everybody remembers that she had a sports bra on, but it was the most iconic moments in the history of women's sports. >> it was. >> redo the plaque redo the plaque. #redotheplaque >> ridiculous. oh, my goodness. >> thank you, scott, thank you for watching "power lunch," and "closing bell" starts now. the policy moving markets today, and facebook's mark zuckerberg is in europe's lion's den taking questions from eu lawmakers in brussels. at the cnbc headquarters, a major shakeup at jcpenney has them facing a more uncertain future details as the company's ceo heads for the exit i'm seema, rivers of lava and clouds of toxic smoke engulfing's hawaii's big island. the financial impact is just starting to be felt. we have a live interview with the governor of the aloha state.

we're in california, home of spac spacex, landing the top spot on cnbc's top 50 disrupter list they are set to launch a reused rocket with seven satellites, see it live. i'm kelly evans, rolling back banking rules this afternoon, and testing of the 23 and me as "closing bell" starts right now. welcome, everybody, we'll get to all the stories in just a moment, thank you for joining us, a check of the markets, dow swinging 130 points in the session, those small caps hitting another intra-day high, negative by half a percent, dow dropping 100 points. >> high after the open, and it's been a session of slipping since. let's begin with a ceo shakeup at jcpenney, the stock under pressure for quite some time,

down 7% today, and this year, they are down 25% compared to rival, macy's, up 32%. since november, jcp down 15%, and macy's 17% why go through this, we ask? let's get more on the departure. >> the stock's under $3, and it was an unexpected announcement today. jcpenney's taking the top job at lowe's a spokesperson says jcpenney was told days ago about his decision, in fact, they did not know when they announced earnings thursday. there is a board meeting this week, and the ceo search is the main discussion. the search committee is looking both internally and externally for the next ceo of the department store four executives taking over as part of the office of the ceo, when ellison leaves june 1st, and the departure is unlike ellison's telegraphed transition

to ceo he spent a year as ceo purposefully after the turbulent ron johnson era. there's been mixed results, some sales positive half of the time he was ceo, and companies all over think the leadership skills will be hard to replace. he made headway against amazon, but, ultimately, the sector's challenges are just more powerful he spent four years with jcpenney, 12 years with depot. weakness is merchandising because he spent his career elsewhere, so weakness could be a key strength for his new job as ceo of lowe's back to you. >> thank you very much for that. now, what does a former jcpenney ceo think about where the company's headed we bring in our former jcpenney

chairman and ceo, very good afternoon to you, thank you very much for joining us. so your immediate reaction on this - >> thank you >> immediate reaction on the news today how much a surprise was it as said earnings released, no one had any idea about it. >> i heard rumors of it several weeks ago, but i think it has to be a surprise. for somebody to leave in the middle of turmoil which jcpenney is in, without completing your task is really not what i would call the best of ways to handle it so i think that they may have just heard about it the last couple days, but i think at least it's been out in the rumor mill for a while i'm shocked by it, quite frankly. certainly, he's not done an outstanding job at the jcpenney company. he came in with the stock at $10, and it's now under $2.50. that's not what i call, i have to feel sorry at the company,

several different times, and i think it's really has to put them, set them back, and the lowe's, i think, it's -- i think for lowe's -- i have to finish -- it's an interesting choice, the -- he worked for home depot with frank blake, but there's not a merchandising background he was operational lowe's fell behind over the last several years for home depot it's a great category to be in if you're in the home business that they are in, it's certainly a growing business with all the home building going on and all the millennials buying homes and renovating homes, so i think it's a good opportunity for him. >> this is what is fascinating about the announcement today, though, if it was only that he was leaving jcpenney, i understand everybody's point, but the fact that he's leaving to take the helm at lowe's is fascinating to me. why wouldn't lowe's -- you know, i know you don't have any insight information on this,

they -- that's the company outperforming them, and what do they see something in him saying, you know, jcpenney's problems are not so much about its leadership right now, or is lowe's getting this all wrong? >> well, i think that's a question everybody has to have because after four years, he's not done well. as a ceo of that company, he's not done well, so they have to be basing it on the fact they spent 10, 11 years at home de t depot, so that has to be the background it is a successful company versus them today so that has to be it, but i think when you take a person who's not been successful at their current job, you have to wonder what the thought process is now, i don't know whether there's another person at home depot that they tried to get and couldn't get, but i think that this certainly has to be a

questionable decision for their part >> allen, how bad is the situation right now for jcpenney, and what type of ceo do you want to see come in next, and what should be top of the agenda >> well, i think it's a very -- well, it's not a good situation for the jcpenney company, not good for the last four years, and i say beyond that, they've gone, as i said, through three difficult ceos the business is worse and worse over time, so i think it is a big difficult thing, but they have to come to the conclusion that you can't go out and keep picking operating people who have no experience in dealing with customers and what customers want every day, and also dealing with the people in the stores who also have good input for you if you want to take the time to get out and see them i think he was well-liked, but he had none of the background that's necessary to run that kind of a question now, saying that, frank blake was not a merchant, and he did a

great job at home depot, but that is unusual situation. usually, at least in my experience, if you don't have a merchandising background, it's very difficult to be successful. now, the good news is ron, the chairman, has been on the board, i've known ron, a very good financial guy, not a merchant. they got four people now running as ceos who have no background in merchandising, so they really do need to move quickly on this, but they better make a decision this time that's very strong on the merchandising side >> allen, you led the company back in the early 2000s, probably seems like the glory days now thank you very much for joining us >> my pleasure >> allen questrom. turning now across the pond and the eu with mark zuckerberg. josh lipton has the story in san francisco, josh? >> kelly, facebook's mark zuckerberg saying sorry again before u.s. lawmakers in april,

and today, before eu lawmakers >> but it's also become clear over the last couple years that we have not done enough to prevent tools from used for harm as well. and that goes for fake news, foreign interference in elections, and developers misusing people's information. we didn't take a broad enough view of our responsibility, and that was a mistake, and i'm sorry for it >> now, zuckerberg addressed election interference on the platform saying the company's doing a better job, for example, using ai, saying to detect or remove fake accounts, and reminded the audience of the company's commitment and investment in europe >> we're very committed to europe almost 400 million people in europe rely on our services to connect and communicate with their friends and the communities that matter most to them, dublin is home to our european head quarters london is head to our biggest engineering team outside of the

united states. paris is home to a big part of our artificial intelligence research >> as for gdpr, europe's data privacy law going into effect friday, zuckerberg saying the company is fully compliant on day one. wilf, back to you. >> thank you they have recovered all the losses since the story broke in march, and joining us to discuss more on the testimony is scott gallaway from nyu stern school of business. thank you for joining us >> thank you for having me >> another set of hearings for mark zuckerberg. your main takeaway what's likely to follow this we talk about breakup. we talk about new rules coming in at the moment in the eu, it's a question of new rules coming in. >> so, yeah, the eu is well ahead of us in terms of regulation look at what france is doing in terms of talking about taxing the top line, and britain talks

about regulating facebook and twitter as media companies and gdpr, so they made more progress if you think of it that way against big tech than the u.s. has, but the hearings, i don't know if you saw them - >> never would have thought of it that way. >> lack of progress, regression. >> going back to the original thing, too, these are all american giants who have done extremely well >> yeah. >> europe doesn't have anyone like this to point to with a much different interpretation of anti-competitive behavior so is this just making the companies at the end of the day less likely to do business over there or to the point of the hearings, are they going to try to prod them into spending to avoid more of a crackdown >> actually, i think most americans believe that probably some regulation or level of trust-busting is overdue here, so i think -- bottom line is, the government's here and over the pond have been played. nothing comes from the hearings other than disappointment they were a big nothing burger. >> we talk about this yesterday. >> yeah. >> they were similar calls by a

guy involved making the case against microsoft back in the day. >> yeah. >> on google, on "60 minutes," talking about why the company is anticompetitive. what's the consumer harm that's the u.s. focus. consumers are not complaining other than the privacy disclosure stuff, not the same issue as scale >> current antitrust law is based on consumer harm, and right now it's difficult to argue the companies harm consumers. i argue we don't know what we're missing. try and get an e-commerce social media retail company funded right now, and you can watch this show, read "wall street journal," living in an era of innovation? new businesses cut in half last year more new businesses formed as jimmy carter in office than now. >> adobe has a shopping platform now, a couple examples of places in the retail world doing very well right now as platforms -- >> okay. >> like the new -- >> operative term is "couple,"

how many in the last six months or e-commerce -- >> i take the point it's not what has been. you're slouabsolutely right, bu it's a different issue arguing that the public clambering for a breakup of the companies that's a different issue >> i lost you, so i think at the end of the day, if we broke the companies up and we had, let's use facebook, facebook, instagram, messenger, we'd have more hiring, more companies, broader tax base, more m&a, more competition. one says, hay, pg, we are not weaponized by the intelligence arm of the russian government. i think breaking them up would be better for the economy just as when we broke up bell we found there's a lot of innovation in technology trapped in bell labs, and we went on for 30 years of more innovation and shareholder gain it's a natural point in the economic cycle where the guys should be broken up.

>> scott, regardless of whose approach is the right one, europe or approach or u.s. approach in terms of regulation, today was pretty tough for zuckerberg, was it not >> no. i mean, it started out -- did you guys watch it? it started out really interesting. the questions were strong. he basically went on a five or ten minute rehearsed big thing talking point, and said, oh, 15 minutes over, peace out, headed to the jet this morning, it felt like prom night. a lot of expectation, and now in a haze of disappointment and unmet expectations i was so excited about this, and it was a nothing burger. >> gdpr comes in place in a couple day's time. >> yeah. >> what specific powers do people have in europe they can hit companies facebook with monday morning >> that's the correct question i'm curious your guys' -- my thought, the consequence could be it helps facebook and google because complexity and expense favors the incumbent >> absolutely. >> so what happens when someone says, okay, do you want to be

forgotten? you say, no, i love facebook, it's a big part of my life, but gq says, you want to be forgot p? yeah, it's not that important in my life. i wonder if we have strengthened their hand >> interesting >> fascinating to see. scott, thank you >> thanks for having me. 45 minutes left of trade, and we are at the moment down 127 points we had quite a sharp leg down in trade in the course of the last half hour, at the lows of the session right now. >> stay there. we're just getting started next up, in the lava zone. taking you to hawaii as tourism is now being hit by the fire storm. the governor of the aloha state is with us live in the midst of the crisis plus, dodd-frank overhaul. congress expected to vote today. how does barney frank feel about

it no need to guess he's with us live. this is the "closing bell" on cnbc, live from the new york stock exchange with kelly evans and wilfred frost.

>> welcome back, a sharp selloff in the course of the last half hour, the dow at the high of the day, which was quite soon after the open, up 52 points, currently down 115 right at the low of the session in the red. to the latest in hawaii, kilauea volcano started erupting three weeks ago now, continuing to spew gas, flames, and toxic air down there miguel is there. >> reporter: even from a safe distance, you feel the power, well over is 100 degrees on the ground, and the air temperature here is much cooler. the fissure broke out for several days says geologists with no signs of slowing down. this is not far from a geothermal plant in the area, crossing on to the property, but

so far, no serious damage. there's a concern, though, still, more than 40 structures destroyed here, 2,000 people evacuated. officials say they are worried about air quality especially in the coming days as more sulfer burns off and hot magma hits the cool ocean water it's a concern on the island, and for residential communities, this is what they worry about today. back to you. >> holy cow. >> thank you very much for that, extraordinary live shots he's been in in the last couple days. hawaii's volcanic activity has a negative impact on the state's tourism industry and the fallout could intensify. seema has more on that >> guys, already two large cruise ships skipped visits to the big island port located 30 miles from the park that is mostly shut down for several days now local authorities say the

closure of the park already cost the island nearly $170 million, and that's likely to increase if volcanic activity continues. sun trust analyst says the big island of hawaii is not as popular a tourism spot compared to maui, but eruptions may affect travelers, tourism, especially if the situation worsens. that would be bad for hawaii's economy, given that tourism is its largest industry last year, visitors spent nearly $17 billion accounting for almost a quarter of the state's gdp. to learn more about whether the active volcano is a source of potential economic pain, we're joined by the governor of the aloha state, david ige, governor, great to have you on the show >> caller: yeah, aloha, seema, i'm glad to be on. >> hard to believe the explos n explosions this dramatic from the big island is nhaving an

impact on tourism. what are you seeing on the ground we are hearing visitors are cancelling their trips to hawaii based on what they are seeing. >> caller: well, i just want you to share, share with you, hawaii, the rest of the islands are still open for business. you know, visitor arrivals have been very strong hawaii is still the premier destination in the world, and our visitors continue to come. the actual area of the eruption is a very, very small portion of hawaii islands you know, less than 1% of the land mass is actually impacted by the spectacular video and photos you've seen the rest of the islands are all open for business, and visitor arrivals there are still strong. >> but you're saying it's an isolated event, but are you hearing that this could potentially spread to come of the other islands like maui? >> caller: certainly arrivals on

maui and the others still remain strong we do believe, and we want to emphasize with everyone around the world that hawaii is still thee destination, the rest of the islands are unaffected by what is happening at kilauea >> governor, going back to kilauea and the people who actually live there, the "wall street journal" yesterday said the hawaiian legislature created a perverse incentive for people to live in high risk lava zones to subsidize insurance a way to change that so people do not live as close as they are to the volcano going forward >> caller: i think the actual number of people who attracted by that is very small. the general cost for land in the area is very low you know, for $5,000, you can buy an acre, one to five acres,

and that's what the real attraction is, but, you know, hawaii is a resilient community. it really is inspiring to see neighbors helping neighbors, and the rest of the residents all across the state are really stepping forward to help those that are directly impacted by the eruption >> governor, just stay on that point, though, as you're saying land is so cheap, there's apparently 2400 of these policies enforced in the area providing $700 million worth of insurance that otherwise may not be available because all the companies there are forced to subsidize. do you think that's unnecessary that that should not be kept going forward? >> caller: i'm certain we'll reevaluate the policies in this area, and we'll make appropriate adjustments. you know, many of the residents who live in the area know what the risks are, and, certainly, if there are anomalies in our

insurance policies, we will make adjustments as appropriate >> we'll leave it there, governor, thank you very much for joining us thank you, governor, thank you, also, seema mody >> caller: thank you very much >> thank you 35 minutes in the session here going back to the dow, down 113 points, declines all over the place, and action all over the place. big chips and small ones down half a percent and nasdaq and s&p largely unchanged, nasdaq slightly positive even right now. one high flying chip name is seeing a pop today who is that? that's coming up barney frank joins us ahead of a key house vote is afternoon that could dismantle parts of the banking regulation that beared his name stick around back in a couple minutes

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welcome back look at the split here, even between gainers and decliners in the sectors of the s&p today, financials leading up 1%, and energy lagging by 1.25%, and crude still hangs on to gains here at least for brent, wti around $78 a barrel >> a lot of winners from yesterday, what's declining today, industrials with the best sector yesterday, down a percent today. >> 30 minutes in the trading session, we look at two stocks to watch micron is serging after announcing the analyst today, a $10 billion share repurchase program and a deal with intel. this repurchase program adds up to a hefty chunk of the market

cap so shares responded positively by more than 8% >> i've gone for fifth third bankcorp. recovering after yesterday's 8% drop on concerns of over significant acquisition costs, of course, announcing that yesterday, upgraded today, but it's up today as well, alongside most banks, and that's partly because of that bill coming out we'll get a vote at 5:00 p.m. probably eastern time, and if we see that, it will ease the pressure on banks of third corp. size given it raises rates and reduces pressure we'll discuss that with none other than congressman frank coming up. >> fifth third, by the way, paying an almost 30% premium for the bank they acquired they are making the case, it's a good franchise, long term interest, and investors are looking for a lot more deal making in case of regional banks like this one. >> the passing of the legislation was largely priced in once, of course, it was past

the senate expected to pass the house tonight. it's not transformational, but the broad move in the month allowed for this type of deal. with today's gains, down 4% from that position. >> raising the cap for a lot of more legislation from $50 billion to $250 billion, that's a big leap >> a big leap, and banks like this, sun trust, bbc all in that sweet spot they could be encouraged to do more takeovers time for a news update with sue herera >> hello, everyone here's what's happening at this hour house speaker ryan says he regrets the farm bill did not pass, and acknowledges that some house republicans are frustrated with each other. he told reporters that legislation can be messy >> obviously, last regr regretful. we did want to see members not pass the house bill. we go to the floor not knowing

if it's passes or not. it's a messy process at times. gary tanner, former senior director at valeant found guilty of fraud an conspiracy through a multimillion dollar kickback scheme the duke and duchess of sussex in a garden party today, the first royal engagement as a married couple the party honoring prince charles' 70th birthday in november, and 6,000 guests from the charity he backs attended that occasion today. i was going to say they certainly did not let any grass grow under the feet, but they did because it was a garden party, so there you have it. >> yeah. >> no honeymoon? >> not yet >> not yet >> this is the exact reason, sue, they have not gone on the honeymoon yet. people are trying to work out where that is. >> are you covering that >> that would be an odd thing to

cover, but i hope nobody finds out where it is. >> oh, i hope so too >> people will be camped out >> the weather is good, why leave? i like thissed w idea, sue, an official birthday and actual birthday, celebrate it twice >> i know prince charles is a very added supporter of a number of charities so he gives back to them, and then they give back to him. it all works out >> i didn't know he had the double birthday. i knew the queen did, but i didn't he did too. >> now we know >> all the birthdays and holidays, send a card to everyone every week. it's too much. >> it's royal. >> a reason to celebrate >> see you guys in an hour >> sue, thank you so much. >> you got it. >> we have got 27 minutes left of trade, and we have seen a selloff in the last hour or so we're now down 145 points on the dow, and that's very much the low of the day, and we did see the dow open and be up 52 points

soon after we opened, down 0.6%. all indexes in the red another countdown on a spacex launch we have a look at the particular story coming up. disrupter 50, no less, this year, spacex, again, blasts -- in fact, a live picture, going to blast seven satellites into space. we'll cover it live. we're going to talk about bank reform as the house votes on rewriting dodd-frank the co-author joining us live after the break. this endangered species is getting help from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done.

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welcome back a big vote today on reforming dodd-frank, regulations passed in 2010 to reign in the banks after the financial crisis, and this legislation leaves a lot in place, but relaxes rules on smaller institutions >> joining us now, senator frank, co-creator of the original dodd-frank law.

good afternoon congressman, various politici s politicians,ing inning members of your own -- including members of your own party like senator warren are critical of the bill saying now is not the time to deregulate the banks your take on how the bill shaped together -- i guess it's just reducing regulation on smaller banks opposed to banks across the board. >> right i -- i agree it's not the moment for it, and i can't foresee one of reducing regulation on larger banks this bill does not do that there was an article in the "new york times" about the new ceo coming to goldman sachs, and in the course of that, they had this quote that was important. since then, 2010, goldman's business model has been hurt by tough federal regulations intended to curve risk taking on wall street. that's true. it's good. nothing in this bill weakens it. having said that, i will say, and, by the way, i think it's appropriate to say the rule does

not apply to banks under $10 billion. we never thought it would. in fact, i accepted their point that there was being a force to spend too much to comply, and i also agree we said you should not be able to make loans to people with very shaky credit, and then securetize it to make the loan and not take the risk of nonrepayment. what the smaller banks here are banks that know their neighborhood, they get the right to make loans to people k may, h weaker credit, if they keep them on their books, so nothing in the bill changes the rule that says you can't make shaky loans. nothing weakens derivative piece. when we set $50 billion the limit to go into the trigger to go under the special supervision, that that was too low. best regulator of the administration said it should be higher i agreed with that in 2013, but i think $250 is too high you know, lehman was 750 when

they failed. if that would have failed, that can be problematic if there were more i regret they went above 125, but the major objective of the bill, nothing to do with the dodd-frank rule, i regret it, weakens reporting requirement, and this is for smaller banks, home mortgage disclosure, anti-racial discrimination, and racial discrimination is a serious problem here, and for that reason, i dwould not have voted for the bill, but it does not weaken regulations put in there for the largest banks or that were there to prevent the kind of crisis we had ten years ago. >> richard, what do you think the members of your consumer bankers association are thinking about this bill? does it go far enough? would you like to see it apply to bigger banks too? >> well, i think this is a great first step i commend the chairman and the 17 democrats in the senate who took this right and measured approach, called right sizing regulation

it helps community banks 90% of the bill helps community banks, some relief for smaller regional banks like huntington, u.s., key, all headquartered in ohio yes, i wish the bill was further, and i think every bank should determine whether they are a sifi based on activities of their bank. they said there's going to be one bank under $250 billion. they would designate specifically important -- another reason i don't think the bill went far enough because they did not address the big elephant in the room, the leadership structure of the bureau of the consumer financial protection bureau. i think it's horrendous what just transpired when he departed to run for governor and mulvaney came in. we had great transition at the fcc, the occ, about to have it at the fdic. if you want to depoliticalize this, make it a five-person bipartisan commission, something

chairman frank voted for on two occasions. that brings certainty and stability into the market place. make no mistake -- >> can i respond >> this is a community bank that feels it's a good first step, bipartisan legislation, that's the way congress should work >> mr. hunt -- >> everybody should be commended about what to do congressman? >> i misstated -- misstated, an important point, the occ controlling the currency, is not a fine member board. it's a single member in fact, he has more power over banks than the head of the cfpb because the controller has more power than the cfpb. i voted for the five member commission to get the bill out single member commission, and mr. hunt forgets that the occ is a single member. they are objecting to not the structure, but the fact of consumer protection, and i would also say this, and it's a sign of a popularity of the cfpb for the american public, that in the senate, when you have people ready to provide relief, and i

admire what they tried to do, no one tried to include weakening of the cfpb's power for changing the structure. mr. hunt does not like it, but the american people overwhelmingly do so that's why the republican congress is not trying to weaken it. >> let's get facts straight -- >> hold on a second. rich, just briefly, i want to ask the congressman a broader question aside from today's particular development if the bill passes, can you look at the bill you passed some nine years ago or so, and pat yourself on the back when you look how strong u.s. banks are in the global stage relative to european banks like deutsche bank, do you consider that you did a god jod job ther and any complaints of overregulation are rich given that >> well, even if i were not 78 years old and arthritic, i would not pat myself on the back that's awkward to do as a public figure, but i think we got it right basically. i go back, you know, when people

lied about the bill from the legislative substantia legislative standpoint, they describe the industry, you get what you got in the "new york times" saying goldman sachs is in less risky business they are doing more lending in fact, more investing in smaller communities, i think it's moved them in the right direction. i think that 250 was too low and underestimated the paperwork with regards to the rule, but the rest of the bill, i think has worked out very well, and certainly the case, you know, mr. trump is very proud of the way the economy works, so i got to say about health care and financial reform, if we had wrecked in 2010, crippled health care and financial industry, it's hard to see how you would have such a wonderful economy that he describes. >> leaving it there, thank you very much for joining us we'll switch focus now

a news alert on tesla, eric? >> that's right. stuart bowers is leaving snapchat, joining tesla, a spokesman confirm he's joining as vp of engineering he's been snapchap vp of modernization. this is at least the eighth executive who has left snapchat since the ipo in march including executives that was head of engineering, general counsel, content, securities, and it's more of a snapchat story more than a tesla story, but he'll be working on a lot of projects with tesla including auto pilot. back to you guys yeah eric, thank you. tesla shares down more than 3% today. we want to take you now to the spacex launch we expect in just a couple minutes time. morgan brennan is covering this, and, morgan, they are sending up satellites or trying to? >> reporter: they are. a total of seven satellites today, so this is going to be taking place in just about

three, three and a half minutes from the air force base, three hours northwest of where i stand right now in hawthorn, california this is the spacex rocket fact try behind me. this is where launches are overseen this is the tenth launch of the year for spacex. in context for you, at this time last year, the company completed six launches this is the 12th time a rocket previously flown to space is being reused another fact for you on that, the booster reused today was previously flown during those missions back in january you may recall that was the highly classified government mission in which a multibillion dollar satellite that was made by northrop was lost in the process. the air force cleared spacex of the incident saying the blame belongs with northrop, but that first stage booster is reused today. in terms of seven satellites,

there's five being sent into orbit for aridium communications, sixth mission for that commercial customer, and two satellites for nasa, the size of small cars, to be used to map and track the polar icecaps, also track sea levels, so worth noting, spacex has been relanding many boosters for reuse is not going to attempt to reland and retrieve this booster. we are about two minutes away here, and it will be taking place in vandenburg. >> of course, spacex making it on to the disrupter 50 list as well >> reporter: yes, absolutely it's been a busy day for spacex. spacex is no. 1 on the cnbc's disrupter list this year it is the sixth time cnbc -- this is the second time it's

topped the list. the reason we are here in california, sat down exclusively for a rare interview with the coo and president glen shotwell to talk about all of these types of launches, the technology that goes into this con cement of reusability, and how the company is able to drive down launch costs and really pretty aggressively undercut its competition. experts tell you this company is really ushering in what is a new space age, and that is the reason it's on top of the list this year. it's now roughly $28 billion company. that's what shotwell told us >> and, morgan, you mentioned this is the tenth of the year. what did she say in the interview how many they'd like to be going per year by this time next year >> reporter: yeah, so, she said probably about 28 or so, just under 30 launches expected to be completed in total this year she actually said this is interesting that that pace slows next year because based on -- it

takes about two years lead time for satellites to be built and then launched, and she said just based on the orders and the backlog for satellites from last year, that that launch schedule may slow next year, but longer term, they are looking to go into space travel to - >> four, three, two, one - >> and liftoff continuing the legacy of the greatest mission of tracking the movement of water across our map et >> morgan, why are they not choosing to land this one and reuse it >> reporter: you know, i don't know the answer to that. i will find out for you.

it's a booster that's been previously flown into space. the other thing to keep in mind, and we saw this with the last launch, that they completed about a week and a half ago, they are shifting to a newer, more powerful version of the workhorse rocket, falcon 9, called block 5, and we saw production of the newer version in the building behind me, but i have a feeling it has to do with that transition. >> true. we saw they, of course, had an amazing -- the biggest rocket launch they've done and successfully landed that one last week, morgan, trying to do that, 10-100 times with the same equipment, so that was quite something. >> reporter: yes >> this, too, looks like they got this off just exactly as planned at 3:47 eastern time >> reporter: yes that seems to be the case. there's seven satellites on here

for the biggest government customer as well, the fact this is the 12th time they reflown a booster, they only prove that technology possible and started reflying just over a year ago. i mean, that really puts into context how quickly they are moving with this disruptive technology >> well, congratulations to spacex you heard the reference to the grace mission, that's for na nasa,ing gravinasa, i and a private company as well, launching about five, i think, communication satellites a couple payloads here that we're watching spacex launch >> payload >> i'm slowly learning all the terminolo terminology. >> ten successful launches this year very impressive for spacex kind of execution.

morgan, thank you so much for bringing us that spacex's 10th successful launch of the year, and spacex, as morgan said, top of the cnbc disrupter 50 list announced this morning and lots on the website about that. by the way, the dow moving lower, down 184 points, art walked by saying there's 1.2 billion to sell on the bell. bob, that could have to do with the weakness here. >> never bored watching a rocket launch always eight years old when i see that what's old our rally. look at the s&p intraday we dropped below the earlier day's lows awhile ago. that's a technical violation you see that, and that was the factor we also had an increase on the market on closed sell orders, you just heard kelly talking about art, and that may have been a factor. generally at 500 million or less, i don't pay much attention to the market on close orders. when you get over a billion to buy or a a billibillion to selll

perk up and pay attention. that's a little larger sell on the close, and, again, these are mostly mutual funds orders from individuals watching during the day, i want to buy or sell at the close. in terms of dow laggards, it's a fairly -- you can't particularly say there's one group or another selling off. boeing and home depot, mcdonald's, 3m, diverse groups, industrials and consumers in that group one thing i want to point out what's going on in the home builders, an ugly day. toll brothers talked about higher lumber costs, higher labor costs. the stocks declining all year, and primarily, we had great concerns in january, more rate concerns in february, and then beginning in february, we had higher costs, higher lumber costs, higher labor costs, higher sheetrock costs on the part of the home builder i'm aware what's going on. my brother is a home builder and complains bitterly about the higher labor costs they can pass on costs or eat them

hard to pass on the costs. competitive market for them, and, of course, we have restrictions to buy on top of that, so a triple-whammy hitting them stocks down 30% this year, toll brothers, all of them down about 30% so far this year back to you. >> should be bob the builder >> i decided not to go into that business and be a journalist 40 years ago my father was angry at me, but i don't regret it. >> bob, the business journalist works just as well >> true. >> bob, thank you very much for that let's go to mike santoli posting up toll brothers, nin fact, mik? >> toll brothers right here over at post eight, and a couple things to what bob said. the market is not tolerant of a miss on the headline numbers because of the margins the home builders are showing i picked up an interesting tidbit in 12 months, toll brothers' revenue exceeded big revenue in 2006, pre-tax earnings, half of what they are today as they were in 2006 in the bubble years, so that shows you there is a bit of

a squeeze on the builders. markets do not like it now i wonder if we saw the peak for the pure home builder stocks for the cycle, guys. >> all right, mike, thank you very much. it is really interesting to see how much more toll is down relative to the other builders today. again, nearly 10% drop in the session. let's get to our closing bell exchange today quincey is here with rick santelli, and, rick, i mean, a lot of big picture moves and this afternoon there was concern about maybe the president's comments about the north korea summit not happening do you buy that? what's going on here do you think? >> no. listen who knows what's the buy we'll know when it's over. we can all have opinions the opinion that i have seems to mesh with most traders i deal with daily on the trading floor, and that is negotiating is the style in and of itself to this president, and process of that is messy and questionable, but many down here have complete

faith in the outcome that the relationship we have with north korea will be better than it has been under trump that's the way they trade. they view it as a future tail wind for the markets potentially as they view what's going on with china they never believed in a trade war here, and it certainly seems in that aspect or at least in that characterization they were correct. >> quincey, what about you we started off yesterday with this exuberant session, and today, we are giving a lot of it back >> gives a a ling a lot of it bk oil, too, hearing headlines that perhaps they'll ease up on some of - >> right >> ease up on production cuts, and that's causing a selloff in the big integrated names, so you got that, but you do have the financials moving higher, and i think that's on the back of the rules, perhaps, the east this week you got that, but you also have

some flow in the market. >> where are you an owner or buyer right now. >> in financials dollar pulled back, emerging markets a bit, but even in a bear market rally, it's on the trajectory to keep moving highermehigher me seeing economic positive surprises. a nice move higher in the economic data. along with that, goes inflation. >> rick, is that the same thing you say about the dollar, which, of course, the whole world is watching right now moving up because, you know, it does look okay, fundamentals look good, or are there other things going on there? >> a lot of positives with the dollar, as a matter of fact, it was up every day last week and up yesterday, six sessions in a row it was up. a small giveback today look at the chart, it's hard not to think that we're going to get super close to the 95 mark on the dollar index, hovering above 93 there's a lot of positive fundamentals there have been a lot of positive fundamentals, but the

rest of the world has better metrics for investing in 2017. that is not the case, you know, the emerging markets, i steer clear that at least for the time being, i don't believe that the dollar's going to have a binary move and just stop moving higher foreign exchange trends for long period of time, and i think this move is no exception all right, guys, thank you appreciate it. now over to wilf about three minutes left of trade. let's start with an intraday chart of the dow because it paints a picture of today's trade, just perfectly. the high of the day on the dow is 52 points it came around about twice in the first hour of trade. since then, the picture's not been so pretty, but it's the last hour or so of trade that we've really been meaningfully in the red the dow is now down almost 200 points, 0.8%, as we bring in the other indexes there, all in the red as we approach the close dow is the worst, down a third

of the penalty in the s&p, and nasdaq a quarter of 1% let's look at the sector performance because yesterday where we saw a decent day's trade, it was industrials that led the day higher, partly on improved trade hopes, and today, it's industrials, but bottomed, again, that press conference on korea, is there a summit or not, will that, therefore, impact trade discussions? that's why industrials trail today. financials well, a vote on deregulation of votes at 5:00 p.m., and we're going to half screen some banks to highlight them doing well. just there, goldman up a bit, although, it does not benefit. big banks do not benefit from the bill, yet they trade higher anyway it's banks like fifth third that benefit. bob pisani joining me now, and industrials are dragging us down >> there was a little impact from the president's comments, trade wars, obviously, are major issues, but i -- if you look at what we had during the middle of the day, a lot of consumer names

also weakened. i think this was just the market looking a little tired we made a lot about the fact we are essentially sideways in the last two weeks remember, we broke out of the big declining ranges that we were in, higher, lower highs that we had for the whole month of february and march and april. now we broke out of that we are trying to consolidate this is the real weak day in a little while. trade discussion areas, we saw boeing and caterpillar, they were up a minute ago, but notably weaker on the day. the important thing is the economic data feels good overall for the united states, and i think the rate situation is holding up the declines just above 3% on the 10-year, and i think the dollar is showing signs of stabilizing after jumping up if that changes, though, that picture will change very quickly. >> and just as we approach the close, we have to mention we're off the lows, down about 190, now down 160 how is volume today? >> weak side we'll get about 700 million on the floor here i did think we saw a little bit

heavier market on close orders than normal. art mentioned 1.2 million. generally, pay attention at the billion dollars to buy or sell that's when it moves the market. >> there's the bell. close 173 points on the dow, huntsman ringing the big board, nasdaq is red nose day, of course, celebrating that on nbc coming up. there is the close, down 182 points on the dow. kelly's got the second hour. >> thank you, wilf, and welcome to the closing bell, eriverybod i'm kelly evans. today, the dow dropped 178 points on the bell with weakness in the final hour today, both dow and russell down three quarters of 1% today the dow 24835. s&p 500 down eight points for its part, a third of a percent drop, 2724, and nasdaq down les than a quarter percent,

relatively a better performer today. nasdaq closing at 7378 joining us now to talk more about this, especially that weakness that we saw here just in the final hour, cnbc senior commentator, michael, and carrie firestone, welcome to all of you. i mentioned movers we had as well within the market you mentioned, mike, toll brothers, that was more in the s&p. this is who led the dow, jpmorgan and financials broadly a green spot, jpm up 1%. boeing giving some back. >> yes >> dropping 2.5% >> you know, i thought yesterday, i mentioned it here, i thought that reaction to the industrials, inklings of what happens on trade was overdone, an excuse more than a reason i don't think the state, honestly, for stops are high, what we know about trade negotiations, and today was just giveback that's why we operated in slow speeds, even at the highs of the day. i don't make too much of it

other than to say that the market is a little bashful getting up to the levels where it's going to be the difference between kind of just chopping around trading range or making an assault on the old high >> yesterday, widely cited was the relief, the tariffs, u.s. and china would not be slapping on each other, maybe easing in the rhetoric, and then you come into the session today, and this afternoon, and some concern about whether this north korea summit still happens, how much do you place washington the blame or credit for the last couple trading sessions as you watch it unfold here >> i think it plays some part. i wouldn't say in the large scheme of things it's major. i can't believe there's going to be ownerous tariffs, corporate america does not want that kind of restrictive trade deals, and so i don't think it's going to happen playing in the market are fears of interest rates going higher, going to affect all kinds of aspects to the economy, choke

off recovery, emerging markets, and then on the positive side, we got earnings growth, which has been fantastic in the first quarter, but for now, we got, you know, two months before we have the next quarters earnings so we have a lull here to get through. >> yeah. you know, the lulls can be tricky you know, interest rates moving higher is that something that you think should be welcomed we talk about it with rick, and there's a lot of positive news out there for the u.s. economy >> i mean, it's the u.s. economy at least is growing pretty well. i think people see what's happening with the u.s.-china talks, unnerves them, right? so many of the big companies worry they are on the other side of the zte trade, in retaliation in china by the chinese government it could be them but by the grace of donald trump and president xi seeing that thing go off the rails a bit is certainly -- gives people an opportunity to take some profits to kind of ease back and not worry about

it, and as you pointed out, if it is, indeed, linked, i strongly believe it is, the trade negotiations would be pressure from china on the north korea regime if there's any sense that that whole great foreign policy potential win for the president and the united states and the world is off the table because of this. that will just give people, again, the creeps. >> mike, would you agree on that >> i think the marketmen wants behind there's a three-week period here of combination of outcomes and forced trading going on, so i don't necessarily, again, i think the trade is not the make or break issue for the market. except to get it out of the way. it's been more of a nuance type thing right now. unless, of course, there is some kind of provocative response by the white house that says, look, we're not getting our way, we go with tariffs that's the market breaker. beyond that, the market is dissonant about the whole thing.

>> the president weighing in on the issue with zte and china, kayl kayla has the latest >> reports a deal could be near with the u.s. and china on zte trump says there's not one, but if there were, this is what it might look like. >> what i envision is a very large fine of more than a billion dollars, could be a billion-three. i envision new management, a new board, and very, very strict security rules, and i envision they will have to buy a big percentage of their parts and equipment from american companies. >> that fine just higher than zte's network penalty from commerce last year today on capitol hill, though, growing worry that the administration would dial back an enforcement action for a trade win, leading lawmakers to put up a barrier to a zte deal a bill passed today, the bill

ratchets up scrutiny between the u.s. and foreign businesses, and the amendment put on by the maryland democrat would limit the president's ability to offer reprieve to a chinese company that has violated u.s. sanctions. here's the committee member and foreign relation chair, bob corker >> the sentiment that's expre expressed about the zte decision without really justifications being made i think is something that people are concerned about. >> of course, that bill still has to go to the floor, and we have the commerce secretary going to china late next week. you can imagine zte figures into the talks considering it is the commerce department that is leading the review, kelly? >> all right, kayla, thank you, with the latest there. you know, rob said maybe some u.s. companies fearing retaliation, but shouldn't zte be held accountable? >> oh, just to some extent, but i think that in the broader scheme, we have to look at

opportunities to be able to solve a problem. this seems to be a problem that the trump administration feels it can play a part in. i have no problems with them doing it i also think that it's -- it sets a tone that will make things smoother if we really have to consider trade sanctions, what happens with china, and companies, and so i -- i think that the market has looked at this as something that we should try to get through and help solve >> all right well, one way people have been trying to protect themselves is investing in small caps, saying, hey, they don't do as much international trade, benefit from the rising dollar, and bob pisani has a look at that. bob? >> important thing is, small cap stocks, look at that animation do i look like that? sorry. my apologies, folks. small cap stocks are outperforming big cap stocks first, russell 2,000 up 6%,

s&p's up 2% on the year, and trade war worries a big issue, affecting bigger cap stocks, helping small cap stocks, and domestic economic growth is certainly doing better here in the united states than in europe right now, and stronger dollar, that makes exports more expensive for the big companies, and, of course, tax cuts, the more you produce here, the more it'll help a little bit. let me just show you about the effect that trade war issues have had on the small caps to put up the s&p 500, first is the -- first, the russell 2,000. you see the issues became -- the issues came to the floor big cap stocks started underperforming and smaller caps started outperforming overall in the last few weeks here's the story look at april, an issue here, we saw the moving down, but the reels outperformance came here, in the very, very beginning of april as the trade wars stories started heating up a little bit. now, i want to just show you one other thing. boeing

boeing went down almost as a proxy for trade war issues, and you can see this here, and going into april, went down, got better, clearing up, and boeing moved upside timely, all of this would have been a lot worse if not for technology stocks. they really helped hold up the s&p 500. if you put up the nasdaq versus the russell 2,000, this is for the year, you see much more parallel development here, and the important thing is, it's semiconductors we keep hounding on a on every day is the leaderment it's not surprising small caps outperform given the u.s. economy strength and trade war >> i think that cartoon is good, bob. show it again. >> it's been a long time since i've seen a cartoon animation of me, and i think i'm fine with that does my hair look like that? really bounces up like that >> it's a real signature flow going, hair a lot of guys would

like to have >> you're just trying to make me feel better. that's good. thank you. >> thank you >> thank you, jason. >> we'll take a brief excuse to play that going forward. get used to it by the way, deal making, we talked a little bit about the deals announced this week, but in case you didn't know, it's been a record year, total deal activity in the realm of $2 trillion year-to-date. rob cox, this is shocking to me. it does not feel like a boom is it because a lot is international or is it -- i mean, that means this year, 2018, i believe is the strongest since 2007 >> yeah, no, i mean, 2 trillion year-to-date, highest ever seen for the year-to-date, and if it stays at that level, it's the biggest year ever. you see so many of the large companies. it's sort of the size of the ticket, right? so that's why that number. i mean, is $2 trillion, you got

giant companies that almost -- not all of them, but many of them are just not going to ever merge, you know, you lock at, like, a sprint, t-mobile, a bunch of the kinds of companies that are, you know, and i guess what m&a professionals call the late cycle where basically companies that did not do the deal before, they do this as the last horah, seeing an opportunity with anti-trust regulator in the u.s. and elsewhere, squeeze the deal to go from 2 to 3 in the marketplace. what's interesting is to look back and say, okay, how many of the 2 trillion announced deals, how many went through. >> right >> how many made the money >> right exactly. asking you, do you get nervous about it, you know, on the investor side or something necessary that needs to happen >> well on the matter of whether the deals work in the long term, you don't find that out for years. do i worry that companies that

we're invested in make an acquisition that the market will think is a mistake yes, of course, something to worry about all the time we expect the deal rate continues, just look at corporate balance sheets, they have so much cash, and then there's a wave of repatriated cash coming back you got enormous private equity funds. you got jack mah, soft bank, think about the billions out there, hundreds of billions waiting to find a home so that is good for investors generally because as demand is high and supply shrinks, prices go up for public equities, so, you know, bring it on is what i say. worry later. >> oh, i was struck that fifth third yesterday thought acquisitions were, you know, nervousness, thought it was a better deal than buying their own shares back, mike. >> well, yeah, if those are the choices.

i think this is the exact run rate of deals you should be seeing at minimum in this stage. the bull market, global stock market valued at $100 trillion >> huh >> 2 trillion is 2% of the market cap we're behind 2007 pace >> huh >> and with a junk bond market being generous right now, all the factors are there. >> i like that, explanins why they've not felt that way. >> no five $80 billion deals launched at once >> $2 trillion is not what it used to be >> not at all. >> let's get to eric with an earnings alert >> a small beat, 34 cents adjusted revenues over 31 cents the street estimated revenues beat 7.47 versus 7.39 billion. the stock is flat after hours. quarter three guidance, 39 cents, versus a 36 cent estimated. similarly for the entire fiscal year right online with what the

street was looking for with hp, and probably why the stock is not moving now back to you guys >> eric, thank you how about intuit >> hi, kelly, a beat revenues at 2.39 billion versus expectations of 2.85 billion eps is $4.82 a share versus expectations of $4.68, and however, the company missed on its guidance for the q4 on nps they projected 22-24 cents a a share versus analysts' estimates of 29 cents a share, but beat guidance on revenues a couple quick met tricks that are important, small business segment grew 16%, reflecting sales of quickbook and online e ecosystem grew 41%, and consumer group up 16% kelly, a critical earnings period for the company since it

gets earnings in the tax season. back to you. >> one of the few companies this does so. makes it interesting thank you. michelle caruso-cabrera has breaking news on argentina, michelle, what's going on? >> the central bank of argentina maintaining the benchmark interest rate at 40% that's correct, 40%. argentina is emblematic of what happened to the weakest emerging markets as we've seen a spike in the dollar as well as a rise in u.s. interest rates. money is leaving the countries like argentina with large current account deficits so they forced to raise interest rates dramatically to protect the currency it's not helping as well that the new president did not cut spending, in fact, the deficit as a percentage to gdp is up under him compared to his predecessor. the peso weakened dramaticallicaldramatically in six months, and these efforts are to try to stop that, and why they went to the imf for

precautionary line of credit back to you. >> a sad turn of events. he came into the office with opportunities to shake things up unlike those before him and had a mandate from the population to do so, and now i wonder, is time quickly running out? he did not make changes fast enough >> absolutely the question right now because of gradualist approach to the budget, actually ended up spending more as a percentage to gdp, as ewe cyou see, and that hurt him the central bank was also weak here, they did not hit inflation targets last year, and so they just raised the target they moved the goalposts, and they lost a lot of credibility with the international investors out there for not being strong enough >> yeah, all right, michelle, thank you. michelle caruso-cabrera, keeping us informed. rob, hey, at least interest rates are not 40%. >> well, they maintained it. the worst news would have been if they had to keep raising it to fight back this tide of money leaving the country. 40% is high, but, remember, just

weeks ago, they went from, like, 30% to 40% in two days politics is a problem. a place like that, you know, unbelievable country, amazing resources, and always manages so not get it right with its management, fiscal management, and great time to buy a viney d vineyard, i guess. >> i don't know. guys, thank you for joining us leaving it there, rob, karen talking markets. a lot more ahead, stay right there. ahead, much more on the ceo who suddenly bailed on jcpenney to go to lowe's. plus, spacex's latest amazing mission. ceo of 23 and me, find out about the company's future when we come right back this is the "closing bell" with kelly evans live from the new york stock exchange.

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dollars, could be a billion-three, i envision a new management, a new board, and very, very strict security rules, and i also envision that they will have to buy a big percentage of their parts and equipment from american companies. >> so really no argument that zte did violate u.s. laws against doing business with iran and north korea. today, the senate passed a bipartisan amendment to limit president's ability to pardon such lawbreakers joining us now, senator chris van hollen, senator from maryland, good to be with you. >> good to be with you, kelly. >> so is this amendment relevant now? describe the specific conditions under which it would apply >> well, it's more relevant than ever you indicated, you know, just last month, secretary of commerce imposed very tough penalties on zte, not only for violating u.s. sanctions, but also for lying about it, and time and time again, and when

the commerce department made that decision, that had bipartisan support in the united states' senate the president tweeted he wanted to help chinese jobs and zte, and now saying what he said today. the big issue here is we should not be trading off national security interests for whatever the latest deal the president's trying to cook up may be there's a reason we impose sanctions on zte, and when you decide you're going to lift those penalties on a whim, it sends a very bad signal to all others who may be thinking about violating our sanctions, whether with iran or north korea >> so this -- absolutely, and just looking at the language of this, it says it would express live prohibit the president from changing penalties on telecom companies with sanctions levied against them until they met certain conditions, so this only applies n applies narrowly to telecom companies or other companies that violate u.s. laws >> originally drafted more

broadly, but to achieve consensus, we got a 23-2 vote, big bipar san vote, it's limited to telecom companies, and a lot of testimony from members of the trump administration and security experts how how zte and other chinese telecom companies pose a risk to u.s. national security and on top of that, zte's been violating sanctions laws what this says is that the president cannot unilaterally decide to repeal or modify the sanctions against zte or any other chinese telecom that may have violated our sanctions law. he has to make a certification to congress there's been no violation of u.s. law for one year, and that they are cooperating. >> do you have concerns about companies other than zte, senator? i imagine you would. are there examples where, you know, you want -- you will now pursue enforcement action after this one >> well, that's right.

there's ongoing investigations right now into whether or not other chinese telecom companies have violated u.s. law, sanctions law, and if, in fact, those investigations find what they have, they would also be subject to the amendment that was passed today on a bipartisan basis. in other words, the president could not wake up one morning tweeting out he was going to undo sanctions that have been put in place pursuant to u.s. law. >> finally, are you comfortable with what he said today were steps to be taken to penalize zte what's done, including changing its board, management, limiting business it does with the u.s. is that going far enough >> well, these are all conditions we already demanded we demanded that the personnel be held accountable. in fact, zte then rewarded personnel at the company that had been responsible for violating u.s. sanctions, so

what the president is proposing is more of the same. what he's also saying without saying explicitly is he's going to take away penalties imposed by the secretary of commerce just last month, and that's a big mistake to be trading off those penalties put in place for national security reasons to trade them off for some other deal the president may be cooking up for what he said originally was to save chinese jobs, not to support the american economy, or more importantly, american national security interests >> all right senator, thank you for joining us >> thank you >> senator chris van hollen, from washington. red robin missed 7 cents the revenues missed as well, $422 million versus $427 million. costs down .9% versus the up .9%

the street looked for. no surprise, stock down 12% after hours on top of the 5% decline they saw during the day today. back to you, kelly >> wow, thank you, eric, so 12%, 5% today >> 12%, already a struggling stock. i mean, this is a stock that was 87 ten months ago, so a few issues there, a market share battle, labor costs, all the rest >> under $51 right now, move in lower, red robin gourmet retailers crushed today, and the fast money traders say if they buy the selloff coming up first, blastoff for spacex, and we are live out in california, morgan >> reporter: kelly, that's right. for spacex, another successful launch on the books, just a short while ago, and we'll bring you details and the company that's now cnbc's top disrupter. stay tuned 'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do.

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welcome back, a look how we finished on wall street, dow sank 178 points, giving back yesterday's gain to start the week putting us over 25,000. below that now down for russell and moderate decline, 15 points for the nasdaq and eight for the sapp 500 today. another successful launch for spacex 40 minutes ago, morgan saw it live in california -- wait, was it in california, morgan >> reporter: it is in california i did not, sadly, see it live.

i'm standing in hawthorn, california outside of spacex's headquarters, also where mission control is located this rocket blasted off about three hours northwest of here at vandenberg air force base, successful launch, falcon 9 rocket, tenth such rocket launch, including falcon heavy it marks the 12th time that a reused first stage booster like what you see behind me, was reflown into space this was the dual mission. the mission is still underway. the first half was carried out, two satellites for nasa called the grace follow on satellite, deployed 300 miles up, and now currently, the second part of this mission, which is putting five communications satellites into orbit at 500 miles out, altitude currently carried out,

and now i sat down ahead of the launch with spacex's coo and president gwen shotwell saying after 18 successful launches last year, they are on track to do nearly 30 this year, and spacex accounts for 60% of the launches across the globe. guys, this is exactly why spacex is now no. 1 on our cnbc disrupter list for the year. the reusability technology the fact it's been able to cut launch prices takes so much market share as it continues to carry out this longer term vision to bring humans to mars back over to you >> looks overcast where you are, morgan how big an area can you see the rocket launch on a clear day, you know, take place, like, maybe within a three hour radius i don't know maybe that's crazy >> reporter: i think anything's possible here in l.a., you have a lot of overcastin overcast, right, but that said, the rocket launches that do take place at the air force base are

pretty famous including ones recently done in recent months by spacex. i mean, the pictures, the video, just gorgeous as these rockets shoot across the sky looks like rainbow plumes. >> yeah, no, it's cool i love watching it as well glad it was a success. morgan, thank you. time now for a cnbc news update with sue. >> hem lre's what's happening at this time, everybody the facebook ceo apologizing to the european union parliament in belgium for the company's failure to stop misuse of internet tools >> it's also become clear over the last couple years that we have not done enough to prevent these tools from being used for harm as well that goes for fake news, foreign interference in elections, and developers misusing people's information. we did not take a broad enough view of our responsibility, and

that was a mistake i'm sorry for it the law firm of attorney michael avenatti was hit with a $10 million bankruptcy court breaking the promise to pay $2 million to a former colleague. the justice department revealed his firm defaulted on back taxes they promised to pay the irs thousands casino workers voting on whether to go on strike if so, it's the first city-wide strike since 1984. they are demanding higher wages, protection from layoffs, greater workplace safety measures, and protection for immigrants with temporary status you are up to date back downtown to you, kelly. see you tomorrow >> all right, sue, thank you very much, sue herera. auto stocks crash on sales slump. fast money guys talk those names next, and a mceex23nde o plains

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this morning jcpenney's ceo is resigning effective immediately. he's going to take the help at the home improvement chain, lowe's >> facebook's ceo, mark zuckerberg, testifying before the european parliament in brussels >> we did not take a broad enough view of our responsibility that was a mistake and i'm sorry for it a lot of these fang stocks with the exception of amazon support very, very reasonable valuations relative to growth rates. biggest concern i have is government prevention. cnbc taking the wraps audiotape the 2018 disrupter list >> we can afford to be picky a lot of people want our stock than we're willing to sell it's a great place to be in. president trump hosts the south korean president today at the white house. >> the big topic will be singapore and the meeting, see what happens, and whether or not it happens, and if it does, that'll be great it'll be a great thing for north korea, and if not, that's okay

too. >> yesterday, dow closed above 25,000, but, today, giving that back, dropping 178 points. and how about shares of autozone they closed lower by more than 9% after the company raised concerns about rising costs in the earnings call today. other auto retailers also closing down in sympathy you can see there, everyone from o'reilly to advanced auto parts, down more than 3%. is this a buy the dip moment joining us now to discuss that, our fast money trader, tim and karen, and welcome to you both >> hi. >> karen, the names were all over the place they were part of the amazon -- death by amazon trade, fought back a little, but what do you think about today? >> well, i think it was actually pretty overdone today. i mean, a couple weeks ago o'reilly reported, trading up, and today, they reported, just say ap reported, numbers are not that at all. call goes on, the stock traded off, and then auto zone traded off as well, and i -- i always

find it interesting when stocks trade down in integers it's absolutely puking them out, no matter what, they just want out. we all know there's an amazon problem here, but to me, it reminds me of when the amazon story just suggested retailers, but they came back and got companies with good balance sheets and valuations that are really not so extensive, so i think they are interesting you can wait a little so that, you know, for the dust to sub e settle >> it was dusty. >> puky, wait a little, but there's value there, i think >> tim, is it just a short term challenge for the retailers, or do they have an existential problem? >> some existential problem. no question the amazonification of the world, they dealt with that last year, and you had the nice rally back, 13 times on autozone is not extensive, but they beat bottom lines, missing the top line, which is where people wanted to see it. comps are difficult.

labor costs high for them. spending a lot of money to reinvigorate top lines, and, therefore, despite the fact margins are better here, the top line is still in question, so i don't think you have to point it out. how they trade outside reversal today, no need to go in there tomorrow >> all right mike, your quick thought >> i don't know about existential, but they are a long term pressure here faced on how much people do it yourself or not, low cost of used cars, buy a new one, curious if there's something more >> are you under the hood? find yourself getting dirty? >> no, but with the house, if it's in the garage >> gear head >> i have an '87 gt pickup >> you have to be under that thing. >> a lot of oil. >> okay. >> we got to go. unfortunately. i want to hear more about the truck, frankly, and tim, are you under the hood >> you thought i would have a fan

fancy pants response >> i can talk about the fuel injei injected this and that, but, no, absolutely not >> liar, your nose is growing, tim, karen, thank you both a lot more is coming up at 5:00 p.m. eastern time on "fast money. coming up, the disrupter 50 a out, and 23 and me is number seven. we'll be right back. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪ ♪ with expedia you could book a flight, hotel, car and activity all in one place.

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welcome back we have news on cbs, ongoing battle between the cbs boards and redstone family national amu amusement. there was an fcc filing saying they intend to block the bylaw changes that the red stones and national amusement are trying to pursue on cbs shareholders that's something to watch. latest, again, cbs, the board, trying to block bylaw changes coming from the red stones back to you, kelly >> eric, thank you cbs shares are barely moving lower, so i think the market's waiting to see - >> fighting every inch of the way, but doesn't change it overall. >> cnbc unveiled the disrupter 50 list today. private companies doing their best to shake up the traditional corporate landscape. no. 7, 23andme our own julia borsten is in mountain view, california now with the ceo of the company. julia? >> kelly, thank you so much, and, anne, thank you so much for

joining us today congrats on your spot in the list, top ten, no less >> thank you >> after almost being shut down years ago, now you work with the fda and have fda approval to tell people through your data if they are carriers or have markers for certain genes. how important is it for you to get fda approval and work with them are you too reliant on fda for your growth? >>we have a path, direct t consumer, a a laboratory developed test, not going through the fda. obviously, in 2013, it was apparent we had to go, we are a medical device and had to go through the fda. honestly, i think for us the mission is really about changing health care where the consumer has a bigger voice, and in some ways, if you want to really change a fundamental structure in the system, you have to work with part of the system, so i'm really proud of one of the things we've proven to the

entire medical community that a consumer is capable of getting genetic information and really meaningful information like the breast cancer results on your own without a physician, without a genetic counselor, and that we prove out that the consumer is quite capable of being more and more in charge of their own care >> what's next is it finding out more information about different diseases that people are carriers for or is it about developing drugs you already partnered with pharmaceutical companies, what's the next big thing >> both of those it's more and more about empowering the consumer. i think we're just scratching the surface of the types of information we'll be able to give you back. so there's a whole -- there's a whole world, and i really think about what are ways that 23 and me can say we eliminate early preventable deaths ment -- the second side is the research model it is, you know, massive amounts of information, you know, of a 23 and me community that came together, opted in, they want to

participate in research, and we are discovering either cures for diseases or ways to prevent a disease. >> now, there's so much information that you have, over 5 million profiles, and now there's questions about how the data is used by law enforcement. very big story about the golden state killer and dna helped solve the case is your data available >> no. we always said since day one, this is not, like, this is about -- it's a data base -- it's a community of individuals who come together and it's about you, like, we want to empower you to learn about yourself, you know, learn about your families, learn about others, but it's not about trying to create a raurs f -- resource for law enforcement. we have a transparency report out, we had questions, never had to return any data we would vigorously fight that the data set used was a different, you know, crowd sourced community data set where people opted into it, and it was not against their terms of service, so it's very different

than what we are, and we are vigilant about saying this is about your experience of learning about your health and being proactive about your, you know, learning about you, your ancestry, and health information. >> kelly, do you want to step in >> just to pick up on that, anne, dann anne, does the company do anything with the information, and do you think we need more rules about what other companies may be doing with the information? >> we, right now, when you join 23 and me, you have the opportunity of opting into research, and without that conse consent, 23 and me will not do anything you, then, decide what questions you want to ask and what questions you do not want to ask. right now, we say in the terms of service prevents, you know, law enforcement and other ways of actually using the data for the specific identifiable purposes, so we are really about empowering you to be in charge, you are the point person, you decide if you want to participate in research or decide to share with someone, and you can absolutely then decide you want to share with no

one. i agree that there should be -- i don't know that that there should be more laws, genetic information, nondiscrimination act, that's a federal legislation preventing discrimination of using your genetic information for, you know, preventing health insurance and preventing job discrimination you know, i think that's important for people to be aware of what it, when you share dna, what it means. >> when you look at the biggest challenge right now, biggest challenge to growth, are there concerns about privacy or convincing people this is valuable information for them? >> we are growing really rapidly and hit a tipping point in society where people are really interested in their dna, and, frankly, like people are all focused on health care, and they would like to. if you have the opportunity to prevent a disease, people are interested in the opportunity to prevent a disease, so i think as we grow, one of thee biggest challenges is educating the medical world. you walk in, say, i have this condition, or i have, you know, a risk factor, you need your

medical professional to know about it without a doubt, privacy is top of mind, something we think about every day. we're doing a lot, and i think that in some ways we have a benefit of being out here learning fromm egood things happening in terms of privacy and mistakes made. >> fascinating industry. >> thank you so much for joining us >> thank you >> guys back over to you >> all right, and our thanks to anne and julia as well for more on that list, go to cnbc.com, a ton of great stories to read and a lot to learn tom frks arle is lvieang a breakout for a big sector, find out what that is. the kayak explore tool shows you the places you can fly on your budget.

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david is now officially the owner of the carolina panthers the nfl approved the the billion manager delivered emotional speech at carnegie mellon and addressed his father's abuse. >> despite these good things about my dad, he had a bad side, too. he was physically abusive to me. i'm sure it was a cycle he got from his father and his father got from his father. in my young life, there was nothing more terrifying, no greater adversity, but i pray to god that i would never be the

same to my children. if i'm proud to say what i view as the greatest accomplishment of my life, i broke that cycle >> that's hard to hear that and keep a dry eye this has been a week where there's been a lot of scrutiny, a lot of scrutiny on his past. >> without a doubt, very poignant all of it, the football team and reckoning he's done with himself and that delivery showing him moving to a next stage avenues tough guy trader on wall street. >> he's moving from pittsburgh i'm not saying he himself obviously david tepper has lived all over the place but to buy the carolina panthers, that's something different. >> he hopped to florida. >> famously from new jersey who is still crying about it. >> look, you buy the team, as i said before, that's for sale you're part of the club now. once you own one of the teams

you're part of the club and probably nobody can take it away from you. >> congratulations to david tepper meantime new york stock exchange operator stacey cunningham will become first female president. she was on "squawk" saying sheaves optimistic. >> same level of great success they have had for so long. i think a lot of that comes down to making sure we have a regulatory environment that ensures the u.s. continues to be the source of capital for large companies. we do have a strong pipeline coming up in june, so i wouldn't make it sound too dire there are a lot of companies that are planning to access the markets. but we want to make sure we haven't gone too far to a market structure that has created an n that's good for big companies and big investors. we want to welcome companies of smaller sizes earlier in their life. >> an outgoing tom farley is going to lead far point, spac,

plans to raise $400 million to go towards acquiring fintech companies, michael this is fascinating on so many levels farley has been a fixture, part of every banner ipo for the last five years. >> he has. he's been the face of this place for a while now and obviously courting companies, listed companies being one of their biggest promoters. i do think it's interesting, amazingly buzzy area, so many fintech startups being in the position he was in, where-of-body is trying to sell you the latest widget on how to trade or process something is probably a decent spot. >> what do you think about the fact he's going to spac. i don't know if it needs to be legitimized. >> a lot of big farms have a spac, publicly traded private equity with a theme to it. i do think it makes sense when you try to spread your bets in a new area. >> best of luck to him and congratulations to stacey

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welcome back here are headlines after hours earnings from hewlett-packard

enterprise, both aren't huge movers look at red robin gourmet. that one down 15%. >> casual dining is tough when trends go against you. restaurant cost improve not good. >> not set the tone for the market thanks for joining us. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. our traders on the desk, tonight on fast stock selling into the close today after president trump reunited trade war fears we'll bring youwords that spooked the market and get the latest from d.c. facebook mark zuckerberg getting grilled again this time by european lawmakers as cambridge analytica apology tour continues. one of our traders says he may have said enough to get the stock back to all-time highs we will explain. first we start off with what could be a major turning point fo