>> i guess so. >> forget about that. >> all right. >> thanks for watching "power lunch." >> don't forget. big event with donald trump, the president coming up talking about health care. you don't want to move "closing bell" starts right now. >> hi, everybody happy monday and welcome to "closing bell." >> tgim, i'm bill griffeth and we're kicking off what's going to be the heaviest week of earnings this quarter. about an hour from now we'll get the results from alphabet, the second of the so call f.a.n.g. stocks, even though those that's the "g" in f.a.n.g. >> got the "n" last week. >> that's coming up in a bit. >> "dunkirk" which you saw. >> i saw most of it. i'll explain later >> it did sweep the box office and imax raked in nearly a quarter of the film's domestic gross box office the company's

ceo will join us with a first on cnbc interview. >> it was really good. breaking news from the white house. president trump about to discuss the senate health care bill. kayla tausche has a detail and maybe some breaking news as well kayla? >> reporter: bill, we are expecting the president to make remarks from the blue room here at the white house in just about 15 minutes time but it comes as the white house and its cabinet agencies are trying to coalesce and put together a unified policy and a unified front in exactly what its stance is when it comes to health care. of course, this as the senate is expected to vote this week on a procedural motion to proceed on the house's health care bill it's that sort of slate from which they can build, they can amend, they can potentially edit that as they see fit, but it is that motion to proceed that is going to come up this week i'm told by senior gop aides there's no date set for that just yet, but in terms of white house policy, a senior

administration official tells me here at the white house this morning there was a meeting between principals from the office of management and budget, the health and human services department, the white house legal team, the national economic council, treasury and a couple other units of the administration to talk about this issue of cost-sharing reductions and whether on a go-forward basis the administration would be willing to make these payments to insurers going forward i'm told by the senior administration official that no decision was reached, that the principals broke after the meeting without a unified agreement on what exactly the white house is going to do going forward. when i smoke to people in the press office here, they said they didn't want to get ahead of the president's remarks this afternoon. when i spoke to the hhs, i just got a statement that came into my in box right as i was going to air saying secretary price supports the president's position as part of the deliberative process, secretary price believes the decision-makers have a full understanding of all

potential outcomes that's attributed to a national spokesperson for hhs, but interestingly we don't know exactly what the president's position is on this matter he's said at various times that he's willing to keep it afloat or that he's willing to let it fail, that he could unilaterally pull the plug on some of the patients that the insurers have cited as one of the reasons that they are going to stay, raise prices or leave these exchanges, so we'll see if the president makes any comment to this effect but interesting to note, guys, that according to a senior administration official the white house has not decided how it will treat these patients going forward, despite attempting to do so. >> and so -- they have to make this decision every month, right, kayla >> well, in may -- >> or they will right now. >> in may they made a decision because of a pending court case that they had an option to freeze for 90 days and the strategy at that time was to make the payments for 90 days while that case was on hold. now, from the date of that decision, is which was may 22nd, that would seemingly cover the

payments in june, july and august and the white house went back and said this is a month-to-month thing we reserve the right to change our mind they are trying to expert leverage over insurance and lawmakers though despite back in may the plan was to make the payments for 90 days >> we talked about this last time around. they have said their premium increases would next year go from 4 boss to 25% so obviously a lot at stake kayla, for now, thank you. you saw the picture of the blue room at the white house the president right now is meeting with some people involved in obamacare who had unfortunate experiences, we are told, and then he's going to come out and make a statement about health care. >> democrats in washington, meantime, have been rolling out their new populist agenda ahead of next year's mid terms ylan mui has the details. >> reporter: this plan is called a better deal and it's part of democrats' play to win over working class voters this new campaign includes an

independent agency that would take on the cost of prescription drugs and a trust buster to scrutinize and corporate mergers, the beer industry and even cable companies and democrats made the announcement this afternoon in berriville, virginia, a rural town in a contested congressional district and some of the biggest names in the party were there, including senator elizabeth warren >> americans know that this economy is rigged, rigged in favor of billionaires and giant corporations and rigged against everyone else, and it's not hard to see how this happened in industry after industry a handful of corporations have seized power in this country >> reporter: democrats say their plan will lower prices, raise wages and put more people back to work. senator chuck schumer has admitted that president trump crafted a better message back in november but, guys, democrats

are realizing that they can't just be against trump if they want to win in 2018 and beyond that we'll see if this new campaign resonates. >> yes, we will. ylan, thank you very much. ylan mui in washington let's get to our "closing bell" exchange, a down day except for the russell which is up, so no records at least right now for the major averages cnbc contributor peter bookmahr. >> steve grasso, it's not an opec meeting but they had a meeting of the opec ministers and oil has popped and you've got a fed meeting and a lot for the market to try to digest. there's a lot to digest and oil

has definitely bounced and oil is starting to stabilize around those levels we heard from halliburton, they beat the stocks down bad conference call and if they are changing their ways on cap "x" being that oil is having a hard time breaking above 50 and if you believe that the company will have a hard time and oil will have an easy time breaking above 50 so that's the crude angle. the problem is we don't know how to play those companies because they are lag yards riggards rigd if you think you want to hit a home run in the next six months you have to sort of swing for the fences and you might come up empty, but a lot of people would play energy. >> halliburton down 5% it did catch my eye that both the dollar and crude were up the dollar weakness pretty

indrebl. what do you make of it all >> i think it's a combination of factors. yellen is certainly tightening and we know how gradual that will be and other central banks are trying to take away the punch bowl as well and the dollar is one of the more overcrowded trades we saw in many, many years the u.s. economy going into this tightening cycle has been pretty fragile and investors are somewhat concerned about that and that helps to explain the weakness in the dollar. >> rick, i mean, we've got the fed meeting. nobody is expected them to do anything policy-wise, so do they have a barbecue with hot dogs and hamburgers what are you expecting to come out of that meeting there, anything >> well, just the back that we have 2s, 5s and 7-years, no early auctions or postponements of auctions and whenever there's a press conference and it looks like something happen, the auction actiongets tweerked. i think this is pretty accurate.

i don't expect anything, and you're on to all the main topic. peter boockvar has it nailed down with regard to our fed in the ecb. you think our fed will talk up potential balance sheet reduction and maybe they will actually get around to doing it, but we're probably learn in jackson hole that mario draghi is probably not going to talk about it very much don't think he's anywhere really close to doing anything substantial, so the same dynamic stays in place our central bank steps out and others continue. it kind of gets lost in translation finally and the markets are ongoing with low volatility i think more of the same, and i would even go so far as to say that with regard to our balance sheet, i really think what ultimately what it will turn out to be is somewhat smaller obviously than 4.5 trillion, but everybody including ben bernanke is talking about, they want it to be less than $1 trillion, .75 trillion before the crisis hit because that's the new kind of

bank of liquidation and potential liquidity, so we're always going to see something larger than previous to the crisis and most likely rates by the fed, if they can get one or two more, that gives them three or four eases when things get softer, and soft is what everybody is most concerned about these days the glide path has changed ever so subtly, but it doesn't seem to be on the same upward trajectory it was three quarters ago. >> steve, how important are earnings from google after the bell to the rest companies this week you already mentioned halliburton and we saw the impact the laggards have had on dow the last couple of session. >> it's very important and if you're looking for a rotation to take you to the next level in the s&p, then you'll need to see other companies or other sectors do some of the heavy lifting, and it's very difficult to rotate out of tech when you have netflix print up 10% day after earnings, so it leads people to believe that they can still ride the f.a.n.g. names. >> go back to alphabet on the

screen it was around $1,000, unless my eyes fail me back below the low. >> that's the case how do you tell people to rotate into energy and rotate financials have been up. financials if you go back to the election really popped pretty aggressively to the upside, but how do you tell people to rotate into energy when tech has performed the way it has. >> all right gentlemen, love to continue the conversation we've got to get ready for the president and his comments on health care so we move along thank you all, peter boockvar and steve grasso and rick santelli, thanks see you later. >> a little more than 45 minutes ago. the dow down 37 points and the s&p lower by a point and a half, the nasdaq up 18 and the russell hanging on to a gain of a point right now. president trump is set to deliver a speech on the plan to replace obamacare anyminute now. we'll bring that to you live as soon as it happens and we'll have instant reaction on what it means for insurance. >> and the motion picture

"dunkirk" helping to fix the slumping box office and when we come back the imax ceo richard gelfond is here tell us whether more films like "dunkirk" can get people off their couches and back to the movie theater like me. >> we want to hear from you. closingbell@nbcuni you're watching cnbc, first in business worldwide ♪ [brother] any last words? [boy] karma, danny... ...karma! [vo] progress is seizing the moment. your summer moment awaits you, now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event.

just a reminder, the president is scheduled to go before cameras here at the blue room at the white house to talk

about health care. it's his statement we'll find out what's on his mind after a meeting with citizens who have had trouble with obamacare in the past that will be coming up momentarily. we might have to interrupt our conversation in a moment. >> see if he alludes to the vote tomorrow that issue that kayla raised at the top of the hour about whether they will continue to continue to pay that amount to the insurers anyhow, that's what we're listening for. christopher nolan's war effort "dunkirk" seeing a strong opening weekend at the box office, the evacuation of british solders pulled in more than -- >> that's imax ceo mark gelfond. i'm sure you were cheering after you saw the box office receipts. >> i was actually screaming in

happiness. >> so many things to talk about. you were really very closely tied with christopher nolan in this because he shot most of the picture in imax cameras, right >> you have to go back about five years chris wasn't enamored with 3-d and always loved imax and we worked with him and some of the "dark knight" movies and batman, "interstellar," and we've become a family he loves imax and developed a tempo this working together. >> do you think this makes other directors think twice about how much more deeply they can get involved >>ive 'thought about that. other directors have used our cameras for sequences like in the "star wars" and "mission impossible," brad bird did it. michael baie used it a great deal and there's something about the movie industry it's somewhat of a me, too industry when one tornado movie works

everyone wants to make a tornado movie. i think more and more people will work with us. >> the fact that this kind of movie is released in the summertime this is the kind of movie that comes out end of year to get ready for the oscar movie. >> i was a little bit nervous, a war movie, millenials, wouldn't work, but you have to have faith in chris the guy really knows what he's doing. besides a filmmaking genius he's a marketing genius also and he proved it again. >> i saw it yesterday, and when i left i'm looking around at the crowd that was going out mostly male but also older couples as well, and that was sort of the demographic i think that you ended up going after, didn't you >> it's interesting, because when you think of imax, you think of "fan boy" but a lot of our biggest movies like "gravity," like some of the movies that chris has done before "interstellar" were not phone boy movies >> it doesn't open in china until september 1. >> right. >> you guys had some roadblock

in china or bumps in the road lately imax, i mean, do you think this movie could be an important part of giving a little bit of a business to the business over there as well? >> in context we've grown to where we now have about 400 theaters in china and we're a central force in china on positive side. content has been a little challenged this year i'm very encouraged because in taiwan this movie did very strong results and typically the china box office follows the taiwan box office. i feel good about it. >> your stock is doing well today. let'sface it, imax stock has had a tough year so far, and it got me to thinking you had to have received some takeover offers at some time or another, chinese distributors buying up u.s. distributors. i would think that you would be a prime target for a lot of these companies to want to buy up the imax system as well. >> well, i'm flattered you think that, bill, but i won't comment

on it one way or the other. >> i didn't think you would. we're seeing consolidation in the distribution industry anyway for various reasons. i would think at some point you would participate in that, don't you? >> we'll have to wait to see what happens. >> one sort of related question on that. we had a guest last week tell us that the reason he thought your stock was vulnerable because netflix has been pushing this simultaneous release model where we'll give a them to and put it into the box office. will imax remain opposed that you can watch films in your house at the same time they appear on imax >> that specific model we don't like so we're a very innovative company so coming out december 1st we did a film with marvel. marvel did a tv show called "inhuman." released in imax and three weeks later on the abc television

network. we don't like the netflix day and date model but, on the other hand, it's a changing world and you need to be open to new technology. >> we have to go here in a second i was reading the other day that dunkirk is exhibited in six different formats including something called laser protection and xenon protection. what's that? are we slicing and dicing it >> when xenon is the first generation of digital projection which replaced film and laser is another iteration on the cutting edge. >> am i going to notice a difference >> you will. at lincoln square at 68th and broadway and check it out and tell me what i though >> i missed the first 20 minutes. >> he was watching the golf. >> british open got in the way "dunkirk" is much more entertaining. >> thank you for calling us

today. richard gelfond, the ceo of imax president trump said to to issue a statement on the plan to replace bamacare. >> and alphabet shares that been doring should you buy after the earnings reports come out in less than an hour. >> you won't see the rock's new movie at the local multi-plex. when we come back hewhy teamed up with apple to produce a four-minute commercial when this bell rings...

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welcome back with the dow down 39 points, athletics retailer hibbett sports releasing reports that its stock is down 31% and look at footlocker down 4.5%, dick's down 5.5%. hibbett which has a $300 million market cap cites very challenging sales trend and significant gross margin pressure in this warning footlocker as i mentioned, dick's and also under armour are all getting hit on the back of this news and hibbett sport is part of the death by amazon index which turns performances of companies due to the rise an amazon here's their stock performance

and moving on downward slope since last year. >> yesterday one of under armour's star athletes jordan spieth won the british open with an incredible performance there at royal birkdale. >> i read about the bogey. i want to hear about the bogey that was just unbelievable. >> he hits it way off into the trees. >> the eagle putt. >> hit it so far off the fairway, and it took him 20 minutes to hit that one shot and here he is winning the british open and under armour, he's got the logo all over the place. typically that would have been a rally day for under armour but not today with the hibbett news and all that's going on there. >> not to mention -- >> and, again, this is the first reason why i missed the first 20 minutes of "dunkirk." >> i was going to talk about return on assets but that's not nearly as interesting. >> this is interesting duane "the rock" johnson is teaming up with apple for a new commercial to promote siri. >> hi, syi, show my my light

goals list siri, give me a ride to l.a.x. >> boy, would i love to do that with minute. the commercial was launched an app although's youtube channel showing the rock using siri for various situations throughout his day ranging from hailing that car and traveling in space. it highlights all the many talents that the rock has these days. >> i thought you were going to say that siri has. >> well, i think that's the point as well and also as you see there he's able to move around and not just talking to siri kindle has tried, plenty of flops in this area and if they have this great technology maybe it's deployed somewhere. maybe it's just an app

you have the amazon alexa, have her on your phone, iphone, blackberry and maybe can you talk to her that way. >> i kind of just like having her at home. that works for me. >> sorry, cindy. 35 minutes to go to the close. there's a lot of differentiation across the markets today the dow is down 34 and the s&p is barely lower and the nasdaq up 24 and the russell up a point and a half fannie and freddie are supposed to help increase homeownership in the u.s. and why are government-backedent tis helping to now finance landlords that's coming up. >> alphabet's earnings coming up after the bell and wlle' debate whether this hot stock will cool off or keep rallying that's coming up h the dog-sized? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly

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we have six decliners and five decliners advancers, financial leading the way with about a .4 of 2% gain and technology up a third of a percent and the nasdaq still having quite a session, up half a percent and it's on track for another record close bill >> all right kelly, we've got 30 minutes left

in the trading session as we await the president's statement on health care could get under way any minute we might have to interrupt peter costa or maybe the president will wait for you. >> who knows about the president. >> don't go there. >> a lot of earnings our busiest earnings week. expectations >> yes so far this is a little bit better than i thought we'd see, and i think we're going to see a lot of they can stocks this week you know what, they are probably going to do well, and this is, you know, this is an ongoing theme here >> you know, a very instructive chart was put out late last week that we highlighted. even the stocks that perform well, the earnings that come out better than expected the stock only goes up maybe 1% that day. >> right. >> when you disappoint, stocks have been down about 4% on average. >> that traditionally when you have a fully-priced market you usually see something like that it gets hurt when it misses.

i think that a lot of the stocks that we've seen so far this year have done very well and i don't think there's a lot of room unless they blow out earnings, and we've even see blown out earnings where the stock has only gone up fractionally >> exactly. >> so what i think you've seen is a little bit on the hard side nobody wants to hear that, but the truth is if you don't see companies beat earnings and run with it, then you really are getting into territory where things are tired. >> and, of course, guidance is all important. >> and the guidance has been good though. >> it has been good. >> thanks, peter see you later. >> kelly. >> time now for a cnbc news update with sue herera hi, sue. >> hi, kelly will. here's what's happening, everyone a virginia health official says a second person has tested positive for norovirus after eating at a chipotle location in sterling last week restaurant was temporarily closed and reopened after a

complete disinfecting. >> james bradley matthew jr. leaving court in san antonio handcuffed and wearing blue jail scrubs. a big day for white house interns taking a group photo with the president of the united states president trump complimenting them saying they have done a great job, but then a reporter interrupted asking about health care and the attorney general. >> see, they are not supposed to do that, but they are not to so they are breaking the code right there. they don't care about breaking codes. thank you all. you're great >> thank you >> you are up to date. that's the news update this hour back to you, bill. >> all right sue, thanks. as i mentioned, we're just moments away from the president delivering that statement on health care at the blue room kayla tausche is there at the white house. looks like we're getting close, kayla. >> reporter: but it is safe to say that we're running behind schedule here. president was expected to make those remarks at a quarter after

the hour because he's leaving or expected to leave before 4:00 p.m. to head to west virginia for a visit with the boy scouts at their annual jamboree so we will await the president and what he says, but he has been tweeting about health care saying that this is the last chance for republicans to repeal and replace as so many of them campaigned on for the last several years, but the president himself has been going back and forth on exactly what needs to be done regarding health care. he has said just do a stand-alone repeal and worry about replacing it later, let the exchanges fail and then democrats will come rushing to the aid of republicans to put together a bipartisan deal, and then he said, no, we need to go ahead and do a replacement at the same time. otherwise that is going to occupy the bandwidth of his administration's energy going forward because it's such a cumbersome task as he and his administration and the republicans in congress have found out. so we'll see if the president's approach to health care has

changed, whether it has crystallized and what exactly he's going to be asking senators to do. the number two republican senator, john cornyn, told reporters there will be a vote tomorrow on a motion to proceed which is the process by which they will be adding, editing and deleting from the house's american health care act that they passed more than two months ago, but it has to pass that motion to proceed to even get a debate, and from there senators will have 20 hours, just 20 hours, to-- which may seem lik a long time but it's finite to actually figure out exactly what should go in it and what should be left on cutting room floor. it's an issue that has divided the republicans in the senate despite they have a mart job, ever thin in the senate hand in the house, so we'll see where the president comes down on this in just a few minutes time. >> thank you just finished seeing hhs secretary, tom price, and the vice president has begun speaking

traditionally that moans he's there to introducethe presiden so we should be moments away here let's bring in the managing director and health care analyst from capital street. who is he talking here, do you think? is this to encourage the senate on this? to garner public support i mean, what -- he's already had lunch with them last week to try to get them off the dime what do you think is going on here >> i think if the president wants to come out and talk about health care, get the senators to at least vote on the motion to proceed, at least start the debate ant get that moving is you could move to that reconciliation bill which guts obamacare. and if that fails then leader mcconnell has the option to do what's called a motion to recommit to bring up the senate bill so that's a way to actually move in two-step punch-by dash punch process and if that fails then move on to the bcra, we're

calling it zombie care because we think it will never die. >> so explain exactly how many votes you think they have for any various measures that have been tabled here to move forward. >> reporter: honestly i don't think they have the 50 votes for either reconciliation which, again, guts obamacare and is a repeal measure where you would replace later nor do they have 50 votes for the better care -- the better care reconciliation act, so what would happen is a deal would have to come through in the coming days, whether it's additional medicaid dollars, whether it's something along the line of graham/cassidy something that would get the moderates who supports expansion of medicaid sign on. >> senator rand paul saying there's too much pork barrel and too much payouts before you answer, i think the president support about to step

out here if you'll stay with us for just a moment. the vice president just finished introducing the president. >> and we'll see what this statement is all about as he makes his way to the podium there meeting some of the family members who came to the white house today to talk about their experiences with obamacare here's the president. >> well, thank you very much, vice president pence, secretary price, and thank you, everyone, for being here today for the past 17 years obamacare has wreaked havoc on the lives of innocent hard working americans. behind me today we have real american families, great families i just spent a lot of time with them, who are suffering because seven years ago a small group of politicians and special interests in washington engineered a government takeover of health care every pledge that washington democrats made to pass that bill turned out to be a lie

it was a big fat ugly lie. democrats promised americans like steve finn, a former police officer in west virginia, that they would save $2,500 a year under obamacare. instead, his premiums have more than tripled that's pretty bad. as a result of obamacare's skyrocketing cost steve and his family and many of his employees had no other option than going on medicaid and giving up their existing coverage. that's pretty bad. no choice, right, no choice. >> for them obamacare's promise was a nightmare. marjorie and kevin weir from south carolina have a son, monty, who suffers from spina bid ofa. washington democrats promised families like the weirs that if

they liked their doctor they could keep their doctor and now there's only one insurer left in the state exchange, and marjorie says that every year she waits anxiously to learn if the doctors and hospitals which her son needs the most will remain in their network more obamacare lies, and you've seen that. up front, unfortunately. up front and personal. the democrats promised melissa atkisson that her son's pre-existing conditions would be covered. the family quickly learned that obamacare's promise of covering for pre-existing conditions was meaningless though if the doctors you need for care you aren't on your obamacare plan, so you just have a meaningless promise, and everybody knows it, and most people on obamacare know it. after an excruciating series of events and complications,

melissa and her husband found themselves just before christmas emotionally and financially devastated, crying in a doctor's office faced with yet another seemingly unpayable bill when insurance wouldn't cover their care, they emptied out melissa's 401(k) to pay their bills. they are not going to be and they haven't been the first. there are many, many cases such as that, the 401(k)s the first rule of medicine is do no harm, but obamacare's lies have caused this and throughout the whole country families like this, nothing but pain erin and andy witzig are small business owners in illinois and their youngest daughter poppy has a rare genetic condition children born with it are sometimes called butterfly children because their skin is

as fragile as the wings of a butterfly. poppy has to wear special bandages all of the time unfortunately, under obamacare poppy's insurance has been repeatedly discontinued and replaced with what washington dream equivalent policies, but for poppy these plans are not equivalent, and poppy's family has to spend precious time and tremendous resources fighting for exceptions for poppy the washington politicians who made those promises to steve, marjorie, melissa, aaron and their beautiful children want to ignore all the pain, all the suffering and all of the money, the tremendous amounts of money, that these lies have cost. they want to forget about the countless americans they have hurt and the many that they are continuing to hurt every day by refusing to help us replace obamacare. for the last seven years republicans have been united in

standing up for obamacare's victims. remember, repealand replace? repeal and replace they kept saying it over and over again every republican running for office promised immediate relief from this disastrous law we as a party must fulfill that solemn promise to the voters of this country to repeal and replace, what they have been saying for the last seven years, but so far senate republicans have not done their job in ending the obamacare nightmare they now have a chance, however, to hopefully, hopefully fix what has been so badly broken for such a long time, and that is through replacement of a horrible disaster known as obamacare. the senate is very close to the votes it needs to pass a replacement. the problem is we have zero help

from the democrats they are obstructionists that's all they are. that's all they are good at is obstruction. making things not work they say all the right things and then they do exactly what they are not supposed to be doing. the democrats aren't giving us one vote, so we need virtually every single volt from the republicans, not easy to do. the senate bill that is being considered outside of the outright repeal of obamacare will also provide emergency relief for the law's victims, and it will deliver truly great health care and health care reforms that our citizens want, need and really should be demanding. some are demanding you'll see that at the voter booth, believe me. here are just some of these terrific reforms that we will be doing if everything works out the way it should. the senate bill eliminates the painful individual mandate it eliminates the job-killing

employer mandate, repeals other burdensome taxes and will significantly lower americans' premiums it will stabilize collapsing health insurance markets and give americans far more choice and far more flexibility the senate bill protects coverage for pre-existing conditions, and you don't hear this from the democrats. they like to tell you just the opposite, and they didn't even know the bill. they run out they say death, death, death well, obamacare is death that's the one that's death, and besides that, it's failing, so you won't have it anyway it dramatically expands popular health savings accounts. it provides tax credits so americans can purchase a private plan that is right for them and their families it devotes substantial resources to fight the opioid, and this is a tremendous problem, the opioid

epidemic $45 billion is being put in so that people of many states like new hampshire, ohio and so many others that have such a big problem can be helped and helped greatly. going to be fighting the drug problems very, very seriously in my administration. and it provides among many other things higher quality care and more flexibility for states to administer medicaid to better serve their poorest citizens tomorrow the senate will vote on whether to allow this urgently needed bill to come to the senate floor for debate. the question for every senator, democrat or republican, is whether they will side with obamacare'sarchitects which have been so destructive to our country, or with its forgotten victims? any senator who votes against starting debate is telling america that you are fine with the obamacare nightmare which is

what it is for democrats this vote is a chance to make up for the terrible harm they have inflicted on americans like those who are with us today. obamacare has been for them a nightmare. there is still time to do the right thing, and for senate republicans, this is their chance to keep their promise over and over again they said repeal and replace, repeal and replace, but they cannot keep their promise to the american people, to provide emergency relief to those in desperate need of help and to improve health care for all americans. every member of the senate, i say this, the american people have waited long enough. there's been enough talk and no action now is the time for action we are here to solve problems for the people

obamacare has broken our health care system. it's broken. it's collapsing. it's gone, and now it is up to us to get great health care for the american people. we must repeal and replace obamacare now. thank you, god bless you god bless the united states of america. thank you very much. thank you. >> the president with those citizens who had the bad experiences with obamacare, making his case for replacing -- repealing and replacing the health care act. we've got kayla tausche still with us. i mean, clearly, he says here -- the senators who vote against starting debate, they are telling america you are fine with the obamacare nightmare i mean, that has been the strategy clearly for mitch mcconnell. he wants to force the hand of those senators who are reluctant

to vote for the repeal for various reasons, medicaid and the impact it would have on their states, right? >> yeah. i mean, i think that one of the criticisms of president trump over this repeal and replace effort is that he hasn't explained what's in it what does it do, and this was his opportunity to provide about six or eight bullet points about tax credits and the other individual mandate aspects of this bill, so he was able to explain it in a pretty coherent way, i would say i think he was also talking about, as you mentioned, the woes people have faced under obamacare. now is the time. it almost sounded like a hail mary it's now or never. we need to do this, and true, the clock is ticking if this doesn't get done before the august recess, then really the calendar is running out. the budget resolution ends october 1st so you could come back in september and get this done, but the clock is -- is really ticking >> kayla, do you think he did

anything to, you know, kind of galvanize the coalition and move this thing through and get it done >> reporter: well, he did highlight, kelly, that the onus is now on his own party, on senate republicans he said they have not done their job, and now they have an opportunity to do their job through repealing and replacing the affordable care act. he says that the bill as it stands is very close to the bill that it needs. unclear exactly what that means, whether that's one vote, three votes, five votes or even more than that, but he does appear to know something that maybe the public doesn't know which is he believes that it is close to the votes it needs, and is emphatic and has a severance urgency about getting senate republicans to the table on this issue one things that republicans have been critical of the president on is this willingness to basically turn his back on his own party, to buy attack ads or to approve the purchase by super

pacs in various districts of the purchase of ads of senators and members of the house up for re-election and they think that's sort of beyond the pale at this point so that the fear is that he would be willing to do something like that which would be turning his back on the party that he is now calling on to act >> we've got to go at this point. kayla, thanks. we'll talk to you later. ipsita, thanks for stopping by the clock is ticking, but it's unclear whether there's going to be a summer recess may end not having one alphabet is set to report earnings after the bell tonight. should you buy the stock ahead of the numbers what do you do with it victor anthony is our bull and has a buy rating and a $1,090 price target and michael graham works recently downgraded alphabet to hold, makes him our

bear in this particular case so victor, what are you expecting from this report tonight? >> i'm expecting upside to both revenues and operating margins most of the checks have come out extremely possible search has been doing extremely well and i'm expecting some upside and youtube, despite the ad backlash, growth has been very strong and some of the active numbers i've been looking at have been extremely, extremely strong and i think that should offset some of the lost ads that you saw on backlash in the second quarter search is doing well and youtube is healthy and i think an upside on the consensus reports. >> what made you move this to a hold >> had a buy on google since 2011 and recently changed it to a hold rating. looking out over the next one to two years and my thinking is the growth rate is likely to slow down a little bit and in

particular they have really had a lot of growth come lately for increasing ad growth on mobile and that's going to be hard for them to repeat and we did a gross margin analysis that shows the fastest growing revenue segments have the lowest gross margins so we're expecting a decent amount of margin pressure over the next couple of years. >> what are those segments >> when youtube is growing quickly and they have lower growth markets and mobile search is growing quickly and it's those two revenue teams that are causing the move. >> there's more to google than alphabet and youtube there's some of the pet projects of the founders. do they contribute to the top and bottom line enough for you to pay attention >> well, it's early and i'll stum still looking at the results. i'm looking for commentary,

qualitatively what they say about waymo, how do they plan to pursue modernization options there. almost all my valuation for the stock is really baked into the advertising business for google and alphabet. >> real quickly. the eu fine, a couple billion, is that going to be a big swing tactor this afternoon? >> yes, it will fwhfrmt affect the numbers. you may want to look out for that that could create some sort of dislocation with the shares over an eps miss. >> okay. >> investors i think -- will actually recognize that the eu finds, you need to at least lower that tonight. >> what's a couple million dollars amongst friends. thank you. see what the numbers look

like come up the dow down 43 points and nasdaq is in record territory with this real, and the russell is up as well. up next, the countdown to the closing bell and after the bell the much-anticipated earnings report from google, at least from alphabet, the parent company. see with us.

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(elegant music) ♪ and let me play (bell rings) welcome back to "closing bell." i'm seema mody let's continue the discussion around health care reuters is reporting that molina health care sutconsidering 10% of corporate and health plan jobs citing an internal memo sent to staff. that would total about 1,400 positions and will range from senior leaders to staff. the cuts to occur in two waves to be largely completed by the end of september the stock really hasn't been moving on the specific report, but it's trading down by around half a percent bill >> all right, seema, thank you

very much. so we're inside 90 seconds to the "closing bell" with the nasdaq set to record another all-time high here it's interesting that the best performing sector the financials love higher interest rates the worst performing sector the utilities hate higher interest rates as we get set for the fed meeting, just pointing that out there. >> oil had a bit of a pop this afternoon after the studies repeal they will do what they need to do at the meeting in st. petersburg, russia lost in the sauce, bob pins be, was the acquisition of web md, arguably the first online medical advice service that changed the relationship between doctors and patients you could go to them online and look up your symptoms before you went to see your doctor >> i that's been around a 2 million market cap and they were bought out today for 2.1 billion. now news from alphabet and andarka. >> alphabet announced a fine

levied against them by the european union the numbers will be a little bit different than some people anticipated. but that fine very interesting. >> we'll see what impact that has on the bottom line when they report their earnings momentarily on the second half of "closing bell" with kelly evans and company. see you tomorrow, kell >> thank you, bill b.welcome to "closing bell," everybody. i'm kelly evans, a gain enough to put the nasdaq above the prior high and other than the russ rell we're seeing declines. going the other way for the s&p and for the dow and a lot of variation today. the nasdaq notching 6410 which also is the first timing that the nasdaq has closed above 6400 so a third of a percentage gain

as we await key earnings from alphabet in a couple moments the russell 2000s showed a gain of, what was it there ultimately, 1438, two points the s&p couldn't quite do it, down a couple of points and the dow down a quarter point and shed 50 points to 21,528 alphabet with the earnings reports coming out shortly and we'll bring you the results as soon as they are out instant reaction from a cautious analyst and a bullish shareholder. you would hope they were bullish. anyway that debate is coming up joining me on thepanel is senior markets commentator michael santoli and dani is hughes, ceo at divine asset management and kevin o'leary shares of o shares investment. let's start with some of the market behavior we saw broadly it was interesting in the only did you have the indices all over the place the dollar was up and oil up do i even mention bitcoin. that was up, too

what do you make of it all >> when it comes to the dollar and treasury yields they bounced very, very mildly from, you know, the declines we saw last week, and i feel like that kind of set everything else into a bit of a holding pattern banks were up most of the day and everything else was more soft look, holding within a couple of points of all-time highs is sort of an achievement, and i think it's as matter of can earnings justify where this market got to good earnings are a prerequisite for the s&p at this level. it's not to me in themselves a catalyst to shoot you have higher. >> and the earning suggestions, they are talking about big increases. next year helped by the dollar which has recently been weakening. it's $124 and 135 next year and we've been flat at 118 for the last three this is the kind of momentum that could argue for stocks as these levels, right? >> i think, too, it have you to remember it's about the fed and the ecb and what you have pumping into the system.

deflationary forces have been replaced by inflationary forces, and that has everything to do with the explosion of the balance sheet in the ecb same thing happened here in the u.s. i think that's helping a lot with respect to asset prices i think that it's been a resilient market, that's for sure. >> by the way, alphabet is the already out. numbers are starting to cross here let's get straight over to our josh lipton who has the full report joshua >> kelly, alphabet reporting eps of 501 verse expectations of 49. revenue $26 billion versus expectations of 25.65 billion. google properties revenue, 18.4 billion. google tazzing revenues, 22.67 billion. other revenue i'm looking for as well, other revenue that includes the cloud, 3.1 billion, and in other bets revenue, 248 million and other bets operating loss, 772 million and finally

paid clicks, kelly, up 52% and costs per click, it looks like down 23% kelly, back to you. >> wow, all right. >> thank you, josh. >> so the paid clicks guys up 52%. that's compared with a 35% estimate the cost per click was down 23% compared with a 15% declined estimate the other revenues he mentioned dlus the cloud roughly where the stream is looking, 1.3 billion what's interesting, and i don't know if they break it out and when microsoft reported last week they said, oh, by the way, we'll tell you our cloud number because it doubled the revenue from last year so certainly setting a high bar. >> and i do think people want whatever detail is going to be available out of alphabet on this i think alphabeters on the side of not telling you more. they kind of like to have everything reported in one big bulky block, and i do think it looks like a clear beat on the main metrix. i will say that the stock went from 991 to 1,005 in two hours from 1:30 to 3:50 today. >> wow. >> backed off right into the

close, but it seems as if people were getting up a head of steam for a positive number. that explains why the stock is a little dissonant right now. >> down half a percent right now. when it comes to other baits including waymo and some of the other things they are working on, $245 million revenue is a little bit shy let's call it roughly in line with what we have for the straight estimate but the loss better than what others were looking for, only 772 million. kevin, what do you think >> i think it's pretty good numbers, no question about it. it doesn't change anybody's investment thesis about alphabet or google, whatever you want to call it. if you're long, you'll stay long here's the real question for investors putting new money to work s&p is up 11.7% as of a few minutes ago year to date 31% of those gains have come from the f.a.n.g. stocks of which, of course, google is a major part for the rest of the year, have you to believe such a concentrated set of horsemen are going to keep driving you

forward, or is it time to start diversifying i'm going in the diversification camp i'm trimming those names into good news. i'm not divesting. i'm just pulling them back. >> google shares are down about 2% we'll actually get more from cfo route porat shortly. down 2%. michael alluded to it, but what's of most interest here is whether it upsets the whole apple cart of the trade and the more incredible gains that we've seen this year in the last couple of years. >> these numbers won't do that i think it's more about that trade being spent as a matter of investor preference, not really so much what the companies are going to tell us you know, the numbers sound like it's a very concentrated market that kevin repeated, but it's not as if all other stocks are down or the majority of stocks are not up it'sbecause they are so big that, yes, they are worth a couple of percent of year-to-date gains for the s&p 500. >> i remember we had someone -- steve grasso say, look, you

won't see a lot of rotation into energy unless people are pushed out of tech. i don't know if that's true and whether they want to harvest gains and look for opportunities, but maybe this isn't the kind of report that pushes you into energy. >> it may not. i think that the smart money actually is trimming like kevin had said i think it's a smart thing to do whenever you can take profits and it makes sense you take profits off the table and get into something that looks had a little better here however, these stocks have really pushed up the indices in general. i think that's why we've seen such large gains, and it's going to be tough to see if people take a lot of money off the table until we see some major pullback, kelly. >> where -- by the way, the shares are down 2.5% now. >> right. >> where would you guys say right now is the compelling place to be if it's -- is it in google for you, or is it elsewhere? >> we own some google. we own some facebook we own some apple. we have trimmed those positions

down except for apple. you basically have to own the names over the long haul it's just the point if you're not in them yet, you may want to see if they pull back a little of course, nobody has a crystal ball to know when that's going to happen but it's a matter of just using common sense. these stocks are on a huge run and at some point they will pull back. >> only takes a couple of minutes apparently because we've gone from a half percent decline to 2% and now we're down in the range of 3%. >> and up 25% year to date, so, you know, this is one of the things where you'll be able to find a reap to trade it either way. i don't know that people are focusing on, you know, costs per click is one of the things that's always going down it's a matter of how much and where. on google's own sites, it was down a little bit more perhaps than anticipated i would like to hear exactly what people are quibbling about with numbers, but to me it's all about a big megacap stock and very widely owned and dearly loved by the street that's now having to sort of earn its way. >> you're seeing the jitters about the whole trade play out

across facebook, amazon we can check on after hours and we get big reports from them as well. there's amazon down nearly half a percent. >> also been big beneficiaries that the dollar is down and tech is the most internationally exposed sector in terms of foreign revenue and earnings it's all been working for this group right now. >> by the way, this earnings beat that they had was still, at rich peterson is pointing out, one of the biggest in six years, but it's moving around a little bit because of this eu find. it's lumpy and the earnings figures are down from last year. >> i think it's interesting. one of the things that i read that the eu fine of $2.7 billion is a non-event $2.7 billion is a non-event, you're doing things right. >> yes do you think though there's going to be more regulatory concern to come? i mean, we've talked a lot about it with amazon lately, but i -- i wondered to some extent whether the whole rename of alphabet was partly to de-emphasize google, when you google facebook they have a due on by of the ad market.

>> no we don't, look over there. any time you see a industry move up dramatically, you see the regulators all over it so we'll see more fines to come for sure. >> kevin whrk we look for opportunities here, you know, we have some of the other companies coming up this week. i don't know, after netflix, that popped 10%, i'm not even sure other than kind of wanting to be part of the platform growth companies of the future how much google's report has to bear on amazon, for example or facebook what do you think? >> i -- i actually think these names are a core part of the economy and they stretch at every sector the problem is if you keep them weighted in a portfolio, and any investor has to make this decision about how much volatility they can tolerate because some of these, netflix, for example, traded extreme valuations that tend to be very volatile you look at the drawdowns in the stock over the year and same with amazon. many cases where you lose 30%, 38% of the value and if you're

willing to stomach, that i am finding now that we're at the stretch side of the 19 pe that i would like to sake some off the table as i am doing with the googles of the world and all f.a.n.g.s. kept ale at a 5% weighting and kept the dollars off the table and put them back into the russell 2000 indexes and moving over to europe and asia where we're still getting better performance. we're up 14% in asia and europe on the international side. >> yeah. >> and the pes are 20% less. it's about taking some off the table to reduce the back end of the year's volatility. we've all made so much money on the f.a.n.g.s, what's wrong with diversification? >> that's the second time in two days people talking about how much money they have in the market hang on a second because we're talking about valuation. let me mention this to you guys. from baron's over the weekend they said if you bought facebook in 2013 when it had 150 price earnings multiple and held it, you would have paid less than

five times trailing earnings as of june 30th. >> yeah. well, that's one of those amazing exceptions to the rule based on a hypergrowth company what i find interesting about alphabet in particular it's been rebuilding its pe premium in the last few years, so it's now something like a 28 times forward multiple the last time it hit 28, it was on its way down seven or eight years ago or something like that interesting what's happening megacap mature companies they won't be doubling earnings next year. >> and on a five-year base and google has tripled so we're talking about big stock moves to catch up that. >> there's so many names that have done it and these have done it on stage loud and clear and you've had to own these names to make sure you're part of it. >> real quickly while we have everybody here because we'll come back to this in a moment. any movement on the health care front. we'll have votes tomorrow and you mentioned the fed off the top of the bat here, but we had stock-specific stories,

halliburton shares were down even though they had a beat and hasbro, of course, was weak and we talked already about hibbett sports and what it did across the retailers. >> one observation i would make and i talked about it last week is there is a pretty harsh response to earnings that basically have any hair on them at all, and i just think it's more a matter that the field position of the market right now. it doesn't mean that overall earnings won't be supportive or that ultimately in two weeks we won't say hey, that's a pretty good earnings season the market looks fine here but on an individual basis it's a little more of a quicker trigger on the sell versus the buy side. >> we've been saying we're post-peak for so many quarters that i think that that's been driving it, too, so from the perspective of an investor to see earnings continue to get us excited, despite the fact that this bull market has been hated for as long as it's been a bull market is the reason why people continue to be in the market and we continue to see this help.

>> i want your comment that 8 out of the 12 of the underwriters of blue apron initiated the day with a buy. >> thank goodness. i like this sector because i have to disclose i'm an owner of plated in new york but sector is huge these guys are public. i've repeated multiple times even about the decline which has been brutal. they have an infinite pe stock now. they are public. they are pure play in this delivery program if they want to consolidate, they have the power to do it now, and i think the sector which was hated last week is finally getting the review of multiple analysts that are starting to say these will be survivors one way or another even if they are competing with amazon the only reason amazon is in this sector it's so big. i'm actively involved in promoting this sector because i'm a believer in it. >> so you -- you -- i'm -- i'm speechless i really thought you were going to roll your eyes, you know, with the rest of us and say this is ridiculous, and instead you're -- because they have had the currency now the sector is proliferating

faster than they can even snap it up. >> the point is there's amazon and there's everybody else i'm not saying the company is going to do it they are very -- these are good management teams, both plated and blue apron compete against each other tooth-and-nail and have logisted centers all across the country including chicago. the point is one of them has to actually say to the other make peace and say we're competing with a behemoth. what do you want to do, and i believe that someone, one of these, and probably it's got to be blue apron because they have got the currency, let's consolidate and fight the fight as a pure play if i'm an investor i was exposure as a pure play in this space. i love to support entrepreneurs, but is the valuation craze yes, so go use it. you have an infinite pe stock. >> i'm going to come up a simpler explanation which is these are analysts that -- firms that underwrote a deal at $10 a few weeks ago and the stock trades below 7. >> of course it's high

you just sold it at 10 to your clients. >> we just did that job and kevin even said it he's an investor in the space. of course he's going cheerlead for it that makes the most sense in the world but you have amazon coming into the space let's see what happens. >> what people said about retail needs to be consolidated kevin, dani, thanks so much. the qqqs are weaker after the google results weighing on the whole sector more about alphabet's earnings in a second, down a quarter percent on the power shares. we're also going to debate google and whether the stock is a buy now after its latest earnings report. we'll see if the conference call can turn things around next. still ahead, boeing projecting the aviation industry will need more than 1 million new employees in the neck decade but the employment forecast is not as rosy. all that have ahead hand we want to hear from you reach out to the show on twitter, facebook or send us your thoughts. you're watching cnbc, first in business worldwide you always pay

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oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. welcome back we're waiting on comments from alphabet cfo ruth porat after the company's latest earnings report those coming up. alphabet shares are under some pressure after these results can can the conference call turn things around? we're going to ask a member of

morningstar and ed lee from recode and james wong ark invest welcome to all of us james, you're here, i'm sorry, so we'll begin with you. what do you think the stocks selling off at the quarter what jumps out to you? >> results look pretty good. it's a beat there and on the bottom line it's pretty clean. i think, you know, at times like this, i heard the earlier commentators say they are cautious about their positioning. it's important to kind of remind people, portfolio managers or analysts, why they only stock in the first place. google is a company that's had a long evolution since its ipo in '04. first a search company and then it became a mobile and cloud company and actually something that's not well understood or perhaps not well believed is that the company is going through a third evolution which is becoming an ai company. we think google -- >> i think of it as an advertising country and maybe those overly simplistic or beside the point. >> that's completely fair, or most of the revenue comes from advertising and it's interesting that they have actually

meaningfully advertised from the revenue base google is now something like 87% advertising. >> yeah, i mean, if you're looking at the ad figures basically, you look at global digital ad market they own about a third which is insane. facebook is like a distance second at like half that and there's, you know, more room for them to grow it obviously drives everything for them and i grew with james and it's diversifying and you don't really know how the ad market is shaping up going forward with other entrants coming in. i'm going to -- i'm curious to hear more about google cloud and that might be growth air and some of these other bets outside of google within the alphabet group and barely which is the life sciences startup which appears to be profitable, and it's one of the sort of new ventures that are actually gaining some dollars and we need more color and information and it really is just an ad company which is fine which is what they dominate there's a lot of challenges going forward. >> that's how you get paid, not

necessarily what you do. i'm wondering about it so hard to talk about this company except in the broadest possible ways. they are standing in the middle of all the trends. to what degree is becoming an ai company, really defense to make sure because tech space search is not necessarily going to be the way things grow down the road. >> i think it's defense. you know, you can hear defensiveness in the tone of management and this is a management that's out for blood. google started out as a first pure play and they i'm yoed on the back of one algorithm and now they are basically in our view and we put out a note on this earlier it's on our twitter feed i think they are the first meaningful company in ai that's fully integrated call it a fall stuck ai company and what does that mean? they have their own data they are used to go train their own algorithms which they are running on their own processors and then it's deployed on their own cloud.

other companies have one or two slice of the pie and they have integrated across the secretary. >> ali, you think the quarter is 910. what are you looking for on the quarter and what do you make about the call >> everything looked good. a couple of things that stood out. one is the tax traffic acquisition costs were actually a little bit higher as a percentage of revenue so that put some pressure on gross margins a little bit it the also could indicate that they are having -- they are putting additional efforts and basically generating traffic to, of course, monetize the ad space that they have, but the other parts, i mean, the other revenues, of course, that shows the numbers were pretty good it shows that they are making headway on the cloud front, and we actually think -- we actually just published a downash industry note on cloud, and we actually think that these guys are going to become basically the number three player out there behind, of course, amazon

and microsoft. but overall, you know, it is -- i completely agree it is a very strong company. it is the behemoth of the digital ad space there's no question about it, but from a valuations standpoint we think it's pretty much fairly valued right now. >> the other factor to look at in terms of if you really want to drill down, amp costs per click. the amount of money getting paid went down on a quarter over quarter year over year basis >> more than people thought. >> and that might explain why the stock might be dipping down. they still dominate but i don't think it's a big issue going back to the ai comment, i totally agree. it's such an abstract thing and the reason why google and facebook, amazon, the major silicon valley firms are going after this is ai is really how computing will be sort of the operating system for all kinds of computing across the globe going forward. you need to own that now it still hasn't manifest in all the ways it might manifest and that's why it's an abstract thing. >> preferably to the alternative of resting on their laurels and

clerking the ad money. gentlemen, have to go. thank you though we mentioned the share is down about 3% we'll have more shortly. blackrock is looking in its rear view mirror because it's losing ground as world's largest asset manager. which company has blackrock on run in today's fast take and today "star wars" and "spider-man" are in and the easy bake oven and supersoakers are out according to hasboro and the reliance on movie tie-ins could spell trouble for toy town there's more on that on "mad money" tonight and we'll have a preview of that coming up. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to,

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get ready, because we're helping leading companies see it- and see it through-with digital. welcome back we take a brief break from google for fast take beginning with vanguard closing in on blackrock as the world's biggest asset manager. the giant is pulling in $1 billion a day and still managing $4.4 trillion so it could be five years before it overtakes blackrock. >> yeah. would you have to really accelerate this trend to have it overtake blackrock in a shorter amount of time blackrock's aom is still growing, more slowly and if there's one thing i look at blackrock's mix, two-thirds of their assets are passive, and it's not as if they are out of this game. >> they are not that different. >> they are almost both riding the same trends, and if we all believe that it's not so much active or passive, versus high

cost versus low cost. >> i would mention it before. >> yeah. >> look at what they actually learned on a year on a $5.7 trillion asset piece. >> 21 basis points .21% of all the assets. >> need scale to keep the lights hon. speaking of rivalries, i love the one between walmart and amazon and we briefly mentioned amazon's plug power deal last week and they are following in the steps of amazon which did the same exact deal six months ago. in fact, they both got warrants from the deal that could leave them joint investors in this forklift customer. >> sort of reads as these companies are making sure that this supplier stays in business and is there for them when they need them and also to play the future of this particular type of fuel now. >> it's a sophisticated forklift company now. >> yes. >> trading for 12 cents a couple years ago and at $2.37 which is a huge increase, but, again, it's because they haven't had a profitable year since 1997. >> this stock has swung wildly

for years. always been one of the kind of story stocks that catch's people's fancy and you get an announcement like that it will run it. >> i'm curious if they will end up being all joint ventures in this. >> or a consortium. >> exactly draw your attention to samsung which de-throned intel in revenue and now they have introduced a lower cost version of j&j's remicaid and the headline was samsung is in the drug business? >> completely. everyone knows it's a conglomerate like in home appliances and maybe other industrial products and things like that, but this is a new one, and some pretty decent success. what i actually found this morning i was looking saying why is j&j stock down 7% or something like that. literally seems as if people are worried about price pressure a little bit of a foothold that can't make up for a lot else. >> not many companies would be doing chips and biotech drugs. samsung is one of them, shares

up 67% and the insane inflation of college tuition is easing if you call a 2% increase last year easing because we're talking about a fivefold increase in the cost of tuition since 19990 and trees can't grow to the sky. >> no, they captain and the ingredients for 96% annualized increase before aren't there you had a lot of 18-year-olds, fewer of them now going into college and had a big kind of supply/demand situation. more schools, a lot more college financing. >> right. >> all those things are kind of pushing up costs less. plus, you have some schools that are just trying to compete >> what does it mean for the santoli kids >> too early to say. i think we might actually have another demographic. >> not going to benefit from further deflation. >> i do think we -- the moderating rate of inflation potentially. >> i'm trying to help you out here, trying to lower the cost of college. >> i'm not going to get my hopes up, but what's interesting is a lot of people will point out that the value premium to a

college degree has gone way up, a lot of rational economic stuff going on driving this. >> let's get back to josh lipton who spoke with alphabet cfo ruth porat about the company's results. >> i did have a chance to speak with route porat and began by asking her about the fine from the eu, $1.7 billion wasn't the fine itself that necessarily worried the street or investors but rather the knock-on effects of that how exactly the company is going to address that challenge. ruth porat not saying much right now saying the main thing is it's still early in our analysis she told me hand noted that that was an ongoing legal matter. obviously for investors what's to stop regulators from taking similar tough action against other google products in the quarters ahead we also did talk about capital expenditures specifically as it related to the so-called other bets she saw other bets revenue, 248 billion on operating loss of 772 million. she told me the cap "x" data

reflects the pause and expansion in fiber, gao google fine their we discussed, and made it clear on the call that she remains committed to the other bets, everything from self-driving cars to nest and porat mentioned a few times the strength of youtube and i asked her when she will break out youtube that's been a force in online video consumption for more than ten years. only saying we always think of ways to enhance disclosure but didn't give any indication that such a breakout that have division was coming any time soon kelly, back to you. >> josh, thank you michael, the shares still down >> they were, back to where they were a week ago, 975 is where they closed, a little under that, where they closed a week ago today. not a disaster, but i do like that comment though. we always look at better ways to disclose, but seemingly always err on the side of disclosing for a little bit less. >> you couldn't always make people happy that way. >> their arguments go both ways.

>> as long as you can get by without giving more information. >> i understand. >> time now for a cnbc news update let's get over to sue herera. pakistani police releasing footage of the moment a suicide bomber detonated explosives that killed at least 25 people in lahore the video was from a security camera across the street from the the explosion site the suicide attacker riding a motorcycle targeting police at an open air market charges have been dropped against a former university of cincinnati officer who shot and killed an unarmed black man during a traffic stop in 2015. ray tensing was tried twice on charges of murder but both charges ended with hung juries french president emmanuel macron meeting with pop singer bono the two met for an hour and discussed poverty on bono's

charity group called one. >> it wasn't really amazing. it was more of a conversation actually i haven't had many conversations quite like that, and -- and the president is very open to finding new innovative ways to solve the problems affecting the world's poor. >> and you're up to date mike, kelly, back downtown to you. >> thank you, sue. >> you got it. back in the spotlight is fannie mae and freddie mac they are the focus of a lawsuit raising questions over the mortgage giant's profits, and it comes as freddie is apparently about to enter a new market. up new housing experts look at the latest foray by fannie and freddie. stay with us you always pay

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welcome back some mixed headlines on wall street today, the dow dropping 66 point on the bell a third of a percent decline s&p down 2.5 points and the russell up it.5 and the nasdaq had a new record close of 6410, first close above 6400 alphabet which was trading hour in the session today was weaker at last check after reporting its earnings results still down about 2%, down 3% at the lows we just heard from the company's cfo, and we'll continue to keep an eye out for the call and commentary as we get it. boeing demanding more demand for maintenance technicians and pilots over the next ten years a different story for boeing factory workers as the company cut more than 6,000 employees, 4% of its workforce at its manufacturing plants in the first half of the year the company cites its focus on automation and on cost-cutting for the reduction. our phil lebeau is here. phil, maybe they should have everybody retrained as a poilt how many hours do you need, a

couple years, flight simulator >> reporter: it's lengthy depending on the model that you're going to be flying. look, i'm not surprised to hear about that nor see this. we've reported on this at great length over the last couple of years. what you're seeing at boeing with its manufacturing plants and facilities is areduction i the workforce as it becomes much more efficient that's the key to driving profitability, greater efficiency and similar to what we've seen with other industries i've seen it firsthand and still see it firsthand with the auto industry in the world of manufacturing, fewer and fewer workers are actually needed when it comes to assembling products, and that's -- that's just a fact of manufacturing. that's not new to boeing or to the auto industry. we're seeing it all around >> yeah. phil, it's interesting because as we talk about the growing need for flight crew down the road as boeing estimates. >> right. >> right now it kind of mirrors what's happening with the economy. that's a service business. you don't have the same economies of scale

you need more bodies as opposed to manufacturing. >> you need the people who are actually going to operate the product, and in this case the product is the airplane, and the global fleet continues to grow, and it's not going to be slowing down, especially when you look at the growth that's happening in asia and in particular in china. that's why there's such a huge need for pilots and technicians, the maintenance people as well as flight crews. pilots in particular will get a lot of attention especially becausewe're seeing a lot of older pirates who they are grandfathering out of the industry, not only here in the united states but around the world. that's where you're going to seat biggest need, full. and you know who is going to pay for that, guys your smallest carriers and i'm talking about the regional carriers in the only in the u.s. but around the world i've been to a few of these or i've talked with people at a few of these companies and they are struggling, really struggling to find pilots who can be trained quick enough to fly some of the smallest planes. it's not a problem for the

united and deltas. they will always be able to find those pilots. >> puts a squeeze on them. recruits more people and it will take a couple of years to resolve and see if investors continue to favor it our phil le there. freddie mac is focusing on mid-sized landlords after fannie mae made a similar move earlier this year. these investment homes are making criticisms about whether fannie and freddie should be in the housing market welcome to you both. dick, the reason they have sparked so much reactionsy thought the idea of fannie and freddee was to support the goal of homeownership and it seems like a departure from those to be backing rentals. >> it was the goal of the markets and in 2010 the obama white house put out a white

paper signed by the treasury department and the housing and urban development department, and the basic premise was that every american should have a decent place to live, but it doesn't have to be a single-family home, and in every-quarter since 2010, you know, both fannie and freddie have increased the share of rental properties that they have -- that they have assisted related to -- relative to single-family homes, so it may seem like a new announcement today, but it's not. it's a 7-year-old announcement. >> josh, let me ask you. it's interesting because of the whole idea is to make homeownership relatively more affordable for people than renting let's say. what happens if they are backing both markets might they as we will not back any markets? >> well, so not only does it end up changing the -- the rental price index ultimately, but, in fact, what you're doing is you're really pulling future income from future homeowners and transferring it to landlords. it's quite the opposite of what

your intent should be if you want to support the homeownership market. >> how exactly does it is? >> fannie and freddie were chartered originally to support homeownership. >> right. >> and so the goal is to be able to get more people who qualify and want to be homeowners into homes. >> yes. >> well, that ultimately also can take to down payment savings, that's the goal, so if you've got people trapped in homes and the enterprise involved are now starting to compete in the rental market, to your point, ultimately you're going to be driving up prices and you're going to have more money going to rent that could be built up towards down payments. >> dick, what would your argument be here for, you know, we haven't really resolved the fannie and freddie issue they exist for a reason and enough of the population feel they are critically important to the mortgage market. does that need to be figured out first or the fact they are involved in both markets make it easier to say yes or no to their

existence? >> no, i think what they are doing is anti homeowner and the whole concept of what we've lived with since 1936 that homeownership is important to stabilizing neighborhoods and the growth of the economy, but think far more important than this issue is the fact that the discovery documents which are now being put out related to the fannie/freddie lawsuits are showing that the united states government lied, lied to the american public and used that lie to take away the property of the american -- >> let's not relitigate. >> bring it to bear whether they should be involved in the market. >> this is obamacare times, spent time this summer on o.j. hearings and chasing russia stories and the reality is we have documents that came out today of the single largest financial crime in america's history, and it was perpetrated by the same officials --

>> can you separate that which is a huge -- and we've talked about that quite a bit but just for the purpose of deciding whether these entities should support the rental market. >> toe to bring it back to the rental. >> the rent is too high. we've seen wall street involvement in the rental market and the "journal" had a story, raising rent 10% in some of these communities. if there's populist outrage about it and there's an answer that says we're going to make this cheaper does it make it politically viable >> so if you want the government more and more involved in the gse's activities. >> which some people probably do. >> then you would argue keep them as they are with the government control regardless of the lies and the fraud. >> right. >> but the reality is if you want housing markets, rental and owner markets to operate, market-based to operate overtime you really need to get them out from under government control. >> dick, what would you add to that do you want fannie mae and freddie mac to use government

guaranties so that blackrock can go out and rent tens of thousands of houses? >> exactly. >> or do you want fannie and freddie to go out and assist individual homeowners in their attempt to buy houses, and what we're asking these two companies to do at this point is to put blackrock and forget the individual homeowner but you're really not touching on the most important issue. >> last word. >> this is the largest financial crime in the history of the united states. the american government has stolen from the shareholders of these two companies their shares it has stolen what is now getting over $200 billion. this is not something that should be glossed over in favor of whether it's better to rent or own a house this is a major crime. >> listen, i know. fannie and freddie is an explosive issue as we're well aware. gentlemen, dick bove and josh rosner, we thank you for joining us today to talk about the latest fray. >> thank you.

>> apple pay and other products to allow consumers to pay with their phones and companies offering to plimant microchips in their hands so they can scan to pay for things. we'll hear from ceo of that company when we come back.

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welcome back one wisconsin-based tech firm is giving its employees the option to have a microchip installed in their hand three square market which provides technology for break room markets or kiosks is expecting voluntarily chipped. you're looking at the chip there, the size of a piece of rice once it's installed, employees will be able to make purchases in the office, log into computers or opened locked doors. joining us by skype is the ceo thank you for joining us welcome. >> hi, yes, thank you for having me. >> is this a brilliant marketing ploy for your company, todd? >> well, it does have marketing that comes with, however, we're very serious about this technolo technology we think it's the right thing to do for advancing innovation. just like the driverless car basically did in recent months >> okay. so i'm holding here a grain of rice as i understand it, this will be implanted between my forefinger

and my thumb and i'm able to just scan that to use vending machines and access technology and things like that is that right? >> correct the chip is actually implanted between your thumb and forefinger, and it goes in with a needle which doesn't have any blood or anything, it barely hurts at all and you'll be able to use it as an rfid chip for anything that deals with proximity readers >> do you have one of these chips, todd? >> i will as of tuesday. along with my whole family also. >> is this legal by the way >> yes, it is, and it's also fda approved in 2004, the fda approved this device however, it's taken 13 years to basically get to this point. >> how do you get it removed once it's in >> it actually goes in with a needle, and then you push it out almost the same hole that it went in. it's basically like a sliver

being injected in your hand. and then you push it out from the back end of it it will come out exactly like a sliver would. >> oh, michael, are you interested in thisnology >> i mean, depending exactly how much easier it would make my life, todd todd, i do wonder, you said it only really becomes active or gets read if you're in sort of near field rfid zone for specific purposes. is that right? could you just be walking around in the world and incidentally be tracked or something like that >> no, you cannot. unlike your cell phone that is trackable and traceable pretty much no matter where you are, this device is only readable if you're within six inches of a proximity reader it's basically a passive device so it doesn't emit any signals on its own it has to be read by an rfid reader that has an application written for it to interpret it >> todd, did you guys invent this

are you the first to use this that you're aware of >> we're the first to use this in the united states biohack in sweden is our partner company and they have 150 employees at an epicenter there which is like an incubator in the u.s. using this chip with our markets in that building and they use it as a form of pavement on the kiosks there along with entering doors, logging in computers >> how much does it cost the company per head to do this? >> it's $300 per implant >> and is that worth it to you versus -- look, i have one of those old-fashioned credit card looking badges i don't think that costs much. >> well, as many times as you've forgotten your badge, or needed to get somewhere and you haven't been able to or your credit card has been compromised and you have to wait for a new one to come in the mail, as in our case at work here, monthly, we spend hundreds of thousands of dollars with our employees and their

credit cards every single month a credit card is compromised here and now with this chip, it will basically eliminate all of that. >> but can't my little grain of rice get hacked as well if it's a piece of digital technology? >> no, it cannot it's all encrypted it's 100% encrypted just like credit card reading devices are. >> well, we know how well those work you don't think someone's going to say, you know, come on, they could knock down those firewalls and -- are they going to make my hand move for me what's going to happen here? the >> no, this has 256 bit encryption on it the chances of it being hacked into are literally nil to none it is a very secure and safe device. >> the weirdest thing about this, todd, i almost feel like i would do it. i almost think -- because i have lost my card so many times i can never get it out of my wallet, you know, and then you got to use the credit card for some then the badge cards for

others. >> you could do the star trek sign and buy things at the ve vendiven vending machine. >> well -- >> todd, thanks for joining us let us know how it goes once you guys get started. >> next tuesday, if you'd like to be chipped with us, let us know we're having a chips and salsa party. >> chips and salsa, oh, my gosh, you are calling my bluff not a bad marketing play either. todd westby, thank you for joining us. >> yep, thank you very much. >> he's the ceo of three square market. shares of hasbro falling more than 9% today a key metric that could reveal weakness in the toy sector the company's ceo weighs in on that with jim cramer next. coming up on "fast money" onof wl e alstreet's most closely followed analysts say this is what he wants toalphabe call stay with us experience amazing at your lexus dealer.

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welcome back shares of hasbro sinking almost 10% despite a beat on top and bottom lines because the toy maker said quarterly sales in its emerges brands which includes supersoakers, easy bake ovens, fell 14%. jim cramer just sat down with the ceo, brian goldner, to explain why he still sees strength ahead despite the declines take a listen. >> second quarter for us is a smaller quarter. the third and fourth quarters represent a much bigger proportion of our total business and we expect still a very strong year. we've told people that we expect great growth we saw great growth today in franchise brands up 21%. partner brands up a bit. our gaming business is really accelerating and we're very excited about what's going on in our business. >> you can catch the full interview that jim did with hasbro ceo brian goldner, tonight "mad money" starting at

6:00 p.m. >> a dramatic move but undid two months' worths of the gains. the stock had gone vertical. i think it also shows investors are skittish when it comes to traditional toy business, just looking for that sign that there's an inflection point, the traditional toys are no longer going to sell. >> yeah. >> they're pretty much consumed with that idea. >> hasbro up 35% year to date. can we go back to the rice for a second michael said something very grisly this is the idea -- >> what's to stop somebody from chapping your hand off that's, they have all your information. >> this is how you think >> i've seen movie plots. >> it doesn't have to be a live entity because you just need the chip >> right >> this is extremely disturbing. >> or they could just drag you around and just -- >> okay. this is great. we'll see how this all plays out for the future of our society. >> i'll be done with it in a couple weeks. >> i'm considering the convenience of being able to more quickly sift through my handbag. >> exactly it will be worth it.

that moment. >> clearly not anyhow, alphabet, anything you're listening for on the call >> you know, again, more gr granular detail on the cloud side of things jim cramer earlier said he'd like to talk about longer-term growth as opposed to operational stuff, getting margins up and the cost cutting maybe something like that. >> you said granular like grains of rice. >> look at you, paying attention. >> that does it for "closing bell." "fast money" starts now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. brian kelly, karen finerman, guy adami. tonight on "fast," the dollar sinking to its lowest level in more than a year the chart masters calling for a big rebound. what it means for the market. plus a slew of wall street analysts, seven, in fact, coming out with rave reviews for blue apron's stock. will the bulls turn the tide for the troubled ipo check out shares of alphabet sinking after hours now down 3%.