stocks are down in part because bond yields are up, 10-year note yield now 3.08% high as it's been in seven years. >> maybe it's due to north korea headlines. thank you for watching "power lunch," and "closing bell" starts right now >> i'm wilfred frost, and coming up, markets set to break an eight day winning streak, and 10-year treasury yields hits a level not seen in seven years. i'm phil lebeau in arizona, after a series of accidents around the country, is the development of those vehicles slowing down cnbc headquarters, home depot misses expectations, details on what it means for housing and key retailers reporting later this week. >> in las vegas, the ceo of caesar's spoke with me minutes

ago for the first time since the supreme court landmark ruling on sports gambling. find out where he stands >> i'm kelly evans, uber and lyft recall what some call a shockingly shameful policy we have the next level of tech and communication as "closing bell" starts right now and, welcome, everybody. we'll get to all of those stories in just a moment along with the latest news that we're just getting out of north korea, but first, stocks have the worst day of the month, dow back in negative territory for the year now. >> down 270 points at the low of the session. the s&p and nasdaq at this stage, as you can see, both down the best part of 1%. let's get right to our reporters following action for us, bertha coombs at the nasdaq, but

first bob pisani >> eight days is enough. we are tired because we had a nice run, but this is inflation concerns that are picking up concerns too eight days, and retail numbers, a lot of attention because gas prices move up, inflation concerns, and empire state survey, survey of manufacturing in new york, input prices highest in many years. there's a double whammy on the inflation front. this was a major issue because both of the reports, retail sales, empire state, look at the futures, coming out at 8:30 in the morning, and saw reaction in the markets. look at that mini contract, immediately at 8:30 eastern time after that, there's the decline right there. so that's obviously what's been going on we have not recover. sitting essentially at the lows for the day. this is very, very different than the total decline we saw back in february remember that big concern on inflation in february? look at this we drop 50 points, 500 points in the dow. that day, on that friday, jobs

report came out, volume huge, and today is different, much more modest decline, and vote yum is lighter the question now is, are the markets starting to get used to the concept of higher rates and potentially higher input costs and inflation rates? i don't know this is a much more moderate response than we've seen you think banks go up, regional banks up, but modest declines here in the emerging markets, dollar's stronger, home builders, of course, down big on this the concern here, and reits, and utilities down, all somewhat predictable you see the regional banks up, they are all up 1% roughly here, a predictable response here's an interesting question, though maybe we go up on rates and maybe this is because the economy's getting better and not necessarily because we have a lot of commodity costs as well, and that would not be a bad thing, look at q2 numbers here, 3.6% is the estimate for the second quarter gdp, better than

first quarter gdp. i don't have the answer, but it's a huge victory tomorrow if we end modestly on the upside on moderate volume, showing you the market is starting to get used to the idea of somewhat higher rates. i don't know how much higher it can go here, but that would be a big victory. let's see. >> quite a one-day move, that's for sure >> dow down 240 points, bob pisani, thank you very much. the nasdaq composite on track for the worst day of the month as well. we go uptown to bertha >> the nasdaq is up more than 6% for the year, but edging lower for the second day here in four, after five straight days of gains. we really saw a nice runup when it came to large cap tech, which really helped lead the way up on the rally. taking a breather, and apple has been at the core of it, down through the third straight day, and, remember, the tech snap giant is coming off a nine day win streak after those strong earnings and then the, you know, good housekeeping seal of

approval from warren buffet, led it to a record, above 190 last week, so it's not surprising we see a little bit of a bleed, and overall, large cap tech lower today on moderate volume, not seeing a real sort of strong conviction of selling. the strong run over the last couple weeks really makes sense. bucking the trend today, though, a couple tech stocks, symantec, upgraded from hold to under perform after new guidance and completion of an audit there, western digital buying back 155 million out of the $1 billion in buybacks, and also today, ulta upgrading, seeing upside potential on expectations for stabilizing comps, store comps growth those are month to month comps, back to you, kelly >> thank you very much bertha watching the nasdaq for us north korea just cancelled a series of talks with the south koreans over american military

drills in the area we bring in hans nichols from the pentagon with the latest move >> reporter: i reached out to several officials who are completely blind sided by this announcement from north korea that they are suspending talks today, wednesday already in korea, between north korea and south korea. the stated reason is that there's ongoing exercises. there's something called max thunder right now. it's what you expect, a huge display of force in terms of air force of the two countries working together officials say you need to do spring exercises to ensure interopera interoperateability and maintain the alliance between south korea and the united states of america. the assumptionfu was spring activity would continue. it's a surprise. i have to say quickly, in terms of the rhetoric that's coming out of north korea, it sounds like some of the older rhetoric

from kim jong un he said, provocative military ruckus that is language harkening back to a previous time we have a significant development on our hands, guys >> hans, not to mention the drills have been going on -- so why today? are they suddenly becoming an issue? >> reporter: yep >> could the north cancel talkintalks with the president >> reporter: we don't know that. we don't know why they called this out it's been long thought out, several months, and we don't know whether the june 12th meeting with president trump in singapore will be cancelled. calls into question when you look at the language and rhetoric from north korea, but to be clear, what happened today is they cancelled a meeting between north and south korea in the cease village in hours in the demilitarized zone there, and wlomphether or not the largr conference and summit with president trump is cancelled, we don't know yet, guys >> hans, talk on the u.s. side

now of cancelling drills, south korea putting pressure on that situation as well to say, then, you know, we wouldn't move forward with exercises >> reporter: yeah. they have been clear in the past we have to continue to do the exercises. now, it's possible that the exercises, themselves, have become part of the negotiations between the white house and the north koreans. the template going into this was always that in the assumption was that the spring exercise -- which take place over two to three months, shorten them or lengthen them or delay them because of the olympics -- these exercises would always take place and segregated from the overall negotiations back and forth. that was the clear signal from the north koreans, south koreans relayed that mike pompeo indicated they would continue what we have today is a change in posture we have to wait until the entire united states government, pentagon, state department, and white house figures outs what it means and what the response will be guys >> hans, thank you very much

keep us up to date dow down 236 points, not too much impact there from the news on north korea rates, aboved 3.08% earlier, off of that a little bit of the we talk now we talk with james and just starting with you, what is the market's posture here, you know, we're coming off a strong run, but we got a triple threat right now. we got rates and dollar and oil moving higher. what are your thoughts >> right well, we continue to believe this market is keenly focused on fundmentals so geopolitical events, the mueller investigation, et cetera, et cetera, are not moving the market, but interest rates, uptick in inflation, and most importantly right now, the risk of trade war escalation, and we won't know how this gets resolved for another month, and

i think that's been the biggest roadblock. our belief is that the market is really adapted quite nicely to a treasury of 10-year at 3%, and, in fact, inflation may be 2.5% >> samantha, do you agree with that we had flirted with the level, 3.03%, and today, we jumped right above that perhaps these are the effects. >> rates have gone up quite a bit and the market took it in trade. you can get to 3.5% and it would not fuss markets get up to 4%, and that starts to be punitive for stocks >> so you don't think the markets really, you know, are going to do poorly until we get more 4% range? >> right >> the 10-year - >> closer to 4%. earnings are driving the market. i think there's an interesting disconnect between the earnings data and sentiment because sentiment data is not that good. >> okay. it had been so good. it ran way ahead of the earnings

and now correcting, and coming back down to normalcy. >> right we see that most investors are more in neutral. there's more bears, less bulls, but the earnings data suggests otherwise, but it could just be a function in a later cycle. >> thank you, guys, thank you, wilf has more on the floor >> joined by kenny from neils security kenny, firstly, korean news hurt the market >> has not moved it at all, right where we were when the news came out. folks are not concern about that >> in terms of the selloff today, best part of a percent or so, what's the main republican t -- reason the market is pointing to view >> bob said it right it's the concern of rising rates and now inflation. remember, last week when cpi came out, it signalled benign inflation, and they took the market up, right they reversed debts, negative debts, taking the market higher. this morning, we have empire state and other data that's reflecting maybe, you know, inflation is done, not as benign, and you see the market

back up. >> is the market right today are we going to get a big surprise in inflation in the next couple months or pick up slowly >> no. i think there's a shot we get a big surprise of inflation. i think, you know, we've been -- we've been feeding it and feeding it and feeding it, and then we're going to get a big move in inflation, which is what i think the market is concerned about. if we keep getting that kind of steady, very slow move, then maybe not, but if we get a bigger move than expected, i think you're going to see the market run into head winds >> kenny, as ever, thank you very much. >> always. >> kelly, back to you. >> good stuff. shares of tesla are lower on a report from reuters that tesla is shuttering may 26-31st. they had warned of a shutdown production to address manufacturing problems we bring in gene munster on the newsline what's the significance to you

>> caller: it's a big deal as you said, this company articulated this would happen, the shutdown this is why we have -- if you believe in tesla, why you should be happy they are shutting this down is that they have outlined this self-proponent manufacturing hell they are going through in building the model 3. that means they trying to reengineer the manufacturing process, and so to actually do that requires you to understandably stop the manufacturing line what they are stopping and what they are replacing it with and close to what's going on here is that they acquired a company in jeremy last year called goldman engineering, and what they are importing into the manufacturing line is called nesting we don't have time to go through what nesting means i encourage people to look it up, but it's a whole new pair dime around manufacturing that can yield a much faster throughput, good for probability, so the quick

takeaway is they expected this to happen. i'm delighted they with going down the road of implementing this nesting technology into manufacturing. >> clearly, gene, the stock is down today, albeit, down best part of 3% for most of the session before this news came out. the other story of late is management changes, whether or not those are senior executives departing against the wishes of the ceo, or part of a broader restructuring plan what's your take on that are you concerned about the lack of leadership at the top >> caller: so, elon musk is deliberate at stepping in and taking more control of the company in the last few weeks, and this internal e-mail, and i say the word "internal" tongue in cheek because he wants the world to see him taking over the next three months is a critical window for tesla's success. he's hands-on. i'm comfortable they are moving in a good direction. the manufacturing shutdown is evidence they are moving in a good direction

separately, it's never good when you lose people, and so i think that i would rather them given the choice, musk taking a bigger role i think that that is what's going on, and i think that's the best outcome, but i think there does need to be a slowing of the door on the top level for tesla. >> shares still down, about 3.5% gene, thanks for the time, talking about your view on the company. >> caller: thank you >> gene munster, from luke ventures dow down 250 points, steady although we got the headlines of north korea pulling out of talks with the south koreans tomorrow. took the 10-year down a little bit, still high, made a huge move today, and two-year at the highest level in a decade. "closing bell" is just getting started. next up, the future of the autonomous vehicle industry is being tested at this facility in arizona. when we come back, a look at how they are trying to solve the

problems of the real world amazing inside access straight ahead. plus, what the people who read charts and graphs see about the future of the stock market that you don't this is the "closing bell" with kelly evans and wilfred frost live from the new york stock exchange exchange we're back in two minutes. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won' because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered...

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and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. welcome back to "closing bell," and we are checking in on individual movers today, in particular on the auto sector. we already told you about tesla's model 3 production, but not the only thing hitting the stock, morgan stanley cut the price target to 376 saying its trading around fair value at this stage, down about 3% for the entire session same with autos. ford's receiving a price target cut two $12 from $14, and the firm downgraded stock to neutral over concerns the autonomous

vehicle segment will not translate into revenue growth. it was down more sharply at the open, but recovered and basically flat at this time. ford faces challenges with autonomous technology, the state of arizona is in the fast lane when it comes to self-driving research and development, even after that fatal crash phil lebeau has more from chandler, phil >> reporter: we talk about autonomous drive cars, but this is olly, autonomous electric shuttle. it's manufactured by local moe to -- motors it rempresents what we see in th phoenix area, more and more autonomous vehicle development, and as we go around this ride here, there's no shortage of these vehicles these are way-mo self-driving vans, and you see them on virtually every corner they are going to start an autonomous ride share program later this year. not surprised if that includes

here in the phoenix area we also stopped by intel's facility here in the phoenix area as they are building self-driving cars. some will be tested in california, some of them will eventually be tested here in the phoenix area as well, and as you look at olly, keep in mind, one reason why olly is being built here in the phoenix area because there's so much talent developed here and the environment that's been created not only by the governor, but also by the cities around here saying we want to relax the stringent regulations. that's a reason why you see so much talent with autonomous drive vehicles collecting here in this area >> tragic fatal crash in arizona a few months back, there was talk about whether arizona might want to change relatively loose regulations on the sub sector. has that been forgotten already? >> reporter: it's not forgotten, wilf, but they are cognizant you

can't let people drive around without any regulations. uber's program suspended by the company and governor said we want them to investigate the crash before reinstating testing here in the phoenix area they are cognizant you can't have vehicles driving around without regulation, olli is not on public roads, but they will have them on public roads at some point when we talked with people, wilf, almost everybody says the same thing most of the vehicles seem lie they are following the rules, no problem with it, and they are not 100% sold, but they are comfortable with it. >> well, impressed by that i don't know if i would agree, and they are the ones there on the front lines so to speak, and that shuttle reminds me of, like, at the airport, and the gate is way off, and you got to, you know -- well - >> reporter: that's what you see. campus community >> yeah. it's good. just, you know, not the best kind of -- >> you know, phil, i want to

check, that gentleman is a fellow passenger, also driving >> reporter: he's part of olli staff. they are still developing this, wilf, so he's here, consider him somebody making sure we are going where we should be going as we are inside the olli. >> but he's not there in the future, of course, if it all comes together phil, as ever, thank you >> reporter: the plan in the future is fully autonomous, thank you, guys. >> phil lebeau there for us in arizona. we got about 37 minutes left until the close. we are down about a full percent for all three of the indexes, just shy of it for the s&p low of the day on the dow so far has been 270 points, and at 252 right now. coming up, with a bilateral bro-man solve america's trade tensions with china? what larry kudlow said about the president's relationship with his respective president in china. shares of home depot fall after estimates miss the street,

earnings missed, estimates this morning on earnings. we're discussing what it means for retail sector and health of the housing market stay with us you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. ♪ i just want you close, ♪ where you can stay forever.

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welcome back to "closing bell," i'm leslie picker, digging through the 13s filings, filings hedge fund managers

disclose showing positions at the end of the quarter we received one from tiger global, one by chase management, showing interesting moves in the tech world facebook, twitter, netflix, microsoft among the cost positions in the quarter added a call on facebook, about 765,000, increased the position by 2.5 million shares in facebook they took a new stake in twitter, about 9.5 million shares worth most of the stake in microsoft by 3.6 million shares to 13.2 million total, and also took a new stake in drop box which went public in the quarter, about 200,000 shares there, a rather small position, and in sales force, they tripled their force in sales force, but not all tech saw the same kind of boost alphabet dissolved class a, b, and 50,000 calls on class b shares of the parent company of google and dissolved 2.4 million shares of etsy

first quarter holdings was pretty volatile quarter, especially for tech companies, so it looks like tiger global saw that as the puopportunity to buy in >> great stuff, thank you, leslie picker. when exactly they did that in q1, given the bounce in april. >> surprised they dissolved google entirely. interesting. moving on, time for the quote of the day, coming from national economic counsel director and friend of the show, larry kudlow, he discussed trade with china and strength of president trump's relationship with chinese president x xi jingping. >> there's a bromance between president trump and president xi where it leads, i don't know might lead to a trading deal this would make me very happy. >> and do you think the bromance is a good thing? >> i do.

bromances are always good. >> one thing we know is the president has been looking to xi jingping to resolve this north korean issue that felt like it was moving along until an hour ago when we got words the north is cancelling talks tomorrow because of the ongoing u.s. military exercises with the south. >> to larry's point, bromance is a good thing, so when there's disagreement on policy, there's a dialogue going >> yeah. >> i think that's certainly more than we've seen between u.s. and chinese leaders for most of the last two decades or so >> might be with russia. do you have any bromances you need to report >> oh -- >> whitney houston does not count. >> no, but i like the music. >> we learned your favorite love song >> in fact, we tried to sing it. pulled the microphones >> i have nothing. in case you were wondering >> really stuck in my head >> 30 minutes to go. moving on, shall we, into the

trading session. >> two individual stocks to watch. >> up first, amazon, shares down 2% today, company's hometown seattle approving plan yesterday taxing companies like amazon about $275 per worker per year to pay for affordable housing and emergency homeless services. if you think that's not a big deal, here's a quote from the vice president of the company. we remain apprehensive about the future hostile approach and rhetoric towards larger businesses, forcing to question our growth here. if you want less of amazon, even as it looks already to create a second headquarters, then tax it by the way, this is the 21st anniversary of amazon going public >> really? >> learned that from "power lunch. >> a transformational company. amazing it's been around that long, of course it has >> making the point the relative 10 year of an s&p 500 is down sharply. >> down 2% my stock of the day is keycorp

just really the broad point that the sectors spending better, financials negative, all 11 sectors are negative, but regional banks have a pop, and that's 1% pop there, and for the regional banks, a real standout given the markets are down 4%, and, of course, it's linked todd fact that yields rise, and retail banks are clearly benefitting. >> and art has been emphasizing all day. it's not just the 10-year, but 2-year yield at 2.5% and higher is significant >> i point out as well, the likes of goldman sachs, bank of america, fractionally positive because of its small retail bank exposure, benefitting from rising rates, and smaller regionals have bank exposure and up today time now for a cnbc news update. court? >> here's what's happening at this time. part of what you discussed, north korea is suspending high level talks with south korea that have. planned for tomorrow, citing joint u.s.-south korean military

drills pyongyang calling those exercises a provocation amid improved north-south ties. and smokey robinson appearing before the judiciary committee with support from music lends calling for copy right and legislation reform to compensate musicians who reported before february 1972. >> i know a lot of musicians and producers and writers who are have fallen on hard times and could really use that money. it's a livelihood thing. it's not just about music, but it's about lives >> and seattle mariners all-star second baseman cano suspend for 80 games for violating baseball's drug policy he tested positive for a diet representic. he did not realize it was a

banned substance that's the update for this hour. back to you, kelly >> i don't know whether -- i don't know anything about substances, but isn't coffee one? >> yes and a lot of other things, but perhaps it was concentrated or you can inject it, i don't know details, but, yeah >> 80 games, though. >> that's a lot, significant >> a big deal. >> thank you less than a half hour to go, dow down 241, home depot is not helping, and the dow and nasdaq down 1% right now. russell, though, is almost positive, down just a point. coming up, eight dane win streak is in jeopardy. is today's market action signaling downside >> ethics, supreme court decision, and weighing in on the potential for corruption and scandal in college and pro sports that's and more still to come on "the closing bell. ♪

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we better see you at the royal wedding. watching we have time for a closing bell exchange, joining us, renee north, and steve grasso, and rick santelli at the cme in

chicago. rick, everyone's worried about rising rates today, talk us through the moves seen and what's driving it. >> well, you know, when it comes to rising rates, the notion is, hey, it's a good thing, rising rates are good that is mostly true. remember, to make it mostly good, you need wages moving up, input prices moving up, stock market moving up, and data moving up, and interest rates moving up, but as part of the equation becomes central banking issues, fed issues, and the notion central banks need assurance against the future slowdown, that part of it can be a bit bothersome technical technically, this was a huge day. i can't tell you how huge it is. 3.03, a big area, one day, last day of 2013 we had that close, nothing above it since, and prior to that one day in 2013, all the way back to 2011 go to the charts as you look at the charts, this is a one-month chart of 10-year. everyone watched the red line.

it really is 3.03. we're at 3.07. closes above, i think we're safe takeaway here is the market punched through a key sector [ laughter ] >> amazing >> who is that man behind the chart? >> the whiz. >> all right, let's bring in steve grasso how big a deal do you think it is we are down. >> i feel like i should just pass i didn't bring a chart >> that was a strong punch >> no one's punching through this the whole thing is just, you know, fair point so i think, you know, obviously, everyone talks about rates and the dollar today, and everyone talks about the overall market giving a little bit back, and, you know, jamie dimon was on record awhile ago as saying he thinks rates are going to 4% david keppler said it's 3.50 or 3.75 and 4% is too much this year when you welcome at it, where does it impact the markets

everyone looks at that round, big fat number of 3%, it's probably more like 3.5 or 3.75%. it's trying to make the market understand, hey, don't worry yet. i think that's what the market is trying to absorb today, trying to get back on its footing. you have oil, the dollar, and you have yields rising, and the market needs to digest that. >> i think david thinks 3% is the trigger to buy an nfl team >> that's true, it's true. >> renee, what is 3% the trigger to buy for you in terms of sectors attractive, and regional banks outperforming today. >> regional banks are great, independent broker dealers, but everyone's focused on interest rates right now, what it means to the economy, and i'm looking in a different direction, and one of the things that is happening in the last few months is this whole issue around cyber security, and i think this is a great time and a great opportunity to get engaged in

that space >> what are your specific likes, renee? >> well, first of all, just way of a backdrop, gardner is estimating that on a global basis, we're going to be spending $200 billion in just the next two years jpmorgan chase doubled their budget from 250 million to 500 million. facebook has been in the spotlight, and they hired 10,000 people to be focused strictly on cyber security rather than identifying the best one in that space, i like the eft, hack, a perfect word, and cibr, c-i-b-r, and so hack is probably a better one right now because they are small and medium sized companies, benefitting from the tech job cut act, and that space is actually bubbling up, up almost 20% year to date

>> all right >> as a group. so i like that space i like to be in both of them because cyber is more large cap. >> steve, quick comment on tesla. you held that recently, down 3% today. >> buying more today >> i thought about it, but i don't want to show my hand too often with my own portfolio. it's not secret, but i save bullets in case the selloff gains traction and we trade lower from here. that adam jonas piece has been out there already. that's no new data coming down from 376, he had to put another price target, bring it down to 2 the91, his responsibility to do, but i don't think there was any earth-breaking, earth-shattering tells in what he came out with today. i am still looking at buying more but i have to see if it holds these levels >> steve, great, thank you, rick santelli, rene north, thank. >> thank you news alert on adp. leslie picker. >> that's right.

two big hedge funds have taken small positions in adp according to a person familiar with the matterme men matter shaw has been increasingly becoming more of an activist investor, and sachem head was the first analyst hired at persing square last year, and ferguson had previously targeted tdk, a spinoff from adp. the two hedge funds have talked to the company, this person told me, it's unclear whether there's any kind of activist engagement on either side at this time. i say the big akeaway from the news is that it's potentially more pressure for adp ahead of the analyst day, june 12th, bill ackman spoke about this on the call, hoping for efficiency announcements from the company on that analyst day in a couple of weeks now, i have not yet heard back from adp for comment, representatives for the two hedge funds have declined to comment, but certainly one that

we're watch as the filings trickle out this afternoon guys >> leslie, thank you separately, june 12, the state department is operating under the notion that the kim-trump summit proceeds as planned, and that it continues to plan for that summit, has received no information about north korea about threats to cancel it. >> that happened just before the start of the show, and markets remain flat where they are, down about a percent or so, 246 down on the dow 1 p7 minutes to go, russell down less than a point right now. up next, what a technician sees in the chart, specifically in the 10-year. home depot slumps after missing earnings forecast. we'll discuss what this signals from the housing market. back in a couple minutes

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is welcome back to the "closing bell," dow down 256 points time for technician expertise. jeff is with us, macro research, kicking off with the 10-year clearly, yields rising, but on a long term perspective, rising as much as we feel like they are?

>> a lot of people are talking about it obviously, right? put in perspective the long term down trend all the way back to 1980, right? we're talking about a yield that is in a down trend, comes into play at about 3.20 until you break that, in our perspective, it's a long-term bull market. people are trying to call the term, but you have to break the down trend before you officially have a break in what's been the secular down trend in yields >> we got that uptick, we have not clorossed the line yet. >> exactly right >> home builders are feeling the heat on this >> very sensitive to interest rates as well as utilities and banks, all doing what you would expect you got this breakdown in home builders here. they are on the verge of crossing with a 50-day through the 200 day, which is an conclusion, simplistic of a down trend, so it's one we want to take a step back on and not press on the consumer discretionary space, better

places to place like restaurants and some that are late cycle >> and talk about the balance between the small caps and big caps there's a chart on microcaps >> there is a -- there's a contingent about breath, and breath looks good generally. the question is what's happening to smaller names and the average company? the microcaps are a good way to view this. we have not quite broken out yet, but, clearly, this is a stronger chart than what you see on the s&p usually, what's good for micro-caps is good for the economy as a whole the idea that 3% is somehow going to choke off the economy, you know, might be a dollar play, something else that's driving the s&p, so my kra-caps are good, and when they look good, you are bullish out there. >> goes back to june 2016 last year, a nice trend overall >> nice trend. >> generally speaking. look at that, best line i've ever drawn on this, thank you very much, kelly, back to you. >> that is a thing of beauty anyway, 12 minutes to go into the close, dow down 255.

when we come back, mike santolli has the biggest laggard. >> big company in the quiet rtpa of the tech industry the stock on a great run the last few years, but a tough day after earnings after earnings name and details when we return. ♪ and let me play (bell ring)

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welcome back, eight minutes left of trade. here are the laggards in the dow. cat down 2%. pretty broad there the best part of 2% declines, i intel intel, 3m, as well >> mike? >> here over at post eight, letter a is the ticker for agilent, organic growth, this has been a quietly extremely strong group, basically scientific instruments, technology research type instruments, a $20 billion company as i said, but worried about expenses going up, some acquisition-related indigestion and things like that it does not change the overall story, but shows how expectations were in a stock down 10% i will say up 70% over 14 months ending in january. clearly, a lot of air to this,

and analysts defend it today, but it's not working just yet, g s. >> mike, see you in minutes, thank you. coming right back with the closing countdown. >> after the bell, venezuela's economic crisis forces another major u.s. company to stop operations there we havthe ose details straight ahead on the "closing bell" as we're back in two. at&t provides edge-to-edge intelligence, covering virtually every part of your business. so this won't happen. because you've made sure this sensor and this machine are integrated. atta, boy. & yes, some people assign genders to machines.

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welcome back to the "closing bell" with four minutes left of trade. we are low we have been low all session we opened down, as you can see here on the s&p 500, intraday chart, couple attempts to break through meaningfully, held off, relatively encouraging given we have been lower all day. in fact, in the last half hour of trade, we gained a little bit, so now less than a percent lower, despite art saying we got 600 million to sell on the close. either way, clearly red throughout the session, and same is true not just for the s&p 500, but the dow and nasdaq. it was all lower, just less than 1% if we close down less than 1%, that would be a decent finish or so because we crossed below 1% declines over the course of the last hour or so. we are looking at the sector performance today. 11 out of 11 sectors lower for most of the season financials the best performing sector because yields are the story that spooked markets, rising yields relatively good for banks.

there are the indeed, lower. financials are the best performer, but still fractionally lower the smaller regional banks doing well, surprissurprisingly, depeg where you look, benefitting rising yields, and year to date, we got the chart there of the regional banks, up about 8%. the xls including all banks, up 2% year to date, so regional banks outperforming today. going to bring in bob pisani, yields impacted, the dollar as well, dollar paused a bit. >> the last three, four sessions, over the course of the last month, it flattened out for a week or so, but it's up again today, 07% and peru, some of the south afri africa, emerging markets were weak

we have come back a little bit today, highest volume etfs were bond etfs, treasury protected, that came back in a big way, heavy volume there, and some of the treasury, longer term treasury bonds were a big factor, and i think you mentioned the home builders weak on higher rates, but with all that said, this has a slightly different feel than february had a real freak oout about higr inflation, a similar issue, and market dropped, remember, 500 points on that day in february, february 2, when the jobs report came out today, the reaction is muted, volume is very much again on the light side, saying sellers are not bolting for the door the intraday reaction, appointmenting out correctly, not ending at the lows of the day, but bouncing along it feels qualitatively different. the test is, what happens tomorrow if we end slightly down fraction of the upside, that tells me concerns are not quite as great

as people might anticipate breaking that 3% >> we should point out, as well, that oil prices not rising today, but they are holding up relatively well, given this negativity and positive run they had and stronger dollar. we could see things like oil break down more. >> that's right. there's an area i'm concerned about because if oil is going up because everybody is driving more, everybody's fine, but if oil goes up because the supply is constricted, and that is what's happening, that could have a little more of an economic impact. i'm a limit concerned about that go to $4 on oil, you'll see the president talk about that, i guarantee it that certainly would be an issue. >> as you said, we are off the lows of the day, dow down less than 200 points now. this is an encouraging finish. >> yeah. watch tomorrow watch tomorrow if we end up positive, there's not going to be anybody talking about us slow sli sily sinking , and certainly not to 500, we did twice after the february

declines we saw and in april >> russell turned positive, and nasdaq down.07, and dow down 189 points, ringing the bell here at the big board is itau, and nasdaq is office depot we're down, but kelly's got the second hour. thank you, wilf, and welcome, everybody, i'm kelly evans, dow snapping an eight day win streak with a decline of just under 200 points. we improve on the bell from most of the day, low of the dow, down 270 points, and earnings from the home depot did not help. stock reacted poorly more on that in a moment you can see that decline in the dow was pretty much in line with the s&p and the nasdaq, all falling between two-thirds and three quarters of 1% today the s&p at 19 points, 2711, nasdaq at 7351, and dow 24706,

and russell, eking out just about a point gain watching that. closing at 1600 on the bell. bigger moves today were in reits. everyone from the two-year to the 10-year, new levels, joining me to talk about that cnbc senior commentator, michael sa santo santoli. caterpillar trailed, and s&p, mattel the leader, and agilent declined we talked about going over 3%, then got stuck, and today was nearly 3.1%. >> yeah. a couple things herement i men. it's been a process of highs in yes, the market has to come to peace with it.

so far it's not really caused any kind of rupture in the system, but raises cost of borrowing throughout the whole capital markets complex. i don't think anything changes in terms of how the market acted today because of what it's been doing, which is three steps ahead, one step back on to recover, and it's not a washout, right, it's not like everything down, it was not like the selling fed throughout the day, so we have to wait and see if it really is something that is a game changer or not >> and i don't know if this is the case of the terrible threes, but this is what happened today. interest rates rise, 2-year, 10-year, and the 30-year, dollar to the highest level this year, and oil rises, wti near 71 are those all three a stumbling block? >> look at the positive. rates rise because growth is back in the economy. when you see growth back and

rates rise with some inflation, that's not bad what the markets are trying to digest, how much is going to be inflationary and how much is going to impact the consumer because oil is not really that positive for the consumer, and if you get rates rising at the same time, does this slowdown of buybacks - >> takes a third of the tax cut -- >> right >> benefit away, and that is frustrating. feels like - >> for consumers >> for consumers look, the u.s., we have a great energy sector doing well, but we're still a consumer economy zblp with confiden-- >> with confidence the conception is they will not start spending, take the pe down, and shoot first and ask questions later. >> michael, that's why everyone is looking at consumer reports, whether it's retail sales, earnings as we get into the retailers, and, you know, looking for any signs of weakness there >> yeah, you're right, kelly

70% consumption economy, the u.s. stronger dollar is going to have an impact, negative impact on exports, and oil prices rising as they have, but, again, i really look at with some perspective about where the 10-year treasury yes, it's up 3, 3.1, but look at the slope over the course of the last year or two, it is not as steep as -- concerning if it was a steeper rise that's the key issue look at history -- if rates go up, we're okay as long as we have economic growth, which we do right now it's about how steep the increase is. at this point, it's nothing to be concerned about, but, certainly, something to monitor. >> it's the growth versus inflation debate some traders reporting to the empire state index, regional survey activity, price component of that jumped to 54 from 4 p7,, and every single one of these data points becomes more -

>> i think that's one -- not to say it was cherry picked, but more attention because it fed into the theme of, oh, boy, interest rates rise, there's a reason for that. i think it's notable that the 10-year is doing what it's doing, getting up to 3.09 in the highs when everyone already bet on the highs there's force behind this move, but that doesn't mean it goes further from here. >> what are the investments? now that this is happening, you know, it will me what the investor needs to do >> stay with the financials, especially large cap banks that make a lot of money when money is kept in the short term and they make money in the longer term regionals do well, insurance companies do well -- >> is this all true? like, 2.5%, approaching 2.6% for the 10-year. that move -- that's the highest in ten years, 10-year highest in 7 years. >> but the difference is, very short term, the banks do not pay you a lot of money to keep your cash there, so that spread is

still really wide, and the lending spread is down if you look at the large capx in the money center bank, bank of americas, jpmorgans of the world, they do well, charles schwabs, et cetera >> short end of the curve the banks ride opposed to borrowing at 2, lending at 10. >> right what do you think are the strategies for investors right now, michael >> first of all, net interest margin is additional for financials, but, certainly, financials will likely do well in the rising rate environment, and even though everyone is bashibash ing fixed income right now, it becomes appealing. if you're going to get 3% on a 10-year treasury with no equity risk, it actually starts to have some feel, so while duration has been a good move - >> i'll give you 2.6% on the 2-year you don't have to wait 10. that's not bad >> exactly

exactly. exactly. so and there's zero volatility with that as long as you hold it for two years, right i think technology is still going to benefit from lower tax rates. yes, some of the benefit of tax cuts are being pulled back because of dollar strength as well as what happened with interest rate costs, but companies with high profits are going to benefit from low tax rates, and i think that's why the market still is struggling at least to stay around 25, maybe moving higher because rates are still relatively low and earnings growth seem to be accelerating >> let's talk about one of the other sectors and focus with the moves today, and that, of course, is housing home depot is one of the biggest losers in the dow. the country's biggest home improvement retailer missed revenue and comp sale estimates this morning the shares finished lower at 1.5% look at the home construction etf, the icb, it was down about 4% in today's session, in fact, worst day in three months, mike, and individual home builder names like lenar down 6% today

>> yeah. it's a clear reflex. you know, it always has been in terms of rate sensitivity for home builders. >> if you talk, we have a housing shortage in the country. every sign is that the spring selling season has gone off strong are these -- i mean -- >> it means it's between 9:30 and 4:00 p.m. eastern time rates up, sell the home builders that's really is what it means i think incrementally at the margin, affordability is already an issue, and you take that much more people out of the potential buyer pool, i don't think it's a major issue, but it's the way the stocks trade no matter what. >> buyer on the weakness >> i wouldn't have, the home builders, but home depots and lowe's of the world, absolutely. listen to what home depot said, they had good comps, but garden products were negative >> they blame weather. >> garden products, 15% of the segment. take that out because of the

weather, it's up 6.5%. they said may is doing well, which is why the stock's only down 1.5% versus 6%. >> i believe it. giving companies a hard time for blaming weather, but this is the strangest lack of spring to now 90 degree day today that we've ever had >> thing with home depot, trades at 22 times earnings still expensive. lowe's is the better play. it has an activist behind it, new management, but trades at four times below >> why buy the builders? >> look, the builders would be fine, but when you look for opportunity, i think there's more value in the building products as in the home builders >> builders are, you know, you don't -- >> no one likes them >> it's not the best business. when the business is booming, they can make, you know, good money and everything, but -- >> hard to be investable they are tradeable >> keyword here is "value," right? look at the value of homedepot and lowe's, which really from a fundamental standpoint likely is

a cheaper value oriented investment, i think home depot, particularly in assets this fall because of weather, and may's already accelerating we'll see what happens in the second quarter i'm not betting against home depot to make up lost sales in the next quarter >> i mean, there's certainly some of the best businesses in the country, great stock performance, not quibbling with that, but just makes no sense that we just talked about some of the issues with, you know, the demographics, millennials trying to buy homes, and, again, there's not supply there prices are going up. one more, what do you invest - >> everybody is a customer of home depot >> as a home builder, you have a region of the people who might buy a home >> and home depot has professionals buying from them as well. >> there's a confluence of positive factors everything coming down, sell today, come back, and hold for long term, you're okay >> all right we're out of time.

go ahead, michael. >> that's a good point that it really is during trading hours when interest rates go up, stocks go down don't read into this long term >> all right talking about the consumer just as we continue to look elsewhere, so you like the -- you like lowe's specifically >> i like lowe's, fortune brands on that sub sector there i like the financials, broad based, overweight those, health care has value completely beaten up some of the old school pharma, a merck, trading at single digits, almost ten times earnings. used to be at 15 times opportunity there. and then also go back to the auto parts and auto sector like gm, gm trading at seven times earnings >> wow >> watching the teslas of the world blowing up at this point, but you have a company positive cash flow at 5% -- >> not investing in home builders, but buying gm?

>> i am. they have a management team built for long term and say we're a new company and can do this, and the opportunity there is much better than kind of some of the other things. >> final words to you, michael, where you think it looks attractive right now >> i think financials, and i certainly think health care. i know dividends are beat up be aware of what's happening with consumer staples, but, you know, the paranoia or panic over interest rates on the long term is not going to negatively impact dividend oriented stocks. still paying 2.5 to 4.5%, and some paying 6% yield that are still reasonable valuations, so i don't think you avoid the assets even though they are short term having control. >> all right moving right along north korea cancelled tomorrow's talks with south korea. we bring in hans nichols with the latest >> reporter: look, significant development guys for a couple reasons. number one, the pentagon and

state department appears to have taken by surprise. number two, look at the rhetoric we get from the official korean news agency saying it's a military ruckus. that's the kim jong un of three months ago third, i expect a statement from the pentagon statement shortly they have talked about it for 15 minutes, landing in inboxes in a moment, talking about importance of the exercises continuing. the deal before negotiations started between the north koreans and south koreans, and the u.s. widdled their way in there, the deal was always the spring exercises would continue. you heard that from the state department today we just heard that from pentagon officials walking around the hallway here as they are trying to formulate a response. top line here is we don't know what this means to the june 12th meeting between kim jong un and president trump. we have to see the white house response and pentagon response, but this is a significant setback to what had been positive momentum towards talks to denuclearize the korean

peninsula. kelly? >> thank you, we'll continue to follow the story a lot more still to come here on "closing bell. coming up, we go live to las vegas as casino ceos react to yesterday's landmark historic supreme court ruling on sports gambling in the usa. plus, uber and lyft's about face on a controversial piece of fine print in the user agreement that some say made women unsafe when riding in their vehicles and a lot more on tea's market action as rates move hheigr. this is the "closing bell" with kelly evans live from the new york stock exchange.

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welcome back home depot had a huge week for retail earnings, macy's on tomorrow's calendar, and thursday brings walmart, jcpenney, and nordstrom. we have a look at what this week's results could tell us court? >> we have macro factors suggesting retailers should post a good start to the year, but other factors could shake things up on the consumer side, there's

household balance sheets that are solid, tax breaks adding take home pay for americans, and confidence is strong on the retail side, there's a stronger fashion cycle, especially in apparel right now, inventories are lean, sales are coming at higher prices, and comparisons are easier you got shopping center operates like simon and cbl associates who say sales up more than 4%. and macerich said retailers' strong holiday sales trends continued into the first quarter across the board the weather was unseasonal, making it harder to sell warm weather goods and april was the coldest and snowiest in 20 years. that is the reason home depot posted that rare miss today. now, for macy's tomorrow, investors want to see top sales positive last quarter was a first quarter macy's saw comp sales grow in three years, and for walmart thursday, they want a reacceleration in the u.s. online sales the holiday quarter, you might

remember, saw the slowest growth rate since the retailer has been reporting the numbers the way it has or for five quarters, so a couple things to look for. the setup is good, but we'll see, kelly >> which is interesting because it feels to me like maybe because i'm still traumatized going back a couple quarters, but heading into this part of earnings season, oh, no, here we come, all the big news and misses, and amazon narratives are back >> thinking three quarters back, but last quarter, holiday was good, you remember that. the holiday was good for a lot of retailers >> that's true >> they got inventories in line, which was a good thing, because they didn't have the extra inventory to sell through and better prepared to sell the new spring stuff, but it snowed in april, so we got that issue. >> well, did it ever >> yeah. so there's a lot a lot at play here >> i wonder, you know, we used to look so much to the company as a consumer, but it's harder

to do because of so many things going on in their businesses >> the link loosened reaction to the numbers is going to be name by name, company by company, all about who is better or worse positioned, and, you know, of course, this is the first quarter, first fiscal quarter we talked about here, not make or break. >> not weak, but small i mean - >> not a big a piece as the whole year >> yeah. >> therefore, you see what the reactions are to get people in position >> given all that, i'm amazed market reacted at all to home dep depot. that happens when the performer has a miss >> when they come out with quarters that are blow the cap off the ball, even still sometimes you see investors selling down they do a good job with a lot of the numbers, and the best reaction is sometimes questionable, and then the next day, it's all reversed we have to see what happens tomorrow with shares of home depot, i think >> they sell seeds and lawn mowers so it's not all about homes. >> that's true >> 15% of the first quarter is

gardening supplies, so when you have a hit there, that's a big difference comp was 4.2, and without the hit from weather, comps were 6 partnership 5. >> wow >> in this case, weather is not an excuse, but quantity miss >> buying annuals this year. a sophisticated homeowner. >> there you go. >> going to the local nursery. >> what do you do next year? >> that's the problem. that's why the companies like it, though >> catch an exclusive interview tomorrow on "power lunch" at 1:15 p.m chips the worst performers today, and fast money traders say why. a major company pulling out of venezuela due to the country's economic collapse. details when we come back.

welcome back, i'm leslie picker, releasing 13s filings for the first quarter of the year, and notable additions include teva, a position that he doubled during the quarter he add 22 million shares it's worth $700 million at the end of the quarter, up half a percent and up significantly more than that what the filing first hit. now, he also decreased his stake in verisk by 1.28 million

shares, holding about 285,000 shares that stake now worth about $30 million. as we comb through filings, there were not large new stake or dissolutions to share at this time these are from march 31st and have changed since then. back to you, kelly >> thank you, leslie picker. venezuela's economic crisis forces another major u.s. company to pull out of the nation michelle caruso-cabrera has the details, michelle? >> reporter: kelly, thanks cereal maker kellogg's is discontinuing work there today they said the current economic and social deterioration in the country prompted the company to discontinue operations, but looks forward to working in venezuela in the future as soon as conditions of the future allow it venezuelan president maduro said

he'd hand over the local unit to workers, essential lly seized by the government, and kellogg joins bridgestone, gm, kimmer by clark, and general mills who all closed or reduced presence in venezuela as they deal with hyperinflation or shormtages. they saw shortages of basics like medicine and food brought on by price controls this video, only the latest, showing protests and hungry citizens lining up for food at a campaign rally and grocery stores remain empty. kelly, back to you >> and i know we don't talk about it, but every day, it's getting worse, and i don't understand what the end point is in this, michelle, a political uprising anything the company -- i guess there's nothing the companies can try to do to put pressure on the venezuelan regime. >> no. couple things. first, nazi is a tough comparison, but they are

referring to it a place in chaos like somalia, and be driven by war lords. the other issue is that companies can't get any currency, it's so short it's hard to produce anything so they do not invest there, so the other issue is people ask, it's really become almost a narco government far less interested in producing oil because they are very involved with the drug trade talking about the government involved with the drug trade >> right, right. >> less incentive to actually run the country. >> tragic. i hope there's more that maybe the international community can do to pressure them, but losing another company is not going to help michel michelle, thank you. michelle caruso-cabrera bringing us the latest in venezuela semiconductors have staged a big rally this year, getting hit hard today we talk ttohe "fast money" traders what's going on when we come right back.

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russell, you don't see this often, unchanged on the bell, that's 0.00 move >> at 1600 exactly somebody landed it on a dime >> don't see that often. interest rates were the big movers, 10-year yield punched up to 3.09% today time for our news update >> here's what's happening at this time, president trump honoring law enforcement officers at a ceremony on capitol hill in addition to praising those who gave their lives, he thanked men and women who still serve and protect. >> thank you for joining us on one of the most important and solemn occasions of the year, the day we pay tribute to law enforcement heros. they made the ultimate sacrifice so we can live in safety and in peace. >> israeli police and palestinian protesters clash near the damascus state as many were forcibly removed. unrest comes a day after israeli

forces killed dozens of palestine yal ppa palestine protesters the royal family prepares for this week's wedding. there was a party on the grounds in the palace, and the queen was accompanied by prince edward and prince andrew. >> i love the hats all the hats >> all the hats. >> all the outfits >> that's like a men's -- men -- >> preparing for the weekend >> yeah, i know you are. >> wearing sunglasses, which is rare for the queen to wear sunglasses >> that's true this is a treat this week. thank you very much. >> thanks. let's get to the other big stories of the day rapid recap. >> dow winning streak in jeopardy this morning after eight days higher, and home depot, biggest dow losers, nation's biggest home inprovement retailer moved sales estimate >> david faber sat down with

verizon. >> never seen a technology that will be more disruptive and have more benefits for consumers than 5g >> very far apart, how the u.s. ambassador to china describes trade talks between the two nations. >> i think there is a bromance between president trump and president jinping. where it leads maybe a trade deal >> dow just under 200 points >> chips and semiconductors down by 1.2%, but a bright spot, amd, up 7% this week on the success of the any line of processors. joining us for more are the "fast money" traders, pete and guy from "dancing with the stars," you might have seen them yesterday. >> unbelievablunbelievable >> phenomenal. >> we did not rehearse that. >> i know. ya create a gif now >> g-i-f >> talk about the chips today,

this does not fit with the market narrative and interest rates. guy, what was going on why struggling >> talking amd quickly amd, go back and look, there was a downgrade, 7.5% price target on, the reason was cryptocurrencies i thought they missed the boat on that. look at valuations in terms of businesses they are in now, it's interesting. pete will tell ya, there's a 14 handle on it, and i agree with that, and pete -- we do this power pitch, you wear a glove and a baseball, and intel is one of the names go back to intel's last quarter. talk about a space where valuations do make sense, i think a lot of it is some of the semis. >> yeah. >> pete? >> they got it moving in the right direction. pulled back 2% today, and amd continues to fight to the upside i think it's a combination of being in the crypto space and data by the way, when you get a

chance and you see david temper on disclosures of the last quarter, look at micron, added another 8 million shares a lot going on in the sector a lot of upside. trading cheap valuations and growth >> pete, if i see temper, i'm not asking about micron. i'm going to ask - >> panthers. >> about the panthers. hometown >> only buy the ones for sale. >> is it all cash? 2.2 billion. amd story? >> you know, mike said -- it's interesting that mike just said, you can only buy something for sale, but mike knows, and he's sitting there with a rye smile on the face, everything is for sale at a price. >> at a price. >> what do you think about the prices of the chips? >> i look at the mostly as a market bellweather and risk appetite gauge right now, they are battlegrounds still in the bull column, but up 8% year to date, index, and 8% down from their

high they are consolidating it's still okay. you have to watch them and how the market will go >> guy, do you think it's just an amd story the idea is there taking the share? >> i think amd's story is amd specific i think intel is intel specific. don't broad brush semis by way of - >> all right >> by looking at the space qualcom has issues >> plenty of those >> might have turned and bottom out as well. >> all right, guys, thank you, always a pleasure. pete and guy oh, no dancing this time catch the action at 5:00 p.m. eastern time, top of the hour. sports betting is now legal in new jersey, our contessa brewer is in vegas talking to ceos for reactions >> reporter: the places that have properties in new jersey are now figuring out where to put their stakes to best maximize return on investment. at this point,e lk a wtaedbout

that today we have all the answers, what's next to come for the big casino companies next on "closing bell." rapid recap is sponsored by mercedes benz, the best or mercedes benz, the best or nothing. this is the mercedes-benz suv family. greatness comes in many forms. lease the glc300 for just $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

stocked mixed after the supreme court ruled sports betting is legal in new jersey contessa brewer is in vegas to see who rakes in the big bucks

>> reporter: yeah, so, kelly, analysts have been eyeballing caesar's, and look at the stock, up 7% since that decision from the supreme court, and for a lot of reasons namely, they have an established sports box they have been investing in here in las vegas, and that's an experience not only they duplicate for new jersey and then mississippi where sports gambling could be legal by june, but also, they say, they could improve upon it. they are looking forward to rolling out the digital and online sports wagering that they are already offering in nevada as regulations allow, and caesar's ceo says he's looking forward to expanding on the 150 billion illegal betting industry as they move that into legal, legitimate revenues. he thinks that could be room for growth >> so we set up quickly to the states this set up legislation for repeal that's 13, 14 states with legislation that is being moved,

and because they are respective states to have this legalized, and it could hit every single state in the country because everyone needs tax revenue dollars that come from this. >> reporter: so what the big concern is here for caesar's and mgm? void and pen they have casinos in other places nationwide. number one regulatory hurdles that help them get sports gambling legalized in place. number two, what's the taxes and fees how much will that cut into their return on investment those are all issues we are watching for, kelly. >> yeah. there's a lot of moving pieces thank you. joining us to talk more about implication of legalized sports betting, we have the philosopher who writes for sports.com, and mike santoli >> i'm here too. >> mr. philosopher, starting with you, there's interesting questions whether the concern is

now that you make a behavior permissible, you get more of it, and it's sports gambling, is it a good thing >> right the main - >> sorry >> go ahead. >> oh, sorry i think the main ethical question is the integrity of the sport. we'll get more gambling, and the question is going forward that it's legal is is that going to have a negative impact on the integrity of sports? are we going to get more match fixing, shaving of points, all kinds of manipulation of the outcomes of games for gambling, and if so, that's a reason not to legalize bets >> yeah, all right, i think that's rj -- rj, can you hear me okay >> i'm here now? >> he can. okay that's what we heard in the background there, so, go ahead >> sorry >> because this is what people are wondering. on the one hand, it's a big money making opportunity, but is

it exploitive? >> i don't think so. in the end, people gamble, as long as it's in sports, it's gambling, and as long as there's been gamgambling, there's been abuse, but people enjoy it, it can be fun, leisureble, and sbonas long as people do so responsibly, there's no miranda rule issues -- moral issues. the question is about the integrity of the game themselves and the institutions need to make sure that they protect that i think legalization is a better way to do that legal sports gambling is going to be better than the legal sports gambling in terms of protecting the integrity of the game >> rj, we hear a lot of estimates exactly how big the illicit sports betting market is right now, how much might go to the legal side, depending who makes it allowable and how many new entrances would be there, people who otherwise wouldn't

bet but will because it's legal. is there an industry set up and potentially serve all the betters right away >> well, the first stage of the industry is set up here in vegas, europe, there's places like william hill in nevada, they are ready for the turnkey solution there's all expectations within a few weeks, that's soon, and so midterm, three, five years, my guess is most of the distant players are not going to be dominant i think when silicon valley, venture back companies get in with their real differentiated skill, oftentimes, user experience, and i think what we're going to see is that on mobile, user experience, that's the key differentiator in five, seven years, and the biggest players in five to seven years are players you have not heard of, might not even exist today because of the skill set that's

allowed companies in vegas to be successful is a different skill set than what it takes out there in the states. >> rj, what about the leagues themselves are they able to be eager to make money off this, off the data, off the fees feels like they want their hand in this everywhere possible, right? what do you think it looks like? >> billionaires want more money? i agree with you 100% on that. >> billionaires in the first place. >> exactly and a lot of ha is not only ambition, but it is not only greed, but it is being able to look in the eye of the world saying, hey, we lost the bet that's important to realize. these leagues were against legalization they lost the bet and want paid. >> nba and others have been moving in the direction realizing to your point, you

know, that if you bet on stuff happening in the game, maybe the data provided, stats, and all that thing that seems to be the kind of companies leagues themselves that benefit, right >> european markets are far ahead of the united states let's look at that as a bellweather, as a guide. in game betting, the is that lebron is at the line, two free throws, will he make both of them imagine a smart tv and your ability to bet on that, that's a partnership with three parties, the league, the tv network, and the bookmakers there is huge opportunities there for a partnership. >> is that a day to look forward to where everyone can bet on every minute event in every game >> i think that's the world we largely live in already, but it's coming out from the shadows, and be legal,

regulated, and not in the hands of criminals, but legitimate businesses with the incentives to obey the law. >> i did read a blush in the "new york post" how it undercuts the new jersey mafia organized crime. >> taking revenue away >> it's not clear to me how much that's still operating today is that -- is my concept - >> you have a guy? do you need a guy? >> what's the current state of play with the mafia? no thank you, both, very much for joining us >> thank you >> we'll see, of course, how this all plays out, pun intended coming up on "fast money," well, it says here the bitcoin jesus is back with a bold new call for the universe at the top of the hour uber has a change to the platform, and we have that story. >> reporter: kelly, two of the biggest rivals in ride sharing seeing eye-to-eye as uber and lyft take a step towards transparency and sexual harassment claims. that's when we come back

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uber is taking steps to handle sexual violence by its drivers. our deirdra boweser is a more. >> this is perhaps uber's boldest move yet to move past its disastrous year and fix its reputation this is a legal agreement that lets some of the biggest companies in tech and corporate america itself keep claims out of the courts. and it has come under some major scrutiny as silicon valley reckons with harassment and discrimination issues over the last year. now to be sure, uber's move comes after a lot of that pressure focused squarely on the company, but it's also having an affect on others

lyft today following suit also announcing it would end. both company says they will disclose safety reports. uber and lyft are rarities in the valley as many companies require that mandatory arbitration, describing it as faster, cheaper and easier than going to court air b and b and amazon have binding clauses too. in a statement airbnb said it was reviewing policies late last year microsoft was the most high profile company to end such agreements with employees and a bipartisan group of lawmakers have proposed legislation that would make such agreements in harassment cases unenforceable under federal law. so gaining a little more momentum here with two of the biggest companies in the ride sharing space in the u.s., uber and lyft >> deirdra, so apologies if i'm being dense about this but is the difference here that

we're talking about harassment by uber drivers of people riding in the cars or the company's internal culture >> so this applies to employees, passengers, and riders so if there is an incident, in the past it would have 20 go to arbitration. so you could get get say a judge or someone who is qualified to settle this out of the courts. it would be able to stay out of the public eye now where there is an incident among passengers, riders or employees, they have the choice to settle that in court, put it before a jury and have it aired in the public. also importantly, enter class action lawsuits which has been a big issue so it's a big deal for the companies because they're growing so fast and have so many of these cases come up >> this is uber's business thousands, probably hundreds of thousands of drivers so at the same time we've seen a lot of companies in the financial space on wall street go in exactly this direction to protect themselves from lawsuits, and sometimes they argue to protect the women

involved as well in this case, now, uber is coming out and going in the opposite direction i just have to imagine they're going to get a lot -- the litigation is going to come their way and come their way fast, right? >> and also, don't forget, releasing safety reports both uber and lyft so there could be a lot more claims to come to forefront especially when they start this is something that executives have acknowledged but said okay, we're going to do the right thing and deal with this and publish what is out there. but if you think about it, kelly, too, in the ride sharing space, we don't know how dangerous or not it is because we don't have transparency and we don't have a lot of data. this will be really interesting. really facet of the on-demand economy. that's why we reached out to airbnb as well to ask if they would end their mandatory arbitration klaus because it's important as well to figure out as the on demand economy gross what's actually happening in terms of safety. >> mike, what do you think of this given the history of -- basically, this was an outcome

of these kinds of companies trying to deal with these issues for the last couple of decades. >> it actually governs a lot of company, customer relationships all around, not just with regard to these ashlgs true. >> so i do think it's interesting. if it becomes a trend toward revisiting this whole arrangement that a lot of companies have it's been very highly criticized too, that it kind of takes away consumer rights. >> deirdra, thank you very much. real quick. >> a lot of this comes from the pressure over the last year. uber is taking the right step in doing, this but it's come out of a very terrible year for the company. and this is something that the former uber engineer susan fowler has really support and fought for so this has perhaps something bright that has come out of uber's really disastrous year. >> as they're preparing to go public, no less. deidre remarks thank you fascinating stuff, deirdra bosa. we're going recap today's big headlines and afr-urmorstehos ve when we come right back after this quick break

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welcome back more of those 13-f filings of hedge fund holdings are out. leslie >> hey, kelly, i want to bring you some interesting moves in paypal during the quarter. this is of course as of the

quarter ended march 31st some hedge fund filings. carl icahn most notably dissolving his stake in paypal that's a position he has held for a while now. marking an end to a chanter there. if you recall, he pushed ebay to spin off paypal, and now of course he has exited about 8 million shares at of march 31st. on the flip side, green light is taking a new position, about 67,000 shares. that amounts $5 million at the end of the quarter not a huge position, but interesting nonetheless. paypal is up 5.5% year to date back over to you. >> all right, leslie, thank you. let's get a quick check on the other headlines teva higher. sales force getting a pop after they tripled their stake in cloud company to 2.3 million years. and the dow etf slightly lower after hours on reports that north korea is suspending talks with the south because of military drills with the u.s

and mike, now we head into tomorrow, waiting for more data that might tell us whether the narrative today about inflation and growth continues >> exactly when treasury yields kind of the driving story to market, the macro starts to matter again industrial production tomorrow as well as housing starts. those are both kind of relatively frequent indicators we're going to know if we have this momentum pick u after that first quarter soft patch it was big move for bond yields in one day. >> very big. >> and kind of out of the blue we had just settled back into this whole atmosphere of okay, we tried over 3% >> that's right. >> goldilocks. some say it was the inflation ratings this morning so tomorrow it will focus on the capacity utilization figure? >> basically, if the economy seems like it's running a little hotter and really, we're waiting to hear from the feds in a few weeks right now, probably going get a rate hike and their characterization of how they're looking forward. a lot of sate little bit of suspense building up there we've got some more retail earnings >> home depot dragged down the

dow today about 1.5% to downside after its miss this morning which they did site weather. we'll see if macy's, jcpenney, nordstrom have more to say about that we also get cisco tomorrow. >> it's been a great stock it's usually not a broad market more b mover >> thanks for tuning in "fast money" begins right now. "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders are pete najarian, tim seymour, dan nathan and guy adami. it is a bitcoin cash takeover. the cryptocurrency is the best performing coin in the last month, and the prophet himself, roger ver, aka bitcoin jesus is back with a new prophesy that could sent the cryptocurrency universe reeling he will talk to us exclusively deal wit but first we start off with what we are calling the three prongs of pang cue the scary music. the market selling off