discount to the market with a 2% dividend. >> i'm all about mid-cap best of the russell 2000 >> i like that thank you for appearing. appreciate that. more on this market selloff on "power lunch" right now. >> brian, thank you very much. welcome, everybody i'm tyler mathisen and here's what is on the menu. tech takedown. the big names selling off this hour technically, we are tracking them and we'll tell you which ones they are and what to do about it tech is getting battered and financials are rallying. boosting to the levels we have not seen on the big banks since before the financial crisis. you realize that financial crisis really began ten years ago. are the big banks back and are they now the new hot dividend play we'll explore that one

and happy birthday to the iphone ten years ago today steve jobs unveiled a product that changed the way we all live. but what will the next iphone bring? what could be smarter than the iphones we've got now? we'll explore that and more as "power lunch" begins right now welcome to "power lunch. i'm michelle caruso-cabrera. nasdaq is the biggest loser percentage-wise and nearly 2% decline. dow jones is on track for the biggest one-day drop since midway bob pisani is at the nyse. what's going on? >> it's a good sign of rotation in the market. that's what has been keeping up stocks all year. semiconductors are the losers today. what have been the losers?

banks and energy what are among the few winners today? banks and energy this is rotation, folks. we're seeing heavy volume. the triple q, big volume there that's a sign that people are using it to buy other things meantime, value and growth are getting a lot of interest. what's value mostly energy. growth is a problems txy for fa stocks, so your apple and amazon and microsoft. everything is down 2%. energy stocks and bank stocks are coming to the fore a little bit. even chevron is up general electric down fractionally you can see this kind of rotation going on. this is very healthy, folks. look what's happened in the first half of 2017 look how unusual it is technology up 17% and energy is down almost 14%. that's a 31-point spread between

technology and energy. that's huge. it's very unusual to see that. it's good to see people saying, okay, let's see those tech stocks and that's a great sign for the markets as we head into the second half of 2017. guys, back to you. >> that's a rundown so far of what has happened in the stock market a number of big cap stocks are falling below key level. dominic chu is tracking those. >> michelle, people use the 50-day moving average, the average price of a stock it's just one factor one of these trend lines that people look to look at the technology etf the purplish line is the 50-day trend line we're trading below there for the technology sector overall. it's being driven by some of the biggest names that we talk about on a daily basis apple is below the 50-day trend line

the biggest stock of them all. turn around to microsoft, a stock that has seen record highs not too long ago but now trading below that 50-day trend line a big mega cap name to talk to alpha bat class a shares, trading below there as well. and then we end on one that's not technically a technology stock. but amazon.com, it's hovering right around the 50 day. nearly a quarter of the s&p 500 starts to show weakness like this and traders are concerned that it's not the end all be all. back to you, guys. >> amazon i think is a tech stock but thougnot officially let's bring in kevin o'leary and jerry. big rotation, as bob pointed out. should somebody follow the rotation happening today or is

this a one-day thing >> there's a great case to do just that. what happened with the stress test and where short-term interest rates are more than supportive of these bank names this is a sector that has yet to get anywhere close to the pre-2007 levels. if you get those companies now that are able to release capital buybacks, increases in dividends and then you see a follow-through in terms of top-line growth, these are some of the cheapest stocks in the market and i don't think it's random that we're seeing this kind of breakout what's interesting is that it's happening almost as a baton handing off between tech and financials at a time when financials seemed -- tech seemed a little expensive you've gone from very overbought to some of the very underbought and it's what will support the market the rest of the year. >> kevin, do you agree with that the money is not leaving, it's just going to different places. >> no, i don't agree with that

i think what's going to happen is you get a correction on these types of stocks but nothing beats their growth metrics it's very hard to say that any bank, any moneys in the bank can have the growth metric that facebook has that touches every sector of the economy by advertising dollars from everywhere else to itself. i think if you look six months from now, you'll see the tech still outperform financials. the other thing that is troubling me a lot, these record buybacks of their own equity it's telling you that these infrastructure companies that should be supporting the rest of the economy cannot find anywhere to put their dollars except to buy their own shares that does not bode well. >> go ahead, tyler. >> basically, it seems to me what they are saying, to your point, we cannot intrinsically grow, help eps

>> i think it's more sinister. >> i thought you would think that. >> i look at it this way if you're a jamie diamond, you're constrained in terms of how much leverage you can put on your balance sheet and why take that risk. instead of putting the cash out into the economy, i'll buy my shares back. it's wrong it tells me we have not fixed the core problem you ask why we don't get back to gdp growth it's too much regulation on infrastructure banking and way too much regulation at the state and municipal and federal level, frankly. >> jerry, we focus so much on these sort of sexyier stocks but you like the nuts and bolts that makes the stuff that sexy stocks needs, like applied materials, for example. >> again, i don't disagree on some of the big high-tech names. let's focus on another 150 or so names that have been very

attractively valued that are in parts of the economy that are doing very well. applied material, kind of the arms supplier to the semiconductor world, has got a really cool sector in building these l.e.d. screens for all of the cell phones that are out there and that's just getting started. you lay all of the memory device growth that's underneath this company. you don't have to worry about paying 1,000 times earning for this and don't be surprised if the market has this transition to those types of names because they are out there and it's what makes the market so healthy. also, don't be surprised to the notion that it's bad there's been over a trillion dollars in finance in the last ten years and to see that happen in banks for the first time in ten years isn't a bad thing. >> it could ultimately help and i was going to ask you if part

of what happened with the bank is pent-up demand for the things they would have liked to have done except the regulators said you can't do that and now they are finally unleashing it. doesn't that at least in the short term do something for the stocks >> yeah. the buyback is an unintended consequence of being too narrow and restrictive. the banking sector is the only sector in the entire economy that you can call true infrastructure for all other sectors. i don't care whether you're small or large or mid- you need a bank. and we have a situation over the last decade where we've turned the banks into something that's so highly -- >> they can't make money lending money. the rates are so low that the spread that they would get from lending money, it's so small they feel it's not worth their risk why would they ever do it? that should be your evidence.

>> during the financial crisis, we thought, oh, the banks are going to be regulated like utilities. >> and that's what has happened. they can't maximize their opportunities. >> jerry, thanks very much kevin, stick around. i'd like to involve you in this text conversation. tech getting whacked the financials are on fire bank of america, citigroup, wells, boosting big time and buying back stocks dividend yields around 2%, something we haven't seen since before the financial crisis. are banks the new hot dividend play chris is senior analyst at oppenheimer. i assume you've heard the foregoing conversation what's your reaction there are banks basically doing with buybacks what they can't do with -- in terms of growing their businesses organically >> i think that's not the right way to look at it. if you look at the simple math

of banks, a well-managed bank will earn a 12 to 15% return on equity and if you look, you know, gdp is currently at 3 or 4%. if you look at bank loan growth, it is, in fact, you know, 3 to 4% and a well-run bank is earning 14% return on equity so they then have a choice either they can plow that extra money into dividends, which sticks them into a fixed payout, they can do acquisitions which hasn't always worked out right, or they can chase more of the asset and lending opportunities. >> so my question would be, do you see them as growth stocks or do you see them as fundamentally government-regulated utilities and, hence, dividend stocks? >> well, i guess i take it a

point somewhere in between they certainly don't have the growth of tech on the other hand, since we're drawing the analogy here, more money than facebook, amazon and netflix combined so there isn't growth but there's a huge base of profitable earnings and the question is, if you force the banks to retain that, which is what the fed had done up until now, they had been forcing the big banks to retain their capital and so the capital ratios over the last two years, the big banks went from 10% to 12%. it gets harder and harder to earn a decent return when you do that now with these elevated paybacks, i think the importance of this for the banks and market, is that it's going to, over time, let the banks right size their capital stack so that they can then earn a decent return. >> chris, do you differenciate

between a share buyback and increase in dividend which, generally speaking, is hard to claw back? my argument being that let me as a shareholder decide how to deploy more capital. i don't have that choice when it's a share buyback do you care? >> well, a, i think it's -- well, let me put it this way the dividend blocks you in and the regulators don't like to see that and know when a bank cuts a dividend, it's a big, ugly signal to the market whereas, if you go back to the whale situation, the regulators were able to hit their brakes gently, letting them pay their dividend, wait for the situation to go back and then you drive on so i think what regulators like about returning it via buybacks,

is that you can hit the pause button. >> you don't have to lie about it you can say you're going to do it and never do it, which i don't like about it. they can say things have changed. the thing is, it makes you focus on your business model share buybacks don't. >> well, the other thing, though, to consider is that banking is a very cyclical business i can show you bank loans over the last 100 years and there are expansion every nine years and then two years gut-wrenching contractions when the banks start losing money so it is just a simple fact that, as you said, it's a basic infrastructure stock for the whole economy. but given that banks are by their nature leveraged, their sick cla kill swings are going to be more than other companies

so i think it's good and healthy to maintain that flexibility. >> you're most bullish on your price target versus where it is now is a beef processor. lucadia national also owns the investment bank jeffreys what is so interesting about this company to you? >> i think very highly of that company and management team. they merged with lucadia about eight years ago. the way it's been looked at -- i'm the only analyst >> it's a bazaar company, right? >> it's a $9 billion company and i'm the only one that covers it. how many situations are there like that? >> wow. >> it's now looked on as a conglomerate and people look at it as this weird, stuck together

thing. and what it is going to become, i'm fairly convinced that they will sell the beef business and then what it will be, it will be an investment bank with the merchant banking capability. if you think about what made the goldman sachs business model so powerful, you have an investment bank that had a good sense of the deal flow all over the world and when it saw a really good opportunity, it takes it for itself and that is where i think lucadia is headed. when it gets there -- and after they sell the beef business, i bet you a lot more people on the buy side and sell side will gravitate to that. >> we don't say that much with the bank stock, when they sell the beef stock >> this is ground chuck. >> we have some ground chuck during the financial crisis. chris, thank you kevin, thanks for sticking around appreciate it. still ahead, ee lon musk

gets boring. not bored but boring first l.a. and now things are getting serious with chicago plus, melissa sits down with the former secretary of the interior ken salazar her interview, straight ahead. by the way, happy tenth anniversary to that little guy the iphone we'll speak with the only four people who reviewed the very first iphone ten years ago before it was public and he got a call from steve jobs after really cool historical story we'll look at ape'pls future as well we're back after this. (baby crying) ♪ fly ♪ me to the moon (elegant music) ♪ and let me play

(bell rings)

elon musk is setting his sights on chicago. we'll explain that phil lebeau is live with the details. phil >> this is interesting because a couple days ago when it first came out that elon musk's company, the boring company, is working on improving transportation in cities, people said, really, how serious could this be? well, earlier today, our leslie picker sat down with rahm emanuel for a story she's doing and brought this up to him

she said, well, what's really going on here? here's what mayor emanuel had to say. >> i sent my team out there, a group of people who work in transportation and they were impressed and came out with a date in the next three or four weeks we've got dates that we're going to narrow down and to look at the city of chicago >> so they are going to continue talking. this animation was released by the boring company about a month ago and it basically shows the vision for these tunnels that elon musk's company is building. and what it could be, a high-speed rail, so to speak, vehicles on a sled that could move through southern california at a very high rate of speed it would help with congestion. it's very interesting that at least mayor emanuel is saying,

look, let's talk with these guys could they help us develop a tunnel between downtown chicago and o'hare we'll see. we're a long ways away from this becoming a true project. if you've grown up here like i have, you know these ideas sound so good but never happen we were supposed to have a third airport. never happened >> all right thanks very much, phil let's go live to melissa at the multicultural leaders conference melissa? >> thanks so much, tyler we're here at the conference and we're now joined by the former colorado senator, 50th u.s. secretary of the interior, ken salazar, also a host of other titles thank you for joining us. >> it's good to be here. >> it's energy week in washington, d.c., so i'm hoping to talk to you about that. what's your take on what the administration has done so far in terms of its energy policy?

>> first of all, the united states is in a very good position in terms of energy security and i think the progress was made under president obama and president bush and the energy legislation that was put together back in those states which has brought us a prosperous place in the world. second he secondly, i think the rollbacks from the trump administration do not make any sense at all. like the paris agreement, it doesn't make any sense in terms of the long-term narrative and policy program that we need to have to have a sustainable energy economy here in the u.s. >> the secretary of the interior currently may be viewed as pro-oil and gas, pro-coal, such as a couple of secretarial orders, one rolling back the moratorium on coal leases and

i'm wondering -- this is a very pro-fossil fuel stance th what's your take of what is going on >> i think that's the case i think the rollbacks on the hydraulic fracking rule, those are rollbacks that were not even supported by many in the industry i think people expect to know what is being injected into the underground and what is being injected into our earth. there are commonsense rules and we try to develop a commonsense approach and i think some of the rollbacks are going to come back to the prior administration as they try to deal with the reality that people want to know what's going to go into hydraulic fracturing on public land i think the rollback on coal leasing is not a regulatory issue that we have we have an economic issue because the coal industry is in trouble in the united states,

frankly,because the economics of gas are making it so much more profitable and there are incentives there so it's not a regulatory issue that's keeping the coal economy down it's other issues. >> you would agree that the coal industry should get a boost in order to help what is going on in the marketplace or is that just a natural course of events? >> it's a natural course of events right now with the economy but i will also say that as a supporter of carbon and se sequestration program, that kind of research and development needs to continue, in my view, because it's a very abundant resource and one that the fossil fuel industry needs to be doing is figure out how to fuel the economy and do it in a way that is cleaner than in the past. >> do you think that this is an administration that will help

the fossil fuel industry will they merge the renewables and suffer based on what you've seen so far? >> yeah. i think at the end of the day, the oil economy, the gas economy, it's a global economy and there's only so much that the administration can do. i think what happened over the last ten years before this administration is that the doors to alternative energy became a reality. we have more wind energy and solar energy and the energy framework is what makes sense for energy security in the united states. and we've achieved energy security i think the concept of the energy dominance to me is a threatening kind of thing that is not what those who work in this world for a long time have been trying to get to. defense leaders and energy leaders and political leaders for a long time have said that what we need is energy security and from the days of richard nixon, we got there from about

2010 to 2016 and that's what we have to protect. >> mr. secretary, thanks so much for joining us we appreciate it. >> thank you, melissa. good to be with you. >> ken salazar, former secretary of the interior. coming up, we'll be speaking to ceo james gorman, his first interview since the stress test. there's a lot to talk to him about what is going on in the market and the economy and how much banking regulations should be rolled back. >> that sounds like all of the things that we talked about at the beginning of the show, melissa, and there are issues raised in the wake of the stress test kevin o'leary was negative on how much regulation is on the banks and whether or not it can provide the wd-40 to the economy that's so necessary. >> there are certain ratios that treasury officials, fed officials are already talking about sort of softening which could unleash trillions of dollars into the economy that

could help banks and their earnings so that is all of what we'll talk to james gorman about later on. >> also, we'll review wd-40 shares. >> it's not that the banks are suffering. >> there's so much money, they don't know what to do with it. >> they are making plenty of money. let's get back to dominic chu. >> check out what is happening with the s&p because we just turned negative for the month of june not a good sign there. we're watching biotech stocks as well they are pulling back as the overall market turns lower the etf ticker ibd helping to drag down the broader index as well as they pass the new health care bill and this etf is on track for the worst day since january and you have am general, bio genera biogen, you name them. michelle, we are right near the 50-day average price for the s&p

now as well. back over to you >> what does your instinct tell you, dom, about whether we're entering or are in the traditional summer chop? >> all of the seasonal stories at the end of may for what will happen, there is a pickup in volatility it's important to note right now that the pickup in volume tirat that we've seen has been moved to half a percent up or down if we move like this today, this is looking worse than tuesday in terms of the overall moves in -- >> 250 points right there. there's 250, down more than 1% nasdaq, let's see if we have the percent change on that >> it was 1 3/4. >> yeah. so, anyhow, it traditionally works with the -- >> with the lack of volatility going into this, it could be that some say that we are due but to be fair to the bulls out there, people have been saying

that we're due for volatility for months now. >> and ironically, guys, the stock we just talked about, jpmorgan chase, it's the only dow stock higher right now. >> how long has there been a correction >> last year. >> more than a year, right >> january was the last year worst start to the year ever and the average s&p 500 stock fell 15% in about 30 days. >> but then the year ended 10%, correct? >> correct >> some people say that was the correction that everybody is waiting for, that it happened 18 months ago. coming up, a lot has changed since the release of the first iphone a decade ago. it was tiny. no storage we'll talk to one of only four ily e who were given th abitto review the original iphone and had conversations with steve jobs about what they thought.

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wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at holidayinn.com hi sha, everybody, i'm sue herera secretary of state rex tillerson publicly acknowledging his unhappiness with the pace of staffing at his department during a photo op he told reporters he'd like that process to go faster this followed his meeting with the foreign minister earlier this morning

xi jinping met at a heavily guarded hotel and xi believes the one country, two systems continues its steady process. and rupert murdoch's takeover of sky to a long investigation after finding the $15 billion deal risks giving the media mogul too much power over the news agenda regulatorshave given fox until july 15th to propose new concessions that would allow the deal to go through. and police near dallasspen the morning clearing a fiery interstate crash which included catching loose pigs on the highway. a semitruck carrying a load of pigs flipped over and burst into flames the driver was okay. i'm not so sure about the future of the pigs, however that is the news update at this hour ty, back to you. >> i was just thinking that ways -- they don't have an icon

for that >> no, they don't. they will soon now that you suggested it >> pigs on the road ahead. >> major or minor? >> that's just hog wild. sue, thank you. markets are around session lows as we watch the bigger selloffs in recent months. the dow and s&p leading the way. nasdaq up more than 2% right now. a little bit more. s&p falling below the 50-day moving average and now negative for the month of june. let's check back in with bob pisani only the financials stand between us and a much more violent down day, bob. >> yeah. and energy is holding up pretty well i'm sticking with my theme that so far this is a healthy rotation let's remember, moving away from the semiconductors and energy

sectors. there you see it we all know what it's like in the first five months of the year some of them up 20, 30% and now we're seeing a little bit of resistance is that surprising after we have those kinds of moves same with the f.a.n.g. names as we went into june, we saw resistance every one of these stocks are now down for the month of june it's not surprising when you see 30% moves and some of the big cap names. at the same time, underowned banks, yields bottomed and banks are is rairaising dividends. this makes perfect sense as for energy stocks, we stabilize around $45 who knows if that will happen in the long term. >> it's been hard to call. they've been up this week. finally, i want to call your attention to one thing it's a little early but are we starting to see the signs of another reflation trade?

crude is up 4% and copper up 3%. the ten-year yield is up 5%. all right. it's a little early. i'm just saying, i noticed it. guys, back to you. >> that's why we have you, bob, because you notice those things. happy tenth birthday, iphone first one on sale in 2007 cost a lot less and it was smaller, too. the rest, as they say, is history. josh lipton is looking at it live in san francisco. josh >> reporter: michelle, apple executives described that first iphone as a revolutionary new product and it certainly radically transformed apple as a business apple has now sold more than 1 billion iphones generating revenue of $734 billion. here's another way to think about that stat. in fiscal 2016 alone, the i-phone generated reverend nye of 137 billion that means that the single product generated more revenue in all but 35 companies on the

planet in 2006, the mac and ipod accounted for 78% of apple's revenue. today, it's the iphone that represents 63% of total sales. now, this anniversary comes at a critical time for apple with iphone sales coming off their first year of decline. investors have high hopes for that new iphone in the pipeline. that's a big reason why apple stock is up more than 20% so far this year. but what do consumers think about that new iphone ten years from now here's what they want to see >> facetiming should be more like a conference call. >> i want to be able to test for carcinogens in the air >> guys, back to you >> josh, thank you very much all right. so ten years ago when that first

very apple iphone was released, only four people were given the device ahead of time by steve jobs himself to give him a full review of the product. one of those people is steven levy he joins us now. a lot of things to talk about here what was your first take of the iphone what was your final review >> so i got it on a tuesday, i think, and on a wednesday i had to go to pittsburgh and i just took the iphone because i was only going to go for the day i got stuck there in a thunderstorm and i found i could do almost everything that i could as if i had brought my laptop so i realized right there, this is something that is transformational everything converged on this device. >> you had conversations with steve jobs about it, right >> yeah. one day i'm just walking down

broadway listening to music on this new iphone and i get a call from steve jobs, how is it doing, tell me about it. he was wondering how i was going to rate my review. >> and what did you write? >> i was pretty positive i said this is something really amazing and there was incredible hype about this, as you remember people just couldn't wait to see this even though it had been introduced publicly in january, apple sort of pulled back behind the curtain and everybody wanted to know about it and couldn't get any information about it it was being called the jesus phone. so we wrote -- i wrote and the other reviewer did, too, even though the hype is incredible, this is a device that lives up to this amazing hype. >> jobs, as others have pointed out, his genius was in discovering things that we wanted or needed before we knew we wanted or needed them >> that's right.

so when you were thinking about what you wanted in a new phone, remember when we used a split phone, a clam shell, stuff like that, he knew we wanted not just a phone but a computer in our pockets, doing everything that a computer could do and he wrote the code into how that make it happen base there wecause there keyboard in there. he said i'm going to drop the keyboard onto the screen and come up with new ways to navigate there using this multitouch with a swipe in order to navigate your way through this world and put the whole world into your pocket >> is there anything that you wanted it to do that it still doesn't do yet >> let's see i still can't really type on an

iphone as well as i do on my computer i'm not going to write long stories on my iphone. >> but you can dictate to your iphone and it's pretty good. >> that is very true and that's what i find myself doing more and more as artificial intelligence gets into the phone with siri, the intelligence assistance, we can ask her for things and it does things for us so you don't even have to swipe through the hundreds of apps. >> i'm not sure she's all that intelligent. >> you can change the voice. you can do the british guy >> are you happy with the evolution? ten years on, has it changed that much? has it changed more than you would expect or less >> it's getting better and better and better and apple has trained us that every two years we have to get a new one

and people are betting on apple to come up with an amazing iphone 8 and people are saying, i've got to get a new one there. >> is that still true? because i think the development between the iphone, five years in, was so much more amazing than ten to five and i wonder if in ten years it won't wow us as much. >> well, in ten years, i think one of your guys asked about what it's going to be like in the future when the guy who says it's going to be in your body, that's getting pretty close to the truth. it's not going to happen all at once but we're dictating to it the sensors are going to get smarter so they'll do more things for us there. and physical manifestation of the phone is going to be less important than the whole software suite that does things for us interestingly, amazon, head of apple on this with echo because you talk to it no matter where

it is andwhere the device is i less important. >> super interesting point with the last one there i was going to ask you, is there some connection to amazon and you nailed it. s thank you, steven. >> thank you. we're watching the selloff on wall street only the financials and energy sectors are higher why we look at the s&p 500 sector heat map s&p breaking below the 50-day moving average it's now negative in june. what about the bond market rick santelli is at the cme. rick >> i see the equities that is buying pushing treasury yields not now. look at the ten-year intraday chart that came close to touching 230 we have backed away a bit but we're still up 14 basis points let's look at the beginning of november for ten-year. that's the area we're playing around with after the huge selloff that pushed rates up and

really started around the election, of course, and if you keep that, let's look at the dollar index and how it progressed very similar in terms of how everything is keying off the big technical levels that we swooshed through and especially the euro versus the dollar it's surpassed its level and many believe we'll see 115 now it's half a handle or so away "power lunch" anchors, back to you. >> it's happened so quickly. is this one of the pivotal weeks where everything changed is this rotation permanent or -- >> we're waiting for more proof that we can actually justify -- >> are we going to go back down to the 2% level on the ten-year? i don't know. >> for eight years, all we did was listen to janet yellen and now it references draghi maybe this is all about europe

right now. >> big draghi. all right. we're going to meg treerll after the break because she's covering the martin shkreli trial ♪ at johnson's we care about safety as much as you do. that's why we meet or exceed 15 global regulations for baby products. and where standards differ, we always go with the toughest. johnson's.

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remember all those headlines about the lack of volatility and how slow it's been well, it's back. industrials lower by 200 points at this point. s&p lower by 1% and nasdaq is lower by 2%. financials and energy, there is the heat map when you break it down into the ten different sectors. the big momentum stocks are getting sold off and moving into value plays like financials and energy which hadn't participated as much recently. >> the first shall be last technology down more than 2% on the session. and financials after that big stress test yesterday where everybody got an "a," all of the children were above average. >> all right let's bring in matt at the new york stock exchange. i want you to pause it or answer

the question that michelle talked about a few minutes ago is this a couple day phenomenon like we've seen a couple times this year? >> we saw this recently. we were all worried about the financials and they had a one-day mini crash and then thet we had a busy june we got a lot of rebalancing and portfolio adjustments. financials are getting strengths today. where are you going to get your money to buy financials. you will rotate some of the gains you have i am not too alarm of this >> it had not had happen for a long, long time. now we have the fight of 30 days, does that give you any pause? >> what's interesting the other day that someone noticed that the vixs traded below 10

every time it dips below 10, it is worth buying it i am not worried about it yet. we have earnings coming up, that's a focus lets take washington out of the picture completely it will be nice. we can focus of fundamentals for the company. keep dreaming. >> what about the rise and yield that's coming as a result. now rates keep on rising over there. what does it mean for us >> well, you know, it is hard to say and our feds are under some of their own questions here. that's what i am going to probably looking at. are we raising rates too fast here this is probably going to bet of the financials of the banks and not only of the stress test of the standpoint but two or ten

years. that's why you are seeing money pouring into that right now. one of the sectors highlighted is energy. energy is a strong place in the second half, it is so beaten down and so much reward to this and not much risk. these are the sectors that we are seeing rotations today on a quiet end of the month type trade. >> all right, thanks so much don't move, we got more "power lun lunch" after this. we'll talk about the list of billionaires in the states gotten longer. robert frank, on who may be losing their wealth, don't move. from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off.

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all right, folks, welcome everybody back to "power lunch." i am taylor matheson the next ten years apple revolutioni revolutionized music and phones and so much more, ten years ago this day that'sthe day that steve jobs announced the birth of iphones >> it is on the horizon now for the next decade, the best of the

best, the number 5 ranked women financia financials we'll tell you where she puts her money to work right now. the market sell off housing prices and much, much more >> the second hour of "power lunch" begins right now. >> we begin this hour with two big breaking stories out of washington, d.c. new numbers out for the c congressional office lets start with the ceo. >> that's later for the most recent estimate from secretary mnuchin who has put the dates sometimes in september it was unchanged at an average of 1.9% and also predicted of inflations of 2% target next

year on interest rates, the forecast ticked up to 2% in 2018 and slight liloly in 3% in the g run. it is cutting china ease bank of ding dong from the u.s. financial system, calling it a conduated. the agency says it transported steel and cold air from china and smuggle in luxury good news. all of this comes as south korea prepares to meet the p t today >> as you noted that these are sanctions on chinese institutions, not north korean institutions, when you look at the annual report that comes out of the united nation's security council. this made it clear that it was

chinese banks that were helping the north koreans, they have been dealing their weapon programs a programs that's the hope that president trump could work with president trump xi jinping in order to put pressure oconee n north korea. >> this is an accelerating steps now. >> got it, we'll be watching secretary mnuchin as soon as he walks in right now to the nasdaq, bob, one or two things of the cause of this >> yes, over owned text stocks and banks and energy stocks. i am sticking with that theme. some biotech as well and what's weak today semis and under loved and under

armed. >> we know these stocks are under. that makes a lot of sensing with the names of the big growth names that are out there with facebook and amazon apple. crazy runs going into june since june hit, they have been resistance of all of the downside of the month of june. elsewhere, banks >> what's happening. banks announcing dividends of the last couple of days, we have been seeing banks growing to the upside and that's happening again today. again, down for most of the year energy stocks, i have no idea if oil is going to stabilize today. >> finally, i have been pointing out the inflation trade this week, i think it is a little early, pay attention because it is been helping to move material stocks and bank stocks, just a quick note on blue apron is holding up despite a lousy day,

of the trend of $10 to $11 back to you >> got it bob, thanks so much. apple iphone today, ten years old. the iphones have come a long way since june 2011. the first generation iphones have a screen of 3.5 inches, maximum storage of 16 gigabytes. now, it is doubled that. there was no video capturing features, you could watch but could not shoot it what will iphones look like in the next ten years lets bring our editor chief at the verge, mr. patel, you are first, look at your crystal ball, what do iphones evolve to over the next ten years. >> the dominance story here is convergence.

>> sorry, we have to interrupt you. lets go to the briefing room at the white house. >> as always, i will be back to answer your questions. >> thank you today the trump administration is continuing its efforts against the government of north korea. despite multiple un's security council resolutions, the government of north korea continues its nuclear ballistic missile program. today, the bank of dadong to be a foreign financial institution of primary money laundering concerns under section 311 of the usa patriot act. this bank has served as a gateway for north korea to access the u.s. and international financial system

facilitating millions of dollars of transactions for companies involved in north korea's nuclear and ballistic missile programs the united states will not stand for such action. this will require u.s. banks to ensure that the bank of dadong does not access the u.s. financial system directly or in directly through other foreign banks. this reaffirms the treasure department to ensure north korea is cut-off from the u.s. financial systems. in addition, the department of treasury's office of foreign criminal has sanctioned two individuals and one entity for their continued support of north korea's activities while today's actions are directed at chinese individual entities, we look forward to work with the government of

china to stop elicit financing of north korea we are no way targeting china with these actions we'll be meeting with china and other countries at the g-sum many it next week to further our efforts and cut-off north korea's elicit activities. north korea's behavior will not be tolerated with that, i would be happy to answer any questions >> thank you very much >> listening to the congressman introducing this of the north korea's travel ban, do the department have any kind of scrutiny --

>> i have no comments on that today. we'll continue to look at a range of options as we are serious about them stopping our activities >> financial activity that you are trying to stop today and the access of direct and in direct of this particular bank and the u.s. financial market. >> this is significant since it is the first bank that we cut-off under this and, we'll continue to look at these actions and continue to roll out sanctions as i said in this case, it is millions of dollars, we are committed to cutting off all illegal funds going to north korea. >> yes, when we put sanctions >> these banks will not be able to access the u.s. financial system directly or in directly so it is a significant action. >> you made clear that this is not a punishment against china

but the white house wants to put pressure, are you satisfy that china will see it that way and what china is doing currently. >> president trump and president xi jinping has had productive conversations. we are taking these actions to show the seriousness in which we are going to deal with it. in the back. >> we are trying to get better picture of what it is going on in north korea >> i am not going to go into the specifics. we have specific intelligence and we'll follow the money and cut-off the money. >> will you be able to explain to us, i know you did a research of the actual economic impact

that you have on the north koreans and how that economic impact actively may cause them a change in there position >> i think as you know and these sanctions were effective and that's what brought iran to the table. we'll continue to work with our allies and speaking with people at the g-20. we are firmly to work with other nations and cut-off elicit financing. >> can you give us a head ups of the action you are announcing today and you used the term in your statement, is china an enabler? >> again, this is not directed at china this is directed at a bank as well as individuals and entities in china

again, whether china or anyone else, we'll continue with sanctions. >> again, if we find other activities, we'll sanction other activities, no off limits. >> last week the president tweeted -- the president tweeted, it sounds like he's given up on china, is he >> i think we'll continue to work with china and everyone else the president is firmly committed that we'll cut the money off to north korea until they behave properly >> are there any plans in place

in case healthcare does not get done and janet yellen, is the administration considerin considering -- agaconsidering -- >> that's a lot of questions no decisions have been made, gary cone and i will make recommendations to the president and no decisions have been made on that. we are committed to get tax reforms done this year it is one of the president's top priorities of economic growth. the people of america understand that, we need economic growth and we are committed of doing that i suspect that healthcare will get done, regardless, we are committed to get tax reforms done so many questions, i forgot your first one. >> let me follow up with you on tax reform if you don't mind paul ryan had said today that

things are on track. why should the american republic believe that things are on track with healthcare reform >> why should the american people believe it? of course, believe it. we are all 100% committed in getting tax reform done this year >> the letter of lawmakers suggesting sanctioning the bank of china my question to you is, have you considered that idea and do you think that idea is on the table. the second question is the debt ceiling. my understanding is the debt ceiling a drop dead time for you all of october, does that give congress additional time in your mind or would you like them to act earlier? >> i have not given any specifics in regards to the drop dead date. what i have said is that i hope congress acts before they leave.

yet, we do have contingency plans. the market should not be a concern. for the benefits of everyone, the sooner the better. we are taking significant action today. we'll take very significant action rolling out additional sanctions for north korea until they stop their behavior >> are you aware of other banks you are providing similar access to north korea to international financial systems. >> again, let me say, we have a team of people both in treasury and working with the intelligence agencies and as we see other banks or individuals or enties, you can expe-- >> this is something we are taking seriously, this is a big priority of ours

>> not targeting china but this is aimed at chinese banks. does it speak to message that you are sending to china in any way right before the g-20 or is this really an indication of how limited your options are in terms of dealing with north korea directly >> i would not say it is limited in what our options are of the contrary we are committed and we'll work with everybody and nothing's off the table where we see a list of financing, we'll stop it there is no message before the g-20 the message to everybody is this is a serious issue and we'll work with everybody. if there is elicit financial going on, we'll cut it off from the u.s. financial system which has a significant impact >> you are saying in no way that this is a message to china >> i said in my comment this was not aimed at china this is about north korea and

how serious we are taking this and kind of whether it is china or anybody else, we'll take this seriously. [ inaudible >> i am not going to make any comments about that. >> the question here, you said the president firmly committed that we'll cut money from korea until they behave properly how do you define success with that >> you will know success when you see it i think everybody will know success. their behavior is unacceptable and it is clear kind of, we want them to stop doing ballistic missile programs and others. it is very clear >> i want to ask you something that a lot of people don't understand and you are uniquely qualify to explain the administration and congress are saying there will be $321 billion in savings from the healthcare bill that are out there.

but, is that because people and benefits are taken away. is this really a take away >> not at all. one of the flaws of the scoring on the cbo when you look at the number of people is that again, there is a lot of people when given the option will decide not to elect to take the healthcare. it is a bad deal it does not mean people are losing healthcare. i think everybody knows obamacare was a giant tax heights on the economy and slowed down the economy and it is another reason why we continue to have sub 2% growth of the last eight years and this administration is 100% focused and creating economic growth and creating jobs and creating proper wages and getting this economy back to 3% or higher right here on the front. >> congratulations >> thank you very much can you talk about, would you

advise for prioritizing debt payments or not. do you believe that review of chinese investments in the u.s. should be worked out or more involved >> let me make the comment on that i can tell you the reviews are careful and involved no matter on who's on the other side it is important for national security and we'll use that to the maximum powers and, in regards to priorization, congress should have quickly raise the debt ceiling and we should pay our debts on time >> thank you, i was going to say congratulations, too >> thank you two questions, first, you are a participant at the last imf world bank meeting, certainly no -- there is a concern of the u.s. policy is of the

involvement of the international monetary fund -- >> i had a pressure to meet with kristine at least a dozen times. the imf is looking at currencies and the world's economy. the imf is helpful in working with europe, i think that could have been a major problem this summer that would have had a significant concerns to the markets of the economy i think she was a very important part of this negotiations. >> well, my second question because, how do you feel about maintaining the u.s. level of support at the iff and specifically as apart of the relief for greece because the u.s.'s role is through the imf

>> let me comment, the imf commitment to greece was quite small, not even sure if greece is necessarily going to use that i think the significant was a stamp of approval. there is no direct loss to the u.s. or the taxpayers. we are supportive of the imf and look at all contributions carefully and making sure that we are spending the taxpayers' money properly in the back. >> can you verify which entities is being sanctioned? the chinese officials did not mention of the bank dadong >> there is two different actions against the bank of dadong and there is the three old fax sanctions that you pointed out.

>> you will see. it will be a release on the banks. >> again, i am not making comments on the behind the scenes how we can communicate. >> you are a mathematical man, what are the chance that we'll get a 15% corporate tax rate or 25% corporate tax rate in the final bill >> let me comment. tax reform is a pass/fail exercise, we are going to get this passed for a plan that's good for the american republic we are working with the house and the senate and we are going to get a bill that's passed for the americans and putting people back to work

i will comment on healthcare although it is my primary area the healthcare that's been in place is a bad deal for the american republic, that's why a lot of people are not using it it was a giant tax hike to the american economy and premiums have been going up a ton so we are looking at making the system more competitive so people can afford it airports all over the world have to step up aviation security this is the product of a month's long discussion that resulted in yesterday -- i am wondering if you, sir, are convinced a and ae you satisfy of the security risk if for example, certain airlines are cut-off. >> let me just say i can think of no body better than general

kelly to protect our country in this position. i had the opportunity to discuss these issues with him, with the national security council. i am not going to comment specifically let me make it clear, the safety of the american public is our upmost concern we'll never put economic issues, okay, where we'll risk the lives of the american republic >> on tax reform, are you going to be revenue mutual if you don't get the growth and revenue, what are you going to do do >> there will be complete transparency when you come out with the plan. we are in the process of listening sessions and we met with hundreds and hundreds of ceo and think tanks and various different groups i was over at the house twice today talking to people at the house of representatives we have been in the senate and listening and as we develop this

plan, we said we are going to have a responsible plan that's paid for and we do believe in dynamic scoring and we'll take into accounts. >> mr. secretary, the gep for the first quarter came out today and we anticipated during the campaign, the president repeatedly promised to have growth rate of 3% and 4% how much of that 1.4% is attributable to the administration or in actions when are we going to start seeing the 3% to 4% growth that the president promised. >> we believe we can get to 3% or higher gdp. we have been cleared that's no this year or next year but it will take some time to scale it. our projection over the ten years period is 2.9% which i think is quite conservative and scaling up to 3% and staying

there. both the president and i think we can do better than 3% to the extent we can get healthcare passed and tax reform passed and roll back regulatory issues if we are working carefully both in financial and energy and in other areas. we are very comfortable that we'll hit these growth projections. i am going to take two more questions and then i am going to have to turn it back to the super star over here >> the president have said before, if china is not going to help solve the problem then the u.s. will. is there a deadline such as g-20

meeting and an you wiultimatum? >> the president has made it clear if there are deadlines, he's not going to advertise those deadlines. so i am not going to make any specific comments as to what he has a deadline or if he has a deadline when it is. that would make absolutely no sense. i can assure you that we'll have conversations with our counter partners about this next week and we have been having these conversations and we'll continue to do more on this one more question, right here. >> it does not appear this the house and senate will pass sanctions related to russia. i don't think we got a straight answer from the white house whether the president supports that the administration supports that is treasury. >> let me just be clear, again, not only the sanctions that we have on north korea today. we'll continue to put more

sanctions on iran around the ballistic missiles and other progra programs we'll continue to use this and not withstand anything that congress passes, this administration will use sanctions to the maximum amount available by law we don't need congress to tell us we'll do more whether they tell us or not we got plenty of those on as well again, thank you everybody and a pleasure to be here. thank you. >> this was treasure secretary steven mnuchin talking about a couple of chinese individuals, south korean involved in aid in and the betting of the cause of north korea. >> john harwood are in washington following this story and had some comments of the future of tax reforms which he

said the administration is 100% committed to get tax reforms done by the end of this year john harwood, mr. mnuchin cleared and repeated that this was not directed at china. how can it be read any other way? >> the president last week sent out a tweet saying that china had tried and he accepted that china had tried and had worked as the administration notes with alarm that north korea appears to be going forward with tests under those nuclear programs this is the step that they took and they're trying to separate finding fault with china from this particular financial institutions i don't think anybody is going to expect this is going to be

consequential. >> there is some history here. back in 2007, they did sanction, chinese bank in makcao and that brought the koreans to the ta e table. they seized $25 million of north korean money this is a play book that's been in place right now >> well, that's right and i think the administration also said they're not taking military options off the table, just don't know whether those would be effective or even house seriously they are on the table but as i said, they felt the imperative to take some actions.

>> should we expect more such actions, is that our sense that this could be the first of several such maneuvers >> that's hard to predict. what is clear is that the treasure secretary was trying to make a separation between the actions that's taken against north korea and actions against china. you heard him talk about in the press conference of the committee to review and deals and investment concerns. he's been bringing that up a lot lately as he's been speaking with investors and bringing in foreign investors to invest in the u.s. because he wants to send a message that america is opened for business even as you have this sort of turn of a n s nationalist. they're trying to walk a tight rope there between putting america first and also ensuring that foreign investment does not stop >> sure, guys, john hardwick,

lets not forget of the death of otto warmbier. there are three sanctions that are issued here, two of them are against chinese and one is at a shipping corporation and the whole thing is against the bank of dadong, it is the primary border of china with north korea with the bridge that has most o f the flows of goods and services it is difficult to read this anything of a backhanded way to sanction china >> well, people read it as they want to and china will wait to see, we'll wait to see what china has to say, the administration took pains to indicate that's not the message that it intended to send to secretary mnuchin said over and

over >> it is going to be an interesting week, we'll all be watching as the g-20 meeting gets ready to take place next week and in germany where there will be a meeting with mr. president and putin. folks, thanks very much. >> did you also notice when secretary mnuchin, he was not a secretary yet, he appeared on cnbc talked about 4% growth and he's not talking about that anymore. i felt that the continual walk back of what's becoming evident that tax reform is not happening nearly as quickly. >> it is also a pass/fail reform his words. no compromise. >> yeah. >> we bring home the ega or dont come home. >> or bring home a c and pack. here is what's coming up on

"power lunch." lets take a look and see where it is right now. lets look at this camera, i no that there is the dow down 166 points, a little better than it was, we'll talk soon of one of barron's top ranked female financial advisers and what she will tell us about the market. nike reports earnings after the bell ow y wt u edo yone t kn i have that one and much more, "power lunch." [ male announcer ] eligible for medicare?

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and help you find the aarp medicare supplement plan that's right for you. hello everybody, here is your cnbc update for the hour. >> cardinal george pell is hoping to clear his name >> i am looking forward finally to have my day i am innocent of these charges they are false

the whole idea of sexual abuse is a horror to me. 33,000 troops take part in the u.s.-austria military drills maybe you heard of this joke, millennials cannot afford their first homes because they're spending too much money on avocado toasts. the online lender is offering a deal that they can have both they'll give a month's worth of avocado toast anyone taking a mortgage out during the month of july back to you. thank you very much. the dow is down triple digits and at one point down to 150 points and now 152 s&p 500 is negative for the

month so far there is not much time left in the month. just one more trading day. all the big names are down such as they are intact, google, facebook and amazon. >> banks are getting good report cards from the feds yesterday. many are expected to raise dividends. this year's list top 100 women of financial advisers. our next guest is one of them, world cup of our top five with stephanie here >> what do you see as you look at today's stock market as bob has been saying of the rotation from the year's leaders tech in financials, is this an enduring

move or what, stephanie stiefel. >> in 2010, it was the gulf of mexico oil spill and 2011, it was the loss of our aaa rating >> debt ceiling battle >> in 2010, the markets moved 15% and 2011 at a bare market at 19.5%. >> we come to expect these moves if you will. i feel that we are doomed. evaluations were so high but they were not sustainable. so the fact that is what's correcting in the past week and we are starting to see some leadership in financials and energy is not surprising >> do you like that of the grou of stocks are not named because

i don't like the acronyms. >> i think it means that the market is widening out think of the disconnect. you have companies like amazon and netflix trading at over 100 times earnings in the financial world you can buy dividend paying stocks with phenomena management look at jp morgan, it has a yield that's just kicked up to 2.3% it has four monster businesses that they keep on gaining market share. we have the best ceo in the financial service world in jaime diamond. >> that's where the growth is. at what price? >> i am allergic to over paying for things that's the bottom line at the end of the day there are opportunity us and other sectors that you get so much value and

other businesses another one for investors, what about black stone? >> it has not moved. >> except this year finally. and you are able to buy that business and you have a phenomenal management team and you have a powerful ceo and it is trading at a discount to its asset management pierceed it is a back door way to get equity exposure which everybody wants some exposure in a liquid yielding way with the dividends over 5%. >> how much of your accounts of your individual accounts that you run to people are individual securities of atfs >> we prefer doing the research directly and we own the

security, absolutely >> stephanie steifel, congratulations. >> thanks. >> money coming out of bond prices as well you got yields on the rise, what does it tell us about the markets. >> the trinity team will weigh in on today's action, next most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

is this indicative of a larger summer swoon or a case of market rotations less bring in our noble professor economic of yale right professor sheller? >> yes, and it is free >> it is free. >> the best of the world >> there is no over evaluation there for something that's free, cannot be over valued. lets talk about where you see stock prices radight now in lig

of what i refer to earlier today, feels to me of the beginning of summer chop which we have seemingly most years what is your view about where u.s. stocks sit right now? >> it is at an unusual high, the only time in history going back to 1881, where it is been higher, a, 1929 and b, 2000s we are at a high level and it is concerning on the other hand, when it reached to the 30s in late 1990s, it kept ongoing up. it is not definitive, it is a source of concern. >> without taking me through the masters or doctoral course on

it, what's the case measure? >> the price earning ratio is a concept that goes way back the problem with earnings in the denominator of that ratio is they're unstable from year to year they can make sharp swings i thought campbell and i were original when we propose a ten years of average earnings for the denominator. it was mentioned before and going as far back as 1911, it never took whole so i guess barron was publishing a five-average it is been talked about but never settled in it works better in priedicting long returns >> what you said at the top is

frightening to some people listening. it is a certain level right now and you see that back in 1929 and 2000s? >> that would frighten some people >> yeah. well, i think people should be cautious now we have a high market. that does not mean i would avoid all together so, the u.s. has an unusual high stock market compares to other countries and one can invest in low sector as well >> the world looks better and cheaper than we do >> yeah, yeah. >> oh. >> the world believes in us. >> i guess >> they're buying us when we should be buying them, is that it >> well, i think it runs in diversify, one should have a little bit of everything if one does not diversify, no foot of europe or the emerging

world, this would be a good time to do that >> professor, thank you very much, professor robert schiller. >> my pleasure we should all take his course. >> leave melissa out of it she will win lets talk bonds. treasury yields up for a tad today. joining us now, all right, it is a ten year yield of 5% or so still low and historical, what's the bond market telling you? it does not necessarily mean which one is radight or wrong, they cannot both be right. >> the stock market is sort to say buckle up, it is going to be great and hard to imagine the scenario which both of those things are true and we see that in terms of what's happening of economic prices or the in verse of those prices yielded.

>> okay, which view do you take? so we pretty much think that the bonds probably telling a reasonableab reasonable story here. we do kind of believe that the best here won't come to fruition in terms of economic growth we don't see a disaster looming on the horizon, but we think the 3%, 4% stories, radical stacks reform, rationalization of environmental issues may have sounded good, but they're aging poorly as a promise. >> thank you, max. for more trading nation, go to trading nation.cnbc.com. earnings after the bell today, is the stock a buy ahead of the results up only 5% year-to-date. and now the latest from

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big earnings coming in from nike coming up tonight. the stock is up 4% this year with competitors under armour and lululemon coming in. we've got a buy rating on nike sam, aside from the earnings per share number, the obvious stuff, what are the one or two key numbers that you are going to first look at tonight? >> well, we're going to look at the inventory levels and look at sales by region. more than anything else. i know a lot of people are looking at futures they don't correlate the way they used to these days. i think that will show up in the domestic wholesale numbers. >> what's key in the inventory what are we looking for, the guard inventory? i assume you want to see less than more? >> we want to see it basically in line with sales, or at least, you know, in line with what the

first 13 weeks of fiscal '18 are going to look like you know, because it's always forward looking. they did the inventory for the business they're going to do tomorrow, not the business they did yesterday. >> what else is going to be key tonight with regard to guidance? is it going to be just eps or revenue or what else >> i think we've got to look at revenue. we've got to look at the net impact on revenue, how they're approaching marks, like ecommerce, given the -- >> i was going to ask you about that what do you think -- what's the question to ask about the deal with -- the potential deal with amazon >> i think the question to ask is amazon really going to get rid of the third-party sellers across the board and maybe give nike a page on amazon, rather than just having some items sold, and then stopping those items that are on amazon from being sold by third parties. i think it's very important. there's over -- between nike and

converse, there's over 80,000 items listed none of which nike is selling directly to am a shon. so i think nike would like control of that, more so than the sales, really, the control for the brand's sake and how that spells out i think is essential for what's going on in the long-term health of the brand. >> sam, in an hour you'll have a lot of work to do. sam poser, thank you very much. >> thank you for having me. >> check, please, is next.

check, please. >> in the category of things making you go, hmm, at levels that last seen in 1929, and 2000, very bad times for the stock market he didn't mention 2008 and 2009, so i suppose that's a positive but made me nervous. >> we just talked nike i said this before, i'll say it again, read the book shoe dog, the biography of phil knight, the founder of nike. it's a business book, but not really it's good, right >> it was the most -- i listened to it on the audio book. it was the most enjoyable business book in years >> if this was energy week at

the white house, next year is going to be g20 week trump may also meet with the chinese leader xi. >> the "closing bell" will kick off in a few minutes i don't want to call it a stock sell-off, stocks are selling, okay this is not an abnormal move but given the lack of volatility that we've had, i guess we could say it is an abnormal move >> the s&p negative for the month of june, i can't remember the last negative month we had i know somebody will give it to me very quickly. but nonetheless. >> we haven't had a correction in 18 months so every time you see a move like this, you think, okay, re version of the mean, it's going to come around at some point interesting to your point, brian, about volatility. was it two days ago, market page story in the journal about the lack of volatility the minute that happens, right around the