their marketing tools. it's a viral sensation. >> when was the dress thing? >> 2015. >> wow okay >> what color was the dress? >> all right, everybody. >> blue and gold >> on that note, it was laurel laurel is the winner whatever you heard is fine with us thanks for watching "power lunch. >> "closing bell" starts right now. welcome to "the closing bell." i'm wilfred frost. rates and the dollar in focus yet again for investors. a new topic surfaces retail as macy's posts strong results and surges in response >> bob pisani here at the new york stock exchange where inflation is starting to become more of a focal point and a cause of concern for investors >> i'm phil lebeau in phoenix, arizona. the airlines are facing a global pilot shortage to fill that void, they are offering some major perks and benefits and the sky's the limit. >> i'm morgan brennan reporting on a new worry for the economic machine. a massive shortage of truckers

>> and i'm kelly evans we're waiting on the report from cisco. and did this country just hit peak credit card don't leave home without us. "the closing bell" starts right now. welcome, everybody i think that's what it means anyway >> laurel. what did you hear? >> i heard yanny >> i love those things >> all day i heard something difference sara is right. i think it's the medium. >> did you hear what tyler said? you've got to stay tuned to "closing bell. that's what he heard >> and you should. we'll get to those stories in a moment here's a check on the markets. the spotlight is on small caps the russell 2000 just hit an all-time intraday high the date we know is significant because that's when the markets all peaked now for the first time with a gain of about 19 points today. 1.2% the russell is the first to get back into record territory

>> and the s&p is on pace for its fifth gain in six sessions dow up 94 points at the peak of the session. right now up 64 points let's begin with retail. macy's in particular up better than 11% after upbeat earnings and raising full year guidance up 10.7% at the moment >> huge move we want to know is retail back for real let's bring in cnbc contribute er jan kniffen and stacy woodlets good to have you both here jan, is this just a relief was there a lot of shorting of macy's this was a huge one-day move for this stock >> i heard laurel say macy's is back and that's what i think we've got going on here. >> you said macy's was a buy well before today's move >> i did i've been saying it was a buy for awhile now they did a great job in the fourth quarter whap they did in the fourth quarter is working even better in the first quarter

and that's to target talking to you about what you should be buying and it's also inventory control. and also the loyalty program they're leveraging all of that to drive sales so things may not have been quite as great in the first quarter as we thought they were, but they were on par with the fourth quarter or better and second quarter, third quarter, fourth quarter get more of that benefit than what we just saw it's going to get better from here, not worse from here. >> is this a bounceback of bricks and mortar retailers against the amazons of the world or is this a strong u.s. consumer >> i think it's a bit of both. clearly if you look at the acceleration since their q4 results and the across the board strength, throw in by the way a bounceback in tourism that we haven't seen in several years here, and macy's is really positioned i think managements have been pretty clear in the last couple months even most recently that the consumers out there, the consumers shopping and feeling

good certainly we're right sizing, finally, the footprints of the basis out there. but macy's is doing some smart things most importantly as jan said, this was really a back half story. so if they're doing this well when most of their catalysts are in the second half of the year, the outlook is actually, you know, surprisingly strong for the second half particularly against a backdrop when the weather was awful. >> jan, actually jill had just pointed out that april retail sales yesterday showed that the share of online sales in the u.s. economy is at a new record high it's at 11%. it's up from 7% ten years ago. does this distinction matter for macy's online, amazon versus brick and mortar how relevant is that as it moves forward? >> it matters for everybody. but online was up in the first quarter. department stores were down 1.6% so this changeover to online is

not going away it's not anything new. macy's has learned to deal with it nordstroms has learned to deal with it. kohl's has learned to deal with it people that haven't are going to lose share but macy's had double digit growth online. we're going to continue to see that kind of thing happen. >> i noticed they're comps that was a big beat for them they were up more than 4%. the expectation was just 1%. is the e-commerce number part of that >> it is part of that. but they had a flip on friends and family which boosted the first quarter. that'll come out of the second quarter. no matter how you cut it, they beat the heck out of the quarter. anything better than anyone expected they think it's going to stick with them. this is all going the right way for macy's but it's still more expensive to play the game online every time they look at this, we have to rebuild online because you can't get it done. it's still an expensive low return process relatively speaking all in all, they're working well right now. >> stacy, just quickly, any take on what goods read across individual brands?

>> yeah. they talked about strength in everything so bodes well for michael kors coming up. and the other thing we taulked about the success online, macys is doing vendor direct it cuts out a lot of the red tape in the in-between delivery for them so that's something they're just starting to rule out in terms of e-commerce, that's a win for them it simplifies the e-commerce in the second half of the year. they talked about broad based strength here. >> they beat in every category and every week of the quarter. it's hard to imagine >> well, up 45% now over the past year. 31% year to date crazy. guys, thank you very much. >> we're also monitoring a triple threat to the market that could have big implications. rising rates in the dollar and inflation.

bob pisani joins us with more on inflation concerns what's the main thing to focus on here? >> look. the market's having a little problem because we had this weird period of sub-2% inflation growth this hasn't happened much in u.s. history it's created a tremendous amount of borrowing out there the cost of that is going to go up and hurt the u.s. markets overall, it's feared my point to people worried about this is historically when we're in this 2% range and 3%, the stock market has done fine providing you have growth. so the real returns we're seeing now are really extraordinarily high we're getting 20% earnings growth this year and 2% inflation. your real return is 18%. that's extraordinary even next year you get 10% and 2% inflation that's still historically good numbers. >> it feels like the -- you know, for the consumer, that's one thing. but if companies are facing price inflation that's much higher than that, maybe it's on freight costs, maybe on labor. are their profits going to get squeezed >> the question is can you pass

that along so, for example, there are a number of companies we saw that could pass them along. but consumer packaging companies, consumer staples companies, your procter & gambles, your kimberly clarks use extraordinary amounts of plastic. those are going up they're having a hard time passing it along there you are seeing some erosion. that could be a problem. my point is historically the overall market, 2%, 3% you're fine you hit a problem when all of a sudden the economy slows down. then you get lower earnings. if you all of a sudden next year instead of 10% earnings growth you only have 2% earnings growth and 3% inflation, now you have a problem. now you're in that stagflation thing. not good for the markets >> but with growth where it is at the moment, what level of cpi spooks investors the 0.2%, 0.3% cpe each month? what would spook ninvestors? >> you're right around the 2% level. i think that's what's going to

be important the issue now is whether we can still stay there at that level and not move considerably higher the soil a big thing to watch. remember, oil is not going up because this suddenly huge demand and everyone is out there driving although the economy is good oil is going up because there's a restriction in the supply that's happening that historically can lead to problems i bet you if oil goes near $4, the president will bring executives in. that is one issue i'm watching very closely >> thank you let's get to rick santelli looking at rates and the dollar for us rick, i guess it's not just what's happening to domestic u.s. inflation the international look is influencing as well. >> absolutely. how do you combat inflation? get a central bank to take a certain policy position and all of those issues are much more deteriorated in europe, in japan as they see some pricing pressures. but are way behind the curve in terms of how to address them or

everyone worse, how to address negative rates so those policy issues will continue to loom large as far as is interest rates, my phrase is everything on the curve is guns hot except for a 30-year bond what do i mean by that whether you're looking at twos, threes, fives, sevens, o for tens there's a lot of room here we cleared an important zone the 30-year bond is about ready to get close to levels we haven't seen it's the only that hasn't gone guns hot they are short, but that isn't something to worry about today's shorts are tomorrow's buyers that's one of the reasons there's a bit of a shock absorber effect here finally the dollar listen the dollar is one of these trades where it just seems to be moving in the right direction.

it had a nice high, gave a lot of ground back but it's still building on a close to close basis it's the best level since about the 22nd of december and 94.50 to 95 seems like a level that's certainly attainable considering we're barely above 93. >> yeah. suddenly it does rick, thank you. rick santelli. let's bring in jackie deangelis who has more on energy >> great to see you. it's really interesting because when you focus on oil prices, you take a look at what's going on in the middle east. the last couple of days with some of the tensions we've seen in israel have certainly added support to these prices. with r wti now over $71 a barrel. israel not an oil producing region but at the same time any time there's strife in the area, investors worry. they also keep an eye on what's going on in iran because the iranians can create supply problems coming out of

the region as well as we've seen in the past, when you have problems like these in reality, they do certainly tend to take these prices up. and they take them up pretty quickly. what's interesting, though, when we talk about the threat and to speak to what both bob and rick were talking about is the fact that demand has been a big piece of this story, but this morning the iea came out with its monthly report actually revising down its outlook for the second half of the year in terms of demand it was a slight revision down, but it indicated there's a tipping point when oil prices rise, that demand does not meet them anymore and it seems like we're approaching that point right now. remember, when the prices go up, it's great for the big producers. in fact, out of the s&p 500 companies, it's the energy sector right now that's closest to its 52-week high. producers are doing really well. but the companies that use oil as an input, consumers also that are watching the gas prices very closely, these are the players that will suffer and that's

where you have a catch 22 when it comes to oil. >> that's for sure jackie, thank you. jackie deangelis moving onto new developments on president trump's finances. cnbc's robert frank has all the details for us >> politics has been good business for donald trump. the president just releasing his financial disclosure forms this afternoon. while some of his companies have suffered, the d.c. hotel has been a big winner. the trump international hotel at the old post office in d.c. showing revenues of $40 million. that is almost twice the revenues of last year. of course the hotel has become a magnet for foreigners and lobbyists. but mar-a-lago showing a drop as a lot of the charities pulled their events from the venue. revenue falling from $37 million to $25 million last year's filing we should say included four extra months so the actual loss was much less and could be kind of flat when you balance them out in time for time some other properties, doral his

miami golf course also showing a big drop from $160 million to $75 million. other things happening in that disclosure form, he did have some stock sales apple made between 100,000 to $1 million in a capital gain from the sale of that stock he also sold some microsoft for the same range and sold a bit of pepsi as well. he listed liabilities of at least $250 million with deutsche bank as his biggest creditor an interesting footnote. melania made between $100,000 and $1 million from photos so she's benefitting a little bit as well. guys, back to you. >> robert, fascinating stuff there. the washington hotel benefitting because of the brand image or just because d.c.'s super busy during this presidency >> it's all the foreign dignitaries who are coming to stay there and want to ingratiate themselves with the

president. it's all the lobbyist who is go there for breakfast, lunch, and dinner the lobby in that dinner is aptly named because of all the lobbyists and it is where people want to meet other members of the administration who are often there as well. >> okay. robert, thanks very much for that interesting numbers in there surprisingly low revenue for turnberry golf course in scotland. >> i thought it was high >> relative to the u.s. course. >> they do well for themselves we have a news alert on trade with china let's get to kayla tausche with those. >> we have a little color from a meeting where the chinese vice premier meet with members of the ways and means committee there were 15 members of the chinese delegation it was sbridescribed as a listeg session. things that did not come up, zte or retaliation that china has threatened in one exchange i'm told by an attendee that kevin

brady asked the vice premier whether he thought that this week's talks in washington which officially begin tomorrow could produce positive results, could produce a deal i'm told after a long pause, the chinese vice premier said i am optimistic we spoke after that with the ranking member on the committee richard neil he said he is less optimistic. he was told by ambassador lighthizer we'd have a nafta deal right now and now he believes maybe we won't get there. he is now saying we have to take all of these signs of optimism with a grain of salt we will see when those talks begin in earnest tomorrow what they actually produce. back to you. >> yeah. that's always the issue. kayla, thank you kayla tausche. >> we've got less than 45 minutes to go before the close we're off the session highs. we've got a nice rally around 11:00 a.m. held for most of the afternoon but just pulled back a little bit. all three indices are higher

russell 2000 hitting a fresh intraday high. >> stick with us "the closing bell" is just getting started. next up, will a shortage in the sky lead to danger for airlines and passengers? plus, another top tech executive piles on mark zuckerberg wait until you hear what salesforce ceo marc benioff says about facebook "the closing bell" with kelly evans and wilfred frost live from the new york stock exchange is back in two minutes mom, dad, can we talk?

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that's a good one. [ chuckles ] download the xfinity my account app and set a password you can easily remember. one more way comcast is working to fit into your life, not the other way around. welcome back to "the closing bell." airlines high today despite a rising global shortage of pilots stocks as you can see all up over 2%. >> phil lebeau joins us with a look at what airlines are doing to lure in new talent and what it means for us as fliers. >> for us as fliers, we're not to the point yet where we're seeing a lot of flights being canceled although we have seen a few internationally. but if you look at the numbers in terms of what's needed over the next 20 years, 18 to 20 years, these numbers are staggering worldwide, there will be the need to hire about 637,000 new pilots you see the biggest demand is

going to be in europe, the united states, and especially in china. this is music to the ears of people like 23-year-old amanda larson amanda graduated from a flight training school here in the phoenix area and guess what. she's being actively recruited by three regional airlines and like all of her classmates who have recently graduated, she is being wooed with potential bonuses for signing other recruitment offers for her, this is the chance to pick the best deal possible. >> they know it's competitive, that they need to offer the best in order to get the pilots because we'll just go somewhere else with a little bit better pay and fly in the same thing. >> so what does this mean for the airlines as you take a look at the airline index. yes, labor costs are going to rise over time for the most part your major airlines in the united states internationally have factored this in. but we've already seen emirates cut back certain flights to certain destinations and some of the regional airlines have

suspended or curbed their flights because they simply cannot hire enough pilots quick enough this is going to be a challenge for the industry certainly over the next 5, 10, 15 years they're trying to get these pilots in as quickly as possible but guys, everybody's flying these days and that's the issue. the demand for flight in travel is there so the airlines have to match it and that means needing more pilots. >> phil, great stuff thanks very much for that. i have to say when i was a kid, i kind of wanted to be a pilot >> do you have good vision >> i do. >> do you wear contacts? >> no. 20/20 vision. >> that's the most impressive thing i've heard yet >> way to shoot me down. welcome aboard this is your captain speaking. i think that's why i wanted to be a captain >> if you have a british accent in the u.s., you can be a pilot. it sounds authoritative. >> it does not mean i could be a tv presenter let's get back to the pilot shortage we are joined now by former continental airline ceo gordon

bethune. thanks for joining us. first question how severe is this pilot shortage >> well, it will be severe it isn't yet we kind of self-inflicted this wound when congress decided to get involved i guess it's like making sausage. you don't want to see that either, making legislation they decided to raise the minimum time of $1500 to 250 for a first -- as a result of an accident that experienced pilots had. so raising the time for the first officer has created the shortage that's all there is to it. >> and if that's the case, gordon, and these companies end up having to pay more to kind of get people into the pipeline, what's it mean for the airlines? is it just part of the expanding economy and booming business >> you'll see it at the regional level first because that's where the entry-level pilots go. then you'll see cutbacks as was mentioned to cities so that cities will have less air service or maybe no air service.

that'll damage the economy there. it wasn't well thought through it's an arbitrary, capricious number and it ought to be revisited to mitigate some of the issues that phil lebeau had talked about >> gordon, there's an ongoing dispute between the u.s. airlines and some of the middle eastern airlines has to whether the middle eastern airlines are benefitting from state support and anti-comb pettive behavior we've learned some of the middle east airlines are going to publish their accounts where do you think the decision is going to end up there will the u.s. win out on that debate >> i think it will show they have a basis for their complaint. certainly they've received big subsidies in the middle east that is an unfair advantage when they use open skies as access to the country. it ought to be an equal playing field. i think a good outside auditor will show you that there is a

cause for concern. >> gordon, just finally, you know, if we revisit some of the training regulations, make it easier for people to become pilots look, i admit i'm a nervous flier already. should i be more so if we do something like that? >> no, kelly you know what you're seeing is private pilot licenses going down that's where you start so if you project that forward, it's going to be less guys going into that career because of the cost of attaining those 1500 hours as prohibitive what we should do a back that off, make it less intense with less hours and you get a good qualified pilot. but no, you shouldn't. faa is as good as if not the best in the world. you shouldn't worry about the quality of the crew. >> gordon, are brits good pilots >> well, they sure did a hell of a job in the battle of britain so i'd guess they are.

i'd agree. >> that's true gordon, thank you very much. gordon bethune, former continental airlines ceo joining us through the airlines stock up 1% to 2% today. >> the trucking industry is also seeing a driver shortage we'll talk with industry experts there about what they are going to do about that >> and in 1964 the u.s. surgeon general decided cigarettes were dangerous to your health now a top tech exec is saying the same about facebook. that very bold statement coming up next. as we head to break, check in on where the markets are at this hour off the highs of the day the dow up3 in helosing bell" will be right back alerts -- wouldn't you like one from the market

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welcome back to "the closing bell," everybody dow hanging onto a 52 point gain here despite a moderate increase, we have two to one gainers versus decliners today. disney is up there too on the flipside, home depot down less than 1% no snapback after yesterday's decline and the issues related to their earnings. cisco and 3m are also lower. >> of course walmart due to report coming up as well we are switching focus now looking any second at a live shot of the kyl ilauea volcano there is a red alert warning for

aircrafts saying activity may become more explosive. >> kilauea is one of the world's most active volcanoes. ongoing eruptions began on may 3rd. we'll bring you updates as they happen some incredible, dramatic images out of hawaii. this is the one to watch for the rest of today's headlines, let's get to sue herera >> thanks so much. here's what's happening at this hour, everyone during a photo op at the white house with the president of uzbekistan, president trump was asked about the status of his planned summit with north korean leader kim jong-un this as kim has threatened to cancel that summit >> we'll have to see we haven't been notified at all. we'll have to see. we haven't seen anything we haven't heard anything. we will see what happens whatever it is, it is. >> president trump has filed a

financial disclosure report that reveals a payment of more than $100,000 to his personal attorney michael cohen but the disclosure did not specify the purpose of that payment which some believe was a repayment for the $130,000 cohen paid to the porn star stormy daniels. a record 243 million passengers are expected to travel through airports this summer that's according to the tsa. it says it expects to screen 2.6 million passengers a day it has hired more screeners to handle the load. but get there early. that's the best way. that's the news update this hour kelly, wilf, back to you. >> i have to say i'm disappointed there wasn't any royal wedding related news in that >> i'm saving the best for later this week, wilf. just for you >> okay. well, i'll be -- won't be on "closing bell. >> what do you mean? we won't see you but we'll see you. >> you'll see me >> sue, i want him to promise. we got an alert from thompson

reuters saying there's a uk/u.s. deal making love story that they were tying into the royal wedding. >> i think anything that -- i did see that there is a bakery right near windsor castle. i was going to do this story, but we've had a lot of very serious news today and they have created a cappuccino especially for the wedding couple the foam comes out in the image of the couple. i'm not sure exactly how -- in ten seconds. >> wow >> i think we need to see this later this week now. >> you got to be skilled with the coffee machine >> i would think so, yes >> sue, as ever, thank you very much >> you got it. >> sue herera for us the 10-year yield is at its highest point since the last royal wedding. >> what? >> that's a statistic that was out there this morning as well >> everything's going to be tied into that this week. >> i guess there's lots of points to make on that note.

anyway, we must move onto the quote of the day marc benioff on cbs this morning sounding off on his views on social media >> in some ways you could say facebook has become the new cigarettes in our industry it's a technology that is, yeah, it's addictive it may not be that great for you. and it might be something that you might want to go back to so maybe this is a time where the government has to step in and regulate >> i mean, wow >> i agree >> marc benioff of all people. >> except it's the same message we heard from tim cook i wonder -- >> not as strongly worded as that >> and the market has made comments kind of like this before but i wonder if they are happy to deflect all the attention on a few bad actors saying we're not them. you know, our business model is different and try to emphasize that >> the other facebook news today is we learned that mark zuckerberg could appear in front of parliament as early as next week. >> he accepted the invitation.

which is a huge deal we weren't sure he was going to show up across the pond like he did here. >> the british parliamentarians are upset about that this is going to be a closed session. we won't have that to watch it live and assess his comments >> facebook also reported it deleted about half a million accounts as it went through a sweep. that's a pretty big number we always talk about how they're quickly gobbling up the entire world's population but a lot of that was based on false activity let's move to the stocks to watch. under armour climbing today getting a boost from upbeat retail earnings. also from the fact there was some insider buying. also just a bit of a short squeeze. it's been so unloved for so long and then you see a bit of the momentum from the likes of macy's and it just -- an outsize move -- wow. it's really outsized now up a full 8% i was going to say about 3% when

i was deciding this was my stock to watch it's doubled since that. >> macy's keep climbing today too. teva also on the rise after berkshire disclosed in the latest filing it's doubled investment in that company 25 minutes to go to the close. dow's up 50, s&p up 10, russell up 16 points today 1.2% to touch a new all-time intraday high. >> the white house has turned toward trade and foreign policy and it could become a mine field for the stock market according to one member of today's longel ehae p discussion coming up 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.

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will make this a thriving community once again. ♪ welcome back, everybody. 22 minutes to go in the session today. looking at the dow again, we can see if it can stay positive it's the weakest performer of 42 points right now let's get to our "closing bell" exchange joining us now are andy caperin, steven gillfore, and rick santelli welcome to everybody what do you think we had an eight-day streak for the dow took a pause yesterday resuming it today. a lot of macro worries are out there. what are your thoughts >> i think we still have a lot

of uncertainty regarding trade and politics enough to hold the market back i think we need to see the level hold today that's significant 2743 is the high from earlier i think last week. that level is a twice enforced point of resistance. that begins with the beginning of april >> by a what pitch to rk >> it's an obscure technical term i use the andrews pitch fork now, the 2712 is today's low it's also almost precisely halfway between the two points which if it holds today we can confirm an uptrend and maybe shoot for higher prices later in may. >> and in terms of what sectors and stocks to be owning in this environment, clearly energy's done well recently i note you like royal dutch shell. put us through that. >> i still like energy even though price is up

the reason i like energy and royal dutch shell, super majors like exxon like chevron have a very low cost production any time the price of oil goes up, it's all profit for them in particular for royal dutch shell and other european supermajors, they're trading at a discount to the americans. that's just a great way to get in on the ground floor and have a potentially higher return. >> and oil itself, is it going to go higher or you think the energy stocks have room to move given the moves we've already seen >> my thought is 2018 is the year of geopolitical risk. being a lot more focused on the world. talking about north korea and iran all geopolitical risk creates upside risk for oil. >> kind of on that note, rick, what about what's going on with italian politics right now we've talked about how yields over there are so low even though, you know, they've got an interesting mix now of candidates who might be leaving the country.

>> yeah. i think actually it's a microcosm of much larger problems beneath the hood in europe in general. a lot in the southern economies whether it's greece, spain, portugal, italy. they have certain issues regarding debt in the ecb has a big issue in so far as they've basically made an instrument of questionable value, have high value. and in that full relationship, there are going to be issues over time. now, i really doubt if that potential coalition of league and five-star will actually make or get their wish to have debt forgiven but i think it gives a glimpse of the problematic landscape when debt is so prevalent and it's so mispriced according to better debt paper. today for our yields, for example, we see that they're all right now on their highs of the

session and every maturity but the 5-year bond is on highs for a number of years looking back yet bund yields today which have been leading the way for just the issues we're talking about move down in yield because there was selling of the italian paper and buying of the high quality or i should say higher quality paper >> and dollar strength is going to be a head wind. >> do you think that will continue given what we've seen in europe? >> the numbers for europe this morning were kind of disappointing. i believe there's a broader sense against the other major currencies obviously the russell likes it you're seeing what small caps are doing today. i want to ask andy a question. what do you think of oil services you saw the demand numbers demand report this morning the outlook for 2018 and beyond. now, i'm long both halliburton

and -- this is selfish what do you think of oil services >> i think it's a riskier bet. the problem with them is they don't have an underlying cost to production and most go to the higher cost producers. for them, marginal increases in the price of oil matter a lot. but it's a much riskier play i'd stick with the super majors. i would favor schlumberger >> we're good. we can -- >> hey, guys >> enjoy the rest of the show. you want to read the tease too no, it's great stuff i know you're trying to figure out what to buy here, sarge. so ask away. andy, steve, and rick, thank you, all about 17 minutes to go here. dow up 52. all-time high for the small caps we were just discussing. and still to come, we're going to discuss how a truck driver shortage is impacting the space.

>> and mike santoli is posting up one of today's biggest movers >> we're going to look at a badly beating un we'll give you the details when "the closing bell" returns us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides.

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welcome back to "the closing bell." just a couple of interest rates since the sectors in the red today. utilities down a percent elsewhere all of the sectors are positive surprising to see financials down there usually moves opposite of utilities. doing well following those macy's results. >> let's send it down to the floor where mike santoli is posting up gamestop today. >> this remains a battle ground stop gamestop is actually unchanged right now. that's down from about a 2.5% gain this morning. that was after our leslie picker reported there was more to the board suggesting the company

explores strategic alternatives. why might that be necessary? wall street has basically orphaned this stock. it's down in the last 12 months. investors think it might be ripe for extinction because gaming is going online also the shares are still short. a lot of people betting against it it's one of the cheapest stocks on the market. this remains quite a battle ground the company has not had a specific response to this idea that they explore strategic alternatives this is going to remain in focus there. on a day when retail in general is bouncing nicely >> exactly mike, we'll see you in a couple. thanks very much 12 minutes to go record day for the russell 2000. we'll see what happens on the bell with that just under 1615. >> we'll get earnings from cisco and take two interactive a preview of how much they could move cinupexhe oomg nt ren "closing bell. don't go anywhere. don't just track an index,

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welcome back to "the closing bell." we do have 900 million to sell on the bell today nap is putting pressure on the major averages but the dow is the worst performer in terms of percentages. you can see the s&p still hanging onto better than a percent of a gain. >> the russell hit a fresh intraday high. doesn't look like it's likely to close at a fresh high. after the bell we'll get earnings from cisco and take two interactive. shares of cisco have moved on average 4% up or down on its earnings results similarly have moved an average of 4.5%. we'll bring you those numbers and instant analysis coming up on "the closing bell." up next, we're coming back -- >> and i -- >> sorry >> cadbury chocolate, fruit pastels -- >> and wine gums we'll be discussing british confectionaries. >> i hope wilfred brings them back for me.

>> salt and vinegar crisps >> yes that cappuccino is going to be tough with the faces >> they might be a bit crushed but the chocolate travels well i've brought them back a lot of times before 50% goes to you. 50% stays with me. >> i'll take it. up next, we'll be coming back with the closing countdown. >> and are you an addict we'lexail pln coming up on "the closing bell." we're back in two. what? directv gives you more for your thing. your... quitting cable and never looking back thing. directv is rated #1 in customer satisfaction over cable. switch to directv and now get a $100 reward card. more for your thing. that's our thing. call 1.800 directv.

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welcome back to "the closing bell." we're starting with a picture of william lyon homes they are ringing the bell today here at the new york stock exchange let's look at the broader market we are higher on all three indices. the dow's high was up 94 points. roughly half that at the moment. up just 38 points or so as we were told moments ago there were around 600 million to sell on the bell that's probably taken us off the highs. you can see we've been in the positive in the green all day long we had a nice rally in the afternoon. let's look at some of the more individual movers today that matter we'll go to half screen now with the dollar of course the dollar has been strong of late but it is not

rallying significantly today it did rally a lot yesterday, but not so much today. it's up 0.2% or so the 10-year treasury note hit a fresh note not seen since 2011 it's now 3.098%. we'll keep an eye on that. oil prices interestingly remain strong only up a quarter percent today. you might have expected oil to give up ground it hasn't done so. and brent is up as you can see 1% bob pisani joins me now. in that sector performance, given the rising yields, we've got utilities at the bottom which you expect real estate at the bottom. but financials also down there a bit as well. a bit of a surprise. >> i don't think it's that significant. i'll tell you why. i said yesterday, any move into green today would be a victory for the bulls. there's no follow through to what we saw on the inflation concerns the 10-year has been relatively calm throughout the day. i think it's very important now

that the market and i think it's a reasonable interpretation is starting to get used to the idea of 3% 10-year yield. not dramatically but it's getting used to it we're not going to retest those lows that we saw back in february at least it doesn't look like that right now i think that's the key takeaway. the fact we broke through to a new high on the russell 2000, helped the market earlier on just before noon eastern time. there is a little selloff around 3:00 we're still ending nicely in the green. and i -- >> 3.1% on the 10-year now >> look. so the market is holding up here even with the 10-year at 3.1%. i said this before if you get real returns that are notably higher than historic average, you're still okay we're talking 20% earnings growth this year 2% inflation typically that's 18% there, typically your real return on stocks is 5%, 6%, 7%, somewhere

there. this is way above normal numbers. even next year at 10% and 2% inflation, those are still higher where you're going to have a problem is if you get 3% inflation and 2% earnings growth that's bad but that's not in the cards. we don't see that right now. >> are we going to have a problem if the dollar keeps rallying >> yes we saw that with the emerging markets we saw this morning. 9% decline in some of the emerging market stocks but there are some positives including as you know, you're a dollar watcher, the dollar is the premier reserve currency in the world. a strong dollar is actually helpful to those companies that want to continue to hold the dollar as a reserve. so there is some prestige associated with the strong dollar it's not necessarily all negative overall >> also want to bring up quickly before we go to the u.s. market, the italian bond which we've been talking about how low it is relative to the u.s. around 2.1% but there is the move you've seen in the last month it was down at 1.6% or so.

1.65% and less than a month it surged to 2.1% that shows the stress in europe at the moment. worth keeping an eye on that there goes the bell. we are higher by 58 points on the dow. we held onto gains zpiedespite little bit of a selloff in the last hour. ringing the bell here, william lyons homes at the nasdaq flir systems. kelly's got the second half. thank you, wilf. welcome to "the closing bell," everybody. i'm kelly evans. here's how we are finishing on wall street. dow going out with a 62 point gain the other averages were stronger dow up a 0.25% today the s&p 500 up nearly 0.5% 11 points to 2,722 the nasdaq composite to 7,398 today. and the russell 2000 closing up

more than 1% to 1,161616. that is a record since late january when markets broadly peaked before the volatility the last couple of months. we also today had the 10-year yield climb above 3.1% also a pair of big earnings to watch after-hours. josh lipton standing by to bring results from cisco eric chemi will bring us numbers from take-two. we'll see you in a couple of minutes. joining me right now michael santoli, jim lacamp, and chris johnson. macy's was the big winner after its strong earnings report really good sales today. so michael, a lot of macro

themes here today. the strong dollar, 3.1% now on the 10-year. interestingly enough, financials were negative in the s&p >> yes got their gain yesterday >> yeah. >> essentially obviously off only a little bit from yesterday you add in a new almost seven-year high. i think that today's little regrouping rally preserved what w we've been in for awhile we've been recovering in a gentle, mild way yesterday was a quick one-way back off and from a logical place. it's going to be like this where on one day we have the consumer pretty strong. another day you say yields are strong that's the give and take we're in. >> today we had a bit of both. we had those retail numbers we'll tell you about breaking news on cbs just crossing let's get to julia boorstin for the late e >> this looks like a win for cbs ceo les moonves. a delaware judge has granted a temporary restraining order

against national amusements until there's a dispute with cbs corp. on tuesday it comes as les moonves tries to rest voting concern away from sherry this looks like a win for les moonves. of course this is going to be an ongoing battle cbs shares appear to be unchanged. back over to you >> julia, thank you. i mean, so they got the restraining order which is a big deal but also perhaps unavoidable as they sort out the legal issues here >> it's unavoidable. that the judge would say slow down, let's figure out exactly what's happening here, how it's going to proceed 2in court >> this all has to happen kind of quickly it's an extraordinary example. >> try to get to a board meeting to make determinations. >> exactly and it's to basically dilute its own owner by saying you might own 80% of us, but if we issue stock, we're going to take you down to 17%.

don't you think there are some broadly speaking for whatever happens here >> you would think so. it seems the funny rink nny wri this is permitted. and have this around them. from a lot of companies that share classes that give them controlling vote. >> a lot of tech companies, media companies obviously. we're going to have much more on this story we'll keep an eye on cbs and viacom cbs was just granted that restraining order. let's circle back, jim, bring you in here on what you think of the markets here the fact we had the 10-year yield climb to 3.1%. what does it say to you? >> says the market is pretty healthy. it's stale honey badger market. >> what is a honey badger market mean >> it just doesn't care. i don't know if you've seen the viral video of the honey badger.

if you haven't, you should by any rate, if you are looking at a market that repeatedly addresses the 200-day moving average and then rallies beyond that, that's a pretty healthy sign that we've set a new high or low end on the market as well then you look at the small cap index, you have a lot of rotation you can play as a market i think the market looks pretty good look at the underpinnings. capex is doing very well we've seen businesses spend more money. economy pretty good, why better than global economic surprises that's one thing that's bolstered the dollar as the dollar has rallied, these mid-ca mid-caps the market cap of these things,

if you take the whole s&p 600, it's at less than a market cap than of apple. you've got a lot of room to go in these potentially it's all going to depend on what the dollar does here >> chris, you like the move we've seen in so we have the small caps back at an all-time high now are they leading the way for everybody else or are they just their own kind of dollar strength we don't do a lot of export stories as jim hinted at? >> no. i think they're leading the way. jim and i are kind of looking at the same play book here. the russell 2000 making the new highs. it's been leading the market since march or so. we've seen investors going into the small cap area what that tells us and it could be something to do with import/export. it tells me there's risk premium left in this market. investors won't put money to work unless they hafeel the ris is going to pay off. it is notable when the russell

is leading the market higher, that is a true bull market a lot of people will look at transports, financials right now with the 10-year going above 3.1%, you don't want to g there. ly point out i love the regional banks here if you look at the regionals and the insurance companies there's a balance sheet equation here that helps with the rising interest rates right now technology leading higher, small cap leading higher, regional banks leading higher this is a market that's got some legs even though we're heading into what would be a seasonally weaker period, yeah. >> want to get to the cisco earnings the numbers out. they just crossed the wires. let's bring in josh lipton, see how they did >> cisco reporting eps of 66 cents. q4 guide, kelly, is basically in line looking between 68 and 70 cents. the street was at 69 krencents.

looking through the product segments here, kelly, infrastructure platforms up 2% applications up 19%. security up 11%. looks like non-gap gross margins clocking in at 63.9% call starts at 4:30 eastern. back to you. >> all right, josh thank you very much. mike, the shares now 4% on this. >> pretty much in line guidance and on target in terms of the revenue for the past quarter just not enough for a stock up 18% year to date basically overall you've had massive beats. you've had top line outperformance i think that's probably all it is >> you know, i'm chuckling to myself we said that kensho said they typically move around 4% the last several quarters. and now here they are just about 4% feels like people still want that -- it's not like it's solid. it's not one of these quiet stories that does its own thing. if anything, investors trying to

figure out can we bank on one of these to be a solid performer. >> there are definitely questions about the composition of what's growing inside of cisco and what's not this company is trying to be recast as something that's now built for the current moment so, yeah, i do think there's a bit of a disagreement. again, because there's a fair bit of air under the stock 37 for years when it was around 30 and around 30 every time, it didn't really matter as much whether they outperformed. >> how much as well when we're looking at the u.s. trying to crack down on the other equipment makers it's not all apples to apples. slightly different buckets some of the european makers may benefit the most if companies can't work with zte going forward. would you put cisco in that bucket >> i wonder if they are net beneficiary or just selling all around the world anyway and the components come from here and there. i don't know how it shakes out. >> the shares down a little less than 4% right now. jim, where do you think the best -- kind of best place for

investors is to be in the market and by the way, what do you think about some of the housing numbers we've had lately as well >> the housing numbers are going to be strong look, they fluctuate seasonally. you get some variance, but they're going to be strong supply and demand issue for houses has not been resolved the affordable homes will be good for the home builders if you look at this interest rate cycle, i would suggest your terminal point on the 10-year is going to be around 4%, 4.25% if that is the case, that is going to be the lowest terminal point for any rate hike cycle we've had. i would think these interest rate sensitive names are going to be okay i think the housing names are going to be okay in terms of where we want to be, we like financials we like consumer discretionary we like materials. and we still like technology we think all of these areas still have tremendous tail winds

regardless of what the dollar does >> mike, going back to the housing for one second, the number this morning a little bit of a disappointment. but overall, i mean, this is one of those bram tarometers for th whole economy. >> the trend is fine that's the lesson from overall housing starts usually they're going to roll over significantly before the economy runs into trouble. 12-month average now this is from -- all those big declines off a peak, that's well in advance of an actual recession starting the fact this is still going up even on a lower pitch shows you that this is not giving you a signal of much concern but also just look at how much less steep that recovery is. >> for radio listener friends, everything has a sharp upwards and sharp downwards trajectory >> this goes back to the mid-60s.

more of a boom bust economy back then, but still. >> if that's the case, i wonder if that's -- go ahead, jim >> i would point out that if interest rates keep going up and start hurting interest rate sensitive names, you're going to want to see high yield spreads blow out and other measures of risk avoidance before you avoid these areas. i think these areas are going to be fine. >> and you mean housing but also the kind of cycle in general, the economy in general, jim? >> yeah. i mean, the fed's very sensitive to whether the curve is going to invert in here or whether they're getting too aggressive in the hype cycle. some of the things they're watching are market internals, advance declines but things like high yield spreads all of these things right now are pointing to a growing economy and a risk-on status that's going to spell good things for the housing market, too, i think >> i hope the fed's not looking at the advance decline line for stocks >> i wouldn't be surprised >> i'm sure it's in the bucket of all the things --

>> they are looking at internals. >> it's financial conditions, michael. that's the euphemism for looking at the stock market. chris, what are you looking at in terms of the stock market >> right now we think oil, energy, those areas are places we've got room to run. oil prices will continue higher through the summer the number of companies trading above their 50-day moving average. 50-day is moving higher. it is still an undervalued area. retail is also one that surprisingly still has a lot of gems in there. we're going to set best buy coming up here next week i believe it is on the earnings. they're one of those companies that continues to surprise i think there's a lot of opportunity still in the retail sector that goes back to the economy, home building being okay there are some things right now i don't think this ship is shaking too badly. on an interesting note, when you look at cisco and pulling back after their earnings announcement, when you look at the last quarter, more than half of the companies that beat on the top and bottom line sold off

by almost 2% the next day. this is a sell the headlines or sell the news type of market and it's shown those provided opportunities for people to step back in is a great example you and i talked about last week the stock pulled back, everybody started buying it again. so expect to see cisco and those names go down. but there are a lot of people looking for those opportunities to buy the buyback i think that's what helps drive the market through >> we want to get to take-two earnings eric chemi joins us now. >> take a look at these revenues a big miss there $411 million in adjusted revenues that's their net bookings. compare that to $445 million that the street was expecting. that's a big miss there. the stock is halted right now. it's expected to reopen trading at 425 we'll have to see what that reaction is. also the guidance in the next quarter, very light. $215 million to $216 million pointing to the success of

fortnite as hurting all the video game makers like electronic arts. take-two in that boat as well. back to you. >> all right that's setting them up but still surprising to see a stock halted altogether on the earnings >> it's interesting. i was going to ask if eric hadn't mentioned it about fortnite because for activision it seemed like a big deal. i don't know if there's a difference in the game mix here. >> i'm not savvy enough on the content library. >> my peers who have kids of age, they say they're just, like, in deep with fortnite. >> e with just heard the same thing. it's all fortnite. he said i want a pc so badly which is a line i didn't think i'd hear again based on the last couple of decades. anyw anyway, thank you for joining us today. there's still a lot more ahead

on "the closing bell." ahead, much more on cisco's quarterly report, the stock, and the sector plus, are the wheels falling off the logistic system? see how dire a truck driver shortage has become. and climbing a media mountain. does les moonves have a secret weapon in his battle with sherry redstone "the closing bell" with kelly evans live from the new york stock exchange is back in two stock exchange is back in two minutes. not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt. c paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com.

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welcome back cisco just released its quarterly results. stocks recovering a little still down 3.5%. that's despite earnings and revenue beating estimates. daniel flax joins us more. dan, what's your take? >> the early take is positive and the guidance was solid the stock is perhaps selling off because it is done very well year to date i think what's important here is that cisco is continuing to drive its mix towards more software and services. this is leading to increase in revenue and making the business a lot more durable than it has been historically. if you take that coupled with

leading solutions and areas like security and a management team that is returning significant amounts of capital over $30 billion, i think it's a good story over the medium for the long-term. >> do they get helped or hurt by our trade issues with china? do they get helped if the u.s. forces companies like zte a andwawai to do business? are they helped by that or hurt to the extent they can't do as much as in china as they would have liked >> if there are road blocks within the -- that is a problem for cisco and many other companies. at the margin if something hampers the chinese competitors, yes it could be beneficial to cisco. we will all look to have an environment where companies can compete fairly and openly globally and so we think cisco is poised and can continue to execute

nicely globally. >> dan, you mentioned the capital return cisco has been consistently doing are we waiting to hear any details about other plans whether it's due to repatriation of cash on m&a or other things you think should be a priority here for the company >> well, i expect the company to continue with what has been a very consistent plan which is that they're going to aggressively return capital through both the buyback and the dividend and they increased both of them last quarter then they're also going to do targeted m&a what we have found with the management team is that they're very focused on delivering returns to their shareholders and making investments that are thoughtful and able to create value for the company and all of its stake holders over the medium to long-term. >> dan, thanks for joining us. appreciate your thoughts here. we'll let you go cisco shares down about 3.5% breaking news on ford now. let's get to phil lebeau what's happening there, phil >> kelly, as many people expected ford is announcing the

rum resumption of the f-150 pickup truck. it will be resuming production at its dearborn plant on friday. friday is when f-150 production will be resuming in dearborn it will be resuming for the f-150 at its kansas city plant on monday. also on monday, it will resume production of the f-series superduet at its plant in louisvil louisville, kentucky if you look at how long this was down for its most profitable pickup truck, you're looking at a little over a week that's about 70, 80,000 pickup trucks in a week's worth of production fort will likely say they can make that up through overtime and extra shifts o efr the months to come ford resuming f-series production starting on friday in dearborn and monday of next week in kansas city and in louisville kelly, back to you >> all right their biggest seller, best

seller they had some issues getting as much product out already the fire didn't help phil, thank you very much. ford shares not terribly changed on that news but investors probably relieved. meantime, chipotle shares are popping. that firm upgraded chipotle to a buy with a $540 price target that's a hundred bucks over where it closed today. let's bring in the "fast money" traders. welcome to you both. karen, are you a chipotle fan as an investment? >> as an investment. diner, maybe investment, no there's a lot of great things to love brian talked about that. the earnings beat was huge they had a lot of new initiatives, digital and delivery they're back to building new stores all that's really great. that happened when the stock was $320 or $330 and now it's $445 app and so those are all really great things but at that level, those are getting to be

multiples where a lot of great things have to happen for the stock to stay where it is. >> so -- >> they're already accounted for. >> yes, i think so wouldn't short it. but wouldn't buy it here >> it's always been hard to short at least until lately. tim, what would you do with it >> i certainly wouldn't be shorting it either but i don't feel the need to get long the stock with chipotle, we've seen an overshoot of sentiment on the way up and down. the 52-week low is around 247. this is well off those lows. brian nichol, great job. all that stuff the stock still trades at 52, 53 times sales this year. yo i don't think it's enough to say jump out and buy this thing. >> we're solidly lukewarm. >> i was going to say just like the food i get there sometimes

that's not fair because i had the guacamole and it cools everything down. >> the queso is awful. >> i thought it was okay but i was going to say we have the trade back today, mike >> it is back today. it's ridiculous. it continues to track on a five-year basis, these two stocks both the kind of initial rise, huge decline now the comeback i think that karen and tim are both completely correct in terms of saying this is not cheap. it seems it's run too far on the short-term that also represents the predominant wall street sentiment right now. only one out of five analysts recommending it right now. i wonder if all it's about is trying new things. you have newly energized management they're willing to experiment. >> do you like the queso >> i haven't tried the queso >> really? >> i have one daughter who's very loyal very loyal customer. >> well, that's all they needed to hear. tim, karen, thank you both very much >> thank you >> 35 minutes to go until you can catch more of the "fast money" action. top of the hour beginning at

5:00 p.m. eastern. let's go to jack in the box with kate rogers. >> miss across all metrics eps coming in 6 cents miss 80 cents adjusted. revenues coming in at 212. million. the street was looking for $119.9 million on comps they fell 0.1%. analysts were looking for them to increase by 0.2%. company-owned locations. they rose by 0.9% but franchise locations fell by 0.2% and the company is 93% franchise. they also completed the sale of qdoba. they announced as well their board did approve last weekend an additional share repurchase program. as you can see, the stock is down around 4% right now back over to you >> kate, thank you very much also take-two interactive has reopened for trade after earnings earlier we reported there. they also had a miss their guidance was light

the stock was halted it's opened lower about 6% and the company -- well, i don't know if they specifically -- it's not like they cited fortnite that's just been a concern hanging over the stock they make grand theft auto as i've now done my brand research. nba 2k 18. >> the big concern was fortnite was dominating gaming hours 7 -- just that there wasn't enough oxygen >> but ea, who else did we have? >> activision. >> their said their business was resilient. >> up next, cbs ceo les moonves firing a shot against the redstone family in what is an ugly war for the control of the media giant.

is the dollar rallied again today. more focus on the russell being insulated from trade issues that might emanate. s&p up 11. nasdaq up 46 that was nearly two-thirds percent gain today the fight between cbs and national amusements taking another turn minutes ago a delaware judge granted cbs a restraining order against nai.

that was just hours after this shareholder amended the bylaws to require a supermajority of the board of directors to approve dividends. all these moves stem from cbs suing national amusements ahead of a vote tomorrow on a dividend that would dilute the power from 80% of cbs just 17% that would give cbs independence as national amusement's president shari redstone pushes for a merger between the two cbs and viacom could these tensions signal doom for that and joining us now to discuss that are matt belleny and daniel kurnos welcome to you both. matt, let me just start with you. this is a crazy yet obviously calculated gambat but les

moonves. >> the judge said it today in court. never seen anything like this. this is the nuclear option for les moonves. he is going all in and trying to block this merger attempt. and he's using what he says is a legitimate mechanism of this attempt to dilute the voting share so that cbs could make itself independent shari redstone is going the opposite saying absolutely not and now the judge is looking into it tomorrow morning >> there were some analysts who said, look it all looks less likely that cbs and viacom merge we like cbs. the shares would be far more valuable do you hold that opinion i ing. >> i think the market certainly does cbs' numbers had been fantastic. i do think that investors maybe

missing some of the silver linings in the national distribution arena that could come with the merger but if this comes to pass and les moonves has his way, i think the merger is done and off the table. frankly i think the company would be then able to pursue other combinations that could even include cbs on the other side of the table as a potential seller >> right or i was going to say, dan, that there was that rumor about verizon expressing interest in cbs. which the ceo told david faber yesterday we're not interested in going down that path. but do you believe him >> look, long-term, if the right price comes along, i think everybody's a seller cbs is the undisputed i think content king one of the things they've done is really get ahead of this streaming way ahead of everybody else they've got accelerated subgrowth and subrates they've got international expansion of their over the top

distribution platform and how is that not, you know, attractive to somebody like a disney, like an apple, a verizon, a google, amazon one of those guys paying billions of dollars in content >> matt, do you think les moonves is trying to get fired because if he does, he walks away with $150 million-plus if it's before his contract is up >> i think that's certainly on the table for him. he's had a nice, amazing run i think he would likely rather walk away with a fat paycheck than deal with the universe of a merged company there's no question that cbs is the stronger of the entities in the redstone empire. there's an argument to be made that merging these companies could help it better compete with the googles and the facebooks of the world but les moonves is one of the savviest and sharpest in the entertainment universe i wouldn't be surprised if he packs up shop and walks away if

this doesn't happen. >> and mike? >> all i would say is this is all true in relative fortune to the companies. but when they were initially split up, the conventional wisdom was -- >> is the growth -- >> basic cable is the way to go. cbs was the cash cow dinosaur. so i don't know we know for sure how it will play out what is clear, only national amusements is in a position of thinking this is an absolutely compelling ideas we have to put them together at a valuation that really isn't that great for cbs >> it's fascinating. we'll see what happens with the board meeting coming up. matt, dan, thank you both. >> thank you >> thank you >> appreciate you joining us to talk about this story. we have a news alert from the white house. eamon javers, what's the story >> conflict behind the president's trade representatives is now bursting a little bit into public view here we've got conflicting reports now about who exactly is going to be the the president's

delegation to negotiate with the chinese over trade at a meeting that's scheduled to take place tomorrow this involves some inter-personality conflicts inside the white house and the president's trade team it also involves some disagreements over policy direction here let me break it down for you there are reports that peter navarro will not be among the delegation participating in that meeting tomorrow that those reports are out there in the media right now, i'm told, though, by a white house official that, in fact, peter navarro will be participating in the meeting tomorrow despite the fact that the white house has just put out a list of the delegation leaders that does not include peter navarro's name however, there are other sources here and part of the white house complex who are suggesting that account from the white house is wrong. and navarro is being excluded from that event. i think bottom line what's going on here is a broad conflict among the president's advisers among how exactly to handle the china issue. the flash point was the zte

tweet from the president over the weekend. and there's tussling now over what the posture should be on that issue going forward as soon as we can get to the bottom of who is going to be participating in this event tomorrow and who represents the president at the event, we'll bring that to you. >> my guess is sometimes they don't even know. eamon, thank you >> yeah. definitely getting two sides to this story >> yeah. between all of his advisers there. eamon javers bringing us the latest on those trade talks. coming up, find out how a massive shortage of truck drivers is impacting the industry and how much you pay every day for goods. every day for goods. right after this 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

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♪ welcome back you're looking live at the kilauea volcano on the big island of hawaii this camera is mounted a mile from the active vent authorities issuing a red alert warning for aircraft after the volcano started to spew ash. ongoing eruptions begun on may 3rd.

lava's covered 113 acres of land and destroyed 200 homes so far monitoring that for you. bring you any updates as soon as they happen. let's get to sue herera with the news jupdate >> i do. here's what's happening at this hour authorities say a deadly explosion at a california office building is being investigated a as crime and the woman killed in that blast is expected to be the owner of that business two other people wounded in that blast which occurred late tuesday afternoon. michigan state university has reached a $500 million settlement with 332 women and girls assaulted by university sports doctor larry nassar nassat he is serving decades in prison target has expanded its next-day delivery service and cut the price as well. the service is called target restock. it's expanding to more than 60 markets this week covering about 60% of the country and a new study from the

netherlands links a healthy diet rich in fruit, vegetables, nuts, and fish to a bigger brain volume researchers asked 4,000 older adults about their food choices before then conducting mri brain scans. and those with healthier diets had bigger brains. which i guess makes sense. >> tell me that now. all right. i got unbleached wheat flour, sunflower oil and salt and yeast in these pretzel shells. >> well, it's just a snack think of it that way >> that's what i tell myself >> it's not your main meal you're in the clear. >> thank you that's right i'm in the clear sue, thank you very much. >> see you tomorrow. >> sue herera back for us at headquarters and now let's get you caught up to our other big stories of the day in our rapid recap >> futures a little bit soggy here coming off the worst day in about three weeks. >> eps of 48 cents a share that compares to estimates of 36

cents. >> go to the store go to the queens store okay these do not look like they did. now they look fashionable. >> what this model does for us is at $40, we're adding value to our shareholders by still continuing to pay the dividend anything above $50 a incremental cash flow that gives us the ability to do other things with that cash. >> continue with the campaign of maximum pressure if that's the case but like i just said, if they want to meet the president will certainly be ready and we will be prepared. but if not, that's okay. >> dow going out with a 62-point gain but the other average were even stronger >> and the small cap russell is at an all-time high. truckers in short supply and compiearscmbngans e rali as a result we're weighing in as a result we're weighing in next demand a cfa charterholder.

cfa institute. let's measure up.

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♪ you're not gonna say it are you? let's always put investors' needs above our own. as investment management professionals, let's measure up. cfa institute. trucking companies are now offering sign-on bonuses and raises to attract new hires and it's not enough to stem the shortage morgan brennan has more. >> this is a big story it's been a big story for years and it is continuing to get bigger with economic growth underway and unemployment below. 4% it's getting worse the trucking association estimates more than 50,000 drivers are currently needed that's up from 36,500 in 2016. and if the current trends hold, that could balloon to a

shortfall of more than 174,000 drivers needed by 2026 not surprisingly, pay has been climbing that's at 15% for regular route drivers since 2013 i'd note several ceos have recently told me labor costs are much greater than that factor in strong consumer confidence, construction post hurricanes, a new tech based regulation that has pressured capacity, plus rising fuel prices with crude up almost 50% over the past year freight rates have soared hitting record highs in recent months and in some cases triggering delivery delays with baby boomers retiring, many millennials not wanting to be away from home for long periods of time. it's been tough getting new drivers behind the wheel companies have been getting more creative be it signing bonuses you've had many new trucks being ordered. in some cases even stock options being offered by some carriers

or increasingly you're seeing efforts to recruit more women. that's a trend slowly taking root if you go to a truck stop lately, you will see more female drivers parked there >> but they also seem to have plenty of choices. if the labor market broad i ddi did -- i don't think it's just trucking they have their pick of the litter >> absolutely. you've seen the pilot shortage but also you're seeing increasingly it's harder to find employees for railroads as well. and in many cases, it's also a lot of the same labor pool you're seeing go to the oil patch or go to construction. >> right and now that oil's back up, that is too for more let's bring in robert reagan the cfo at milton truck lines. they're a carrier with 400 terminals in the u.s robert, you're on the front lines of this. what are you paying to try to get people on board right now? >> well, we're paying a lot more than we ever had we're in a unique operating environment right now in the transportation industry where demand is at an all-time high

and supply of qualified safe drivers continues to dwindle we have a hard time filling our trucks and pay is skyrocketing >> what's the typical starting pay for one of your truckers >> oh, the starting pay will be in the low to mid-50s but the average melton driver who drives all 12 months this year will make close to $70,000 with our top guys making $85,000 to $90,000. it's a tough job question a we ask our guys to be away from home for extended periods of time and it's a physical job. it's hard to fill our trucks >> what do you do? what options do you have as a business owner >> well, you can change the job. there's only so much you can do there. we offer amenities we have not offered previously we offer programs to make the job as easy as possible. mou much of it is to offer a pay package that make guys want to

come drive for us. again, our pay has increased significantly over the last 24 months and it will continue to rise until this capacity that we're experiencing diminishes. >> so you'd have to pass that along, right you can't as a business owner just say a business owner, sure, no problem, you need me to pay you 10 grand more or 20 grand more how much are you asking your customers for? >> we are passing along, our ko cost increase significantly. we do have to pass it onto stay in business. rates are increasing significantly but like most large fleets in the country, a vast majority of what we collect from our shippers, we have to pass onto your drivers to keep them driving for us. >> robert, we hope you keep us posted it is fascinating. it is not all robots are you going to have to get robots and self driving trucks >> well, i think for the

foreseeable future, we'll need drivers. i am not sure society is ready for a driverless truck i think the driver shortage is going to continue. >> robert ragan is joining us, thank you very much. >> thank you for having me on the show >> he's very good for a cfo. very chatty. >> what are your social media site is getting ready telling you how much time or spent or waste using it up next, the chairmaofn coin shares, he'll tell us what gotten us so bullish ew house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

check this out the nfl is running with robot dummies. the big question is will the players become robotic as well the question is will the players keep playing given the concussion >> if those robots movement are predictable, right can they actually evade and, you know how good are they? the tplayers out smart the robots >> early in training camp. >> they do appear to be controlled by the coach. now of course you can be effectively a drone operator and be an assistant football coach maybe it will help some of the other players. >> soon you will see just teams

of those robots. >> i want them to see them play the nfl champs >> time to take away on how much time you spend on the app is saming user li shamering users are going to drive them away. >> i think if people see it, they'll be embarrassed about it. >> embarrassed to themselves >> man, i can't believe i search four hours >> then you have more faith. >> next, amazon prime numbers will get 10% off of sales at whole foods. it helps them grow prime after they raise the membership by 20 bucks. it feels to go a longer way. >> maybe your prime prescription is valuable. the thing i thought of is if all those prime members were not big

whole foods shoppers poured into the whole foods stores i feel of acapacity issue if they're willing to make it a big thing. >> yeah. >> i will deliver to your house. >> finally, have we reach the peak of credit cards we know no laws have been heating up >> should investors flee the space? >> the stocks, like capital one and discover, they looked pretty cheap and the market kind of figured out that the cycle kind of roll up a little bit. not to say delinquency gla loalf we are going to go bankrupt. >> i don't want anything peaking right now. >> stocks are climbing higher

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here is your headlines cisco is under pressure after failing to impress pressure with guidance take-two has rebounded only 1% now after its result and jack in the box is down 2% mike your two second final thought. >> looking the fallout for this market >> we'll see you bright and early tomorrow that does it foreclosing bell. "fast money" starts right now. >> live from the nasdaq, new york city times square, i am melissa lee. tonight, it continues with danny masters, chairman of coins chair. he says crypto rally is on hold right now but not for long he'll explain. and heitzmann, he'll tell us what sports will mean for the entire industry. we'll start the show a little bit differently tie