sanctions on iran with us, that could reduce exports by 200,000 to 300,000 barrels per day iran puts 4 million barrels on the market >> we'll watch that. make an appointment. come here at 1:00. we'll have the pre-party then. >> thank you for watching. >> closing bell starts right now. banks are moving today, a keynote from goldman sachs moving the sector. >> on the floor of the new york stock exchange, bulls regained some control of the market, but a lot of red flags remain. >> i'm steve patterson in hawaii where volcanic activity is sending rivers of lava to communities sending toxic gas high in the air. we have the latest coming up >> warren buffet spoke to 42,000 shareholders this weekend, and today, he speaks to us, what he said about wells fargo and apple. i'm kelly evans, several key

retailers took a hit today why? and even your old car may get a smart tech infusion. the "closing bell" starts right now. >> so we had hawaii in that one and becky in omaha, that's going to be hard to top. >> wide lly spread as we've bee. >> high bar. welcome, everybody, happy monday all those stories in a moment, but first, where we stand as we check in on the markets beginning the final hour of trade. we've seen the gains moderate as you just heard on "power lunch," dow hanging on to the rally, nasdaq with a strong day, and s&p up a percent, and markets are down in oil. >> it was the best performing sector at 2%, and that pulled back in light of that. we'll assess that more in a moment the dow was having the strongest three-day stretch in over a

month. bob pisani is watching key levels of trade, bob >> a fantastic two day run for the bulls, almost 500 points in the dow jones industrial average at its height. what's going on? steady all throughout the day. you see this down trend we had here. announced he would announce the decision on iran at 2:00 p.m. tomorrow oils came off the high, but by and large, working to break the down trend, this is the triangle we talked about for the last couple weeks the series of lower highs here, about to be broken if we get in the 2680s, that breaks the descending triangle, an important technical level, and, yes, technicals matter in the market the bulls have a lot to prove. here's the things they got to demonstrate. they got to show that global growth is not slowing dramatically, but this is the claim of the bears with a lot of traction they got to show first quarter

gdp slowing, part of a long pattern of slowdowns second quarter, u.s. growth picks up again, and inflation remains in the fed target and not overshoot it, a claim the bears have been making successfully elsewhere, and here's the big issue here, earnings growth and how much is it slowing down? this is the story, the peak earnings story 25%, and everyone said, well, it's up nicely, but slows down and goes down to 10% next year that's still earnings growth if you have a growing global economy, you are fine with 10% growth, but they are arguing they are going to get slower growth, and that's going to impact all the numbers later on. bottom line is this here the market is still go up if you have global growth our friends over at cfra have noted we can go up nine months after you get peak earnings, s&p typically is up, in fact, so the key here, guys, the whole story is, global growth continues. we don't see a notable slowdown, and inflation is within the

fed's targets. >> bob, thank you. see you in a couple minutes. with that going on, it's shaping up to be a make or break week for the market. we bring in our senior markets commentator with more. there's a lot going on >> yeah. in the short term, bob showed you that kind of make or break point where the market had to get out of the indecisive state, which way are we going to go there's comfort to be taken in the last couple weeks that the fact that the s&p 500 has refused all excuses to sell down further towards those lows we have seen volatility drain from the market, get more comfortable with the idea that we're near a floor, and that it can remain a little bit of the base, but, yeah, we have not seen the upside momentum build up to where you say, okay, back to the highs >> i get that, and really interesting piece on cnbc.com today outlining that more broadly, but looking at last week, seven out of 11 sectors negative, tech up 3%, apple a big part of that to me, i think the broader

market is still very soft, and it's just flatter or held up by the likes of apple last week >> something to that for sure. tech definitely needed to reassert itself for the broad market to get any kind of an upside move. i don't think it's necessarily the case of its nothing but tech, but it is a selective market it's not something where you say, oh, buy neiganything it's a later stage market that has to find a new story line going ahead. i don't think it's a problem if tech represented 25% of the market cap is growing more than other areas of the market, but i think you don't want to say that that's the only game in town >> energy's been key today >> energy's been joining up, smaller part of the overall, but, yeah, banks are hanging there, but they have not helped out much in the last week or so. >> mike, great stuff see you again, of course president trump, meanwhile, tweeting announcing a decision on whether to desert my the iran deal tomorrow at 2:00 p.m. oil crossing the $70 per barrel

threshold earlier today, up 16% year to date >> it's come off that -- just under $70 after that tweet announcement back to dom chu with more on oil. >> all right it was the perfect setup for the oil bulls these days you had, you know, u.s. based west texas crude prices topping $70 like you said, and world benchmark, brent crude above $76, and now we're at $75.45 each future contract hit the highest level since november 2014 venezuela getting worse economically, and iran is a wild card, handicapping odds of what president trump does at 2:00 p.m. eastern time tomorrow stick with that deal, maybe ditch the deal, but there is a little bit more clarity beyond or just before that deadline since the lows for wti back in mid-june last year, futures have gained around 65%. that's a heck of a run, and that's resulted in a huge

uptrend for gasoline here in the u.s. according to the lundberg survey, gas is up .07 crepts as we talk about what's beginning to drive things? the uncertainty in the market over iran has driven the upside here, perhaps more certainty being brought to the market here is what the reason is for the pullback seen. we'll find out more tomorrow but it's been a blistering run for wti and brent crude. back to you. >> thank you very much for that. for more on where oil is likely to head next, the atlantic counsel and jeff starting quickly here on the short term move we've seen in the oil price pulling back, only fractionally higher now on the day, having been up the best part of 2% on the news we're going to get an announcement tomorrow at 2:00 p.m. on the iran deal, is the market, therefore, interpreting

this as the fact that the deal's going to go forward? because oil prices are pulling back >> not necessarily, wilf i think the initial gut reaction was book some profits. the market thought we had another three, four days to produce anxiety and get that price higher we are a dollar lower. to your point, yes, there's a little anxiety, but look at president trump's track record of nafta, any type of campaign promise he had, we are going to have a hard time seeing tomorrow anything short of sanctions being slapped on iran. right now, we are seeing profit taking the price and trajectory of oil will continue. >> so, brenda, what happens if the president desert moes not c the deal tomorrow? >> extreme vehicleolatility. we'll have that because we have three big question marks related to the deal.

one is discretion. the second is compliance a number of countries around the world, asia and europe, perhaps will not comply with the sanctions like they did with the 2012 sanctions, and the third big question mark is production. will saudi arabia up its production in order to help with the offset of iranian oil, and, two, will u.s. domestic production be able to not only produce, but get the oil out to market >> brenda, overall, i guess one. key factors that you alluded to there in terms of what the oil price is do whether asian and european buyers still buy from iran even if the u.s. places sanctions on iran. what do you think the likely outcome is there >> right i think it's going to be mixed you know, one of the sort of odd results of what's going to happen in the first stage of this announcement is that, actually, iran may have increased revenue because what you're going to have is with the

announcement of the sanctions, you know, probably increase in the oil price, and this will actually, even if you take out 10% of iranian oil in the first stage because i think in the very tight oil market, the administration will be afraid to have to really massively remove iranian oil from the market, so actually you'll have, you know, maybe a down -- in terms of numbers of of volumes iran exports is reduced, but valued a lot. we don't know about compliance it will not be like the 2012 iran sanctions >> we are hearing the saudisment $80 per barrel even though they are our ally on this one, they are not the friend of the u.s. consumer who may pay north of $3 at the pump if that's true >> unequivocally that's right what did they promise? crude oil traded at $40.

they were going to curve production and get opec and non-opec members to bring prices higher right now, absolutely right, saudi arabia will help, but the point brenda brought up how china will continue to buy oil from iran, that affects the conversations from a geopolitical perspective on negotiating trade with china could be a fuse here iran seems to have already jumped the shark a little with the rhetoric in the event president trump does, obviously, not certify as well as put on sanctions. it gets hotter before cooling off in the crude oil patch >> that's why we're going to have volatility. two questions. >> that's right. >> main importer, china, we don't know its policy, and main producer, saudi arabia, we don't know its policy. volatility will be the name of the game >> well, i think we'll be sure about saudi arabia sitting on their hands. they are trying to get a $2 trillion valuation, correct? >> exactly biggest ipo, the state budget

could use it seems to be in their interest. guys, thank you very much. >> jeff, brenda, talking oil, just now above $70 brent over $75 the president will announce whether he's going to certify the deal tomorrow at 2:00 p.m. we'll have full coverage there's a news alert on nascar, eric >> that's right, we can confirm a reuters report that nascar is shopping around, hired goldman sachs to start preliminary discussions with possible buyers those could include other sports leagues, could include media rights organizations you don't know, for example, formula 1 was bought by liberty media, interesting to watch in the sports media world sports rights just drive so much of the live tv ratings nowadays and how media companies want content on with all the cable deals and channels to compete with the france family, a privately held family run company that owns nascar, and so the family appears to be looking to get out

after owning this for maybe 50 or 60 years or so. that's the news originally reported by reuters, back to you. >> eric, quickly, we know the ratings have been challenged, nascar nowhere near what it was just say a decade ago, and interestingly enough, we now have had ford announce they are discontinuing effectively its sedans, which is -- so the relevance of nascar, in order to fetch a price here, you have to wonder if they are realizing, you know, maybe that ship sailed >> that's right. think of auto technology these days, it's about uber and tesla, away from gas-fueled cars, and it's away from people owning and driving the cars they own. if it's car shares and electric cars is the technology, you wonder what happens to the sport. a buyer could come in and have a new tech way for a new audience, maybe that's why the family is willing to sell and move on from that >> i still think they should let them race a driverless car, but

we'll see if the next guy is more - >> you should buy it >> oh, yeah, i'll over $10 >> drone racing is already on espn >> great stuff, thank you very much for that. we have 45 minutes before the close, off the highs, but higher for the day, dow up .3%, and s&p and nasdaq too tech is doing well today, but energy sector in particular slipped in the last half hour pulling markets with it. >> we're just getting started here straight ahead, should you follow warren buffet on two big stocks one is a tech play the other? a big bank plus, the big change for restaurants, theaters issue and stores coast to coast. you want to know about the big change before you order. the "closing bell" with kelly evans and wilfred frost live t new york stock exchange continues in two minutes

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welcome back, we have got 43 minutes left until the close, markets are higher, but they've come well off the highs of the day. the dow's now only up .2%, as

the nasdaq and s&p up .6%. individual movers, gannett, beating earnings expectations by .10 cents in line with forecast, citing growth in digital advertising for those beats, up 11%. >> maybe it's not just the "wall street journal" that makes money from newspapers as warren buffet suggested. they wrapped up in omaha, speaking with tens of thousands of shareholders, and becky quick was there speaking with buffet this morning on "squawk box," and, becky, like, my favorite morning of the year. >> and you're not even there >> i don't need to be there, but i want to be parked in front of the screen taking it all in. becky has the hard part. >> i agree >> becky, thank you for joining us, what did you make of it all? >> thank you, guys, for being such nerds, yeah, yeah for us. i have to say that looking back for the week and everything that happened, the biggest news over

the last several days has to be duff fe buffet doubling down on apple, bringing total of holdings to $43 billion. friday closing at an all-time high, and as i looked, a new high in trading session today. we talked to him this morning, and buffet explained to us why he plowed into that stock this morning. >> we're not buying these stocks when we buy apple in our minds, but 5% of a business we buy 100% of some businesses when they are publicly held, we buy 5% we bring the same thinking to it, and we like very much the economics of their activities, and we like very much the management and the way they think and act. >> reporter: another berkshire top holdings is wells fargo. the stock is under pressure if you watched over the last year,

and additional criticism coming in, including this weekend at the shareholders' meeting, beyou talked about this this morning, and buffet is standing by wells. >> of course, i wish i had wish i bought other bank stocks and sold them to i could buy wells now. wells fargo is buying in a lot of shares. you can argue they are improving the per share value because they had bad news, buying it cheaper, but ten years from now, i think if you look at the ten-year record of wells fargo, ten years from you, you are likely to find that it outperforms most of the competitors. >> reporter: of course, he's had a change of heart with shares of ibm. did not spend too much time talking about this, but another big piece of news that ibm, he revealed to us he bought into in november of 2011, very enthusiastic, turns out that he sold out the entire stake in the first quarter, the last 2 million shares sold out of ibm, telling you about the changing fortunes of that stock, even

though ibm has seen revenues picking up since he sold out back to you. >> well, real quickly, i was going to say, love the stuff on consumer staples, like, geez, consumers are not as loyal as they were. admitting, we talked about it for a decade, but he's saying maybe it is true >> i guess on becky, it's a -- >> definitely. >> to continue on that theme, the consumer stocks, he sort of thinks apple is a consumer stock and not a tech company >> reporter: that's true when kelly talks about stocks, she's referring to coca-cola and kraft-heinz. we've seen just in the last couple weeks, coca-cola, maybe last week, touching a 52-week low, and heinz had better than expected earnings, but look at the stock over 12 months, it's down 35% buffet has long loved brands, consumer product brands like this, but he did point out this

morning that, look, we've seen a push and pull, and the pendulum swung towards retailers having a little more power over consumer products brands, appointmenting out that's the case and hopes the pendulum swings back, but that's right he said he's not somebody who knows a lot about technology, traditional does not go into technology shares, but the reason he likes apple is not because he understands the technology admits full on he does not, but he thinks this is a consumer brand with a very strong boat, and that's why he feels so strongly about it. >> great stuff, becky, thank you very much, outstanding coverage again from that event over the weekend, and, of course, so much more >> carry on. whatever you know what i mean outstanding coverage, nonetheless, whatever you call it scott is joining us now and robert miles, author of "the warren buffet ceo," discussing further the findings from the weekend. if i start with you, scott, do you feel like this investment in apple so sizable as it is comes

with less conviction behind it given the admission from warren buffet he doesn't really understand the technology that closely? >> no. i think some was said before, let's understand something, apple is the largest retailer in the world. they just happen to sell technology products and manufacture technology products. similar to what i always say about mcdonald's and analyze this to the students in seaton mcdonalds is the world's largest real estate company. once you see that point of view, you look at things differently, and you can absorb it better, and i, look, he doubled up on the position apple is also the old time greatest cash generator in corporate america, so he loves cash generation, and they are buying back now $100 billion in

stock and increased the dividends. there's a perfect warren buffet stock. >> so, robert, let me ask you about amazon, which he's talked about and whether he should have bought into it and whether he still would, but one thing amazon has is pricing power. they were just able to raise prime memberships by 20%, and buffet, himself, mentioned that. do you see other businesses out there that would be good acquisition targets for berkshire that's so large now with so much catch >> it's a good bet to apple rather than answer the question about amazon is that apple is very similar to coca-cola in that there is a worldwide addiction, which is the mote that apple has, and he may be recognizing that in amazon as well, but he's not able to predict amazon as well as he can predict coca-cola as well as apple, and the eco system of apple and the globalness of

apple compared to coca-cola, it's the global distribution of apple that he said back in 1988 when he first bought coke that if you gave them $100 billion, he could not take away the soft drink beverage distribution business from coca-cola. i think he would say the same thing with apple he couldn't take away the distribution, the ecosystem of apple todayme amazon, i'm not sure he'd give you the same answer. >> fair point. apple is the new coke. works with him for now of course, we'll see from here scott, robert, thank you both very much. >> thank you cnbc launched a website to help you get your buffet fix any day of the week. dom chu has a look at the new warren buffet archive. dom? >> if you want to get a buffet fix, you can get that fix in a big way with buffet.cnbc.com the reason why we say this is because it's been years in the

making and months to compile we got hours of -- 500 some clips out there. we got 130 hours worth of footage from all of these annual general meetings, agm, as you calm them, transcribed, 2600 pages worth of content. search the archives, you can look at the popular searches and search by any keyword there. also, some other interesting applications you can do with the website. go through and hunt for the last 25 annual meetings that berkshire had, full video of the entire meeting and verbatims for them all buffet a-z, a lot of the topics talked about from airlines to ceo pay, all come biled in an app-like format like this. also, any history about buffet as an investor is here on the timeline again, another huge way to categorize all of those things, and, of course, all the

interviews that buffet gave to cnbc over the years, many exclusive. all the clips and highlights found right here as well, and when it comes to the primary source of all primary sources, this is the biggest repository for all of that video that berkshire and warren buffet and charlie put together over the years, and many thanks to them for giving cnbc the opportunity to categorize them and index them so you can search for them, guys, back over to you >> a public service. dom, thank you very much dom chu in headquarters. tune in tonight for an encore presentation for "warren buffet: investor, teacher, icon. now we are done. we so much appreciate the time the guys give us more than a half hour left in the session today. dow, look at this, come completely off the highs, back 31 point gain. the president announces his decision on the iran deal tomorrow at 2:00 p.m s&p has a five point gain, and

other averages as well we're going to get a read how investors navigate this market ahead. plus, mike is post ughiing e of the movers today. >> the market reacting to a big acquisition. we'll tell you the details when we come back ♪

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>> welcome back to the "closing bell", everybody, this is what's happening at this time president trump tweeting this afternoon that he will announce his decision on whether to withdrawal from the iran nuclear deal at 2:00 p.m. eastern time tomorrow he has threatened to withdrawal unless european allies fix what he calls the deal's shortcomings in hawaii, lava continues to spread in hawaii consuming roads, cars, and homes the volcano has now destroyed 35 residences and spewed lava hundreds of feet in the airment some of the more than 1700 residents who have been evacuated were allowed to briefly return to gather medicine, pets, and other necessities. prince charles and his wife visited a memorial for the victims of the nice attack in france laying flowers at the memorial and signed a book of condolence 86 people were killed july 14th, 2016 when a truck barrelled down a promenade. and california's economy has

now surpassed the unit kingdom's to become the world's fifth largest, according to new federal data despite having a population of only 40 million compared to the u.k.'s 65 million, the golden state's gross domestic product of 2.7 trillion has just barely overtaken the u.k. 2.6 trillion. sorry about that >> what do you know. >> this was kelly's idea >> you think i would suggest that yes, it was my idea, yep >> i was giving you cover, kelly. >> facts are facts, sue, facts are facts. >> this is true, sorry, wilf >> well, if the pound rallied a bit, we'd be back ahead. >> i don't know how they account for that >> we'll see but that is rather annoying. i was not expecting it >> sorry about that. >> people will be annoyed it's california too >> that's absolutely true. see you next hour.

>> thank you very much, sue. less than a half hour to go, dow hanging on a 33 point gain >> first, bank of america, plans to contribute $43 million to a lending package to help assault style rifle maker, and when you dig into the detiails, they announced that policy in april the company and their commitment to the company began from then, and when they announce a policy, it's clear it's on a forward moving basis >> buffet said i don't believe in imposing views on all their employees and shareholders, i'm not their nanny. you have to be careful in terms of social issues, so ceos are trying to figure out how to handle the climate, whether to get involved in those decisions at all >> he owns bank of america and

wells fargo, and i'd say the two banks, one side or the other, absolute absolutely, we're not getting involved with this, but broadly, banks up today because there's an a steepening in the yield curve. both bank of america and wells fargo up nicely today. kohl's one of the worst performers in the s&p 500. it, along with other department stores, are down significantly today after deutsche bank had a note on apparel retail this morning saying the group's valuation is ahead of its, and, quote, we believe fundamental upside is limited. you can see there, kohl's down 4.5%, and may cy's down 4% >> amazon potentially looked at just good quality -- >> the whole foods of the u.k. p. >> yes whole foods does not exist in the u.k., but niche areas there.

very much like whole foods i can believe they looked at that let's send it down to the floor, mike is posting up international flavors and fragrances where is that moving >> down 10% most of the day. really heavy volume, not because of the results they posted, which were fine this morning, but making an acquisition, $7.1 million, a big israeli company, in the same industry, foods and other products they love the strategy of the deal, makes sense, but they have to raise $4 billion plus in new debt and sell equity worth $2 billion. the price tag is what people are concerned with, something like 20 times cash flows. everyone thinks it's good long term move, but deluded to shareholders the market value is around $10 billion. this is a very big bite for iff right now. we'll see if this stock settles after the big one-day drop today, guys. >> explains the decline, mike,

thank you. we have a news alert on tesla. let's get to leslie picker >> that's right. a new filing is closing insider purchases by the chairman elon musk, he purchased 33,000 shares in two days with a value of $9.8 million in average purchase prices, about $298.50. these were purchased through his trust, but, of course, additional bode of confidence from chairman musk back to you. >> maybe he feels like he owes it to the share holders at this point, thank you >> the stock was up before that news a coccurred and recovered losses whether it's him propping it up or others, they stepped in and regained losses. the market's broadly, 24 minutes to go, are higher, but they have slipped somewhat in the last hour of trade or so as oil prices slipped as did the energy sector, which was the best performing sector of the day. markets up .25% for the dow and

s&p, and nasdaq is up.7% a new report says main street n investors decreased equity expo sure last month, but there's tech names with interest revealing them coming up hawaii's eruption damaging homes and causing 1,000 people to evacuate. a live report from the big island and how long the eruption could last stay with us

welcome back, stocks closiin the highs of the day, and let's discuss the moves. joining us, brian from growth fund, and next to him, steve grasso, and our own rick santelli at the cme in chicago so the population of ireland -- no, not continuing that discussion >> right >> 80 points higher in the dow now, oil the story of the day,

and what is this market thinking going into tomorrow's desertification announcement - >> if that's the announcement. >> right, sorry, certification or lack thereof. >> we chatted long enough about this to cover every angle of it, but it's my belief, and what we saw already from the administration is the bark is louder than the bite, and it's always a little deeper than the bite there's not a lot of bites we've seen, although, he does do what he says and says what he wants to do. i think that the market is, you want to sell the fact. you buy the rumor, sell the fact you have the saudis wanting $85 oil. you have the iranians saying that between $60-$65 seems like the right price, and president trump says he's going to come up with a decision tomorrow whether it's going to be additional sanctions, whether he's going to withdraw, whether he certifies the deal or not certify the deal >> overall, then, if this is a move based on the thought he's going to pull apart from the

deal, has oil peaked in the short term >> i would say it is peaked. when you look at pompeo and bolton, could you paint a more hawkish picture on the iranian situation? answer is no in my opinion talking about cat with peak earnings season this year, and talk about all the other peaks we've seen, i think we've seen peak oil this seems a little too contrived, to me, going into saudi aramco, iranian deal, take profits, and the market is doing that today >> what opportunities do you see here >> we like mastercard and vie v. they were up 5% excludeing automotive and fuel. nice strong consumer health. >> regardless of what happens with the iran deal >> that's right, exactly right, and e-commerce, you know, more and more e-commerce, you can't buy stuff from amazon with a 20 dollar bill, so you use mastercard and visa. they are seeing growth

>> talking with steve about potentially marking the top on certain things, do you think buffet owning as much apple as he does marks the top of that as someone who does not use the technology finally getting in in the party. >> never against buffet. >> you buy apple >> it's a fantastic company, great brand power, and they are going to be around for many years, right >> rick, talk to us about some of the international data pictures, more softening data from germany this morning in terms of industrial orders >> absolutely. it seems as though we are definitely getting that hiccup on the global front with regard to the global economy, and i think that's part of the reason the dollar index has been strong, and, granted today, up about a fifth of a cent, but it continues to give us higher highs as it gets ever closer to 9 93 welcoming a new contract today, secured overnight, financing rate, futures on the cme why?

lybor rides into the sunset, only it's not. there's competing rates now, and we'll talk about that tomorrow, but it's something viewers should be on top of as many contracts like your dollar futures here at the cme are instrumental in the hedging of short rates for the banking industry, so it's something we will continue to monitor >> all right, thank you, everybody. brian, steve, rick, appreciate your thoughts. 15 minutes into the close now. dow up 78 points as mentioned, oil came off, but it's still just below the $70 mark that crossed earlier today, and we have big earnings headed our way after the bell here's the stock that moves 11% on results we'll reveal the mystery mover coming up. first, kinahan breaking down trend he's seeing with his clients next don't go anywhere. we're back in two.

this is a cnbc news alert on wynn resorts the massachusetts gaming commission has just issued its decision excludeing now steve wynn, the founder and former ceo of wynn resorts, as a qualifier for the gaming license in

boston they say that wynn resorts has substantially shown evidence that the relationship has been terminated in a meaningful way, and that as long as steve wynn does not vote his shares, he no longer owns them, but by the rules, he could vote them at the shareholder meetings next week, as long as that does not happen, he's excluded as a qualifier, step one in keeping the gaming license for wynn resorts it does not let the company off the hook entirely. the questions about whether the board acted appropriately in applying for the gaming license still at stake, and, of course, there are issues that come up in the shareholder meeting next week about who is on that board. kelly, back to you >> yeah. that overhang may explain there's not a reaction in the shares still, thank you very much the latest there on wip. now, next guest says despite volatility, investors are buying netflix and at&t >> with the latest investment, our chief strategist, jj

kinahan. >> there's interesting stocks like square that you do not expect also, and so, you know, i think one of the primary things you are seeing, though, our clients in terms of measuring exposure to the market four months in a row, they took less exposure to the market overall, showing the trend we're seeing that earnings are out, they are very good, but nobody's quite sure what to do with them, and so because, you know, last year, every single month, they took more exposure, and this year, they took less exposure. >> what about the energy space >> big sellers, number one area we saw sellers, conoco phillips, bp, rig, but that's as related to the fact that crude oil was at the $70 mark for a long time,

trouble getting through it, and investors said, if they get through it, fine, but 52-week highs on so many stocks, why put myself out there as crude has trouble breaking through if it does, hopefully they have exposure to it >> spotify had an abnormal listing process. did that put off investors once it listed or got involved? >> absolutely involved it was a primary buy for the month. you know, our investors liked it that one, i got to be honest, made me nervous because we've seen this before with twitter when it first came out, with snap, where people love the product, and, you know, sometimes a stock does not fall in quite as well as you'd expect it to given how much people like the product. most interesting stock to me this month was facebook. >> huh >> for - >> what did they do? >> overall clients, facebook was a sell for the millennial clients, facebook was a buy >> huh >> i found that very interesting given the, you know, all that facebook went through in april, that our millennial clients

theoretically use the product more, still the ones buying the stock. >> presumably with less aum behind the purchase. >> certainly >> well, maybe, maybe not. >> maybe not >> i think it's a fair - >> statistics would say less, it's a good observation. >> against future earnings, it's going to be tricky >> jj, a pleasure. >> great to be here, thanks, guys jj kinahan i don't know your portfolio. i'm sure you're not pouring money into the market, but nine minutes before the close, we are higher, but we slipped from the highs of the day, albeit stable since the oil price pull back. >> we could see big stock swings after hours with earnings headed our way. a preview how the companies might move on the results when we come right back

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welcome back, earnings headed our way after the bell. >> shares of amc entertainment move on average 2.1% up or down over the last eight quarters when they release their earnings meantime, shares of zillow average of 6.4% when they report

their earnings >> and, finally, mystery stock we teased earlier is hertz, that stock tends to move 11% based on recent history on its results, and it's been volatile more so recently because of all the concern about where fleets are going in the age of driveless cars >> indeed. >> and ride sharing. >> threatens racing driving and -- >> you should go to a nascar race >> i want to go. >> you should. i would like to watch you at a nascar race. >> you are welcome to come along. bring a camera if you'd like it would be a fun weekend, although, a simple track they have >> there's a lot going on. >> a soccer game in london >> it's a deal >> it's both or nothing. that's the bet four minutes left of trade we'll be right back with the closing countdown. the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity,

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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. welcome back we got two minutes left of the trade. we are off the highs, looking at a third percent of gains it's dow and s&p, and two-thirds for the nasdaq, but 82 points higher for the dow right now, the high of the day was 260 points so we are well off the highs look at the intraday s&p because you can see when we came off those highs, which was about an hour and a half ago. why? because president trump tweeted that he will make his decision announcing the iran deal

tomorrow at 2:00 p.m oil prices slipped, buy the rumor, sell the fact type of way. let's have a look at oil prices there. there is the big selloff at the same time we saw equity markets sell off and that was the main reason we pulled back, and if we look at the sectors intraday, it tells that same story, and bob pisani is joining me because at midday, energy was the best sector, up 2%, and it's now off the oil price pullback, it's just fractionally higher >> we had new highs in all the energy names, but hess, marathon, all the second tier oil names had new highs and came off. geopolitics interrupted the whole nice rally we had. we move almost 500 points on the dow jones industrial average from thursday's close. that's how big the jobs report was for the bulls. this is a slight disappointment, nice to be up on the day, but we had tremendous momentum until roughly 2:00 in the afternoon. >> but the nasdaq keeps

momentum last week, the nasdaq led higher, up 1.25%, and today it's up best part of a percent. >> apple added $50 billion in market cap since the earnings report on tuesday. >> bob, the bell, up 87 points on the dow ringing the bell at the big board, ypo, global network of young chief executives, and at the nasdaq, lakeland financial corporation. at the close, up 98 points on the dow. kelly's got the second hour. >> thank you, wilf, and welcome to "closing bell", everybody, i'm kelly evans, a 92 point gain on the dow today, better than awhile ago, markets gave up almost all of their gains, maybe going back to the president's announcement that he will tell the world what he's going to do about the iran deal tomorrow at 2:00 p.m that knocked oil off the highs, knocked the market down fora little while too, and still the dow and s&p closed up a bit more

than 1%, and nasdaq up .75% today, and russ 2,000 was the outperformer 2672 for the s&p the closing levels to talk about this, michael santoli, and john augustine, and rob cox from reuters breaking news welcome, every in the dow, best performer was caterpillar and walmart was the trail e and range resources was the leader on the s&p and international flavors, mike, what you noted, taking the deal announcement poorly. quickly, going back to the action of the final hour, things were steady all day until we got this word from the president it was interesting that the big story was oil, which at first went over $70 and market backed off too. how do you square that >> part is the math of the energy stocks themselves, also, having their gains, and i interpreted that as the market thought we were going to have a few more days before you had to

factor in this potential binary outcome of a decision by the president on this. the timing was a surprise that it created a back away, reassess, and see what it means. oil has been on a tremendous run. it's not surprising if it took a breather no matter the news on iran, so, overall, i think the market did enough to kind of hold together this mild rally to say that it is, you know, it's firming up the tone firmed up it was more cyclical stocks that outperformed defensive ones. right now, it's okay, but interesting it was still that sensitive to the deadline. >> right rob, the significance of the president saying this announcement east goiannounce me ment's going to come already, goen i don't know if that's clear on what he's doing, maybe walking from it, and how do you think the market would handle that if that's the case? >> the market is having a really great day, right it was sort of digesting a whole bunch of animal spirits in the form of the m&a deals we saw not all great deals, but you saw the activity, and you see

everyone watching buffet and hearing warren, beloved figure, and all the sudden the president comes in and drops this thing on the table, and brings forward the decision i mean, i think we all know what he's going to say. the only significance one says by doing it so far ahead, he's leaving an option, like, you got another sort of -- he's turned the egg timer in such a way that, perhaps, macron and the europeans can get in there and work with the iranians to come up with something that meets everybody's needs. >> yeah. circling back to you in a moment, but dom how much oil iran contributes to opec as we discuss the announcement >> since sanctions have been lifted in the years since then, iran ramped up production to a point it's in terms of total production of petroleum and other hydrocarbon liquids, they

are the sixth biggest right now contributor to world supply. on average, they make according to the u.s. energy information administration, about 5 million barrels per day. china and canada in that same general league it's when you get to russia, saudi arabia, and the united states, that's where production comes to a head. three biggest by far of any producer out there, but the concern right now, and the reason why crude oil is ramping up a bit on this iran tension is the idea that you could see supply take it off the market from iran if, again, sanctions may be reimposed if that is the case, and, perhaps, some of the estimates are half a million barrels a day come off production from iran, what's it do to oil prices fair to say traders priced this in i have to note right now that the cme group with a huge amount of futures trading tied to crude oil announced today the amount of open interest for wti, west texas intermediate crude oil,

hit a record and 1.3 million contracts per day on trade, year to date to april, 18% bump from the same time last year. with this talk, crude oil interest is through the roof, a record number right now, and more people are trading crude oil contracts. you get the sense this is jockeying for position around what mike said, a blistering run for crude oil prices just through the bottom back in june of last year to where we are right now, so a lot of things to watch, but iran is a force to be reckoned with with overall production inside and outside of opec back to you. >> fascinating, dom, thank you john, to you, that tells me it's clearly a lot of speculation, a lot of wall street in the market, and it might have been pushing up the price of oil lately, even if they are doing what are fundamental reasons, we'll see if that comes to pass, but your position on energy here >> well, our own position is if you look at energy in the s&p 500, it's by far the best performing sector as we get midway into the second quarter

our managers have been focused on that frapg nkly, and oil stos are keeping up with oil. that had not been the case last year that's a relative recent development. >> so do you think, mike, i know not trying to get in the business of predicting this, but around the $70 mark for crude right now. make the case that saudis want it at 80, this about to pop another ten bucks, gasoline over $3 in the country, and flip side is no, no, no, speculation is priced in. we've already been on the bull run. gasoline is up how many days now? >> every day for two weeks now >> now we sell the fact. that's where we are. >> i think in the very, very short term, i think you're more vulnerable to having a pullback, taking a breather, because you have built so much of it in, and why the energy stocks sometimes lag, moving the commodity? if it's not a demand story, it's just building in geopolitical

premiums or supply issues, and that sometimes is the reason for it >> right, and now we have crude, just about the $70, less than that here at crossing it this morning and backing off after the president's announcements. st stocks off the highs too, bob is on the floor and looking at what happened in the final hour, bob? >> this announcement came at an inopportune time as they were in the process of changing the conversation away from the slowing global growthstory to more growth is doing okay, and inflation is not going away. i want to show you a two-day chart. the s&p 500 there. we moved almost 50 points, almost 500 points on the dow in the last two days since the thursday close in the jobs report came, and we were sitting at the highs of the day, just off it, actually, when president trump made that announcement, so we lost momentum on the sell on the news announcement since oil dropped essentially. the market moves, a lot of talk of apple moving towards a billion dollars. it was going in that direction,

and it, too, reversed. apple added $50 billion this market cap since its earnings report last tuesday, and that's rather remarkable, more than many, many companies on the s&p 500 despite itself, one of many oil companies hitting highs, hess, off the highs on the announcement, but marathon, the mid-tier oil companies hit new highs. walmart, the drag today on the dow, set to announce a decision to take a majority stake in flip cart over in india, and you can see that this a negative impact here all in all, the bulls have a lot to prove if president trump's decision notwithstanding, they have to show global growth is not showing dramatically, and gdp weakness is typical and reverses in the second quarter, and they have to show inflation is within the fed's targets. still a lot to prove right now for the bulls. weal see back to you. >> bob, thank you, bob pisani. we have an earnings alert on zillow now we had strong, fannie-mae housing confidence

how is zillow? >> a nice beat, .7 cents, street expected 6 cents bulk is from the premier agent revenue, $214 million, and you add rentals and mortgage business mortgage business lot a little bit. that's because of higher mortgage rates, no doubt, and more than 175 million average monthly unique users access zillow group brands's mobile apps and websites during the first quarter of 2018, increase of 5% year over year, and visits to mobile apps and websites including zillow, street easy yen real estate.com increased to 1.8 billion. messy on the guidance, though. zillow gave in april, full year outlook is the same as they gave in q1, but q2 is light, guiding 322 to 327 million, lower than the 343 million analysts looked for, but full year in line with the estimates. now, the ceo says our

opportunity is expanding with the introduction of innovative product and services like zillow instant offer, offering end to end solution for consumers and generates more home-related transactions you remember instant offer was controversial when it was announced, and the stock tanked a little bit on that one more announcement today that the company's chief legal officer and cfo will be retiring that is kathleen phillips to retire in the end of the second quarter. that's the report. back to you. >> diana, thank you. mike, what do you think? >> this is the way stocks react to earnings right now. if there's something to quibble with, down a few percent the stock regained a tremendous amount of value after the market absorbed that idea of instant orders a few weeks ago, up 20% in three weeks >> wow >> you know, it's giving some of that back, obviously >> down 4% after hours, rob, your thoughts? >> i mean, i don't really cover zillow closely, but they are an interesting indicator about

household formation. i started to think because they are slightly technology real estate, they know what, like, young people, who are really going to lead the economy on that front, so if it's, i mean, i don't know if it's good, it's good. that means the economy's booming. >> well, john, i'm digesting the zillow instant offer where we are the bid, and, you know, as mike said, the shares have come back senince, but that's a capital-intensive move for them, right? >> it is a capital-intensive move they are a disrupter and gaining traction, but our observations from the ownreport is they need more inventory low inventory could affect their results. that was on our mind when we heard the report >> a great point every day brings a new report of how there's not enough housing to meet the demand right now >> i think about it as when goldman sachs invented block trading. there used to be you had to find buyers for everything and it slowed down the process, so we

have to facilitate the transaction and find the seller on the other end they are acting as that kind of, you know, principle in the middle of the earnings and translations >> but all stocks are commodities in the sense that a share of aig is a share of aig >> but it's a bet on technology to know what the value in those local markets is for each house. >> right, and each buyer, might be still extremely specific about what they are looking for out of that group. >> that's right. you know what also block trading meant? the sellers had to deal with a discount >> huh >> sell for a discount because you get the ease of execution, and that's what they are trying to do. >> shares down, a little bit more than 3% also this elliot management's paul singer made an all-cash off for athenahealth what's your take >> elliot does this a lot, comes in and decide to be the buyer last resort, and it's a simple tactic to get to people out of

the wood work. they did it a number of times with -- sort of like software services companies i think there's, like, four, five i think insuccessfully done that in you have to be willing to own the thing in the end and have the financial wherewithal to do it just watch someone will come in and take it off their hands. >> and, john, is this another bull market sign to you, not this deal specifically, but going back the last couple weeks now, it's feeling like it's really piling up, we had starbucks and nestle, and last week, sprint and t-mobile. >> yes we think the more we get into the spring, the more we're going to have merger mondays there's a lot of capital out there. this one today says there's still a lot of private equity capital out there, looking for growth, elliot was frustrated with this, and they took a bigger stake because they want to see results out of athena >> all right, breaking news on snap to get to now, julia has that one >> kelly, snap filed an 8k,

announcing a big personnel executive change the cfo is stepping down, leaving the company on may 15th, replaced by an amazon vp of finance. he is starting may 16th. now, he's been with amazon since 1998, had a number of roles where he led the integration of the whole foods acquisition and the vp of finance for seven years, and now drew says he's leaving to pursue other opportunities. he'll stay on as an adviser to snap until mid-august of this year now, the snap ceo said he's, quote, deeply grateful for drew, saying he's done amazing job as the company's first cfo, building a strong team, and guiding us through the transition to become a public company. spiegel indicating there, perhaps, they want a ceo to take the company in the next leg of growth, growing as a public company and scrutiny that comes

in that situation. there's a photo of drew vollero going out. we'll hear from incoming cfo in may. back over to you >> all right, julia, thank you >> mike, do you leave amazon in seattle to go to snap in ventura beach? >> in addition to the geographic change, after 20 years at amazon, i think you have done what you have done there, and know about how do grow and scale up a tech business, so i can't see how this would be taken as anything by a net positive >> rob, same thought to you? >> yeah. i mean the issue is not finances, really the issue is their product, their enengagement, this is positive, as mike says, you got a really good signal and experience guy from a great company going down to the, you know, to present a speech, but in this other hand, it's not really addressing the problem that we saw just most recently manifested last week >> snap shares up about half a percent right now. rob, usually when we see an

early stage company losing, you know, a c-level executive, the interpretation is the other way around it's, geez, this management team is having issues, and there's tension, and maybe things are not going as well as they hoped, but you think the fact that -- listen, if this was just the announcement of him leaving, market takes it differently. we know the replacement, right >> it's important to have a good finance director and cfo no question about it it's not really the thing that's going to decide this company's future right? they have got to figure out engagement, how to get people into -- grow their users, and they got all those problems, and they have to figure out how to profitably advertise all those things, which we saw in the earnings -- are they earnings they are results and that is -- that, you know, a good guy can be there to be with the market, that's sometimes helpful, but, really, this is just replacing one guy with another guy. that's great i sort of say, you know, doesn't suggest any change what you want to see is some

conclusion these guys have a handle on the business, and that's not what this is. >> all right snap shares up 2% after the announcement of a new cfo. we have a earnings alert on hertz. leslie picker? >> that's right, shares slumping in the after market today on a big miss on the bottom line. the company reporting a loss on an adjusted deluded basis of $1.58 per share. that compares with analysts' sfimts sometimes of $1.26 top line, though, was a beat, report i reporting $2.06 billion versus $1 partnersh $1.98 billion. that's what analysts estimated there. this comes after a flat performance year to date, and it's competitor, avis, closing way in the red last week after they reported earnings and posted weak guidance back over to you, kelly.

>> all right,less leslileslie,. john augustine, you get the last word, shares down 10% now, radical rethink of the future, where the automotive industry is going? >> tough space ride sharing services are probably hurting them. potentially some of the resale services are hurting them. so this is a space where generally we're not going to be in we're going to stay in the blue chips. >> all right feeling comfortable with that this afternoon guys, thank you very much. >> feeling comfortable >> john augustine, rob cox from reuters joining us thank you very much. there's a lot more ahead still next up on "closing bell," we'll take you live to the big island under siege during a massive volcanic eruption. >> reporter: we're in hawaii, an eruption sends rivers of lava marching to communities, and toxic fumes spew into the air. the latest on the evacuations next plus, the banks, a goldman

sachs note tells investors to get behind the sector. we're naming the names with the most upside. this is the "closing bell," live from the new york stock exchange with kelly evans it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet? anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

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>> welcome back, dow up 94 points on the bell, managing to stay positive after giving up gains in the final hour after the president announced a decision on the iran deal tomorrow at 2:00 p.m everything stabilized into the close there. earnings alert on amc entertainment this afternoon, leslie picker has the results. >> kelly, amc up in after hours trading. you can see there 5.5% on an earnings beat on both the top and baottom line on the earnings side, company reported .14 per share, street expected .09 revenue a beat slightly, 1.3 billion in revenue compared with estimates of 1.35 billion for the quarter. now, the company says they reported record revenue in all categories, admissions, food and beverage, and others, aided by an acquisition during the

quarter, back over to you. >> leslie, thank you very much, amc holding on to a 5% gain, make >> yeah, not bad it's a cheap looking stock, high dividend yield, and considered to be secular decline, so there's a big short position that's why every quarter, things look okay, stocks look fine, it rallies. >> big reaction, 5% gain now for amc. hawaii's volcano destroyed homes already and showing no signs of slowing down, nbc's steve patterson is in hawaii with the latest for us, steve >> reporter: kelly, a state of emergency remains in place and for good reason. overnight, more fissures opened up, gaping holes that literally split the earth open, shooting up geysers of lava as high as small buildings, one recorded at 300 feet, there's now ten of those concentrated in one neighborhood, where 1800 people are forced under mandatory

evacuation those geysers also accompany earthquakes. there's been several hundred of them since this eruption started including a 6.9 earthquake on friday that rattled this community and all the chains on the island also, there's sulpher dioxide that's toxic, can be harmful and deadly, especially if you are young, old, have respiratory or lung issues. officials are trying to keep people backed away from those areas. they did let residents back in yesterday to check on their belongings, grab medicines, grab pets, grab anything they need, but they also forced them back out because of how volatile and dangerous this situation is. many of those people went back to discover their home was either badly damaged or destroyed. 26 homes destroyed 31 structures. there is no sign of this slowing down, and officials can't predict when this volcanic

activity will end, so very serious situation remaining on the big island kelly? >> steve, thank you very much. joining us now to discuss more on this volcanic eruption is martin pepper, professor of geology at the university of arizona and one-time host of "how the earth works" on discovery channel, thank you for your time. >> thank you, kelly. >> the question we have watching this play out is how much longer does it happen and bigger an worse could it get >> that's a very tough question because the first thing you have to realize is that this magma is traveling 35 miles from below the earth's service. it's difficult to predict, not only how much is coming up, but how much is already built in this pressure right below the estates. very difficult to tell with such a deep distance of all this m magma reaching the surface >> how much of a disruption is this for the hawaii islands looking at the tourism impact? >> i would say for at least the

big island, this is disruptive you know, people get hesitant if they want to do a vacation in an area that's possibly under the siege of a little volcanic eruption, so i think big island, you might want to be hesitant, traveling at least to the southeast, but for the rest of hawaii, i think it's totally open, no problems because these are a few volcanic eruptions, pouring out slowly they are not explosive they are safe if you're away from them, so i think it might hurt the tourism industry, but i think the tourists shouldn't be concerned at all as long as they are not really close to the eruption >> yeah. i'm sure everyone's going to steer clear. thank you very much, martin, for your time. >> thank you >> that's martin pepper from the university of arizona. in the markets, banks are basically flat this year, but goldman sachs says there may be room there for them to boom even coming up. fast money" traders weigh in after the gain today, and the

microsoft ceo details the strategy to succeed in the increasingly competitive a.i. industry coming up right after this

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- anncr: prevagen. healthier brain. better life. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. news on the nafta negotiations let's go down to washington, kayla? >> reporter: u.s. trade team back from china, nafta talks restarted in earnest with mexico and canada back in d.c., and the economy minister left the meeting with the ambassador saying the countries are

advancing towards the goal of a nafta deal, working all week to reach that deal, and he said he had what he called a conceptual discussion with the top trade official today in washington, the technical teams are working on fine print throughout the week, so we'll see whether that, in fact, does produce a deal, but some optimism from mexico as we round into the final corner of the nafta talks we expect canada's foreign minister to approach the building in any moment, and if she says anything about a potential deal, we'll let you know back to you. >> thank you very much time for a cnbc news update with sue hi, sue. >> hello, thank you so much. this is what's happening at this hour, everyone president trump says he will announce his decision on the iran nuclear deal at 2:00 p.m. eastern time tomorrow. he faces a may 12th deadline over whether to uphold the 2015 nuclear deal, which he's long criticized a judge ruling that 11 more members of a penn state

fraternity are to go to trial over the death of a pledge in february of 2017 the charges are in connection with the death of a 19-year-old timothy who died after a night of hazing and drinking at the fraternity he was pledging the department of transportation is, again, urging owners of vehicles with detective air bags to seek repairs immediately. the agency singling out forrangforrangd series and mazdas from 2006 now under a do not drive warning egypt's government want tourists back in the country and showcasing ancient treasures, a military chair yacht is being moved to a new museum in cairo, and tut ruled egypt basically for ten years until his death at the age of 19, which was just about 1324 bc. would love to see that you're up to date, kelly, see you tomorrow, back to you. >> sue, thank you very much.

artificial intelligence is one of the hottest buzz words in silicon valley with companies rushing to get in the business phil lebeau has the latest developments in a.i. vehicles, but we begin with john ford, who sat down with microsoft's ceo talking about their strategy, jon? >> that's right, talking about how artificial intelligence goes from a buzz word to generating revenue and profit take a listen. >> i think of microsoft, so proud of our achievements in speech or object recognition and reading and comprehension. to me, what defines business success is our ability to translate that into a set of platforms and tools that are commodities. this is the funny part it should be possible for any developer out there in any company at musk, a.j., any of the companies we work with, to be able to become an a.i.

developer. >> okay. >> because when we achieve that, at least for microsoft's business model and our identity, saying i have speech recognition that's record breaking is no good i have to give it to chow mein, so they can build a translation device, that's a breakthrough, and that's what we are focused on >> developer conference that microsoft kicked off today with the ceo, so important to their strategy, kelly. >> jon, i also recalled his big bet on box recently, that he was talking about, and, also, because of their a.i. strategy, but that's still different, i mean, what they are doing with ai is different from microsoft, right? >> in a way, it is, we talked about platform companies to succeed, you need a lot of data centers worldwide with computing power or data sets microsoft arguably has both.

box, in particular, seem to be based on the data they store, kelly. >> yeah. and regardless, it seems like that's where everyone wants to be jon, great stuff, jon fortt. auto makers are working hard on sev self-driving vehicles, and phil lebeau is looking to turn traditional cars into autonomous ones safely. phil >> reporter: artificial intelligence is an interesting area when it comes to autonomous drive vehicles this is a mini van by drive ai, one of three running down here in the dallas area in frisco, texas in july. deep learning artificial intelligence allows the drive i van to navigate quick lly and mp quickly and learn what's out in front of the vehicle on the road the target, last mile short trip where people in the past decided, okay, i drive 5 miles

in a fenced area, and the ceo says if you think our autonomous drive vehicles will be everywhere and it's coming around the corner, relax he says we're a long ways from that >> i think it is one of the common misconceptions. where it starts is in geofenced areas. that means it's going to start off where we are heavily mapped it, know the car >> reporter: timely, look at drive ai, one of several tech companies out there raising money. it started in 2015; raising $77 million in funding, not only testing autonomous driverless vehicles here in texas in july, but doing work in california and a lot of interest in drive ai, and also kelly, this is what they focus on in the future with autonomous drive vehicles, deep learning a

way for the vehicle to learn faster >> you're effectively in the dallas metro area, right frisco is near oklahoma. >> reporter: yeah, yep and the city of frisco said we'll do it in a geofenced areas, the vehicles drive a designated route it is an office park area, a lot of corporate headquarters, and from there, they expand. this is not like you and i can sit at home, oh, let's call a drive ai we are not close to that yet, still in the geofenced areas >> all right not close yet, but getting there, phil, thank you very much. >> reporter: you bet goldman sachs' bullish call on the banks, and whether they are buying into the names, and later, thousands of restaurants, stores, and movie theaters are required to post calorie counts from obamacare siss lern e otential impact on buneesat oth"closing bell."

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headlines on apple to bitcoin, at berkshire's meeting. >> we're not buying a stock, we are buying 5% of a business.

we buy 100% of some businesses, and when they are publicly held, we buy 5%. bringing the same thinking to it >> bitcoin is worthless artificial gold. >> looking to jump start coffee business, paying $7 billion to starbucks for right to market products around the world. >> it's a big growth opportunity. oil topping $70 fsht first time since 2014 >> dow is better than it looked awhile ago we have a news alert with citi >> the u.s. bank appears to be the latest target of value act capital. activist investor reportedly built a 1.2 billion stake in citi group according to the "wall street journal" posting moments ago. that is based on a letter the journal obtained saying that it did not call for any strategic

changes, though, it suggests the bank could repurchase stock as much as $50 billion from $$40 billion. citi told the bank, quote -- they told the journal, quote, we have been having constructive conversations with valueact and welcome them as investors. valueact has a history of investing in financials last year, disclosing stake in kkr and years prior to that, morgan stanley. >> thank you for more on this now, joining us the "fast money" traders, citi up 1.5%, jeff said in the interview a week back that he thought based on the valuation, these banks could return 15% a year, which is what valueact is looking for. they only have a small portfolio, and now goldman is out there today as well, brian, upgrading names. what do you think of it all? >> right big thing with these is you're

talking about the interest rate increase, right? the question you ask yourself, is the interest rate increasing because the economy is getting better, starting to see signs of it, or is it because you talk about oil and inflation's higher if you believe the economy's better and short end of the curve is higher, then you want to buy the banks, and i think that's the crux of some of the upgrades in the banks. >> guy >> i add to that >> go ahead. >> because that's what we do here, kelly, as you know, citibank is right now, last quarter, book value was $7 is1 share. correct me if i'm wrong, one trading at a discount at book value or around par. put a reasonable multiple of one and a half times price to book, you are talking about $100 stock. in my world, you got to look at the following metrics. all about price to book value. goldman sachs, for example, i think last quarter their book value was $106 a share

in this environment, a reasonable price to book is somewhere between 1.7 and 1.8. 330 stock. i was doing math in my head. >> wow >> that's how it works yeah >> when you have a long term investor like valueact come in if it reminds you you don't have to obsess every day about which way the yield curve is moving to own these names. >> rationale here with valueact is that they have been in a market position in areas people do not talk about as much in the corporate services area, transaction services guy called this incorrectly citibank, but citigroup looks like old citibank, it was limited retail presence in the u.s., and i do think it makes sense, you know, on that basis, and, also, goldman call was the cycle would be longer, so no worry of credit being a problem. >> that's the old school me, mike, don't get on my grill. you were condescending, it was

subtle, but i like it. i'm a product of the '80s. i still bank in manufacturers. >> handym many over there >> i don't know that i can top that >> brian, guy, thank you both very much. there's a lot more coming up top of the hour on "fast money", all the action begins at 5:00 p.m. eastern. new rules might have you thinking twice about the food you choose at your favorite restaurantancoenncs d nviee stores that's next on the "closing bell." (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network

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releasing a statement responding to valueact's stake, it was just disclosed here, saying we've been having constructive conversations with valueact and welcome them as investors and citi shares up 2% now on the back of this news calorie counters, rejoice. huh, a new rule taking effect today as a weight watching push. kate rogers is in new jersey with the gory details, kate? >> reporter: hi, kelly that's right you might have noticed in recent months, years, a lot of the favorite chain locations have been displaying calorie counts like you see here up on the menus. well, today is the deadline day to comply with labeling requirements for restaurant, groecery store, or movie theater that has more than 20 locations nationwide and sells premade food now, the rule is part of the affordable care act. implemented back in 2010 it comes in a time when more and more consumers are eating food outside of the home. the fda says customers, you

know, they should be required to are access to calorie information and consistency, and when people know how many calories are in the food, they make healthier decisions on what they are going to eat. >> yeah. i think the calorie count posted up is a good thing because you get to see what you're eating. >> it's good at, like, we are knowledgeable, but we're eating. >> i don't pay attention to the calorie count on the menu. i just order what i like to eat. maybe if i was trying to lose weight, i'd pay attention to it. >> reporter: now, the fda has said they will not be penalizing businesses that are not in full compliance for the first year. they are going to work with them to ensure they are compliant eventually, and we note that businesses have been doing this for years, back in may of 2017, and mcdonald's began their information back in 2012 kelly, back over to you. >> i mean, it's not that scientific, especially in a

place like chipolte, so specific, you know the carnitas has 210 calories slightest change of what you have in the ball, it's not precise. >> reporter: it is, but i do completely understand where the fda's coming from because when you see how many calories are in a lot of the different things we ore, it makes you think twice. do i need the extra walk, the cheese, whatever it may be, so i think it's all about trying to make consumers, you know, enable them to make healthier decisions, for sure. >> makes you realize the chips are a high calorie >> new york city had the rules for a while. >> yes, used to it >> the scariest thing is 2500 calorie order of popcorn >> kate, what were you going to say? >> reporter: i said, you can't compromise on chips, so i don't care how many calories are in them or the guac >> that's a must, thank you. i love that too, kate rogers for

us nestle bet on starbucks. that's next. on "fast money," a top technician saying there are three retail names to buy right now. they'll tell you what they are o, and actually be more diverse. as investment management professionals, let's measure up. cfa institute. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ let's always put investors' needs above our own.

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walking away from the packaged goods time approach. >> they get a one-time payment but that's it. >> maybe the idea is it's an asset, light, quote, type of play you're going to focus on the core business. >> the big splash by nestle. a potpourri of bonmots from charlie monger here's monger on china he's bullish he says the best companies are cheaper than ours. on health care universal single health care payer is coming as soon as democrats have control of the congress and on apple mike munger said, this surprised me, i wish we owned more of it. >> high conviction on all of those points what i think is amazing is when you hear him speak, to an extent warren buffet as well, the combination of patience and aggression

you're patient until you find your aggression. when you find something you don't -- >> wait for the best one and swing for the fences. >> 75 million shares for him wasn't enough to buy apple. >> we know they had to probably agree on this one. we know buffet likes it. to hear charlie munger who has chastised buffet for the ibm, for steering clear of stuff they don't know about which is as important as anything. they are doubling down on this apple thing. it's amazing finally, forget precious metal as a store of value and try vanilla. the spice is up six fold over the past six years because the supply chain is going to madagascar they make 85% of vanilla it costs more than silver. are we in a vanilla bubble >> we have obviously a major supply issue one encouraging thing about this story is that i guess we really use real vanilla theoretically there's a

chemical. >> maybe that's why we haven't seen more of an impact if i'm not seeing the price change in my ice cream shop then i know that it probably isn't real vanilla. >> they're putting in some kind of speckles in there. >> the flavoring i don't even know if the little bottle i buy is real vanilla. >> real. it's really concentrated extract. >> it's fascinating. >> i i'm going to be looking now. stocks continue their climb higher today we will recap the names moving after hours. and today's headlines for you. that's next. we had long deployments in iraq. i'm really grateful that usaa was able to take care of my family

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welcome back here's a check on the news making headlines after hours shares of snap are higher after announcing the current cfo will step down and be replaced by tim stone. zillow shares under pressure after they issued weaker than expected second quarter revenue. did beat wall street's first quarter earning. hertz even weaker. they are plunging after they

reported a larger than expected quarterly loss was down 10%, and cocoa prices are up, not just vanilla. >> all these inputs to desserts are up around the world. >> i'm not noticing it in cookies, chocolate chip ice cream. >> in microcosm that's the problem with corporate profit margins. that's the concern met call costs are up. >> interesting to hear warren buffet talk about consumer staples. he kind of acknowledged consumers are not as sticky and habit forming and the retailers have the leverage. i'm trying to think how they're going to change, if they are. >> he didn't seem to have a sense of urgency like they have to rethink their bhis. the brands are good, companies have leverage just not like they used to. when you have a cost basis as low as he does in things like coke and to kraft hines you don't have to worry too much

about it they own a little bit of costco, berkshire hathaway >> it seems like a good berkshire fit. it's a subscription fundamental serge ri. >> munger is on the board. >> that helps. >> michael, thank you as always. that does it for "closing bell" today. thanks for joining us. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking "new york times" market square, i'm melissa lee tonight on "fast" the billionaires bash bitcoin. the oracle of omaha calling bitcoin rat poison squared he'll explain what buffet is getting wrong. plus, turns out tesla might need more cash. we'll explain why the electric car company could be raising more funds sooner than you think and what it could mean to the stock. first, we start off with a tweet that turned the market today president's looming decision on the iran deal. let's get to