we will hear again from lee with stocks seemingly off to the races again. look at shares of energen. near the highs of the day on the news that carl icahn, keith meister teaming up we will see how that develops. that's a better than 6% gain you heard from carl today. that's it for us power starts now here is what's on the menu trade war fears evaporate. is this the green light for another big run for your money we will debate that. treasure secretary mnuchin saying we have made meaningful progress with china. what's next? the latest from washington the best and the brightest, they are the next generation. wall street's top economists and you are going to meet them "power lunch" starts right now welcome to "power lunch. good afternoon

rally on the dow up triple digits, above 25,000 for first time since march 16th s&p 500 at two-month highs industrials on pace for their best day in two months ge helping leading the news on deal news there. that stock up more than 10% in may. boeing flying high as well chip stocks are joining the party, breaking a two-day losing streak the best day in two weeks. micron and taiwan semi leading the way. >> welcome let's give you other headlines in the news right here, big win for business a blow to american workers the supreme court will let companies require employees to sign away their ability to bring class action claims against management about 25 million workers already have these agreements in place prices at the pump pushing higher as we head into the summer driving season. the average gallon of gas, regular, jumping ten cents over the past two weeks to $3 on the

button tesla shares off session highs consumer reports says the model 3 falls short of getting a recommendation it says despite record range and agile handling, issues with braking and controls and ride quality hurt the model 3's overall score. >> thank you we begin with the story that's driving stocks higher today. a trade war with china on hold for now. we have the latest this hour >> reporter: what comes next is the commerce secretary is going to be heading back to china in the next couple of weeks to hammer out the size and specifics of the u.s. portion of a deal that was reached with china over the weekend to increase u.s. exports to china. the treasury secretary this morning said that that deal has been enough to get both sides to back down in what he is calling a trade dispute. >> what i would have really said

is this has been a trade dispute all along. it never was a trade war it's a trade dispute on significant issues, both parties have agreed to suspend the tariffs. our 150, their 50. you saw they dropped the case on friday as a sign of good faith for our farmers. this is going to be fabulous right away >> reporter: chinese officials are leaving washington with clear wins number one, a review of enforcement action on zte. the suspension of the tariffs, about $150 billion in exports would have been targeted and also, this idea that there will be a deficit reduction. they didn't have to commit to a number on that front how long will this trade truce last we asked nec director larry cudlow this morning. even he couldn't say for certain how long >> for this period, for this period. >> what is the period? >> we haven't defined the period

i say for this period but i can't give you a definition of what this period means >> reporter: how long this truce will last, there's one date the administration is keying in on, june 12th. that's the planned summit between president trump and north korea's leader kim jong-un. officials say they can't afford to rattle china, a key national security partner in that meeting between now and then back to you. >> thank you a big rally on wall street on the back of the progress in the trade talks. the dow is above 25,000. bob, it seems like we lost a little bit of steam here >> still above 300 the important thing is you can see the impact on no trade wars have on the dow jones industrial average. look at the big gainers. three dow stock, boeing and caterpillar and united technologies account for half -- 140 points in the gains in the dow jones industrial average

united tech strong railroads doing well micron raised the guidance that's been a major leadership group for a while now. you can see they're up nicely. collectively, fang up, led by netflix. big tail winds, cyclicals have been leading for the last couple of weeks no trade wars, a major plus for the markets, lowering geopolitical tensions. there are headwinds out there. i say commodities at three-year highs. the dollar at a one-year high. ten-year treasury near seven-year high. as long as the economy keeps d interest rates the trends for the market right now, large caps were only 5% below the old historic highs on

the s&p 500. we are there already the advanced decline line, the breath that i watch carefully. there's no sign. the market normally, those lines will turn down before the overall market turns down. selling pressure has been dropping and buying power has been rising modestly a little more interest from the buyers back to you. >> bob, thank you for setting that up. with the dow crossing the 25,000 mark for the first time since march question is can today's surge really last? let's bring in jeff, chief investment strategist at raymond james and jack, chief investment partner at crescent wealth managers i think you are both bullish, now that this looming tariff is at least on hold and a showdown has been averted, does that mean that it's a green light for stocks from here >> i think so. >> that was for jeff, yep, go ahead. >> i'm sorry >> yeah. i think, you know, we called the february flap -- a classic

bottoming sequence, selling climax low on february 6th, failed throwback rally, under cut low of february 9th and said the lows are in and we think we're going to trade out to new highs here as earnings continue to strengthen and the economy continues to do well. >> jack, do you agree? >> well, i think the point was made earlier and i definitely agree. i think this temporary detant with china on this trade issue has really been put in place because of the north korean negotiations we'll see how that goes. i think if the north korea negotiations are a success i think perhaps trade will continue as planned. if for some reason it doesn't happen or north korea falls apart i will say western back to the trade war with china again it's fluid watching these headlines but for right now i would say certainly small caps and international small caps, try to get out of the fray of some of

these big global trading companies. >> does that mean that you would fade or you wouldn't believe necessarily, jack, the rally we're seeing in transports in particular today and industrials? >> i think this is, you know, a bit of a false hope. i mean, you know, kudlow said it himself he doesn't know how long this will last my sense is, you know, this window is open for about a month. i don't think that this is necessarily a precipes of a new leg up unless, of course, kind of this news falls into place. so if, for example, we did back away for real from any trade dispute with china i think you would hear wilbur ross and peter navarro flapping their arms and stomping their feet and that's not what we'ring here. >> no concerns about rising interest rates with the strong dollar may be doing to overseas earnings for the big companies it's full-on bull market for you, jeff? >> yeah. i think we're in a secular bull market i think the earnings continue to

come in better than expected and the strengthening dollar is a double hit for foreign investors not only getting rising stock prices but getting a currency trade as well. i think jack's point is well taken. i think a lot of people have been influenced by the rockiness if you will of the s&p and dow meanwhile, the underlying russell 2000 and more importantly the valley line, geometric, which is a broader based indices are trading out to new all-time highs in the advance decline line this is a new leg up for the equity markets >> we will see gentlemen, we'll leave it there. thank you. jeff and jack. >> you bet you. >> to dominic chu for a market flash on wwe. >> so it is up those shares higher by about 5% in more active relative trading. this is coming on the headlines out of espn saying that wwe has reached an agreement in

principle with fox to have the smack down franchise move over to fox starting in the fall of 2019 you may recall, guys, that last week the hollywood reporter had reported that nbc universal had given up at least the right of first refusal on the aspects of renewing that smack down franchise potentially shopping it around. nbc universal the parent of not just usa network but cnbc. but the moves are moving the stock higher by about 5% at this point. >> dominic, thank you very much. oil prices already trading near 3.5 year highs and summer hasn't started yet are prices going to go higher? we will ask an oil ceo steve liesman doing his alex trebek impression today. hosting the national economics challenge. hi, steve. >> yeah, tyler, i don't wear a suit nearly as well. 11,000 students competing to be right here, right now. the national economics challenge

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welcome back every year america's top whiz kids come to new york city to compete in the council for education's national economics challenge. st. lou steve liesman is there to host the first two championship rounds take it away. >> just in time for the beginning of the david ricardo

division, these kids, sophomore, juniors, seniors, had only one semester of basic economics and we will start the questioning right away question number one, fred lost his job as a ship builder in 2016 his shipyard never reopened and specialized skills no longer in demand >> monta vista you have five seconds to answer. >> structural unemployment. >> that is correct >> all right that's totally unfair for people at home watching on tv i will read the full question so you know this guy -- so -- the shipyard never reopened specialized skills no longer in demand, fred is experiencing what kind of unemployment and it is structural unemployment for regular human beings okay here we go on to the second question here >> if the required reserve ratio is 10%, and the fed buys a

$5,000 bond from a bank, what is the maximum change to the money supply >> monta vista high school you have 15 minutes and you may -- 15 seconds and you may confer. >> 4500. >> that is incorrect steve liesman. repeat the question. >> if the required reserve ratio is 10%, and the fed buys a $5,000 bond from a bank what is the maximum change to the money supply in? >> $50,000 >> that's correct. >> that is correct well done. all right. another question

third question why does a professional basketball player on average make more than a professional football or -- >> munte vista high school you have five seconds and you may not confer. >> the professional basketball player his skill is in more demand than other players of sports >> that's correct. >> all right well done. okay for the next question, we have a video question >> four members of the federal open market committee vote on a rotating basis how long is each rotating -- >> munte vista, you have five seconds and may not confer. >> they will rotate every one year >> yes, that's right >> you answered so quickly we

didn't have a chance to introduce, raphael, the president of the atlanta federal reserve bank thank you. >> it is extremely impressive what they know about economics at an early age and by the way we are -- we will check back in later on and meet the winners of this competition but as you can see very, very -- >> they need to be quicker with the buttens. >> really. >> golly. >> i mean they buzzed in like ten words in it was really -- >> very impressive. >> they only needed two notes of that song for sure. >> exactly >> all right stocks are soaring as the trade war gets put on hold the dow back above 25,000. first time in two months will it stick? much more on china and the rally when "power lunch" continues

oil prices on the rise shortage fears an uncertain geopolitics rattle markets crude has soared price is now up 20% this year. according to our next guest prices could push higher later this summer. dan ebberhart ceo of canary, one of the largest private oil field services company in the united states joins us from oklahoma city welcome to "power lunch. >> thank you for having me. >> what's the catalyst that takes us higher from here? isn't there a natural cap on prices because producers here in the united states will start pumping more >> well, i think that's partially true, but i think there's supply constraints with the takeaway or pipeline capacity in the permian and as

you're seeing the spread widen between written and wti there's room to roam before we hit the natural cap. >> so the problem is not that they can't produce more, it's that infrastructure can't carry it >> i think that's -- i think that's why you're seeing the analysts think that the exports are going to bep capped around 3 million barrels a day and are not going to be able to get higher than that without more takeaway capacity and more export capacity at the terminals. >> i think this is an interesting point that you're making because this is also potentially a headwind or an issue for china actually increases imports of oil from the united states, there's only serp -- there's only so much you can do because the infrastructure isn't quite up to par yet? >> well, i think the infrastructure is not up to par but there's also been a capital spending deficit the last three years. something like $800 billion worldwide in capital projects in the oil and gas industry taken

off the production line during the oil bust, 2015 to first half of 2017, and i think that that's going to lead to kind of the end of lower for longer and that mantra and the beginning of soaring sooner for oil prices. >> so what happens to global production if prices go to where you think they are >> well, i think it's the other way around i think it's global production is going to be capped out and that's what's going to lead to prices soaring sooner. we've got falling production -- >> capped out why? because they are going to hold to their production quotas or what >> no. i think the quotas are a little bit less relevant right now. saudi arabia wants oil price to be higher, for partial i po and i think production is falling in angola, and in algeria and then basically a catastrophe on the presspy presspy -- precipes of in

venezuela. right now it's 1.4 billion barrels a day and falling per month and i think we're on the verge of falling off a cliff with the venezuelan production if the u.s. enacts sanctions or some kind of regime change, or the production falls anyway or despite or because of that, the rally is going to pick up steam and it's going to increase even faster >> we were just putting up your predictions and they're pretty shocking $120 a barrel by august and that i presume is on brent? >> that's on brent, but i think if we hit -- which right now is around 80 but if we hit several of these trip stones with venezuela and the economic -- venezuela production falling off a cliff and angola and algerian production falling and bottlenecks in the u.s., coupled with synchronized world growth it's a distinct possibility. >> but do all these things have to line up in terms of all these bad things that have to line up in order for 120 to hit? what is the probability of 120

hitting? >> i think it's relatively low, but i do think there's a high probability we exit 2018 with brent above $100 a barrel. >> what will this do to the economy? the u.s. economy >> i think the u.s. economy will be negatively impacted by oil when wti hits about $80 a barrel it will start negatively impacting the u.s. economy and we have to balance that. i think the u.s. production growth will help oil producing states like texas and north dakota in the short term, but i think that the price at the pump effects an awful lot of american consumers and a bit of a wet blanket on economic growth going forward. that starts around 80, $85 a barrel, wti. >> thanks for sharing your thoughts with us canary ceo. >> a big rally going on on wall street right now the dow passing 25,000 for the first time in two months we're up about 300 points. companies with a lot of china exposure like boeing,

caterpillar and apple all big winners, but should we trust that trade war won't be back on? plus, there's an internet meme, any pizza is a personal pizza if you try hard and believe in yourself well, coming up, we'll show you one baseball fan who really believes in himself when "power lunch" returns but for cyber criminals it's plenty of time to launch thousands of attacks. luckily security analysts and watson are on his side. spotting threats faster and protecting his data with the most securely encrypted main frame in the world. it's a smart way to eat lunch in peace. sweet, oblivious peace.

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hello, everybody i'm sue herera your cnbc news update for this hour gina has pell sworn in as the first woman director of the cia after overcoming concerns about her role in the agency's harsh interrogation techniques president trump traveled to the cia for the swearing in. >> i just want to thank everybody in this room for doing such an incredible job and for giving gina that unbelievable support that she needed. it took courage for her to say yes, in the face of a lot of very negative politics >> netflix says it has reached a deal with barack and michele obama to produce material for

the streaming service. they will produce a series of high-profile shows potentially including scripted and unscripted series documentaries and features and kensington palace released three official photos of the royal wedding day the photos were taken after harry and meghan took their carriage ride through the town of windsor the photographer alexi lube rin ski who said it was an honor to take the portraits that is my personal favorite it's just beautiful. >> it's so casual. >> it was a gorgeous ceremony and a gorgeous day what's not to like >> it was fun to watch, wasn't it >> it was. >> with wilfred doing the call. >> yes. >> so fun. >> very entertaining >> thanks, sue. >> thanks, sue. >> you got it. >> a check on the markets right now, rallying on the dow up nearly 300 points. the s&p 500 is higher by about 0.8% the nasdaq up by 0.6%. the stocks leading the way, boeing adding more than 80 points to the dow.

united tech, intel also higher as china trade fears lessen and intel getting a boost from micron upping its third quarter guidance for more on the stocks getting a boost from china bring in dominic chu. >> all right so melissa, you mentioned the four stocks, united technologies, caterpillar, boeing and 3m. those four have made up more than half of the dow's gains so far today. boeing the biggest one because many of these big industrial companies in the dow get a lot of their business from china, so according to msci and fact set data these companies have a lot of -- at least maybe stuff to gain or lose when it comes to china trade policies. united about 9% of sales from china. caterpillar 9% boeing 11% and 3m 13%. these four are in the trade talk conversation when it comes to stock movers i will toss in, guys, another set of stocks here and these are consumer related names and the reason why they're important because they get a lot of their revenues from china as well.

walmart, 0.1% of its sales profile. tiffany 13%, starbucks, 15%, mcdonald's 15%, and then apple, 20%. so as the consumer becomes a bigger force in china will these consumer names become the next stocks perhaps in the cross hairs when it comes to trade talks. back to you. >> thanks very much, dom good run down there. earlier on cnbc treasury secretary steven mnuchin said the u.s. is making meaningful progress on trade with china and he is optimistic about the road ahead. >> what i would have really said is this has been a trade dispute all along, never was a trade war. a trade dispute on significant issues both parties have agreed to suspend the tariffs, our 150, their 50 you saw they dropped the case on friday as a sign of good faith for our farmers this is going to be fabulous right away >> are we actually going to make real progress on trade let's bring in stefan seelig

managing partner at bridge spark advisors, former undersecretary of commerce and john rutledge chief investment officer and a cnbc contributor good to have you here. what do you think, a lot of people say okay today is good news, the market likes it, particularly the industrials but we've had a number of market participants say, wait until after june 12th when the president meets with kim jong-un because then once that's over, we don't need china's help as much anymore, and we can really see what happens with trade. do you agree with that line of thinking or see today as good news >> i think it is good news and i don't thinks that's a sin nappic connection between the conversations and discussions on china what's going on in north korea. i think they are trying to deescalate the tension the issue is we were never going to have a trade war in china because it was an unwinnable one. >> that's good news if it sounds

like both sides have backed off the worst. >> it will be good for the market and american businesses the question is, as opposed to focusing on this one tweetble sound bite of $200 billion of increased exports to china, are we going to really get at the structural reforms that are necessary to make it better for u.s. businesses to compete fairly in that market. >> john rutledge, larry kudlow hinted at that somewhat. what's your assessment of what's happened here in the last couple days on trade? >> i think it's a move in the right direction. you know, stefan and i were on the week before last and both said this trade is not something you can win with tweets or sound bites. it's not one grand solution. it's a thousand details down in the trade. it's soregum, a specific grade of aluminum and so forth a lot about which americans win and lose from various trade decisions. but it's good that the trade war talk is down it's good mnuchin came out and said today, oops, i really meant trade dispute. and it's good that larry and the

free traders are ascending and peter and the protectionists are receding inside the white house. that will help these conversations with china go on i agree with stefan this has almost nothing to do with the north korea meetings china doesn't want nukes on the korean peninsula either. >> so neither of you -- you see what mr. mnuchin said yesterday as a slip of the tongue and a forgivable one in other words he got a do-over today and took advantage of it i'm curious that neither of you think that there is a connection between the discussions with north korea and chinese trade and that some of those wheels are intersecting john >> well, look, china and u.s. are the two biggest economies in the world and intersect in a million ways all these things on the mind at the same time. we don't really have a well laid out program for how to deal with asia, china, trade, north korea, and all that

it comes out one tweet at a time so we don't know how to project into the future. you know, mnuchin said what he said you can forgive him or not but today he said something sensible and that's good. and the more talks we have and the more our team gets to know their team the better off we'll be so open markets are always good. anything that we can do to open markets or protect intellectual property is a fine thing to do it just takes time and work to do it. >> stefan, tyler mentioned north korea. whether that's part of the negotiation here or not, john referenced the other sort of mystery which is who to listen to within the administration mnuchin and kudlow were on but "the wall street journal" paints this gap in philosophies within the organization in the trump administration on how to deal with trade, navarro on one side and lighthizer, kudlow and mnuchin on the other the president has wavered between both how do we know what's going on >> not just playing out in

china, in the nafta negotiations we're seeing at the same time which are further advanced and at least theoretically more solvable i think both john and why agree that we are much more supportive of the approach that kudlow and mnuchin seem to be taking here in terms of potentially making progress on these important issues. >> john, the white house -- i mean "the wall street journal" rips lighthizer and blames him that if there's no progress on nafta and we don't get a deal done on nafta it's his fault? >> well, he is the point man and when bill simon told me once when i was a boy scout i was a bugler because it was my bugle he's the guy with the bugle at the moment he gets blamed for everything. but i think stefan's point is the right one. larry has been getting more air time lately explaining policies to the people and as we all know, larry is a friend of mine for 40 years, larry is an articulate guy and he is winning the war of words inside, and

they're also finding out that when you deal with another country as big as china you have to get along and so you have to deal with the details and the facts and there's no swift solution to the problem at all the question that i wanted to raise is the tax policy. trump's tax policy is exactly going in the opposite direction of his trade policy. and no one seems to talk about that if you lower tax rates and cause american and foreign companies to bring capital back into the u.s., that capital inflow in and of itself will correspond to a higher trade deficit not a lower one. that's double entry bookkeeping. >> we'll add you to the list of every person, i mean there must be -- i think we've had 1,000 gue guests who make that point over and over again. >> to that point this $200 billion trade deficit reduction is just going to come at -- >> the chinese didn't agree to

that that was not announced >> first of all i don't know how we will get through the fuzzy math selling 12 of roughly $22 billion of soybeans to china as it is. even if we sell them every last soybean we own or produce only going to make up a small portion of that $200 billion my biggest concern in the $200 billion it's not going to be an overall trade deficit reduction. we're basically pushing on a balloon and all we will do is increase the deficit with some other country or decrease the surplus we have with some other country if we continue to focus on this one bilateral trade deficit number >> exactly right. >> thank you good to have you >> good to be here >> other big news out of china today, china may actually end its birth limits perhaps as soon as this year according to reports it's been roughly 40 years since china instituted a one child policy expanded two years back to two back in 2015.

now they're considering doing away with it altogether. last week we reported the birth rate in the u.s. dropping to a 30-year low. the fear is there won't be enough young people to support an aging population. guys, they've also got a little bit of a gender gap in china for every 106 en, that there are, think there's 100 women. a little out of balance because of these. >> even when they raise the birth limit to two the birth rates didn't go up that was the shocking part now they're saying let's take it off the table here and see what happens to the birth rates >> what's interesting is it was very predictable, right. anybody could do the math over time if you had more boys than girls you would end up with a problem if you limit to one. why did it go on for so long in part because they have a huge bureaucracy employed to enforce it and they didn't want to lay those people off or try to get them to do something else. the vested interests that you see all over the world, that was part of the issue as well. >> either way a little market

reactio reaction danone the french company that makes baby food in china went up a lot today on that >> we're going to talk about china check out cnbc.com for a look at the tech stocks that have the most to gain as u.s./china tensions cool. >> mean time take a look at amazing video coming into the newsroom lava from the kilauea volcano shooting high into the air look at that clearing the tree topps, visible for miles following the eruption on the big island the lava closer to residential areas. miguel is on the big island. >> reporter: this is one of those massive fissures that have opened up in residential areas more than 20 of them even at a safe distance away we can feel its heat and power fountains of lava like this have destroyed more than 40 homes it's the reason why 2,000 people are evacuated. many of these lava rivers are now pouring into the ocean miles away that's creating concerns over air quality. there's also been another

explosion at the crater sending a plume of ash into the air. certainly a dynamic and volatile situation here on the big island back to you. >> a live shot that was. >> it was. let's get to the bond market rick santelli tracking the action at the cme. >> melissa lee, it's not a big range day for the fixed income market but it is a big day nonetheless. look at a two day of 10s, particularly pay close attention to the fact that we've leveled off a bit and gave up some upper ground in yields with respect to friday all maturities are about a basis points higher in yield than they close. if you look at two-day of bunds the playout is different instead of flirting with 60 we're couple away from 50. the spread is in order 10s minus bunds, your screen is right, 254 basis points. my records go back to 1989 and the highest close is 266 basis

points this settle as you see on the year to date chart at 197, which means we're up 57 basis points on this spread look at italy and everybody seems to be, it's the canary in the coal mine for the longevity some believe as to the arrangements with the european union. their two-year note yield was negative on may 15 it changed on may 16th it's now positive 26 basis points look at that chart and finally a year to date of the pound versus the dollar. flirted with negative on the year on wednesday and friday now it seems to be trading with some intensity and we these to totally pay attention here after, of course, mr. carney surprised the world to some extent by laying off any more type quantitative reversals of the stimulus policy at the bank of england melissa lee, back to you >> all right rick, thank you. coming up, before we can unveil a new list of cnbc

disrupters we have to say good-bye to the graduating class of 2017. closer look at the disrupters that have joined the establishment. plus, a big rally on wall street every sector of the s&p 500 is in the green "power lunch" will be right back

tomorrow cnbc will unveil our disrupter 50 list. five members of last year's list have graduated, gone public, and three of them were taken in our stock draft. julia boorstin joins us with a closer look at the class of 2017 julia? >> sara, five companies from last year's list have gone public as of now but that number will be six as of thursday when

green sky is set to start trading. the atlanta-based on-line lender looking to raise $750 million in an ipo on the nasdaq of the five new stocks from last year's list, four of them are in the green so far let's take a look at their performance. >> blue apron is the only one that's had a rough go. its stock plummeting 75% since its june ipo the meal kit delivery company hoping teaming up with costco, airbnb and cookbook author model chrissy teigen will drive growth mongo db, its stock soaring 90% since its october ipo. the data baste software company adding this quarter alone. >> one of the biggest markets in enterprise software. >> dropbox raising $750 million in march the biggest tech ipo in a year.

>> our investors are excited about our model and we have scale. >> the file sharing and storage company giving up gains after it first earnings report. >> spotify has opened. >> since spotify's direct listing in april its stock is up more than 20%. though weighed down after its earnings report on questions about its ability to grow paying subscribers in light of competition from apple dock cu sign, since going public, has gained more than 50% as the e-signature giant grows subscriptions and investors see the potential to grow overseas and disrupt adobe. >> of the total of 147 companies that have been named to our disrupter 50 list over the last five years there have been 25 ipos in total so who could be in next year's list of graduates, we'll unveil this year's disrupter 50 list of fast-growing startups tomorrow morning in "squawk box." back over to you. >> that will be an exciting unveil looking forward to it every

year thank you. tensions between russia and the uk heating up and one of the world's richest men now caught in the middle of it. russian oligarch and owner of chelsea soccer club roman abrom vich forced to return to russia because his visa hasn't been renewed. he had to miss the team's big win over manchester united in the fa cup final over the weekend because he can't enter the country. u.s. has named him a corny of russian president vladimir putin. you can government has been cracking down on wealthy investors coming into the country and the move comes amid tensions between russia and britain following the poisoning of a former russian double agent in the uk in march britain blames russia, kremlin denies involvement all over the world guys, they are going after the russian oligarchs saying -- >> tied to putin. >> exactly >> you want to live in other parts of the world and bring your money in other parts of the world but let this guy stay in power not going to happen. >> it's going to happen more and

more. >> yeah. happening in france and the united states. >> they have increased tensions because of the spy episode. >> for sure. >> between the uk. >> but it's still feels like a coordinated effort out of europe, the uk and united states. >> no matter how many billions he's put into chelsea. >> right. >> coming up, and they won, coming up, we're going back out to steve liesman for round two of the national economics challenge. remember the "seinfeld" episode george gets caught on camera eating a messy ice cream sundae. a fan who puts him to shame. it's all on video. stay with us

check this out, this is a baseball fan enjoying some ice cream. 12 scoops, three pounds of -- oh, my gosh, of ice cream, 2700 calories and you can see it comes with four spoons. he didn't need those he ate it all by his lonesome lovely self. $17, but you really can't put a price on that kind of happiness. the white sox are so bad that i can understand why you would go through a helmet full of ice cream. >> that is my favorite part

right there, when it is melty and you can drink it >> i could almost do that. i'm such a fan of ice cream. >> 12 scoops >> i won't offer to try, but i k food has improved at baseball games. >> oh, it has. >> only place i'll have beer is at a baseball game >> and a hot dog, too. >> you wouldn't get sick to your stomach with that much >> i'm not saying i wouldn't, but i'm saying i might be able to do it >> all right the 2018 national economics challenge quiz bowl is heating up testing the high schoolers knowledge of everything from monetary policy to the marshall plan so let's rejoin steve liesman in new york city. >> thanks very much. yeah, la competest competent wen to the last question and if you thought they were smart last time, this is the adam smith division where they

are the advance placement kids and honors class kids. this is unbelievable lexington on my right from massachusetts, mount hebron high school from maryland launching right into the questions here if a tariff is placed on an imported good, what will be the impact on domestic consumer surplus, domestic producer surplus and domestic welfare >> lexington, 15 seconds you may confer. >> consumer surplus up, producer down, and total welfare up >> can you repeat that please? >> consumer up, producer down,

total up >> that is incorrect >> so here is the question again. what is the impact if a tariff is put on consumer goods? >> consumer surplus decreases, producer surplus increases and net welfare decreases. >> that is correct well done. all right. here is a good one here. question two, what rule named after the federal reserve chairman who proposed it -- >> lexington, you have five seconds. >> volcker rule. >> that is correct >> not bad i don't know how many of our viewers could do that, but here is the full question when rule restricts the united states banks from making certain speculative investments that do not benefit their customers. well done. moving on, question three, twitter is not much fun if you happen to be the only one who

uses twitter >> mount hebron, five seconds. >> network exeter naturalities >> that is correct >> i don't know if you are making people at home feel bad about themselves or good about the youth of this nation one or the other but here is the full question. twitter is not much fun if you happen to be the only one who uses twitter what type of k3 ter naturality is necessary and in this case it is network question four, a federal reserve bank -- >> i don't understand how these kids are answering this without even hearing the question. >> they are that good. >> impressive. and very timely on the tariff one as well i might add. we'll continue to follow that and bring you more highlights coming up on the second hour of "power lunch." you also hear from the winners of the economics challenge, the kids who could actually be fed chair one day. and we'll debate whether google has gotten too big and too powerful, and the dow back above

25,000

here is what is on the menu. rally on, investors are buying in as a trade war with china is

put on hold. how to play it coming up plus the google debate, is the company too powerful do they just make better products we'll debate and pucks, ponies an parlays a cinderella story in hockey, potential for a triple crown and shorts betting second hour of "power lunch" starts right now welcome to "power lunch. stocks in rally mode as a potential trade war with china is put on hold the dow hitting 25,000 for the first time since march and right now we're up by 1.25%. well above the 25,000 mark s&p 500 up by 0.8% russell 2,000 up 0 ppts 6% all 11 sectors on the s&p 500 are being led higher by industrials, real estate consumer discretionary, boeing, ge and caterpillar leading the

dow. merck is lagging boeing is on pace for its best day since april 25 and csx, union 26 on the mark. and here is what else is happening. president obama and michelle obama have signed a multiyear agreement to produce films and series for netflix no word on how much the deal is worth. starbucks says its restrooms will now be open for all visitors whether or not they make a purchase. the policy applies to its more than 8,000 u.s. cafes. and the tesla model 3 will not get a recommendation from consumer reports the group saying issues with braking controls and ride quality hurt the overall score and we begin with the temporary trade truce between the u.s. and china in that dispute, not war will it last and what happens now? kayla tausche live in d.c. with more >> reporter: the next order of

business is for the commerce secretary wilbur ross to go to china to hammer out the specifics for the u.s. agricultural and commodity exports that china is expected to buy as part of the u.s. side of this deal i'm told that trip will happen in the next two week and the timing is not insignificant. the u.s. wants to keep momentum moving in a positive direction ahead of that june 12th summit between president trump and kim jung-un whose attendance at that meeting china will play a very integral role in that meeting an tie into adrian peterson is one reaswoon wrks - interest why john bolton wants a bigger role in the talks they want to keep bolton looped into all the developments. so we'll see where his interest lies and what role he ends up playing. in the meantime u.s. officials are saying that while this is a truce and both sides have been

standing down, they didn't commit to a specific time frame. this morning nec director larry kudlow says at least from a u.s. perspective, tariffs had been suspended but not taken off the table entirely >> you cannot remove tariffs as a negotiating tool or enforcement tool from this process. you cannot do that and therefore i don't think we're saying tariffs are over. far from it. >> of course businesses and markets want certainty when will this truce be finalized, formalized, made permanent? we will see. for now at least the market seems to like the news back to you. >> they sure do. thank you. ble let's get to the nyse mike, we're close to a decision point. why is that? >> yeah, i think we've been building toward it i'm not really talking as much about dow 25,000 as the s&p 500.

up above 2730. a couple things above there right in the immediate distance, one is last week's high which is about 2740, that was about 11:00 a.m. monday, we chopped lower from tthere. mid march, the market fell and has not regained and without getting too focused, to me it separates the distance between a market that is still repairing itself and one that is fixed and back into the upper end of the range >> no trade wars, mnuchin is getting good at the right headlines. that is a major tiail wind now already before that we had been seeing cyclicals in general move up they are leading again today it is an industrial rally moving things forward but there are some headwinds still. commodity at a three year high, dollar at a one year high, i think the market can be fine with this as long as the rates don't move up too fast and as long as we get growth. if we get a slowdown in growth

anywhere later in the year, those facts, that will be a major problem for the overall market but if you look at the advance decline line for example, we're at new highs and normally as you know the line will go down before the market. right now they are holding up pretty well. and you see the vix has been dropping for a while >> i think the market's been regaining some ben be fit of the dow because of the stuff internally that is all to the good. a question of how much power is behind this move from here >> all right, guys, thank you. so how do you play this little rally and can it last let's bring in chad and brian. chad, do you think that this nice little rise that we've been seeing can continue for example through the end of the year and if so, what kind of gains do you you expect us to end with? >> so we are expecting positive gains roughly between 5% and 6% on a total return basis.

the market is adjusting to growth, inflation and interest rates. that will be the thematic for the entire reayear but we recommend boring companies and stay balanced. volatility will be here for quite some time. >> so brian, rates are moving up and we expect them to go up even more the dollar is stronger than it has been though it hasn't been in breakaway mode those two things could crimp growth among big multinationals, couldn't it? and might that be a headwind for the market not to mention oil moving up? >> right i mean if you continue to see the dollar strengthen significantly from mere, then we would need to reassess our view on the market similar to what we saw in early 2016 when a sharp rise in the u.s. dollar led to an earnings recession for big multinational companies. but in our mind, what is likely to be different here is, yeah, the dollar is rallying on expectations on good growth for

the united states in the second half of the year and it should be there is a lot of stimulus but where is all that stimulus going to go? we still think a lot of that finds its way to the rest of the world similar to what we saw with the bush era tax cuts, really beneficial to emerging economies. those emerging economies should catch a bid on their currencies. so we're not of the mind right now that the dollar will go severely higher and crush this market, but if it does, then if the dollar keeps strengthening, then we have to gave some some concerns >> and i think of my beloved consumer staples down 13%. some of these food companies down 30% for the year like campbell's soup. you're not throwing in the towel on those >> well, we've owned them about three to four years and have done quite well overall. there are companies within the consumer stainle m consumer staple market that show

value. walmart, proctor and gamble, they are quality companies that are consistently growing we believe that they will do quite well you could also look at the health care a sector we're not just investing in consumer staples pfizer, merck or united technologies and 3 m so there are seams of opportunity for value investors even in a market where you are looking at 5% to 6% total returns for the next several years. >> i think this is an environment that will continue to favor the cyclicals it will be technology, industrials, energy like we've seen because the global economy will be doing quite well in my mind the next time we see the value oriented parts do well will be in the lead up to the recession and into the recovery. so in our mind at oppenheimer funds, this is still a growth in a slow growth world environment, but the value market, that is for the next cycle

>> and we have to leave it there. gentlemen, thank you breaking news from the white house. >> reporter: the white house is announcing that the president has signed a new executive order in the wake of that venezuelan election which the white house calls frauduleu frud's u frud u. this blocks the sale or purchase of venezuelan debt and this is important because the treasury department and u.s. officials allege that venezuelan officials are selling accounts receivable for state owned companies at pennies on the dollar and there by stripping the venezuelan people of their hard earned assets they say they want to take the step now to stop that process from happening specifically what they are blocking here is the purchase of any debt owed to the government of venezuela including accounts receivable, any debt owed to the government pledged as collateral after the effective date of this order including accounts receivable again and also the sale, transfer, assignment or pledging

as collateral by the government of venezuela of any equity interest in any entity in which the goefrnlts of venezuela has 50% or greater ownership interest so the idea is to block those officials the united states says are corrupt from selling off that debt and enriching themselves personally. >> or stop things already happening a lot, and you see this in almost any country that is both corrupt and desperate for cash is when they start selling offer national assets like oilfields th s they have bn getting big chunks from. and this is interesting, it says the perform of any debt owed to the government of venezuela. to me, that reads like you can't trade venezuelan debt any more i would find that hard to believe, but they grandfathered in the last time they did something like this. so we'll have to watch and see what that means. but certainly to your point, they are trying to put the squeeze on the regime so that

they cannot sell stuff in order to bring in much needed cash >> and on the conference call for reporters, they emphasized the idea is to protect the venezuelan people from their own government >> imagine if they don't grandfather in, this would be mass selling >> you would have to mark them zero, like what happened when they did the north korea debt for example. >> so their economy in shambles, hyperinflation and now potentially bust of foreign debt >> the inability of them to sell anything to raise cash >> more problems >> yes all right. here is what else is coming up on "power lunch. google under fire following that "60 minutes" investigation has the company really become too powerful does it need to be regulated we'll debate plus you've seen them battle it out, but who will take the top spot the winner of the national

economics challenge joins us ahead. and from fr puck pucks to pony,o big sports stories [whistling] hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles. kayak. search one and done.

google shares are shrugging off a 60 minutes oig investigation into whether the company has become too powerful. josh lipton is live in san francisco with the latest. >> reporter: michelle, "60 minutes" emphasizing two broad vitt civil criticisms one antitrust lawyer calling it a monopoly and also yups highlights that i stifles competition. >> you provide great content in one of these categories that is lucrative to google and seen as potentially threaten, they will snuff you out. >> what do you mean? >> they will make you disappear. they will bury you >> reporter: google shot right back at that criticism though telling cnbc our responsibility is to deliver the best results possible to our users, not specific placements for sites

within our results we understand that those sites whose ranking falls will be unhappy and may complain publicly still pressure to regulate tech companies is mounting in washington treasury secretary steve mnuchin on cnbc this morning saying that the justice department should be taking a harder look at tech company power. for all the tough talk though, google's core business continues to hum last reported results on april 23 advertising revenue surged 24% to nearly $27 billion. >> josh, thank you we have university of southern california's jonathan taplin featured in the report and also analyst with us to look deeper into this issue gentlemen, great to have you both with us jonathan, i'll start with you because there are natural monopolies out there that don't necessarily need to be regulated and then ones that perhaps need to be regulated. what is the foremost reasons as to why you think google should be regulated

because it seems like the arguments that "60 minutes" put forth yesterday do not concern investors one iota >> well, i'm glad you recognize that google is definitely a monopoly we call it a natural monopoly, so maybe it is like the bell telephone company, at&t in 1956. and what we did there, we said to at&t, okay, in return for your monopoly, you have to license every piece of intellectual property you will own for free to any american company. so out of those free patent which is happen to include the trans transiter, laze, semiconductor, cellular system, satellite, came the explosion of what we now call silicon valley. so hp, texas instruments, fair child semiconductor, motorola, intel, all of those made possible because at&t was forced to license for free its patents. >> if we follow your logic, does

that mean going the has to lie insi goings has to license its search technology >> yeah, and i think they should also license their autonomous car patents. >> what is good at having intellectual property if it is common >> the point is that there has to be a tradeoff if google is a monopoly which obviously anybody who has 90% market share is a monopoly, then google has to do something to put back into the commons what it is taking out which is, you know, google grew to be the second largest cooperation in the world by market cap in ten years simply because it has an extraordinary ability to create value off of other people's content youtube says to the music business your kept is going to be on youtube whether you want to or not. so you ever no choice.

so youtube has 60% of the streaming music business and pace almost 10% into-46. >> i want to get jimmy into the conversation friday we got the headlines that there was going to be a "60 minutes" report. shares of alphabet dipped and today it is like nothing happened nothing cares. nobody is worried about the arguments that have been around for so long and the last antitrust case brought by the department of justice was more than a decade ago. but should investors really be worried, is there something there to that case >> i think politically there is a grarts interest in left and the right. i don't think that takes it is 8 issue and i don't think it is going away and particularly the democrats want to make this the core of the new progressive party, progressive birth and battles against corporate power and

trusts a lot of democrats would think that is an opportunity but if you watched "60 minutes" or listen to a lot of the antitrust arguments, you begin to realize that these are solutions in search of an actual problem. google is highly competitive company. they -- google, amazon, facebook, they compete against each other they compete to create new businesses where currently there isn't any competition because they are creating a brand new business and they are innovati e innovative they are spending hundreds of billions on innovation we're not at the end of history. they will not be dominant forever. >> and consumers like them they have a favorable view of an amazon and google and that is where antitrust -- >> people who don't like these companies are competitors and

activists. consumers love them. you would have to give a consumer $20,000 a year not to use google search. $1,000 not to use facebook because they value them. there is value that is being created. >> and so where is the harm, who is being harmed by google? >> first off, the idea that google, amazon and facebook competes against each other is nonsense there was a point when google was pushing into the social media business with google plus and so facebook said we'll go into the search business and then within six months they said never mind >> hold on one second. who is harmed? that is what ultimately the regulation comes down to who is losing out here >> who is harmed is producers. in other words, everybody who is a musician, music revenues have fallen by 78%.

revenues for newspapers have fallen by 82%. book revenues have fallen by 60%. anybody who is an intermediary who is trying to produce stuff -- >> but that is the sfwherinterno google >> which is why a lot of activists like jonathan are trying to create novel theories of harm. it's the producers, no, bad for democracy, no, wait a second, they are creating inequality no, it is -- the measure of harm isn't there which is why the companies have been winning the ftc cases and they will continue to win because consumers are getting massive consumer surplus from these services. >> so as you saw last night on "60 minutes"," google was fine

2 pp $2.7 billion ftc had the exact same information -- >> why do you want to mimic a regulatory system which has created a wet blanket over the entrepreneurs in europe? their platforms don't exist. >> it is totally nonsense. the eu is actually putting a set of -- >> where is that ghoogl google,n >> let him finish. >> they are putting a set of privacy regulations that every company will so to listen to and that is the first time in the history of the last 20 years. >> the spirit of jimmy's criticism is that when they put in those regulations and because of the nature of the eu using regulations frequently, they will never on their own creative a google or facebook, it just couldn't happen there. >> well, first off, u.s. is the largest market for these kind of startups that exist in the world. >> why ask yourself why >> but the very fact that google has 90% share is the exact

clearest idea that google is a monopoly and as you saw last night, they are using their monopoly to advantage their own -- >> that didn't mean -- >> if you would let me talk for a second, i'd appreciate it about that. >> i'm sorry >> they are using their monopoly to advantage their own services. now, the very fact that google says we're very sorry companies like yelp get pushed to the fourth page of the search box but we've got better services, well, that is just google making its own -- assuming that it has the best service andgoogle is using its algorithm to advantage its services over those ever anybody else that is doing that. and by the way, they are not the only one amazon is advantaging its content over its competitor's content. and this will be a constant refrain for the next few years

look, google and facebook took 88% of all new online advertising revenue. what does that tell you? it tells you that they are using their advantage from all the data that they have over everybody else >> i think it could also tell you that actually people like google and so they use it versus any other search engine that is out there and they use facebook to advertise because -- >> consumer preference >> every single one is paying a 20% to 30% to going him and amazon for their advertising >> thank you so much we won't solve it today. but a fun discussion about that. >> my pleasure this room is full of the brightest young minds in america. the winners of the economics competition up next. and as we head to break, take a look at some of the retail names rallying today

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welcome back you've seen them battle it out on this show now the winners of the national economics challenge have been named and they are standing by with steve liesman steve, introduce us to the geniuses >> yeah, we have some winners here it was a tight battle. came down to the wire. big round of applause for our winner winners. and lexington high school massachusetts winning the adam smith division what do you like about economics? >> it's very applicable to the real world and honestly, i just wanted to shout out to all my teammates here without them, i wouldn't have this high of a level of interest in economics and these guys inspire me. >> are you saying you were kidnapped into this? >> yes -- no, they helped me all

the way. they picked me up late in the year to do this competition, they helped me a lot and without them, i wouldn't be here >> who is your favorite economist? >> i think milton friedman >> why >> i just think that he has a unique way of looking at economics. i think he provides a unique perspective. >> he likes his hair style >> all right jeffrey, how does it feel to be not the smartest kid on the block but one of the smartest kids in the country when it comes to economics >> feels amazing to be standing here in front of this crowd of people and i'd really like to thank the council for economic education for bringing together these students who are all passionate i've gotten to meet so many other people who share my same interests. it's been such a great time. >> caroline, what can you say to imwith and girls your age about being involved in economics? >> i think despite how many boys you've seen on this stage, women

can succeed just as much and we're really needed in the economics course >> is it cool do economics where you're from? >> we have a rather small economics team, but i think it is pretty cool >> can we get a gatorade dump on the winners? with. >> we have to wrap it up, but how is it important to even too these kids >> to let them know how to operate in the real world. and better success, better outcomes, better decisions for their families, themselves and their countries >> all right, china versus the u.s. facing off in the finals. just the second year in a row. there were 1,000 kids competed in china, they brought 64 again here and they will compete against the u.s. >> that will be quite a competition. steve, if this cnbc doesn't work out, you've got a game show --

>> a future as a game show host? >> yeah, bob barker, wing mk martindale >> bob barker, richard dawson? what is my -- >> richard dawson without the kissing. >> i didn't kiss anybody on stage, just for the record >> steve, thanks and congratulations to all the winners. now to sue herera for a news update >> thank you very much here is what is happening at this hour. the father of texas high school shooter dimitrios pagourtzis says that his son was a good boy who had been mistreated at school in a brief phone interview with the "wall street journal," antonio pagourtzis says that he believes bullying was behind the shooting paraguay opening its new embassy in jerusalem its president dedicating the embassy along request with

israeli prime minister benjamin netanyahu. >> i want to begin with a salute to a great personal friend of israeli, president of paraguay thank you. you are an unbelievable friend >> a rocket took off from nasa's flight facility on the virginia coast. the orbital rocket carrying more than three tons of supplies for the international space station. the launch had been pushed back a day for favorable weather. that is the news update this hour we'll send it back to you, michelle and still ahead, the rising dollar, from commodities to companies, a look at who is feeling the strongest head winds. and as we head to break, a look at energy names on the move. alerts -- wouldn't you like one from the market

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it's magic monday there with the dow industrials up 265 points were up higher on easing trade tensions between the u.s. and china at 24976 they had been above 25,000 for the first time since march

nasdaq as you see up about a quarter percent at 7373. leading the dow today, boeing on, ge, caterpillar and united tech oil market closing for the day, crude ending at 72.24 a barrel up 1.35%. meantime the dollar has been surging to its highest level of the year typically bad news for oil, but not this time. it is however putting pressure on big multinational companies we have it covered for you here. jackie, we start with you and the energy connection. >> that's right, the reason that oil traders watch the dollar is because crude is traded in dollars. so when the dollar strengthens, it makes it more expensive for traders using other currencies typically the impact is to depress prices, but with the dollar index up a little less than 4% in the last month or so, crude is up a little bit more than 5%, actually closer to 6% the reason crude is flying in

the face of a strong dollar is because there are just too many other compelling reasons for to go up right now. first supply, what will happen with iranian, venezuelan, some of their supplies could come off quite soon second, middle eastern conflict, tensions are high in the region and traders fear that. third, demand. it is forecast to be robust. and fourth, summer driving, its coming on friday 37 million people are expected to travel according to aaa so definitely will be pumping a lot of gas, lumberg saying $3 is the national average >> thank you, gentlemjackie now to seema mody. >> and it is the multinationals that are in high focus names like kimberly clark, proctor and gamble oi, johnson johnson, all make half their sales outside the u.s. where consumers tend to be more price sensitive. analysts say the retail sector

is also prone to risk. nike, macy's, tiffany. stronger dollar could make their products lessal attractive and potentially discourage foreigners from traveling to the u.s. we touched on oil. energy tends to underperform when the dollar rises. while oil companies typically hedge against currency volatility this sector is still sensitive to the down ward pressure on oil. keep in mind despite the surge, it is still about 10 on% away from its 2017 high and that is why we haven't seen any major impact or revisions on upcoming earnings. >> a good points we've been higher in the recent past and joining us to discuss further now, global head of emerging market strategy at brown brothers and also ceo and

strategist how much stronger will the dollar get >> honestly, i think we're in the early stages still market is finally catching up with the fed in terms of rate hikes and surpassing the fed three hikes this year. two more next year so the market is actually getting ahead of the fed and i think that is behind the laying latest leg up in the dollar. soft data elsewhere. eurozone, uk, japan seems to be rolling over but all very good for the dollar >> u.s. looking pretty good right now. and what kind of havoc will that reek on companies and when do we expect that to start showing up? >> yeah, that is a really good question i think that you will start seeing that happening to companies that are not managing their currency risk very well. there are lots of companies and that's what investors have to remember, lots of companies who actually understand the currency impact and will act accordingly. unfortunately, still quite a few that don't

so as you look at the dow going up, you have to pick in there which one withstand the currency, which one don't. i agree with the idea of a generally strong dollar, but you have to -- >> how do we know who is hedging correctly and who is not >> well, you have to, a, talk to them, and b, listen to the financial analysts and, c, look at the 10 qs and 10 ks in the annual reports and you can seeing in there in items 3 and 7-a how they describe their currency risk mag mfg number one number two, look at ebitda and below net income there is a line that will show impact or not. >> win or lose depending on how the currency goes. it costs you money to hedge and then maybe leave money on the table. but a lot of companies have to do it. win, the dollar will get stronger that is already wreaking havoc on certain countries like argentina, turkey, et cetera

how much stronger do you think that it will get and do you see it actually breaking any countries in to real crisis situations that then spill over to the rest of the world >> emerging markets, not only are they seeing a stronger dollar, but they are having arising u.s. interest rate story. so paying more for existing debt and more to service existing debt as well as issues new debt. so emerging markets have been taking advantage this last year or so longing in low rates and weak dollar, but it changes so fast obviously argentina, turkey, south africa, brazil are in yellow danger light. i don't see any systemic crisis. argentina is a terrible story, venezuela also, but most are managed floats different from when we had pegs back in '97, '98 when pegs break, all hell breaks loose.

floating acts like a shock absorber but certainly they have come under a lot of pressure. >> didn't even talk about the italy problem. we'll leave it there and we'll continue to talk about this, it is developing as a major market theme. good to see you yboth all right. still ahead, the two big sports stories dominating the headlines today. we are talking hockey and horses next will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

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welcome back the nba and mlb trying to cash in on the new sports gambling law, but the nfl is not. what is behind the leagues' different approaches >> it is interesting now that sports betting is legalized and every state can do what they want, you are seeing every league come up with different strategies the nba and mlb and pga, they want this integrity fee or this royalty fee which is a direct payment that they want the casinos to have to give them for

the intellectual rights to have those properties being bet on. but the nfl and ncaa don't want that money, they are not out there trying to get it, they are focused on long term deals because they want the casinos to be happy with the leagues. they want pa ththat sponsorship revenue which they think could be more down the road rather than we want it right now. so that is something to watch. the nfl meanwhile, they are focused actively ontion becauset want to deal with every state coming up with different rules just today they put out four core principles which included law enforcement resources, proechkti in protecting content and ip. a lot of the language 14r5r to the language orrin hatch used last week when he said that he is going to work on a federal bill so everyone is suggesting that the nfl and orrin hatch have probably already communicated together on what they are looking for. so something to watch. all the leagues now trying to carve out that by.

>> thank you very much, eric we'll stick with sports now. the las vegas golden knights advanced to the stanley cup finals as an expansion team in their first season and justify won the preakness in the mud. he will go for the triple down in the belmont stakes in three weeks over in new york city. on the news line now to talk about pucks and ponies is he ed olcz olczyk how did you go from ice to mud, eddie? >> well, thanks a lot for having me actually i got my start in television in horse racing back in the fall of 1994. i was a member of the new york ranger, we won the stanley cup a couple months before and there was a work stoppage so the people at the meadowlands knew that i loved the horses and they brought me over and i brought my

introduction to television through horse racing so i've been a huge horse player and got my chance there. >> and you know what unites these two stories of the las vegas knights and just if i, just if i did not run as a 2-year-old, so this was his maiden season. >> he seems to be the real goods, not just because he has won the first two jewels of the triple crown bob baffert the trainer knows a good horse when he sees it, he has a tremendous pilots in mike smith the jockey and of course bob baffert won the triple crown with american pharoah, our first triple crown winner in 30 plus years. so he knows the type of horse that he has and this horse seems like he can run forever. and he is 2 for 2 and he will try to go for the belmont on june 9 and looking forward to getting there and seeing if the horse can go the mile snaf >> and it seems like the other link is in both of these cases viewer ship i would imagine

would be through the roof. but you got a cinderella story on the ice and then you have justify at the belmont are you expecting huge numbers when it comes to these events? >> that is what we're hoping for because you think about it, thea the vegas golden knights were not an organization a year ago at this particular time. they did a tremendous job. the owner, mr. bill foley, the general manager put together a team with the staff, the coach of the golden knights found a team, and the chemistry and the type of style that they wanted to play, and here they are only four wins away from winning the greatest trophy in all professional sports, just four wins away, doing a masterful job of coming together >> right >> caller: coming from different places in a national hockey league, and numbers in vegas, not only gambling on games, but

viewership in vegas is through the roof casual fan or hard core hockey fan, this is, how is this possible stars are aligned. >> quickly, i'm a d.c. guy, are the caps going to win tonight, yes or no? >> caller: breaking up a little bit there, tyler, so - [ laughter ] >> all right, i'll take it as a no, thank you. you can catch both the stanley cup finals and the belmond stakes on nbc. meantime, ge shares are serging today, biggest winners in the dow, following an $11 billion deal is the worst over for the company? we tackle that in "trading nation" next

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time now for "trading nation," shares of ge surged to the highest level in three months after selling off the struggling rail business for $11 billion for a broader turn around plan. dennis is here and arie, on the charts, do you see signs of a bottom >> early signs, but more is needed for us. two quick points herement fir m. the stock moved through the $15

level. for traders who play for additional counter trade, place protective stop at $15 final second point for us is that for this stock to really show up in our momentum screens. we're about process and discipline at the least, we want that 200-day to turn sideways ideally higher so we do not bet against it, but placing bets elsewhere >> dennis, first big portfolio move under the new ceo investors think there's more to come do you like it >> somewhat. all i know people are not believing it we saw big buyer of shorted dates options, one month options kpi expiring, big buyers in the marketplace, and until i see something come out of their liabilities on the financial side, other stuff is just noise to me, and that's what the options market is saying >> looking at capital position, guys, thank you very much. >> yep >> for more, go to

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check, please. >> the white house has gotten clarification on new venezuelan sanctions grandfathered in the previous secondary trading of debt to venezuela still allowed at this point. if you own it, you can trade it. >> yeah. >> all right sessions outperforming financials overall 4.7 billion for nb financial a lot of people think with a lighter regulatory touch, could be more consolidation in this specific space, so watch the regionals. >> i'm watching the cnbc.com article. sneakers over high heels turns out, women sneaker sales increased 37% last year while high heels fell 11%. >> not at all surprised. >> i believe it. >> everybody's wearing sneakers. >> even gucci are making sneakers

>> we'll cover that, doing broadcasting from a big event in los angeles come wednesday, but i wanted to point out that the royal wedding on saturday, highest royal wedding ratings in the u.s. every, 29.2 million, beating will and kate and diana and charles by a large margin. >> it was wilfred frost. >> it's the frost phenomena. >> all right speaking of -- >> "closing bell" starts right now with wilfred >> welcome, i'm wilfred frost. dow crossing 25,000 for the first time since march what will be the catalyst to keep stocks moving >> the dollar gains strength, companies lose i'm looking at companies most vulnerable to a stronger dollar and what it could mean for their bottom line. i'm michelle caruso-cabrera. despite the economy in