arby's version >> apparently it's hard to get those busts and plaques done >> checking deutsche bank. tomorrow they're having an annual shareholder meeting we could get more clarity on what has been called by steve eisman the problem child of the global banking world so watch that one. and thanks for watching "power lunch. >> "closing bell" starts right now. i'm wilfred frost at the new york stock exchange. negative economic data out of europe ongoing trade concerns making them concerned what will drive the u.s. economy going forward i'm phil lebeau. the summer travel season is about to start and airlines are expecting packed planes. for the travels, a hassle. for the airlines, higher fuel prices and the potential to cut into the bottom line the company that specializes in women's clothes had had only one female on the board. today the women took control big news out of the nfl. voters voting unanimously to

change its national anthem policy i'll break it all down and we'll hear from a hawaiian business owner whose profits are going up in ash and why amazon's latest deal with the police has so many people up in arms. "the closing bell" starts right now. you stole my headline. >> you made it >> i did >> just about. >> i don't want to go on a long thing about trump being in new york city today and the traffic that has ensued, but it's a mess out there, everybody welcome to "the closing bell." we will get to all those top stories in a moment. first let's check the markets. >> the dow bouncing back as we begin this final hour of trade all of the major indices are now positive, as you can see, at this moment. the dow fractionally positive. it's essentially flat. it was down as much as 167 points at the low. we enjoyed a nice little bounce after those fed minutes. >> really clawed back. the big chips and small caps

have been trading the same way the russell now turning positive we're also closely following general electric that's not getting beaten up again today. now it's down after john flannery warned there are no quick fixes. >> more on that particular stock later. first the news from the fed that gave stocks a bump this afternoon. steve leisman joins us with a breakdown of what we learned from the fed minutes >> fed officials, guys, are seriously debating an age old question that central bankers talk about in the middle of hiking rates how far should they go the minutes of the fed's meeting showing a few of the fed officials say the answer is not much further from here they believe the economy may change so much since the great recession that, quote, the federal funds rate could be at or above their estimates of its longer run, normal level, before too long to be sure that's only a few member bs of the committee, with the fed at only one and a half, it's an amazing -- it could top 5% in a normal cycle

that's welcome news for the stock market it wasn't the only dovish comment in the minutes it was also noted the fed could let inflation remain above its 2% target for some temporary time period. saw solid economic growth, a strong labor market. it did worry, though, that fiscal stimulus could overheat the economy. there were another word we talked about all day the trade policies fed officials say their contacts are telling them the uncertainty could hold back business investment don't get too dovish the fed said there will be another rate hike coming soon. maybe as soon as june. the big debate right now, guys, how much more after that back to you. >> steve, thank you. steve leisman following the fed for us let's turn to bob pisani now who's looking at how equities are performs with their european counterparts >> and for all of the problems, love that animation. for all the problems that we have in the united states in o

geopolitics, at least we're growing. we're seeing notable slowdowns numbers we got today in europe, not good eurozone flash manufacturing, pmi, 18-month low. and it's being reflected in the earnings picture which is kind of abysmal the s&p 500, 3.7%. what we're doing 26%. roughly half of this is because of the tax cut but even at 10% or 13%, that's four times more than europe is doing. overall this week this is europe it's showing up in the earnings report too did you see tiffany's today? terrific numbers terrific report overall. but just take a look here where the same store sales were. tiffany's same store sales were up 7% overall. and yet look at what's going on. america and japan up 9%. europe down 9% this is an example of the problems occurring in europe showing up in some of the earnings report. you put this together and you

see the problem of this going on the european stock market has been dramatically underperforming the united states stock market. really for a year now. so if you take a look here, here's italy, for example. we've had a big problem with italy moving to the downside of course we've got the problem with the new italian government being potentially hostile to the euro overall that's putting pressure on european stocks as well. put it all together, the european markets dramatically underperforming. this is the united states. the s&p 500 in the last year, we're up about 14% this is a one-year chart this is europe the stock, 600 it's essentially flat. in other words, s&p is up 14%, europe is flat on the year and that in a nut schell is what's going on in europe right now. finally, one more point. this quarter even with the euro weaker, they can't outperform. the dollar is much stronger. that's causing ancillary damage. for example, emerging markets have been notably down

you can see here what's going on with the united states stock market and here's the emerging markets. eem basically flat for the month. strong dollar, certainly hurting some of those emerging markets guys, back to you. >> great stuff thank you very much for that bob pisani with this new animation. let's focus in on the european banks. a number of stories today. the ft reporting that barclays may be making a move for standard chartered the focus on europe and the u.s. would seemingly marry well with emerging market. and the two banks and ceos know each other well from their days at jpmorgan and may want to have a global competitor for their employer that said, it would also likely put one of them out of a job and mark a massive u-turn for barclays who had been trying to pull out of me merging market regions they had been in meantime, bloomberg reporting that deutsche bank is planning

to shrink its investment bank which would put more assets available to buy and the chairman might vote of no confidence. there the share prices standard chartered up a bit deutsche bank continues to slip. and the one very interesting takeaway is just where these market caps are. 35 billion the biggest of barclays >> tiny. yeah i was going to say, these are the sick men of europe but the sick man is europe. >> interesting on pmis they're slipping i think 18-month low for manufacturing. in absolute terms, they're higher than what the u.s. pmi was. it was doing better than it is but it's not in recession. >> well, can the u.s. market continue to rally without the rest of the world behind it? joining us now to discuss that, michael santoli here with us and steve widing from citi private bank earlier this year, everyone was exciting

firing on all cylinders and so forth. now that that's reversed itself, is that a problem for our market >> you know, it's a complication of the picture i think you're not any more talking about this broad based global momentum that's feeding into u.s. terms can the u.s. continue to outperform probably so. but the risk is it seems like old times. it seems like that familiar picture where the u.s. can grow in a slowish way, can basically get more than its share of global growth. but does that really excite the market at these levels i'm not convinced that's the case also the u.s. economic surprises have not been all that robust lately i think the big question, the market's been struggling with this how much to extrapolate this idea that we have a hot running economic into the next and the fed minutes told you this too they're just not sure exactly whether we have this self-reinforcing spring loaded boom going or if it's just more kind of two steps forward, one step back. >> steve, is it hard to see

whether the positive surprises come for the rest of 2018? >> well, i think there's a difference between economic surprises and absolute growth. clearly if you take a look at what happened in the u.s. and the eurozone in the last four quarters, u.s. real gdp is up 2.9%. the eurozone is up 2.5%. now, if you take a look at economic surprises, and our own surprise index has been negative 100 in the eurozone. there was supposed to be an economic boom. but the absolutely performance, you just heard it from one of the guests who just spoke between the last presentation. but the absolutely performance differences are not even that dramatic so there's been a strong performance in the united states we think we will continue to get that the u.s. has had two good years in the stock market with valuation increases. we take a look at a lot of other parts of the world you take a look at a five-year return window, and they've had a quarter of the return in the united states. >> right

>> so when you have this happen, look at is it opportunity actually to rotate into places where suddenly people become despondent >> or maybe it's just all down to the u.s. tech giants. all of the difference between our markets and theirs this whole recovery guys, thank you. michael, we'll see you shortly steve, thank you as well got some news on the nfl it's issued a new policy on how it's going to deal with players and the national anthem this season eric chemi back at headquarters are that news. >> a couple hours ago the union unanimously -- i'm sorry not the union. the owners agreed to a new policy where if players come out on the 2350efield, they have ton for the anthem if they don't, their team will get fined. then the team could come up with other penalties for those players. and the commissioner could come up with other penalties for those players. but the players, they don't have to come out on the field if they want, they can stay in the locker room. so that's what the league is trying to do here. here's what commissioner roger

goodell said about it earlier today. >> we've been very sensitive in making sure that we give players choices, but we do believe that that moment is an important moment and one that we are going to focus on. >> the union is already out with a statement saying they don't agree with this policy of course, there's nothing they can do about this one because the way this rule worked, it wasn't subject to collective bargaining so the owners were allowed to make this decision without dealing with the union the union is still going to find ways to push back. they want to make sure their players have a voice as you know, all the businesses, a lot of support, ratings dropped, a lot of people didn't like the fact that players were out there not standing for the anthem a recent poll showed 60% of the american public is in support of a rule like this either way you still have at least 36% of the population that's not going to agree with whatever rule the nfl comes up with back to you guys >> i saw they were even considering using field penalties as a way of dealing

with this. the 15-yard penalties for players or something like that >> they got rid of that. it's just monetary fines no yardage penalties there >> interesting eric, thank you very much. we have got just under 50 minutes to go before the bell. we got a pop in the markets after the fed minutes. we're just holding onto slight gains for the s&p and the nasdaq the dow is just below the flatline but the dow had been down as much as 167 points earlier in the session. don't go anywhere. "the closing bell" is just getting under way. >> straight ahead, one business under fire in hawaii we'll talk to the owner who says the eruption is melting his bottom line. plus, why jcpenney ceo decided to leave the troubled retailer so suddenly. >> if i were sitting in your seat, i would feel a little let down and would be very disappointed in me >> this is "the closing bell" with kelly evans and wilfred frost live from the new york stock exchange 'rba itwo minutes.

there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

welcome back to "the closing bell." the dow is flat at this moment had been down as much as 167 points s&p slightly higher.

let's check in on some market movers shares of tiffany soaring today. the luxury jewelry retailer also raised its full year-outlook it's up 22% right now. burger chain red robin still dropping that stock down 17.5%. >> ouch. keeps sinking. how about hawaii the kilauea volcano continues to spew lo va inava into the air hawaii's top tourist attraction is now closed. >> joining us now on the phone from hawaii, a very good afternoon to you, gary thank you for joining us yesterday we spoke with your governor who seemed to say it was business as usual for most of the islands and that it wasn't really negatively impacting the economy. is that your experience? >> absolutely not.

yeah yeah, good morning the main thing i want to get across to everyone is, you know, this is nothing new. the kilauea volcano has been erupting nonstop since 1983. that is why the tourists flock he here to view this spectacular feat of nature about 5% of the island is affected 95% is completely safe and open for business but we've had a huge amount of cancellations from guests coming to the island. so our business is down about 30%. we're one of the largest adventure tour operators on the island hotels on the kona side, they're down about 50% so our thing, we really want people to realize you do not need to alter, change, or cancel reservations for any reason. nothing has really changed. >> so you're saying, gary, you've lost 30% of your business even though a small proportion of the island and operations are

affected do you guys have insurance to cover something like that? >> no. insurance does not cover loss of revenue or anything like that unless it was some kind of terrorist event. so yeah. like, a lot of companies have laid off some people that only go to the volcano national park, they are completely shut down right now and i do have some good news for all of these people that have canceled, alaska airlines just launched round trip ticket from seattle for under $400 per person so for all those people that canceled, they pretty much opened the door for the rest of you to get some amazing deals right now to come visit us and we also got some more good news yesterday from norwegian cruise lines, they're coming back to their normal schedule on wednesday next week. they've been a huge supporters of ours for over 15 years. to have their support an know it's safe to come back to the island, nothing has changed, that's really good news for us

>> despite your message here that only 5% of the island's affected and that people shouldn't be canceling because it's business as usual, how fearful are you that this will continue and for how long will it make a big negative impact on the island's gdp for the quarter? >> yeah, for sure. the main thing is the media has just really over-exacerbated the actual event itself. i mean, the kilauea volcano, we've been hiking out there every day for the past 15 years. so it just happened to open up into an area that had a community in it. a small community which is very unfortunate and we feel for them but the fact of the matter is they live on lava zone one they built their homes on top of the active volcano we all knew this was possible. we didn't know it would be within our lifetime. the last time it erupted in that area was 1960, 58 years ago. >> we were talking to the governor about that yesterday saying, you know, they got insurance that that shouldn't

have happened. thank you for joining us. >> thank you so much for having me, kelly. thank you. >> gary marrow as he said, their operations are not as affected as the cancellations would have them believe. would have people believe. we've got exactly 40 minutes left of trade. we are higher just about for the nasdaq and the s&p the dow is flat. still to come, neel kashkari stops by >> that will be interesting. first jcpenney's outgoing ceo speaks to employees about his leaving. you'll hear when "the closing bell" returns.

wait what? directv gives you more for your thing. your... quitting cable and never looking back thing. directv is rated #1 in customer satisfaction over cable. switch to directv and now get a $100 reward card. more for your thing. that's our thing. call 1.800 directv. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets.

okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

welcome back to "the closing bell." time for the quote of the day. this one comes from marvin ellison. >> he released a video message to employees yesterday outlining why he decided to suddenly leave the company and move to lowe's >> the one thing i did not do as chairman and ceo was grow the stock price and generate wealth for you and your associates and shareholders team, this is the number one responsibility of a ceo. and something that i did not deliver on >> sort of stating the obvious i wonder how well that went down with the employees >> well, you have to acknowledge. it'd be one thing if he said i

think i did a great job and sure you've seen no increase in wealth >> it was admitting defeat, sure i just wonder how the message came across. i'm sure the employees are like -- >> it's hard they're the ones stuck now it's more about jcpenney and tiffany's today highlighting that very different companies but not all traditional retail is dead shares up less than 1% after getting hit hard on the news of departure. it's a big mover today that bill ackman is taking a billion dollar stake in the company. look at this move. lowe's up more than 10%. i mean, if his strategy was just build a position, public learns about it, and i exit, you can do okay by that as well >> it's a shame it didn't happen after he joined then that would go down as part of his performance. not quite.

next stock to watch, ralph lauren posting a big beat this morning. posted higher by strong digital sales in europe. up 14% interesting contrast to what tiffany's was. other than europe. but anyway, some traditional retail bits of strength coming through. >> maybe digital is the secret there. especially if had the uk the online penetration is really good in retail 35 minutes until the close now. dow back in negative territory by about seven points. nasdaq higher by 27 today. small caps also down slightly. here's a nasdaq stock down more than 30% this year why one portfolio manager is calling it a top pick. that's next. also, airline stocks have been under pressure for the past month. could a ripe summer travel season revive the sector full analysis coming up.

anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

holiday inn express, and i am a senior public safety my namspecialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come

together to make a difference for other people's lives. together, we're building a better california. hello, everybody i'm sue herera here's what's happening at this hour senate democrats are demanding lower gas prices and they are blaming president trump for their recent rise. a recent lundberg survey reporting the average price reached $3 a gallon for regular

grade. up 9 cents since may 4th >> according to energy analysts and experts, president trump's reckless decision to pull out of the iran deal has led to higher oil prices these higher oil prices are translating directly to soaring gas prices something we know disproportionately hits lower and middle income people >> yulia skripal who was poisoned along with her father says her recovery has been slow and painful, turning her world upside down. she says she is grateful for the offers of assistance from the russian embassy but does not want to avail herself of their services a university of pennsylvania study sought to find which stop smoking methods work best. they offer free counseling, e-cigarett e-cigarettes, and nicotine patches. when the aides were coupled with $600, the success rates tripled. interesting.

little extra motivation there. that's the news update at this hour back to you. >> sue, thank you very much for that sue herera at hq for us. meantime, goldman sachs made $200 million on a vix bet. >> hugh has more of the details. >> hi, guys. thanks for having me >> tell us about -- is this a one-time $200 million profit or how'd it work? >> yes i would call it episodic essentially positioned so they were long volatility what does that mean? so if the vix otherwise known as theory index spiked, they would benefit. what happened on february 5th? a historic jump in the vix the same time equity markets were plunging. and goldman sachs was sitting pretty >> and hugh, in q1, they've already reported these numbers, this specific trade.

yes, their trading performance was better than some of their rivals year on year. but it was a much easier comparison and relative to what some analysts have forecast, their trading was a little bit soft. so does the fact they had some big winning trades in there in fact point to the fact that the rest of the quarter's performance was disappointing? >> what we've seen is that actually equities business, they were up 38%. which actually exceeded the two primary rivals in that business. so, you know, they actually exceeded expectations. and they exceeded expectations so strongly, actually, that the internal scoop is that executives at goldman sachs are bullish on their prospects of getting back to number one in equity business. a business that they were number two or number three dmending how you look at it >> okay. hugh, great stuff. it's an excellent article on cnbc.com make sure you go and visit that. hugh, thank you for joining us

>> phil lebeau has some details for us from elon musk. >> these are the tweets some people will say this is a great deal if they are factual and accurate according to elon musk and tlaes. here's what he tweeted out essentially saying problem is that journalists are under constant pressure to get max clicks and earn advertising dollars or get fired tricky situation as tesla doesn't advertise but fossil fuel companies and gas/diesel car companies are among the world's biggest advertisers. the implication of this one -- and here's another one going to create a site where the public can rate the core truth of any article and track the credibility score over time of each journalist and publication. calling it pravda. the problem with these tweets in

terms of the suggestion that there are some reports out about tesla that are negative because quote, unquote mainstream media is owned by fossil fuel companies or big automakers. you and i have been in thi business a long time i don't think i've come across a journalist who said, you know what it'd be good to do a negative story on tesla because a particular automaker advertises with us. i've never heard of that i've never seen that and yet at the same time, elon musk feels like his company does not get a fair shake by a number of the mainstream publications ben kalla was out saying there's too much negativity surrounding tesla and its stock and people are overlooking the fundamentals that are there so this is elon musk once again saying the true story as he sees it with tesla is not being accurately reported. >> phil, absolutely right to say that point clearly there is a significant fire wall between the

advertising sales departments and the journalists themselves and for him to imply otherwise completely misses the integrity and the point of various news organizations. either way, i guess in a sense his rant and ramble here on these tweets is not dissimilar from something we hear from the president quite often. he feels like he's the victim of fake news. >> correct and much like the president, when elon musk feels that either he or his companies particularly tesla are being attacked unfairly, he doesn't sit there and take it. he fires back and goes after those who come after his company. and he goes after them with a vengeance. and now his supporters and investors in tesla, they love it because their belief is he is fighting for his company here's another one of his tweets even if some of the public doesn't care about the credibility score, the journalists and publications will it's how they define themselves. again, it gets back to his belief that a number of media outlets do not accurately

portray tesla and the development of its vehicles, where they are with the model 3, et cetera. >> yeah. there's an effort called news guard. you probably heard about it. steve brill. i don't know if it was the wsj op-ed that set him off today holman jenkins taking issue with musk always kind of wrapping himself in the mantle of electric cars are the future again, the reference to pravda is priceless of all the places to go. see you in a bit >> sounds good joining us now craig hodges, steve grasso, and rick santelli. steve, you're a tesla guy. >> i was going to say, i was going to pull it back. no matter what you ask me, i'm pulling it back to tesla as he said, when you're a

shareholder, you want to see the ceo jump out of his skin and defend that stock as much as he can to the end of the earth. and i think we're at that point where ben kallo said today, peak pessimism. it's everything they say about the stock is wrong with it i think we're at peak. >> you think we're at peak pessimism with the stock at $277 >> the beauty of it is we're only at $277 and we're at peak pessimism. have you seen any, any pro-comments or articles on tesla in the last two weeks, three weeks? >> i don't think i'd see them in the places i'm looking. >> but would it change if we had this kind of website that kind of analyze journalists more. it's fair there's been criticism. they've missed delivery numbers. >> totally it is 100% fair. he has missed every production line his margins have been squeezed on the model 3 so we're looking at a bunch of

things that are true consumer reports this is not a made up article but his angle is they tested the wrong car. the ones we tested stopped at this amount of distance. so not to get too granular, but this is something they can fix over the air as he said. if they can, the stock should rally. if he can get those margins of the model 3 in q2, flat in three and four up, the stock should rally. >> craig, we should move on. talk a little bit more broadly about the markets. you think anything interesting happened there with the fed minutes or what's on your mind more broadly >> oh, you know, i like this market and i've done a little work on midterm election stock markets and it's a surprising outcome. nothing happens for about the first nine months, but since 1962 if you take the low of the year of a midterm market, election market, go out 12 months, the average return is 30%. and since 1946, the market -- the s&p 500 has not declined in the 12 months following a midterm election

so i think we'll see more volatility, but i think stocks are cheap. i think there's a lot of opportunities out there. and that's what we're doing at the hodges funds looking for those good companies. >> you like the smaller caps, run the bigger caps? >> actually, small caps are starting to outperform i think the russell 2000 is up 5% or so all the other averages are pretty much flat for the year. and it playsinto they'll have tariff issues. the biggest beneficiaries of tax cuts, or the biggest when are fisheries of decreased regulations and such and repatriation plays right into them. because of m&a and so, things are really lining up well for small caps, i believe. >> rick, it's a strong day for the dollar but not against the yen. talk us through the moves we're seeing there in the currency markets. >> yeah. i know it was a great day for the dollar and there's always cross currents when it comes to what's going on in japan, the bank of

japan, the japanese economy, their first negative quarter of gdp in several years but i do caution about getting too nervous on the green back. because when the rather dovish minutes were released, it did break, like, pretty much everything moved yields moved lower as well but the dollars still managed to put up a nice gain a little better than 3/8 of a cent l you know, really was all about the fed. the fed changed things and it still disappoints me a bit that the stock market's knee jerk reaction is still in a rally. they need to break that. easier said than done. what the fed's doing is not only logical, it's late in coming but i give the central bank a lot of credit. they've built some insurance but you did see 2-year note yields drop. but you could have a flatter curve even when yields go down because the 2-year note yields were down, but so were 10-year

note yields. 30-year bond kind of off in its own little world it was down four but i do think the dollar did very well considering all the moves i just described and i would like to throw a bone out there for the technicians. we did lose that 3.03% in 10-year notes when we opened up going back to 2011 once we closed above it towards the end of april, we haven't settled below it since today looks to be a day that will occur so you might be looking at some consolidation especially into this holiday weekend with long end rates easing back a bit. >> just quickly, what levels are you watching here? >> we tested that 100-day moving average. we're well above it, 20 handles above it but to rick's point, it's hard to reverse it.

you would feel there is pressure on e the market. but with the fed being so dovish, you would look for these to hold. especially going into the three-day weekend. >> was it so dovish? >> i think the market has interpreted it as so dovish. technical term right, rick? >> exactly >> long "o." >> and if you want to give it the harvard thing, you go so dovish yes. >> thank you for joining us, guys let's get to leslie pickett. >> i wanted to give casey's gen. pushing for a sale a spokesperson for jana tells me, quote, we don't own a single share of casey's so no activism at least imminent at that company by jana partners at this time, guys back over to you >> so no activism at this time. >> please tell me we're not

starting to parse options land and different ways they might have exposure. >> they say that the stake is not -- they do not hold a stake in casey's general that they are not pushing for a sale they don't own a single share. >> all right >> so that's the latest. >> stock's reversed. leslie, thank you very much. casey's now up only about 1% 18 minutes left of trade we're in the green for all four of the indices the nasdaq leads a charge up 0.5%. russell no longer in the green i was wrong. coming up, we're heading west for an interview with neel kashkari that's comie ining up >> north dakota's production is back near peak levels. brian sullivan will give us a live report from the ground. >> we came here to talk about oil. but when you're in this amazingly beautiful state, you can't ignore the other natural resource the bison. more from north dakota when cnbc continues.

so, my portfolio did pretty well last year. that's great. but the market was up nearly twice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how etfs measure up to one another. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full

education curriculum to help you improve your skills. that is cool. and if you still have any questions you can always chat with us on facebook or call our experienced service team, 24/7. yep. just because you're doing it yourself doesn't mean you're on your own. that's great. you're still up. alright. you're still up. if i knew you were gonna run the table i wouldn't have invited you over. call (866) 296-7451. act now to take advantage of commission-free trades for 90 days, plus get up to an $800 cash bonus when you open and fund a new account. ♪ welcome back to "the closing bell."

ge sliding today the stock on pace for its worst daily performance since april 2009 >> it's a shock to me that this 7.5% drop is the worst since april 2009 this stock has been hammered lately but i guess in smaller increments percentagewise. how about the airline stocks >> phil lebeau has more on how the summer travel season could impact the stocks. phil, hello again. >> hey, wilf it's going to be a very busy summer that's not surprising given what we've seen in terms of the economy, demand, people who want to travel. here's what airlines for america is expecting in terms of people flying in the u.s. between june 1st and august 31st, a record 246.1 million passengers are expected. that's an increase of 3.7% compared to last year. as you take a look at what those people are paying, really compared to a few years ago, they're not doing too bad. the average as you go into memorial day weekend is $336

round trip domestic fare but look at these fares overall. compared to a few years ago, they still remain relatively low. the problem for airlines is what we're seeing with jet fuel costs. it's up almost 50% in the last year it continues to move higher. we had a chance earlier today to talk with oscar munoz. the ceo of united. he said so far we haven't changed our earnings outlook we still believe this is manageable the entire industry as far as airfares, we've seen a little increase but there's so much competition out there you're not seeing huge spikes in airfares overall nonetheless, investors get worried when they see the biggest expense outside of labor continue to move higher. that's what we're seeing with jet fuel that's why the airline index continues to trend lower guys >> yeah. and it's not like the labor costs are going down phil, stay right there we want to bring in seth seth, are you surprised they

haven't done more to raise pric prices, the airlines >> there's reasonable only so much they can do you can't just raise prices. the way airlines get there is through constraining capacity. the problem is when you start constraining capacity, then that actually pushes up your unit cost too because these airlines are worried about cost, it's kind of this delicate balance between, yeah, trying to keep fares at a certain level. to do that you would end up pushing up your labor costs and other costs when you cut capacity this is largely a fixed cost industry to become less productive >> which airlines do you think is the best place to benefit from the summer travel season? >> well, look. it's airlines that have a lost of east/west exposure in the summer united, phil mentioned earlier, united tends to peak in the summer they typically have a more difficult winter

not a lot of florida exposure. caribbean places that tend to peak in a month like march but they tend to do well in summer having said that, they're exposed to other low cost carriers out there whereas an airline like delta, less exposed to that hawaiian right now an airline to be more concerned about. there's all kind of new capacity there at that time you have the volcano going on >> phil, i think you sort of perfectly summarized what's going on index down 10% year to date. jet fuel is up 50% yeah and seth was kind of highlighting, these guys can't really just raise prices that easily >> correct >> that's got to have investors a little concerned >> well, i think at the end of the somedday what investors are worried about is where's the next growth cycle for the airlines you say you've got incredibly strong demand.

2.6 million people on any given day this summer will be flying per day in additional passengers so you have this demand at an incredible level right now and yet couldn't go much higher. no, maybe not. then there's no cap on it. but the upside seems to be a little bit limited right now and yet at the same time, when you look at jet fuel, people remember when we had jet fuel much higher than right now that's the concern in the back of the mind of investors >> certainly if you're planning a road trip this summer, you've got to be looking at the cost gas pump versus these flights. i guess it's a good time maybe more people will take to the skies. guys, thank you both >> thank you. >> seth kaplan, phil lebeau talking airlines with us we'll see if that demand boost helps stocks here's where we stand with ten minutes to go.

dow up now the imbalance to the sell side nasdaq up a good 0.5%. coming up next, mike santoli is posting up one of today's biggest decliners. >> in fact, it's a classical name in technology with a pretty new ceo having a pretty rough day. i'll give you all the details when "closing bell" comes right back (birds tweeting) this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for smarter business.

♪ ♪ at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

you'll only pay $4.95. sure. mom,what's up son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. [ chuckles ] download the xfinity my account app and set a password you can easily remember. one more way comcast is working to fit into your life,

not the other way around. welcome back to "the closing bell." send it back to the floor. mike santoli is posting up >> yeah. hewlett-packard enterprise we brought you the results for the latest quarter last night. wall street is not specifically liking the guidance. the new ceo took over for meg whitman a few months ago said the second half of this year is going to be something. shows you the market with this stock down more than 10% to 15.5% doesn't want to pay much more than ten times earnings for a no growth mature tech company right now. we'll see if the street's going to rescue this one right now basically investors not interested in paying up for it >> not the darling anymore mike, thank you. did you watch the basketball last night no, but that's good because

they -- it was -- warriors couldn't do it >> the animation reminded you of that >> it did. >> mike santoli will be coming to take this seat any momentnd a i'll be coming back with the closing countdown. don't go anywhere. e, even though geico has been- ohhh. ooh ohh here we go, here we go. you got cut off there, what were you saying? oooo. oh no no. maybe that geico has been proudly serving the military for over 75 years? is that what you wanted to say? mhmmm. i have to say, you seemed a lot chattier on tv. geico. proudly serving the military for over 75 years. you ok back there, buddy?

♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "the closing bell." we're seeing a nice little rally

towards the end of the close we now go to the dow up about 40 points the low of the day was 167 but let's begin with the s&p 500 intraday chart not the dow chart. you can see that rally really started to kick in and bring us into the green territory, positive territory when we got the minutes, a little more dovish from the fed. similar intraday move for the dollar it did just lose some of those gains when the minutes come out. does the same thing for you. we did see yields slip just a little bit because of those dovish minutes but overall the dollars we just saw stronger today because of some weakness out of european on some of its data let's look back at the equity market half screen view from all of the indices. all in the green as we approach the close. these are pretty much the highs of the day we're seeing. 0.6% higher for the nasdaq, that's the leader. financials the worst

performance. nonetheless a nice rally into the close. >> something unusual happened today. the federal reserve minutes moved the market that almost never happens. it's generally kind of a snooze, folks. but not today. and the reason that happened is that fed said that it would be willing to let inflation run above its 2% target for a, quote, temporary period. basically they use this word symmetric. they said we're not going to freak out if it's below 2% or above 2% not only did stocks go up, but look at some of the other indicators the dollar moved down. we know the dollar strength has been a bit of an issue and the 10-year touched 3% briefly. you don't see that very often. and again, this goes to how sensitive the market is to inflation concerns >> nice to see markets shrug off that negative data this morning. which had weighed on asian and europe equities and dragged us down >> i think it will continue to

do so. remember, the earnings have been weaker as a result overall in europe >> there goes the bell bob, thanks very much. near the highs of the day. ringing the bell here at the big board, boon pickens. boone pickens himself ringing the bell we end up higher by 15 points on the dow. kelly? thank you, wilf. welcome to "the closing bell," everybody. i'm kelly evans. going out near the highs of the session. a gain of about 50 points today for the dow. notably the biggest was ge we'll have more on that in a moment still the russell up to abo about 0.2% today and the nasdaq up 0.5%

and we're celebrating a birthday down here, which, yeah, it is t. boone pickens, it looks like >> he's the only one not singing so it must be. >> he just rang the closing bell up here for the boon etf congratulations to him we've got a couple of big retailers reporting their earnings after the bell today. reporters standing by with those results. meg tirrell covering william sonoma and then l brands joining me now michael santoli along with charles brobrinskoi and michael yoshikami. topping today was intel while ge down 7.5% on the bell. in fact, ge on pace for its worst day percentagewise since 2009 that was at the lows, anyhow over on the s&p, tiffany not only the big winner after the earnings up 23% that's almost 24 bucks for tiffany today.

hewlett-packard lagged after its earnings it was down nearly 11% retail, surprising kind of theme here, mike >> domestic strength is a theme for sure i think within the markets today. even without tiffany, you did have some pickup so i think that's -- it's funny. we had a selloff before the market opened. it was a lot of macro kind of risk off feel. treasury yields coming down. the dollar going up. and then what happens over the course of the day is the rest of the world matters last and, you know, you're focusing in on the fed minutes. >> what about those fed minutes for a second you know, i look at the headlines. i look at some of the different analysts and economists who cover them they're sort of mixed. then the market seemed to interpret it >> not a huge change it's all kind of tweaks around the margins. no bearing on what's going to happen in june that was already baked in. i think the market chose to take the minutes as a slightly

dovish, we don't have to go so fast kind of message from the fed. because they're saying, look, if inflation goes up above 2%, we don't have to immediately have that raise rates faster. and the whole market this year has been about good domestic fundamentals and corporate profits. and so that's -- >> so we didn't get the latter part of that >> as far as the outlook goes. >> where does that leave you on the markets? >> well, it means that i'm concerned about the consensus. that's clearly mike's right about what the market took from that report. i took it a different way which is the fed is not going to be fighting the inflation that they are actually seeing. i heate to be repetitive when coming on your show. but it's signs of inflation. we're seeing a lot of names that have supplier cost inflation underperforming. and inflation leads to higher

rates. so frankly we just think the fed's in a little bit of a denial on this >> denial, charlie because you think it should all be going higher and everything looks good >> there's a lot of factors that are all pointing to more inflation. and they're saying don't worry -- >> which is not good necessarily. right. >> it's particularly if worry like i do that we've got an awful lot of forces all pointing up for inflation >> are you buying right now, investing around that theme? there's a lot of places you'd want to stay away from >> right yeah so absolutely, kelly what you avoid here are things that are going to get hurt by more inflation and its sister higher interest rates. so all the things that did well today as the 10-year went down, utilities, reits, mlps, even some of the safe stocks. those things are going to perform very badly when we get the kind of inflation i think we're going to have. >> michael yoshikami, looking at

netflix up 4%. the tech names just continue to perform, don't they? what are your thoughts >> that they're going to continue to perform. these are really high margin businesses and they're in tail wind industries. netflix, apple, google, i still think really the fang stocks really have a tremendous amount of tail wind behind them the low tax rates are going to be a benefit for them. i don't think it's going to hurt them as much as was just said in terms of the input costs for higher raw material costs. so it's -- you don't have netflix having to ship products or can things in aluminum. i think you're going to see a continued rotation toward those type of assets and away from assets that are going to have some sensitivity to interest rate increases. >> yeah. i mean, it's already such a big part by the way -- >> it's been bigger. >> if you throw in amazon and

netflix into the tech index where they kind of belong, it's even more. >> 30% i think that the only pushback i'd have on it's too big already is we're redefining so many businesses as tech and of course you have the cliche that all companies are tech companies at some point a hundred years ago somebody was going around saying when you think about it, all companies are electricity businesses it loses meaning i do think you don't necessarily want tech up at the exclusion of everything else. we're not really getting that. but it's a more selective market it's not everything going up at once it's gathering momentum. and so i don't know if you want to make too much of today's comeback because the new york stock exchange, more volume in down stocks than up today but it definitely was a kind of a save from a negative >> where are you in financials and energy right now it's been one place people are looking to as maybe kind of new leadership in the market >> yeah. and we do believe there's a lot

of opportunity in energy boy, it's been a long time natural resources stocks have underperformed for close to five years. we're seeing some real turnarounds and some names that should produce great cash flow with oil over $70. plus it was t. boone pickens who said we were going to get to $70. he was right there could be a better balance now around $70 and there's a lot of oil stocks that are going to do well at that new level. >> any particular names you like >> we love nov as it sounds for no other vendor if you have -- you want to put a platform out to sea, if you want the best drilling equipment, you'll go with novarco and i love apache. but a lot of these companies just make a lot more money at $70 than they did $50. >> all right michael, a final word to you name you'd recommend now before

we let you go? >> first of all, i think sectorwise, i think financial services makes a lot of sense right now. you have net interest margins that are going to be expanding because of higher interest rates. i completely agree with what charlie said that we are in a bubbling up inflation economy. i was a little suspect of that, but now i'm becoming more and more convinced >> all right now you're a believer too. we'll see you guys thank you very much. michael yoshikami and charlie with us. brian sullivan is out in bismarck, north dakota, at an oil and gas conference in the bakken region. he's now joined by minneapolis fed president neel kashkari. brian? >> yeah, kelly and mike. thanks very much i heard your great discussion about the fed and fed minutes. i thought we're at an oil conference but the minneapolis fed guy is here, let's bring him over that's not exactly how it worked, but thank you for being

here you heard our discussion mike and kelly were talking about it would we read this as a dovish move by the fed? >> i think it's an honest move we're all looking at the data. >> honestly dovish >> it's honestly saying we want to assess how the economy's going to evolve. i've been pleasantly surprised saying where's the inflation inflation has now moved up basically to our target. that's a good thing. we're still only seeing a little bit of wage growth i think the minutes reflected the honest discussion we're all having as we're trying to assess where is the economy going >> do you worry some of your fellow fed governors said you're moving too quickly on rates. >> i think the minutes touch on this i'm paying a lot of -- driving the front end. yet the back end is still staying anchored >> it's flattening >> what is that telling us a big concept we're debating all the time is where is neutral, what is the neutral interest rate we don't know for sure we have to estimate it i think the flattening yield curve is giving some signal we

might be closer. >> is the flattening yield curve also giving a signal that the economy is set to slow down? >> well, not necessarily i think if we overdo it, what are the risks to the economy trade is a potential risk. a bad trade outcome in these trade negotiations if we overdo it and invert the yield curve, that also could be a bad outcome. so i think there are a lot of different signals in there >> are we slowing down >> well, i don't think so. i mean, when i travel around my district, people still feel they're investing. they're still hiring they're still working for more workers. i think the fundamentals of the u.s. economy seem to continue to be strong. but you never know what's around the corner >> i just have one question for you since you're at an energy conference in new york, andrew cuomo continues to say fracking, it's bad for the environment. you know, we don't want it even though new york state desperately needs growth right now. are you a pro-fracking kind of

guy? do you think this is a technology that helps the u.s. economy? >> i do. absolutely fracking has actually been around for decades some of the recent technologies combining with horizontal drilling, that's the more recent phenomena. but it's been around for decades. it's not new but the oil industry has changed for the u.s. now it used to be when oil prices went up, it hammered u.s. consumers now that we're a big oil producer, as our economists think about it it's more neutral. but it helps the production side of the house >> do you think, would it be better if the democratic party embrace that message instead of having to hold the line by saying bad for the environment, you know, not in my back yard, not going to happen, not worth it >> well, i'm going to leave the political discussions to the professional politicians and just say i think the fracking industry has been a net positive for the u.s. economy overall and we're much less vulnerable to geopolitical shots than we

used to be >> headline just crossed the bottom of our screen the fed, you may have heard of them. >> i have. >> set to vote on the volcker rule change may 30th what's that? you know them, you talk to these people >> i do. i'll let them vote when their time comes >> how would you vote? >> net net, i think we need to be much tougher on the biggest banks. the biggest banks in america are still too big to fail. don't let anybody tell you they're not. if they got into trouble, it'd be on the taxpayers to step in so that's where my big focus is. we need to increase the capital -- >> i'm going to ask it in a backwards way. is the current volcker rule good or does it stifle banks? >> i think the current volcker rule is a distraction. i don't think it does much to the big banks. i think it occupies a lot of our air time, a lot of our discussion it's very complicated to implement. the single best thing we could do, i'd be happy to get rid of the volcker rule -- that's a trade i'll take. >> is that going to happen >> well, not in the near future. but let's not give up.

>> neel kashkari, minneapolis fed president in bismarck, north dakota i never thought of it, but i love it. thanks for having you. >> good to see you >> we'll take it great stuff, brian thank you very much. our brian sullivan steve leisman will be live from the dallas fed tomorrow. he'll be speaking with robert kaplan, rafael bostic, and patrick harker wow. got a big lineup there you can catch it all tomorrow morning. there's still a whole lot more ahead right here on "the closing bell." >> much more on another day for the markets that left investors questioning their next move. plus why amazon suddenly finds itself facing criticism regarding its relationship with the police and a big step for a company that sells clothes to women but has none on their board. "the closing bell" with kelly stk chgeyo from the new rk ocexan returns in two minutes. hi, kids! i'm carl and i'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. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, some moments can change everything. you can't always predict them, but you can game plan for them. for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions to help them reach their goals. being ready for wherever life leads. that's the power of pacific. ask a financial advisor about pacific life.

welcome back some headlines from dow jones saying the trump administration is considering a plan to imply new tariffs on imported vehicles saying the administration might use that section 232 authority

on national security grounds to impose these imports following an investigation by the commerce department. the president used the same ruling, the 232 when he did steel and aluminum tariffs it says the administration has discussed plans with industry officials. >> yeah. i mean, obviously if nothing else, it's a signal that the administration is looking for more ways to make these gestures to get tough on trade. people thought it was a stretch to use them for steel and aluminum now for actual vehicles. we can produce enough right here >> sure. and joining us for more on this right now is paul ingrassia. this is what dow jones is reporting. what do you think about this >> well, it's hard to see it as a national security issue. except in this one respect

one of the best things that could happen to america in this regard is a strong economy in mexico and strong employment there and strong economic opportunities there. so basically putting tariffs on cars and trade rules that will essentially hurt the economy is going to undercut the security concern that the president himself has raised which is, you know, illegal immigration. so he's working purposes >> there's a couple of things going on there just broadly speaking, paul, obviously this became a huge issue in the '80s. there were a lot with japanese vehicles to level that playing field. but other than that previous example, how big a deal would this be if their -- i understand we probably have some version of tariffs on imported cars right

now. if that was to be raised significantly, this could be a huge problem i'm sure would not be thrilled about this a lot of the korean cars we import now we were talking about some of our allies potentially, right? >> well, yeah. now, here's the thing though what happened in the '80s was that as the spread of protectionism increased, more japanese car companies eventually followed by germans started building cars in car factories in america now, in a sense that probably could be argued that's what president trump wants. he wants more jobs in america, more production in america but i tell you for the detroit companies it's like they got their wish because they wish they hadn't wished for it. all of a sudden the competition went from cars shipping from japan to japanese cars being built in ohio and kentucky, et cetera, et cetera. really it's a law that you just

got to watch out for here. and in the end, you know, that tariffs or local content rules are going to have the effect on u.s. deployment that they want >> toyota shares down 1.5% look gm and ford are barely moving they are fractionally higher >> and they've been very weak as well for other concerns, of course along those lines in terms of the unintended consequences, if right now the chairman and ceo of the big three u.s. automakers were asked exactly what would you like with regard to either rules on imports or what they now have global supply chains under nafta and all the rest of it what do you think their priorities are with regard to trade? >> a certainty, first of all what they don't need is rules that are sudden changes that

take a lot of effort, you know, and a huge amount of expense to adjust to. with very little time. because there's huge capital investments in factories and contracts and that sort of thing. so what they really need is certainty. and frankly i think what they really need is pretty much what they would tell you they want is pretty much what they have now the way it works now >> yeah. paul, thanks for joining us on such short notice. >> no problem. >> reacting to a problem from dow jones. keep you up-to-date on that. meantime, earnings from william sonoma what's happening there >> looks like a strong first quarter for them beat coming in at 67 cents versus the estimate of 58 cents. for revenue coming in at $1.2 billion versus estimates of

$1.16 billion. comparable brand revenue growth was 5.5% versus an analyst expectation of 4%. pretty strong there. they also slightly raise their full-year guidance on adjusted eps and slightly on the revenue line as for their individual brands, they've got pottery barn, williams sonoma. coming up in expectations up 2.7% slightly less than analysts were looking for. but williams sonoma beating here at 5.6% versus estimates of 2.3% growth there the company also giving pretty strong second quarter revenue guidance which may also be helping the stock up 12% there back over to you >> thanks. your thoughts? >> pretty good numbers also somewhat consistent with tiffany's numbers in a sense it's a slightly higher and skewing retailer and i've heard that

millennial -- still a heavily shorted stock. it has been under pressure more than a quarter of williams sonoma stocks. >> nice pop for them meantime, target other story. one of the worst performers in the s&p 500 today after its weak results. we're going to look at whether this is just the latest retailer to feel the full force of the amazon effect. target was down nearly 6% today. plus the "fast money" traders tell us whether burger stocks look overcooked. that's still to come here on helongell. duncan just protected his family

with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.

at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item.

welcome back more earnings from retailers it's l brands this time. how did they do? >> hi, kelly looking like a different quarter than williams sonoma had they reported on may 10th their revenues $2.63 billion for the quarter. also a 3% comp gain led by bath & body works victoria's secret up 10% they lowered their eps guidance in a range of 30 to 35 cents and for the full year 2018 in the range of $2.70 to $3 that's hitting the stock down around 6% right now. and for the year it's down more than 40% back over to you >> ouch. kate, thank you. down more than 40% this year >> very ugly chart the market saw this weakness coming incredibly competitive area. >> wow okay another 6% there for l brands. a volatile day for shake shack

too. they got a downgrade this morning. up next "fast money" traders tell us whether they're ready to flip into the burger stocks. plus, is target's plan to better compete with amazon hitting the wel scs ghhe 'ldiusrit re on "the closing bell." kevin, meet your father. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

i thought after sandy hook, where 20 six and seven year olds were slain, this would never happen again. it has happened more than 200 times in 5 years. dianne feinstein and a new generation are leading the fight to pass a new assault weapons ban. say no to the nra and yes to common-sense gun laws. california values senator dianne feinstein

welcome back the nasdaq was the big gainer today. it was nearly 0.2% higher. meantime the dow hung onto a 52-point gain there. s&p up about eight points. russell up just a couple still it's been a stalwart lately. time for a cnbc news update with sue herera. >> hi, everyone. here's what's happening at this hour iran's top leader set out seven conditions for tehran to stay in the nuclear deal with world powers they include steps by european banks to safeguard its trade and the ayatollah also said european powers must protect iranian oil sales from u.s. pressure and continue buying iranian crude. they must also promise not to seek new negotiations on iran's ballistic program. in a speech on long island, president trump speaking out on

immigration and gang members >> i called them animals the other day, and i was met with rebuke they said they're people they're not people these are animals. and we have to be very, very firm >> a federal judge ruling that president trump cannot block people on twitter for political views they expressed calling it unconstitutional and a violation of the first amendment the justice department says it disagrees with that ruling and will consider its next steps you are up-to-date that's the news update at this hour back to you. >> sue, thank you. i got to say, mike this one almost makes me laugh it's got to get overturned >> i don't know. i was aware of the case. if in other ways it's being defined as, you know, essentially public statements of the government >> so is it just because it's

the president? >> no. that this is basic communications from the government >> go ahead, sue. >> no, because he is the president but it is under the -- his office that's the part of it. mike's right it's because he holds the office of the presidency. even though he isclaiming it i his personal twitter account, it is used by the office of the president. >> i mean, i kind of -- look if it was from @the white house, @the president and that was used over -- >> sometimes they are the ones tweeting >> and it's real donald trump. >> you have the white house spokeswoman who has repeatedly said that's what -- the president's position, he said it on twitter >> i wonder -- >> a citizen can't be denied visibility to what the government is saying or doing. >> i guess but it's publicly available even if -- >> if you're blocked you don't see it. >> how is it different from hanging up on somebody

>> i think mike's point about the fact that frequently other individuals who are employees of the government within the administration use that twitter account even though it says @realdonaldtrump, that makes it part of a government communication. >> yeah. no, i -- it's fascinating. >> it's fascinating, isn't it? >> i am shocked they ruled this way. it's a really good story sue, thank you very much >> you got it. it's not over yet. >> no, it's not. it's not in many ways, just beginning now they're going to have to change how the handle the account right now. anyway, we got to go shares of shake shack down today after downgraded to neutral. "fast money" traders pete najarian and guy adami are here to discuss since i took your time talking about the trump twitter feed,

guy, you have about two seconds to tell me. >> we chat i said pete, tell me what burger you want what i want, whopper no tomatoes. >> i'm going to in n out burger. >> shake shack i see what they do downgraded on valuation. it is a concern. but they know who they are red robin is a tweener shake shack, big valuation, big growth overseas. i'm in the shake shack trade >> you know who knows what they're doing? mcdonald's he has changed everything. mobile ordering. look at delivery all the growth story going on with mcdonald's. that's the company to own. and look at that valuation you're going to like it. >> this wasn't even scripted tell you something about twitter. don't block. i don't block. pete y i >> how is that different from hanging up on somebody >> hanging up on who >> anyone. you get a call, you don't want to talk, you hang up

>> he doesn't block. he does mute >> i don't block >> thank you, guys that was very well done. i have to say. >> well done >> ha-ha >> didn't even mean to do that >> there's more "fast money" at 5:00 p.m breaking news out of uber. josh lipton has that story josh >> kelly, some big news just crossing from uber here. the company announcing a new tender offer purchasing between $400 million and $600 million at $40 per share. that would imply a $62 billion valuation. to be clear, kelly, uber isn't raising money here the investment consists of purchasing shares from existing employees. but that $62 billion is significant because uber's last investment valued the company t at -- increased number of shares outstanding. also, kelly, uber right now is releasing its q1 financial

results. let me go through those with you. gross bookings, the amount of money booked through the app that clocks in at $11.3 billion. that is a gain of year over year 4% sequentially. the source of the company to me calling out strength in emerging markets. latin america specifically then we subtract the drivers cut. the promotions refunds incentives that leaves uber with net revenue of $2.5 billion. that's a gain of about 70% year over year on a pro forma basis adjusted ebida loss of -- there is this one-time income item here, kelly, also of $3 billion. and that did lead to this gap profitability in the quarter of $2.5 billion i'm told that does reflect from grab and we also have a statement here from the uber ceo here

saying we are off to a terrific start in 2018 with our rides business beating internal plan and continuing to grow at healthy rates. while we significantly reduce our losses and maintain our leadership position around the world, we plan to reinvest any overperformance even more aggressively this year both in our core business as well as in big bets like uber eats globally. so as he takes it towards this public ipo, he could see big opportunities here and he plans to invest accordingly. >> thank you a lot of news out there on uber. we have both information about how its financials are looking and about what the valuation is based on this tender offer >> i don't know if there's th this -- they are tidying up the investor base. if you don't want to wait around for the ipo coming up. you get that in order beforehand obviously momentum still on the top line on all that i think all that's going to

matter when it's time to go public is what's the path from today to cash flow profitability, right because you can't just be subsidizing this business, you know, off into the horizon forever. it has to be, you know, improving steadily to the point where you can see the scale of the model start to work for profits. >> could see your point. they're still growing revenue 70% year on year that's the kind of early stage growth investors do like to get in on. >> the net take is, you know, what was it up 7% or something like that? >> they said their first quarter loss halved from a year earlier. >> that's the direction you want it to go >> their bookings, 11.3 billion. also up significantly. even though company is starting to feel a little bit mature, financially it is not there yet. >> well, not on the bottom line. the top line, it's vastly bigger than any ipo you can imagine i think -- what did facebook come public? but a billion dollar net income run rate they were making a billion dollars in profits a year by the time they had gone public.

>> about $62 billion in the valuation now. there were at one time thoughts it could be a $100 billion ipo >> maybe it'll trade there i would be surprised if it got priced there at the ipo. at least knowing what we know now. and remember facebook was looking for that and didn't go far in the first year. >> they turned out fine. >> vempeventually >> it was a rocky start. that's the latest on uber. destination maternity was waging a surprising battle over its board seats. leslie has been monitoring that for us. >> the votes are in. we'll have more on how some unhappy shareholders were able to bump up the number of women on the board mi uafr e eak. ine traveling hassle with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to

get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. (indistthat was awful.tering) why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term?

my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. a female dominated slate of directors at destination materni maternity. leslie picker has the details. >> more female board members at a maternity retailer might be what to expect when you're expecting. hours ago, shareholders voted to overthrow the male dominated board at destination maternity in favor of a women-dominated one. it's an upset that few were predicting just days ago two unhappy shareholders nathan miller and peter o'malley ran a slat of three women and one man. the influential proxy advisory firm iss encouraged investors

not to vote for the women nominees due in part to their lack of prior company board experience iss declined to comment beyond their report before today, destination maternity has only had three women directors in its 35-year history. one was just voted out and three left in 2011 since then, the stock has plummeted nearly 90% amid management upheaval. and challenges in the retail sector investors should be weary of how small this stock has become even with a 3% gain on today's news, destination maternity's market cap is a mere $43 million. in a statement announcing the preliminary vote count, miller said today, quote, in our view, newly independent voices in greater diversity will be a tremendous asset for the company and we are very pleased with the result of this election. the interim ceo thanked the shareholders for their participation and the outgoing directors for their service. >> i swear i didn't commission the story.

i do have a lot of thoughts about pea in the pod right now stay with us joining us now is tripp miller from gullane capital partners. tripp, first of all, this company is only a $43 million market cap how is it so small what are your hopes for a turnaround here? >> well, we're obviously very excited with the result today. change was inevitable, we believe, here. we're glad when something was inevitable, it became immediate. you're pointing out how small the market cap has become. stock's down 90% if had the last few years. that shows the value of destruction that's gone on in the past management and board of this company i think this is a company that's run for women and it needs to be run by women and so we're very excited to see three new female board members and kceo of the company

we think she's got a plan to execute and turn this around in multiple facets. >> what exactly have they done wrong? just from the outside, i've ordered some of their stuff. it's great it's long, stretchy. i would wear it, frankly, non-maternity. but i never really encountered it before. so what went so awry and what do they need to do to fix it? >> i think the biggest thing that went awry is just their strategy on cost control their sga has been exceptionally high both on historical standpoint and compared to other competitors out there in the retail space they executed very poorly in a competitive retail environment being slow to react to really tail opportunity we see opportunity for them to consolidate three brands which i think is very confusing to the consumer better control their inventory right size their headquarters, their distribution there's a myriad to generate value. more importantly we see a business over the next year or

two could rapidly turn around and produce profits of a dollar or two per share again on a roughly -- just under $3 per share base here. >> and leslie, i know it seems obvious you'd want women involved in the leadership of the company. but it sounds like up until lately they've done okay. >> the cofounder was a woman she founded it with her husband. she sat on the board physical 2011 and obviously this company has faced a variety of challenges that have happened recently. it's difficult to really pinpoint that on just having the men, you know, sitting on the board in management positions at the company. but it's clear that in challenging times especially at a company that they're a large majority of their customer base is women i say majority because sometimes men do pick out clothes for their pregnant wives >> not for themselves presumably >> hopefully not for themselves although there is a movie about that

it would be beneficial according to the shareholders unhappy with the recent performance to have someone in the board room and management position on a permanent basis that understands the vast majority of their customer base. >> mike? >> i guess i would wonder. trip, obviously there's a business that you have argued is mismanaged and as you said, it should by all accounts be a woman-focused management team. and a business would you generalize from here though there is all this research that says female representation on boards and management is correlated with better corporate performance even when it's not necessarily a strictly female customer base. >> i would agree with you. we've been involved in that change at wynn resorts where they just recently added three females to the board in restructuring that a bit against elaine wiynn's wishes we really enjoy the fact they're getting a more representative board with a lot more females

involved at it we use that as an additional example of change being received positively the stock's been up on the news. going back to destination maternity, they're going forward and focusing on their clothing lines. post-childbirth, it's something they really missed and also, too, we had a board and management team. we're excited to see a management team and a board that will want to reinvest in the company. >> i have learned so much more about this company today than in the last couple months thank you very much. trip miller, leslie picker on the story for us >> thank you. >> we did ask iss to join the conversation about this but they declined coming up, big box retailers fighting against amazon in store and online whether they can compete we'll get into that next then on "fast money," the president of coinbase has a majority announcement that will impact the entire krcryptospace. you don't want to miss it.

it can detect a threat using ai, and respond 60 times faster. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it is... the cloud. the ibm cloud. the cloud that's built for all your apps. ai ready. secure to the core. the ibm cloud is the cloud for smarter business.

welcome back tough day for target the shares were down 6% on the bell after disappointing earnings this morning. the release showed extending money to beef up digit tal platform to compete with amazon. for target and other retailers, this is a losing battle. pro forma, bill simon,former president and ceo of walmart u.s. welcome to you both bill, let me just start with you. we've had a lot of retailers do nicely in the last couple days as the season gets under way how much of this is a problem for target how much is they are a victim of retail landscape and environment now. >> i like target i think target did what they said they were going to do they had very strong traffic that's encouraging very good same-store sales and

e-commerce ne struggled on the bottom line. that's pretty much it. that's because they are investing a ton of money to try to follow amazon and walmart down this path i like them. in the long run they have more runway for a consumer better suited for digital sales so i'm fairly encouraged by their result today i think they took an unfair punishment in the market today. >> liz, do you have the same takeaway >> i think it's tough because the street wants both growth and margin and they can't deliver both they got punished for not delivering growth. this quarter they are punished for not delivering the margin. it doesn't sound to me they have nailed the turning point when they are going to start to see margin growth again. they are calling for it in the back half but i don't think analysts believe them. >> the fear seems to be at least among investors, yes, they are spending all this money. they seem like they feel like

they have to is it just to play defense. >> it absolutely is to play defense. they do feel like they have to seeing them speak recently and they sort of say, well, what choice do we have. their business is built around this idea you go for the toilet paper and get a bunch of stuff you didn't intend to buy discretionary category so i think while the traffic is up and the transaction value is down, that's kind of showing that dynamic playing out where people are buying the more discretionary lower priced items and having to pay to fulfill that order. >> bill, is there a way they could do this more quickly, less costly or should they double down and ramp up and do as much as it takes to get competitive quickly here. >> it's a really good question as i said last week amazon redefined what good looks like it's very difficult for traditional brick and mortar to deliver that kind of growth and still deliver the bottom line

that comes with a brick and mortar business. like i said, i like target target is still delivering 6.1% at the bottom line walmart is falling all the way from 6 down into the low 4s, 4.1 or 4.2 they are both trading profit for digital sales growth if that's going to be the new paradigm, and it seems like it is, i sort of like target better than because they are consumer set for it they need to continue down the path with probably some more aggressive moves than recently i like their acquisition of the same day shipping company. i think that's going to really help them. so they are making some strong moves. >> guys, thank you bill simon, liz dunn talking target a tough session down 6%. a news alert on 21st% fox. >> the latest after comcast said it was in the final stages of

comparing a competing bid for those fox assets of course disney has already said it intends to acquire those. now according to some headlines from dow jones, an activist says he would back comcast assets his tci fund management owns 7.4% of fox. he says he's urging rupert murdoch with comcast on a potential deal and doesn't see much in the way of regulatory risk of closing a comcast deal we are reaching out to mr. haan. hohn for contend as can you see there 21st century fox moving up a little on the news of comcast preparing a competing bid. back over to you. >> leslie, thank you mike, comcast is going for it. new you've got shareholders. in the uk as well, they said you have to consider these other offers and think about which is better. >> i believe the letter made a nod to the fact and people talked about this that the

murdoch family has a built-in preference to get stock in the deal was the capital gains pours tax and cash might be a little bit stiff. all these things have to be considered the market feels like, well, it's going to get expensive for whoever wins it. >> fox shareholders. >> shareholders pretty happy either way right. exactly. depending how that goes. up and about couple weeks ago sat down with the fox board. done in its original form. >> news corp. saying even if comcast wouldn't have regulatory issues, disney probably has fewer regulatory hurdles. >> especially in the uk. it was a volatile day on wall street recap the headlines and after hour movers for you right after this especially t raiinheetl land stay with us

[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.

welcome back here are after hours movers for you. williams sonoma is soaring after they reported strong earnings and guidance shares are now at more than 14% while l brands down on weak profit outlook despite beating its earnings the search for l brands down casey's general higher earlier it had been reported it had a stake or was involved in

the company, then jana denied it. >> market may be an activist we'll see opportunity here we'll bid it up a little. >> lowe's is the darling, jana they are off to the races. so is "fast money. thanks for tuning into "closing bell." "fast money" begins now. >> live from nasdaq market site overlooking new york city's time square i'm melissa lee mete pete najarian, tim seymour, guy adami. just when you thought it might be safe to buy ge shares cratering, stock seeing the worst session in a decade. did any other traders buy this dip. speaking of carnage bitcoin bloodbath, what is behind selloff. brian kelly has clues. later the president of coinbase is back with a major announcement that will impact anyone who uses his