeship is not for law. the question about state barriers, i really think is a

nonissue because for the vast majority of apresent tisship is going to be -- >> you've been listening to the press secretary acosta outlining the apprenticeship for around the country. go to cnbc.com to hear more where it will be live streaming. in the meantime, anyone who is anyone in the gaming of longs is in los angeles for the e-3 conference julia there live >> hey, thanks so much brian i'm here at ea play with electronic arts andrew wilson. thank for joining us what are the announcements you've been making here that will continue to drive your growth >> we've had a great weekend so far. weave preloaded the weeks, e-3 staffs on wednesday. we started with a fair event in

hollywood. we started out announced madden had a story. we talked about new modes and if i fa, we announced great stuff coming from battlefield more than 23 million people playing in that community. star wars battle front 2 was probably the big thing in outshow. everyone has star wars fever, that thing keeps going we teased a little in a game called anthem. we did a seven-minute play yesterday and internet is blowing up about it. we're pretty excited >> so your stock and the company's benefit a lot from the shift away from selling a game from the digital avenue, what are you doing to your new games to tap into that shift to digital? >> the shift to digital first started with having to buy again, all about downloading again versus going to a retail outlet the thing that's driving or

business is engagement, that means live services. this is not about selling one piece of dnc, it's being putting a program together that gives people a reason to keep coming back and playing in ultimate team for if i fa and madd madd madden that means weekly around events for football, and star wars we're going to give the content of the -- to play for free but let them engage in a live service that brings the community together, keeps them together >> and charges them? >> well, they can invest time or money. it's up to them. what we've seen in our other businesses is that when people play a game for two and three years at a time they're willing to pay extra to sustain and enhance that experience. it's tremendous value for them and keeps them and their friendsing to. >> we're starting to hear the

noises fill up how important is e sports to ea's future? >> really, it's a really big part it's not the only vector of growth for our future there's many vector's of growth. whether you think about core motivation that drive human behavior, social interactive and competition it is most powerful. they're the two motivations that sit in middle of e sports. bringing friends and rivals together to compete in their favorites games. we're announcing ongoing games with if i fa, madden and we're also asked for one of the biggest e sports announcement this show was bringing e sports to battlefield 20 million players, new maps, a whole east coast opponent to that gain. >> certainly a very hot space there. unfortunately we're out of time, andrew thank you for joining us let you get back to your ea play

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i'm sara eisen here's what's on the men knew. investors continuing to bail out of the tech names. tech gets trashed today, both calls on amazon amazon who made that bullish call lays out his case a shake up at ge, the second hour of "power lunch" starts now. let's get a check on your money for monday because friday's tech take down is continuing today netflix shares continue to slide, down 5% right now, off 9% in one week. apple stock also lower losing another 3% today outside of technology largely a different story for ge general leskt rick shares rising after jeff immelt steps down

what does ge become? wheal try to answer that first, melissa in miami. >> hey brian, i'm melissa lee coming live in the emerge conference in miami. the ceo of sprint, an exclusive he'll address murder speculation with t-mobile. the queen of personal finance, sue se orman joins us brian. >> all right melissa thank you very much. despite the recent weakness your next guest says don't you dare sell amazon stock, in fact you should buy more. he raised his price target to 1200 for amazon a share. let's bring in michael like no doubt you've been working on this for much longer than 48 or 72 hours, are you disheartened by the recent swoon in amazon or does it add to your

conviction >> it as to our conviction it might seem like a less than perfect day to raise or stock amount but it's a great day investors can take advantage of the stock. we think of any of the big names that have sold off here, amazon would be the one to focus on and take advantage of this weakness. >> i won't give you grief, because you're suppose to buy low and sell high. if you raised your target into certain strength i might give you a harder time. when you do your individual checks on amazon business, is there any sign any of their main units are slowing down at all? >> no. and that's what gives us confidence we'd be more concerned if we saw some sort of specific confidence fundamental weakness but we're not seeing that. what we've published today was a focus on unit growth we have an annals that goes back

37 quarters. basically what it's suggesting is that the june quarter should be in line to potentially slightly above what street is modeling for we're not seeing any fundamental weakness as i've said i think the stock's getting caught up in this broader text so often we think it's a great buy opportunity >> how strong is prime now in your checks? >> it remains very strong. our checks didn't focus specifically on that, we think prime now and same however delivery in particular are a huge competitive advantage for amazon going forward if you look at the company from traditional retailers and walmart as they're trying to get more aggressive in the space, we think the fulfillment and inventory they have and all the learning that they're doing, through existing learning partners and voice buying through alexa is really setting the company apart. >> michael, it's hard to argue

with the evaluation, as brian mentioned before you can call out amazon for making it too hard to justify evaluations. some are warning about rising competition when it comes to amazon those on the cloud side with microsoft and google trying to get big on the cloud, and with the resir gent and walmart chasing after the business, do either of those concern you? >> i do think on the awf side there is some indication that microsoft is getting some share. awf may have a little less in the greenfield than what we thought, by microsoft getting in the space for a public cloud helps to expand the broader market and we think the overall adjustable market is bigger for aw s, even though they may lose a couple points or market share for microsoft. on the retail side like i said with walmart, i think the

advantage that amazon has is tied to same day, same-hour shipping and all the data they're collecting and it's giving them a position where they're in a escape velocity on the retail side. >> michael, you're making a lot of waves today appreciate you coming on thank very much. looking broader as we've been discussing the lf continue today with many of the tech names under pressure is the sector still a safe bet or is the downside to continue let's bring in portfolio manager and brian muller so i'll start with you brian, a lot of people were looking for some sort of pull back, these stocks some of the big cap tech names have multiplied and tripled the rate of the overall market this year does it look like a healthy correction or something

worrisome? >> we feel like it's a healthy correction the stocks have been very strong this year as well as last year a small cap, when we look at evaluations going into this they were at a premium to the normal evaluations levels in earnings and now they're getting to a median now we're finding stocks that are blow median >> can you name some names for us >> one name is nan know metrics that use 3-d measuring systems they had a q-1 because demand was exceptional. we feel like that's going to get fixed in q-2 and q-3 we think there's beginning to be a large slum of orders in 2018 from china we've seen this movie before, when china decide to go into led chips they made a large investment and placed some large words with suppliers we think

nan know has set up. >> what about you danny, how is janis looking at this tech sector sell off over the the last two sessions. two soon to come in and buy names or are you looking at the chip stocks that have been hit harder >> i think that depends on your time frame, the way we look at this it feels like a healthy correction that brian eluded to. generally speaking, whether you see a sell off like this, as violent as it was on friday, kind of follow through our monday, you ask yourself is the financials of companies coming into employee or is that leading to the sell-off. as we look through the results that have been reported over the last couple of quarters you look at results for other businesses. to your question, some conductor space has been healthy as far as demand profile across the

propoint providers as well as equipment space. we added it up and it seems like a favorable back drop. i'd highlight as you look out to the 2019 time frame and you think about the growth rates that some of companies have and you look at the multiples to companies such as consumer staples and other, they're still a contract bl price. we're enthusiastic about the process for tech >> i guess there are a few factors brian, that you have to look at. they're set to raise interest rates, so we'll look at the tone of that. when it comes to earnings, where else do you find earnings growth for 10% of a sector brian? >> we feel like there's a small cap where you can find in

consistency we like form factor which is in the semi-cap equipment space. one financi wernl /* /- western financial is one of the biggest providers -- commercial bank piece you can get a stock price that's north of 15% and look at the publicly traded company that gives you a basis for the evaluation >> all right thanks guys for names and picks today. good to talk to you both >> thank you very much sarah here's what's coming up on power hutch in video, once the hottest stock in all the street but now getting heard for the tech tumble. where does video go from here, we're tall become that on "trading nation. where does ge go without jeff immelt, we'll find out. back with melissa in miami with

what's coming up >> what is next from spring, what the ceo says about a possible merger are t-mobile a lot of wall street analyst say that's off the table, if you want to hear what r cale says in our exclusive next

. welcome back to "power lunch" we're live from miami at

the emerge conference, some of the most innovative name until the base i sat down with caurle about the merging with t-mobile. >> one of the iconic turn around has been 2.5 years, the company's performing in record levels in everything, growth, portability, generating. we're in a great position today. it's our job to all potential options, t-mobile is an important one because of the normal levels of synergies but the players are important in saying hey, the cable companies have a potential in doing something with us at this time we're in a process of waiting. there's no surprise that the t-mobile -- for american consumer >> i've read through a lot of the reports recently, the most recent oneses and there are

still some analyst out there who think it's still on the table and there's others that think it's completely out of the question is this a lot of ink being paced on wall street about the speculation of whether or not this is a possible >> absolutely. holders have made it public that he believes the -- with t-mobile has been great tim has made it very public. my except tir john and i have made it public this will be very good today you have two -- attacking the market, the way we look at this, imagine if you have a super charged maverick going after at&t and verizon to stop this there are different possibilities. like i said before we're look at different options as i'm sure t-mobile is looking at different options. there's no need to jump into something ate this point and

time i go back and say it'll be a great combination. >> the other thing you said with the cable companies et cetera, does it have to a merger and acquisition scenario in which sprint doesn't go it alone >> we've bumper going at it alone great. if i go back and say a couple of years it was $5 billion or today it was $10 billion, the spring was earning $4 billion of cash this year we did over $600 million trans actions so we're in a good place. when you look at a potential combination this is a scale game today we have half the amount of customers of verizon sla verizo. if you put together these two companies it'll be a great merger where sprin will come and

n and play the goal will be to make sure the u.s. is the leader in 5 g and have a company that generates together that allow us to accelerate that that's only my opinion >> the best scenario for sprint shareholders is for sprint to merge with t-mobile? >> that's one of them. and also to your question that's one that seems to be underpressed the last few days >> and whether or not sprint does some sort of merger or deal with t-mobile or a cable company we focus on that because that's a driver of the stocks this even as the stock is trading as a discount in terms of stock price performance to its competitors, verizon and at&t mobile where it trades on the mobile base is 6.15% so it's trading on discounts in terms of value metrics as caurle said he's look at a

lot of possibility, t-mobile is not dead we also talked about 5 g and the upgrades there because there's so much emphasize these days about whether or not the trump will get through an infrastructure he stress 5 g is a priefrt infrastructure plan in and of itself $275 billion will be spent on the deployment on 5 g and that could create as many as 3 million jobs eamon javers is also here with us in miami. you just completed your own interview here >> yeah. >> good to see you in person krchlst i sat down with jeb bush who had a lot of thing to say. he also said he feels we lost the common set of facts in america. the debate that we've had have been so fractured that he wants us to get back to that

he praised some of the republicans on the committee he said they're doing the right thing in setting the right tone for the country by handling that the way that they (d) here's what he had to say earlier today. >> if you are defending a person who was from the other party doing it would you have to same attitude and vice versa. would you defend if it was a democrat doing it and oppose it if it was a republican in a minimum if you have that fist step is have the same view for a person ir respective if they had a d and r in front of their name i think we can restore of the the democracy that have to work. >> he also talked about the phrase, america first, which donald trump has used to describe his political world view of politics

jeb bush says he doesn't like that phrase because of what it means for more than leadership in the world >> i think it's okay for the united states to advance its economic interest in the world and i respect the fact that donald trump has brought this up but if his doctrine emerges, i don't think it's clear how it's working, to pull back, create walls, to isolate to say we're not a leader anymore, korea you fund the missiles that protects us, china you pay for it, all this stuff creates a dangerous world where people are friends no longer, know where we're stand, our enemies no longer fear us. >> he also talked a bit about baseball, he's in the efforts of buying the florida baseball team, he said that effort is on pause because he and derek jetter has not been able to come to terms with the construction of that. he's only going to buy the

florida marlds only. >> it seems like he was -- >> he was. he said he was a credit tick but he says there are aspect of the trump administration that he's hoping will succeed and he hopes that every president exceeds he hoped that barack obama succeeded as well. for that was start of a baseline starti starting point and into conversations about cuba, so a lot of get into. >> thank you so much brian when we come back you'll have sue set orman, the one and only >> we'll look forward to that. melissa and eamon thank you very much coming up back to the market is it set to make another leg up or down. "trading nation" tackles that. a look at stocks not turning around, apple and netflix down investors taking a hitn os ithe

names. we'll talk tech coming up.

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of the sunny conductor stock we look at these names and nvidia otherwise are you concerned are you ready to change some of your recommendations? >> well, you know we've been bar rish on a few names this year, i think the evaluation is arrest nome call. i do think within the groups there are activities in particular >> how low would nvidia have to go for you to say i'm not going for bearish anymore? >> my target's $90 >> you're sticking by that because it's a buck 50 stock >> we are. it's a semi-company that's been valued as a software company which it's not the best trading in this space is -- and fuelling that is really i think a lot of hype and

hope around artificial intelligence >> all right, so gina sanchez to roomt's point, this kind of stands alone, it's kind of its own stock inside the space what's your view on semiconductors generally >> i think semiconductors having seeming a little weak lately you would see stocks like this continuing to expand as you see kind of continued demand and economic activity, however a lot of the outlook for that -- the positive outlook for the economic outlook is getting hindered and that can hinder spots in this space. >> we are going to leave it there. we proosht your time thank you for more "trading nation," we do two additional segments online every day go to

tradingnation.cncb.com sarah. >> thank you for the warning tech is falling, energy is leading the way. the best performing sector today, the closing trade on oil and advice on plain commodities right now. ge rising after jeff immelt steps aside. what does it mean for the company? "power lunch" will be back

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hi everybody i'm sue herrera, here's your cnbc update at this hour president trump meeting with his entire cabinet for the first time this morning at the white house. he blamed the democrats for delaying the confirmation process. >> a record-long delay and confirmation and a confirmation process by the senate democrats, which i called the

obstructionist, maybe they'll change but i doubt if they will, this is our first cabinet meeting with the entire cabinet present. a powerful kwauk causing damage in the greek islands and western turkey today it shows that heavy damage in the village of viz ra where thousands of refuges migrated fleeing iraq no reporting deaths. the came bridge visits victims and staff, she spoke with doctors and nurses who treated the attack at london bridge and burr real market. that's the update at this hour brian back to you. check out shares at fed-ex they're up 1% right now. the transportation company saying it is raising its

quarterly david end to 50 cent per share, that's 55% increase payable on july 6. this comes a little over a week ahead of fed-ex reporting its earnings next week, as i mentioned share up 1%. they are trading at all-time highs. fed-ex raising dividends to 50% on quarterly basis back over to you we are 30 minutes from closeding bell and companies are selling again. netflix, amazon, apple and facebook all low in today's trade. energy and telecom are the best performing crude oil back about $26 a barrel dahm choy at the commodity detectiodesk >> oil prizes rose around 20%. we got low as $45.66 as far as

high 71. the 46 mark is where we're going to settle. there was bullishness around signs. and reports saying that saudi arabia could cut back on oil in places in the u.s. you're getting a lit of benefit here on the higher crude prices. we have shares of chesapeake energy, trans ocean and others leading. back over to you if you don't like stocks, if you oil or gold may be the bestplace for your money, listen up, your next guest say we are stuck in a super cycle bear. john over at wells fargo investment we welcome him john, there's a lot of oil bowls out there, those waiting who think that higher oil prices are just around the corner you disagree, how come

>> good afternoon brian. it's all about supply at this point in the cycle if you go back to the last time oil was over $100 a barrel it was july of 2014, production is less than it is today. a lot of people miss that fact we're still overproducing, whether it's the u.s. which is the largest producer in the world, or be it opec, they're still producing. in five years we look at bearish prices >> if they've watched this show they can't say they have a note about instructionsky say that. we talk about all these drilled and uncompleted wells. do you think john, we're beginning to get to 10 million barrels in the united states which is what we've done twice in two months in 1970? >> right and that's just crude oil. you're talking about going from

roughly 9 million barrel produced of crude oil to 10. it's just massive, it's a massive glut that won't go away and it makes perfect sense most producers that produce commodities in the world are countries, they need to revenue, they're going to keep overproducing. >> gold, why you bearish not bearish? >> same deal, you look at the price of gold when did it peak 2011 it peaked at $1,900 an ounce. 20% higher today yet prices have been put in half that's what happened to commodities at this point in the cycle. south africa produced the most am of gold than any other country there and they're overproducing. australia overproducing, canada overproducing. >> that's pretty amazing we'll

leave it there the last time we were over 100 bucks a barrel for oil we were producing less than we are today. thank you buddy. to john harwood with a news letter from washington john >> it appears "the wall street journal" may have scooped president trump and the white house on their promised announcements about whether there are tape recordings of the president and james comey. wall street has posted a story saying in response to an information request, the secret service told them there are no audio recordings of the meetings in question. that's not a definive answer to the question, if president trump himself had some sort of device separate from the secret service that's questionable. he hasn't spoken to that sean spicer in a briefing a moment ago declined to answer the question we have the heard from the secret service which in the past has in stalled recording systems

for the preponderates, they do not possess any recordings of that meeting interesting step heading thwart jeff session's testimony tomorrow >> when did do we find out if he did tape them? >> that's what we'll wait to see. >> lordy i hope there are tapes, james comey last week. john thank you john harwood with an update there. turning back to the big corporate story today, jeff immelt stepping down as ceo of general electric of 16 years in charge jp morgan's jaime diamond saying jeff has transformed ge over the year of times. and goldman sachs of ceo

tweeting quote, congrats to jeff immelt to leading ge through 9/11 and the slow moving economy. >> did you see the tweet last friday i think there was -- >> on the infrastructure week. >> how did infrastructure week go i met lloyd a few times, he meant what he said it was -- >> seminarky >> a little. >> our next guest said ge was right for a change in leadership jim stuart, a klum mist with the "new york times. were you looking specifically at the stock surprise here on something bigger about immelt's leadership look it was never going to be easy to take the reigns from jack welsh >> it wouldn't easy. the real story is that he didn't transform it enough. he was backing away from the

jack welsh play book but he had a lot of other issues to contend with after 16 years i think nefrts have said, look you haven't done it fast enough this is one of the last nails in the coffin of the old industrial conglomerate jeff immelt has always said as long as we got the leading share and we can apply the ge management risk and ring more profits and synergies out of these plains than anybody else as i said they still have a major lines of business, this is not good >> which is why jim, some are still wondering whether a break up is in story for a company that seems to be played down a bit today. stock is reacting well though. what do you think is in store and what do you know about john flannerry? >> i think investors are looking for -- which could mean slimming

it down. i was looking back today where they're growth is, that i have got some good performance in the power, the renewable energy, the aviation segments where they have great brands and mark shares, they are growing profitability, oil and gas has been a disaster, partly not because of their on making but they sort of doubled down on that as prices were dropping and still waiting to see what happens with the baker hugh's deal they were clearly playing with a very weak hand there and then they have they're other businesses not growing look at the health services where the new ceo has been leading and doing quite a nice job. they're not competing effectively there, the margins are not high and heir not showing growth there >> also on the media size, they use to own us, congress bought out stake at ge. if you we

if immelt look back at ge tenure can you point to one trans action that might stand out the most good or bad >> the biggest one was getting out of financial services. that was always the one where when jack welsh needed an extra boost you can count on financial services when financial crisis hit, we learned ge was no better and maybe worse at analyzing risk which was so important in the finance business than every other bank that got sucked into it it was a big step for immelt to bite the bullet and say we're going to get out of this business and he did it in an orderly way. you're never going down in the record books or writing the best selling memorial about how i dwesed the flounder being investment business of ge conglomerate i have to say, he had a lot of

issues to deal being starting with financial crises, september/11 then the criminal case crisis in the oil and gas level. they want companies that know what they're doing, they have expertise, have competitive edges and can show profit growth in the areas they do well and i think ge needs to focus on that principle. >> jim, thank you for weighing in jim stewart of the "new york times. melissa. >> thank you very much sarah another big interview conference in miami look who i found here, the one and only suze orman, she'll be here to tell us how to position tnk portfolio, how tohi about investigating. all that straight ahead on

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welcome back to "power lunch" we're live in miami at the emerge conference with the one and only personal finance expert, queen of personal finance, suze orman, also

friends of cnbc. gate to see you again. in that am of time that weave talked what have you found in the am of burning questions people have. we're in a period where we have new administration, stock markets at record highs what questions do you get >> it depends on who you're talking to if you're talking to people with money and they're compassionatic and ask this is the best time to go if you're talking to my people that have credit card debt and no money, they feel lost than ever they feel like they've miss it had stock market, they feel like they don't have money to invest in the stock market even if they're in the stock market with their 401 plans don't know what they invest in not much as changed. >> we're here at the stock markets where you can get ahold of your stock markets and invest

more officially. >> if they have money, if they have money in the stock money already. of course they're -- it's easy now, now they can check it now they get alerts now they get this think about america, think about how many people don't even have $1,000 in savings melissa. so america's a big place and not everybody has money. but those who do it's far easier for them to check on it, that doesn't mean it's fair easier for them to know what they she shall down with it correctly >> what's that one piece of advise to your people who feel like they've missed out on thing? >> what goes up has to come down, it always does is it here, is it another thousand points who knows. if you have $50 a month that you can dollar cost average into a low mutual funds that took small

minimums or etf where they don't charge commissions, just $50 a month, $100 a month no matter what the stock markets are done over time they'll be find. >> all the stocks people buy add up >> stop spending money you don't have to impress people you don't even know or like. stop leasing cars, stop eating out and doing the things that's waisting your money. >> are you surprise that technology hasn't helped people become educated about personal finance? >> yeah, i have to tell you i am i have my own course, we have over 300,000 people using it and today i'll give it as a gift to everybody. all they have to do is go to suze.com and go to merge and do that for free. they're still aren't -- there isn't the desire rather than 300,000 student i should have 3 million student. they don't have the desire and

still not hungry for it. they don't see it. >> in terms of people looking for education are you finding more younger or older people >> i'm finding it's more older people the young ones they want a little house, they don't want anything it's like all they want to do is be out there and work and go to the next job and make money and spend money. >> they don't have goals yet >> they don't have goals but they should have have goals, because if you don't have a goal when your 25 and 20 and parting money away now you're not going to reach that goal wen your 65 it's sad out there no matter how good the stock market is doesn't mean it's good out there >> the one piece of advice for young people out there who are spending their money on avocado toast and no goals what would you say to them? >> get as much pleasure as you do as spending try to set sell one goal over

$100 a month into a roth/ra goal it could turn out to be $1 million >> brian back to you >> melissa you are a avocado toast aniche nad doe >> i've never bought avocado toast. i'm a saver. the big name, tech stocks getting hurt again today is it time to bail out or buy? big question hopefully answers coming u i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform

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we are watching technology stocks again today with the sector down 4% since friday. our next guest says it's a test, and the founder and manager partner at luke ventures leek the stocks, amazon, apple, google, but not ready to tell investors to buy at the lower levels >> no. we would sit tight the next couple months, and looking at the performance relative to the tech, tech is up -- or at least faang, double a, faang, up year

to date, so there's room for a pullback taking a month or two to fully go back being an analyst through the dot-com and 2008, this is different. you mentioned names we like, add tesla to the group, but there's reason for optimism in the stories longer term. >> so, gene, what do you hear when you talk to investors as to the reason why a lot of people are blaming the goldman saks letter friday, just about a federal government taking what's driving the move from technology >> i just think that outperformance is so remarkable in this broader tech over the last few months that when you start to see a break and start to realize that technically these stocks could come down another 10-15%, i think it just gets investors worried i spoke friday afternoon to investors and again this morning, and that was the general sense. there was not anything fundamental, but the stocks needed a breather. >> isn't it, gene, healthy, though i don't want to, you know, throw

water on the coverage, but, you know, because it's a big deal, but at the same time, when stocks go up every day, that's when i get nervous >> it is healthy that's exactly -- i -- i talked to a trader on friday. that was the message that this is a healthy pullback, and so that's exactly right i think it takes once pullbacks happen, investors can breathe easily and say that, yes, we've had this natural pullback. >> so your advice to investors holding the stocks and continue to do so is stay calm, and those who want in, wait, what, weeks here few more points down >> yeah. i'd say a month, maybe two months i think stories like apple and tesla, amazon, well-positioned, and paypal and netflix are not well-positioned longer term. i think there's differentiation of which companies properly ride the next wave. >> why not netflix that's been a darling. why are you negative on that one? >> i think in the near term,

once apple turns on -- or amazon on apple tv, you're going to start to see more people who, especially in the u.s., who have these netflix subscriptions turning off. they get it free through the prime membership, and i think that's a near term negative to the story. >> is the netflix, though, line up the bloodlines of the world, orange is the new black of the world, compelling enough to keep people from doing what you just said >> i think that on the margin people start to drop off, and, ultima ultimately, comes down to the content they create. jeff said content is the fourth an upcoming of the amazon stool. we can't see that necessarily today, when we compare content of netflix and amazon, i think if you fast forward years from now, you'll see better content from amazon, and apple have planet of the apps launched, and they are making more original contempt it's going to be more crowded, a negative for netflix

>> netflix earlier in the session reached correction territory, technically 10% from the highs. we'll continue to watch. gene, thank you from loup ventures last record set was june 8th record high and sharp direction lower. >> all right check, please, is next i love how usaa gives me the peace of mind and the security just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected. we're the williams family, and we're usaa members for life.

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the one and only, aka pit bull, oh, he is on a quest to build a brilliant billion dollar brand update on the everies, and released the tenth album in march. he's a busy man. that's on "closing bell. i wanted to go back to the advice suzi said, have as much pleasure in saving as spending bring your lunch and coffee. i do every day think about the long term. that's very important. >> make your toast at home got it >> i see what she brings to lunch every day. it's a weird tuper ware filled with stuff >> it's salad. it's called a salad, brian >> i don't know what that means. >> it's not weird. >> a language i don't understand >> my check, please, guys, is activist angle on ge investors wanted change at the top of the company stock up 4%. now the question is, will they

move on pg no comment yet, but this is the big position everyone wants to see what's in store. now they can focus on it fully i'd be watching. >> bad behavior in silicon valley uber sarah, thank you for joining us today. >> thank you >> melissa, have fun in miami. >> thanks, see you tomorrow. "closing bell" starts right now. ♪ >> that's been in my head all afternoon. >> the wedding is over >> wedding is over ♪ love love love pit bull is coming up on the show welcome to "closing bell" everyone, i'm kelly evans at the new york stock exchange. we have an interview with mr. worldwide at the end of the show >> welcome back. markets interesting on the way ba