room deals the senate republican leaders are going to be talking about cutting over the next two weeks or which republicans will decide they care more about toeing the party line rather than protecting families in their states, but here's what we do know. senator mcconnell is not going to give up he wants to get to yes and so does president trump even though their bill will mean that families' health care costs will go up. it will gut medicaid it will undermine protections for people with pre-existing conditions, and throw tense of millions of people off coverage. why? because they are laser focused on giving the very wealthy and big corporations a massive tax break. so here's my message to every patient, every family, every mom, dad, care giver, doctor, nurse, teacher, anyone who believes that trump care would be devastating to their

community. do not let up the pressure we saw what happened in the house. we need to keep fighting and we're going to, and democrats will be right there fighting along with all of you. >> senator stab now. >> i'm very proud to stand here with a group of people and with a caucus that understands -- >> so the democratic side leadership of the senate speaking out after the republican leadership announced a delay in the vote of the health care reform bill, and we welcome you to "closing bell" now for this tuesday with the dow done about 40 points right now. i'm bill griffeth along with kelly evans. >> let's go to washington for the latest in the twist for the health care bill that up until the last hour or so we thought might get done as son as this weekend. >> that's right. we heard senator john cornyn say this morning, a vote was on this week and a few hours later senate leaders reversing course essentially acknowledging they

don't have the votes, at least not yet, to get this passed. mcconnell had said that the white house has been very involved in these negotiations, but law enforcement simply need more time to get this done it has been a very dramatic day with mcconnell meeting with vice president pence on capitol hill while senator rand paul went up to the white house in order to meet with president trump. after that meeting was over, he tweeted that the president was open to creating a better bill is republican leadership now one of the issues that has been contentious is the expansion of medicaid and how long that expansion might continue and how long we might see federal dollars go toward that program governor kasich of ohio had said earlier today that he wants his state delegation to hold out for a better bill. he said that it's like republicans are the dog that caught the car and now they

don't know what to do. they need to make sure that they can work perhaps even with democrats in order to get this done guys, if you remember, the house had to pull its version of the bill before it actually got it passed we'll see if the same thing happens over in the senate. >> all right ylan, thank you. joining us toss discuss more of this is chris krueger from cowan. we appreciate you being with with us. what a day we were asking you how likely it would be if health care gets done before the july 4th recess. now we know the answer to that how significant is this delay? >> it's pretty significant the exact wrong place for republicans where they wanted to be at the beginning of the year. the august recess was originally the deadline for tax reform and they are still sort of stuck in the mud of health care with really no end in sight for either the budget or taxes right after this >> all right timing aside, let's talk about the issues that divide them. i mean, clearly the democrats and the republicans are not talking to each other. they are talking to the press with what they would like to see

the new bill look like the issues here are medicaid primarily, and the expansion or the cuts in spending is there a middle ground in that at all that you can see? >> well, i mean, medicaid is sort of the issue du jure ajouru have planned parenthood and health care all wrapped into one bill here. this is not an issue that tends to lead to a lot of moderation with republicans every republican vote on this that you pick up on sort of the more moderate spectrum you lose one more on the tea party spectrum so it's very difficult to see how mcconnell it thread in needle, and time is not going to help. this is not a bill that will age well, particularly over the recess, so it's -- it's tough with a lot of republicans sort of i think wanting to move over to the budget and to taxes, one of the few issues that still has

some common ground with republicans. >> and we see a very mixed bag for the big insurers, for the hospitals on the back of this. clearly people are trying to figure out the odds and also, you know, where this leaves them, and for tax reform how much will this halfer major reform if they can't use any of the changes from the health care legislation to make bigger overhauls there? >> well, i mean, there are sort of two things on the table, tax reform and tax relief. tax reform is sort of a big, structural, comprehensive paid for tax policy, and that's -- that's i think basically gone, really what is under discussion is sort of another version of the bush tax cuts, sort of bush tax cuts 2.0, individual cuts, pass-through cuts over a ten-year, particularly if you don't get the health care bill through. you also have to deal with all of the obamacare tax cuts that total in the neighborhood of about $700 billion over ten years. >> even the democrats, we heard

this from chuck schumary little bit ago, know that there can be some changes made to observing abe to strengthen it and improve it, whatever do you suspect that -- that they will have a role in this eventually if they can't get the republican bill through, that somehow something is done to obamacare? can you -- can we maintain the status quo at this point >> oh, i think the key thing to watch here is going to be post labor day because you have on september 30th a host of bills expiring, all of which were -- require 60 votes in the senate mainly s-chip, basically medicaid for kids. the thinking was at the beginning of the year if they hadn't gone down the repole and replace place, maybe use that s-chip bill which by definition has to be bipartisan as sort of a repair mission to prop up some of the exchanges, to prop up some of the counties that won't have insurers next year a lot of which are in trump counties, so that -- so keep an eye on

october, that september 30/october 1 is. the unfortunate part of that is it's wrapped up in the government shutdown negotiations along with the debt ceiling, so after labor day you do have a legislative vehicle to work on these things, but you also have a lot of cross currents that really don't blow well for bipartisanship >> chris, that all sounds pretty disheartening for the trump agenda and the dow is down 58 points as we discuss this. if the republicans look set to lose at least maybe the house in the mid-term elections next year, what kind of impetus do you think that will ultimately give to pass some kind of health care bill, to pass some kind of bigger tax reform? is there no path to get there from where you sit right now >> well, look, i mean, the three presidential predecessors, two of the three started with health care in their first year and both of them lost the house in the mid terms. having said that, i mean, we're in a situation, a political environment right now, where

republican candidates are literally body slamming reporters the day before elections and then winning election so the -- and you also had the most expensive congressional race in the atlanta suburbs finish last week with the democrats underperforming hillary clinton, so i think the -- it's not clear what happens with the mid terms which are in 500 day disease, but no question the trump agenda has stalled out on capitol hill. >> all right chris, thanks for joining us >> chris krueger from cowen. >> let's get to the markets today. generally you've had energy prices higher, energy stocks are higher, health care has been lower. technology is lower led by google, and with the dow down 56 points let's get to our "closing bell" exchange larry glazer from mayflower advisers and kenny polcari sitting next to us at post 9 and rick santelli is at the chicago mercantile exchange or the cme in chicago there kenny, you know, clearly wall

street is watching what's going on in washington, but it's, you know, not much is coming out of there right now. >> not much coming out of there, but you can sense, though there's low volume, you can sense the building anxiety the market is off half a percent, not a huge number, but they are taking money out of, profits out of some of the high fliers and tech names and cyber security names considering what's happened over in europe i'm surprised cybersecurity is up, not down. people are getting nervous about the overall market so they are taking money out of some of these higher performers. energy for sure because oil is up a little bit of a rally. nothing really new there and what's going to happen as we move through the summer and chris krueger just said it, there's a stall there and not good for the trump agenda and not good for where he wanted to be at this point in the summer and the days ahead in the summer are going to be -- >> that's a great point about the cyber names, and even a name like alta which has been such a strong performer is having a down day. >> trade remembers taking money out of it. >> larry, where are you looking

to put money to work for the second half of the year? >> look, i think kenny made some great points days like today we're reminded forget the summer doldrums and forgot the barbecue and cookout and fireworks. the fireworks are right here at the end of the quarter and the fireworks will continue into the second half of the year if we see the rotation out of some of the technology names like we saw today, out of the expectsive names and more into valuation-conscious areas and we can see the circus out of washington the investors have been reminded all year that you buy f.a.n.g. on a dip and what happens in washington stays in washington and it won't affect us, and both of those israel challenged in the second half of the year. we'll rotate, like today, you see energy and financials doing much better. big expensive technology not doing so well. that's the playbook for the second half of the year, look for more values out of domestic into international. >> before we get to rick larry, i get you heard mark benioff out there at this summer davos event saying he feels like

the f.a.n.g. stocks are still undervalued right now. >> sure, sure, yeah, and he doesn't have a conflict of interest, does he? i mean, it's not like he's talking his own book as the single largest share holder in any technology stock i mean, you know, what's good for him is good for him, right and my investors, i need to protect their capital. i don't need to worry about what he's doing in silicon valley i think he's doing just fine we'll protect our capital and look for income second half of the year. >> netflix down 4% today. >> rick, let me steer you to what i'm sure you've been focusing on today, the skyrocketing yields in europe starting, you know, the ten years, whether it's in germany or france or italy or wherever it was and the impact it's had on our own yields in the united states what do you make of some of the hawkish talk from mario draghi this morning >> well, everybody is focusing on what's going on in d.c. and it's having these outsized effects in stocks. oh, my god the dow is down 50

the fixed income world isn't even paying attention to that. it's looking at the big show in center stage, central banks. is there a taper do they have the nerve will they do it, and i hit all the right names. let's show some two-day charts germany, which is called the euro zone because it's the best credit up a dozen basis points, italy up 16 and france was up 14 spain was up a dozen and even canada was up 10 we're the lag yards, we're only up 6 the relative value trade isn't a one-way street like in chicago it goes both ways. now we're experiencing some of the traffic in the other set of lanes. this is a huge story doesn't mean it's going to be linear or that mario draghi's first words on the topic of a taper are actually going to happen in a timely fashion, but it does give everybody a clue as to what's really driving some of the money globally, especially some of the money in the fixed income space, and we all want to pay close attention to this, especially considering how it

seems to overlook some of the other issues that others find so important on a daily basis a lot of them politically denominated. >> kenny, that seems to feed right back into the rotation talk we were having because look at jpmorgan leading the dow. look at bank of america, a 3%, charles schwab having a nice day. >> the financials say what you want have not really performed the group as a whole is up 3.5% from the beginning of the year therefore, in fact, they have not really kept up, and so as -- as they said in the -- and the other guest said, that's true. investors are going to start to move out of some of the high flyers and move into the value, so energy for sure in financials certainly lead the pack >> you mentioned energy. granted, oil prices were up 2% today, but -- >> right. >> but look what oil has done. in a bear market and oil stocks down 17%, 18%. >> we've got to go, because now the white house, we have sarah huckabee saunders who is beginning her -- the q&a process at the white house let's see what they ask about health care. stay tuned here. >> the target of this -- one of

the target stories except the president went on twitter and repeat that had cnn was fake news why isn't their response good enough for the president >> i don't know that it's that the response isn't good enough for the president. i think it's that the constant barrage of fake news directed at this president probably that has garnered a lot of his frustration. you point to that report there are multiple other instances where that outlet that you referenced has been repeatedly wrong and had to point that out or be corrected there's a video circulating now, whether it's accurate or not, i don't know, but i would encourage everybody in this room and frankly everybody across the country to take a look at it i think if it is accurate, i think it's a disgrace to all of media, to all of journalism. i think that we have gone to a place where if the media can't be trusted to report the news,

then that's a dangerous place for america, and i think if that is the place that certain outlets are going, particularly for the purpose of spiking ratings, and if that's coming directly from the top, i think that's even more scary and certainly more disgraceful, and i hope that that's not the direction we're headed i hope that outlets that have continued to use either unnamed sources, sometimes stories with no sources at all. we've been going on this russia/trump hoax for the better part of a year with no evidence of anything. things like that the success at the v.a. barely get covered. they may get covered for an hour at a time, but this story gets covered day in, day out, and i think america is frankly looking for something better they are looking for something more, and i think they deserve something better from our news media. >> does the president actually expect -- >> i'm sorry.

>> does the president actually expect us not to report on stories of a foreign country trying to influence the presidential election? >> i -- i don't think that it's expected that you're not to report on, again, actually news if there's something there, but, again, i think that there are a lot of things that happen in this world that frankly a lot of people would like to hear about, whether that's job growth, whether it's deregulation, whether it's tax reform, health care i think a lot of those things deserve a lot more coverage than they get, and all we're saying is, you know, i think that we should take a really good look at what we are focused on, what we are covering and making sure that it's actually accurate and it's honest. if we make the slightest mistake, the slightest word is off, it is just an absolute tirade from a lot of people in this room, but news outlets get to go on day after day and cite unnamed sources, use stories

without sources, have, you know -- you mentioned the scaramucci story where they had to have reporters resign. >> come on you're claiming to everybody right here with these words this administration has done as well. why in the name of heavens, any one of us, right, are replaceable and any one of us if we don't get it right, the audience has the opportunity to turn the channel or not read us. >> i think -- >> you have been elected to serve for four years at least. there's no option other than that we're here to ask you questions. >> right. >> you're here to provide the answers and what you just did is inflammatory to people all over the country who look at it and say, see, once again the president is right and everybody else out here is fake media and everybody in this room is only trying to do their job. >> well, i -- i disagree completely, first of all i think if anything has been inflamed it's the dishonesty that often takes place by the news media, and i think it is outrageous for you to accuse me

of inflaming a story when i was simply trying to respond to his question kevin. >> thank you, sarah. just rapid fire because we've had a bit of a long briefing here would it be fair -- let me ask you this way how would you describe the president's mood on health care, concerned, still encouraged, and what did you make of the cbo score, if you talked to him about that, and secondly i want to ask you about the warning to syria. what's the message that the administration wants to convey, not just to the world community but also to the american people who see headlines like that and wonder are we hurtling headlong into a major situation in that part of the world? >> i'll start with health care, first. we're continuing to be optimistic the president is committed, he said, and all of the members of the administration have said repeatedly to repealing and replacing obamacare, working with the senate, working with the house, making sure we get the best bill. for us it's never been about the time line but about getting the

best piece of legislation that helps the most americans, and that's what we're continuing to do, day in day out that's the reason the president has asked members of the senate to come here today so that they can talk through that, so that they can figure out the best way to move the ball forward that's the goal of the meeting this afternoon, and that's the goal of the administration in terms of the cbo score, as we said yesterday, the cbo is a budget office, and while it does very well at times predicting things on budget, whether it's revenue or spending, i don't think it does a great job, and i think the administration has been clear and consistent that we don't always does a great job predicting coverage. i think we saw that given their history. they projected that obamacare, there would be 24 million people that were part of that there are only 11, and that number is dropping every day, so i -- i don't have a lot of confidence in that number on that part, but i do think that some of the places where they do

a good job, again, on the budget and revenue side and the cbo score that they pointed out is that it would cut deficits by $300 billion and taxes by $200 billion. i think those are good things and when they focus on the budget side that's probably a good thing and i think you had a second part, sorry. >> the warning to syria, what's your message to the international community, and also to the american people who may be concerned when they read a headline like that, that they are thinking that we may be hurtling towards a situation that involves the u.s. in that part of the world? >> i think that the message from the statement yesterday was extremely clear. i don't think it was a gray area it was pretty black and white. major? >> can you explain, because you went on the record this morning, what the process was that led to that statement last night? were members of the team at the state department or the defense department taken aipac by that statement or were they fully involved can you give us an idea of how the process internally worked to

deliberate that statement and then create the statement for public release >> i can tell you that leadership from the state department, dod, dni, the cia, as well as members of the administration within this building were part of that process from the very ding and fully aware. >> can you give us a time line from the very beginning? >> i'm not going to walk through the detailed process of a time line hon how that was released for intelligence purposes. >> and on health care, you just said you accept or find valid the cbo numbers on the budget side, is that true >> i mean, they are a budget -- >> the assessment yesterday? >> they are a budget office and i think on the initial numbers that we saw from that, the cutting of the deficit, the cutting of taxes, i think that's historically where they have been accurate. it's not like i've just decided that historically where they have been -- >> in terms of the public looking at this, would this administration accept the budget and revenue numbers that were published numbers as generally

speaking valid and worth taking seriously? >> i would think so for the most part i think in large, yes. >> jennifer? >> two things. one on google and one on the economic forecast. so european officials have slapped google with this $2.7 billion fine is the white house cool with european regulators -- >> at this point i don't have anything for us to weigh in on the regulations of a private company, but if anything changes i'll let you know. >> okay. i also -- on the international monetary fund, so they have lowered their forecast for u.s. economic growth down to 2.1% which is lower than what the president has been hoping for. can you share some reaction on what you think about this new imf forecast >> i haven't had a chance to dig into that, but we'll certainly circle back with you. >> jim stinson. >> you called on me, sarah. >> jim, let me take kristen and i'll come back to you. >> appreciate it

if syria is poised to launch another chemical weapons attack, isn't that an acknowledgement that the air strikes in april didn't work, sarah >> look, i think that our goal every day is to do what we can to protect life in all forms and to take steps to move the ball forward in defeating isis, defeating all efforts of terrorism and i think the statement yesterday helped to do that. >> why will a statement work when air strikes didn't dissuade bashar al assad? >> i don't know that it didn't based on what we know at this point. >> and just to follow up very quickly. was there a principals meeting, a deputy meeting before that statement was issued by sean spicer last night? >> i know that there was a routine meeting that took place yesterday. i don't believe that there was anything beyond that yesterday

jim. >> two questions given the news -- >> be careful letting nbc set your standard. >> given the news with cnn's erroneous story about anthony scaramucci, does the white house believe there are our russia-related stories from major outlets that have not been retracted and are just as false including the february 14th story in "new york times" about collusion between the trump campaign and russia which james comey called into question which many believe the cnn story was based upon >> i would have to look back at that specific story. there have been many by the "new york times" that i would probably disagree quite a bit with i think you can take it pretty straightforward that this administration disagrees with all of the stories that claim that the president and his campaign colluded with russia in any capacity, so i think he's been extremely clear that he believes that's a hoax and certainly something that's not true and didn't take place, and

any story related to that you would i think find frustration from this team here. >> the cnn retraction, does the white house now believe the news media has an obligation to review stories on the russian trump issues and retract -- >> i'm sorry, i'm not following. >> do you believe that the media should go back and look at anonymously sourced stories on russia and trump and, you know, maybe start a review process and retract where necessary? >> i think that would be a great idea i certainly don't think that you would get arguments from us if there were retractions from outlets on fake stories, but i also think that, you know, there's a moment where we can all do better, and i certainly think that's what we strive to do every day and hopefully that's the goal. i know it is of many and hopefully it will continue to be of not just the news media but everybody involved in the process to continue to do better, to continue to strive for excellence and to continue

to deliver the best we can for the american people. >> sarah. >> two health care questions okay so you accept the budgetary calculations of the cbo but not the projections on how many people would be insured. what about their projections on what would happen to premiums and deductibles, is that something you said >> i think they said premiums would go down 30% by 2020. that seems pretty consistent with what we've done internally. >> but in some cases they would go up, you only accept it if it goes down? >> in general they largely predictled they would go down 30% by 2020. >> another question. the president promised that his health care plan would not have cuts to medicaid does he believe that a familiar life four making $60,000 makes too much money to qualify for medicaid, in other words, that that's just too high han income to be getting medicaid

>> i don't know about a specific like level breakdown again, there's a reason he's bringing senators over here today to talk through. we know there's going to be changes. we know there's going to be adjustments. the thing that the president was committed to is making sure that anybody that currently receives medicaid, that's not touched, and -- and that is accident with what's in the bill and that will continue to be what he fights for. >> does he believe -- he said the bill house bill was too mean does he believe the senate bill is less mean, as mean, more mean like, what does he thinking? >> i honestly haven't asked him whether or not he thinks the senate bill, the mood of it and i'll check on that, mara and get back to you. >> thanks so much, guy. >> cnn, sarah, can i ask you a question. >> sarah huckabee sanders in a wide ranging and and has come to be the norm confrontational press briefing at the white house. only one and a half questions

i'm thinking on the health care unless at the end with someof the probing on the cbo and the scoring and the acceptance of that. >> that's interesting. they are still going to have the meeting with the gop senators at 4:00. >> that will be at 4:00. >> yeah. >> and i guess the president wants to get them all together and figure out is there a way, you know, a path forward to some sort of a solution to get this passed, because as we just heard earlier this hour, if they don't get this passed, they don't have extra funds to maybe do tax reform instead of just a tax cut, so, you know, there's lay lot more at stake and especially for the whole health care system and the reaction and a lot of those have been mixed. >> just underscores what senator mcconnell said, it's a highly complex bill that is for sure. >> a little more than 30 minutes to go until the close. dow down 51 points s&p 13 and russell small caps down 8 and nasdaq down 1.3%, down 82 points right now. >> back to business. disrupting telecom news that sprint is talking with cable companies comcast, our

parent company and charter communications, and that's sending t-mobil shares lower the latest developments on that coming up in a moment. you're watching cnbc, first in business worldwide

welcome back the saga number three and number four cell phone companies which are sprint and t-mobil took some twists and turns sprint up 3% and t-mobile down that much. david faber here with deal-making. >> potential deal-making or lack thereof and the reason t-mobile is down this afternoon. >> thank you for staying late. >> you're very welcome. >> out of here just about four minutes from now so let's get to it t-mobile is down because believe believe this will put off or perhaps not allow for the oft discussed possibility of sprint and t-mobile figuring out a way to get together, and at least for the next 30 days they are not going to be figuring anything else out, a story that

"the wall street journal" broke last night indicating exclusive talks between sprint and the cable companies, charter and comcast. remember, for memory's sake, about a month and a half, they announced their cooperation for at least a year in terms of a wireless strategy that the two would try to figure out together, and this may involve them signing up what we call a mobile virtual network operating agreement with sprint. they already have one in place with verizon guys, it essentially allows them to resell the capacity on that spectrum now, people are rushing to conclusions that maybe comcast around charter would buy an equity stake in all of it. >> or joan malone. >> he may muse about that possibility and there's a lot of discussion about wireless and cable coming together at some point. this is not what they are talking about here sprint for its part may hope that there's some equity that they are able to sell here that's not what i'm hearing from the comcast around charter side. you may end up with one of the

agreements that allows them to resell sprint's capacity that would be a positive for the cable companies and potentially a positive for sprint as well as it still seeks to entice i think at that-mobile into a potential tie-up, though that does remain -- does continue to have significant antitrust question marks. >> why do comcast and charter have to do this jointly. >> they made a decision to cooperate with each other. >> you know, in part they are regional. >> cable is a great service. >> no overlap. >> no overlap, but wireless is nationwide and so there are some benefits it's also very expensive if you're going to try to build it out on your own so there are benefits to them entering this cooperation agreement the way they did a month and a half or so ago and working together on their strategy. >> right. >> it also potentially -- i would argue it paves the way for another possibility in consolidation which while our parent company won't comment on, at least if they thought they could get it done. >> exactly. >> buying charter if you're comcast and a lot of

divestitures that could go to alt-usa which went public recently t-mobile is down and verizon is down because of its agreement pushed aside if they are able to come to an agreement with sprint there soo a lot more to go here. >> i feel like it's the most exciting sector right now and you wouldn't have said that about telecoms a couple years ago, but, i mean, it's heating up. >> it is. >> and the prospect of 5g, which we talk about, fifth generation of wireless services, still a ways away and when you can get a broadband product in the home wirelessly, in urban areas it doesn't work as well or rural or suburban areas, that could represent a threat to cable. hence all of this sort of thinking about these kinds of things. >> got to hedge their bets. >> you do. >> in other words. >> and by the way, the wireless companies have to figure it out as well. >> yeah, exactly. >> thank you david. >> you're welcome. you're excused now. >> i'm out of here. >> have a lovely rest of the day. >> look forward to the rest of the show i won't be watching. >> we're on satellite radio,

too, by the way. >> exactly. >> 25 minutes to go. >> you can stream us. >> the dow is down 62 points and your satellite radio on the subway the s&p is down 15 big decliner is the nasdaq, down 1.5%. >> led lower by google. >> fed chairman janet yellen making rather controversial comments details on that coming up. >> and later the fed is on a high wire act like never before, and the markets need to pay special attention. that's what haedmomm ellerian says he'll tell us why coming up. the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average?

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check a couple of market movers jc penney shares are higher. gordon haskett research advisers ordered it hold from reduce late yesterday. the firm expects the retailer to hit its full-year same-store guidance thanks to its new mix of merchandise it has a $4.5 price target it's above that now at 4.80. >> meanwhile, tiffany is also in the green. bank of america, merrill lynch, adding the jeweller to its u.s. one list of favorite investment

ideas. the firm citing a management and board overall as well as an increased focus on innovation and that's good for a $is.78% gain for tiffany today. >> us one sounds like a highway you take in the summer. >> it does. >> up the coast of california. >> that's true. we have a news alert on fed chair janet yellen let's get back to yl ha n moi with details on the comments. >> a bold prediction from janet yellen she spoke at a conference in london much of her remarks would focus on financial regulation and the stability of the system. it was an informal discussion, and she was asked whether another crisis might strike. >> will there never ever be another financial crisis you know, probably that would be going too far, but i do think we're much safer, and i hope it will not be in our lifetimes, and i don't believe it will be. >> no news on monetary policy though she did say interest

rates would remain low, even as normalization progresses yellen also touched briefly on brexit saying that it is causing uncertainty. as for her relationship with president trump who has criticized the fed in the past yellen wouldn't comment directly but did say she works well with treasury secretary stephen mnuchin and he has respect for the federal independence of the federal reserve. back to you guys. >> thank you. by the way, the first person, people will roll their eyes at yellen's comments at the potential hubris and bill miller is the first person i recall saying he didn't think there would be another financial crisis for 70 years and it still seemed like the whole thing might fall apart again it's not -- it's not just one of those signs of the times thing where you think markets at all-time highs, no one ever thinks it's going to fast. i would argue there's still the fear baked into the marketplace. >> look at the vix at 11 you could argue that's complacency but who knows. >> by the way, you know, we don't want to spend too much time because of all the breaking news that's going on that's our job

but you have a little over an hour left to bid for the -- for this worthy cause that we've been talking about for a few weeks now. the lulu and leo fund. find it on charity buzz.com. it helps families and children foster confidence and build resistance we're so grateful that the bid is up to $25,000. >> that's fantastic. >> thank you, everybody. >> that does mean officially that i will be kicking in an extra 10 grand of my own because i said i would, and that's the right thing to do. >> yes. >> such a worthy cause. >> start writing that check. >> but the bidding ends an hour from now at 4:45 eastern time and then we will see where it goes from here, but, again, thank you to all of you. not just the winning, but everybody else willing to pony up that kind of money. that's fantastic. >> do you think we can get it to double in an hour? >> i'm not going to guess. when it popped that much that was unbelievable great to see thank you so much.

>> 18 minutes left the dow is down 55 points as we head to the close. darden restaurants serving up solid earnings today we will tell you which one of its ght an l t w feibrdsedheayor that quarter coming up (baby crying) ♪ fly ♪ me to the moon (elegant music) ♪ and let me play (bell rings)

involved over the last week. talking to members individually. we wanted to talk to all of us together today i think that's helpful, and -- and, look, legislation of this complexity almost always takes longer than anybody else would hope, but we're going to press on we think the status quo is unsustainable. >> senate majority leader mcconnell there, obviously when they were announcing that they are delaying the vote on the health care bill in the meantime, the senate republicans are heading to the white house right now. they will be meeting with president trump to try and figure out if there's any middle ground to be had that gets under way in about 15

minutes, top of the hour there. >> by the way, we're watching health care stocks a mixed bag. index down two-thirds of 1%. joining us to discuss more of the fallout, welcome to you both sheryl, first to you, the response here has been some of the hospitals selling off, some are and some of the insurers are selling off, some aren't how are you reading what all has happened today >> confused. >> right. >> state the blindingly obvious and reacting in realtime but we've seen this happen very recently with the house vote and it was very easy to declare that vote dead prematurely, so it's clearly not. this is messy politics at its best and messy stock trading at its best in a response to a very major piece of legislation with potentially very long lasting

and negative impact for the hospital industry. >> we talked about this last week we're trying to find middle ground here, but it seems like one side, you know, within the republican party, they oppose the cutbacks on medicaid on the one hand on the other side they want to see the cutbacks to save money so that they, you know, for the tax breaks, you know is there middle ground that you can see in this bill and how do you read the market responding to all of this here? >> well, health care is complicated. mcconnell just said it and trump obviously said that, so i agree with sheryl that this is sort of groundhog day. the house pulled the vote and came back to it. now we've got the senate doing the exact same thing we are at about -- better than even odds that the senate pulls this through, and it will take time to work out a deal. maybe there's a vote in july ahead of the august recess, but the senate certainly has a smaller needle to thread if the senate gets the vote

done, they will likely send it back to the house for a straight up or down vote. there won't be a conference process, but to be really honest, medicaid is the very confusing aspect of all of this. if they were to take medicaid out and do an individual market bill, i think you could get the votes pretty easily. i think mcconnell will come out a manager's amendment, slightly longer tailwind on the medicaid expansion. maybe more open yoid dollars and we'll see what comes through in the next few days. >> so sheryl, if that's the case and they leave the medicaid piece of this in place, does that mean other states will then sign up and expand that population even more will they try to prevent that from happening >> you have to define what it means to leave it in place leave it in place and cut it, probably not. >> okay. >> so, remember, they are also at the same to imgoing to have the impact of states losing 10% of the funding and what happens then under current law, so that's not going to change, unless they change an awful lot about this bill, and would i

suggest that, you know, the views that you've got to do something about medicaid to approach the moderates, got to do something about the opiate situation to address a real crisis you also have to do something about the subsidies because, don't forget, we've got age old versus young and we have coverage, so there's a lot of work to be done, but they have the money to do it, and they certainly must have the political will so our call has been this thing gets done, and then fundamentals matter for the hospital stocks again. >> why do you say the fundamentals would be negative when the day the draft bill was posted out of the senate, tenet and everything up was up 7%. >> it's less worse than the house in many respects, not all, and relief of uncertainty is paramount. consider trying to make investment decisions as a ceo of of a company in this kind of environment. six months from now the world could change completely, and you don't know which way it's going to go. so from that perspective many investors were saying this is a good thing it's less work from other perspectives they are

saying it's never going to happen therefore, buy the stocks. i think that's wrong i think it will. >> again, you were last with us, we were looking at the health-all the health care stocks going up. can you have it that way can a bill emerge from congress that will benefit the insurance companies and the hospital companies and the drug manufacturers? >> well, maybe again, the senate bill was less bad than the house bill so i think that's why we saw the reaction last week i think the drug pricing fears kind of went away when we saw a bit of a draft executive order the other good thing about passing health care is that it paves the way for tax reform, and think about the lower overall corporate rate, repatriation a lot of the republican agenda can get done if these guys can get health care done, so it's not just about health care it's also about getting comprehensive tax reform done and creating that baseline of

savings going into tax this fall >> right. >> there's a million questions still to be answered, but we don't have any answers yet right now. thank you both for joining us. >> thank you. >> thanks for joining us here. >> any time. >> let me just mention this now instead of after the break art cashin the market on close orders to the sell side by $800 million, and we have already seen some selling coming into the market here. setting lows for the session with the dow down 76 points. >> and the nasdaq down about almost 100 points, 95, a 1.5% decline and the second day of big-cap tech getting swept out eight minutes to go up >> next, we'll see what's cooking with darden restaurant earnings, and we'll count down to the closing bell as well. >> al economic adviser mohamed el-erian says why you need to

pay attention to the fed's moves right now.

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directv now. a big streaming deal for $10 a month. it's entertainment your way. (baby crying) ♪ fly ♪ me to the moon (elegant music) ♪ and let me play (bell rings) welcome back tech stocks are getting hit hard in the final minutes of trading. as mentioned, the nasdaq is down nearly 100 points.

susan lee is back at headquarters with the details. >> i want to show you what's happening other at the nasdaq because we're looking at a second straight day of losses and all comes down to technology, namely google and alphabet trading at its lowest level in a week after google was fined, of course, in the e ur by $2.7 billion, the largest fine in eu history for manipulating search so that dragged down a lot of the tech names also a lot of biotechs trade other at the nasdaq as well and given the uncertainty over that health care bill and the senate, again, looking at it after july the 4th and that hit some of these biotech names as well. but i want to show you what's happening in restaurants, in darden restaurants outperformance in the markets. locking at darden, we're trading at record highs, the highest it's traded since 1995 going back to the ipo. it was a strong quarter for the parents of olive garden and longhorn restaurants those are the two brands that really helped them out in the throw months what is arguably right now a soft casual dining market. also in the conference call we

had dardens and management having to defend itself against the delivery trend and a lot of analysts wondering what they are doing about it it. well, darden says, guess what, 0% of their customers and diners are millenials those are the ones probably more susceptible to ordering their food on their mobile phones instead. they are saying people are still eating out and earnings were pretty strong in previous months and why they lifted dividends by 12.5%. talked about amazon, darden ceo gene lee saying we constantly sit around here thinking about how does amazon have an impact on our business. even if you're a restaurant operator like dardens, you still have to think about the looming amazon risk. guys, back to you. >> yeah, everyone has got to think about it i think about it alexa, one of the stock quotes bill, over to you. >> kelly, we're taking it to the close with two and a half minutes left to the trading session. this really was the big story of the day and i got lost in the

sauce this morning the pop in yields across the pond in europe i mean, the ten-year in germany and spain and france and italy, all just skyrocketed after mario draghi used the word reflation in his comments. he's not worried about deflation anymore. he thinks that the economies are going to be row boabust enough. look at the ten-year on the german bund, it was up 16 basis points and took our own ten-year higher as well, not nearly to the magnitude that you saw in europe that was a huge story, and then we all got obsessed with health care reform, and speaking of which, that xlv that we watched, the health care etf, anybody's guess. look at that it's higher and lower and anybody's guess what happens with the delay in the vote everybody has got their pet portion of that bill that they don't want touched, but, yet, everything seems to be on the table, and who knows what comes out after they talk, but, again, they will be holding a meeting

with the president, the republicans and the senate at the white house in just a couple of minutes here. the dow for its own account, we're going out on the lows of the session, some selling here on the close today energy stocks were higher, but technology was lower that seemed to be the trent for this day, and then we get some earnings from kb home, interesting to see from the big home builders. >> the important story is the senate delaying the vote, the impact on the overall markets, immediately pushing the trump agenda out a little bit more and big momentum names in the market, for example, the f.a.n.g. stocks were all notably lower and another big momentum group, specters and the xsd, big decliner among the sub groups, look at that, down almost 3% overall, so i think the impact on the market and agree with the point on mario draghi. this guy has a lot of nerve. talks about reflation -- we're bringing back reflation and he

says our stimulus program still has to stay in place because deflation targets aren't being reached. how do you even say both of those things at the same time and the market thought it was no news when it used the word reflation and that was the big mover on the day. >> thanks, bob. stay tuned for the second house of "closing bell" with kelly evans and company. see you tomorrow, kell >> thank you, bill, welcome to "closing bell," everybody. i'm kelly evans. quite a downturn at the close here it looks like the dow is shedding almost is hundred points on the dow. one of the biggesties in and sure enough the vix has jumped to the super level of 11, high relative to the lows that we've been seeing for months in any case, that's about nearly half a percent drop for the dow to close at 21,315 and s&p 500 shedding 19 points to 2419 and the russell 2000 small cap down

1% or 13 points and nasdaq composite down 1.6%, a close of 6146 much more on some of the weakest performers over the last couple of sessions as we're about to rotate into the back half of the year gop senators are meeting at the white house right now after announcing the vote on the senate health bill will be delayed until after the 4th of july recess appearing to play into the selloff we bring you all the developments out of washington and any remarks from the president or senators after that meeting, any reports out of it, of course, and health care reform isn't the only hot topic on the hill. coming up, union pacific ceo lance fritts will join us in a first on cnbc interview to discuss president trump's plans for infrastructure the coal industry and for trade. joining me today is cnbc senior markets commentator michael santoli, mohamed el-erian and robert cox from breaking views welcome to everybody michael, let's begin with the action and what you think is

going on here. >> the question for two days, kell de, is can the selloff that's just routine pullback in the large tech stocks be absorbed and kind of compensated for by other areas of the market yesterday it did and today the choreography broke down a little bit. only financials are up as the yields were up globally as bill was just talking about, so i do think it's a little more ragged and maybe something overdue. i would point out the s&p 500 closing at 2419. it's up about 8 points this month. >> wow. >> so if you think about basically a flat month, might do the markets good because if it's up again up eight months in a row and only once it's been up more than that it needs to cool a bit. >> we're off to a tremendous start. s&p up 9% and dow 8% year-to-date and the nasdaq is up 16% for the first half of the year, the best start since 2009 when it was coming off a dramatic financial crisis. the biotech, the xvi, etf, up 2% this way and tech up 24 and health care 17

mohamed, how important do you think it is that health care vote won't happen until after the july 4 recess? >> what's important about today we got three bits of news, one of which was positive, two of which were negative. the positive was commentary out of europe that the economy is doing better the negative, what you just mentioned, a have you in the marketplace that policies will be delayed, pro-growth policies will be delayed and let's not forget central bank commentary they are getting more hawkish and more worried about financial stability, and that suggests to the market that perhaps they are not going to be as supportive as they have been in the past >> you know, janet yellen owes comments today are important in that regard, but i didn't hear from her the same kind of talk we've heard from some of the other officials, mohamed, where she might push back against market prices or allow those to be a main consideration here.

>> yeah, but remember the list we've had so far in the last three days we've had stan fisher, the vice chair of the fed, we've had bill dudley, the fed both viewed as dovish financially and mario draghi and mark carney and had the bis, so you're starting to get some critical mass of central bankers saying, you know what, it's not just about the economy doing better, we're starting to worry about the consequences for financial stability. >> yeah. rob, i wonder if people -- you know, let's assume as this tightening happens hand more bonds are sold from, you know, central banks into the marketplace, if yields move up a little bit, there's probably plenty of buyers out there, too. i mean, we've been at such dramatically low levels, you know, it could be enough to keep a lid hon things from moving conigliaro. >> it could be, we don't know. years of buying from central banks, so we're about to test all of that, but i just want to -- actually i thought what

janet said was really positive, right? she said that there will be no financial crisis in her lifetime, guys shouldn't we be celebrating? >> i know. i'm getting a lot of heat because, you know -- all i'm saying is even if the institutional investors, you love this market and think it's going higher, rob, i still think the broad public does not. >> yeah. i mean, look, mohamed had it right. bits of news out there i actually think the positive stuff is coming out, not in the states we're having a governance problem as we saw with the health care debate being pushed back we've got -- we've got a bunch of issues in the states whereas europe, i think actually maybe the lack of leadership might push the europeans to get some things done. daresay the italian banking crisis is resolved, but it's certainly more resolved than it was when we closed on friday you see stuff like activism. i mean, the fact that within a few days of dan loeb putting his letter out, nestle has decided to buy back 20 billion of stock

and probably do a lot of other stuff. it seems to me there's more upside across the pond at the moment than there is here at home. >> we'll have more of the mega buyback. stay right there the republican leaders are headed to the white house after the senate delayed a vote on the health care bill eamon javers is there with much more eamon? >> we're expecting pictures of the republican senators here after the collapse of the effort this week to get that health care bill passed up in the senate we're told that reporters will be going into the meeting momentarily and pictures for you as soon as we can get them and meanwhile the white house today in the norm of sarah huckabee sanders offering a fairly muted response to the decision by the senate majority leader, mitch mcconnell, to press pause on this bill and simply abandon the effort to get it done before the july 4th recess. here's what she said a little while ago in the briefing room >> we're continuing to be optimistic the president is committed, he said, in all the members of the administration have said

repeatedly to repealing and replacing obamacare, working with the senate, working with the house and making sure we get the best bill for us it's never been about the time line but about getting the best piece of legislation that helps the most americans. >> so the white house saying it's not about the time line here that's about getting the best legislation. the question is how are they going to get past the stumbling blocks that led them to fail this week in getting that bill done it's not clear where the deal is that they could make that's going to make moderates and conservatives in the republican party on board with this because we know that democrats are not going to line up to vote for repeal of obamacare, so maybe in the east room or here in the white house today they will be able to get some deals done, some deals on the table at least and get a path forward here for after the july 4th recess. kell >> eamon, thank you. >> guys, quickly before we have to move on mohamed, it was suggested earlier the president should maybe have 12 republicans and 12 democrats come around the table and say to them you guys figure it out but i don't think the democrats have really any

incentive to participate in that what's the way forward and what does it mean for tax reform, do you think? >> so i think markets are worried as to what it means for tax reform having said that, kelly, the market wasn't betting on a massive pro-growth set of legislations out of washington i think the market has reduced that expectation we are now dependant on liquidity. remember, the three sources of liquidity, central banks, and that's looking like diminishing, corporate balance sheets, that's not stopping and the buyback story is important here, and also what's coming out of households and in particular which households who are willing to buy on the dips so focus on the three sources of liquidity and see how they balance out over time. that's what's going to determine where the market goes from here. >> rob, anything you would add >> no, i mean, that's exactly right. the central banks are no longer going to be mopping up everything that comes out there, are but, you know, it's not like corporate balance sheets aren't robust as we saw with this nestle thing

today, $20 billion at the drop of a hat that's a lot of liquidity. >> i mean, all that is true. i do think when we talked about the central banks focusing on financial stability and risk-taking, they are not talking about the average guy in the street buying tech stocks. they are talking about the institutional chase for yield and basically junk bonds in europe are 2.5%. >> oh, my gosh. >> 5.5%, that's crazy. >> they are at 2.5% in europe? so you're telling me the riskiest companies are able to borrow money at 2.5% over ten years? >> here it is. >> here it's 5.5%, 6% in the u.s. >> that's extraordinary. >> and as long as that stays the case, then equities seem like they are kind of insulated, but if people start to think that central bankers are a little more resolute about changing their stance, they be that comes into question. >> all right we did have some earnings this afternoon. kb home just crossed let's hit these quickly with our diana olick. diana? >> reporter: a nice beat for kb

home they reported revenues up 24% to $1 billion and earnings per share rising 94 cents to 33 cents a share hand street was looking for 36 cents a share ceo jeff metzger said they produce income margin combined with backlog and positions for meaningful improvements in our results going forward. he says about the housing recovery, it continues to be on a steady path supported by favorable industry fundamentals. recent improvements in consumer sentiment and employment combined with relatively low mortgage interest rates. he does note there's insufficient supply to satisfy the current demand for housing especially on the existing home front. average selling price increased 11% to 385,900, a big increase but not as big as the street was looking for. we're waiting to see the lower priced home. still, that's above the median sale price that we saw in may

from the commerce department, so still pretty high. still gaining in prices. not getting to that low entry point that we would like to see but a nice beat for kb home. kell >> shares up 2.5%. diana, thank you back to our guests mohamed, were you about to say something? >> i think mike made a very important point which is if you look at the corporate bond market and high yield, an absolute sense, it seems very expensive and in relative sense it doesn't, and that's what has attracted people now, why should you worry? because while the central banks may focus on particular market segments, they only have one great pedal so when they press one brake pedal or accelerate less, it has an impact on markets as a whole, so he's right it's not all markets that are ridiculous but only one brake pedal when it comes to the central bank. >> meantime, michael, does the latest from kb home fit into this at all, this idea, you know, that we've talked about how the stock market is doing and home prices rising as well. >> yeah. >> you know, is this going to be

a replay of the last cycle where asset prices are rising and inflation isn't and the fed has to figure out what to do. >> i think housing is the one area that still is so much in catchup mode and it was a completely misaligned market it was okay for housing to do well. nowhere near building those excesses and kb home looks wonderful over the last year and look at it over ten years it doesn't look impressive. >> and mr. cox, the last word to you. >> i still wonder about household formation when you decided to close your borders, and -- and you've decided to slow down immigration. i think long-term, i don't -- who is going to replace -- who is going to be in all those homes? still don't quite understand how we'll ever get back to those fabulous day disease of 2004 to 2006, i don't think we ever will and there's still a linger belief in the market that that's still something to shoot for. >> all right. >> guys, thank you again for joining us here. rob cox, mohamed el-erian to kick things off this hour. moving on to another big story of the day, some cyber

attacks, big ones, sweeping across the globe, targeting various businesses and demanding ransom money through bitcoin russia's biggest oil company, ukrainian banks, even maersk is a victim sir, thank for being here, micha michael chertoff. >> the scale of this is obviously transnational and still under folding. we've seen it in russia and in the u.s. we're going to see more of it, and it seems to be a variation of the wannacry ransom attack that we saw some weeks ago which, again, had a real impact on the health care system, so i think that this is going to be with us for some time going forward. >> so if i'm merck and this happens and -- and they say, okay, we're only going to unlock your systems or whatever the case may be if you pay us 1,000 or a million or whatever amount of money in bitcoin, what is merck other any other company to

do here? >> i think paying ransom is a big mistake because with hostage-taking as with human beings it encourages more of the same it's all about preparation, first of all about making sure that your patches are properly configured, that you've uploaded the most recent messages that come from your provider to make sure you are patched against vulnerabilities. it's about backing up your systems and segmenting your systems so if there's a penetration in someone spot it doesn't infect your entire network. if you don't prepare, you're just leaving yourself open for more and more of these attacks in the future. >> let me ask an unfair question are cyber security firms doing their job. this seems like pretty basic stuff, either to be able to identify weaknesses and accompany system or at least to identify a hack as soon as it's happening and maybe, you know, put up some firewall or prevent it somehow is that a fair observation or no >> i think there's some truth to that but i would go and say a

lot is the responsibility of the customer the customer has to -- when there is a patch, has to install the patch. the customer has to understand what devices are part of the network so you know to check that all the devices have been properly upgraded. in other words, it's like having a flu vaccine. if you don't get the vaccine, it's not going to help you, and that's what we often see. >> michael santoli here, as we think about the vulnerabilities and increasing pace of attack, it's not corporate america which could write as the ceo of walmart put it blank checks to make sure this doesn't happen, it's also infrastructure maybe they don't act in precisely the same way, but the vulnerability is there. >> going for the weakest link is always the way to go in this case it's a profit motive it's mostly going to remain corporate, and i do think that's why people keep talking about best practices and making sure to follow the standard practices of cyber security. i guess i do wonder longer term about how the authorities fit

into this, whether it's tracking down the networks or trying to come to some agreements across borders with just how to deal with the threats. >> you make a good point profit is the motive. >> if indeed it is. >> if it's terrorism it's something else. >> all right stand by, everybody. we're going back to the white house where the president is meeting with republican senators in the wake of their decision today to postpone a vote on the july 4th bill. we'll come back to that in just a second looking, michael, for more context on exactly what's happening. mr. chertoff, back to you quickly. i hope i don't have to interrupt you quickly, but what would you advise policy-makers to do at this point is there another role that they could play >> i do think there's a need to have international cooperation on this. the russians also paid a price as we observed recognizing the way we view cyberer security in certain areas. certainly with respect torance comeware and criminality there ought to be an agreement and tracking down the people who do this, tracking down where they

put their money are all ways can you start to push back on this increasing endemic >> anything about what happened today that's different to you than, you know, the recent rounds that we've seen anything that stands out >> i think what happened is there were different attack investors. the news isn't fully in on this, but in addition to using the exploit that was used with the original wannacry it looks like there was some downloading from e-mails that people clicked on again, that's a persistent problem when people aren't properly trained about how to know when to click on something and when not to click on something, so the malware is out there, but we're going to see different ways in which people use exploits to try to get into networks. >> thanks again for join you go today and we see the cyber stocks selling off don't want to draw the connection per se, but an interesting thing to note. that's michael chertoff. european union slapping goggle with a or report $2.1 billion trust fine

whether there's concern of google's alphabet and other tech companies have bece o omtobig to avoid the antitrust lawsuits stay with us

welcome back tease time for today's fast take we begin with nestle announcing a huge buy bark, a $20 billion buyback today, michael over three years admittedly. an activist stake was taken in the company. do you think this is a good move >> i don't think it was off the table before the dan loeb investment less than 10% of nestle's market cap over the years, a huge number but not a radical rejiggering. >> next, blue apron is turning

to more ads and free offers to attract customers as it prepares its ipo which may spook some investors but pretty good for the podcast industry. >> you have to get the word out. customer acquisition cost is basically the big thing hanging over a lot of the subscription-based or kind of internet of things, whatever you want to call the whole thing on-demand economy, and certainly the thing that jumps out of a lot of people with this ipo, an untested business model and let's be honest. no real way to scale it. you're chopping vegetables and putting it in boxes. >> next, ben axler's next short is irobot, the maker of the roomba shark ninja is launching its own cheaper robo vacuum. should rom babe worried in. >> the market agrees it should be worried i remember when irobot became public as the roomba company and the company said no, no, no, we're not about vacuum cleaners. we'll automate the world yes, they are trying to do that, but, yet, price competition in the roomba is still the big thing that matters.

>> i love that. >> and finally isn't this a sign of the times there's going to be a quincy jones etf ticker qj launching in september with 2,200 companies and quincy not even involved in picking the names. >> kind of entered the sort of empty celebrity branding phase of the etf boom. i mean, it's basically pure branding nothing else. >> all right president trump meeting with republican senators on the health bill delay. let's listen in. >> we'll discuss health care we have really no choice but to solve this situation obamacare is a total disaster. it's melting down as we speak. rate are going up. in fact, it's very interesting, lisa, that you're sitting next to me because in alaska it was 206%, a 206% increase in alaska, and i used to arizona as the standard that was 116%, so it's really meltdown, and we're going to try to solve the problem, so i invited all of you, and i think we have either 52 out of 52 or

50 out of 52, and, john, either one is pretty good i think as a percentage. so we're going to talk and we're going to see what we can do. we're getting very close, but for the country we have to have health care, and it can't be obamacare which is melting down. the other side is saying all sorts of things before they even knew what the bill was this will be great if we get it done, and if we don't get it done, it's just going to be something that we're not going to like and that's okay, and i understand that very well. but i think we have a chance to do something very, very important for the public, very, very important for the people of our country that we love so i'll ask the press to leave i greatly appreciate you folks being here we love you very much, you're very kind and very understanding, but we will now ask you to leave thank you very much, everybody thank you. >> thank you, guys thank you. thank you.

>> >> mr. president, what do you think about the senate bill? >> i think the senate will will be great thank you everybody. >> and so that's all we get. they made the media leave. eamon javers, i didn't quite catch what the president said at the end. anything about -- anything right there that you picked up on? >> you can see the white house press wranglers getting right in way of the camera blocking them from getting the shot at the end of the saying thank you, guys, thank you, guys. white house code for beat it, but the press did get a statement from the president he said i think the senate bill is going to be great you know, the president is doing his best here to -- to sound an optimistic note, right they have had a significant defeat you don't pull the bill from consideration if you have the votes, and they clearly don't have the votes the president there saying though the bill is going to be great. it's going to be a good thing if we get it done obamacare, in his words, is a disaster, so what this is a regrouping, retrenching session by senate republicans who will have to figure out where the

deal is that can get them the votes. what do they need to change in this bill in order to get it over the line. remember, the president learned earlier this year that pulling the bill from the floor is temporarily embarrassing and politically a setback but not necessarily the end of the line. the house had to do the same thing, but they were able to come back, negotiate, negotiate and get a bill that could finally get some votes we'll see if the senate can do the same thing the president there acknowledging that if -- if it doesn't happen, he said we're not going to like that, and i understand it, but ultimately he says he's optimistic they are going to get something done here. >> eamon, i saw -- we've got kansas senator jerry moran, and ohio's rob portman all announcing this afternoon they will also vote against the bill in its current form, so it does appear that the gulf is widening i wonder if that can all be boiled down to a few issues that people suggest that can be bought off to get their support. >> look, that's a senatorial negotiating tactic, right. if you're a senator who doesn't say that you're opposed to the bill while the bill is under

consideration because you don't want to attract a lot of attention and after the bill is pulled and you say i was against that all along that's about negotiating. you're saying i want some stuff in the bill. i want to be on -- at the table when the negotiations happen you're saying count me in as one of those people who has to be a swing vote so you expect the swing vote list is going to get a little bit wider when they reopen the negotiations and that's the challenge that the white house has. you now have to figure out what all those people want in terms of the various things that affect their states, their constituencies and particular ideology every one of these senators has a wish list or an ask list and they will all present it in the meeting in the east room that's going on right now. >> we'll see if more comes out of it. eamon javers at the white house. >> up next, we'll look at whether the european union's massive antitrust fund against google is something that others can face, too and how president trump's infrastructure plans and trade talks with mexico and canada can impact the railroad industry when the ceo of union

pacific joins us in an exclusive interview and a few minutes to bid on our charity auction to have some post-show dwinks with me and bill griffeth for an extremely good cause bidding ends in 15 minutes i don't think i've seen that bid budge in the last 45 minutes head over to our page on charity buzz learn all the details and learn much more about the cause and get the final offers in. we'll be right back. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade

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welcome back it is time for our cnbc news update with sue herera. >> hi, kell, hi, everybody 9 outambassador to the united nations nikki haley appearing in front of a house appropriations committee hearing. she was asked about a pentagon report that the u.s. has spotted potential preparations for syria to launch another chemical weapons attack >> they have seen activities that are similar to preparations of a chemical weapons attack, much like what we saw on april 4th, and i believe that the goal is at this point not just to send assad a message. >> meantime, syrian president assad visiting a russian air base in western syria, his first visit to the base from which russian jets have supported his war effort, and as you can see there, he was climbing into the cockpit of a russian warplane. dramatic video posted to social media purports to show two

children rescued after a missile attack in the suburb of damascus the footage shows a group of people digging out two children out of the rubble in a building that was hit in the air strike that is the cnbc news update this hour. kelly, i'll send it back downtown to you. shares of alphabet lower after european antitrust officials slapped a $2.7 billion fine on google for favoring its own google shopping over rivals. the eu commissioner for competition was on "squawk on the street" earlier and spoke about the decision. >> we've taken issue with the google behavior when it comes to google shopping, and we find that google being so dominant in general internet search. they have used this dominance to promote themselves and demote rivals you find rivals in page 4 on average, if you're on a desktop but always fine the google shopping unit just in front of you where we know that most clicks will take place, and that

is an abuse. it is illegal on the european antitrust laws. >> goingle in a statement said the company, quote, respectfully disagrees with the decision, unquote and is considering appealing and is it a sign that tech is getting too big and we could see more pushback coming welcome to you both. david, let me just begin with you from the by thegation piece of this. do you think there's going to be more to come i'm not saying tomorrow, but in the next years as people lock to make a shakedown of amazon, of apple, of the others >> there will be attention to it, but i don't think that there will be successful litigation here under u.s. antitrust laws certainly, the concern is in protecting consumers, and when it comes to google they are responsive to consumer demand and the way they design their products the ftc has found in a unanimous decision does not harm

consumers or competition. >> what do you think >> i think the interesting thing about it is that it didn't work, right? they favored google shopping, but it's not like they defeated amazon. >> so your point is google may have had its own ability to block competition, but even it is struggling relative to amazon >> i think the idea that google is promoting itself inside of search results is intuitive to users, and i think they know there are other places to go to the bigger question about the companies becoming too big, from the consumer experience it is true that there's a lack of competition across many zones. there's one dominant shopping provider there's one dominant search provider apple is the dominant vendor of high-end smartphones netflix is the dominant video and that's becoming more apparent. >> i wonder if you're like being punished for their success not that they can't go too far obviously, but these are also

incredibly innovative companies that have had the creative monopolies and, and, i don't know, we also know that the pace of innovation tends to chip away at that over time anyway. >> there is a paradox on the surface. you go back to microsoft and its long battle. >> exactly. >> really did make a lot of sense to have a browser inside of the operating software and have it all centralized and we get why it is like that, so it's hard -- it's harder in these cases to find explicit customer harm, right? it's free to use google and all the rest of it, but i do think the markers put down, look, can't just have a free-for-all in bundling every other service that serves yourself as opposed to getting clean search results. >> to that point, i'll direct this to you, this may be more the beginning than the end of the issue when it comes to the eu they are also probing ndroid and ad sense and android as we know kind pushes its own suite of apps within the google framework that it wants you to use. they have already paid out $3

billion. do you think there will be more to come? >> i think there will be conditioned scrutiny but at the end of the day the eu has to decide whether or not consumers benefit from google's activities, and -- and the type of arrangements they make are transparent and consumer friendly when we're talking what's at issue here there are consumers who are being deceived about the fact that these are sponsored links it's quite clear that they are sponsored links, and the eu's case takes a myopic view of snapshot view of the nature of competition. by the time this case works its way through the judicial process, competition is going to look very different, and did the and the enforcement action isn't going to be worth a candle. >> meantime, the u.s. chose not to pursue this matter and looked into it several years back was that the right decision here, and do you think there's any reason why the home territory is going easier on these home grown companies. >> i think the u.s. moves a lot

faster >> they are starting to vertically integrate their interfaces and if you look at the google home speaker, it only gives you one answer then actually the bundle becomes a little more dangerous there. it's not even seeing the rest of the blue links i think those kinds of questions are going to come out more and more >> that's a good question. we'll leave it there thanks for joining us. i didn't know balto the dog was real. >> a heroic dog. >> i'll visit the statue in central park. president trump promise is to revitalize the cool industry and lance fritts with his takes on the trump plan and later we'll head live to brooklyn to wrap up day two of the martin shkreli fraud trial. more "closing bell" after this [ indistinct chatter ] [ intense music playing ] it's here, but it's going by fast.

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[ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. welcome back kind of a tough session today on wall street. the dow is down nearly 100 points at the close, half a percent decline to 21,310. the s&p down 20 to 2419 and nasdaq down 100 to 6436 and russell down 13. a news alert on ups with our morgan brennan

what's happening, morgan >> reporter: that's right. ups is making changes to its pension plans for non-union employees affecting 75,000 employees at the company starting january 1st, 2023 so there's lead time. the company will freeze pension plans and introduce a new retirement vehicle this will will be a defined contribution plan, 40 is k-style plan with eligible employees given 5% to 8% of their compensation into the 401(k)s separate and apart from any savings match. also the company telling them employees will be able to participate up to 6% of their eligible pay and receive a maximum match of 3%. staffers hired before 2008 will also be considered for another defined contribution as well ups says it's doing this because of the increased volatility in funding future pension obligations. we've heard this from a lot of companies. its obligations have increased dramatically and has a nearly $10 billion deficit do you to regulations, rates, market conditions and believes this will be moving towards a steady more predictable retirement

expense moving forward guys >> yeah. those low rates just killing them, killing everybody. morgan, thank you. also have a market alert on oil inventories. jackie, uh-oh. how are they looking >> you saw the chart, kelly. you can see we gave back a lot of today's gains going from 4320 to 4375 in the after-hour session. the api reported builds across the board setting us up for the department of energy tomorrow. crude, 851,000, gasoline 1.4 million barrels. that's not to say that the api hasn't been wrong before department of energy can tell us something completely different and go the other way, but this is definitely not going in the right direction. traders were looking for another week where we were draw down in crude oil and draw down in gas line giving more confidence to the market and we were starting to balance out a little bit. setting up like this not a good start for crude for tomorrow's trade. back to you. >> back below 44 a barrel for wti. jackety, thank you our jackie deangelis.

energy secretary rick perry at the white house earlier today addressing u.s. fuel production. >> we talked about code a-- abot coal and the opportunity for american coal to be sold globally so the idea that we're going to be continuing to develop our -- that fossil fuel is -- that's a reality that's -- that's real. we're going to use coal as a producer of energy for years to come >> now to a company that might like hearing that. they moved quite a bit of coal ceo lance fritts joins us now. is this good news for you? >> could be. we would love to see coal being part of the industry mix for generating electricity so far it looks like it will be. i'm not sure i expect it to grow from where it is but taking a

little bit of the pressure off is a good thing. >> stacked back in 2015. is that related to the commodity price developments that we've seen >> to some degree for sure related to the fact that several of our markets, coal specifically, international, intermodal, all got a little weaker over the course of the last couple of years that. affected our top line and, of course, that affected our ability to generate operating income. >> international, intermodal, what's the competition of that in terms ever end markets? where is it coming from, going to and i guess i would also ask what do you think the priorities ought to be? >> international intermodal is largely what we consume, coming from the asia and west coast ports. we enjoy a fair portion of that business, and when our consumption gets a little weak or the transpacific trade marketplace gets disrupted as it has been recently, that gets -- that gets disrupted. in terms of international trade, that represents fully about 40% of the book of business for union pacific. >> wow. >> so we're deeply knowledgeable about trade, and we're very interested in nafta.

our perspective, we think there is a ripe opportunity to modernize nafta. things like e-commerce and intellectual property, a couple other items. i think canada, the united states and mexico all realize that, and what we hear from the current administration is actually pretty logical in terms of how they are going to address those negotiations. >> yeah. >> those are all the kind of macro issues, but i want to ask you about the business of operating railroads, too what should the view be on precision railroading. >> >> i think you're referencing hunter harrison and the model, employed at csx. what we've done is improve our operating margin by 2,500 basis points. >> that's 2,500 basis points would be about 25%. >> 25 percentage points. >> wow. >> so we've been at it a long time we understand the role that productivity plays in generating an enhanced operating margin or operating ratio. likewise volume, likewise price. as we look forward, right now

we're america's most profitable railroad as measured by operating ratio, and we anticipate improving that operating ratio. we've got a whole series of projects under way right now to do that. we're not shy about learning from other companies and other leaders. >> have you adopted any of those approaches >> we've adopted approaches that we've seen, for instance in, canada if we look at our low horsepower locomotive fleet which is largely used for switching cars and for local service, we've reduced that by about 25% over the last two years we learned some of those lessons from our operating peers in canada and how they approach their market. >> can i ask you as well about an east coast issue as well but a big one, what's happening with penn station and the amtrak corridor delta apparently raised their hand and said i'm happy to give this a try your colleague is going to help him because as rick pointed out he's not a railroad guy but knows how to turn around a big

transportation company what are the issues at amtrak that would you sort of -- that you would diagnose right now i mean, is it funding? >> yeah. to some degree and maybe to a large desee grow so you think about amtrak's asset base, and -- degrees, and so you think about amtrak's asset base. if we have a cash flow that can handle, 3 billion in capital a year amtrak doesn't have a steady reliable funding source. their ticket revenue doesn't cover it the subsidy from the government is always in question and in jeopardy so -- so they have a pretty heavy lift in terms of solidifying a cash stream for what's a big investment stream i have confidence in wick, i know him well, and he's identified the challenges in terms of capital investment and now it's a matter if the country values amtrak it has to step up and support it. >> and do they value amtrak through its entire span of operations, right? you can segment it into areas

where economically it makes sense in the country and where it doesn't. >> that's a great point, michael, right we're a host of long-haul traffic on amtrak, and i'm sure it is heavily subsidized in the services that we provide and host maybe not so much on the northeast corridor regardless, in its current footprint it needs capital funding. >> i understand mark zuckerberg recently came to pay a visit to the company. what was that like >> he in a brief but meaningful visit he came out and visited our north platte facility. it's the largest switching yard in north america we think perhaps in the world, and i think his observations were freight railroads are very important to the country they generate excellent jobs for essentially high school educated employees. our craft professionals love those jobs in the middle of the united states is a wonderful place to do work and live. >> i mean, do you think anything comes out of this? if zuckerberg tweets -- posts on facebook, hey, i was here and i learned the importance of railroads to this country, i

know, what does -- what comes out of that, do you think? >> well, he gets congratulated by the ceo for joining the club. >> and that's enough. >> thank you so much for being here, lance. really good to speak with you. >> thank you, kelly, thank you, mike. >> ceo of union pacific and an important update the bidding on our charity buzz auction has officially closed here so drum roll, please, if we can go try to figure this out. do we see the dollar amount? the winning bid to hang out here on me and pill and moved to post-show drinks, more than $25,000. thank you to everyone who participated thank you for being so generous. you can still, by the way, go donate to the cause, learn more about it there's no reason to stop now that it's over it's day two of the martin shkreli tribal plenty of fireworks already. we'll head to the courthouse next and grocery stores under pressure after amazon noanunced their plans to by whole foods. the ceo of kroger weighs in come

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welcome back day two of martin shkreli's stril and it's been a contentious one. megan is outside the courthouse in brooklyn with the latest. >> hey, it's day two of the martin shkreli trial or day two of jury selection. they are making progress in whittling down the jurors to start this trial they have gotten through the questions of scheduling that whittled down a loit of people, but also the questions of whether a people had bias about him coming into the trial. now they're getting into the narrowing questions. asking people whatever they've heard of drugs like -- which is is drug he hiked the price on

$5,0 5,000% his former bo tech company the morning started without a little drama, ben brafman cited the cover of today's "new york post," jury of his jeers, talking about. s opinions that jurors came in with asking mistrial based on the reporting around some of those opinions saying that it could impact -- jury the judge dismissed that and jury selection is proceeding shkreli making some characteristic faces toward the press area toward this part of the morning. when they were reading some of the more colorful comments the press quoted, so if history is a guide, this is going to be full of fireworks here. we are waiting to see whether the 12 jury pool can be selected along with six alternates then we'll wait for opening statements >> that's right. they need the six alternates,

too. i forgot about that. thank you. kroger falling nearly 6% since amazon said it's buying whole foods. up next, the ce weighs in on the deal coming up on "fast money," jim says the bill is far from dead he'll reveal why in the 5:00 p.m. hour.

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when amazon announced it was buying whole foods two weeks ago, the news sent investors buy surprise kroger got hit hard falling nearly 10% that day and raising questions about their ability to compete with amazon. earlier today, their ceo answ answered some of those questions and told us how he reacted to the thus >> for me, it wasn't as much of a surprise as it was for others. you could tell amazon wanted to do something from a physical asset standpoint and i think whole foods is a great fit for them we don't see this deal as any different from anything else we know in retail sh it's going to constantly change and the change is only consistency, what we find is for some events, the customer likes to come into the

store, visit with family and flends and our store associates and learn more about food. other times when they're in a hurry, they want to drive through, pick something up or get it delivered to their house. >> and here's what mr. mcmullan said when asked whether kroger would make competing bid? >> we won't talk about specific transactions, but i always tell our investors, you should assume we look at any potential opportunities. we feel great about the financial structure and flexibility that we have to be able to do whatever we think is appropriate. to continue to grow our business >> he seemed pretty upbeat >> i think one of the take aways is that this is always a very competitive business it existed before walmart got in i think also, it's got eight times as many stores >> i don't think they're going to feel that as a new type of threat i think what the market is try

ing to sort out, was that initial panic of the bad earnings response and the amazon whole foods new, had a couple of fridays ago, was it overdone because the stock has stabilized >> it's down 34% walmart has not made a competing bid as jpmorgan and some others suggested it could or shouchld therefore, it seems like the amazon whole foods deal might be what we get. >> you see it's still trading 56% above the value of the $42 shared bid and to me, that's just the market putting a little bit of a bet on the outside b that somebody else comes in. i do think it's most likely going to be amazon >> do you think the guy should be a little more on guard? i know he's not going to talk like that, but you know, do you think they are, we have people saying they need to be in a board meeting tonight. >> they can't do the deal. i don't think they can win that deal, so i don't know what you do beyond that except manage the 1.5% profit

margin and do better and hope for food inflation some day. >> they have good chicken salad. >> i like the way he said people like to come in with family and friends. kind of a supermarket ceo. >> when does that happen i miss it. thank you so much. that does it for "closing bell." "fast money" agabegins right now >> "fast money" starts now live from the nasdaq market side overlooking new york city's time square, your traders are -- tonight, the fate of the gop health care hangs in the balance. can president trump's agenda survive the turmoil? axis cofounder will give us the latest plus, we're clawing at the summer of discontent for tom lee. one of the most accurate strategists on wall street is suddenly getting a number of big sector bets wrong. but get this he's doubling down on his most controversial calls. and later,