a hotdog is just the meat. hotdog on a bun is a sandwich. we solved it >> very good >> all the answers thanks for watching power lunch. closing bell starts right now. >> enjoy your hotdog

look it up i know there are people out there that remember that one >> i think it's kind of hilarious that you and i haven't heard this song at all it's billions and billions of it zblifl better that you don't know this song either. >> okay. >> well, there may be -- see what i'm going to do here. there may be a slow seduction brewing in the media space, discovery, and scripps reportedly are in merger talks again. could this ignite a wave of deals in that sector >> meanwhile, in the competition between morken, stanley, and goldman sachs. gets a point today, strong revenue numbers out this morning. something he struggled with yesterday. we'll have the details bill akman using twitter for the first time, giving a vote of confidence for chipotle. plus what he ordered >> and what he was listening to. >> and what he was listening to. you'll see stick around for that at least let's start with breaking news for this hour as president trump is about to host a made in

america round table at the white house after he's had lunch with all the gop senators kaylee townsend bringing us up to date. >> bill, that round table will be taking place at the white house with ceos of small businesses here in the u.s. that make goods ranging from coasters to gutters, pillows, and more. that production happens here it's day three of a week focussed on american manufacturing and production at the white house as it seeks to stay on message. and it's expected to highlight in particular certification of these products to safeguard against counterfeit and pirated products coming into the u.s. and aren't actually made here. the president's trade advisor and noted china hawk telling reporters the administration is pursuing, quote, aggressive anti-dumping and countervailing actions and will quote, crackdown on unfair trade practices. and actions specifically related to steel is expected to be imminent and has been telegraphed by the administration for several months at this point, but the

whole made in america and trade conversation is creating quite a difficult backdrop and perhaps a tense one for the comprehensive economic dialogue that the u.s. is holding with china just down the street from the white house, and if you need any sign of the tensions ratcheting up in that situation, just note that the press conference is for both the chinese and the u.s. delegation that were expected to be taking place momentarily during this hour for the chinese, bill and kelly, have been cancelled we're awaiting word on exactly why and how those talks have been going throughout the day. >> a lot happening between those events the health care story is mega, mega, mega, now the president after a scathing wall street journal op-ed, after charles cdotten hiemer saying this was an embarrassing failure, now -- and the president needed to take more leadership on this. okay nobody's going to leave were we

are going to figure this out, is it too late? >> well something that republicans on the hill has been lamenting throughout this process was the president's not being willing to go out and stump for this bill on the house side and now on the senate side, instead he has taken an antagonistic approach up to this point figuring certain lawmakering who are not supporting this on either side but now he is saying, we have to sell this thing. we're going to have a vote next week and we saw leader mcconnell coming out to the stakeout and saying that there will be a vote next week and that replacement is not off the table he seemed to be leaving the door open for a multitude of options, and he said that vice president mike pence and hhs secretary tom price and the administrator for medicare and medicaid services will be on the hill tonight and they're going to continue to try to suede these no votes and get some of those noes over to a yes.

so it's still remaining to be seen what can happen in a number of days. >> and saying that they should be held responsible. >> it's going to take a hail mary to get something done in this short time frame though kayla, thank you i think you're going to come back later and talk more about this we'll see you then >> the house budget committee 12 marking up the budget resolution and could have a big impact on tax reform which we might be turning to now next if we're ready. >> to the fall >> let's get to the details. >> here's the conundrum facing republicans. until all of those details surrounding tax reform are already hashed out so they're basically stuck in a chicken and egg fight right now.

and i talked to three members of the house budget committee, all republicans who were on the fence today. representative david pratt of virginia said he's still worried about the border adjustment tax. and the trillion dollars in obamacare taxes that now won't be repealed. and he's worried about reports that the administration is now looking at a 20% corporate tax rate instead of a 15% rate >> and these pieces, we haven't had an open playbook yet, right, show us the playbook so we know where we're going and what we can count on because that is the golden goose. >> at the same time, democrats like representative hakeem jefferies of new york are slamming the house budget saying it's cruel and harsh because it includes $200 billion in cuts to entitlement programs >> the house republican budget is reckless, regressive, and reprehensible. all to promote a deep tax cut for the wealthy and for the well

off. >> the house budget committee is still marking up it's resolution that debate is expected to go until 11:30 tonight. we'll keep watching and let you know thousand goes, guys >> thanks, elon. see you later. meanwhile, earnings, morgan stanley shares higher after easily beating expectations this morning. a stark contrast from rivals goldman sachs before yesterday, willford has details on that for us >> hey bill, yes indeed, the key differentiator across all of the banks was trading. morgan stanley traded down just 1% year on year compared to goldman sachs down 17% yesterday. morgan stanley separated itself from pierce thanks to his commodity performance, only down 3% compared to goldman sachs down 40% this contrasting performance is a concern for goldman shareholders, for example, note the different tones they had on commodities. they were a story of challenges

on all fronts, and that they have the worst quarter on record meanwhile, morgan stanley said they feel good aboutresults enlight of the environment and that movements were not that dramatic elsewhere, morgan stanley had small beats on every line. probably the most encouraging was wealth management which had record revenues at the top end of their target range at 25% overall, ceo james gold masn was pleased with what he described as respectful numbers and singled out three tail winds that could improve things further. capital, tax reform, and interest rates here are his comments on taxes >> u.s. corporate taxes are too high if the administration in congress can achieve a realignment of tax rates with other major developed economies, and they would be a clear positive for our business and corporate america in general >> shares up more than 3% today in reaction, guys. >> willford, based on the

comments for ceo about how they had tail winds from higher rates and higher markets, i'm just wondering how much of this wealth management boom is based on higher stock market values and what happens one day if we're not in the same kind of environment. >> i think you hit the nail on the head, kaylee, first of all to say that lots of the analysts in the media wanted to focus on the trading performance. the company understandably wanted to focus as well on wealth management. it's a big part of the business and as we said, it was a strong performer. part of that is, because of high stock market levels as we've already heard, also part of it is the deposit rates they have in there and the rising rate environment. they're in a strong position, and they have changed the shape of the business in the last couple of years. and it seems to be paying off. i would say the flexibility we saw within the fixed income trading was a plus and also just a point of what taxes could do to them if we see it they pay a 32% tax rate this quarter. reminder to all of the banks would benefit if we did see a

corporate tax cut. >> the nasdaq, the russell, the dow is the laggard they have about eight points to go there let's talk about this, rob morgan from sandy spring trust is with us today steve from stewart frank sl a post nine and rick santelli shows up at the cme in chicago so, steve, i mean, what, you know, we're always looking for what motivates this market we're watching washington, where nothing's getting done earnings have been mixed to better, is that's what pushing the market higher here >> i think the major thing that we're looking at is that it's a less of a regulatory hurdle environment than we have seen in the last two presidential cycles, last two administrations. so when you have less head winds, you have bigger tail

winds by proxy, that's why ceos, that's why corporations are a lot more positive, that's what's driving this market. and we don't see any to your point, you haven't seen any tax policy reform. you haven't seen health care you haven't seen an infrastructure bill. you haven't seen anything, but due to the fact in a you're going to see less regulatory environment, that's what's really kept this market moving higher in my humble opinion. >> rob, any names today you pick up on the weakness northern trust off on it's earnings cfx reversed to the downside united also selling off a bit. any of those opportunities for you? >> well kelly, yeah, i think those are certainly possibilities and you know looking at some names that will report after the bell today. certainly qualcomm, t-mobile, american express, whisper numbers are they are all going to report better than expected

earnings i think there are definitely some opportunities to be picked up here in the next day or two >> rick, incremental changes to the markets that you're following. what are you guys looking at right here >> well, we're continuing to pay particularly close attention, not only to foreign exchange and particularly how the euro's been strong against many of the major currencies, but also, that's where the volatility has been hiding as well in terms of interest rates, i don't to want dismiss the notion that we've come down as a matter of fact, about a month ago, we were talking about resistance around 241, came a couple of basis points shy of hitting that, but the market turned to the spot just shy of where it closed last year. that's not a problem the way it's bin dripping. you know, just today, take for example, we have 8.3% pop in housing starts we had a 7.4% pop in permits rates didn't even budge to the upside, they drifted last week when we had soft

inflation and responded logically, the treasury market is willing to be pushed in the current form lower, but seemed to ignore the higher it was exactly the reverse i still say the stencil's set. equities, interest rates are dripping a bit, just pay attention to the dollar. both kind of drifting together, the dollar's just got a couple of extra horsepower on it, but overall, don't see a lot of changes in the data coming out for the rest of the week is ultra light. so, pretty much, next week in the ecb is going to be key because it brings us back to the main story, the euro strength. >> and steve, just looking back at some of the deal news this morning, do you think that could be another source maybe for the goldmans or somebody that we see kind of a mini deal boom pick up here at all? >> yeah, big deals are always positive for the overall market. everyone tries to gamble and buy, what's the next one who's the next one to get bought goldman, i know that you don't mean that, you know, as a specific, but getting back to

where you led in with wilf, goldman has a real prok with the commodity trading. that's the real hurdle for them to jump over, as far as banks are concerned, banks have not been a real laggard. if you go back a year, they popped on the presidency outcome, they're up 35% a year ago performance. so when everyone's searching for a laggard, the only laggard to look for is the energy complex we got the inventory out today, bullish for crude, extremely bullish for the xle. let's just take a look at that if that starts to explode higher, this market legs up with or without tax reform or with or without any infrastructure as well >> all right guys, thank you. appreciate your insights into today's market action. see you later. >> thanks, bill. >> you bet 46 minutes left in the trading session here again, if you're just joining us, with the s&p, the nasdaq, and russell are in record territory. the dow is higher, but got a few more points to go here

discovery communications and scripps networks reportedly discussing a possible merger, again, up next, we'll talk about whether that deal makes any sense and if more media could be on the horizon as a result plus, former molina joins us to explain how the senate's failure to pass an obamacare replacement bill and the possibility, maybe, of a clean repeal vote could impact the insurance industry and as always, we to want hear from you. reach out to the show here on twitter, facebook, send us an e-mail, tell us what your favorite slow seduction song is. whatever you're watching cnbc, first in business worldwide

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welcome back chipotle receiving a downgrade today from market perform from outperform this after yesterday's after an illness in sterling, virginia. concerns of food safety could create weakness in same store sales, but the news is not stopping bill ackman from eating there. remember, ackman owns a big stake in chipotle, he tweeted quote, eating our own cooking and making my own mix. now maybe like us, you wonder what the heck is that? >> we found out. boy. did we >> it composes music based on your order and ackman's order -- >> wait a minute i wanted to be in that pitch meeting. what do you say we come up with something that creates a sound based on what your chipotle order is >> apparently it's a chipotle -- >> it's chipotle exclusive product. anyway >> weird, it's double chicken

burrito bowl for ackman with lettuce, and light rice. why do we need to know that? >> so we could find out -- do we have his beat. we have our own, right >> we put our orders in to see what happened. here's mine, and i have not heard this i don't know what the whole point of this thing is carnitas both beans >> red and black >> medium sals is a and gawk is important. and yours -- >> do we have the song >> i don't think that's much of a song >> that's impressive >> here we go. >> that's kelly's order. i've got carnitas burrito with white rice, extra sour cream ♪ ♪ >> that's for like it. now we're talking.

>> i should have picked a better one. >> that's what i'm talking about. i think the extra sour cream did it i'm sure that's what that is >> weirdest thing. >> saver waves check it out >> shares of scripp network soaring today that it's in talks with discovery communications. two companies are no stranger to merger talks they banded a potential deal back in 2014 >> yeah, joining us now is former discovery president john ford along with barton crockett. great to have you both with us apparently the scripps family was less interested a few years back do you think they might have come around? >> given that these talks have resumed, they must have overcome that hurdle and the family has less resistance now than they did before so it seems as if talks are happening, if in fact they are, that they've overcome that hurdle and that should be one of the major concerns that has been addressed. there are other things to address because you have the integration of two very large

companies. this merger, as far as a unified approach has three things going for it the three a's, audiences are all adults 25, 54 for these networks and the portfolio. the advertisers all are prone to buying a premium brand, discovery, hgtv, and food all sell themselves as premium advertising brands premium cpms then you have the affiliates as well they are all relatively affiliate-friendly in their approach and not as high-price as viacom. >> barton, this is a strategic merger possibly, but you could also arguably that's a defensive merger these companies are getting ready, trying to get some leverage of some kind "cable systems in a world where skinny bundles are becoming the norm, right? >> right the tv industry is getting tougher. and i think we're looking at some kind of hunger games coming

to tv. you have more consumers going to skinny bundles decreasing the pie potentially and you have big parts of the pie, tv stations, espn, asking for big increases in rates, particularly at the tv stations and espn going into a renewal cycle starting in the fourth quarter. so there's going to be a lot of pressure on the independent cable network companies to hold on to their rate, hold on to their place in the skinny bundle these guys come together, you know, i think make some sense in that, you know, if they're able to do it we don't know, if they do, you want to be bigger, you want to have more bulk to kind of fight this hunger games battle which, you know, i think is one of the rationals for looking at this >> john, meantime, i think john malone owns something like 28% of discovery what do you think he has in mind here >> well, john is always, literally the smartest man in any room he's incredibly strategic thinker. he's always playing chess while the rest are playing checkers. my guess is he's looking at this as the beginning of something bigger, perhaps involving his

liberty properties, charter communications, the distribution side and maybe the, you know, the lionsgate starz combo he put together a few months ago. i think you want to look at this as a long game and one of the early moves in john malone's chess match because he does think way ahead. he's tax e verse, anything that happens out of this combo will not result in a large capital gain for discovery communications if it passes. >> and barton, does this lead to other mergers in this category you know, there was talk that viacom is also interested in scripps. what are we going here do you think? >> well, look, i think it makes more sense for scripps and discovery to come together one of the reasons is that skrips is trying to expand internationally. that's one of discovery's strengths. to john's point, has spoken about combinations of free radicals so to think there could be some snowballing consolidation push

through, you know, this entity to look at the others that he named, makes sense you know, i think generally, tv network companies need to look at a consolidation stage you know, i think this is a maturing industry with pressures, scale helps handle some of these pressures. i think generally, nma is one of the themes in the group. >> yeah burton, i just read that media mna, it's the lowest number in quite some time. what is it going to take just for more deal making and how much are you ultimately talking about? >> well look, i think that once you see people dance, you know, it will gets more people in the mood so, a deal like this could get the ball rolling i think that there's a limited number of tv network companies that scale and you see, you know, some deals happen, and i think other guys will either want to dance or be left on the sides. so, you know, i think that you could see this step up, if this in fact happens. >> all right we've got go, barton crockett, john ford, thank you both.

appreciate it. see if the deal can happen this time around. we have 35 minutes to go on what could be a record-setting day here on wall street. has been for the highs already dow is lagging, not been able to get up there ibm down 4%. up a quarter percent yesterday goldman was weighing on the dow by the way, al co. with a reports after the bell the big bell weather and it's -- >> it's a whole different world. >> s&p is up half a percent, nasdaq nearly two-thirds of a percent. and that ibm drop comes after reporting a 21st consecutive quarter of declining revenues. up next, what big blue told us about turning things around. american express outperforming the dow this year. coming up, we'll have a debate about whether investors should buy or sell that stock ahead of earnings report. that's still to come

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glmpblts sneert one of us is on snap >> i've got is to many lines i could use there, but i'm going to be prudent and not do that.

>> snap holding on to the $15 mark there >> yes >> ibm is weighing on the dow. the company still feeling the effects of yesterday's mixed earnings report, hosting earnings but falling short on revenue. ibm has not posted growth since 2011 i spoke with a company's cfo martin schroeder yesterday on the show he told me here's what is ibm's focus. >> we're always trying to find profit polls that exist. as we shift our business to go move toward those profit pools with you see what i think we saw going from first to second quarter, for instance, which was we added a billion dollars of gross profit in the quarter, but only took us a billion one of revenue incrementally from first to second quarter. and so when we think about the enterprise opportunity profit pools, which is where we focus we're always moving to those, not necessarily just trying to find revenue it's easy to get revenue in an enterprise space it's finding the profit that we're focussed on.

>> well. >> do we believe him >> um, it was an interesting point to try to make >> yes, i agree. >> i'm not sure whether -- i mean look, the results will speak to themselves -- >> just think about it as that word shift, boy, if they had to shift i mean, the business they that they hung their hat on all of these decades, the mainframe, that's gone. you know, in a poof. you know, to shift to the cloud where everybody's going now, plus ai with they're trying to make a name there for themselves as well. >> that was the concern for the quarter. it looked like that cloud business that new growth business that growth rate decelerated a lot. and so for people who are kind of saying okay, look at oracle, they're managing not only to increase the new stuff, but the old stuff doesn't look that bad. ibm had neither one of those things going for it. >> right >> you can see the share is down 4.5% today >> time far cnbc news update now. here's sue herrara, hi sue >> here's what's happening at this hour, everyone.

she is the australian woman who was fatally shot by a minneapolis police officer after calling 911. >> i think everybody's very, you know, wants answers that are not immediately forthcoming and i don't know when they will be forthcoming. >> a judge delaying the decision whether statements by the chicago police officer accused of first degree murder can be used by prosecutors. the statements were made to union representatives by jason van dyke who was accused of shooting louisiana kwaun mcdonald 16 times in october helicopter carrying the son of world wrestling entertainment ceo vince mcmahon made an emergency landing in the ocean half mile from long island and the new york shoreline nobody was hurt. shane mcmahon's mother is linda mcmahon. >> they were lucky that is the news update.

back downtown to you >> all right sue, thank you very much sue herrara. i'm on the floor with gordon, that's another story why did you pick 400 for your number >> it was actually the number of the men who i replaced, walter dowd >> i didn't realize you got to choose those anyway, you're from rosen blat securities >> retraded everything we lost earlier in the week. one or two stocks and have been doing more than that it's remark nbl how erie it's been, how quiet its been without any real headline-driven news. we're just not seeing much from earnings in terms of the general broad market we're seeing a little bit of energy going into the close in terms of some liquidity events, but by and large, mostly quiet >> vertex is having a huge day

discorey, that's another contributor. >> but the calendar hasn't been robust you know, we'd like to see more on the deals, but truth be told, even though i may be painting a negative picture the fact of the matter is if we're consolidating here at these levels, you've got to think that we're going to drive to higher levels the fact is the further we go, the larger the risk. so, you know, it's kind of one of these markets, you have to be prepared to adjust quickly, but right now, again, it continues to -- one would continue to believe we're going to trend this way >> we've heard it before, we'll say it again, never dull market. thank you very much. >> pleasure. >> bill. >> choose to take the high road. thank you. 27 minutes left of the trading session here at the dow up 50 points other three major averages we quote there are all in record territory. president trump had lunch with republican senators today at the white house to talk about health care when we come back, we'll talk to the former ceo of molina health about the impact, a fight to

repeal, and/or replace obamacare. the impact that's having on the insurance market plus oil prices falling more than 12% so far this year. we'll hear from one market watcher who says investors should pounce on this opportunity in the energy sector that's coming up on "closing ll." at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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president trump served up the topic of health care today during a lunch >> kelly, it's the topic of a briefing under way at the white house right now with the director saying that health care is not something we can walk away from. also saying we are confident we will get this bill passed, but following that luncheon held at the white house that the president and his staff hosted with nearly every republican senator, the senate majority leader mitch mcconnell came out and acknowledged the difficulty of getting the votes but say the vote would be held next week >> pretty obvious we've had difficulty in getting 50 votes to proceed but what i want to disabuse any of you of is the notion that we will not have that vote next week we're going to vote on the

motion to proceed to the bill. next week. >> there is an outreach effort happening on the hill this evening. mcconnell said, but here's where we stand right now the senator from west virginia said that she is a no without a replacement plan in place. senator collins of maine and murkowski of alaska were noes previously we're still waiting to hear exactly where they stand after that lunch at the white house. senators poshtman of ohio and heller of nevada said they are undecided, and it is still the expectation that senator mccain of arizona will be absent for the vote because he is recovering from surgery. the president at that lunch though dangled the possibility of pulling the rug out from under the insurance market by discontinuing monthly payments to ensurers that offset the cost of the exchanging. sarah huckabee sanders who's the deputy principle press secretary confirmed that the payment for july, which is due tomorrow, will in fact be made, but that the white house will continue to evaluate that on a month to month basis going forward.

so this is a realtime debate, guys with the health of this market and the insurance for many people at stake. it appears those payments will be made and the white house and senate leadership will are still trying to work to get this vote cobbled together for next week >> but kayla, it's interesting that even after hearing the president come out this afternoon and say, he doesn't want them to leave, he wants them to get this done, et cetera, they're still going to proceed with this repeal vote next week, would that be superseded if they were able to kind of go back and, you know, bring the failed bill back to life >> it's unclear what options are on the table, kelly. i mean, they could do just about anything with regard to that recess and senator mcconnell seems hell bent on having that vote next week either way to put this issue to bed or perhaps move forward with it. so we'll see exactly how tonight's outreach effort goes, whether in fact it is successful in swaying any of those no votes and where we stand tomorrow. >> all right >> very good

>> thank you. >> thank you, kayla. so while insurers may be receiving the subsidies at least this month, it is unclear how long the administration will continue to make those payments. yesterday senate majority leader whip john connoren made this comment. quote, i'm not interested in bailouts for insurance companies alone without reforms. >> so how should insurance companies move forward with obamacare's future in question joining us now is dr. mario molina, the former ceo of molina health care. welcome to you, sir. >> thank you >> you know, this morning, in montana held executive basically said if trump wants to destroy obamacare, all he has to do is stop those payments we just referenced saying that for his own company, it would mean going from a 4% increase in marketplace rates next year to maybe a 24% increase so there's -- they have a lot of leverage over this, don't they >> well, look, right now, the

republicans have their hands around the neck of obamacare and if obamacare fails, it's not going to die a natural death this thing is going to be choked by donald trump and the republicans, and there is going to be no way for them to deny that they have the power to fix it, they have the power to destroy it >> even if they continue the csr payments, these month to month, and they keep it going, do you think that the obamacare will just collapse of it's own weight at this point? or can it keep going under those circumstances? >> no. it's not going to collapse under it's own weight. if it's done in, it'll be done in by the republicans. they were going to move heaven and earth to try to change the bill, now they want to try to repeal it. a simple repeal when it was looked at in 2015 would leave 32 million americans without insurance and double health care premiums and i just don't think that's acceptable to the american people that means one in ten americans

will lose their insurance if this bill is repealed. >> dr. molina, it sounds like in some cases, take the california example though, even having this medicaid coverage does not amount to much there was a story today about this, about how because medicaid only reimburses a third to half of what the cost is to doctors, they're in many cases not accepting the patients, the patients end up in the er, visits are up 75%. hospitals are losing money as a result, how is that -- why is that a program worth defending >> well, i don't think hospitals are losing money as a result of the affordable care act. i think they've been big beneficiaries this the fact of the matter is people have more access of care now than they did before we're kind of mixing apples and oranges here -- >> i'm talking about medicaid. medicaid here. medicaid being the issue, not the rest of the population >> in medicaid, about 65% of

providers accept medicaid. it's not as robust as if more were involved or if payments were greater that's a position that the government can make. if they want to put more funding in, there'll be more money for more doctors repealing will mean noen funding at all and things will get worse. >> medicaid already covers something like one in four americans. it could end up being the significant achievement of obamacare depending on what happens with the marketplace that whole thing might have been a way of dramatically increasing the medicaid population. at what point does there need to be some questions asked over the long-term stainability of those payouts? especially if you're arguing that should be increased for the existing population. >> oh, i think there's no question that we need to re-examine medicaid, there are lots of opportunities to improve it, and many of the highest cost patients are not in managed care, and that's driving costs up the first thing i would do is take the dual eligibles, the most expensive and move them into managed care immediately.

>> you know, lamar alexander, who chairs the health committee at the health care committee in the senate has said he wants to hold hearings on ways to stabilize the individual insurance market what would -- if you were called to testify, what would be your suggested -- beyond moving the sickest patients into managed care, what else would you do to try and stabilize these exchanges? >> well the first thing i would do to stabilize the marketplace is you've got to fund the csrs and that's not going to increase costs because that's already built into the run rate. the second thing is to have a reinsurance pool so health plans don't have an incentive to avoid costly patients. third thing, enforce the mandate. you can't expect health insurance companies to ensure people and have guaranteed access to insurance and not have people required to sign up you can't expect them to only ensure sick people >> what does that mandate look like you know, punitively or do you

do it with an incentive of some kind what would your suggestion be? >> well, i would do a little of both if you look right now, in california, if you want to drive, you must have auto insurance. if you want to buy a house and you've got to mortgage, you must have homeowners insurance. and we get into the free, free writer problem if people don't have insurance, somebody else is going to pay their bills when they end up in the emergency room, and that's not fair. >> all right what about ted cruz's -- what do they call them the skimpy smurns plans that he is part of his amendment to the repeal and replace would that be the solution you're looking at there for those well, younger patients who would otherwise avoid the big coverage because of it costing too much >> no, no, i don't think so. i think in fact that's the worse thing to do. because it bifurcates the healthy patients and sick parkts and the sick patients costs are going to go up that is not the way to go. spread the risk over a large number of patients

that's the way insurance works best the cruz amendment will not work >> well, they got more work to do, clearly. dr. molina, always good listen to you >> yes >> thank you >> former ceo of molina health we are heading to close about 15 minutes left in the trading session here with the dow up 49 points again, if you're just joining us, s&p, nasdaq, and russell are in record territory right now. american exsuppress making points in the rewards cards battle, but will it translates to revenue growth? we have a bull and a bear facing off on american express before the earnings report coming up. and hollywood titan jeffrey has created quote/unquote new television we're going to look at how new it is coming up on the closing llbe (baby crying) ♪ fly ♪ me to the moon

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shares are weaker than half a percent today. as mentioned the stock is trading weaker

>> can you imagine being invested in taxi medallions. >> some of the credit unions are directly lending to the guys in the new york city have been going under. so this is a higher profile perhaps casualty we'll see tomorrow meanwhile american express is one of the many companies reporting it's second quarter earnings after the bell tonight. shares are up 15% this year so far. and the company recently won a deal to become the exclusive issuer of hilton honor cards beginning in january the question is does this deal make american express a buy for investors? welcome to you both, john, you're our bull on am medical examiner here, what's your case? >> so year to date, am medical examiner has done well as you said i think the big story here for american exsuppress high end exposure and their good credit at the high end you have an asset-sensitive consumer most am medical examiner customers are looking at the

bottom right hand of your screen seeing the embassies at all-time highs and feeling good about life on the other side, credit has been stellar, and while you've seen some credit deg investigation across the industry, that hasn't shown up in american express, we think numbers for 2017 are too low we think the company's going to need to bring their guidance higher and we think the stock's going to move higher as a result >> you have an underperform rating on the stock, why i guess you're not enamored of the rewards card program >> right, i think the answer is the rewards programs are 15 to 20% below peers and peers could be stepping up they compete against large banks who have returns that are half or even a third as high as am medical examiners and multiple reasons to want to reward those customers. chase just started giving rewards points for people taking out a mortgage you're competing against people that are going to make things kind of tough for you, and wing that's the major reason that they won't be able to meet

expectations over the next several quarters >> what about that john, we do story after story about some of these new cards and points and rewards programs. we haven't done one lately about am medical examiner. >> i think at a high level, the world is in a rewards bubble everything you do, everything people do these days, you get rewards these days putting that aside and the entire backdrop in the low rates environment certainly affected that aside am medical examiner remains well-positioned -- >> now, wait a minute. now if you say you put the whole thing aside, but we're in a bubble i mean look, if they make a strategic choice not to participate, you can give them a lot of credit for that, but it's got to be one or the other, right? >> for sure. i think you've seen them in the last few quarters step it up particularly on the platinum card they're making the best effort to add rewards and remain competitive. there's no question they've seen competitive pressures from jpmorgan and citity and others on the other hand, they've maintained a semblance of pricing. i think what you're going to see is their reward hurdles internally certainly have come

down relative to where they used to be. they're going to be far more aggressive than bidding on the portfolio if and when they becomes available, and they recognize that you need to bring your return hurdles down to make sure you can keep the partners and you can keep the business coming in in terms of card member spending. >> all right so tell the management what you would do if you don't to want play the game on the rewards card carousel, how else would you get them to make money here. that would put you back in the outperform category? >> so, i think what they've got to do is they've got to come to grips with the fact that they're actually overearning and set those rewards at appropriate levels and bring the actual earnings in line with what the power is given the competitive dynamic in the industry >> and what is the -- so do you think they could make a case to not participate in the rewards bubble or do they just need to get fully on board >> well right now they're growing, chase is growing at probably, you know, double the growth rate of am medical

examiner in this business. you know, in terms of u.s. spending points. so what they're effectively doing is seating market share and we'll see how long they are willing to let that go on. >> if i can jump in on that point, valid point, but i would say that many of those jp morgan card members who chased high value proposition for the higher end card that was offered, when their anniversary comes up, they're going to run for the hills and cancel those cards am medical examiner has avoided dhieng and i think on a long view of the cycle, they're going to come out looking much better than the others in the space. >> so i'll take the other side of that one, if i could. >> very quickly. >> yeah, i mean, they basically have done the opposite they've gone after those, offering those people $300 and aggressive rewards, now that citity's out there going after those customers, they might see loss of market shares. i'll take the other side >> okay. we've agreed to disagree i like it. thank you both for joining us

today. >> thanks. >> thank you, guys >> all i know is my wife's american express card gets a free headset to listen to -- >> on the plane. >> u.s. open. >> oh, that is a good one. >> yeah. >> but, i digress. we're heading into the close here with the dow up 45 points we have the closing countdown in just a moment here >> yes, then after the bell, we have the am medical examiner earnings apple creating a major new executive role in china. we'll tell you who got the top spot and how the new position could impact the company's sales. stay with us

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[car tires screech] [bell rings] just inside the two minute mark, we've got the s&p, the nasdaq, and the russell at all-time highs not for the dow. let's show you the dow though, where we're up about 50 points right now. we've got a few more points to go before we hit an all-time high technology clearly is a leader again. there was a tug of war inside the dow among technology companies. and the leader was cisco, that was one of the best, or if not the best-performing company in the dow today with ibm with the

earnings last night down 4%. very quietly oil continues to move higher and hit a six-week high today we're now at $47 a barrel on wti on the draw down in inventory, and the vix going the other direction is essentially at a low for the year here around 977 right now. now we get earnings, bob, here we go again. this time, it's american expr s express, qualcomm, and t-mobile. >> and the important thing is, the magic words were uttered, mr. ryan, speaker of the house, we are going to work on tax reform as soon as the august recess is over he said that what, about 11:30 and you look at the market, folks, slow drift upward 3-1 advancing to declining stocks new highs on the major industries and 300 new highs on the nyac the bottom line is not a particular reason for the markets to move up, other than mr. ryan's comments. >> all right very good. thank you, bob see you later. so we're going out with those

records for three of the four major averages and a 59 point gain for the dow stay tuned, those earnings are going to hit right away at the top of the hour. and we'll get the numbers for you and the interpretation on the second hour of the closing bell with kelly evans and company. see you tomorrow, kelly. thank you bill, welcome to the closing bell we have a trio of record closes today on wall street with the s&p, the nasdaq, and the russell 2,000 all closing at record highs. let's look at the numbers for you. dow was the willing ard today, weakness and ibm did weigh on the index. gained to 12,636, that's just a point below the prior closing high as for rt s&p 500, 24373 paced by vertex, by discovery.

scripps, a couple of other names we'll circle back. same story and those were strong it's a nine day win streak now it's the first of those we've seen in a couple of years. going back to february of 2017, capping off what has been quite a year for that index already. 2015, i should say for the nasdaq, it's the longest win streak we've had since then. it's going to be another busy hours for earnings covering the results a z they do come in. judd ford, covering qualcomm and sima will bring us t-mobile's results when they come back. thank you, and we'll see you in a moment joining me on the panel. senior markets commentator here. along with brian perry who's at

post nine with us, he's a portfolio manager based in san francisco with hennessy funds and ann joins us not that these are huge moves. the facts that we've had all three, call it all four if it weren't for ibm with the averages, intraday highs, there's a long list of companies trading up there obviously too. >> it's more of the upward grind. two dozen days this year, the average gain on that day, in the index is less than half a percent. so you're not seeing any of these, you know, huge upward thrust moves, it's really just more kind of including different groups on different days today it was a lot of laggard stocks it was energy stocks in the lead in health care seeming like it wanted to take over for technology as the growth leadership. really not much more to say. they seem to have a date with the 2500 level at that point, they don't owe you much, full market's always overshoot. >> 2500, is the s&p level going

to get giants interested is it going to be in the dow 21640, starts to climb closer to 22,000 >> i think number is just a number at some point, you have to break it down to the earnings, and that's what this whole season is all about. and if i told you that four out of five companies were beating on that aps and four out of five were beating on revenue numbers. you'd get excited about the market and that's what we're seeing right now at least at the first part of the market we're going to see this gradual shift up until numbers that come in that show us a different story. >> we are eight years, going on almost a decade, 2009 would have been when the rally kind of started. and the recession ended. so it's getting a little long in the tooth. and look, we've had parts of weakness, industrial production was down for like a year we had the oil and gas recession. might have the retail recession right now. where is the opportunity >> so, what we haven't seen in the last couple years is really that revenue growth rate right? we've seen the earnings. and you can only cut the costs

so much before you really get to the bottom of what you can do, right, you have to get that growth rate up on the revenue side, and i think for the first time, we're really starting to see these revenue numbers come in that are looking good >> which is interesting because i'd almost think you'd be making a case -- it's revenue, we'll come back. it's qualcomm's earnings what which are out right now. >> yeah, kelly, the stock is down just over 2.5%. the actual current quarter appears to be just about in line revenues, $5.3 billion little bit better than expected. non-gap eps just in line at 83 cents. the guidance is where it gets tricky street was looking for around 5.5 billion. there on the revenue line. kwaulcom got well to 5.4 to 6.2 billion. the eps a little bit different the streak was around 93 cents, nongap, qualcomm guiding to 75 to 85 cents. so that 80 cent midpoint would

be significantly below 93 cents. a streak was looking for keep in mind, there was revision to third quarter guidance based on the fact that qualcomm has this ongoing legal dispute with apple, not paying licensing fees through third party manufacturers. and that dispute continues, that could be what's affecting the guidance, but we'll wait to hear more from steven mollen cough in just a few minutes on that >> yeah, looking forward to that and i was going to say, qualcomm's a hard company to talk about with earnings and revenue growth because there's this litigation that's such a major swing factor how are you guys looking at this >> it is, i think the call was going to be more important we to want get an update on where the litigation is at and then also, they are doing an acquisition that has been delayed. there's been some fear they're going to have to pay more for nxpi and we will be looking for an update for that. we don't currently own the stock. fundamentals are challenged because of those two things. that's what we're listening for.

>> kind of came in exactly what we were thinking you know, we own a lot for the dimpbd, and we know the near term quarters are going to be difficult ones if we've got five g rollout and twhaeng qualcomm is a fabulous company long-term -- >> what's the dimpbd yield >> 4%. captive. >> going back to ibm, it was down 3 or 4% today, as the numbers shook out, the dow has joined with a record high close

of 21,640, that was above the 21637 level prior to that. again, movement here on the bell that's pushing it, let's call it of all four of the averages with some new record highs here brian, have you guys looked at others -- if qualcomm is interesting for dimpbd reasons that'd be the most sensitive part of the story for you guys, right? >> and that's really what it comes down to. as long as they can keep the cash flows up, dimpbd stream coming and potentially raise it in the future, you know, the patent situation is obviously not a good one and so we can see where that shakes out there may be an opportunity that we get a 5% yield on it, right so that's a possibility. >> and, go ahead -- >> i'm also going to point out -- earnings in general, it's a positive story, it's supportive of the market, but the stock reactions to earnings are not going to be necessarily in tune with the broad positive. if you look at today's biggest losers, northern trust, reported earnings, ibm, you basically have all these companies -- csx was down basically it's noisy

usually it's not thematic, you can't find a story line. how the stocks traded are telling you how much are baked in >> move throughout the session there. as you can see on the screens, the numbers are starting to come out. we're watching those stocks move, brian -- >> we do own apple and a couple of different funds >> apple is a great story. the iphone 8 rollout will be an interesting one. i think they're going to continue to do well. >> we are joined now with these results from american express. dooerd ra, how do they look? >> hey guys, they're looking good and the stock is up about # 1.5%

in the afterhours. let me give you the numbers here beat on both the top and top line, excuse me, we are still crunching the numbers comparison one shortly. but for the quarter revenue was $8.3 billion, net of interest expense. eps was a beat, 1.47 compared to $1.43, analysts expect it, and you guys were talking about this a few minutes ago. the bigger picture is that am medical examiner is up against cut throat competition in the credit card space in terms of rewards. am medical examiner has had to keep up cut some of it's costs i want to mention that operating expenses were up 39% versus the prior year also, i want to mention this past quarter, it had a significant, at least symbolic wind won the rights to become the issuer of hilton credit cards. made all the more important as it has lost high profile partnerships over the last few years. we will continue to dig through the numbers and bring you more again, the stocks still holding on to the gains in the after

hours. >> yeah, thank you, am medical examiner up 1.5% what are your thoughts on this one? >> well, much like the rest of the rest of the market, stocks are really reacting to individually how well they have performed against expectations and against the broader market that's a good market for us, broadening out american express is a great company. it has one of the highest credit portfolios, highest rated credit portfolios, they've done well there, they're growing well internationally. that's a good stock, but i think there are better opportunities and other places within the market i like the financial space, especially the big cap financials, they are trading at price to book multiple cheaper with the market with better growth and, you know, one of the stocks we like there right now is key bank they're going to report tomorrow so, we're a little bit ahead of that, but they did an acquisition that didn't get too much respect last year and they've been executing well against that trades at a discount to the s&p, both on price to book and a

price to earnings, 70% discount, trading at 13 times. also lower than it's peers and they did well on the bank stress test. we think the growth opportunity is strong there. and so that's a name that i think affords better opportunity. >> but, i don't know, ann, if you wanted loan growth, i'm going to read from a.m. medical examiner's quarter here, they said that the increase primarily reflected continued strong growth in the lone portfolio and higher lending right off raid. we've been looking for kind of the slow down, certainly on more of the business side of things maybe on the consumer side it's trekking along. >> yeah, and i think key bank has been putting up decent lone growth numbers that's been part of the story let's see what they have to say tomorrow but you've seen some banks show strong loan growth and others not so strong. the market's rewarding them differently and individually like it should be. >> yeah, i would point out with a.m. medical examiner, the affluent consumer should be in a decent position which is their core the stock is all the way back from the coast co.-related

losses nobody wanted to talk about how it could basically look cheap, it's all the way back, this is the last quarter of year over year decline the question again, the stock at 15 times, forward earnings or whatever it is now, for financial does it really seem like it's that right for further upside i think it's been benefitting in part, we've talked about the payment system stocks, square, paypal, there is something like that embedded in american express. people look and even though it's a closed network as a payment processer -- >> all-time highs for a lot of those. >> the question is look, maybe doesn't need a rest. >> real quickly, i want to mention, their return on equity was 21.7%. think that big banks would kill. >> it's always obviously been much greater returns on capital than any traditional bank. it's much more -- it's not really pure lender, it's a hawaii brid and this part of the story is good. let's pivot to t-mobile nap earnings report is now out

we have those numbers. >> hi kelly, it's a beat for t-mobile earnings of 67 cents a share, analysts were looking for 38 cents, revenue topping expectations at $10.21 billion again, above the analystse estima estimate just breaking down that number, services, revenue came in at 7.4 billion. that is up 8% year over year another metric that analysts look for is of course customer growth total editions of 1.3 million total additions in the second quarter that's actually a low churn of just about 1.1%. we're looking at the stock halted right now, it should open at -- in around 15 mirns we'll get you this price action and extended kelly when it comes out, back to you >> thank you guys, it's kind of a messy report and quarter here for t-mobile, michael, any initial thoughts? >> top line beat i think might get some attention t-mobile is kind of one of the net winners in a very, very messy space where the incumbents

at&t and verizon have been horrible stocks. we'll see if the street kind of looks at the bright side there of the customer wins, the market share wins, and the top line b. >> what would you say? >> i think that's important, they have been been the share gainer they need to prove they're continuing to do that. the numbers kind of look like without having all the detail. and i think the market's going to be really interested in what they have to say surrounding consolidation. there's been a lot of rumors about them and sprint combining, more recently, as you guys know, more talk about other people that may be interested in sprint so i'm sure the market and investors will be curious to what they say about consolidation. >> oh, for sure. and the shares open at 4:35, we can see how they're reacting meantime breaking news on whole foods. this shouldn't be earnings what's happening >> you're right, kelly it is not earnings, the activist hedge fund exited it's stake in whole foods. that's about 26 million shares or 8.2%, that's according to a

filing that just hit with the fcc. if you recall, they have been pushing whole foods to sell itself which of course it did to amazon and what this would indicate, i think, for the market is that johnna does not anticipate a higher bid coming in and outbidding amazon for whole foods. now, taking a look at some data here by 13 d monitor, johnna entered or disclosed it's stake in whole foods in just april this year and the returns, since that disclosure were about 42%, kelly. >> all right whole foods a little bit weaker. leslie, thank you. vinny is what comes to mind here, brian, on this one they came, you know, they pushed, they got the sale done they win big they're out. they're on to the next one >> sounds like a good day, doesn't it >> and it's a cash deal. all jana is doing is leaving 28 cents on the table as leslie said, they don't expect any competing bid to come in not like you were going to get

amazon stocks. >> you don't think this is too mercenary to stay in there >> to just, you know, squeeze it back toward $42? no, i mean this is not their business. >> it's like nigel -- >> again, if it were for stock, then off question of o do we to want bet with amazon that's not really a jana style holding either >> probably one of the more quick timelines we've seen in terms of activist effort lately. and now of course, there's antitrust questions that we talked about brian on the show yesterday. anything in this space, you investing in any themes around the grocery delivery space >> we did the exact same that i think they did when amazon announced the whole foods deal, we were a seller that day that was our exit strategy, and, you know, amazon's killing a lot of people. so it's they're doing a great job at what they do. and it's just kind of like get out of amazon's way. >> you were at whole foods holder -- >> and amazon bought it and we sold that was our perfect exit. >> when you think about a kroger

and the rest of the grocery space right now, do you think we have to wait for that to shake out a little bit >> i worry about anything that's kind of in the retail space because all of the delivery mechanisms are changing and everything shifts so fast that if you've got brick and mortar and stuck in an old style. i mean, it's really easy to get behind the curve >> holder of amazon? >> for a while >> okay. >> and you guys holding amazon here >> holding on right now. yeah >> yes >> okay. ann, brian, thank you both for joining us. >> thanks. >> kick things off this hour apple's presence in china is changing the tech giant has meantime created a new executive role across the pacific we're going to look at who has the job and why apple added this position also facebook will soon give publishers the option to put articles behind a pal wall what it means for both the social media site and for content providers alike. that's in today's fast take. and we to want hear from you you can reach out to the show via twitter, facebook, send us an e-mail. you're watching cnbc, first in

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record highs for all four major averages on the close today. the strongest performer, the small cap russells apple naming first senior executive to manage in china josh lipton joins us now with details. >> apple has tapped a veteran engineer for that role china native isabell gemahe will head the operations. everything from apple pay to car play to home kit, this appointment comes at a critical time for apple revenue in greater china has dropped on a year over year basis for five straight quarters when i last spoke to ceo tim cook, he said the iphone 7 and 7 plus were performing well there, but that the company wasn't doing as well with previous generation iphones now currently by market share, apple is in fourth place behind others hope for the bulls of course is that apple will win over a lot of new fans in china when it launches that new iphone in the fall that's anticipated to boast and

equip for a stronger ar experiences among other features beyond the product, apple is also dealing with a tougher chinese government, just last year, remember, regulate tlers suspended itunes movies and ibooks, all big issues that isabell will now take on when she assumes her new role in shanghai later this summer, kelly, back to you >> all right, josh, thank you. we're going to bring in the max um group for more on this move look, it's tricky for apple operating in china, right, it's a huge market, already 20% of the revenue, something like that, but look, i mean, china meantime is censoring messaging apps ahead of the congress this fall and strict guidelines there. what is the challenge for her, do you think >> well, i think the main challenge for her is to navigate this difficult regulatory environment. and it seems like she has done a pretty good job. and i think if you look at her

linkedin profile, there are reviews of her managerial capability and her ability to lee yaz with various parties within china they will indeed capitalize on what is significant pent-up demand for the iphone. so we've done significant survey work in china, and what we find is that these two years of declines that we have seen for apple is a result of one you had iphone 6 and the success that was a big iphone 6 near china. obviously it's going to be down on the success and then on a 7, it was surprisingly down. the reason it ended up being down according to survey data, chinese consumers seem to have found out about the incremental features that are coming into the iphone 8 swelgs the -- >> i don't know. i mean, do you think it's possible that look, they all use we chat and you don't need an iphone to use that so for me, right now, if i moved

off my phone, i'd use imessage, but that networking effect doesn't exist in china why should they pay up for an iphone >> yes, i'm not going to speculate as far as a reason why our survey data indicates that there's significant pent-up demand been what we can see is that the iphone users in china, they do indeed intend to continue to buy a new iphone in fact we look at the sensitivity of that, whether or not a price increase would drive users away from apple, and what we find is at least within the $50 price increase, that's not going to happen. i think ultimately the answer is my guess is that the strength of the brand is that strong it doesn't matter whether or not you're using imessage or we chat or whatever. the strength is that strong. and you see that in the united states as well by the way, is imessage really a networking effect here in the united states? it's not it's the brand >> i don't know. it's important to me that it's blue and not green

that's -- michael, what about you? >> i think you're breaking news to me that there's this thing. >> a difference. >> but, i actually wonder though, what your survey work about the potential demand for iphone 8 in china is relative because it seems to me, part of the bull story on apple for this rollout has been that china would be a very successful market even to the fact where it's the iphone 8 of course, fortuitous number in china. >> yeah, our sur ray work indicates that iphone will be up at least 2x year over year in china, actually more than that we're haircutting that and modelling for a year over year increase that's actually driving us to model, i believe, 19 become the of the consensus for iphone as well as overall on revenue basis, 13% for iphone in fiscal year 18. the reality is, this is no doubt going to be peak earnings for apple, and valuation on peak earnings would not be the right

thing. so i think the right thing to do is look at what is a user base, what's a refresh rate. we think that's going to come to 250 million users per year buying a new iphone about every year, increasing about 10% a year that's what we do our valuation on not the peak stats we expected fiscal year 18 >> i hadn't thought about that, the iphone 8, that's huge. >> that's one of those things that's been mentioned. tenth anniversary iphone was not as significant in that regard. >> if you're going get married on the 8, you know, probably more likely to buy an 8 -- >> not rolling it out on august 8th. worth a try. >> not going to be ready quickly on that, are you concerned about the rourts of delays and supply shortages? >> well, i'm concerned in so much that you're going to be -- you might have a little bit a miss on the september quarter and december and march an june quarter even better. at the end of the day, no, i'm not worried. the only thing slightly worried about is that are you going to

have leakage of yurzers that say i'm tired of waiting now got to wait -- >> i'm just going get a galaxy >> if they've waited this long, an extra month twor isn't going to stop them from waiting. >> thank you so much for joining us talking some apple meantime, new tv is so new it doesn't exist yet dreamworks co-founder jeff have i trying to change that with his new media brain child. coming up, what's so new about it and netflix which nabbed -- i'm sorry, 91 emmy nominations this year has one are hollywood heavyweight refusing toebz t.eate content for i who that is coming up in fast take g air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams...

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mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. welcome back it's time now for the cnbc news update with sue herrara. hi sue. >> hi kelly, here's what's happening that the hour, everyone president trump summiting gop senators to the white house. telling them they must not leave town without sending him an obama carrey peel bill to sign afterwards, majority leader mitch mcconnell said they will vote to repeal next week >> it's pretty obvious, we've had difficulty in getting 50 votes to proceed but what i want to disabuse any of you is the notion that we will not have that vote next week we're going to vote on the motion to proceed to the bill. next week. >> a brazilian judge says bank accounts belonging to former

president silva have been frozen due to his kwix on corruption charges. they amount to $190,000 in four accounts silva has been sentenced to nine and a half years in prison by that same judge. chipotle has reopened a sterling, virginia, location after temporarily closing it when some customers reportedly got sick officials say with symptoms consistent with the norovirus. company officials say they are working with health authorities to understand the cause of the illnesses. >> sue, thank you very much. and it's time now for the fast take today. the first one up is batman director christopher nolan michael saying he doesn't to want work with netflix on movie distribution and to make things worse, he thinks amazon is handling movie distribution correctly. >> amazon does make theatrical release for some films where it's not simultaneously allowed on treaming. netflix has been out front in saying that's not our way.

and i think it's going to rub directors the wrong way. some will be on film and not digital. some want it differently >> is it ultimately the directors who pick sides or the industry -- >> netflix isn't going to work with every director out there, right? you work with the ones who are okay with the way you to things. in the shareholder letter with earnings just this week, netflix pointed to their policy and said people don't like it, the higher establish want doesn't like it we think it revitalizes the film industry to do it this way, not the theater industry >> nolan has him coming outs i like it on the imax. >> if they're simultaneous, if you want to see if it in a big screen, the market will go the wrong way. >> i think they're going to have to choose one or the other up next, news today of talks between discovery and scripps. and now the journal's reporting that univisionhas been fieldin interest from potential bidders after doling it's ipo. now mr. santelli, there's a common theme, his name is john malone, and i want to know what he's up to >> his hands are in different areas of media

he's always looking at good, core media assets. univision would qualify that as a price. he feels like he knows where that would fit >> interest-related note was one of the analysts saying they think charter's going to be most exposed to the drop and pay tv numbers in the quarter so all the sudden, do you need to do some bigger -- >> big stake holder in charter >> does he need to do something more aggressive to create a content in delivery? >> he's working with house money with charter when it comes to how that stock has done. obviously, you have to try to put a lot of pieces together and figure out thousand works. i think the scripps discovery something more about look, they're both disadvantaged channel sets and you want to get them together so you have a little bit more leverage. >> yeah, it's going to be interesting. they have strong brands, weaker ones as well we should mention the president is making some remarks leading a made in america round table. let's listen in. >> actually bought a couple of pillows, and they're very good they're great. i've slept so much better ever

since. thank you very much, michael good afternoon, and welcome to the white house. we're here today to continue our celebration of american manufacturing as part of made in america week the leaders and innovators create the products that fill our homes, defend our nation and enrich our lives and each one of these products proudly carries the label, made in the usa do you remember in the old days, we used to say made in the usa, that was when we really had a great pride in our product and you do, but unfortunately, we've lost a little something, but we're gaining it back very quickly. you see the stock market hit a new high and jobs are the lowest they've been and the best jobs report we've had in 16 years. unemployment numbers, fantastic. how we're doing. but we're also going to take care of the 95 million people out there that aren't working and we have to remember that's

not really part of the statistic i've been talking about that for a long time. and when we got those great reports, i kept saying, you know, those numbers, whether it's 4.2, 4.3, i said, far long time, they don't matter, but now i accept those numbers very proudly. i say they do matter but we're doing very well with the jobs and the jobs reportings and doing very well with companies. we're really moving along. from day one, my administration has been fighting to bring back our manufacturing jobs and to crack down on foreign countries that cheat, a lot of them. we will end the theft of american prosperity and we will stand up for our companies, our factories, and our workers is that okay with you, michael good [ applause ] made in south america more than a label or a product, and it's just something so important to us it's a stamp of excellence

badge of honor and tribute to the tremendous skill of the working men and women who design and build these incredible masterpieces and different products of all types. when american workers have a level playing field, they cannot be beaten. they have not had a level playing field in a long time but you see what's happening step by step we've gotten rid of regulations, and a lot more are coming. we have some statutory requirements where we're not allowed to do it until certain dates, but they're coming as fast as those dates come we've opened it up, and it's made a big difference for the farmer, hope builder, for so many and for the manufacturers that's why we want to ensure the integrity of the made in america label, my administration is committed to working with the private sector to ensure the protection of made in america and the label through efforts like certification, greater transparency, and stricter enforcement efforts by agencies like the federal trade

commission we will have zero tolerance for illegal counterfeiting, piracy, theft, or intellectual property, and they really, they take our intellectual property like we're a bunch of babies, but no longer and false claims that a product is made in america and as time goes by the value is going to be greater and greater, you're going to see more and more of this there was a time that people didn't to want use that name or take that name now they're taking and that's because it's become, we've become very proud of it again. around the world, the made in america label is the gold standard for craftsmanship, quality, and artistry. and that is one more reason why we have to protect it. i mean, we have to protect it. not for me, not for you, but for your grandchildren, that's what's happening we must protect it from a legal theft and from abuse

we are mutting america first and as you know during our campaign, i had a slogan, a few of you may have heard it, it's called, make america great again. did you have ever hear that slogan i think so [ applause ] >> that's the president speaking at his made in america round table. we are standing by in washington, with some reaction on look, this is hardly the biggest event of the day, still, they're making a point of emphasizing it this week >> yeah, look, this continues a theme that the president wants to hit this week which is made in america he wants to promote products he's had inventors, entrepreneurs, ceos in all week talking about products that are made in america. you also heard the president there touting that pillows made in america, he slept well since

he bought a couple of those pillows. he's giving an endorsement to the smaller and midsize companies here today and the president there talking about the employment numbers saying that during the campaign, he didn't trust those numbers, but now, he values them and thinks that they're true and accurate and fair, now that they reflect good things upon his administration so the president going through sort of a litany what have he sees as the greatest hits of his presidential campaign and also the achievements of his term in the office so far. this is a fairly light hearted event for this president after a tough day on health care in which he's doubled down now and said that he really wants this administration to push for a health care vote next week even though we saw them unraveling of the health care effort up on capitol hill. so a dramatic strategy by the president earlier in the day, today, light hearted bantering >> yeah, they've got the mypillow guy in there. that's what he was talk abouting >> that's right. >> some of the other other companies, lee filter gutter protection, as you said, perhaps

probably a welcomed moment for him. by the way, did he -- go ahead >> yesterday, they had hinckley yachts from maine here with a beautiful boat down the south lawn so i wanted to get closer to that boat, didn't have the chance >> yeah, you're staying away from the caterpillar machine. >> i can't operate that. >> as mentioned, been waiting for any further comments about the fate of the health care bill, tax reform, et cetera. looks like he sort of stayed on top of it. let's look at t-mobile shares. reopened at 4:45 after the company's earnings report today, up nearly 33%. anything to add there, michael >> no, just i think that people are seizing on the fact that they have those customer market share gains. and, you know, the top one being, i keep going back to that, this is kind of a zero game industry in the u.s. right now with wireless. seems like they remain and also the stock has pulled back hard, outmmpled the rest of them. >> we're seeing it up 3% after

hours. the energy sector has not been so energetic either this year for investoring. and it's one of the only two along with negative. ury one analyst says a tn around could be around the corner stay with us

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811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. welcome back here's how we finished up on wall street, all of those averages that you're looking at. all four major ones finished at record highs today the dow is up 66 points. the nasdaq up 40 and the russell up 14 and the russell and nasdaq were the strongest performers. benefitting from biotech strength with vertex in particular popping big we've got a.m. medical examiner

down 1%, qualcomm down 2.5%. and t-mobile hanging on right now to a 3% gain by the way, with today's gains, the information technology sector of the s&p 500 closed above it's march 2000 prior closing high there is yet another record for you. let's get over to qualcomm which we mentioned was trading 2.5% lower on it's earnings john ford just spoke to the ceo. >> i just got off the phone with a couple of his top deputies don't expect to hear a lot of new news or really any new news about the legal issues with apple on this call he said they don't have a lot new to share also confirmed that the miss on the guidance on eps was due to analysts trying to figure out the mix of business in this legal environment with apple they're providing qualcomm's providing some additional numbers that they hope will help the street to do that. also, we talked about nxp, that pending acquisition. he says he's confident that it's

on track, not just on the regulatory front, but, you know, the shares tendered so far are about where they would expect. as far as highlights in the quarter, you said the non-mobile business, and that includes areas like automotive, like industrial internet, networking, connected speakers, think amazon echo, that was up 30%, also strength in the chip side of the business, led by a stronger mix toward the premium end of things, that's both in china where the mid to high tier did well and also, derek, the president pointing out that chinese oems, that's makers of phones in china doing a better job selling those phones and to southeast asia, india, and other emerging markets, that is helping average selling prices come down less than they had been kind of providing some support under those chip prices, qualcomm sounding confident that the end of the year will be good for them as the smart phone buying season kicks off, kelly

>> and john, just for that main question about these issues with apple which we saw is kind of joining up with it's contract, with it's suppliers to try to say to qualcomm, you're asking for too much, you're asking for more than these are really worth. what's the company saying about that >> this is really more of an apple specific issue apple actually didn't have a direct license with qualcomm for the technology it was through the contract manufacturers, and apple stopped paying it. first, qualcomm just sued apple over this then sued the contract manufacturers since they were the ones with the license. now the contract manufacturers have countersued everybody's suing everybody now, but, the details of this have not changed, qualcomm contending, we're not just a component supplier our intellectual property helps make the smart phone what it is apple saying hey, you're asking for too much here. you're asking for profits based on our innovation. and a court or perhaps a settlement will decide, kelly. >> yeah, shares still down about 2% thank you.

john ford speaking with the ceo. studio exec jeff has big plans to revamp tv as we know it but it's going to cost a pretty penny and will buyers pay up we'll find out oil prices falling more than 12% this year. next guest says this is an opportunity to buy this beaten down sector. we'lha me aus mentl veorindjt

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welcome black. it's been dined of overshadowed but the energy sector led way t. up 1.4%. it's been one of the biggest laggard this is year down 12% and only one of two sectors to be negative since january. paul were to note last week saying energy is ready if for a bounce it's bouncing, paul. >> yes, so what we were looking at last week is basically four different factors that by themselves were small positives may not warrant getting too excited, but together, they really add up and we have to take notice. so, the first of them was the divergence and internals sochlt the number of stocks getting new lows was contracting when you see an index making new lows, but the number of stocks making new lows contracts, it's

positive secondly, in the high yield energy sector, we saw spreads not making a new high. that's a positive divergent you like to see. that's from the sentiment side, things had gotten really washed up short interest in the soak tect. which is from just six months ago and near highs we saw back during real extreme sell off over year ago and finally, heading into earnings season, sentiment has been negative. a net of 75% of the companies have seen estimate cuts coming into earnings season in the month leading up to it there's only been two other quarters in 2009 when it was weaker an in any quarter where it was 50% or more, sectors averaged a gain about 3% with gains eight out of ten times from a specific stock perspective, just in the services sector today, we're seeing a number of stocks breaking these trends we've seen like apache, eog resource,

halliburton and payne and so all these stocks are showing there's investor interest and due for a short-term bounce. we think there's a lot of overcapacity in the sector, but for the short-term, you have to like the set up. >> that's what i was going to get at a lot of this technical stuff you listed seems like it's ready for some kind of a catch up or reversal type of bounce. does it say anything, can we infer anything from the stock action this little rebound about where crude prices may go or whether in fact fundamentals are taking shape >> we've been talking about this energy sector playing this out post bubble and following it closely. similar to what happened to tech in 2000 and financials in 2007 and the bottom line is is there's still a lot of overcapacity in the sector and until you see that worked through either through consolidation or other mean, it's going to be a long-term

head wind for the sector over the next year to 18 month, but shorter term, looking pretty good here. >> so, what would you be looking for so say, okay, this trade has maybe run its course >> you know, when you get a short-term gain in the sector of say for the energy sector, you can get a move, short-term move of 10% off the lows. if you see that, we start take federal governmeprofits there. you start to see oil rebounds commensurately with the stock, then we'll have to reevaluate. the stocks are just bouncing as a technical bouncer. >> paul, it's good it have you with us. we'll see how much further it can go appreciate you joining us. >> good to see you >> giving him trouble. breaking news on the senate bill to replace obamacare kayla, what's the late snes. >> that we will get a cbo score today. the cbo just issuing a statement via twitter and its website

saying it will releasest ma ests of the reconciliation act of to 20 17, which was just push richrich published, this appears to be b the bill representing the app l appeal, but we'll see exactly what that report shows and its impact on the insurance markets when we get it and how it differs from a a score issued in january at that time >> yeah, i mean, the numbers, i don't know what look, we know it's going to be 32 million or whatever the number is of people who are going to be without insurance. that was from a couple of years ago! yes and premiums over the next ten years would double those are numbers we're looking to compare >> later today thank you. kayla in washington. meantime, he says he's got big name lix jj abrams and jerry brook heimer ready to create content. can he reinvent tv from mobile

then ahead, the man who called the june sell off in tech. why he's now bullish on the sector be right bark. because we don't like surprises. yeah. like changing up the celebrity at the end to someone more handsome. and talented. really. and british. switch from cable to directv. get 4 rooms with hd, dvr, and every box included for $25 a month. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream)

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julia? >> that's right, the media mogul has a bold, ambitious plan to reup vent television for mobile devices as well as mobile viewers. calling the the this new service new tv original video series with episodes no longer than ten minutes covering everything from news and sports to sitcoms and reality tv new tv will be distinguished by

production costs and therefore, the quality, top tooered television he says he has top show writers on board -- will be able to for media giants disney, fox, cbs and lion's gate by enabling creators to own their long-term content rights he says the it will take at least $2 billion to launch this service. he tells me he's in active talks with all of the platforms to find a partner who may also help fund this project. that list includes apple, gool l, at&t, verizon, t mobile, spoti fy and smap chat the partners will help determine the business model, whether it's ads or subscription models or a combinati combination.

this would sound impossible if it were coming from anyone else, but his four-decade track record in hollywood and his close relationships with so many of the leading players at the studios and media giants make him seem like he has a real shot >> do you have any, i know he' talked with people about the content piece of this, but how long a thing are we talking about? any idea what kind of dramas or comedies >> it would be everything. like television, so the idea is that on our mobile device, we watch content and we want to watch in no more than ten minute chunk, so, whether it's news or sports, a show like sports center maybe a business news show or a nightly news show, something like that, but the whole universe of what you would find on your television, now, you'll find that on your mobile device through your tv. >> thank you michael, what do you think we could do ten minutes. >> you could trap this down to ten minutes funny or die is is

try iing things like this it's kind of a leading edge. at some point, somebody had to invent the sitcom. wupt u just movies and plays i think there's going to be a market maybe for the big tech company, it makes sense g >> got to get people going michael, thank you very much feel better. that does it for close"closing . "fast money" begins next >> "fast money" starts right now. overlooking times square, i'm melissa lee. your traders on the desk are -- tonight on fast, nasdaq on a nine-day wibing streak at record highs. and the man who called last month's pullback in the sector is back with a bold, new call. plus, hedge fund managers are having a dpogood year. we'll tell you how he's putting his money where his mouth is and later, a number of big names