you might have read nor a "new yorker" article that interviewed a certain communications director. >> someone gets close. >> right. >> wonderful. >> all right thanks for watching "power lunch," everybody. have a good weekend. >> "closing bell" starts right now. >> have a nice vacation next week. >> thank you hi, everybody. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> been a while since we've -- >> stood over here. >> done that sonny and cher thing. >> i'm bill griffeth dow fighting back from earlier declines trying to close higher for a fourth straight session. this would be a record high if it does. any close would be a record are to the dow the s&p is lower though. so is the nasdaq, by the way. >> yeah. we've been watching that one the last couple of sessions going back to yesterday afternoon. then you had amazon off the lows of the day after reporting disappointing earnings the company across the tech sector which has had a huge run so far this year coming up we'll debate whether

the tech rally still has room to run. >> thank you. >> see how that works. >> intel's chief financial officer bob wan is back with us, talk about the chip anchors better than the expected earnings and concerns at rival amd could be taking a bite out of its business. they had to defend themselves on the intel conference call. some of the analysts asking about that tremendous competition from amd these days. >> yeah. we'll ask him about that so let's begin with amazon still weighing on the tech sector. bertha coombs has more. >> reporter: following that earnings misamazon seeing its worst day since early june selling off on pretty strong volume and that's providing the biggest point drag on the nasdaq 100 but amazon is coming off an all-time high just yesterday and shares are still up fractionally for the week and in fact up 6% with one more trading day left here in the month of july. the impact on big-cap tech is somewhat muted the major tech indices are down fractionally and treating volume

actually isn't reflecting any real selling concern today for the month, the nasdaq 100 is actually up. it's providing nearly a quarter of nasdaq 100 gains for july also, bucking the trend today, we've got baidu up on an upgrade. >> all right thank you.

>> it's the time to get in or out of the tech sector let bring in tom forte who still likes it and ruin who is a little more bearish. tom, make the case here for the incredible run in tech for the last couple of days aside, continuing in the back half of the year and beyond. >> sure. there's a lot of reasons to still be bullish in the technology sector. the primary one is disruption, so if you look at the legacy retail space, amazon is letting disruption there and with advancements in machine learning and artificial intelligence the gap between legacy retailers and technology-enabled ones will broaden. look what they are doing with alexa which is driving adoption for the consumer internet of things today it's the connected home, and in the future it will be connected cars, a lot more, and then lastly if you look at apple and the possibility for greater augmented reality in the iphone 8, that could change how consumers shop for example, could you go to a physical furniture store and see

a wide spectrum of inventory leveraging, augmented reality, so i think disruption is the primary reason to remain bullish on tech stocks right now. >> ryan, you're our bear, and i'm going to guess it has something to do with valuations, yes? >> valuations are definitely part of it the nasdaq is hundred trades at 24 times future earnings versus foreign stocks, emerging markets 12 times future earnings which i think is a better deal in general, but they get more of a bubble being formed because now you have billions of dollars going into etfs which are capitalization weighted and a lot of them going to growth etfs, amazons, microsoft, alphabets, all getting more overweighted and the money managers who underperform rather are being forced to buy those stocks as well you know, further pushing those stocks up and concentrating portfolios and only a couple. >> okay. so what kind of damage could that do? what do you expect to happen when this bubble that you see

building bursts? >> well, like anything else. too many eggs in one basket and that's the riff here when that goes out of favor, you know, when, not if, you're going to be left holding had the bag because you don't have enough diversification in your portfolio, so that's my biggest concern owning growth big-tech stocks right now. >> tom, what's your response to that >> my response is there's a reason why valuation is the way it is. you have a lot of open-ended growth stories, amazon, facebook and even netflix recently, and to the extent that they are showing multiple legs to pull future growth. if you look at amazon, it's increasing their grocery sales with the addition of whole foods, and then increasing their sales in the apparel sector and then for facebook they are doing a tremendous job leveraging and driving further revenue in mobile advertising across multiple platt formz so it's an open-ended growth story with multiple technology companies that are showcasing that which means strong valuations and more

future upside for a lot of these stocks. >> you don't hear a little voice at some point whispering to you the case brian is making about valuations here. i mean, you can't go up forever. >> if you want to play devil's advocate on valuation i covered the internet space in the late '90s and 2,000s and a number of stocks get well ahead of themselves, but if you look at the case of amazon per se, you can see how they would get to, you know, perceived future growth and ultimate margin expansion. the largest growth vehicle right now is the cloud computing efforts, and that's also the highest margin unit, so i think, yes, can you point to valuation, but an argument could be made that in case of amazon they could be having continued strong revenue growth and potential margin expansion, especially from the cloud computing effort. >> brian, by the way, it's not as if technology is doing all that poorly today. i mean, the nasdaq is fractionally lower, a lot of these are holding their strides

so it doesn't look like the momentum there is really turning yet, does it >> yeah, and i don't think it is, but if i'm an investor, the last five years were so hot in tech, will they repeat that the next five years? odds are probably not. there's just so much other great value in the market right now, that you know, i just think that tech is not going to be the best place to be when you're looking back retrospectively five years from now. >> do you like anything in technology i mean, you're throwing the whole thing how the? >> you know, i think can you have a component of that have in your portfolio, but, again, if i'm a betting man and i'm looking back, you know, at my portfolio a couple years from now, that's just not where the value, is and you're further along in innings in technology versus, again, global markets and other sectors that have a lot more value here and are just starting to move that's where i would want to be putting my money for the longer-term growth. >> all right guys, thank you very much. >> to close out the week tom forte and ryan payne. >> with the dow up 20 point, oil

has been strong today, the dollar lower, technology lower, let's get -- and the transports have come back a little bit today. in our "closing bell" exchange jeremy hill from old black heath companies is at post nine and so is steve grasso and rick santelli checks in from the cme, and, steve, i mean, oil has -- has one of its -- i think it's its best week of the year with the gains here and we're just that close to $50 a barrel for wti. and it's not kraumping the style of the stock market overall. >> true, and the only problem with $50 a barrel oil is so much production comes online at 50, bill that's what usually stops oil from moving higher is that $50 mark, but i think that conversation you had prior to us cramping on really dovetails nicely with the overall market you need to see money coming out of tech and into energy in order to see the rotation the back half of the year the market can stay right here or the market can bust through old highs, but you sort of need

energy to start lifting a little bit of the weight that the market has been carrying all with those, you know, four or five names in tech you need to see other leadership we've had health care and also the financials if energy kicks in and starts doing some lifting, you can see above 2,500 easily in the s&p. >> jeremy, where do you guys think that there's the most opportunity right now? >> well, actually we very much like investment grade bonds and, you know, high quality credit assets in this environment i think are going to perform quite well, but if you're just a stock investor, i mean, it's hard not to chase growth opportunities right now. >> especially, jeremy, when your favorite opportunity seems to be yielding not very much, you know the yields have fallen so low, what's the attraction for investment grade corporate bonds? >> well, investment grade corporate bonds, remember, don't have the same type of correlation and spread compression and this type of an environment, and -- and i

would -- i would characterize where we are in economics as being weird. i mean, the tailor rule doesn't apply, nehru is out there hand what are we doing in productivity and when we're looking at assets that promise a steady return, something like a high quality investment grade bond, it's something, you know, that we think you have to consider, but that's -- that has to be only part of your portfolio, and, again, to chase assets that are growthy, that's not, you know, in our opinion something that you shouldn't also do. that should definitely be part of your portfolio, but i think you have to want to pear that down right now. >> i wonder what they teach in "b" school with all the acronyms going out the window. >> high yield. >> rick, the dollar continues lower. we're at year low for the dy and setting lows for the yen and euro as you well know. looking ahead, do you see that continuing, or are we searching for a bottom yet

>> you know, i think it's going to continue it, and i still like to frame it looking at the euro as the main character in this play, and the euro, of course, 117 handle getting close to 118 handle, trading at levels we haven't really closed at since early 2015 it really looks to me, bill, you know, if you take a macro view of the fx market and how all the cross-trades are euro friendly, certainly a 120 euro versus dollar is highly possible which means there's probably a bit more pain in the dollar index, and over the next several weeks it's going to be very interesting to see how jobs reports numbers, wednesday adp, of course, private sector hiring friday we'll get the big july report from uncle sam i'm sure that those will play into this conversation, and as far as jeremy, you know, jeremy is a smart guy listen, corporate securities, especially the investment grade. if things get dicy, the other spectrum is going to go with the dicy stock market. you'll see the high yield and

junk spreads widen, by i always say corporate investment grade, you have to be happy with the yield because if things turn and spreads widen, you always want to make sure that you can live with the cash flow if you don't care to liquidate based on price fluctuations >> and, steve, what would you add to that, especially, you know, we've had a lot happening with the health care bill not coming together. we're starting to think about what is may look for and do for the u.s. economy and the gdp number this morning was okay but still not great. >> right. >> so how are you looking at landscape? >> everything you just said and the market is down four handles in the s&p so the bears have gotten tremendously frustrated you can't knock this market off around all-time highs. that passive investing that we always talk about, it goes into those top names, and it just keeps feeding in, and that's a big reason why the market continues to make new highs so don't discount that. i think the market is still sideways to higher. >> jeremy, you going to look for

any yield in the stock market? >> i think that's a little bit harder actually i certainly think there's some of biotech names that have pretty good yields you know, some of the larger companies definitely have some that we'll lock at as well, some of the industrials, but, i mean, if you're going to allocate new money to the u.s. stock market, it's hard not to make a case for chasing growth in this environment, even though that is by far the riskiest proposition. >> all right thanks, everybody. have a great weekend, too. jeremy hill, steve grasso and rick santelli. we have about 45 minutes to go with this dow hanging on to a 22-point gain today, and the dow has been outperforming of late the nasdaq coming off some weakness, still lower by a .21%. the russell the weakest again with a five-point decline. up next intel cfo bob swan is going to break down the chip-maker's latest earnings on a first on cnbc interview and tell us how his company is trying to fight back against amd. president trump's chief

strategist steve bannon reportedly wants to regulate google and facebook as utilities. coming up, we'll talk to the journalist who broke that story and find out whether there's a chance that mr. ban non-'s vision could become reality. >> we want to hear from you. reach out to the show and share your thoughts with us via twitter, facebook or e-mail. you're watching cnbc, first in business worldwide these days families want to be connected 24/7.

that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. mixed day on wall street with the dow up 21 points in record territories, but the s&p, the nasdaq and the russell in the negative as we head to the close for the end of this week

meanwhile, aircraft parts-maker rockwell collins is one. best performers in the s&p 500 today after the company beat wall street's earnings and revenue estimates for the third quarter thanks to higher profit margins and its acquisition of be aerospace up almost 4% in today's trade. >> shares of intel reporting better than expected revenue yesterday and despite having a huge market cap the ceo found himself defending the company against a much smaller rival during the conference call with analysts josh lipton has the details. josh >> that's right. he was asked about an old foe, amd, company on the move introducing products that take direct shots at intel's business it's a fight we know that's began on for a very long time. in this corner intel with a market cap of 1666 billion amd 13 billion in the last fiscal year intel did 59 billion in sales and amd

4 billion and intel dominates the market that it's in. for the market for pc prosors, 91% share according to idc and amd 9% but amd is getting a lot of attention recently introducing new chips for pcs and servers on the call, he didn't seem too worried. >> amd has raised up a bit with more recent products and you can see us responding. this is a traditional performance battle we're very accustomed to it, and you're comfortable in reacting and competing very aggressively. >> but maybe he should be a bit more concerned patrick morehead is former vp at amd. he says for certain workloads that use a lot of processors simultaneously, for example, if the company were to run something like a complex drug simulation, it's amd that has

price performance advantages with its new chip meaning the corporate customers will get more bang for the processing buck intel disputes that saying it has the advantage with chips that are faster and more powerful, but investors clearly taking notice. intel basically flat and amd has surged more than 100%. guys, back to you. >> thank you, joshua moving higher after that beat. >> joining us to talk more about this, you know, first on cnbc interview as we mentioned, we're joined by intel's chief executive officer bob swan good to see you again. welcome back. >> wonderful to see you. great to be here. >> let's start with this amd rivalry. what do you guys say and especially when you consider the stock performance the last year between the two companies. >> first, i would just start with the opportunity that we see and what you've charactered as

one of the most exciting corporate transformations in history here at intel. as you know, historically we've been a pc centric company and over the last several years we've been migrating to what we call a data centric company at a time when the demand for high performance compute is as high as it's ever been, and that's what we're focused on. that's what we've been executing against and after a record 2016 we delivered a dynamic second quarter and launched the products going into the second half of the year so we're really excited about the outlook and really excited about our performance and we welcome competition. it makes us stronger >> bok you guys have reinvented yourselves and if it's the case that amd and nvidia have advantage in processing power for some of the new applications, couldn't you throw

money at it and catch up and would investors rather hear that than hear you say we're not worried? >> well, i would look about it this way we look at it as being a $200 billion market, and within that market, we have roughly had a 40% share and we see all sorts of opportunities to invest and grow and do it in a very disciplined manner, so we are investing across multiple dimensions of the business, and we're very excited about our execution against a competitive dynamics that were -- that we're operating against. >> i hate to keep harping on the stock price, but let's face it that's the report card, and i know know ceo or cfo is going to come on here and wring your hands publicly about the price we mentioned how flat the stock has been your stock has been flat for the last three years you're essentially right where you were back in july of 2014. what is wall street missing?

i mean, you have to be frustrated you're obviously excited about the new initiatives of the company. what is wall street missing about that, bob? >> again, we have very exciting strategies and a straight set of products, and we've grown the business very effectively over the last couple of years, and we're invested in the right spaces going forward i think what investors are looking for from us, bill, is just keep delivering, do what you said you're going to do. we've got a very exciting acquisition that we're about to close with mobile eye that is going to expand and a very big opportunity going forward and we're going to keep delivering on that. we've got a great strategy and a great team and we're excited about going forward and i believe, as we continue to execute, as we have over the last several quarters, that the stock will take care of itself. >> being a total addressable market you mentioned mobile eye which i was just going to raise there. there's been a huge increase in the amount of technology and

chips in cars these days how much bigger can that get and how do you make sure mobile eye and intel are at the forefront of that? >> well, that's -- that's the excitement when we look at the silicon required in autonomous driving over the course of the next ten years, we look at a $70 billion tam, so when you think about intel inside the pc, that was a huge market for us intel inside the data center, that was a huge market for us. we think silicon inside autonomous vehicles is even a bigger market, and we believe the combination of mobile eye and intel are very well-positioned to capitalize on that opportunity. >> bob, i'm going to be looking for an intel inside sticker. lock, if it's an uber or lyft or car i'm buying, is that the idea why not? it works for computers >> exactly that's our excitement. intel inside the pc, intel

inside the data center intel inside the automobile. the needs, the compute needs for an automobile. it's going to be like a server inside a car, and who is better positioned to deliver high performance compute than intel combined with mobile eye going forward. it's an exciting market for us we're very excited going forward. >> got that. what about the internet of things though? mean, i've been reading that you've been de-emphasizing some aspects of vat which had been a growth category, especially in wearable technology. i know you're de-emphasizing computing and emphasizing data and silicon. what does the internet of things play in that >> it plays right smack dab in the middle of the our data centric strategy our business quarter this quarter drew 26%, its margins expanded and we continue to invest and develop opportunities in really a couple of different big verticals.

industrial, transportation and retail and video those big verticals are the opportunities that we're investing behind, and, again, as i indicated, 26% top line growth in the quarter and expanding margins. it's an increasing portion of our data centric set of businesses capitalizing on the opportunities that we see. along the way we'll emphasize some stuff and deemphasize other things the internet of things is a big part of our business going forward. >> very good thanks, bob. appreciate the time. >> bill, kelly, thank you. >> you bet bob swan, the chief executive officer at intel. >> which is helping to, you know, helping to mitigate some decline and other tech names that we've been talking about. >> north korea launching an intercontinental ballistic missile for the second time this month. nbc's happens nichols has the latest details from the pentagon hans >> what we've learned here recently is the joint chiefs of staff have called his

counterpart in south korea to discuss military option oz, something we don't usually hear about so it's remarkable, a, they discussed it and, b, that they are actually publicly reading this out we've also learned a little bit about the missile, how high it flew it went straight up into the air. it the has a theoretical distance of about 6,500 miles. just to give you a sense, the cities it could potentially impact, seattle, denver, los angeles. this is very serious they are treating it very seriously here at the pentagon the one caveat to all this is they don't know how successfully the re-entry was, and they also don't know whether or not this missile was tipped with any sort of payload you put a payload on it and put a nuclear weapon on there, it's unclear how much further it could fly and whether or not all those distances would then need to be slunk down a bit and recalculated they are treating this very seriously at the pentagon. guys >> nbc's hans nichols. thanks for update on that, and i would point out the obvious, that the market has not responded to that at all if we

would expect that. >> art cashin mentioned that, especially with the drama in the white house, the way china has been amass troops and still nothing major. >> we'll see right now the dow is still positive a gain of 20 points. as we close out this week the rest of the major averages are negative tobacco stocks up in smoke today after the fda announced it wants to cut nicotine levels the fda commissioner spoke about it on "power lunch." we'll have the highlights coming up here. >> and amazon's earnings dragging down the tech space we'll talk whether apple can tu tngrnhis around we'll have the results next week stay with us where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.

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welcome back, with the dow up 21 s.other averages dipping lower as we head into the final half hour. tobacco stocks in a heap of pressure after the fda announce it had wants to lower nicotine levels in significant et cetera to non-addictive levelsch the agency may also eliminate flavoring that appeals to young people shares of the tobacco stocks down bigtime attila down 10% and british american down 2% and even as analysts say it may not be so bad for them we'll see. >> we will see oh, brother. 30 minutes left in the trading session, the dow the lone gainer among the major averages up 21 points joining me on the floor of the new york stock exchange is mr. priest costa from empire executions clearly with all that's gone on,

now we've got this icbm that north korea has launched, wall street is all about earnings. >> with good reason. i wouldn't say they have been stellar but pretty close to stellar. that's something you have to keep an eye on as far as north korea is concerned. >> why aren't we seeing a response to that >> all the guys say this is the most powerful icbm they have launched yet. >> this is beyond me i've been watching north korea for the last three and a half years, and they have accelerated everything they want to be a major player on the stage and they will do something at some point. hopefully i'm wrong about that. >> yeah, right >> about it just seems like they are gearing up for something like that, i don't know about a disastrous effect but it could potentially because they are not dealing in an isolated

environment. they would be looking at, you know, going -- south korea, one of our biggest trading partners. it could be a substantial problem and they are taking a blind eye towards it have a good weekend. >> thank you, you too. >> kelly. >> time now for a cnbc news update with sue herera. >> here's what's happening at this hour, everyone. we've been talking about the situation with north korea south korea is now weighing. in the pentagon says it believes north korea launched an intercontinental ballistic missile that flew for about 620 miles and landed in japan's exclusive economic zone in the sea. but just a short while ago south korea's president says that he wants discussions with the u.s. on deploying additional thaad anti-missile defense units in his country. senate minority leader praising three republicans that voted against the skinny repeal

bill that led to its defeat. >> last night was an amazing moment and the credit goes to a lot of people but at the top of the list are the three who showed amazing courage to resist the pressure and do what's good for the country. john mccain at the top of the list. >> a soyuz space capsule successfully blasted off for the international space station carrying a russian astronaut, italian and american at naumpt the three are joining an american astronaut and russian cass mow fought already on board the space station. that's your news update this hour kelly, back downtown to you. >> thanks very much. shares of starbucks sinking after reporting earnings after the close yesterday. the coffee chain gave weaker than expected guidance which had gunk heim downgrading. ceo kevin johnson was on eson the streerltier and spoke about the company's slowing growth. >> the data that we looked at

has to do with the u.s. data of, you know, thousands of restaurants that serve customers for away from home food and beverage and over time that number continues to grow and it has some ebbs and flows and what we've seen is a little bit of softening which indicates the customer consumers are spending their money on other things right now and that caused that number to slow we were very proud of the fact that even with the slowing growth of the macro number we posted a 5% comp in the u.s. >> yeah, but the thing that got everybody's attention was the closing of all the teavana store. >> that was a whole thing yesterday. the malls, they are like creating another vacancy. >> here's what my first thought was, i'll be honest. howard schultz knew when to step aside. >> wow. >> this is the interesting question if he's still involved day-to-day in the company, shares are down 10% today, sees

that gunk heim has slashed its price target from 70 to 58 because it doesn't see multiple expansion and others think it's range-bound. if you're him, is it hard to stay away? >> we've seen this before many times, longtime ceos have been identified with their companies stepping aside just as the market has peaked for their business it's happened before. >> and i keep remembering. you could have gotten starbucks at $5 a share. >> for the cost of the tall one. >> brutal session there. we'll see how it shakes out. 25 minutes to go the dow is up 27 and the other major averages are lower today, and when you think of utilities we're usually talking power plants and water providers but white house chief strategist john bannon wants google and facebook to be regulated as utilities next. >> and snap shares falling about 20% since the ipo in march, but there are concerns that we could see a major llf tseofinhe social media stock on monday find out why coming up on "closing bell.

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welcome back a choppy week. we've seen a lot of dispersion across the major averages. nasdaq has been underperforming and so has the russell, the

dollar down another half a point to just about 93 and change. dow hanging on to a gain of 26 at 28,823 right now. washington and, well, everywhere else is britain's channel 4 newsing about recent comments made by white house communications director anthony scaramucci and comments made to the "new yorker. bannon himself has had a controversial path calling recently for a 44% top marginal tax rate for people making more than $5 million a year. >> bannon wants facebook and google to be regulated more like utilities. let's bring in the reporter who broke that story, ryan grim, d.c. bureau chief of "the intercept. this would speak to his nationalist tendencies i guess why just those two companies >> i don't know that it's just those two companies and actually i suspect and the people i spoke with suspect that it goes -- that it goes further than that, but the sources that i had had only spoken to him, and he

mentioned those particular companies. it would not surprise me at all if companies like amazon also fit into this, because he was talking about a theory in other words, here are tech platforms that have become basic necessities of contemporary life that have enormous power, and, therefore, ought to be regulated like public utilities. he used the examples in conversation of facebook and google and certainly something like amazon fits into it as well. >> brian, i'm just a little confused because if we're talking about how they have too much power then there's antitrust regulation to deal with that. why make the leap from that to public utilities >> well, if you take antitrust actions say through the department of justice against one of these companies, a result very much, you know, could be that they end up being regulated through some type of settlement as a utility that's how it happened with at&t, so there's really no confusion here you know, he can't --

>> well, wait a minute going back to the at&t example. >> yeah. >> at the time that was a provider of phone service, and once you deem that that's, you know, an essential public good you have to say, okay, they own this infrastructure, and we're going to make sure they can't own too much of it and be anti-competitive towards consumers. what is it that they are claiming facebook and google own that nobody else can access? >> for google it would be search for facebook it would be the social network which mark zuckerberg used to refer to all the time as a social utility in fact, it was in their slogan up through 2008. by 2009 they had gotten a better legal team that understood antitrust legislation and litigation, and they took utility out of their slogan, so, you know, they have understood themselves as a social utility from the very beginning. my understanding is that twitter the same thing, that once you grow a social network to a

certain size it may lend itself to having natural monopoly properties. >> let me, again, as i always want to do is state the audience if you have a captive audience as an at&t did or many traditional electric utilities have, you become a utility that needs to be regulated for price purposes to protect the consumers, with you there are no barriers to entry to search or to social media or even to online retail even though these companies have tremendous scale and, therefore, that kind of power. maybe we need to ask bannon this, but when you talk about regulating them as utilities, what exactly are you talking about here just the amount that they can charge advertisers or, you know, how would this work? >> the argument would be that for somebody like facebook or google scale itself is the barrier to entry you know, ask bing, you know, with millions and millions of

dollars whether you can create a royal search engine. okay, search is an essential thing. we're not going to allow google to kind of use its dominance, its monopoly over search in order to from there use that leverage to control the rest of the internet we're not going to allow facebook to take over the publishing industry, not allow it to take over the advertising industry. >> look at -- google has so much searches for a product, start okay ansome relative to google i'm sure that google would love that not to be the case. we're talking about them having lost a dramatic amount of apple share and five, ten years, it's the only place to buy music and movies it the controls your phone they have lost dramatic market share, especially on the music and movie piece of that as well. >> i'm glad you guys are asking me the questions and i think business reporters like yourselves are going to spend a lot more time about monopoly politics over the years to come.

it's becoming an issue both on the right as you see it with steve bannon elevating it here and on the left. this is something that both wings care about the center, absolutely doesn't want to talk about it. you know, they will say things like you said, hey, look, all you have to do is start up a url and you can start your own social network this is not a monopoly so, you know, it takes a little bit of imagination to try to understand what it's like to be a small business to -- let's say -- let's say you're an advertiser or a publisher, something that i know a lot about. >> if you're a user, nobody is forcing me to be on facebook guess what, i have the option to opt off. >> i grew up -- i grew up drinking well water. that doesn't mean we don't have water utilities. >> if you told me i can only access information from -- if you said i can only access information from facebook or google, then i -- you know in, would i understand your point but i don't. that's not an issue. >> well, you can only access

advertising effectively through facebook and google. ask any publisher the last decade 99% of advertising growth has flown to facebook and google rather than to publishers, so the question is do we want to live in a world where facebook and google end up owning all of the online publishers? and, hey, yeah, can you go to work for us and start ryanblogspot.com, absolutely you can do that. you could have started a telephone company back in 1955 if you wanted to, but guess what at&t had it on long. you weren't going to get very far, so the question is what as a society do we believe is essential, and are they delivering what we need and if not are there ways that through the department of justice or through legislation it can be corrected? >> yeah. >> all right we've got to go, ryan. great conversation. >> really appreciate it. >> great story ryan grim of "the intercept" joining us here. oh, boy, breaking news on martin shkreli's trial. meg tirrell outside the

courthouse in brooklyn what's going on? >> reporter: hey, bell, the shkreli case is now in the hands of the jury. however, they will not start their deliberations until monday this comes after his defense finished up their closing arguments this morning the prosecution had an opportunity to rebut and then the judge just charged the jury basically explaining their duties and walking through the law as it applies to all the counts against him as a reminder he has been charged with eight counts of security fraught, conspiracy to commit security fraud and wire fraud. of course, he pled not guilty to all of those counts and now the jury will have to decide on those counts, but that's going to happen monday morning, guys, so a weekend here of waiting in the shkreli trial, bill and kelly. >> are they sequestered or are they free to go? >> no, they are not sequestered. of course, there has been that conversation about trying to keep shkreli and the attorneys in the case from talking about the trial, but that's just in and around the courthouse so shkreli is free to talk about

the case on social media he has been and been writing on his facebook a lot when he's left the courthouse so, no, the jury is not sequestered. >> like i said, oh, boy. thanks, meg. love your live tweeting that have trial it's been great, great stuff. >> but it's an anti-competitive. >> anybody can do it. >> 14 minutes -- you love that story, don't you >> i just -- this is all separate from the net neutrality thing. >> yes, i get it if you're going to regulate something, the internet itself, right? not the platforms on the internet. >> and even there. >> i know, but we digress. 14 minutes left in the trading session with the dow up 36 points when we come back, we end the market week and the market month, except i think month is still -- david darst will join us with his word.

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all right. we head to the close here, ten minutes to go. joining us right now is our friend and independent consultant david darst with his acronym of the week. you get suggestions all the time. >> we had a great one. >> i'm going to go there august which is coming up this coming week as you know, named after august u.s. caesar who followed his nephew, his uncle julius caesar, the rumor is that august, augustus stole one day from february and put it the in august so that he would have the same number as july named after julius caesar. it's apocryphal but i do like that story augustus means favored by the gods and let's hope this coming month is this week i think we need to remain aware, volatility is low. come up a little bit reached an all-time low this

past week. valuations remain high and stretched, and by many measures, price to book, price to sales. market cap to gdp, we've talked about that for many weeks, aware. we need to be aware. number one is the anemic the anemic inflation numbers, janet yellen and others have talked about as a reason to perhaps delay excessively fast raising of the interest rates, policy interest rates. "w" is a weaker dollar that's a tonic and a bit of moxie, an all new england beverage, a bit of moxie for the market the dollar is down about 7% this year. >> how do you reconcile that with anemic inflation? >> anemic is from the greek word without blood. a bloodless inflation, to spoil or corrupt or weaken. >> already your most epic one. >> you haven't had the buying pressure to raise prices there, bill, and kelly. >> they are on their knees in

the control room right now. >> a-w-a-r -- >> the affordable care act repeal was reject the, so i think that's indicative of some of the political dysfunction that's going on. the "r" is the rebounding oil prices july 1st oil was 42. now it's 49 and change that's an increase of 17%, that's a good thing as well and that leads finally to "e," earnings, which are on track to increase about 11% we talked last week they might be up 8%, but you've seen good numbers coming through by so many multi-national companies in particular next week we've got the jobs numbers. we've got the ism manufacturing and non-manufacturing. you've got construction spending, so there will be a lot of motor vehicle sales got a lot of news flow to set the tone for the coming month favored by the gods.

>> what's your take, david, on why the market does not seem to respond at all to this icbm missile launch by north korea? as we've been discussing here, the military officials themselves, both in the u.s. and south korea are very alarmed by the capabilities of this particular missile that was launched. >> well, i think, bill and kelly, the geopolitical part of the equation always needs to be kept in mind i think people need to have a little cash that they can put to work if things did come down everybody i've talked to this has been the most not reviled and hated market, but the mostig nor ignored market increase i've found very few people wildly bullish. >> like automatic pilot. >> correct. >> and i think that's the reason to have some cash, if there is some untoward event. it is something we've got to keep an eye on it's a dangerous thing, and i

think it needs to be dealt with in a statesman-like and assertive fashion. >> all right >> thank you, sir. >> thank you so much have a great weekend kelly, bill >> you, too. >> speaking latin is a lost art, unfortunately. we go away with five minutes left with the dow up 38 points and the other major averages are negative right now >> we'll have the closing countdown when we come back and we'll look after the bell to see if apple can come to the rescue with its earnings report next week stay with us

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(elegant music) ♪ and let me play (bell rings) just inside the 2:00 mark as we head to the close i just got word that a late bye program of 900 million came into the market here giving a slight bump to the dow as we close out this week. we mentioned this is the busiest week of this cycle for earnings reports, and, boy, did it deliver. that was the underlying support for this market. dow finishing the week at the highs and in record territory. the nasdaq a different story that was a drag on the market this week.

we had that weird sale program on wednesday midday, and that took the -- on thursday. and that took the wind out of the market sales there and we're finishing the nasdaq way out of record territory the dollar index continues lower. that's a low for the year. we're at a two-year low against the euro right now there we are at 9329 on the dxy. that helped support oil, wti, the march to $50 this has been the best week for oil this year and now we're just at tap-in away from $50. what's interesting, bob pisani is the correlation we're seeing finally with the transports. that's the highest level we've seen on oil since late may the transports are at their lowest level since late may. i'm just saying. >> and the amazing thing about this week, despite everything, s&p is flat. oil is up 9% best week in ages and exxon mobile hit at 52-week low today.

production was on the disappointing side and earnings misses overall and that was a very difficult time for them the conference call was ver tough. >> lots to get to coming up here we'll get you set for the apple earnings coming up next week as well on the second hour of "closing bell" with kelly evans and company. have the a great weekend, kelly. >> thank you, bill welcome to "closing bell," everybody. i'm kelly evans. here's how we're finishing up the session on wall street today we have one record close for you. a 35-point gain on the dow 21,831, a new closing high it's closed up 21,800, took two sessions to go from above 21,7 to above 21, 8, 171 points shy

of the 22,000 mark the s&p 500 dropping to 2472 the nasdaq beleaguered we'll talk about some of the tech weakness the last day or so and the russell 2000 down a third of a percent more weakness in the dollar, too, half a point drop boosting oil and boosting gold and earnings in the stock market, too. we've got apple reporting earnings next week will that be enough to save the tech sector after amazon's disappointing results. we'll have that coming up today. joining me on the panel is cnbc senior markets commentator michael santoli and evan newmark. welcome, guys. mike, we've had a lot to digest and the biggest week for earnings, 175 s&p companies. major news, both domestic politics, geopolitical with the north korea missile launch again today. >> yeah. >> and then this massive move lower on the dollar, and then the tech stuff over the last day or two. >> and it all washes over the

market and basically kind of holds it steady which is kind of the surprising thing the market is allowing earnings to come through which both confirms the fact that we have a continued earnings rebound coming in roughly better than expected the way we always seem to think it's going, to but then the immediate response in the company's reporting has been net negative, if the overall index managed to hold up i think that's kind of a win by default. >> evan, what do you think >> very, very tenacious. i'm a little surprised actually. >> at how strong the market has been >> yeah. i mean, basically you've had -- you've had a lot of reasons for the market to sell off, and the market really hasn't, and all i can think is maybe just the algorithms are sitting around waiting for it you know, it's -- it's not -- it's been generally low volume there's been some big -- starbucks was down 9%. >> starbucks down 10% and boeing up 10% and verizon up 8 yesterday.

>> a bit odd, and you've also had, you know, the airlines haven't had a bad weak you've had pockets of weakness but overall the overall markets have barely bunched. i take issue of the constant use of the term tech wreck you call it tech wreck and literally most of the tech stocks, amazon are 2% to 3% -- >> a pretty rough couple of hours yesterday. >> it's crazy. all the major tech stocks are plus or minus near their all-time highs. >> it's true, but what i do think is going on, you see all the individual negatives that kind of get the reaction. >> right. >> but then the market in aggregate takes a step back. is there a macro story being told in these stories and something to be unwelcome? not really something that hits the credit markets. no, no, no, low doing dollar and high liquidity supporting things for now. >> and take a look at the

accounting for the difference. chevron was up 2%. by the way, exxon was up health care names, united health was higher insurance, i should say, travelers higher by 1% again, that was all on the dow nasdaq, as you mentioned, big decliners, 5% drop in netflix and starbucks is the worst performer and mattel was next and western digital down 7.5% and mikon down 2%. baidu's earnings beat. that stock was up 9.5% i'm sure we'll talk more about amazon and that doesn't matter amazon, does it move or the company? >> doesn't matter what they report literally jeff bezos could have come out and said we'll never make profit, and you know what i'm saying directionally there's so much faith in him, and it has been well rewarded over time. i'm not saying you shouldn't

have faith of all i'm saying is, you know, with almost any company, now i would say with the exception of netflix and amazon, they seem to be untouchable in terms of valuation. >> yeah. reminds you of that a little bit. >> brian, want to bring you in here as you look at how everything is shaking out as well are the there opportunities from some of these dislocations, or is there any overall message from earnings? should people be looking for more opportunity in this market? >> i think that's a real message here that earnings are beating expectations and you do have some winners and do have losers, and this is an environment where stock picking does matter. clearly you look at the major averages, and it kind of washes out which highlights the importance of diversification but at the same time if you have one stock going down 2% and another up 2%, right, you obviously -- the stock selection is beginning to matter, and it's mattering more and more as the year goes on we've noticed that correlations amongst stocks here so far have lowered and it looks to continue

to be lower. it's a low volatility, lower correlations seems like a pretty good opportunity to look within any individual sector and try to pick your spot, where you want to be for the long term. as far as the tech side, i wouldn't be surprise federal we saw the nasdaq to get back up to 6,500 shrug off some of the quick selloffs that we had yesterday and a little bit of weakness today fact of the matter is revenues and cash flows are looking pretty good. the economic backdrop is looking positive and improving with what's not to like. >> some macro stuff, gdp numbers, 2.6%, up from 1.2 the price deflator was very weak. >> it was a little more -- it was okay, but definitely didn't give you the impression that this economy is sort of about to race ahead faster than we expected again, it's more of the same if you think that the tech sector and nasdaq can get to 6500 i think that's implicitly a bet

on more slow growth and a bet that the rest of the market won't upstage technology because you won't see the yields go higher. >> all of a sudden you have like an incredibly strong production number or something. basket of stocks deserves to do well and almost what we called the trump trade but it's not the big-cam names. i would like to say maybe you can read something positive going back into that yesterday afternoon, but there's no news on that front. >> it's weird. i don't think, you know, it's one of those things where as long as there's no big surprises, things will just kind of go ahead, you know, as is, because nobody -- you know, usual will you i need a reason to sell and there hasn't been any reason to sell and people -- valuation does not matter until it matters, so it will be one of those things where until people wake up one day and they go, oh, geez, i'm owning netflix at 250 times earnings i've suddenly made, you know, that's why we have a little hiccup, the bottom falls out and

netflix dropped 5% on basically nothing. >> but the fact that evan can name the five or six stocks that trade at 100 times earnings shows you there they are kind of the exception. the overall market is really pricey, but it's not like nosebleed like that. >> that's why it's so interesting because this is not the internet bunnell of 2000 it's not the financial, you know, leverage bubble of 2007. it's not it's not, and that's why in a weird way it's a little more insidious and dangerous i think. >> by the way, apple comes out with its earnings next week after being up 29% we wonder how that will affect the tech sector after missed reports from f.a.n.g. and other tech stocks. joining us to talk about is daniel. >> good to see you. >> what are your expectations for apple? feels like the stock is up and there's a holding pattern waiting for the next phone what are you looking for next week >> a couple of things we're looking for. clearly we want to see that the results on the iphone are in

line but recall this is a season nall seasonally weaker time of year the big question is can apple execute on its big iphone 8 cycle, and secondly when you think of what the power of the company is, it's about their ecosystem and whether they are able to downto attract developers to the platform who can then build on what apple does. >> that said, apple is not really a f.a.n.g. name, right? it's had a great year, but we have facebook, amazon, you know, sometimes people will throw apple in there, but it's more netflix and google and microsoft. why isn't apple one of those names? >> well, i think's a couple of reasons for it apple is very much a product company, so when you think about the dynamics of its business, you go into the december holiday season where they have a big ramp in the iphone, and then it comes back down, and so that's one piece of it, and then the second thing is if you think historically, apple has been able to affect -- execute

through many different product transitions whereas if you look at other companies like blackberry, for example, they struggled, and what we think is interesting with apple is that they have been able to layer on new products and increasingly services to what they are doing, but there's still i think to your point a tremendous amount of skepticism whether they will be able to actually do that over time. >> brian, what about you guys? what's your expectation there? >> you raise a good point. why is apple not one of the f.a.n.g. names and the tech sector is really an eclectic mix of business. amazon is what ge was in the 1960s and '80s where it's more of a conglomerate, consumer discretionary and apple is much more product oriented and google and facebook are much more web-oriented so you can't look at the entire sector through one lens you have to look at it through a variety of different perspectives i don't have strong expectations or any strong opinions on apple.

i'm a little bitter about the fact that they are getting rid of the shuffle i was about ready to upgrade i think mine is 12 years old now and maybe i'll have to find one on ebay instead. >> i had a shuffle with a little clip those were great could put like 150 songs on them never had to worry about dropping it. >> i don't want to wear jewelry when i'm working out or carry phone when i'm working out i think people have somewhat lower expectations because people are waiting for the product upgrade, right waiting for the next iphone. i don't really have high expectations i'm not sure if investors have high expectations, and i don't think people are looking at them as a belle weather >> by the way, you know, i've been wondering since this movie baby drivers, kids has an ipod, wonder if it's going to create a retro trade. >> should totally do a retro. >> cassette tapes, i doubt that will even happen even. in terms of the upgrade sector, one of the cases on apple, the case of iphone is so huge now,

we'll see more of an effortless or high-volume upgrade cycle do you think investors next week will be kind of hinging on exactly what the clues for that are? >> i think a couple of things. so next week they are going to look for how the business is performing right now or in the quarter that just ended, and they will also look for guidance and the guidance in the september quarter will be impacted somewhat on when the actual products arrive >> and they can deliver it, and the more important thing and you touched on ipod and shuffle. what's been interesting about the company is they have been able to bring their users with them over time and they have been able to create a user experience around software and services and so when you go from one apple product or service to another, your data follows you, and people value that. >> yeah. >> and we've seen that the customers are loyal, and also apple has been able to attract new people. >> real quickly, what's your price target on apple? >> we think there's significant upside over the next 12 to 18 months think apple has a lot of

opportunity, there's risks, competition is fierce and we'll wait to see how they do. >> brian, appreciate you being here as well >> we do have breaking news to get to on martin shkreli what's happening >> martin shkreli and his attorneys left the court this afternoon and we ended a little bit early on this friday as the case will be in the jury's hands. however, they are not going to start deliberations until monday morning. the timing was too close to the end of the day on friday for them to go into the room and start the deliberations, they, of course, have eight counts to decide on, conspiracy crowd and conspiracy to commit wire fraud so that will start monday morning. we did ask shkreli's attorney whether they had any comment on how the trial went today and they declined to comment to us outside of the courthouse, shkreli himself has been banned from speaking about the case in and around the courthouse, though he did in the video tried to get between him and his attorney to maybe keep me from asking questions just now.

a pretty tense day as they finished up the case and an opportunity to rebut that. deliberations will begin monday morning. >> martin shkreli goes home for the weekend. meg tirrell following that for us. the u.s. has detected a north korea ballistic missile launch today and hans nichols joins us with the latest. >> reporter: they are doing the analysis trying to figure out how far this missile theoretically could have traveled they shot it straight up in the air and let it come down that goes 1,000 kilometers and you tease that out for how long and how long it was aloft, it means it re--entered into the atmosphere, and if you tease all that have out you could hit major u.s. cities, denver, seattle, los angeles, and then you factor in the fact that the earth is moving, it's spinning, you could potentially have some

major east coast population centers in target, in range. we know the chairman of the joint chiefs of staff general dunford has spoken with his south korean counterpart talking about military options guys, i have to say rarely do they publicly acknowledge talking about military options it's even less so that they say they are doing it with an ally, in this case south korea everyone here in this building is taking this very seriously. guys >> hans, thank you hans nichols at the pentagon ahead, chief executive jeff immelt leaves at year end. is he poised to take the helm at uber first, oil is closing in on the $50 mark upwards after climbing nearly 9% last week. a bull/bear debate on their next move contact the show on facebook or twitter or by e-mail you're watching cnbc, first in business worldwide

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the $50 mark so it's energy which was the worth performing sector of the year joining us in a bull/bear debate is the bill glickman and kyle cooper from ias advisers guys, welcome. kyle can, i understand you're our bull here so we'll begin with you first of all, is the strength just the flip side of dollar weakness, or is there something more fundamental going on here >> certainly the dollar weaknesses help. dollar weaknesses contribute to products across the board and is points to eia inventory trends inventories remain relatively bearish at 2 million and we've dropped 75 million barrels from late last year and the trends have accelerated here in the last couple of weeks with large draws being reported each week and that's helped to propel the prices higher. >> why don't you think that's going to last here how low do you think oil prices are going? >> so i think near term there's still an awful lot of supply

headwinds that investors need to keep in mind you have, you know, using the same source eia, looking for it to be in the mid-9s in 2017 and kind of budge up against 10 million barrels a day and 2018 that would be a record high if we get there, and kyle is right that inventories are coming down, but let's not get ahead of ourselves. it's still an awful long way to get down to the five-year average. probably if you were to maintain the pace from the most recent week which was a fairly high draw, it would certainly take you closer to the end of the year to get down there. >> let's bring in our oil investor, evan newmark. >> last time i put money into oil was the early part of 2016. >> what bearing does this all have on what you're looking at in the. >> you know, my view at the time was that prices were super low back then. i think -- i don't know. probably in the low 30s, maybe even got it below 30 for a short period of time. >> i'm just saying the bet was

that basically oil wasn't going to be down at $20 a barrel nothing more scientific than that i'm curious, that you know, we never hear anymore, you know, used to be geopolitical tensions drove the price of oil and now all the discussion is about supply and demand. i mean, what is it, what really drives the price of oil? >> stuart, what do you think it's a great point is it because opec is less relevant >> i think definitely they are less relevanch the magical cost of supply is really the driving factor, and a lot of these companies have gotten better and better at getting identity out of the ground in a more efficient fashion, it drives that marginal cost lower, and it's -- it's simply become easier to be profitable in the $40 range than it would have been easily three years ago. >> kyle. what would you add >> you know, absolutely. that is the case as they continue to be their own worst enemies in terms of how they have gotten, but he's right. opec is no longer the marginal low-cost producer, but what i'm

looking at is the next couple of weeks here where summer driving season in the u.s. is still full bore there's still very, very solid demand and longer term we might end up lower as the usc & ps continue to get better and better, but in the near term i expect eia to report very bullish inventory reports until the summer driving season is over, and that's really not for another few weeks. >> i'm so -- i'll say the oil market, the e & p market, i find this is a total puzzle i mean you can have guys like this i'm sure they are very smart and do their homework. could have been on in 2007, not saying that they were when the price of oil was going to $200 a barrel and everybody is like oh, they gave mow five reasons why it was not going to start at 200 and now it's like, you know, knife reasons why it's never going to go above $50 again. all i'm saying it's very hard. >> hard to forecast. >> it's a very hard business to income. >> we've been in this range for so long and the difference between 45 and 55 is how the traders are positioned largely

and what the incremental change in news flow has been about supply inventories that's all you're really doing kind of just trading the news versus expectations and are people too long or too short to break us out of the range you have to have something much more dramatic. >> stuart, kyle, thank you, guys. >> stuart glickman and kyle cooper. and with oil prices on the rise, people taking rv trips across the country are spending more on gas in country not stopping rv-maker thor from doubling down. landon dowdy is out in california i was hoping you might be in the rv, but you're near an rv in petaluma. >> reporter: i'm on one. i don't know that you want me driving one. this is a towable that we're looking at right here. brill president trump pushes his america first message and other u.s. corporations we're seeing scram to be respond the rv industry looks set to benefit. >> we're made in america

nothing screams more american than rv amend all our companies are in the u.s. based out of four states. >> reporter: and martin is putting his money where his mouth is while other manufacturers move production overseas, thor is betting big in the united states the indiana-based firm which already has over 200 factories recently expanded its facilities in indiana and idaho and plans to invest $130 million in expansions in fiscal year 2017 indiana is not only where most rvs are made but also the home state of vice president pence who has come to ribbon cutting ceremonies at thor's factories but the problem here, a labor shortage, finding qualified workers is a huge struggle in the state, particularly in eckhart where thor and others are based. more that be 20,000 open jobs according to the economic development corporation, and it's a problem, kelly, that has some analysts concerned if the rv manufacturers can actually keep up with the demand. back over to you. >> which is a great sign

i think i remember when eckhart was one of the worst hit economies in the recession. >> what goes around comes around i remember doing this story in 2007 the high price of oil was basically killing them, and now they can't make enough of them >> msa, city by city and -- i was going to say, these are things of beauty if you haven't seen the inside how much do you think the one you're standing nokes costs? >> reporter: actually we were just talking about that. they can vary anywhere from $5,000 to 500,000 upwards. this is a towable. so this one is probably around brand new, around 20,000, $30,000 depending on how much the updated technology you have inside >> it's a towable. i see. >> have you ever driven one of those? >> i have not. >> very hard to drive. >> i'm not going to either. >> very hard to drive. >> that's going to be biggest barrier. >> not hard anymore. >> they have cameras in the back. >> self-driving rvs.

>> the last time i drove one was in 1986 so i would in the -- i would not know. >> that's a scary thought. >> all around. >> landon, thank you very much landon dowdy reporting on those made in america rvs. if you're polishing up your linked-in profile beware a tech company may be using your career aspirations against you, and there may may not be much that professionals can do about it and the outgoing ceo jeff immelt, the next career move is a tech disrupter and ur.be we'll discuss if uber is the right move for both.

welcome back it's time now for fast take to close out the week we begin today with a virginia federal court ruling that's pretty shocking. a judge ruling that had a local politician who blocked the constituent from her facebook account for his critical postings violated his free speech she broke the first amendment. my question is now because this will set a big precedent there's a lawsuit on trump or twitter for the same thing do you think this ruling is appropriate? >> is it appropriate i mean, i see thebase for the ruling, right? essentially if you're a public official and you use the social media account seemingly for a public purpose to communicate with constituencies, yes, it's suppressing somebody's political voice. >> i think it was a personal facebook page but she made it

clear it was a forum -- >> the judge seemed that it was kind of part of their public offering. >> you know, yet another reason why i steer totally clear of social media. >> don't dodge the issue. >> i'm not even a public figure. if you're a public figure raand you're actively tweeting. >> do you think it's better to get off all together >> it's like hillary clinton having the e-mail account that she used for both personal things and for business. there needs to be a chinese wall between your accounts. >> look, if you're a public official, it has to be. >> even if it's her professional page, if she blocks someone from commenting on that, you think that's a violation of free speech. >> if she's doing it as part of her job as a politician, she's supposed to be serving the public that's definitely a conflict. >> the takeaway, chinese wall, and if your company doesn't make you, you better do it yourself you guys surprised me. another lawsuit drawing attention to the way labs have

been using your data linkedin trying to stop the company from accessing the side and the company countersued saying linked in is trying to still competition. they sell analysis based on your profile of how likely you are to quit, guys. >> it's fascinating here because it's not protected accounts, enough private accounts. essentially just in the public we, so in theory you could have a company who employs somebody to go around manually and looking up all this information and collating it and selling it to somebody. >> and they have algorithms. >> kind of a web-scraping thing. seen as more of a threat. >> the idea is if you seem to be polishing your resume it's a signal -- and they assign you a numerical score and say this person is more likely to be leaving. >> yeah, and my view on this it's -- if it's on the internet, if it's public data that's not password protected it's fair game too bad. >> like if linked-in's response is to gate the entire site, do you think -- >> let them gate it.

>> i can't imagine they would do it or would be willing to do that. >> then they should do that if that's their problem otherwise it's accessible to anybody. that's public information. >> yeah, i know, and in that case public domain protecting a public domain. next, big developments on electric vehicles. tesla is delivering its first model 3 cars, maserati will have them ready by 2019 and toyota filed a patent for a lithium battery that could be lighter and longer range and in its cars by 2020. are we at a tipping point. >> but that all together with the ceo of royal dutch shell saying his next car is going to be electric, and i do think there's a sense there's a lot of momentum in this area. >> the uk is saying we'll ban gas line combustion engines by 2040 so is france. >> diesel and gasoline. >> every time i think, look, i happen to believe it a it's definitely going in that direction but when you drive on the highway here and you sort of

reimagine every car being electric, takes -- going to take a while to get there i think it -- it's going to take more time than i think people think, but it's -- it's -- >> that's why it's being forced. the environmental regulations demanding better mileage standards for gasoline cars are doing what we're supposed to do, intended to do, to make all the companies say the trade-off says i might as well go electric or hybrid. >> the political aspect of this i think is absolutely fascinating, because i think the odds of the gms and fords and all this stuff coming out ahead on this stuff, not too good. >> i tend to agree with you. >> i think the political aspect of this will be very interesting. >> let's move on to talk my ra

treasury pulled the plug saying it's cost taxpayers $70 million. >> could have given them the 20,000 people the $70 million. i was not a big fan of this program and just reminds you did you see the data came out on the savings rate in the u.s. we don't -- >> which one >> overall savings looks okay, but if you look at the number of people who have savings, that's an issue. >> we got -- we've got a problem in this country. >> any ideas alternative to myra >> 70 million, that's the ratio of getting a foxconn plant in your district. that's what it cost for 20,000 jobs. >> more palatable. let's get over to sue herera for a cnbc news update. >> president trump traveling to long island, new york, to speak to law enforcement officers in brentwood. he soon turned to health care expressing dismay that the senate failed to repeal

obamacare. >> approved health care last night, but you can't have everything, boy oh, boy. they have been working on that one for seven years. can you believe that the swamp, but we'll get it done. >> the austin, texas, police department is pulling nearly 400 ford explorers suvs from its fleet because of worries about exhaust fumes inside the fooeks vehicles more than 60 officers have reported health problems since february, and more than 20 were found to have measurable carbon monoxide in their systems. and it's a vacation nightmare on the outer banks of north carolina where thousands of tourists have been ordered to evacuate officials say a construction crew working on a bridge cut the major power line knocking out power. and for small business owners, this is the worst time of year for that to happen that is the news update this hour kelly, back to you >> so true have a great weekend, sue. >> thank you. >> our sue herera. uber is on the ceo search, and outgoing chief executive

jeff immelt is reportedly being considered for the job the impact immelt could have on irish, and if it's enough to rehabits image right after this.

my name is cynthia haynes and i am a senior public safety specialist for pg&e.

my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. welcome back uber has reportedly approached general electric's outgoing ceo jeff immelt about filling the ride-hailing company's top job immelt is set to leave ge at the end. year walter isaacson spoke to him at the aspen ideas festival back in june about the possibility of joining a tech firm. >> there's a lot like somebody like me has to offer in a place

like tech or health care or something like that, but as i've thought about it, really my foucs is going to do one thing well. >> so, in other words, take to scale a company that's either in tech or health that might need adult soupe vision or something, eric schmidt did that. is that the mod snell. >> that's kind of the model, and i like at all the change going on in tech, all the change that's going on in health care, and in some ways i've kind of experienced that and lived through that on my own, and i just think that there's a lot that i can offer to that, and i want to be purposeful. >> joining us for more now is jeffrey conn from elevate partners and greg benzinger. greg, i'll start with you, how serious and likely a consideration is this? >> it is a serious consideration. the company needs a ceo. they need one quickly. he is a proven proven leader

he's overseeing global operations and they are very concerned with having a name that they can present and so he's definitely on the table for them there are other names that is considering, but he's one that emerged. >> jeff, you had talked to us before what uber needs in its ceo suite with the issues of travis kalanick. does immelt fit the bill >> he's definitely a short list candidate. this is investors wanting to protect the prize and get this baby to aninio on your network mr. wonderful says it's always about the money and i think that the board thinks that they -- he can get them to an rpo and benchmarks with gray hair, a culture builder and knows how to lead a big global organization, but i see some risks here. >> you see some risks so you're not a fan of this, jeff? >> it's not that i'm not a fan i mean, look, don't have to look too far back in history for some

examples steve jobs recruited tim cook and that worked out pretty well. you'll recall he also had a dinner once with john scully and said, look, do you want to sell sugar water your whole life or do you want to come change the world with me? it was a great pitch but a terrible choice, and so let's just hope uber does a better job assessing the culture fit so, you know, i think they need an ambidextrous leader, somebody with capability and somebody with hard and soft skills, and i wonder if immelt is willing to roll up his sleeves like travis and get out there and get the job done and i'm just not so sure >> what do you guys think, michael? >> what occurs to me, if you see the range of names floated to the service, immelt, meg whitman, marissa mayer, all of these names very well-established, kind of on the back half of a career with the exception of marissa mayer it shows you what an awkward spot uber is in and in the unique position of needing a ceo for a very big company and still

in hypergrowth phase and still kind of informing itself so that's why i feel as if it's all over the map in terms of what kind of solution. >> the interesting thing you really actually want a fighter because all the battle -- >> travis was very good at. >> he was very good at fighting, not so good at some other things, but the company in terms of dealing with unions, politicians, things like that. for them to be successful they are going to have to continue to break the rules to some degree and jeff immelt is not a fighter, won't break stuff in order to get things done i'm not saying he wouldn't be good for getting an i.p. to market he'd be very good, you know, making people comfortable, but whether or not that's what you need to justify the 60 or 70 billion just anycation. >> let me circle back to you, greg, for one second what do you hear from the company that's looking for it. to get that filled with something reputable with an eye towards we knowwe have to go public pretty soon here, or to evan's point, are they trying to

get somebody who is going to be better at growing this company aggressively and getting past some of these regulatory issues? well well, it's just about everything that you named they need to get into an ipo they have all these investors who are waiting for this huge pay day and they need someone who is a fighter they have tremendous legal pressures. they have a c suite that's virtually empty and a vast labor pool that they have to deal with, so they are looking for somebody with really a big set of skills, somebody who understands global markets and labor issues and can fight back against entrenched regulations and -- and labor unions and so it's a unique skill set, but it's also kind of a -- an unusual opportunity to turn a company around and really make a name for yourself. >> what were you going to say? >> i'll tell you, kelly. just like a lot of searches, they are looking for a perfect candidate but i will say that you can be inspirational and

hard-charging and be a nice guy and have those soft skills look at brad smith at intuit or even younger up-and-coming ceos like garrett lord at handshake, so i think that you can be a nice guy and be hard charging and have those soft skills, and i do believe that those are going to be thekind of role models that you'll see from up-and-coming ceos, and i think people should emulate those kinds of ceos. >> all right great point. thank you both today and snap is meantime falling almost 19% from its ipo price. the first roundups next week and pouny?hat present a buying oprtityou're watching cnbc, firn business worldwide

welcome back another 1.5% drop for snap, down about 19% since going public the first round of ipo lockup expirations will hit on monday

julia boorstin is here with the details and how it could further impact the share price julia? >> reporter: well, kelly, we could see a set of flooding. first up on monday, 400 million shares will become available to sell from early investors. then on august 14th snap employees and insiders will be able to sell another 782 million shares, and thenanother 20 million becomes available at the end of august, according to jpmorgan now barclays anticipates a selloff around the lockup expiration saying it could create a buying opportunity after the fact but expectations are overblown. quote, we think investors anticipation of the event could be more impactful to the stock than actually selling from the lockup expiration. first in compare soviet republic, twitter shares dropped 18% on its lockup expiration day in may of 2014, while fak shares jumped 13% on its lockup back in

november 2012. snap directors hold 60% shares they are unlocking so the stock's move hinges hon what they decide and what message they want to send about their long term faith in the company. >> what message, i see what you did there. julia boorstin in l.a. for more on the lockup kathy smith is here with us and ben popper kathy, you were saying maybe snap didn't handle the ipo thing the best. >> i think snap is an example of how not to do an ipo voting rights for shareholders, i think it would have went when they went public to not have insiders selling 25% of the ipo. >> what's the more typical amount for that, by the way in. >> typically insiders are not selling on the ipo we want to wait until we see the shares absorbed into the marketplace, so there are -- and i would highlight that you --

you should meet investor expectations when you come out with your first quarter results. >> right. >> and we know that snap really disappointed when it came to growth, investor expectation so those things just were --public. a good example a good listen. >> and that said, they're out there now, for better or worse so, has a lot of the bad news been priced into the stock now the lockup, everything else, when this comes monday, could it be a kind of relief event to get passed >> when i look at twitter, it tells me that probably the answer is no we're seeing, it's very difficult to be a social network, app built around messaging with a dominant player with facebook, with instagram, which is cloning a lot of snap's best features and getting to bigger scale in a matter of months soild s so i would say there are a lot of scary indicators out there for snapchat still >> what do you think >> i think there's a chance, at least tactically in the short-term, kelly, that your point might hold, which is that

everybody has been overanticipating this lockup expiration the facebook example is a good one. that was a horrible ipo, it was botched. it was way down below its first-day price when the lockup expired. and that was basically the time to buy the stock >> the problem is, everyone's been hoping snap is the next facebook, and facebook is the is next snap. >> the other difference, i would say, i don't know if this makes a difference from your perspective, kathy, there is a strategic investor who bought at the ipo price, which is our parent company, for better or worse. >> which does reduce the float somewhat but let's remember that there's a determination that indexers are not going to include snap. that is -- >> that was a big one. >> that's a problem. and basically, the -- you know, there are issues -- we're in a gap. there's an air pocket. the company's not going to report earnings until august 10th and earnings for this -- well, lack of earnings, results for this company are going to be very important, because the results in the prior quarter did not make investors happy so there's going to be this -- a

very risky air pocket that we're in, until august 10th. >> and i don't mean to cut this off early, but we have some breaking news from washington. kathy and ben, thank you both. appreciate you coming over we'll get you that breaking news as soon as we come right back. we, the people, are tired of being surprised with extra monthly fees. we want hd. and every box and dvr. all included. 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 an all included package for $25 a month. and for a limited time, get a $100 reward card. call 1-800-directv.

welcome back a shake up at the white house. ylan mui has the details ylan >> president trump has removed reince priebus as his chief of staff, replacing him with homeland security secretary, john f. kelly. he announced this in a tweet, calling secretary kelly a great american now, obviously, reince priebus has been the source of some blistering criticism over the

past 24 hours or so. new white house communications director, anthony scaramucci, had some very choice words to say about reince priebus they had been locked in a power struggle clearly, it seems now that anthony scaramucscaramucci is ts winning that, with reince priebus now being removed from his position he was a longtime lead of the republican national committee, head of the rnc, an establishment figure now on the outs. we are still, obviously, digesting this information and we'll pribring you more as we h it, kelly. >> ylan, thank you very much ylan mui there's the tweet from the president, saying, i'm pleased to inform you that he has named john kelly by the way, the president about to deplane after making that trip up to long island to talk about cracking down on ms-13 he's coming back to washington let's bring in sara fagen, a former aide to president george w. bush. sar sara, we were talking about the last time a general was the last chief of staff this was a little bit telegraphed. "the times" reported that trump

apparently wanted one. now we know who it is. how capable is john kelly going to be for this role? >> well, he is a very capable person, and certainly somebody who is respected both inside the military and out and it's an interesting move, to go to somebody like a general who's used to so much structure. the military leaders rise in large part because they're able to adapt and lead very complex organizations and impose discipline in those organizations. so, at least on paper, i think this is a really great choice. whether he can succeed inside the trump white house, you know, remains to be seen >> sara, when's the last time -- i mean, can you remember -- that we've had a general like this serve as chief of staff in the white house? >> you asked this -- i was thinking when you mentioned that earlier, and i can't remember when we had one. certainly not in modern times. and so, i suspect to go back in history far enough, we'll find

one. but it is an unusual choice in that regard. and he always likes general kelly and he talked openly and praised him in the beginning days of the administration, that have certainly struck a chord together so maybe this will be a solution that works for the president and works for the american people. >> sara, you know better than i do i thought chief of staff was in many ways a political role, where you have to deal with congress, you're working on the agenda, and you're helping to get that done. is that true is that the kind of role that it is or is it something different in your opinion >> it's both i think, certainly, reince priebus did have great political skil skills, knew the party leaders, knew the party infrastructure, knew the grassroots. that's something that's going to be lost in this transition it doesn't mean that the new chief of staff can't adapt to that, and can't learn party leaders and know members of the

hill as close as reince priebus, but he doesn't know it today it's something he's going to have to work to figure out we will know military. he will know the national security council, but working, you know through the head of the congress to the heads of congress, and also, the other thing that, you know, he will not have and will have to learn, quickly, is the president is the head of a political party. and when you think about this move, now with sean spicer gone and reince priebus gone, there's really no direct line to the republican party in a leadership role certainly, steve bannon is not the traditional republican anthony scaramucci is a financier. there's no real limits to the republican party in a leadership job in the white house right now, at least a very senior leadership job kellyanne conway, certainly, would be the closest but i think that's concerning. and i think a lot of republicans are going to watch very

carefully, you know, does trump stay true to the people who got him elected to office? or does he veer into a different course >> yeah, i've already heard people joke he's going to show up as a democrat next -- >> i'm curious whether he put any conditions on trump before he took the role i mean, if you're a general, you want to know what the expectations are and whether you say, okay, no tweeting, or, no -- you know, because if i was taking the job, i would have placed some conditions on donald trump, even if he is president >> excellent point, sara, don't you think? >> yeah, that is a great point and i hope he did it i don't know if he did or not, but one of the things that you want as chief of staff is you want hiring and firing authority, you certainly want budget authority over the white house, because that has a huge impact on sort of who you can fire and hire and where you place them and if you didn't get those things, then it will be very difficult for him to make the

kind of decisions that he needs to keep the staff in line with his leadership >> sara, thank you for calling in appreciate it. sa sarah fagen. >> we'll let's "fast money" take it from here guys, thank you both that does it for "closing bell." "fast money" starts now. >> yes, it does. kelly, thank you so much i'm brian sullivan, hosting "fast money" in for melissa lee. obviously, we have some big, breaking developments out of washington, d.c. as you just heard the news, we are seeing reince priebus out as chief of staff john f. kelly is in as chief of staff. this just coming down literally moments ago. we've got a great group of traders here tim, steve, david, and dan are your team today. we'll talk about the market impacts from the d.c. dysfunction and also this breaking news in just a moment but let us go back now to get more detail, i