stock draft. i wanted to also, my take away from the show, corporate indebtedness that's something the governors warned about, so it's not just government debt. we need to be watching now, but it's company debt too. >> absolutely. great work out there, sara, see you back in studio >> thank you see you monday >> taking my glasses out of my mouth to tell you that "closing bell" starts right now i'm wilfred frost, and this is michelle caruso-cabrera the new york stock exchange. >> we have three components in focus today. ge, apple, nike. >> all on the move, driving the market action, and energy and rates also in focus. >> the biggest fine of the trump presidency for banks $1 billion for wells fargo all coming up on the "closing bell," don't move. >> good afternoon, everyone, kelly evans is out, and welcome, michelle caruso-cabrera, great

to have you with us. >> pleasure to be here >> the top story, apple weighing on the dow today, the worst performer in the index >> cnbc's josh lipton looks behind what's behind the downward move, josh? >> moving lower on heavy volume, down 4% right now. stock negative for the year now. one cause of concern here is morgan stanley now predicting weaker iphone sales in the june quarter, lowering the estimates to 34 million from nearly 41 million. the reason, poor checks with iphone suppliers, and weaker than expected demand from china. they lowered june estimates to 39 million from nearly 44 million. despite the down beat, they would be a buyer on weakness arguing that the services story remains in tact, and that b buybacks are a source of downside protection. one reason analysts are feeling

more cautious, for example, weak demand in the industry, but it's not just news from analysts, the journal out with a story today noting that apple's attempts to secure a second supplier for the high end smart phone screens reducing reliance on rival, samsung, hit a snag, that lg is struggling to make them and falling behind schedule. apple reports results here soon after the close on may 1st guys, back to you. >> josh, is it fair to say that bigger numbers downgrade today based off really just one supplier's comments about the broader industry they did not name apple. is it more than usual we go downgraded today >> what they said was they saw softness here in a very high end smart phone. right to say they never called out apple by name, but morgan

stanley thought the miss was in part to the cuts for the iphone10 processor see what they robert soon, wilf. >> thank you for that. >> apple ends down for the week, ge in the opposite direction, leading the dow in a stronger than expected first quarter results. >> morgan has more >> beating on the top and bottom lines, reaffirming earnings and free cash flow guidance some worried could be cut now aviation, health care, and transportation really fuelling earnings growth, but oil, gas, and in particular, power continue to be challenging with the ceo calling that power situation a, quote, multiyear fix on divestitures, management saying active discussions on multiple smaller aviation platforms, current and lighting, districted power, and actually ge capital in terms of a broader breakup. flannery saying all options on the table, reviewing a number of

structures, and should have an update in a couple months. lastly, growing concerns this could again be cut, i spoke with the cfo, jamie miller, saying, quote, we have no plan to cut dividends. takeaway, no surprises for investors. this is really an example of no news being taken as good news, and that, guys, is exactly why shares of ge are currently up 4% today. back over to you >> morgan, thank you very much for this for that, excuse me. a check on the dow components, nike as well, the wave of executive departures continue at the shoe company nbc confirmed three executives left the company bringing the total to nine over the last month or so. the latest exit pointed out by an analyst who said the exodus could be hurdle for the company's growth trajectory. up a third percent, not down today, but down a little bit in the last couple weeks, but still, frankly, near the 52-week

high >> reading this note, it articulates kind of intuitive. you have this many departures, people who went with the company for this long in such a short period of time, you worry about executing whatever the model is and the drivings and i know one short seller who says the one thing that is true about a stock about to go down sharply is when you see a massive amount of senior level executives leaving at the same time >> we don't know the reasons for each individual, but look back, in the note, breaking down who the individuals are, and looking at the titles, yes, they've been there a long time, but it's head of global categories, head of express lane footwear, chief marketing officer at converse, vp of inclusion. big positions, but vps, not top, top level executives, so i wonder, given the stock is doing well, bouncing back, and north america this sort of broader category doing well, whether

this is a buying opportunity off a couple percent they are not the top, top execs. >> we'll see let's bring in steve grasso, good to have you here. >> thank you >> do you look at any of the three dow components as something bigger to reflect what could happen more broadly in the markets? i think, for example, apple and the phone not selling as well, is that a china problem? domestic sales problem something -- >> yes, so i think that apple is everything to everyone everyone has some sort of a contact with apple, whether you're an investor, own the produ product, so everyone is my optic on looking for them to leave the mark they have not led the market in quite some time, but look at the long term chart on apple, you cannot argue that long term investors have reached the benefit of staying in and buying on the dips and holding it longer term. >> i thought apple was meant to diversify itself and no longer be just an iphone and not just an iphone, but iphone10, the

latest model that's the tradeoff, isn't it? >> it is, but it's still very, very heavily institutionally owned with a tremendous run for a number of years, and it's just one of those names that have to perform perfectly to keep that momentum going >> session lows down 270 points, and friday bidders here, steve >> friday jitters, and when you spri sprinkle in president trump talking opec, ratcheting up china tensions again, these take us down, but it should not be just totally dismissed when you look at the weakness in the chip space, and that's what has a lot of people -- first, facebook, interest rates, now chips, then tech >> talk about interest rates stocks falling today as treasury yields continue to rise with the 10-year hitting the highest levels since february. steve leisman is in minnesota who spoke with the fed president. steve? >> reporter: i asked directly

about that issue of rising interest rates, and he gave me a surprising answer. he said he was surprised that rates had not risen more, and his real concern was the very low spread, the thing you talked about the other day, michelle, the difference between the two-year and 10-year around 50 basis points, and he said he had some concern, very low spread, and the signal that the market was sending. >> i think it's a signal of caution, at least a yellow light flashing they say the term premium is artificially low and apple warrantee, you can't make a comparison to prior episodes maybe. every time they say it's different, it makes me nervous, and, again, i look at the fact that the committee's raising rates and yield curve flattens pay attention to that. i think there is information contained in that. >> reporter: worth remembering he did this stint three times on interest rate while voting last year not a voter this yearment sounded like if he was voting

that getting beyond, perhaps, the june rate hike would be something he'd consider not doing or raising rates beyond the initial hike because of the spread the fed may not want to invert the yield curve also talked about neel about trade, a big trading area, and he had concerns there as well. >> i hear about it all the time from businesses across the reason, export centric in two days from the board of directors and from a major construction company said steel product firms are raising prices because they can, because they point to the tariffs and say tariffs are coming, raising prices now now, although the tariffs have not taken effect yet, people are alarmed by this. >> reporter: you heard a lot of that alarm in the beige book earlier this week, across federal reserve districts. michelle, something to watch whether this very light spread when it comes to the 2 and the

10 is something that other fed officials embrace as a reason to, perhaps, go slower after they sell 295 on the 10 year, that it's time for fed, itself, so slow down as well, michelle >> steve, clearly, he was one of the main defenders and outliers as a voting member last year, not one this year, do you feel other voting members are moving forwards his position? >> reporter: i'm waiting to hear i mean, he came aways back from the center of the board earlier this year when he talked about the tax cuts pushing up growth and maybe wages having more confidence moving towards inflation of 2%, but recently, what happened with rates, rates went up in the way they've gone up is the new thing. to me, it's something that it only really signals recession at zero, but if it is, indeed, as you suggested, wilf, if other fed officials embrace thissed

idea that this is the market telling the fed that you've done enough, and others start hearing it, well, maybe we need to reassess whether the question in the market is three or four this year, and maybe more like two, three if that's the case >> steve, thank you very much for that thanks to tim earlier today, though, there was one sector in the positive it was banks similar to yesterday enjoying one of the few that could enjoy it, and negative as well all sectors down, selling off into the close, quite significant. does that worry you that sector is now within the path of selling as well? >> no. keep it in perspective two weeks ago, we were threatening the february lows, and we were at risk of closing below the 200-moving day average on the s&p 500 and below 2600. we held that level we held it again on monday then we had 100 point moves higher in the s&p. where we closed wednesday, just about 2700 now, the banks closed very well, they could benefit from slightly

higher rates they certainly were the laggard earlier in the week when the market rallied, and we just have to wait and see where this yield curve story goes >> yeah. keep watching it every day thanks, guys >> thank you >> steve grasso and steve anderson 49 minutes to go until the close, all major indexes weak to date we have fractional gains now for the dow and the s&p. the nasdaq is lower. also note, holding on to slight gains of the week, big selling 1.5% don't move, the "closing bell" is just getting started. next up, the big move for oil, jpmorgan's man on the commodities is with us next as president trump takes aim at opec plus, much more on the markets as we look at profits and protection as rates rise and where do stocks go now as many top market watchers say, we've come to a oscrs roads.

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lower by more than 1%, off by 259 points s&p's also lower by 2% there, declines 29 points, more than 29 points nasdaq, still positive year to date, but off by more than 1%. >> every sector is lower at this time as well >> a check on exxon-mobil, lower by more than 1%. oil's doing well so far this year, but today, in particular, not doing well >> it's also done well this week energy is a sector on the s&p down a full percent today, but coming into today was up 3%. sticking with oil, crude futures drop this morning after president trump tweeted, quote, looks like opec is at it again with record amounts of oil all over the place including fully loaded ships at sea, oil prices are artificially very high, no good, and will not be accepted >> you read the tweets very well, michelle i like it. >> just channelling my inner r y -- you know

>> very good afternoon to you, thank you for joining us, and, clearly, oil prices have had a decent couple of weeks the main reason for their rise, is it geopolitics and specifically syria-russia tensions in particular >> sure. i think as we see that markets have risen quite significantly on the back of, actually, i start with fundamentals. i would go ahead and say that if markets are try because we do have a very strong fundamental case here, and when you have a strong fundamental case, withdraws taking place, on a month by month basis and taking us towards the five year or the average that opec had in place, and a that point, geopolitical risk becomes more important, and they've come to the full as 2014 era, and that's seeming to be on the prices, and investors are getting in even more in terms of their positions and driving the

front higher on back of both fundment als an risk in it. >> up 1%, not a huge amount, last week, up much more sharply, military attacks over the weekend in between does that signal to you, perhaps, the geopolitical tensions peaked and are now on the way down from the peak of the geopolitical tensions? >> on the contrary i say i guess markets are trying to shrug off some of the geopolitical risk that got added as you said from syria attacks, but if you see risks escalating to which countries produce much more significant oil, be it iran or venezuela and those -- anything on likes of supply being disrupted from those countries is likely to push oil higher in my view to the $80 mark, so i think at this point,

we just understand the rising geopolitical risk, we have higher - >> on that note, i just assume that venezuelan oil production goes down, nothing changing in the government structure there improving it i mean, it's in complete free fall, discount that into the price. what about iran? there's a big catalytic point coming up, the president could decide he does not like the iran deal which could mean more sanctions back on iran and less ability for them to sell their oil. are you calculating that in? what impact does that have what do you think the likelihood is >> not at all, we are not taking that yet, and, in fact, that's why i said, if iranian situation was to escalate, and giving you the numbers there, we would see oil going towards the $80 mark in a situation now that brings us to the floor what the balanced market looks like in the case where you now disrupt oil from a very high producing country in the middle east, and

now, iran has said -- if you were to expect the sanctions extended, at least even if you were not to see oil rise to the levels of 2012 sanctions, some countries like, for example, japan, south korea, half a million, and they are likely to go higher than countries like china, and even to a lesser extent, india complies looking at disruptions still of hundreds of thousands of dollars of iranian oil here, which is very much likely to have a stronger support price in the short run right now. >> yes, $74 more impact than $40. thank you. 40 minutes until the close we are near the session lows in fact, we just came off them slightly, but we're down more than 1% for all three indexes. the nasdaq, tech sector leading declines still ahead, wells fargo hit

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welcome back, 36 minutes until the close. we are at session lows, down 277

points on the dow. tech very muchthe lagging sector today as well as consumer staples, down 2% financials, which was the only sector in the green was just holing off gains now, negative as well, and all other sectors are lower. >> a big weekend for spring home buyers with the season kicking into high gear, but rising mortgage rates could stall sales. we have that story in washington, d.c., hi, diana. >> reporter: hi, michelle. it couldn't come at a worst time, there's big spring events this weekend, and all the homes got pricier because mortgage rates which loosely follow the 10-year treasury yield hit the highest level yesterday out of march, breaking a tight range where they sat for a while bond yields are higher, and while the increase does not mean a ton in terms of monthly payment for a home buyer, it could signal the start of another steady rise which we saw at the start of the year, and

that take an emotional toll on buyers and sellers as well as rates rise, fewer homeowners want to sell and buy another home because they likely would be giving up record low rates in the 3% range to move and pay on rates closer to 5% the entire nation is in the midst of the supply crisis, and that is just pushing prices higher add higher rates, and today's buyers have to diagnog deep back to you guys >> wow, that chart is startlie i i -- startling. they have been used to low rates. i mean, looking at that, you can be at 5% quickly >> you could i mean, people started to get a little settled in the last month because rates really flattened out and buyers came back in the market you saw refinancers back in the market, but just yesterday and today, that sharp move up has people saying wait a minute, the lull is over and going back to 5. >> thank you very much for that,

diana 0lick in washington d.c. the dow is off 259 points, and s&p 500 and nasdaq is one of the weakest performers today as well still ahead, are your spring allergies worse this year than in the past? if so, you are not alone we're going to explain what's behind the unusually hard-hitting allergy season, and drug companies that are cashing in on your sneezes er> plus, a one billion fine ov mortgage loan and mortgage practices, and top securities attorney said it's not enough. that's when the "closing bell" returns. success is sweet. miracle-gro. three times the beauty. one powerful guarantee.

welcome back to "closing bell reques bell," 31 minutes until the close, a quick check in on the 10-year as well, because we have hit a high in yield terms since january 2014 2.956, a really stark rise in yields over the course of the week, and 10-year closed last friday at 2.83 now we're at 2.95. when do we hit 3%? we're at that point once again where people wonder when does that provide competition to stocks. >> affect anything as well, first selloff in the year,

because yields were too high, and we got jitters because yields pulled back, and we're stuck in between >> flattening yields, which is it do tell us, sue? >> oh, i wish i could, thank you, michelle. here's what's happening at this time, everyone the democratic national committee is suing the trump campaign, the russian government, and wikileaks for allegedly conspireing to damage the democratic party in the 2016 presidential race. it is seeking compensation for what it claims was millions of dollars in damages from russia hacking of the e-mails former president george hw bush greeting mourners in front of barbara bush's casket at the church they long worshipped together hundreds of people lined up for hours ahead of the event to pay respects her funeral will be held tomorrow prince charles approved as the successor to queen elizabeth. the queen has been its head

since her reign began back in 1952 this june, there's a handwritten working manuscript of "born to run," the bruce springsteen smash that became an american anthem and he was catapulted to stardome and estimated to get $300,000. we'll track that one for you >> there you go. >> favorite song of all time >> really is it really is >> oh, my god, so many concerts. >> i bet it goes for more than $300,000 we'll watch it for you >> another auction to talk about later as well. thank you very much. >> you got it. one point, though, on the queen and prince charles handover of the commonwealth, so long and impressive has the queen's reign been that when she took over they were not part of the commonwealth, but the british empire they did not have full independence yet >> oh, wow, good point >> i have to admit, i didn't know they had to choose a leader

of the commonwealth. when she took over, it was automatic. >> so he's the future king of england or - >> no, no, he's -- >> jump over him and go to the cute young couple? >> he's the king of england, but i did not realize ignorantly they had to formally pick the next head of the commonwealth, which they have done >> i thought you knew all things english. >> i know quite a lot, but here we go, here we continue. all right. let's head down to the floor where mike santolli is talking about black and decker >> here at post five, down all day, the tool maker did okay on the top and bottom line for the current quarter, but here's an interesting theme pointed out, concerning investors, higher commodity costs, steel, metals, and down to the company to be able to pass those along in terms of higher prices, and also other tool makers today, down, perhaps, snap-on and ww granger,

a districter of tools, so a mover all day, but down 15% year to date, guys. >> thank you very much, mike joining the exchange today, the portfolio manager and senior investment management, and dave, chief market strategist, and jim, managing director at tjm institutional services good to have you here. so it looked like everything was calming down, and now we're off again. farber, what do you think? selloff over or more downside from here? >> it's been a volatile year, and in general, it's fed rated we think that the volatility is followed by an uplift in the market as we continue to seek corporate earnings drive strength fundamentally and believe by the middle of the year and beyond that we should start to see an uplift >> david, this flattening yield curve, is it a real concern to

you or overplayed? >> overplayed right now. there will be a time to worry about the yield curve, but not yet. we look at what's the real retail cost for funding to banks, and we've seen after qe, with all the money stuffed into the banks, the reality is that banks are not fighting over each other over deposits at this time we have short term funding costs rise nearly as much as the two year would be, so we don't think the yield curve is quite as flat as people think it is, and there's a long lag before recession, so there be coming a time to worry, but not there yet. >> a long lag before the recession, so recession is coming in. >> in the last three recessions, typically, the flattening of the curve proceeded anywhere from 12-24 months, so i think there's a recession out there somewhere in the future. i don't know where it is or how quickly the yield curve will flatten. >> are you looking for a recession? can you find one >> well, the shape of the yield curve is interesting, and i pay

attention to it, but we have to remember, too, that it's been manipulated by central banks more than in the past, and it's funny to me when i see fed people looking alter them saying, well, the yield curve is off. are you kidding? you manipulated it for years by the way, when it inverts, and the inversion, not just the flattening signaling recession, but two years from the tame is a perfectly reasonable lag time, so as dave said, talking about a long time off. i'm more concerned, but the threats that jumped up quite a bit, now stabilized over the last few weeks, but i was more worried about that than the shape of the yield curve >> clearly, this week, u.s. deals have rose quite significantly, and meantime, yields elsewhere have fallen we have a chart of the british pound as well. big fall in the british pound this weekend, and also across the eurozone, not as impressive, and i wonder whether you think we are now set for a more meaningful uptrend in the dollar begin that yields rise here and

that rise expected elsewhere is not materializing. >> yes i expected it on the dollar for the last six months, and i've been dead wrong. i absolutely do now because yields rise and reasons they rise is our economic data is good, and retail sales number was good, and corporate earnings great, and sale revenue up 11% of the companies that reported so far this is going to be a blockbuster earning season and i expect the dollar to rally despite the fact it has not in three months >> that's where i was going. blockbuster earnings season. good so far considering more than 85% of those who have reported beat expectations, but next week is the biggest week. the most critical week thus far. we get through it, and is the market powering through that >> we'll get through it. we always do >> as a result, seeing earnings, market is where, do you think? >> we think the market is going to stabilize, and as i said, see how best corporate earnings

drive stronger growth, but, you know, as my funds, we have three growth funds looking for groed regardless of conditions and outperformed this year >> do you buy energy stocks at this level or easy catchup gains made already with oil prices gained >> you'd think they are attractive giving the fact spot prices moved up more than the names have i'm just a little bit worried about the spot price in reality. it seems to me like, yes, the markets are in better e kwquill lib yum, but our view is that oil would probably -- wti is range bound in the 55-65 range, upper end of that now, and i'd like to see more supply come ou before being more optimistic about the energy names >> okay. thank you very much. barbara, dave, and jim we got 43 minutes to go until the close with just slightly off the lows of the day, now down a

percent, bang on a percent for the dow. the s&p also down 1%, and the nasdaq remains the laggard, down 1.35%. wells fargo shares on the rise after the bank agrees to pay $1 billion to regulators to settle lending abuse allegations. some felt the fine could be bigger one litigated against wells, though, saying the bank is getting off light. we'll debate that coming up. and moving interest rates as discussed hitting long-time favorites like reits how investors could protect themselves

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welcome back, markets right now, just off the lows, only down .95%, and we've seen it more than that earlier

and s&p off by 1%, and the nasdaq off the low of 1.3% decline of 94 points at this hour it certainly feels like as we have seen the rise in yields move through the session, that has led to stocks selling off more as we head into the close >> yeah. this is that yield picture, 2.96, highest since january 2014 on the 10-year more how to protect yourself amid high rates and volatile markets, we go to bob pisani for etf options. >> it's higher rates, higher commodities, and there's very, very clear rotation. this is going on in april because you want rotation. you want what's going on here. energy and material spots. this is what it's about, the commodity play we keep talking about, and they are selling off semiconductors aggressively selling off consumer staples in two days, and retail to a lesser extent etf business exists to provide options in these situations. there's a lot of them.

these are the obvious ones oil and gas exploration companies, people out there looking for oil and natural gas. these are up about 12% as a group. the symbol is xop, widely traded and liquid hap, play commodities in a broader way, resources eft, investing in oil and gas producers and agri-business companies out there as well as miners, for example, up 4% on the month. how about timber i know it's not seeming like a rational idea, but it's used as a hedge against inflation. you can't buy timber directly etf, but can buy timber manufacturers like international paper, buying warehouser, for example, and that's also up about 4% for the month there's other places other than commodities, and an easy way is get in the variable rates business the big one here bkln, the power shares senior loan portfolio, and it, too,

going up noticeably. there's other ways to play it, too, there's people out who are shorting u.s. treasuries, shorting etfs out there, all exotic universe to get in this, and we'll cover that in the next couple days. guys, the important thing is, there are 2,000 etf products out there right now, and there's something for everybody in terms of the choices that they want. >> active managers say stop talking about etf options, bob >> we need them. >> 24 sub texts in the s&p 500, 23 are negative. only positive? the banks. because? >> rates are rising. michael santolli is here, rates pushing this around today. >> largely, yes. apple is not down 4% because of rates directly >> true, right >> the market is on the defensive. you can just make the observation in the last time we were roughly at this level of 10-year yields, 2.95 or so, two months ago in february, the market, the s&p 500 has not

traded appreciatebly higher than where we are now when yields were up in the zone. it seems like there's a push-pull there. now, corporate credit is fine. it's not acting up it's not suggesting that rates for everybody are blowing up, but it's just that much pressure on a market that's already on the defensive. >> talk to us about overall sentiments at the moment, mike, and look at the intra-day chart as well of the s&p, we opened low, but we steadily sold off throughout the day, and it doesn't look like a very attractive chart for a friday afternoon. >> no, it doesn't. we say right now it's subdued, right? it's not outright fearful and panicky, but we are, you know, 5% off the february lows, but i do think that there's a sense that the market -- the market remains a little bit twitchy, especially on friday, the fourth friday in a row, looks like we're headed for a down close, and one friday in there was a market holiday, so essentially, you had -- five or so weeks since you had a friday that was up as the market as a whole is

largely firm during that period. there's a gun shyness into a weekend, the way it seems. >> bob, ahead of a big earnings season, biggest one yet, big names, talking about apple and facebook et cetera >> yes weakness in two markets today, particularly in the consumer staples, again, where we have known this story all year, and about no pricing power, commodity inflation, and the brand recognition, brand value gradually diminished over the years. sitting at 52-week lows in a whole group of the consumer staples names, and there's momentum names you mentioned, fang names that's why we dropped in the middle of the day. if you look at netflix, up an intra-day, amazon, put up an intra-day of google. you see the stocks are lower in the middle of the day. apple earlier on was notably weaker on higher volumes, but look at the other ones, you see the group there, amazon, some of the netflix names there, apple's down all throughout the day, and

so what encourages me is to see rotation for the materials and the energy names the problem with that is the groups are very small, as you know, mike it's 3% of the s&p, and 6% for energy, and that's not big enough to offset the drop in those big technology names >> what's interesting about -- sorry -- >> no, you go. >> what's interesting about today, so the selloff accelerates. generally, historically, you would see yields come down >> right >> people buy in the treasury. that did not happen. that's happening at the same time yields rise odd, right >> it's a new relationship, it seems. actually, when the market was having its worst weeks of the correction, right, it was going down sharply, and the volatility index in the market was well above 20 for weeks on end, and where does it pull back to 272? i mean, in past phases of the bull market, you would have had a massive rally in treasuries, yields would have collapsed. it did not happen. if nothing else, it's a higher

range for yields >> mike, quickly, energy has been one of the supports as of late, same with materials and commodities, but the fact they are dragging down as well today. >> yeah. >> all 11 sectors lower. no support out there >> well, not from there, no. i do think it's really more taking a pause than anything else, and i'm not saying, oh, it's over for the energy trade, but, yeah, essentially, you know, wti, what is it, up .09 for crude. it's not as if the commodities are racing away and stocks are down i think in general though there's a blanket of selling over the broad markets >> they had a huge run you want to -- this was the key story today, the ceo came out and said, oh, prices are going to go up because the supply is con stricted, and unless they produce a lot more oil faster, we're going to go higher what we want to hear next week, conoco phillips, exxon, and chevron are the guys who would do the capital spending and go out and tell

we'll know next week >> hope you get the capacity >> dying to have it. >> good numbers as well, though, today, near the top of the s&p 500. guys, thank you very much. >> okay. >> bob on the floor for the close in a few minutes time. we have got 11 minutes until the close. we are below a percent lower for the dow and s&p. nasdaq's down 1%, and dow was down 290 for the low of the day and now 250 as we approach the close. we're right back $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe.

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now you can get it, too. welcome to the party. welcome back to the closing bell where live in washington there's news this afternoon of the u.s., this is department of justice, opening an investigation of at&t and verizon over wireless collusion claim. this was in the "new york times" saying the justice department is looking into potential coordination by at&t, verizon, and star communication standards organization to hinder consumers from easily switching wireless carriers again, "new york times" says this is according to sources, people knowledgeable about the investigation. at the heart of the investigation is the belief that

biggest wireless carriers working secretly tried to influence the mobile technology to unfairly maintain their dominance. at&t and verizon to the control 70% of all wireless subscriptions in the united states, representing thus far at&t and verizon and the justice department are not commenting on the investigation. back to you, wilf and michelle >> thank you very much for that. down 4% for the stocks there >> can we see an intra-day, guys, to see if the news is moving them? this is a down market, so to see them off by 1% does not necessarily mean anything. >> yeah. there it is. >> for sure. >> most of the moves, of course, possible consolidation in the sector, likes of the story, and they make that all the more less likely, right.

looking at other stocks to watch today. >> coming up, first tesla. had a really rough run, questions about whether or not they can produce the model 3 out of issues they had, and it does not consider that, look, all of these other guys, the bmws, audis of the world that other people want to drive we heard the argument before still, it comes in a time when, clearly, the sentiment has shifted so dramatically on tesla, right >> uh-huh. >> amid the stock you couldn't wait to buy, and now it can't get out of its way >> bad news as of late, down .3% there. i think barclays today, already, closing in london trade, on the news, just the ceo is escaping with a probably $2 million fine or so or a little bit less for that whistle-blowing issue that's been on running for a while, seen as a win for them, another win with the doj, the mortgage-backed security issues, only $2 billion at the end of

march. two wins for him, but, one, still fighting for overall performance of the bank, spin forward their earnings next thursday, and interesting thing about the banks in the last year, valuation of barclays, .7 times book, the u.s. names, close to two times book, so, you know, the fact they got that exposure in the united states, some people might look whether they get the issues behind them, whether that can be a bit of a wind in their sails. wait and see earnings big thing to watch next week on thursday, but off about a half a percent from today. >> all right up nec, coming right back with a closing countdown.

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welcome back, about two and a half minutes left of trade for the week with now down 214 points on the dow, around a percent just more than a a percent, of course, for the other indexes, nasdaq the laggard of the day looking at the intra-day chart of the s&p, a bad session for a little bit of reprieve as we approach the close in the last half hour, coming off the close of the last of the day, dow at 288 and let's have a quick look at the sectors because all of them are lower, and financials higher for the sessions, not anymore, and consumer staples and tech near the bottom half screen and movers, apple, of course, the tech name weighing down on the sector, and jpmorgan is down despite the rate picture, banks not really

playing into this down a little bit, in fact, general motors, not jpmorgan, but anyway, general electric topof the dow and some of the energy names performing up 1%, and let's have a look, though, in the sectors for the week as a whole as we bring in bob pisani because despite today's session, bob, we are higher for the week. >> yes >> only by two cents or so, but there is a performance picture for the week as a whole, and some of them outperform nrenergy and industrials issue and today's and yesterday's selling, now higher >> that's right. there's a commodities play we talk about energy and materials are up there, decent numbers on the industrials matters. we had weakness today, i point out, largely because in the fang names, not just apple. apple weak right at the open, but netflix and google all weakened late day, and that's a problem. i do think it's a little bit of an issue that they constantly are selling consumer staples, and this has been a story all

year these names are down 20% on the year, and all at 52-week lows. we know the story, thin margins, no price control it's keeps going on. >> big earnings next week, bob, thank you very much for that there is the close off the closes, down 200 points on the dow, bring ringing the bell here level one, and down over 200 points. michelle and welcome to the "closing bell," i'm michelle caruso-cabrera, this is how we finished the day on wall street. dow lower by, as you saw, 200 points, finishing a decline of .8%, and the s&p 500 did go lower, 2670, and nasdaq lower by 1%, and russell 2,000 off

two-thirds of a percent. joining us today, cnbc's commentator, mike santolli and mark and topping the dow this week is american express will ibm trail teches winning on the s&p 500. philip-morris the laggard as people smoke less. mike, starting with you. apple is a big focus today >> yeah. >> a lot of concerns about the phone. should we extrapolate more to that worry about china? worry about the domestic economy seeing weaker iphone sales because they are so a part of the lives? >> two, three months you get a report that supply chain is sending signals, apple takes a hit. what i take away from the last two days in apple, the fact it's 10% down from the high or so, i that the market is receptive to

the slightly less positive headlines on big take. i take it as the reverse leadership has wobbled a little bit, so it's not a macro story other than the automatic growth of big tech is now more largely in question. the market in general is just -- it's on -- back on the heels is how i put it >> evan, do you think apple sold off at all because of the data privacy issues that we had from facebook over the last couple weeks, or pure and simple, scares of iphone sales >> i think it's the latter i think it's the market's recognition it's a maturing business i mean, apple is becoming a very mature company you're at iphone 10, the product cycle, the improvements are getting much more marginal, the ability of consumers throughout the world pay $1,000 for a phone declining or the desire to pay that for a phone declined, and there's no silver bullet apple is not going to invent the

new phone to create a new jump so i think it's just recognition that you are dealing with a mature market. >> that's interesting terminology, the mature company, so you sort of seller of this on a one, two year view opposed this is one quarter of mixed numbers. >> no, i don't -- i tend to look out a few years, and i think you may not remember, but going back probably 15 years or so, microsoft had a period where the stock did not go anywhere, and stayed at 25, and it was not that it was too expensive or too cheap, but recognition that it hit a certain stage of maturity before getting growth back i'm not saying the apple stock is not going to go anywhere for ten years, but accept the idea that these companies, they are not going to grow 30% every year amazon's not going to go up 50% every year >> and apple's story, a larger story about the markets? worried about sales in china, when you see the numbers brought down by analysts today, 5 million, i mean, big cuts in the

expectations do you worry, is that trade? do you worry the chinese are boycotting do you worry chinese markets are slowing down >> i think right now it's a little bit of everything i think they are looking at apple, and it's having a good run up until a few weeks ago, and i think you're going to see that it will not be a blowout earnings as we've seen, but it's a multiyear story. selling now because stocks had a big run, that's fine if you want to own the stocks for three, five years, and it's still no. 1 in brand and no. 1 in consumers' minds, and it's really growing itself on the software, let alope the hardware side, you still want to own the stock. >> one thing i think david should keep in mind, at some point in the coming weeks, apple's going to detail what it's going to do with the 12-figure number in cash >> yeah. >> okay. so $100 billion or thereabout, going to detail it, not saying it's a major catalyst, but another part of the story.

>> could be the catalyst >> right, never know >> one-off special dividends >> that reenforces microsoft analysis >> exactly >> the big story of the day is rates, ten-year treasury rate hits 3% today, and for more, we are on the phone, head of interest rate strategy, michael schumaker. 2.95, why? >> caller: a few things stand out. number one, u.s. treasury issued a lot of bonds, there's a lot of supply of the corporates, secondly, and, number three, fed argues for hikes recipe is higher yields. >> michael, those three factors, i understand, but they have been present for the last few months where we did see some highs close to where we are, and we came back to 272 again, what happened in the last week or so that's taken us to meaningfully and marketedly higher? >> caller: they intensified.

the commentary from the fed is an accumulative effect reduction speeded up this month, and when you consider every comment out of washington in the last few weeks argues for more supply, you got the cbo talking about the growing deficit, they are all bad for bonds, and that's why the levy's broken a bit with respect to the 10-year. >> tell me, what's to worry about more, michael, one day, i worry about rising rates, and next day, i'm told to worry about the flattening yield curve. i understand they can kind of co-exist, but there's two stories. what is it is it 10-year going up a lot, or is it not? are we going to be worried about a recession? >> caller: we think the curve will not invert any time soon. we would be very surprised if it happens this year. we get a lot of questions about alongs lines of, does the flattening curve mean recession's around the corner? i think the answer is no if you think about the length between yield curve and economic

future, it's broken by banks like the fed having massive bond portfolios, and days of your pre-crisis, that was different, not now. >> tell me this. i know you're a bond guy, interest rate guy, but you got equities guys there too, and women at wells fargo as well, but at way point does the ten year start to provide competition to stocks, like how frightening is 3% or 3.5% or 4%? what's that tradeoff between when i can say, gosh, i get x percent risk free in a tenure, why buy stock x yielding whatever >> caller: i think that's starting to happen now i talked to a lot of clients over the last few weeks looking at products with credit equities, you name it, and one thing they mention siconsistenty is not even just the 10-year, but short maturities, the 2-year, that's better than the yield on the zs&p, highest in a long time, and if you sit in short term treasuries for a while and not take risk, that sounds okay. so i think that you really got

this dichotomy now of stocks offering yields and bonds looking better >> yeah. that would explain a lot where we see multiples compressing in the market thank you, good to have you on >> any time, thank you minneapolis fed president, neel kashkari >> thank you very much this is a tale of two markets, the stock market, he's not worried about, and second, the bond market, which he is starting off with what he said about stock market and stock market valuations. >> just because stock prices are high, does not mean a correction leads to a financial crisis. there's doebt under the housing market we look everywhere we can for signs of potential financial crisis we're not seeing bright red flashing rights there's a crisis coming we see that at valuations that are stretched.

>> but not necessarily stretched to the point where they have monetary policy. what could effect it is what's going on in the bond market. she's surprised that the higher. the concern that you mentioned of higher rates and compressed threat is with the compressed threat, is low amount of space between the 2-year and 10-year this is what they said about that >> i think it's a signal of caution. it's a recent yellow light flashing they say term premiums are low, you can't make a direct comparison, but maybe, but every time they say this is different, i'm nervous about that, and i look at the fact that the committees been raising rates and the yield curve is not flattening we have to pay attention to that i think there is information contained in that. >> the yield curve is not inverted now, but the fed could potentially invert it. look at the probabilities about a 90% probability of a june

hike, a probability of one in september, and now the markets more and more thinking about that december hike, 32, 34% chance of a hike in december another 75 basis points on the short end, michelle, that could potentially invert the curve >> yeah. exactly. we had a lot of people talk about that, and what that would mean to the remediation of banks, et cetera thank you, steve guys, i have to ask you, michael on earlier brought up a good point if you get 2.5% in a 2-year, why bother buying anything else? >> takes away one category of investor who is the buy stocks as income proxies. i think that, honestly, the bigger, more direct effect with rates going up is not so much that person sitting at home, deciding to switch their portfolio around, but it's the fact that it's higher funding costs that works its way through in very leveraged corporate sectors, so companies have a lot of debt. it flows through there, and large positions at institutions are financed in the short term

debt all of the it just compresses the willingness to own riskier assets at the margin, and that's the main story >> i have a little different take than michael on this point, and we've been fighting over this for a long time you can get now in a prime money market, vanguard or fidelity, get 1.8% now for a money market that's an account you go write checks out of it in longer term bonds, it's year to date loss of 6%, or higher depending if it's corporate or not. that's real money. people are not used to getting losses in the bond market, and i think at some point, it affects the psychology of both institutional fixed income investors and retail fixed income investors, not just the flow-through to the economy. people act on the facts they are incuring losses. >> we've not hit 3% on the 10-year since january 9th, 2014. do you think that if we did cross that level it would spook

investors weather in the bond market or s&p market >> we've become close, but like you said, we have not been there in a long time i don't know if we are sang wean about rates, but in an era of low inflation and low rates for a while. i'm less worried about a 3.5% or 4% ten year, and we settle in here good, and i think once we see that settling in, i think the market's going to go back to being where it's been, constructive over time i think that psychological level of 3% probably will create some pause in the equity market, but i expect that to be short lived, and the growth of the equity names that we like will continue, and i expect that through the rest of 2018 >> i don't know. for what you said, evan, about the 1.8% i mean, i remember grandmothers getting into hot yields because they were desperate, so every time this yield starts to rise, you siphon off all marginal people in desperation who went to places they had never been before >> it's a volatile market. households withdrew money from equity the point is not that that

happens or should happen or good or bad, but it's not the principle driver of the market there's people sitting at home swapping between money markets and stocks that are not setting the price. >> that's the principled driver of stocks in ten years has been a wicked cheap money that switched people to do it than otherwise would. >> enabling companies to - >> to be both. >> leverage and feel growth and buy back the stock and do the rest >> can it be both? >> sure. >> comments this week -- >> point is that if the rules of any other period in time apply, the gap between where stocks trade valuation-wise and where corporate debt trades right now, it is not extreme. in other words, valuations are are neutral relative to where bonds are, and if you have premiums in there for equity risk premiums in there of previous eras, then we're not talking about that because rates can go up a lot without it affecting stocks we don't know. that's the thing, we don't know

that it applies. >> in the last month, the eurozone not as strong and comments in the bank of england governor this week that suggests they are not hiking rates as aggressively as first thought. is the u.s. standing alone in terms of rising rates, and what's that mean about the dollar >> i think the most amazing thing is when neel talked about before, he wants to believe that, you know, you can resignal from the bond market, global bond markets as you would in the past i think the ecb's action that mario draghi's dovish comments today is that you can't read it as you did previously. what you say specifically, if european rates were higher, u.s. 10-year would be 4% right now. i think the only thing dragging rates down is what's going on in europe, and that's why we can't tell what's going to happen. european growth disappears and bonds yields stale extremely well, u.s. rates stay low.

i just don't know. >> thank you, all, very much we'll continue the discussion a bit later. steve, thank you very much, mark leeman from jmp securities, thank you, evan and mike stick with us. the trump campaign was responding to a lawsuit filed by the dnc over the 2016 election, and ylan has the details >> reporter: president trump's campaign manager released this statement calling that lawsuit a sham lawsuit about a bogus russian collusion claim filed by a desperate, dysfunctional democratic party they allege both the campaign as well as russia and wikileaks interfered in the dnc's 2016 presidential election, and president trump said if the lawsuit moves forward, they plan to use a discovery process aggressively to ask new questions about hillary clinton's e-mail server as well as the bernie sanders for the democratic nomination, but, again, the campaign calling this

is frivolous suit, and, again, the trump administration now being involved in get another heated legal battle. back over to you >> got it, thank you a lot more ahead today on the "closing bell. next up, battle over the bank wells fargo slammed with a major fine $1 billion did they deserve it? are they a scapegoat what's the impact for investors? plus, the big shocker about legalized marijuana. and whether your allergies are bad or not, see how you can profit from what many say will be one rough season. the closing bell live from the new york stock exchange returns in two minutes play "do it like this".

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wells fargo's stocks up 2% today despite announcement that the bank has to pay a $1 billion fine for mortgage and auto loan abuses >> things like that, quickly before discussing why the stock is up on the news, certainly, they pointed to this in the earnings release so priced in, but back further when the fed surprised everyone with the

unprecedented and delayed punishment on them not being able to grow their assets, i think the fear out there was, will this spark the others into further action the fed has made a big late statement, will it spark the likes of the occ to take more action, and, indeed, it has, but the action has not been what people expected, and that's why you see the stock up now 2% because people think, oh, okay, what other punishments are left that we can face there's not much out there >> is this $1 billion less than expected >> i think it's the fact it's now confirmed it's behind us >> done, got it. >> and they have done, the fed has done a lot, what else can punishments be that's why the stock is up either way let's discuss. thank you very much. starting with you, if i may, is this punishment enough or should there and could there be more? >> no, i don't think it's enough look at the firm, 22.5 billion net income, a $1 billion fine. that's 2.5%.

it's extraordinarily furious what wells fargo engaged in. i'm not antiwells fargo, but the executives and boards of directors were responsible for this, and i don't think the actual fine fits the crime no mistake about it, it is a crime, and i think to the extent you don't have senior executives going to prison, you'll continue to see these sorts of abuses going forward. remember, this is post-2008 when supposedly the train of horribles were over, but they engaged in serious conduct, and it's paying a fine, and it is the shareholders left holding the bag. >> andrew, andrew, andrew, always so predictable. chris, isn't the shareholder just paying the bill >> the shareholders are the victims. your colleague is correct. officers and directors escape because regulators don't like sanctions officers and directors. that's what the feds should have

done, rather than wait a year and saying they can't grow bank cfos would love to get smaller and returns would go higher they are doing them a favor. most of the banks are funding they don'tment i want to get rid of it, so, you know, the pay in a pound of flesh, move on, wells has been a discount to its peers. it's normally a premium, so, you know - >> but we -- >> i understand, i understand, hold on, andrew, chris, i understand your point to saying it's time to sort of move on overall, but were you partly agreeing with andrew there that some of the executives, perhaps the original executives opposed to the executives now should have been punished more? >> well, yes, i am, but it needs to be said the fed is responsible for this, and they are the ones, the accountants, all the bank mergers, sammed wakovia into wells fargo because they don't want another bankruptcy in a bank holding company. citi wanted to buy just the banks and put the patient company in bankruptcy. they did us a favor, but, you

know, the officers and directors are responsible, and when they are being stupid - >> so do they go to prison >> yes >> answer the question i know what you think, andrew, hold on, one second, and i'm going to get to you, don't worry about it, but, chris, should they go to prison? >> yes >> oh, wow >> yeah. and you know me, i'm very, very easy when i come to criticize big banks, and they do this all the time they have one-time extraordinary losses that occur every once in a while, and that's why returns are in fear, but wells historically has done stellar returns, and i think, you know, for investors, yes, the blitz is over, looking at a 1.4 times book, discount to jp, like, duh, as i said to linda before the show, tell jimmy cramer to back up the cayenne and take some stock certificates home this weekend, okay? >> andrew, you feel better he

agrees with you? hardly a debate if you think they should go to prison >> someone finally agrees with me, my shell it's a good day. i just need you to agree with me, and i die a happy man. >> they made mistakes. they'll address it we went through the passion play the regulators put on every time this happens, there's hearings, public flaoutcry, and the fed is responsible for this, and they don't know what to do. if another bank is in trouble, they can't slam them together. they can't do that anymore the fed may have to deal with the situations proactively in the future >> andrew, closing comments. >> yeah. look, i just think there's a lot of people that think right now the markets are rigged, and post-2008, i think you really have to come down tough on banks, specifically, executives. you don't want shareholders left holding the freight. i don't think this sort of activity has the prof lactic

turn and impact we have so we don't remain in the "ground hog day" movie >> thank you for joining us. >> thank you have a great weekend >> i would say the fact that the stock is up 2%, i've come back to that, shows people think this is largely behind them, and, clearly, we have no criminal grounds. >> no. >> so -- >> despite their wishes. >> andrew's wishes, and stock's up 2%, and the issue for the stock going forward is can they perform on the underlying numbers, which they failed to do, by the way, and earnings friday, particularly on the expense side, and the expense side sees issues all it fall away? >>nd energy has been the best performing sector this week. coming up, we'll get the fast money trade on the power play. i. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges.

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ai ready. secure to the core. the ibm cloud is the cloud for smarter business. welcome back, and julia with a news alert the justice department has opened an anti-trust investigation into at&t and verizon over collusion to make it hard for consumers to easily switch between carriers. this according to the "new york times" report just posted. the stocks hit fractionally, and the doj reportedly issued demands for information on potential collusion who together control 70% of the u.s. market as well as the gsma, a mobile industry standards group the doj investigating reportedly whether these organizations and companies colluded to block a technology call that is

supported by apple, google, and microsoft, designed to allow consumers to quickly switch wireless carriers without inserting a new sim card this was opened five months ago following complaints at&t is around under fire by the doj currently battling for anti-trust approval of the time warner acquisition we've reached out to verizon, at&t, and the justice department and have not heard back from them yet back over to you >> all right, very interesting, julia. what's interesting is collusion's usually about pricing, but this is about regulatory capture and regulatory - >> by the way, this is -- it's amazing to me it took them this long to come up with this case as you know, in europe, they have had -- you had the ability for -- since i lived in london 20 years ago, to basically switch out sim cards easily between devices. the united states has really been a laggard in this area. >> more plans and more competitive, as well, already, a

small set of options for the u.s. consumers marijuana sales in california coming in at 11.5% lower than the state projectsed. they say that 339 million dollars in the golden state on legalized marijuana in the first two months after it was legalized. >> we are live in denver, good to have you here, is pot going to be as big as alcohol? >> we really believe so. i think so much of what you have to see happen before that, though, is both education and science has to catch up to the market you are already seeing a 15% decline in markets where marijuana is legal and alcohol is controlled. >> are you disappointed by the sales numbers in california? where are they not measuring up to expected there? they were looking for more revenue. is than an early signal maybe thesis is not correct? >> no. what you have in california was a huge regulatory shift on january 1st. basically, what happened was the government rewrote all of the

laws effective january 1, so what you have was well over 3,000 dispensaries are operating at the iend of last year, and th number of q1 this year was only 300. we had a huge dropoff in the quote-own-quote legal sales reported back. this is a result of regulatory shift. >> so, i have a question about commoditization of the business. do you expect the industry to evolve the way the alcoholic beverages industry evolved with product lines and branding, itself, or just basically become more like the tobacco, more like a commoditization, maybe not with as much branding and drive prices down to the point where it's difficult to make money in the industry >> we don't think -- in fact, we actually would like for the price of raw marijuana to come down because we are believers that the margin, like alcohol, is going to be captured in the end product, so you don't

necessarily know the price of grain or potatoes going in the vodka or beer, but you know the price of the beer, and there's tremendous margins to be captured when you make products for the end user we are of the mind set, specifically in canada, there's a massive undersupply through 2020 because of the amount of demand that the new products and both recreational and medical new use cases that come to market >> some of the marijuana stocks out there have had tremendous returns in the last year or so it's a story people got very excited about. is that all on hope or fundamental earnings underneath the stocks or a pe ratio of the top names you like >> well, the pe ratio now is huge in canada with a step function that market dynamically changes when recreation is implemented. recreational marijuana in canada played in an voted on and implemented sometime this summer and we expect to see a massive shift higher look at names we own,

specifically like canntrust, that's attractive to us, growing 100% plus year over year, so the valuations now on a 19-basis are starting to look incredibly compelling you can't use 17 numbers because the growth rates are huge, and you do have a true binary shift with recreation implemented. >> sean, you mentioned a couple times about different types of products likely to come out, and, of course, the medical side of things, and one of the things, where do you see that going? i do see a lot of tension is on, you know, cannabis as an ingredient, as a compound that can be adaptable as a lot of different ways for therapeutic uses, not just for the current medical uses >> sure. so here in denver, colorado right now, and in colorado already, 80% of the marijuana market is non-flour products, so you're talking about vpes, oils, edibles, topicals.

sprays, various things, all of the stuff is coming, and as science catches up to marijuana, you'll see more and more of those end products, and then you look on the other side of it, the cosmetics piece, and some of the more luxury items. we invested in lord jones, a private company, and look online at the quality of their products, these are ldmh type products that -- you can't keep them on the shelves. >> wow okay never heard of it. >> what's an ldmh? what is that type of product >> we have to go on the website. we ran out of time >> sean, thank you >> thank you very much for joining us, and i don't want to discount sean's points, but, personally, i'm looking forward to a beer this evening >> wilf, what's a bufle? >> maybe sue knows >> i do not know >> tough questions today >> i do not know, michelle

if i find out, i'll let you know here's what's happening at this time, everyone defense minister james mattis warns syria president assad to think twice about using chemical weapons in the future making the comment in a meeting with japan's defense minister at the pentagon >> there's been full support for that regrettable, but necessary attack on his research and engineering part of his weapons program, weapons of mass destruction. he's ill-advised to ignore the international community's statement, and we stand ready to address anything in the future the u.s. apple association is pushing back on the environmental working groups top five foods that they say are the toughest to clean. they say the amount of pesticide residue levels found on fruits and vegetables are vastly below epa's strict tolerances and do not pose food safety concern and fields of bright colored tulips erupted throughout the

netherlands countryside. more than 7 million tulips, daffodils and more have been planted in one park, and it will be visited by a million people the season lasts for about eight weeks. and it is beautiful. i have been. it's worth the trip. so gorgeous. back to you guys >> thank you >> and not as expensive as they were back in the day there much like bitcoin is not as expensive as - >> i say tulip mania >> the supply's not restricted keep planting more >> you can >> you can look at the tulip, but not at a bitcoin >> you can steal a tulip, but not a bitcoin. apparently you can't.-- anyway,e digress. breaking news from southwest airlines, phil lebeau. >> caller: this is coming to us from cfm international that is the joint venture which is owned by general electric and

its french counter parts, and this is a service bulletin issued to all airlines with a 56-7b engine, the engine that failed on the southwest airlines flight earlier this week this service bulletin basically tells airlines you're going ultrasonic inspections of every single fan blade in a particular set of engines, and it has to do with how many cycles the engines are used, those that are older that have up to 30,000 or have 30,000 cycles already, and there's 680 of those around the world. they have to be inspected in 30 days, 150 of them, by the way, already have been inspected since this incident earlier this week, and then you have an additional 2500 with 20,000 cycles, younger in the life cycle, they will be inspected by the end of august. this service bulletin was widely expected by the airlines and in

the aviation industry, and what we will likely see, either later today or in the next couple days is an airworthiness directive, essentially matching this language coming from the faa, and that'll codify it and put it in writing in terms of what airlines have to do in terms of making sure that all of these engines that are still in use around the world have fan blades that do not suffer from metal fatig fatigue, and that's why they have ultrasonic inspections done on each fan blade of the engines on these aircrafts guys, back to you. >> how costly, phil? do yes expect airlines trading down on this because they take planes out of circulation, or anything like that >> caller: the cost really comes down to if they have to replace fan blades actually, doing the inspection takes about four hours, and they will not have to move the aircraft into a special facility they can do it fairly quickly. the question becomes if it's widespread in terms of

replacement of fan blades. >> okay. got it thank you. phil le bbeau on the phones oil prices rallying 8% over the last month up next, fast money traders talk whether it's too late to get into the hot energy sector back in a couple minutes who wants a donut? it use to be everyone had to be in the office. we lacked the technology to be flexible and productive. then cdw orchestrated a collaboration solution for us.

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welcome back, i'm julia with an update on that "new york times" report that the justice department is investigating collusion between verizon and at&t, and we just spoke to a source close to the situation who confirmed that "new york times" report and told us that all four carriers, not just at&t and verizon, but sprint and t-mobile received lerts of investigation from the justice department back in february, and that those close to the situation say the doj previously evented this very same issue back in 2016 during the obama administration, and then closed that investigation now you see the chart of verizon and at&t and t-mobile trading lower, sprint marginally higher. at&t said no comment on the issue. back over to you >> julia, thank you very much for that meantime, energy best performing sector this week. >> yeah. joining us now to discuss the fast money traders, tim and

brian, what do you think, guys, time to get in >> if you think of what energy did over the last few days relative to the s&p, it's starting to show a change. in terms of where i think, you know, headline oil, brent prices, crude prices, whatever blend you're tracking, i think if you blend it -- face is against the dollar, oil is cheap to the dollar here, and oil goes 85 depends where the dollar is alone, but, yeah, energy prices hold up. >> oil services well, weak today, but haliburton has nice numbers. >> i'm with tim. get into oil here and the energy sector, and think about it worked two out of the three scenarios we could have. economy stronger, energy is better because of the demand there. stagnated, we should be all right or get a weaker dollar, that helps out, and the only place it doesn't work is with a recession. we're far away from that right now anyway i think of all the sectors out there, energy, for me, is the

bester one >> uh-huh. tim, surely geopolitics, supporting oil prices is not likely to get much worse from here, and if that eases, prices come back? >> you can make an argument, $4, $4 a barrel is in the oil, and how supply disruption fears work now in a way they were not in the bottom of the oil market when oil was really suffering because of as brian talked about, people were concerned about an impending risk that never happened, and, of course, the dollar was strong. i think the dollar's range bound, and interest rates are going higher because of the global economy that is heating up, and the other good news for equity holders within the sector is i think especially the etn names run businesses much more for equity, you know, capital returns, as they were four, five years ago when it was about growth at any cost i think the industry is enormous or much improved efficiency in capital discipline at this point, and that's one of the reasons why equities start to perform. >> thank you very much we'll leave it there, tim and

brian. >> be sure to catch "fast money" tonight. hedge funds saw mixed results. coming up next on the eve of the stone conference, we check to see how some of the big names that the hedge funds gathering have faired with the pictures from last year >> and daniel craig is shaking and stirring things up the james bond action,eang hdi his own piece of the secret agent's legend up for grabs. details of that coming up. starting a business is expensive. that's why many entrepreneurs rely on their own personal property, like their car or home computer, to help them do their work. but they might not know that those items may need special insurance to protect against costly damage, theft, or liability on the job. trusted choice independent insurance agents represent multiple insurance companies and customize coverage so business owners can focus on business.

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if you got $600,000 lying around, you could be the owner of james bond's car, no, not the actual james bond for the movie but the actor who plays him, onyxing off his personal limited edition vanquish of which only 100 models were made his vehicle, which was given to him by aston martin is no. 7 or 007, and all three proceeds from today's sale which could reach $600,000 is going to charity aston martin has been featured in many movies, of course, beginning in 1964 with "goldfinger," that was not the first one, but - >> right >> i'd love to have it >> you'd look good in it i don't know that i have the same look as you and could pull it off >> i don't know that any of us could do $600,000 on a car >> for a charity, not a baby on

the way. >> moving on investors banks on the words edge fund titans at the conference, how do you fair? >> with this year's conference on monday, we asked leslie picker to look at some of the big names in the hedge funds world how they performed leslie >> we did, as you know, so many news is preimminent when it comes and pitch stocks either on the long side or short side, so if you heeded the advice of last year's presenters, how did you do well, larry robins three longs in the green since last year's new york event may 8th, and founder counted longs in dxc technology, fnc corp., and ikeava, all three companies outperformed the s&p 500 through today, and robbins is coming back on monday to present more ideas. another pick that would have made you money, well, shorting frontier communications.

josh resnick said make a bearish bet on the telecom provider, and it's now down 60% since then not all picks were profitable, of course, like brad touted a s, that stock has fallen about 5% since the conference on may 8th. keith meister recommended centurylink and david ein horn he will be back again this year, guys. >> leslie, thank you very much for that and everyone, don't forget monday cnbc will be at the sohn conference in new york hearing from some of those biggest names in the hedge fund industry that leslie just mentioned. don't miss interviews right here on "closing bell" monday afternoon. coming up next, meg is at the new york botanical gardens,

but she is not there walking the park. >> reporter: no, i'm not spring is here and that means so is allergy season. if it feels like your allergies are getting worse, there's a reason for that. we'll tell you why, coming up. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute. thwho hold themselveshe to a higher standard. they are called "cfa charterholders."

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much of the united states seeing below average temperatures, but allergy season is still upon us. >> meg at thas more on which wil benefit you. >> reporter: it's already a big business for the pharmaceutical companies. we're here at the botanical garden in the bronx to tell you why that might get even bigger take a look. each spring the national cherry blossom festival draws more than a million visitors to washington, d.c. visitors like 74-year-old

sandra, who loved the view but hated the way it made her feel. >> it's deceptive. when you see something so beautiful and it really knocks you right over you can't sleep, you can't breathe. but i cope. >> reporter: she is one of 50 million americans who suffer from seasonal allergies, which cause irritating symptoms like stuffy nose and itchy eyes, but also more serious effects from coughing and wheezing to asthma attacks. an allergist at nyu says seasonal allergies are getting more severe. >> climate change is a big reason for that. our carbon dioxide levels are higher and the pollen is much more potent and the plants are producing superpollen and the seasons are much longer. >> reporter: allergy medicines draw more than $2.6 billion in revenue in the last year that's just for over-the-counter products like zyrec, flonase and

claritin the cost for consumers can add up but for 26-year-old student and waitress jessica, going without argue medications is not an option. >> i'm going to be a waterfall of boogers all over the place, i guess. it's just an uncomfortable feeling. >> reporter: guys, i think we can all relate to that more of us may start to suffer from allergies as more people are developing them because of changes in our microbioms so this is a growing business and will continue to get bigger. >> yeah, thank you, meg. coming up next, we'll get another check on today's sell-off and the headlines making news after hours. and former massachusetts governor william weld will tell us what's next f torhe cannabis industry we're back here on "closing bell" in a couple minutes.

say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade?

uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. let's get a check on some of the headlines making news after hours. first up, yields on the u.s. ten-year note continuing to creep higher, touching 2.96 last hour that's the highest level since january of 2014. the justice department has reportedly opened an antitrust

investigation into at&t and verizon to look at whether the companies worked together to thwart technology that would allow customers to switch between wireless carriers. a source telling cnbc that all four u.s. carriers were sent letters of investigation back in february. bj's wholesale club could ipo as soon as june or july. they look to raise $400 million valuing the company between $2 billion and $3 billion. >> so as we close out, yields the story of the week, more so than any of the sector performance. >> i wonder if that might change next week. we do have a greater critical mass of big company earnings next week. just to kind of put it in context, stocks up half a percent this week, up 4.5% from an april 2nd low so you still have that story intact that the market is in recovery mode, but i don't think the margin of error is -- >> i don't think earnings are going to matter next week. i think it's going to be about yields. >> really? >> and tariffs overhang kind of stuff.

>> because it's a heavy, heavy calendar next week, evan some of the biggest names out there. >> i don't think -- i said a few weeks ago when he was on, financials, earnings weren't going to make a difference and they didn't make a difference. >> thank you both very much. michelle, thank you for joining us "fast money" begins right now. "fast money" starts right now live overlooking new york city times square. i'm melissa lee. tonight on "fast," bitcoin is booming. brian kelly says you have to see what could have major implications for the market. plus happy 4/20 and on this high holiday, we've got the former governor of massachusetts and board member of cannabis company acreage holdings william weld he'll tell us why he's giving the cannabis craze a green light. first we start with the market sell-off the dow dropping nearly 300 points at the lows apple dragging down tech