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♪ >> good tuesday morning. welcome to "squawk alley." i'm carl quintanilla, with me is david faber and rick santoli we have this turmoil in europe dow did manage to shave losses in the early going but now down 253 on the dow, 2700 on the s&p. and half an hour we'll find out if the european close make this is better or worse. >> it's hard to say. the banks, i think, pulled the market back down again overall, the s&p has managed to kind of hang on to the bottom end of this really tight range 2700 has been that number. the question is, can the bond-like stocks and tech hold things together today? the market clearly wasn't looking for an excuse to sell

off hard because it could have taken that europe news and done so again, those banks will be in trouble if they don't bounce. >> euro hits the lowest against the dollar since july 20th last year oil down, rather sharply, on the idea that the saudis are the key, as our guest said. >> that risk off muscle memory, working across all those markets. it's funny because a couple of months ago you could have said maybe the u.s. market could use a slowdown feel, right it was talking about overheating and all the rest of it now it's a different conversation. >> happens quickly. >> yes. >> ten-yield 285 k cramer's point was this is it, it benefits large part of the economy taking off that squeeze we were afraid of in the middle of the may. >> it's true that, part of it, without a doubt. yields are down. the market gets to these

equilibrium points if corporate credit holds together that's where we are, i think, summerwise this range has been pretty stubborn for a while now. >> do we ever get to a level, though, where we start talking about the eu before anything else every day and italian bond yields somehow are something that's not a one-year conversation >> i wonder how that breaks exactly. the markets are clearly trying to sequester italy, spain that's always the first attempt. i don't know if basically the memory of how this has gone in the past says okay, we've got to get ready for that playbook again where all of a sudden that's all that matters or if we say look, we went through every one of these it was fine, ultimately, from some reaction from the central banks. it didn't exactly break everything. >> it didn't. >> central banks caught some of those plate. >> that's exactly right. can you count on that again? are we even looking for that right now? are we even geared up to look

for the fed in june to say we're going to ease off the brakes >> the only thing that broke was mf global. >> absolutely. early. early. >> had some things wash up on the beach. but they weren't the big ones. >> we'll watch it, obviously, session lows down 267. starbucks is closing thousands of its stores across the country today for an afternoon of anti-buy as training, follows the arrest of two black men who asked to use a philadelphia store bathroom in april. outside of starbucks, joining us with more on what it means and what the company is trying to accomplish, kate rogers. good morning, kate. >> reporter: good morning, carl. locations like this one will close around 2:00 p.m. for that racial bias training, expected to reach some 175,000 of starbucks u.s. partners or employees. the company said the training is not mandatory for any any partner who wants to make starbucks a more welcoming and

inclusive space. a preview of this training last week each store will receive a tool kit that allows its employees to work together in small groups. there will be video guides included in that it will focus on understanding racial bias and future trainings will focus on all aspects of bias everyone who enters starbucks feels safe and welcome is the goal starbucks said this is just step one. founder and chairman howard schultz out with an open letter, saying, quote, discussing racism and discrimination is not easy and various people have we will also make the curriculum available to the public. the company last closed about a year ago estimates out there that starbucks could lose between $12 to $14 million for closing on this very important afternoon, guys back over to you. >> kate rogers, thank you.

former mcdonald's president and ceo and fat brands, incorporated chairman good to see you again. >> good to be here. >> part of this is the racial bias component they're trying to take care of the other is just how you manage a store when you're calling it sort of the third home, a public space where people can hang out, which is something that mcdonald's has definitely dealt with over the years. how did you deal with that second piece >> mcdonald's and starbucks served the public. and you have to be very aware of what their wants and needs are and this isn't a one-time shot where you close all your businesses and try to train your people it should be an ongoing process every day of training, mentoring, supervising you have to have a system. you have to have systems, processes and procedures and they need to be enforced right down the line. i think it's tragic that starbucks is going to lose

customers today. they're going to lose profit today for training that should be done every day of the week, every hour of the day. and they should never get themselves into a position like this it's a great company with great leadership i think china will be three times the size of what the u.s. is for starbucks but for goodness sakes, let's train our people every day let's educate them every day that's why mcdonald's hamburger university that's why fat brands are training their people daily. it's something you do every day. look, let's be honest, this business about bias is all about common sense treat people the way you want to be treated to have police come and escort out two black men from your facility is unconcionable. ask them why they're there, what they're doing. i understand the need for purchase but if you tell me starbucks is my third place you better expect i'm going to squat there and

look at facebook all day long. >> well, you know, ed, taking your point then, this should be an ongoing process doesn't taking half a day and losing that business, foregoing that business, now sending some kind of a message this is a serious gesture, we're treating this with a level of concern that makes it seem like we think it's core to our brand and what our customers experience >> i think it's great marketing. it's saying to all the minorities in this country, we care about you what about the police officers, the military, the first responders that have been denied service in so many restaurants today because it's not my safe place when there's police there? i think this whole social dialogue that's going on today has brought on a characteristic in this country that's never been here before intolerance is at a peak right now. i think this nonsense has got to stop if you want to close your restaurants to make a statement, god bless. i would never do it. that means i would make a lot of

customers angry. more importantly, about half their system is not closing, marriott, westin hotels. those starbucks are staying open wiechlt? because they've got corporate policy against this kind of behavior and starbucks ought to follow their lead. their licensees are doing a great job and they should follow that with their company stores. >> sounds like you think -- we're in this era where ceos are confronted with political dilemmas or debates and feel like they have to make a call one way or another, that it's impossible to remain truly neutral to all your customers all the time you think there's a way to do that >> absolutely. the world is full of controversy. and the controversies in new york city are different than they are in seattle or hopedale, ohio it's an executive's job to stay strateg strategic, focus on their customers, their employees and stay in the neutral territory.

if you start championing one cause over another, you're going to alienate customers and you should never do that in retail business. >> really quickly, ed, on brand pow power, we were talking about starbucks today but also jab and owning sumtown and caribou how would you kashz the powchare the power of big brands? we cann weaker than ever, stronger than ever >> big brands that have big scale have flexibility to do things that small brands don't when you consolidate a whole bunch of small brands you end up with a giant brand as their parent they'll face the same problems eventually one time mcdonald's owned a great little company but it wasn't in their wheelhouse they couldn't manage it the way they needed to jab is doing a great job i think scale gives you lots of

opportunity and a lot of problems. >> so you think mcdonald's, with its history of chipotle and pret did the right thing in sticking with the core concept? >> absolutely. keep this in mind. everybody looks at mcdonald's a a $100 billion corporation it's not you have to manage the restaurant as if it's a local business, with franchisees who know better how to run those businesses than any corporate employee will ever understand how to run them. mcdonald's has got a superior business model as does starbucks. if i was the head of starbucks right now, i would be licensing a lot more restaurants and get out of the business of running so many corporate stores i would get asset light as fast as possible, and let local franchisees deal with local community issues not a corporation in seattle. >> that's an ongoing trend in

the business, that's for sure. ed, always good to get your insight. you bring a lot to it. thanks a lot ed rensi, talking about starbucks today. >> investors have been focused on the biggest tech companies out there in terms of market cap, amazon, apple, facebook, google, for example. some of them may be missing some of those under the radar tech movers that present real opportunity. dom chu joins us now he looks at what tech stocks have been left for dead here, dom. >> they've taken huge dips they wonder whether or not investors are stepping in to buy some of these stocks because they've taken a turn for their favor. s&p 35500, a handful of them ha hit their 52-week or worse lows just this year in 2018 and a handful of those have gained at least 10% since those recent dip lows that buying could be short

covering or fundamental value dip buying let's take a look at these names. there's a theme to some of the ones they've gained the most skyworks solutions, right-hand side, that dip we saw has moved up by 16, 17% just since those lows we've seen earlier this year another one to take a look at as well is also the chips face and that's qualcomm. as you can see here on the right-hand side of our screen, have rallied back 20, 25% since those lows we've seen. one more to give you the overall scope and the size of some of these moves, advance microdevices amd shares have been volatile over the course of 12 months and a staggering near 50% rally off those lows as we talk about technology, semi tech will be those we talk about. very decent by the dip

opportunities. whether they stay that way remains to be seemed. >> good one, dom dom chu at hq. apple reportedly planning high-end screens for next year's iphones. details on that. plus, we must go back to the moon and this sometime stay. why jeff bezos is going all in on space mele iba ia s ckn mont ♪ it can grow out of control, disrupting business and taking on a life of its own. its multi-cloud complexity creating friction... and slowing innovation. with software-defined solutions, like hpe oneview, you can tame the it monster. hewlett packard enterprise. less complexity. more visibility. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you!

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apple is reportedly set to use high-end screen technology for iphones next year. currently they're only in the ten. one of the main lcd screen suppliers for the iphone, japan display, fell 8%, universal display saw a boost. janus capital danny fisher is with us today as well as roger mcname another rumor about the apple supply chain we're trying to see how much of this we can take to the bank if it were show, what does it say about the direction they're going in an asp basis? >> carl, we're in the later stages of penetration of smart phones everybody is on their second or third one. i think what every vendor is trying to do now is find whatever secret sauce is that will tweak a little extra demand in a given quarter

apple and everybody else have to march along with morris law and deliver better stuff and organic l.e.d. is the thing now. i don't think it will move apple's numbers that much. it will obviously have a big impact on the suppliers, as in this case when they're different peop people. >> danny, when it comes to making a tweak like this, and adding features, coming into line with the industry standard, however you want to characterize whatever apple might be doing with the iphone, does it actually change the potential equation for upgrade rates, for things we look for to say it will bring in new customers or catalyze more people to getting the new one? >> as the market stands right now i think the iphone x was a great example of them adding in oled and it not having that significant of an impact despite all the positives associated with oled, better

resolution, more power efficient. but it's the price point and to roger's point, the high-end smart phone market is pretty penetrated at this point. it's a fairly low-growth market. what i would say, thinking forward, one area where we might potentially see some unique innovation associated with oled is in the concept of flexibility as well as foldability you could potentially see smart phone phones a year and a half, maybe two years from now that look very different than they look today. >> in that they are bendable like sort of the minority report newspaper that we all remember >> yeah. that's exactly right you could see a curve form factor or potentially see we're going back in time and think flip phone but actually foldable smart phones. >> roger, you talked about sort of this pause in innovation.

and big scale innovation over the past few years you sometimes point to phones as an example of that are you seeing any end to that is there some sort of new discovery we could get in the next few years that would suggest to you another step function. >> carl, i think the nature of technology is that once a product gets fully designed out as smart phones have, change is really difficult innovation becomes hard. to me, the really big opportunity will come with 5g. the fifth generation of wireless technology is going to enable a lot of things we don't do today, a lot of which will be in devices other than smart phones. and so i'm looking forward to that and i'm not sure how oled is going to fit into that particular opportunity but the one thing that's really obvious to me is that players like apple will have a very big role and android will have a humungous role how quickly that comes remains to be seen in my mind as an investor, that's no more than a couple of years away

i'm really trying to make sure i understand how that opportunity is going to develop into early days to see if there's anything there that is investable. >> as are we, for sure, on wireless and a bunch of other things. >> papua new guinea will shut down access to facebook for a month to study the platform's impact on the spread of misinformation you've been a frequent critic, roger, of their influence. what do you think this is all about? >> so, carl, i think what's going on now is that countries around the world, who embraced facebook, as we did, without really considering there might be a downside, have seen the downsides and are starting to hit a pause button to figure out what to do about it. belgium did this i want to say it was sri lanka that had a pause a bunch of countries have

threatened to do pauses. i think it's a smart thing facebook has been on this charm offensive for the last month or two, trying to essentially talk its way past a set of really fundamental political and social problems that have grown up around its success and i don't think there's any way to talk past it. i think they'll have to sit down with countries around the world and make fundamental changes because social networking shouldn't be harmful the reason it's harmful is because facebook has pushed the envelope for its business model in ways that are not good for the users and not good for society in general i think this is a fixable problem. i think facebook is making baby steps but there's a long, long way to go and still an attitude change that needs to take place there. >> danny, what's your take on that in the sense of obviously a small example here, but if governments, as they increasingly seem to be doing, view facebook as a problem that

needs to be managed, i guess, does the job no longer stay with facebook of trying to fix these things >> yeah. i think it's a dual effort as roger mentioned, if you think about on the user side, there's just a lot of countries around the world whose companies have watched how elections have played out or how society has been shaped solely through influences on facebook and understanding how that works in the data science potentially behind it is not always an easy task and, frankly, a lot of users just don't understand how they're actually being tracked or what their options are around data privacy or some of these unique issues. i think it also kind of highlig highlights one of the challenges that facebook will have to navigate that's this idea that over time social networks fragment into more concentrated, smaller

networks and you could potentially see a number of governments around the world say we're going to have a local social network and i think to your point, some of the comments this morning kind of suggest that and so that's why it will be encumbent on both sides to make a lot of progress moving forward. >> interesting we look at a long-term chart, that $20 range for all the existential commentary it got it doesn't seem like a whole lot. final story this morning, jeff bezos making a big bet on the moon amazon ceo says its startup will work with an agency to create a settlement on the moon saying we must go back to the moon and this time to stay this is not something we may choose to do this is something we must do he has already talked about the amount of money, personal wealth he is willing to spend on this what do you make of this -- i guess you could call it a

concession of not just him but others, too. >> god bless i'm a big fan of space i'm old enough that i remember the moon landing and i really miss the days when exploration was part of the human mission and, candidly, one of the problems we have in society is that we've gotten very inwardly focused, very consumption focused and have stopped trying to push envelopes for the collective good. i wish governments, societies were the ones leading all this effort but if jeff bezos is what it takes to get this started, i can't wait to see what he can do with it. >> how do you tie moon exploration and human survival are we going to need to vacate the premises >> dude, i have no idea. give me a break. i don't think he does either i think from his point of view, that's how it feels. it gives him an incentive to do this i look at it as a sort of thing this is a guy with more money

than he knows how to spend and here is an opportunity to spend it not only that, it will be very entertaining i assume he'll make money on it. the tv right as loan of going to the moon -- you can imagine 24-hour go to the moon channel it's a big deal. i could see him tying that into prime and next thing you know, he's going to ban facebook on the moon but will have alexa everywhere. >> denny, we all can chuckle about it, but it is a race with real money behind it it's got legal implications, national security, geopolitical implications how do you think about it? >> the way that i think abou it, there is an interesting idea, not just people inhabiting the moon at a lunar space station, but this idea of segregating out the kind of lightweight activities on earth, as bezos has talked about and actually doing heavy industrial

work on the moon so this idea of somewhere out into the future where we could actually optimize for the environments of the moon versus the earth to really protect the quality of life on earth, i think that to me is one of the more interesting elements of how bezos might actually be thinking about this. >> that would be an amazing feat the moon is not an hospitable place. >> the easy, obvious stuff is done the big tech companies have figured out all the stuff that's within region. now it's interplanetary, colonization and delivery of health care. >> the last one may be the hardest of all. >> i hear health care on the moon will be unbelievable. and we'll mine a lot of things wilbur ross, commerce secretary, very focused on mining moon rocks. >> gas station on the way to

mars. >> cashless. >> to fr oled screens to intergalactic travel, thank you. >> always a pleasure to see you. see you soon stocks across the globe. we'll bring you up to speed as european markets close

europe is closing right now. we'll see if it gets more interesting. seema mody is at hq with the european close zbla deeply divisive election campaign in rome and the prospect of a euro voice with his pick to be interim prime minister after rejecting the populous choice. goldman sachs saying it doesn't see the situation in italy calming down any time soon

you're seeing the banks under pressure, bigge esgest loser ar the amount of sovereign debt held by italian banks. according to jeffries, almost 11% of the italian banking sector balance sheet was comprised of government bonds in april, up nearly 10% from the end of november 2017, the highest figure reported since august of last year. speaking of government bonds, the italian two-year yield surging to its highest level in almost five years and the italian ten-year yield at levels not seen since march of 2014 it doesn't stop there. yields also rising in spain, where prime minister faces a no-confidence vote later this week and portugal seen as another at-risk european nation, yooer yields rising there as well. the euro now at lows of the year, 1.15 against the u.s.

dollar moves in currencies also reacting to this potential political risk in poland, hungary, swiss franc falling as well turkish lira, the country overnight unveiling new measures to defend its falling currency seems to be slightly working basically flat, though, in today's trade. back to you. >> seema, thank you very much. lot going on as stocks trade at their lows right now sue herrera has the nbc update receiving an official residency permit, first step toward french citizenship after the 22-year-old migrant from mali scaled the facade to save a boy who was about to fall from a fourth floor balcony

unbelievable the state department releasing its annual report on international religious freedom, especially critical of north korea, which it says has imprisoned as many as 120,000 people for their religious beliefs. >> the united states will not stand by a spectators. we'll stand in solidarity with every individual who seeks to enjoy their most fundamental of human rights american cancer society says fewer women are being diagnosed with ovarian cancer. those rates have dropped by 29% since 1985 deaths from the disease have also decreased by a third. researchers are citing an increase in the use of oral contraceptives for part of that. that's the update this hour. i'll send it back to you former exxon arabian joins

us dow down 275 "squawk alley" is back in a moment i'm april kennedy and i'm an arborist

with pg&e in the sierras. since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees

can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. gas prices have been on the rise hitting their highest level since 2014 not just creating a challenge but those for behind the wheel like uber and lyft drivers

josh lipton joins us. >> $2.79 national average. we checked in with uber and lyft drivers who say those rising gas prices have become a real headache. >> san francisco is the worst. it's almost $4. >> i spend like $80 for a day. in this car i only get 300 something miles and i drive about 500 miles when i'm doing like a day, like 500 miles a day. >> i drive more. for me, in one good day i need to make 25 rides and in new york i need only 15 rides because here, the gas is too expensive. >> both companies say they do what they can to help drivers out. uber provides an uber visa debit

card that offers cash back rewards for gas. lyft partners with shell on a fuel rewards program that gives drivers discounts, too the bottom line for both companies here, drivers are not employees. they're independent contractors. as such, they're responsible for shouldering their own operating costs. chief economist co-authored a research paper claiming that drivers earn on average $18 an hour before expenses reducing those expenses is one way these companies can help to try to compete for drivers for example, lyft recently announced it will invest about $100 million around 30 support centers where drivers can take advantage of oil changes and basically vehicle maintenance at a discount guys, back to you. >> josh, thank you very much interesting angle on all of this could be a different story in a few weeks as we take a look at the broader oil market this is morning. prices extending their losses. wti crude under $67.

this as opec and russia reportedly considered boosting oil output in the coming days. jerry bailey currently the president of petro tech. good morning, jerry. >> thanks for having me on. >> sure thing. the market had this right, to anticipate pretty significant supply response here from the saudis and russia, in large part due to geopolitical concerns >> the right word you used is geopolitical concerns. the market is rightly looking ahead for this sort of thing i call at the wall street casino people use that name before. definitely the impact that saudi would have and russia to increase primarily for the back field on losses we may see from iran and also from venezuela, yes, the market is reacting to that i was surprised that there was such a drop but i think that will swing back around. >> you say you're surprised at

the magnitude of the drop so far. do you think that means that crude prices can stay in this range? it wasn't that long ago we're hearing that the saudis wanted $80 oil globally have priorities shifted or is it basically just a gut check for the markets? >> i think it's just a short-term reaction. i think we will stabilize on this and, yes, i've been on record as saying just in the last week, actually, i was on wall street talking about that and i think we will see $80 as a reasonable target. i think we'll stay in the $70 $80 range. there's so many political things happening all at once right now. i think venezuela is about to collapse and that's going to put oil back just in the last 24 hours, there's been more unrest in libya. libya contributes maybe $1 million a day. any unrest that continues there has an effect. italy is in the picture.

the iran yan thing, i think the administration did a great thing of putting sanctions and i think pulling back on the agreement there. but it's going to impact the markets but saudi can backfill some of that the uae can do it. a lot of that oil there goes to china and to india there's still going to be oil sneaking out in one way or another. but overall, i think we will stabilize back up above the 70 level. >> we're still talking almost entirely about the supply side of the equation. obviously we've seen weaker economic numbers out of europe stock markets and emerging markets have been a little weaker are we still able to say that demand is perfectly fine, it's going to stay sturdy >> i think the demand is stable. of course, as we always like to say with the summer driving season coming in the u.s., those sort of things will enhance the level. but i think it's going to stabilize. it's good for the u.s. production opportunities

the big gains that we're seeing in the basin, i think this will give more interest to keep producing there. all these things that you say it's a supply matter, we've got high stocks right now of crude oil and products but those will wane. and i think the prices slud be able to come back up again. >> and at what price do we have to worry about even in the u.s. people stop pumping so much. >> the consumers haven't really gotten used to this sort of thing. i don't think it's quite the deal -- i go back so many years in my career where you have changes that were very large i think now people are more used to seeing these ups and downs in the prices but at the end of the day, we need the energy. we need the products so we have to keep producing and we're going to keep using. unfortunately, certainly too much of energy is wasted

that affects prices as well. it will hurt people for a while but i think they're used to absorbing this. >> jerry valley, thank yinjurjey much. >> thank you for having me on. >> dow is down session lows 355 now. we've fallen pretty decisively at 2690 and change we'll get more as the dow continues to fall. >> well, i'll tell you what. you're not going to be back anyway moment. because it's my moment and the italian bonds are having their moment with the marketplace. the word is don't worry about the italian paper. s, doesn't really mean much. ye it does we'll talk about it after the break.

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we'll continue to follow the sell i don't have of the banks. >> thank you, scott. >> let's get to rick santelli and the santelli exchange where he has a lot to talk about. >> italian bond market is the fourth largest in the world, largest in europe. they're currently in the neighborhood of 130 to 135% debt to gdp we all know that moral hazard was a big term coined during and after the great credit recession and what it means, quite simply, is that if you live off of debt to the point where you don't have any reforms, that there will be issues and those issues are real apparent now that the market is pricing italian paper. you may be asking who was in control. pretty much the ecb. this morning with my guest peter tchir, i tried to draw an analogy. after the credit crisis, certain paper received preferential

treatment from regulators. in the u.s., for example, if a bank had certain set-aside requirements, the paper, the securities that will satisfy those requirements were designated early, part of dodd frank, and it was changed. treasuries, t-bills, sovereign paper, of course mortgage paper but added just last week were munis. the reason i bring that up as an important analogy is that designation immediately allows it to get high collateral value and sit on the books, the same type of treatment for the southern economies of europe by the ecb. preferential treatment in terms of what in the accounting they were marked against when they held securities or the securities ecb owned those securities were pegged at a value that were not market realistic, as we're now seeing, just in a couple of weeks we've

seen their two-year go from negative to highly positive and we've seen their tens and their entire curve have a rather dramatic effect on our markets right now our ten years are down 11 basis points, our twos are down eight basis points. as we see effect because it's hard to quantify how much is being exported from italy hit our market, it's going to have an effect on policy, the yield curve, and how many more tightenings we can put in. the important thing we're not hearing is what is a solution. but we're hearing talk of a solution that was proposed in the past euro bonds basically bonds that are from all the countries that are issued by one entity and those pieces of paper, of course, can be sliced and diced if it's something that would be corrective to the condition we have today think our mortgage securities. put a little of this, a little of that and make the entire security somewhat investable but no matter what course we pick, we have to do something.

the effects everybody is ignoring are getting harder to ignore carl, back to you. >> rick, thank you >> when we come back, tomorrow marks the beginning of the coat conference that kicks off tonight we'll get a look at the heavy hitters on deck later in the week "squawk alley" is back in a moment with the dow down 370

recode's annual code conference kicks off tonight in

california this year's speaker lineup includes sheryl sandberg, alibaba's joe si, and there's always room for surprises. jon fortt and i will be there live starting tomorrow to bring you ceo interviews and all the headlines coming from the heavy hitters on site. brian chesky of airbnb, james murdoch of fox, dara from uber evan spiegel, snap and it goes on from there. >> wow a good group >> good lineup we'll see how many -- and surprises. >> how many come on with questions from you >> or comment substantively on the news of the day. code has a good record you think about appearances by the likes of elon musk and others >> plenty to ask any of those people look forward to that you're not going to be here, though >> that affects you in some ways >> but you'll be on live at 9:00 >> when we come back, box office bust solo stalls as the latest star

wars film falls short of expectations "squawk alley" will be right back after this quicbrk.k ea

the box office this holiday weekend was dominated by a

galacy far, far away, but despite taking the top spot, "solo" comes in well below expectations it took in $103 million in north america over the weekend for comparison, the last star wars film, the last jedi, made $220 million in its debut. i think it's the lowest star wars open since attack of the clones so we're going to watch that and see how it changes, i don't know, the frequency long term of how these things are released. >> and so now the talk is, well, there's too many of these back to back. the bull case for the studios at disney coming into the year was look at this slate it's so crowded with new releases >> it's been a high-class problem. >> yes >> without a doubt >> space out our blockbuster franchises that are almost guaranteed to make money >> enormous amounts. >> dow at session lows europe closed. that was not helpful comments from morgan stanley, the deutsche bank conference, not helpful. the china/u.s. tariffs perhaps

adding to some of that and then you start looking at averages, and now we're looking at the 50-day. >> it gets technical at this point. i think all this stuff plus the treasury yields in swift retreat are hurting the financials, which is really where the pain is today so yeah, we talked earlier the tech stocks tried to hold things together for a little while. has not happened i think that's the issue financials will be an issue for a little while >> russell has held in there along with stocks like netflix and cheg and micron today. >> yeah, micron, as jim was talking about in the first hour, is up today. netflix, i used to do these comparisons, annoying aol comparisons in the late '90s, adding up aol's market cap versus other things. you can do it with netflix now worth time warner and fox, plus $14 billion, but momentum is key. >> another 30% and it's verizon. >> it's amazing. it seems as if it's this resilient franchise you can grab

hold to in any environment for now. >> we'll watch that. people say wait until they add another buck in prices they could clamp down on password sharing and no one would blink. that's the bull case on netflix for sure down 385 we'll watch the afternoon sessions salesforce earnings tonight. let's get to the judge and the half >> welcome to "the halftime report." i'm scott wapner our top trade this hour, the sudden selloff in the bank stocks what one firm just said about the business and why it could have big implications for your portfolio. with us, joe terranova, stephanie link, josh brown, and jon najarian also with us on set, suneeda, bank of america's head of u.s. equity strategy. stocks are lower on political concerns in italy and now the new worry for investors here at home the banks, the xlf dropping below its 200-day movi