quarterly. bear the volatility. that's the way you win. >> is that a bullish call on the ems. >> i'm doing shakespeare today this is one of my better appearances. >> ea, electronic arts consolidated in the last three weeks it is freaking ouflt breaking out >> even melissa lee -- >> melissa >> plounch starts right now. >> my head was shaking the american economy on the fire the unemployment rate dropping to an 18-year low and wages jumps. could this force the fed to get more aggressive about rate hikes? great news on jobs but will growth be derailed by a trade war? america's al ayes firing back on tariff counter-measures. want proof your kids are addicted to their devices? results of a shocking report and where on social media they are spending their time. put down that phone!

"power lunch" starts right now ♪ and welcome to pounch i'm sarah eis eisen. a rally going on wall street right now. dow up triple digits led by dupont, intel, and merck despite these gains it's on track for a weekly loss. the nasdaq is on track to end the week up more than 1% the s&p technology sector setting a record for the first time since back in march amd feeling the surge there. stocks hitting new highs, amazon, tiffanis and tjx treasury yields hitting 2.9% w. that, banks stocks are rallying. the etf that traction them, the kbe on its best day in six weeks. citi heading for its third straight day up. transports are also on the move on track for a fourth straight weekly gain. first time we have seen that for the transports in about eight

months bill, welcome. >> i'm wearing long pants. we begin with breaking news at white house right now. ayman javers, an important meeting is about to get underway >> that's right. we are expecting that kim yong chol of the workers party in north korea will be arriving here at the white house momentarily and will meet with the president in the oval office it's something we haven't seen in about 20 year's time since the clinton administration, a north korean official stepping foot on the white house grounds meeting with the president of the united states. we expect he will hand the president a personal letter from the leader of north korea that's been much speculated about, the contents of that letter. we saw secretary of state mike pompeo meeting with this particular north korean official in new york earlier in the week. this is widely being viewed as an indication that things are moving along for that summit in singapore between the north koreans and the united states, possibly as early as june 12th but we don't have any confirmation that that date is

pinned down or even that the summit itself is pinned down nonetheless we are watch willing a live picture of the south lawn of the white house where we expect that north korean official to arrive shortly and be escorted across the cole made and right into the oval office to meet with the president we will bring you the details. >> that is something ayman thank you for setting that up for us. we will keep our eye on that shot from white house. with us now is tony frado, a cnbc contributor and john harwood. john, the significance of this meeting today, it's great. >> yes, and it indicates, as ayman said, that this summit may be on. now a couple of thing to point out. one, it is a victory for north korea to have an official received at the white house in the way that is going to happen in a few minutes, as ayman said, it hasn't happen since 2000. secondly, i think the administration and the president himself have seemed to lower expectations for the summit saying well this may be one meeting and there may be multiple arc second or a third

meeting. that might take some of the pressure off the idea that this is a make or break attempt by the president to obtain some sort of denuclearization agreement from north korea i think most people who follow north korea don't think that north korea will in fact denuclearize the question is, is there some progress that the united states can make to stop, slow, reverse parts of their nuclear program and it appears he is going to get that shot in june or perhaps sometimes shortly after that >> it really is stunning, tony, as we talk about our top story is trade, and how angry some of our closest and best allies are at us, canada, mexico, the eu, japan, south korea -- the list goes on. and now we are about to witness a meeting, a real diplomatic achievement -- >> yeah. >> -- between a high-ranking north korean official, one of our oldest and worst enemies. >> yeah, look it's good.

i think everyone is hoping for success. i think john is probably right, though, if there is success it's going to be iterative. and as you mentioned there is lower expectations that's a little bit unusual for this president he seems to tend to elevate expectations sometimes but i think that's the right way to proceed in this there is a lot of history with north korea disappointing on commitments and promises so taking it step by step is the right way to do it if we would like to see success and get the north korean peninsula denuclearized. >> in the meantime let's get to the strong jobs report that set the table for this rally on wall street >> we promised you the economy and the jobs cnbc is tracking forecasts of all the forecasting forecasts out there, we have ten

economists chiming in here it is a very strong number, folks, 3.7% for the second quarter. good construction spending and good jobs numbers. what we have is -- this is not a shift upward what this is, the data keeps coming in. and it's confirming their prior forecast so they are not marking it down. you can see we are tracking two-three on request 1 took a jump up call it 3% for the first half of the year atlanta fed high on the street 4.8% but there is a cadre of folks, b of a, moodies gold ring and am hurst at 3.7 that's the median. and berkecalarclays -- lower when the numbers came out, hampton pearson said the private sector is on fire.

average hourly wages are strong, .3% gain unemployment rate falling to the multidecadal low at 3.8% and the labor force -- a tick down to 62.7 over at jefferies another good quote. no holes to poke here. the numbers are phenomenal really, i haven't seen anybody saying stoov you didn't look at this, you didn't look at that, you missed this. everybody is on board the strong jobs number. >> what about the dropout from the labor force? you have to be picky. >> if you have to be picky you can always find something. when you look at that number -- the labor force, the last three months have been lame in terms of entrance to the work force. the you ones before that were strong very volatile. >> any change with the bonds. >> we erased italy it never happened -- not quite never happened the contract was trading at a 90% plus probability before italy. it dipped down to a we ain't

sure it's gonna happen level and now it's back to we are darn sure it is going to happen, 85%. >> this is june. >> thank you very much let's look at the other contracts, looking ahead here. >> i'm more interested in the future. >> i know. what happened, this is the rebound from -- call them the italian lows 79%. now it's back up to 85%. and december now, 19, now up to 29 now a note that contract has traded to 45% probability. we are not all the way back but we are certainly back to a i think it's going to happen probability. >> the growth estimates, the gdp estimates, when were those conducted? when were they put out >> we put it together everyday when there is a gdp -- moving number. >> so the tariffs are in there >> the tariffs >> that's a great question. >> i want to ask tony about that. >> i read a dozen tariff reports from economists. nobody thinks it affects today,

this quarteror next quarter. it's down the road to the extent it stays at the current level the impact is minimal. the concern is if it escalates from here. a $50 billion on the chinese retaliatory tariffs back and forth. that's what they worry about but those tariff numbers are not affecting current tracking estimates, bill. >> tony, what do you think about that >> i think it's right. it's not the kind of thing that's going to have a sharp immediate impact just because they are going in place. each one of these tariffs, even the retaliatory tariffs are going to affect micro sectors of the economy. it may have an outside political impact in those sectors, especially with commodities but not for the macro economy, except for over time if it impacts investment decisions by firms and we know that that's happening a little bit people are delaying certain --

if you are going to buy into soybeans for example, you want to know whether soybeans are going to have a china tariff or not. and should you be investing in brazilian soybeans or american soybeans, that's a big question. but it's down the road. >> i talked yesterday to mark zandi at moody's he said if all of the announced tariffs and retaliatory steps occur and are sustained that that will shave about .2 of one percent off of gdp growth. as steve and tony said, not immediately, but if this is sustained for a year or so so there are consequences. >> let me make the stronger argument, the counter-factual one. which is the one about the opportunity lost i was a reporter in russia in the 9'90s the world was opening up the world was getting bigger p/e nationals in multinational companies reflected not infinite

possibilities but hypotension. now the world is getting smaller. what is lost here is the opportunity for open markets or new open markets. >> yeah. >> and the opportunity for the freer flow of goods, cheaper input costs around the world for everybody. so we may not lose -- zandi may be right as quoted by john, .2 but think about what it would be if for example, all of a sudden life was discovered on mars, a large consuming population was there, and we had means of transport to get there proctor and gamble would go through the roof because all of those martians -- >> they have high tariffs there, to some extent, astronomical. >> even if what we've heard so far is negligible. it's the process, right, the bigger picture of how this has gone about and what that says about future policy, our relationships with our trading partners, and that could spiral. >> yes it's damaged our relationships with friendly countries.

it could escalate. in fact, zandi says where you get into the real heavy-duty economic damages is if they follow through on this threat to level national security tariffs of 20% on imported cars. then you get market reaction and investment pullback as a result of the market reaction that's how it could get really big. it has events each in the short-term. >> excuse me, steve. we want to go straight to the white house. one of kim jong-un's top aides is arriving there. kim yong chol on envoy from north korea dispatched there to deliver to letter to president trump. they are hoping to get the summit that was scheduled to take place on june 12th back on track. >> not exactly a photoon just now. >> no. >> out he came out of the car and into the white house. >> quickly brought into the white house. >> ayman javers, i think you are standing by. what kind of energy are we feeling there at the white house about this i know the president has already

said he is anxious to see what's in this note >> yeah, our understanding is that they are going to walk directly from the white house across the cole made just to the left of door you saw him going in there and then in to the oval office we might see the north korean official going into the oval office in a moment from that shot f they let us keep this shot of the south lawn this happened without a whole lot of notice. you can see the cameramen now running over toward the rose garden where is rose gar ten is. you can get a sense of how fast this is moving at the white house. we didn't have a lot of notice we knew kim yong khol was coming to the president threw see the rose garden and the cole made coming into the

view there the oval office would be just to the left of the camera as we are looking at this picture right here this official is somebody who was the head of the reconnaissance general bureau from 2009 to 2016. that makes him north korea's former top spy now he is walking across the cole made at the white house and into the oval office where he is going to deliver we are told this personal letter from kim jong-un. you can't see in the picture whether we can see whether he is holding a letter or not. it's not clear whether the white house will make the contents of that letter public or not. but there he is walking across the cole made. the oval office just to the left of the picture there >> are they going to come back out for a photoon afterwards do you know? >> we have not been given any indication there will be a photoon beyond what we just saw. this is not an area where reporters generally have access to they allowed the cameras out now you see the cameraman zooming in

through the windows you can see the resolute desk and the president of the united states generally sits there we are trying to get a shot to see if we can watch what is a historic moment here this is something we haven't seen in 20 years' time the summit between the united states and north korea is seen as positive development. we will have to wait and see what's in the letter. >> speculating what's in the letter it comes eight days after president trump released publicly his letter to the north korean leader in which he sort of tersely called off the meeting on the attitude change from north korea just wondering if this is meant to be a response to that, as a sort of cancel and flirt with the idea of doing another meeting on june 12th. >> yeah, this is meant to be a response to that every deal here in terms of protocol is going to be scrutinized heavily. one thing i noticed just in

watching these pictures is that john kelly the white house chief of staff as you see the reporters scrambling to reposition, but john kelly, the white house chief of staff was outside the entrance to the white house on the south lawn waiting for kim to arrive. i didn't see any other u.s. officials there. that might be remarked upon. people will scrutinize exactly who met him, exactly who walked him in all of that is delicate here because both sides are on high alert for any offense, any sleights, any indication this is not being met with the utmost seriousness and respect. all of this will be watched very, very carefully in terms of what it pour tends i would imagine if the white house is pleased with the contents of this letter it could be translated if it is a not in english already and put out for to the press for the public to digest >> presumely the premeetings went well. otherwise this momentous

occasion would not be happening. >> exactly right it's done on a threshold basis it's not clear that this is the penultimate meeting, the last meeting before the summit. but this is an issue who is widely viewed as kim jong-un's right hand man, somebody he depends on entirely to help run the country of north korea this is about as high level as it gets without having kim jong-un himself in the oval office this is a big deal diplomatically. >> tony, just in the last week or so you have had the chinese president say now is the time if you want to make progress on this issue and finding peace this the korean peninsula. now is the time. president moon of south korea of course had that impromptu summit with kim jong-un over the weekend. there is lot of pressure to get this done sooner rather than later right now. tony >> yeah, the big question is of course, what is the exchange between the north koreans and the americans and our allies in

the region, south korea and japan, in order to get a deal? we are not clear on that at the end of the day, a negotiation is a give and take we know what we want we want them to give up nuclear weapons and their ballistic missile program. but what are we willing to give in exchange? and that's going to be a big point of contention, including with some hawks here in washington who don't want us to give too much to the north koreanss >> you have got sanctions that you can give back. you have got the promise of a political future for kim jong-un. >> security. i mean, president trump sort of laid it out a little bit. >> exactly. >> that's going to be the biggest peace, his security, the security of his family and his, you know, safety in running that country. so remember, this is -- you know, we want this to go well. we are treating each other really well. these are not nice people, not good people. and there have been some things that we consider crimes against humanity that his regime has done to his people in north korea. so it's not easy to just give in

to -- you know, to his need. but that's what makes all of these negotiations with these kinds of countries very difficult. >> our people as well. i think of otto warmbier >> john, historic, highest ranking north korean official to me with the president since the clinton days there was optimism in the air in those days as well give us historical perspective and shed lied on how far apart we are at this point despite the progress this administration has made >> i think it's worth keeping in mind we have been here before with north korea it's been a while since we have had a meeting of this kind and certainly we haven't had a u.s. president meet with the leader of north korea. but they promise to denuclearize before in exchange for economic incentives they lied about that they violated those agreements and so there has been a little bit of charlie and the football on this. so the question is what do you

realistically hope to achieve? is this simply a ice-breaking photo-on kind of summit as opposed to a summit which expected to come out with a detailed denuclearization agreement. i think the latter is pretty unrealistic. as tony indicated, this will require a lot of preparation and a lot of negotiation but one of the virtues of lowering expectations is that you can say, yes, we met, we started the process. and people may not be so disappointed when you are not able to come out and say, yes, we solved the problem, which is what the president had sort of raised the expectations he was going to do initially. >> ayman, i know you weren't given a schedule of any kind there is the day book every day where we get a minute by minute schedule of what the president's day is going to look like. but this seems like an awful long time for a hand-off in the oval office right now, doesn't it >> yeah, you would have to imagine that some words are being exchanged between the

president and kim yong chol here also, the other question here, you have got an official who was the top spy in north korea, a regime that is hostile to the united states is whether there are security precautions being taken inside the white house we saw that walk across the cole made do they need to do anything in terms of extra security before allowing him to walk into the oval office, before allowing him access to the rest of the west wing not clear what measures are being taken behind the scenes. and itwouldn't necessarily be clear to us. and they would want to avoid anything that was embarrassing diplomatically to the north koreans by having a visible security here. they want to very much be seen as having a high-level interaction among peers here and not somebody they are afraid of walking around the west wing still that might explain some of what is taking place in terms of a delay. it's not clear how long this is going to take. whether we will get much if any

indication at all other than the reporters being shoed off of the south lawn that might be the only indication we get that this is over with. >> kim yong chol faced u.s. sanctions because of his role in the military actions against south korea. he was granted a waiver prior to this visit to new york and now to washington, d.c tony, this is historic stuff here >> yeah. exactly right. you hit the nail on the head i mean, these are -- we have very real issues with not just the regime as a whole, but very specifically, individuals that have been sanctioned that's what makes this whole process so complex in order to get to solutions but you know, look, these are always difficult negotiations. if it were easy it would be done already. to john's point, i was in the white house ten years ago when the north koreans blew up theion

hap nuclear reactor as a show of their commitment to denuclearizationing. here we are ten years later not just in the same plant but in a more advanced spot for north korea. >> they blew up another plan this time, too. >> exactly, that was a testing facility. >> i wanted to make an additional point of the i did see a headline before coming out to the camera indicating that this letter was not expected to have either inflammatory rhetoric or any big signals of concessions on the part of the north koreans. we'll see whether that advance leak proves to have been accurate but that was itself a bit of a expectations-lowering news story. >> i would be surprised if the letter hadn't been read over the phone to the white house before coming in, also. you know, because you don't want any surprises and fumbles and things like this. >> good point. i was going to ask tony, how you would judge, if we do have a

meeting between the two leaders of the u.s. and north korea. how you would judge success. the u.s. wants complete denuclearization and it's unclear whether north korea is prepared to do that. >> i think a discussion of denuclearization has to be on the table. i think that's a concession that the north koreans have to make and success for an initial meeting is the commitment to keep talking with denuclearization on the table as you get closer to what the -- you know, what the saddle point of an agreement might be between the two countries. but for america, for south korea, for japan, denuclearization has to be on the table or you cannot have talks. what that means, though, is for these early talks are just talks, are ways that that might proceed, and what the united states and our allies might be willing to consider in exchange for that commitment. >> ayman -- >> remember, guys, the

denuclearization from the north koreans' perspective may also embrace the removal of the american nuclear umbrellaet proing south korea as they define it they might say yeah we will do away with our nuclear weapons if you do away with the nuclear threat over us in defense of south korea. >> i know, ayman, it was tough -- we were looking at the video a few minutes ago of who was escorting him to the oval office here. who do you think it would make sense to have in that meeting? secretary of state pompeo, and the national security adviser. i would imagine they would want to be there as well, don't you >> sure. we get a detailed readout from the white house i would imagine about who it was interesting that it's john kelly, the chief of staff here, escorting kim yong chol into the meeting and not other officials. john bolton the national security adviser might be a more provocative choice to do that escort john kelly arc former marine

general what might be widely respected in north korea you have got to look at the lengths of these talks there is an old saying in diplomacy, talking is better than shooting. diplomats don't mind extended talks, extended periods of talking. it beats the alternative, an allout shooting war. in this case, you don't want that with nuclear weapons in the countries. does the president want to fish or cut bait here is he willing to let these talks extend for some period of time beyond june 12th in order to get to a summit that has the historic outcome that he wants or is he impatient and starting to think if the north koreans aren't willing to do this right now, are they ever going to want

to do it. in the meantime we had a good rally today if you are just joining us, the strong jobs report kicking the new trading month off with a bang today's move building on may's big gains. with trade war fears back in the spotlight what should investors be doing with their money from here joining us, katie nixon. and rod smith. let me get this straight yesterday we were wringing our hands over trade concerns because of the tariffs being imposed. down 300 points. today up 250 on the jobs report. what should we be worried about or encouraged by katie >> i don't think the trade worries are off the table. i do think the jobs report was an affirmation that the economy continues to grow very well and the fundamentals continue to be quite strong here. and we are still really positive ontaking rick here for investors. we wouldn't read too much into some of the trade concerns that are certainly in the air and rightfully so. >> rod, what do you think? do the tariffs call into

question how long we can see this kind of jobs market right now that's been so tight >> i think where i would agree with katie is that strategically with this kind of economic backdrop it's hard not to be more optimistic about stocks than bonds and taking risk over a longer term horizon. where i would differ perhaps a little bit is we have a tactical mandate. and we tend the look at our clients in terms of the time horizons and the risk tolerances they have. and we have been taking risk off for our clients who have shorter time horizons and less tolerance for risk with that strategic backdrop not denied our outlook for the year was tug-of-war it was between the tug-of-war between good news on economics and bad news on trades. >> you might be tempted to look at the numbers in terms of the down turns and the rally and say nothing happened this week but you look under the is your

and you still have big cap financials down about a percent still on the week. the post er children of the trae war are down on the week what do you make of the market action >> i think the market is looking at the direct impact now of a potential trade war. and then eventually will look at the indirect consequences. it's really what you have all been talking about this afternoon. directly, the impacts are sort of narrow and deep in terms of increasing costs to -- increasing input costs to some of these big companies and maybe it shaves a couple of tenths off of gdp. but the indirect consequences could be more meaningful in terms of corporate uncertainty. how do you build and grow a business in an environment where things are changing so rapidly where sort of the art of the deal is playing out in real time in a very public forum versus in the condition fines of a conference room it's hard the predict what is going to happen

and be strategic. >> if it's not trade wars sometimes it's the fed that worries the markets. i'm wondering if the 1% across the board signal that the investors are observe with the fed continuing on its policy path here, raising rates pretty steadily until the end of the year certainly the sign from the jobs report is it's an all-clear to do so. >> i think the most important thing about this trade issue is that none of us know the end game the only thing we know from yesterday is that the talks over the last month, while the administration suspended the tariffs on their friends and partners, clearly have not gone well they haven't been able to get the breakthroughs. so the u.s. is starting to play a little "hardball" again and all of our partners have been very clear that if the u.s. plays "hardball," they will play "hardball. everybody is posturing none of us know what the engame is the markets have to cope with the fact -- and ultimately the fed although i think the fed

will wait until it has a clearer idea of the end game and in the meantime be focused on the economic reports coming out. i think we hit the end game, i think the market is stuck in a trading range you. >> didn't really answer the question katie, are investors okay with more rate hikes this year. >> i think it's interesting to see what happened to rate fund futures. yes, the jobs report was great but inflation still remains benign wage gains remain benign and below where the fed would like to see them. i think the fed has an all-clear signal for june but beyond june it's anybody's guess. >> if i could try to recover myself, the market are going to be fine with the fed raising rates if it's because the economy is doing well. >> that's ideal.

>> katie nixon, rod smith, good to see you both. north korea's top aide meeting with trump at the white house at this hour we are actually looking into a window through the oval office we are trying to figure out what is going on. he has been in there -- >> they need to turn the lights on. >> come up to the window and knock. we will keep monitoring and bring it to you as soon as we have it. meantime the fed expected to raise interest rates when they meet later this month. the intoxicate of rising intestat oyo ptfio ahead.n urorol

one of kim jong-un's top aides is meeting with president trump inside the white house.moments ago we saw him arriving at the white house. he is currently as we understand, inside the oval office he is there to deliver a letter from the leader of north korea just for some context this is the highest ranking north korean official to visit the white house in 18 years. symbolism, history, and potentially thawing intentions we know that this same aide has

been meeting with secretary of state mike pompeo and is currently heating with the president. >> i think they have been there about 20 minutes keep an eye on that. >> to the bond market. rick santelli is tracking the action at the cme. >> two day chart tells you a lot with tens. after the numbers were out at 8:30 eastern and the may jobs report was pretty solid we almost became uncharngded on the week settled at 293 just missed it eased up still up three on the day. down four on the week as we sit at 289 open the chart up to early february and you can clearly see the 280s had lots of congestion. the fact we rebounded from the one settlement under that level and are having such a solid close has brought some more aggressive selling on light volume back into the pits. atlanta gdp now, current read 4.8% if you open the chart up, this series out of atlanta goes back to august of 2011.

you can see on that chart, this is the second highest reading going back to that little grouping right in 2011 that had several higher lofty level if you look at the dollar index, it know, it clicked off a 95 trade. we haven't settled there since ju july we eased off today strong jobs report fuelling the debate whether the fed will get more aggressive on raising rates. yields on the benchmark up 20% this year. where are rates going for now? what does it mean for your portfolio? joining us, jeff blacksenberg. does the jobs report change your view on what the fed does and does the corollary to that change your view on where the ten year goes? >> it doesn't. it reinforces the view the view has been that we are somewhere between three and four

hikes. based on the economy, the strength in the economy, the confidence that the fed has in terms of economic progress on both of its goals of employment and inflation. today's report reinforces that probably raises the odds a bit more on four hikes versus three hikes. some sprys in terms of downturn risk like we saw this week might push it back to three. today's news is positive that's how the fed will read it. >> when you are talking about three versus four total likes this year, do you factor this tariffs? >> tasks would be tightening in terms of financial conditions and what the fed might do if tariffs were put in place. >> they might anticipate that and back off the pedal >> i'll push back a little bittan that that tariffs are tightening tariffs are right now a negotiating ploy we can debate where we are on that trajectory, but the fed's going to react to the real

economy impact and there are real economy impacts. there is uncertainty impacts, potentially a pullback in terms of investment and spend. but the fed is not going to preempt that debate. they are going to wait until they see it show up in the data. it's not clear how much that's going to show up if it doesn't show up it's not really tightening conditions so the fed can focus on real data like today's which issing the you about the strength and the resilience in the economy with regards to political uncertainties, north korea, trade negotiations, tariffs. it hasn't quite shown up enough for that to affect the path of the fed. >> yes, tariffs are a negotiating tactic, but now they are also a relate, starting today. and the jobs numbers we are looking at today are ancient history in that regard because they occurred before the tariffs were put in place. i know everything can change overnight. it has sometimes in the past but if they are there for a long enough time, they have to be considered a head win in the fed at some point, don't they?

>> yeah. at some point when you start adding all of the various provisions up, they start to add up and start to affect forecasts. it's foreign to put them in context. individually we are still talking about relatively small portions of the economy. that's not really what worries the market when the worries over trade wars are brought up it's really about how far and wide do they spread? what has been put in place to date is still a very small segment in terms of how much it affects the macro economy. >> one thing that is tightening the economic conditions is the dollar, which continues to shoot higher, whether it's on economic data on risque version, on trade worries, on problems in italy. is that becoming a problem for economic growth and corporate profits? >> it certainly has a more direct kbroimpact in terms of

corporate profits. i don't know it has risen to the level of the kind of strength we saw in the dollar in 2014 and 2015 that got the attention of the fed. remember the conversations around the developments in the international markets and the like that showed the sensitivity of the fed then. the other important point here is that the sensitivity to the dollar in '14 and '15 was because of where we were in terms our economic progress. it was much more tenuous at that point in time. today what today's numbers are is how much we are beyond that much more confidence the dollar strengthening story is going to have stronger for that in order for to it dislodge the fed and the path towards normalization. >> it sounds like you still think there is a place in investors' portfolios for bonds, and specific chi shorter duration bonds >> cross currents there. our focus on fixed income

relative value has shifted to the shortened. we had a significant repricing because of what we just talked about, the confidence that the fedex uds, and the market now believes the fed the discounting of fed policy that was present for a long time present in the shortened of the market that discounting went away when it went away you saw a increase in interest rates one to three year corporate bonds, investment grade, yield 3 to 3.5%. it's the first time in eight years you have been able to get significantly above the level of inflation in that part of curve. it is an attractive part for investors today. >> jeff, thank for your time. >> thank you. so a strong jobs report fuelling the bulls today payrolls soaring, the unemployment rate hitting its lowest level since april of 2000 and then back to 1969 to find the previous time. told me that and wages rising, and black unemployment hitting record lows

as well. could trade truls take the economy off track. >> we will talk approximate it coming up. it's pretty amazing out there. the world is full of more possibilities than ever before. and american express has your back every step of the way- whether it's the comfort of knowing help is just a call away with global assist. or getting financing to fund your business. no one has your back like american express. so where ever you go. we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it.

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with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. one of kim jong-un's top aides meeting with president trump in the white house. they are in the oval office. this is footage we saw moments ago as john kelly escorted kim yong chol into the oval office there. they have been in there for just about half an hour right now his mission was to deliver a letter directly to the president from kim jong-un we are still waiting for them both to emerge out of the white house. as soon as we have that, we will go back to that. >> may unemployment rate falling to historic laws coming in better than expected president trump highlighting some of the key numbers this morning. >> we have reached yet one more historic milestone with 3.8% unemployment just

announced. and another all time record low african-american unemployment, hispanic unemployment. at an all-time low in history. we are very honored by that. and by the way, for the women out there, the lowest unemployment in 19 years >> major milestones there. joining us, marc morial, president and ceo of the national urban league and the former mayor of new orleans. nice to see you, mark. >> good to be with you >> so, mayor, you watched the black unemployment rate. we often talk about it on this program. not too shabby, going below 6% lowest ever since records starting keeping on jobs in 1972. >> the good news in the report is that the gap between the black and white unemployment rate has also narrowed and that's good news let's make a comparison to 1969, which is the last time these

unemployment rates were at that level and at that time, the minimum wage was 60% higher and the rents that the average american paid were about half as high so the important news here is that we still have a tremendous amount of work in this economy to shore up the conditions that working men and women of all races have to confront their paychecks just don't go as far as they went at a time when the gap between the rich and poor was smaller yes, i'll applaud the good news but i want to focus on the work that's left to be done. >> it's tough to link a president to specific economic data but do you give president trump credit for seeing these low unemployment rates >> so a couple of thing. we have had a decade-long period of job growth. and most of the job growth that we have seen happened under

president obama. but i'll give the administration a cup of gumbo not a bowl i won't give him my red beans and rice, by judgment about lia or my red beans and fish, but i will him a bowl of gumbo i want the folk outsidan the work of making paychecks of average americans going farther. because the suffering that not just americans but working men and women of families of all backgrounds want their paychecks to grow relative to the expenses that they have those are mortgages, those are rents. those are bread, milk, shoes for their children we need to confront the continuing challenges that that presents >> on the wage growth there, mark, how are you going to do that >> simply wanting to increase the minimum wage more? or let's face it a tight labor market like we are seeing is the environment you want when you

want to see wage growth. that's when it starts to happen. we are seeing that the wage component of this morning's jobs report, 2.7% annualized that's good right there. >> you see the beginning of wage growth we have got so much farther to do i think congress and the president would do the economy well if in this time period they would raise the minimum wage across the board right now we have higher minimum wages in some states than we have in other states we need to go back to when we had a national standard. if we raised it to where it was in 1969, the minimum wage would need to be around $12. i favor a $15 minimum wage but we could start the path to that with a $12 minimum page wage that wouldn't solve the problems that i have identified but it would be an important step and the time to do it is in an environment that we face today if the we allowed just the labor market to take up what you would

call the average wage, it's going to take a long time. and these americans, who are facing these challenges have waited a long time. >> aren't we seeing that, though, mayor, i mean without the federal government stepping in to raise minimum wage we see retailers then that forc others to do that as well. forc so, there is this happening without the supervision of the federal government it is happening on a grassroots basis simply because the labor market is that tight, no >> let's recall that we've had almost 25 states on their own, basically congressional inaction, raise the minimum wages in their states. you've also had a number of companies who have done it voluntarily. what i favor is a basic national standard for a minimum wage. and i think the market will take care and will adjust wages above that bare minimum. the reason why is if a person works at minimum wage today, for 40 hours for an entire year, they still fall below what we consider the poverty level

so a great nation with a strong economy, ought to have a basic standard for people who work and i think that's not too much to ask. i think that's the way it was in this nation for a long time before we got into this period of political paralysis and partisan bickering >> mayor, it's always great to speak with you and by the way, i'd take just a spoonful of that gumbo >> i have a taste for it now >> i'll send you some. >> thanks. >> we, of course, are keeping an eye on this meeting between president trump and north korea's top aide, kim yong chol, at the white house you saw that live picture there through the window of the oval office as soon as they emerge from the meeting, we'll go back to it the world's biggest cancer conference is getting under way this weekend we get a lot of headlines and stock movers as well we'll tell you the names you need to watch next i have access to the oil markets and gold markets.

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if you're just joining us, one of kim jong-un's top aides is meeting with president trump in the oval office that was just about 45 minutes ago when kim yong chol was being escorted by chief of staff john kelly and other aides to the oval office to deliver that personal note from kim jong-un to president trump

it was in response to last week's note from the president tokim jong-un, canceling the summit that was scheduled for june 12th. is it back on? we don't know. we're still waiting to see if there's going to be any sort of a photo opportunity, if they emerge together from that meeting right there that's taking place, but we will keep you posted as the meeting progresses there, sara meantime, we're looking at a 1% move higher for the markets, number of biotech stocks are in focus as well as the world's largest cancer research conference kicks off our meg tirrell is heading to the conference shortly but joins us on what we should be watching for. >> i'm headed to chicago along with more than 39,000 attendees who are working in cancer research the sheer amount of information that we get at this conference, which is called the american society of clinical oncology or asco meeting, means there are also some major stock moves that come out of weekend. one category investors are focused on are targeted therapies. that area has seen a lot of success recently, and investors are closely watching two

companies over the weekend for an update on saturday. loxo oncology and blueprint medicines, both small biotechs are focused on the same target and loxo's initial data caught investors' attention last week we'll have information next wednesday, including blueprint's on "power lunch. others will have updates in the hot space of immunotherapy we'll get some of the first highly anticipated data from celgene and bluebird bio that news is expected at 6:00 p.m. eastern, guys. >> have we seen stocks move up in advance of the data dump tonight? >> nektar is already moving a little bit today so people are kind of anticipating what's going to happen at the conference analysts are putting out notes and having their expectations for the weekend. so you see some movement >> highest expectations in terms of the type of cancer they're going to be talking about? >> oh, that's interesting.

well, lung cancer has seen a lot of progress recently, both with immunotherapies and then those targeted therapies we talked about from loxo and blueprint. those are across many different kinds of cancer but lung cancer is in that basket. >> very good immunotherapies helping lives. have a good trip keep us posted apple is getting its price stock raise ahead of monday's conference the analysts who made the call will make the case we're keeping a close eye on this meeting between president trump and north korea's top aide it is happening in the oval fi othe white house. the second hour of "power lunch" starts right after this break.

breaking news in just the last hour, one of north korea's top aides, kim yong chol, meeting with president trump at this hour at the white house, delivering that personal letter from north korea's leader. eamon javers is outside the white house, waiting for something to happen there. as we all are, eamon. >> reporter: we don't know what's going on behind closed doors right now as you look at that live picture of the oval office window being shot now from reporters who are being stationed in the rose garden to watch for any departure of kim yong chol and just to brief you on who this official is, he's

said to be the right-hand man to the leader of north korea, kim jong-un. he's also the former head of the reconnaissance general bureau. he was the head of that from 2009 to 2016 he was the head of the top spy organization in the country and he's one of the top intelligence officials in a country that is hostile to the united states, so this is a dramatic moment for the president of the united states to be meeting with this official what we don't know is what all this portends for the summit between kim jong-un and the president of the united states that is at least tentatively still skiddcheduled for june 12h we're awaiting word here on what has transpired in this meeting, what was in the letter that this official brought from north korea to president trump and of course i can tell you that the -- some thoughtful white house officials just brought water to the reporters who were waiting out there in the rose garden it is very hot here in washington today it gets really hot in the rose garden because there's just no wind there, no breeze at all, so that might be an indication that

we could be waiting here for sometime before this meeting breaks up. >> are you getting any indication from the white house as the timing -- when they will brief reporters, if they will. >> reporter: we're not in fact, this entire meeting happened very, very quickly. and reporters were only told a few moments before that we'd have the opportunity to film this official's arrival here at the white house, so not much notice at all. this is a little bit of a scramble the white house, you know, i would imagine, would make some comment after the fact about what happened here and i would also imagine, this is just a guess by me, that if things go well in this meeting, we might hear from the president this afternoon about it he might want to explain what has transpired here and whether this summit is on or off as of today, guys. >> we are left to just think about the minutia of what's going on we were talking about this during the break you can imagine there's a translator at work in there on both sides, and you know, after somebody says something, they've

got to translate so that doubles the amount of time, plus the president has to read the letter >> unless it's a really long letter, probably talking about ov other stuff. i'm wondering how much is being done behind the scenes for this june 12th summit it's not officially on but as we understand, they're prepared that it could happen >> just in case. >> reporter: yeah, look, last week, the president famously cancelled the summit and said that the north koreans had gone radio radsilent they weren't picking up a special phone line that had been arranged between the two countries so what we're seeing today is the exact opposite of what we saw last week, total radio silence last week, now we see a very high-ranking north korean official meeting in the oval office with the president of the united states that would give you the sense that things are proceeding well in terms of a summit, but when it will happen, we simply have no idea at this point. we do know that there's an american delegation that's been dispatched to the dmz to negotiate with the north koreans. there's an american delegation that's been dispatched to

singapore where we believe that any summit would take place, and there's also been talks in new york city and now at the white house. so, high level talks around the world now in terms of the logistics of this summit, physically, where it will be, who will be there, what the room will look like and all that as well as what will be decided between the united states and north korea in terms of north korea's nuclear program and that's the crux of the issue >> any questions all right. go get in the shade, have some more water, take the jacket off. we'll get back to you. thank you, eamon javers there at the white house. get you caught up on the markets. pretty good rally on wall street, fueled by a better than expected jobs report the dow is on pace to end the week in the red. we had a lot of volatility, concerns about italy, concerns about the trade issues, the traf tra tariffs and so forth intel, dow, dupont, they are your leaders ge is the biggest laggard. tech is poised to close at an all-time high. the nasdaq now less than 2% from

a record high. the faang stocks contributing to today's gains, led by alphabet amazon hitting a lifetime high as well today. semiconductor stocks also in the green. the etf, the smh on pace for its fifth straight weekly gain amd, intel, lamb research, they are among your leaders today another big winner in technology today is apple, moving higher, the level to watch is 190.04. that's a railroad close. thank you for sending that out apple's coming off its best monthly gain in nearly five years. one analyst sees another 10% upside from here, raising his price target to $210, which would put the company above $1 trillion in market cap. joining us, the analyst who made the call, steven from ubs. welcome, steven. you put out a survey and that led to the price target raising. tell us what you found >> well, the two are actually a little bit separate. the survey is our ubs evidence

lab twice a year survey. it's probably the most comprehensive on the street. 6,700 consumers across 5 countries and it's actually quite mixed for apple. on the negative side, it suggests that buying intentions for the iphone over the next 12 months are flat to down in most major countries. which is similar to what we found last november and that kind of suggested this isn't going to be a super cycle. the good news is that the mix of products continues to move up. more people looking to buy the iphone 10, so basically the average selling price is likely to continue to rise. the reason that we moved up our price target is that we think that the narrative on the story is beginning to change from purely iphones to more of a focus on a recurring revenue stream and services, which we think over time enhances the multiple >> yeah, a lot of people are talking about that, giving apple more credit and more of a multiple for services business but also stood out to me in your note was you put a line in there about how it could grow into a franchise like a nike versus a

nokia. what'd you have in mind? >> i think in the past, investors have always been concerned about a hardware company like apple, that it's going to be to turn out to be a noek nokia. but apple's been able to create an ecosystem, and while we think that the iphone is pretty mature, we think the good news it's like nike it's a global consumer company, very strong brand, and while there's a few people who will go out and buy the latest michael jordans or the iphone 10, most people just buy shoes when they need them. that's where we are with the maturity of the iphone we think the installed base continues to grow at a high rate and apple's retention rate in our survey continues to be very high so it's when, not if you're going to buy that next iphone. >> on the services note, do you anticipate the mix of services revenues to remain the same? as it is now, most of that revenue comes from the app store and the sale of apps those are mostly one-offs as opposed to recurring revenues. do you see that mix going slowly to the are recurring revenue

side and if so, what does the marginal profile then look like because i would think those margins would be more compressed than on the app side >> that's probably right, melissa. i think you're going to see more subscription revenue over time still the vast minority of what apple does in services the app store is probably close to 40% that's going to continue to be the main driver. but you will see, you know, potentially video and other new services come up our ubs evidence lab also has found that once you get people buying apple services, they grow the number of transactions over 20% a year so the key for apple is to get more people using their services the vast majority of their customers actually don't pay for services, so that's the opportunity and, you know, again, it's not a services company. services is tied to the installed base of hardware but it's very high margin, probably 6 0% gross and it's becoming 20% of the company's profitability so it is a reason to own the stock. >> thank you, steve.

white house pushing back on claims that the steel tariffs have ignited a trade war national economic council director r director larry kudlow explained on "squawk on the street" this morning. >> it's not just autos it's a whole bunch of other industrial products and finished goods, and that includes steel so, i'm just saying, look, let's talk if you read the statements yesterday, we are in conversation this is something of a family disagreement it's a trade discussion, it's not a trade war. it's a trade discussion. >> a trade discussion. joining us, there's grover, he's president and founder of americans for tax reform he says trade wars are wars of choice tariffs are going to hurt americans. is that right? i mean, i guess the question becomes, how long these tariffs remain in place. i mean, they could change on a dime they could be gone tomorrow, right? >> well, this is coming in the wake of tremendous good economic

news over the last year, the economy's growing not at 2% but 3%, the fed has a new gdp now out. they say second quarter is at 4.7% we're looking at some wonderful head winds some wonderful winds in the right direction, helping the economy. there is this challenge, and that is, as we do what larry kudlow says, negotiate katariff down for more market access, more respect for our intellectual property, the bludgeon that they're using in these negotiations is a tariff and that could bring you a lot of -- it could bring you a trade war. >> but let me play pollyanna for a second i mean, the idea here is to narrow the trade gap that's plain and simple. that we have with many countries out there. isn't it possible that that's going to be the result tlu all this >> well, when the united states grows faster than other countries, our trade deficit on

goods are likely to grow up, because rich countries buy more stuff than less rich countries that's not a bad sign. that's a good sign the stronger dollar is a good sign we can buy more things it allows us to buy more things. i think what we should look for and what larry kudlow was talking about is we want open trade. we want to be able to sell into china, into japan, into europe, without regulatory barriers and without tariff barriers. so many of the barriers we run into are not tariffs, but rules and regulations and all sorts of non-tariff barriers. those, we're trying to break down the fact that the rest of the world steals our patent -- >> we're trying to break them down but the process by which it's happening is actually putting up more barriers and more tariffs you're an anti-tax guy tariffs are taxes on american consumers. the u.s. president, the administration just passed this sweeping tax reform that lowered taxes on americans and on corporations why then now do they want to raise them

>> well, as they say, they don't want to. but it is the tool they are using to try and pry open other economies to more open to american trade i understand what they're trying to do. i understand their argument. it is a dangerous tool to use, because you're not in control of how a trade war goes you may have thought you hit somebody on the side of the head to get their attention they may decide to hit you back in the knee. you see the attacks on the american farm products from asia and on particular brands, famous brands from europe when you engage in this kind of trade negotiation, discussion, looks like a war sometimes, you can end up getting hurt and the challenge is there's so much good economic news that this damage may not show up right away >> but grover, do you -- >> i do hope we can get past it. >> the white house, it's almost

machiavellian, the ends justify the means. do you agree with the end goal and you just don't like the means? really, we are in the position to withstand these tariffs to accomplish the end goal. >> well, we are doing very -- the economy's doing well it's getting a lot stronger. unemployment is down employment is up pay is increasing. and a lot of new investment flowing into the united states from american money coming from abroad and foreign money coming into the united states all very good. we can do better we have challenges the rest of the world basically is a lot of piracy going on, our international property from movies to records to software to pharmaceuticals is stolen. one of the things that the president and this administration are trying to get at i support their stated goals of opening up the rest of the world to trade, more openly, as we do largely already, not always. we're not perfect on this.

that's right that's good. the challenge is, when you throw up tariffs, which are taxes on the american people, we're not hurting french people when we put up tariffs we hurt americans pay tariffs. they're a tax americans pay. >> so, given your no-tax pledge, are you going to do something about it are you not going to support, for instance, members of congress who go on board with the administration's new tariffs? are you going to lobby against it >> well, we are certainly in support of, as quickly as possible, not ending up with tariffs on the american people, these taxes. they are de minimus compared to the size of the tax cut, but de minimus is not the same thing as zero and we would like to go to not raising tariffs, period, and move as quickly as we can into serious negotiations the administration says it's doing both at the same time. we've been back and forth. they keep stating that their goal is to reduce all tariffs and all trade barriers

certainly support their goal it's just a challenge when other countries may react poorly and not in the way that we hoped they will. >> thanks for weighing in on the trade tariffs. grover norquist, have a good weekend oochlgt a weekend. and we are keeping a close eye at this hour on the ongoing meeting between president trump and north korea's top aide there's a live shot of the oval office no movement yet. >> i guess we should consider it a positive that it's taking this long if he had just walked in, handed him the monote and walked out again, that's one thing. >> this is the number two guy of kim jong-un, came to deliver a letter from his boss, from the leader of north korea, to president trump. looks like they've been inside talking. >> we'll see if we get any updates and bring them to you. in the meantime, here's what's coming up on "power lunch. what does this historic meeting we are seeing mean and what could come of it we'll discuss that rev your engines, auto sales numbers are up for may the winners, the losers, and the stock, a reaction. casino stocks have been on

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one of north korea's top aides, kim yong chol, meeting currently with the president of the united states right now in the oval office. he's expected to deliver a letter from the north korean leader to president trump, and we're expecting to see and hear from him >> is sometime >> some time >> i bet this goes on for a while. >> eamon javers is there

he said we might hear from the president. let's talk about what could be at stake here. on the historic significance, really, professor, of this meeting, can you talk about that >> well, it's an important occasion, especially for kim jong-un, the fact that his number two man is here in the white house hand delivering the letter you know, there's the unconventional snub, a very discourteous love letter by president trump last week, a bit informal, and then there's in north korean leader. there's a ritual to all this there's a quasi-sacred element, even, in the importance of the number two man delivering to the u.s. president this beautiful, meaningful letter by the great leader what will it say will it lay out a timetable, specific timetable for dismantlement of north korea's weapons of mass destruction? no but it will be full of platitudes, pleasantries, even, perhaps, a statement with respect to north korea's desire

to have a post-summit summit to routinize summits, even for kim to one day visit the united states, perhaps as early as this fall who knows. to speak at the u.n. general assembly all these will be typical north korean fake gestures in an attempt to ensnare, to trap the united states into an open-ended protracted, never-ending denuclearization negotiation process. >> ensnare, professor? do you think kim yong chol can ensnare the united states with this visit i mean, they have been in there for more than an hour, but ensnaring sounds like a process. >> well, they've already done a very good job, you know, just to get president trump impulsively to agree to that proposition, which was conveyed in early march to a summit meeting when president trump said, basically, let's do it before may you know, that was trump's first mistake, and his tendency to continue to underestimate and

patronize north korea is the second mistake will there be enough in this meeting and in the letter to get trump to agree to go to singapore and meet kim jong-un it remains to be seen. but i think so, because trump has revealed his cards soon. he has shown an overzealousness, eagerness, to meet, to make a historic moment in singapore >> professor, i realize this is anecdotal but almost every single korean ex-pat that i speak to about this, especially those who still have family members in south korea, when i ask what their opinion is of what's going on, there's still tremendous skepticism or there has been about the intentions of kim jong-un. but let's face it. they're talking in the oval office now there seems to be an anxiousness on their part to want to have this summit. i still detect a little anxiousness in your voice, skepticism as well how do you feel about this now >> i am very skeptical, because i've been repeatedly knocked

down by the tandem, the duo of reality and history. you know, in 2000, kim j ong-i'll, the fathj ong-il sent a special envoy to president clinton who came bearing the letter and he gave the letter to president clinton and insisted that president clinton agree visit north korea, and then 12 days later, u.s. secretary of state madeline albright was there so i think there are some similarities history is repeating itself. when north korea puts on this dramatic change in attitude, flashing smiles and reaching out to the u.s., the temptation is great to seize the moment and make history >> so there is some hope that the son is different than the father just curious, professor lee, you know, wondering about the logistics of all of this, how much security, for instance, went into planning this meeting,

whether the letter had to be checked beforehand i mean, who are we dealing with, exactly? >> i would think the letter's been read, seen already, and i'm sure president trump knows the contents of the letter but the fact that president trump did not say, don't come, don't bother to come, i don't have the time for it, it shows you that president trump is still engaged, interested in effecting the summit again, will the letter say anything about a full commitment to a timetable for denuclearization hardly but what north korea seeks is a drawnout negotiation process rather than the final resolution why? because with that, north korea will be able to buy time and money to do what it really seeks, which is to further advance its capabilities >> i guess what i was just wondering, professor lee, is we understand this guy was a former spy and just what kind of security concerns there might be with having him in the oval office >> former top spy. >> espionage anything just knowing who exactly we're dealing with and what kind of preparations would have to go

into it. >> well, he's a very well-known entity he's made a name for himself by being extremely rude and aggressive, yelling, and of course from 2009 to 2016, he was north korea's top spy and has been implicated, he's allegedly behind the lethal attacks against south korea in 2010 and the unprecedented cyber attack, hacking of sony pictures entertainment in 2014. and he's been designated by the u.s. and south korea, but he's shown up in the south for the closing ceremony of the olympic games in march and here he is today in the united states so, it shows you that north korea is able to bust any kind of sanctions that the u.s. and allies have put against north korea. >> so, is this a misstep, in your view, professor lee, for the president to receive the top spy? another misstep? >> not necessarily but president trump should not come away impressed or wanting to believe that north korea really means it this time. yes, the son may be different

from the father, but all indicators are the son is worse, worse than the father within six years, he's conducted more nuclear tests. he's killed more people. purged more top people in the government he's conducted way more ballistic missile tests, so one could argue that kim jong-un is worse than even his father >> i got to go, but i'm curious. what would change your mind? what would convince you that they're sincere this time? >> real indicators of change would be to divert, redeploy all those guns, thousands, tens of thousands of artillery trained on south korea, release political prisoners, not all of them, perhaps, but a few hundred, allow koreans divided by the border the very basic freedom of exchange of letters, allow them to call each other. i mean, these would be some more credible indicators of change. so far, i've seen only fake gestures >> and hugs with president moon as well. professor lee, thank you

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trade fears? what trade fears the market's coming back today as investors focus on economic data mike santoli joins us from the new york stock exchange. i think we're tempted to say that but you take a look at industrials and financials, they're still down sharply over the week >> it's not a comprehensive recovery although i would make the case that even yesterday's declines in the market were muted relative to the prior times we've had one of these shocks of fresh new trade tensions in fact, i think we have a chart showing -- that compares the drops on march 1st, which is the president first floated this deal on aluminum tariffs and then april 6th, the aggression against chinese trade restrictions both of them saw sharper drops of 1.3% to 2.3%. this goes along with the idea that over time, the trade issue

loses its power to surprise investors and i think over time, the market has an ability to just kind of digest the potential implications and put them into context. it seems like more of a distraction and a bit of an annoyance than it is a big factor the pattern has been you have one of these volleys out of the white house and perhaps a softening of the stance and the market gets wise to that pattern over time. >> you and i both know there's danger in attributing reasons for a market move on any given day but just this week, though, tuesday, down hard on the italian elections, we were told. then the next day, we're up big. seemingly forgetting about the problems there then the next day, you know, the president imposes -- announces he's going to impose the tariffs, we're down big. and now we're up big today this is the kind of market where it has a very short-term institutional memory, doesn't it >> exactly i mean, the market has been kind of caught in this range and jumpy within the range based on

susceptibility to some of those headlines but none of it has really disturbed the underlying assumption of strong corporate fundamentals and the economy being on good footing so i think all those things fit into the mix right now. trade, it's interesting, because i would argue that if oil went to $80, it would probably have a broader and more meaningful economic impact in terms of a drag on consumers and all that versus what might happen on these tariffs, and so that's why i think, you know, investors don't keep overreacting to the same things repeatedly it probably is going to take something new. >> on the other hand, if you pin a big part of the rally over the last year to a global synchronized economic recovery and this trade protectionism which is rising and becoming a reality and a policy from many different sides is the big threat to the global synchronized recovery, shouldn't that have a market impact? >> right but the big if, sara, i mean, exactly how big an impact can that have? if you're talking about, you

know, sending overseas economies wobbling into recession, i don't think we're quite at that brink right now. yes, all that would matter if that was the one factor that was going to push us out of this expansion. i would argue absolutely but also, let's keep in mind the market's range bound, the s&p is up 2% year to date, down 5%off its highs, taking account of some of these issues it's just not panicking in an ongoing basis, not going down hard and staying down, at least not yet. >> good point. >> thanks, mike. sue herera has our news update >> hello, phil hello, everyone. here's what's happening at this hour the italian premier c onte formally taking the reigns of government at a ceremony in rome outgoing prime minister handed over to conte who was tapped by populist parties to lead italy's new government an uber driver fatally shot a man in a car on a denver interstate early this morning after an altercation the unidentified man later died

at the hospital. the driver was also treated and released from the hospital but police are still investigating what led up to that shooting walmart unveiling a new service called jet black it allows customers to place nearly any shopping request by simply texting the retailer says it combines the convenience of e-shopping with the customized attention of a personal assistant it costs $50 a month and you remember this guy, the 30-year-old man whose eviction from his parents' home drew national attention. well, he finally left the nest with financial help by radio host alex jones. it came hours before a court-ordered deadline michael honked and waved to reporters as he pulled out of the driveway he said his parents said good-bye, more or less they had offered him $1,100 to get out of the house whatever that's the news update at this hour melissa, back to you, bill, i'll see you. >> nightly business report

looking forward to it. >> see you later >> the show of record. you want to know everything that happened in the markets. >> everything. >> in the economy and the world today, nbr join us. >> on pbs. join us. >> shameless plugging. >> totally shameless oil market closing for the day. let's get to jackie at the cnbc commodity desk >> another volatile week for oil prices, today's slide about 2% finishing at $65.81 for the week, a decline of about 2%, 3% on the total week. the session low, $65.63 so testing new lows in this recent range. today, it's not a stock market story taking oil down. stocks are higher. it's a dollar story. the dollar index up. what can we expect for next week it's tough to say because the momentum taking oil down is strong traders say, so you can argue that there's a set-up to fall more. then on the flip side, a lot of people still feel there are reasons to make this a by the dip story as well, guys, so wait and see. we'll see you monday >> thank you have a good weekend, jackie. coming up, a new survey

shows summer hiring is on fire we're going to take a look at exactly where those jobs are next on "power lunch." all right. here's the president with, i presume, the gentleman from north korea, kim yong chol, who

came from north korea holding a personal letter from kim jong-un to the president regarding the upcoming possible summit in singapore. >> secretary of state mike pompeo is there. >> right there >> in the little huddle. >> they had been meeting for a little over an hour inside the oval office, and it's interesting. now they're doing chitchat outside. >> it's -- they're giving us an extended photo opportunity after we've been waiting for so long i want to go to eamon javers, who's been watching the same pictures we've been watching what do you make of all this >> reporter: it looks like a successful meeting i don't think you'd see this picture if the meeting wasn't a success. by my clock, the north korean delegation went into the white house at 1:13 p.m. eastern time so just over an hour inside the oval office and they've pulled those suvs around on the south lawn driveway just south of the oval office itself you see the president actually walking kim yong chol out of the oval office and down to his vehicle. it appears he's walking him all

the way to the car that, to me, is an indication that the president feels that this meeting went well otherwise, you would not see that level of diplomatic nicety here the bull reporters are doing the best they can here to get pictures of this departure and get pictures of the president but this is not an area where we typically shoot these departures at the white house, not an area that the pool usually is able to film the president just sort of wandering around >> we're going to move and see if we can get a better angle here >> trying to get a picture of the president there. >> you would think they would want a good photo opportunity to promote and highlight what appears to have been a successful meeting here. >> reporter: absolutely. this is the centerpiece of the president's foreign policy agenda here. this is a meeting that's enormously important to this white house, but the fact that you're seeing some of this scrambling shows you in realtime just how free wheeling some of this is. and just how instantaneously they have to respond to events this was not a meeting that we got a lot of advance notice about. the white house is working in

realtime and there you see the president of the united states, i believe that is kim yong chol to the left. interpreters, presumably, from both sides also there doing simultaneous translation from the president to the north korean official. and we can presume that the secretary of state is just outside the shot there, i think just to the president's right, who has been meeting with kim yong chol in new york over the past 24 hours or so. and at this point, the president will have seen the letter, and here we see the president. >> very interesting. >> walking side-by-side. >> is there a chance, eamon, that this could be perceived, in terms of protocol, as fawning? >> reporter: look, this is -- when you do these events at the white house, there's always a concern when the president meets with somebody who is not at his peer level, that is, in the a fellow head of state, typically, the presidents of both parties have been a little bit cautious about meeting with people who aren't their exact equivalent overseas and this is somebody

who is clearly the number two in north korea, but here you see the president pausing for a moment to pose for photographs >> family photo. >> reporter: this is an important moment for this president. he is clearly making sure that the north koreans feel like this has been a successful meeting, feel like they've been welcomed at the white house, shaking hands several times now all the way around with the north korean officials and delegation we are told by the pool, by the way, that not all of the north korean officials were allowed into the oval office for the meeting or not all of them attended the meeting, whether they had wanted to or not is unclear, but that some of them remained outside the oval office during this meeting. and now you're seeing a series of official photos being taken so those are official white house photographers there taking those photos and then the press pool behind them shooting over their backs toward the lawn. that's the south lawn of the white house there where you see this very informal but very personable exchange now between

kim yong chol and the president of the united states >> yeah, some smiles. >> reporter: it's a remarkable moment >> smiles on both sides. do we expect to hear from the president at all >> reporter: i do expect to hear from him we haven't been given any official guidance but just -- i would feel like knowing this white house, that if the president feels that this has been a successful meeting, he's going to want to talk to the press about it, explain what they've accomplished here today. the president walking this official out to his vehicle to say good-bye is a very warm and welcoming sign from this white house to a north korean official, so i would imagine that at some point, shortly, we would hear from the president. it's entirely possible now that he walks right over to the pool reporters who are standing about, i would say, about 30 yards from where he is standing, capturing these photographs. they have their boom mikes ready. the audio guys have long arms and are ready to stick their mikes out. >> i was thinking the same thing, although absent that, i wonder, do you know if sarah

sanders' briefing is still scheduled coming up. >> reporter: i don't believe we have a briefing scheduled coming up here comes the president coming our way. >> not heading to the oval office >> meeting went well went very well really get to know you kind of a situation. mike has spent two days doing this we've gotten to know their people very well, and we will -- you people are going to have to travel because you'll be in singapore on june 12th and i think it will be a process. it's not -- i never said it goes in one meeting i think it's going to be a process. but the relationships are building and that's a very positive thing >> mr. president, what's your sense of what the north koreans are willing to do on the issue of denuclearization? are they -- >> well, i think they want to do that i know they want to do that. they want other things along the line they want to develop as a country. that's going to happen i have no doubt. japan is involved. as you know. and south korea's very much involved

we're involved in terms of getting everything -- everybody wants the united states, so we're going to help in the process very much. without us, it wouldn't happen but i think that you see a lot of very positive things, including with china i think you see a lot of very positive things happening with president xi, who has helped me quite a bit with this. so we'll see where it leads. but we're going to be june 12th, we'll be in singapore. it will be a beginning, i don't say, and i've never said it happens in one meeting you're talking about years of hostility, years of problems, years of really hatred between so many different nations. but i think you're going have a very positive result in the end. not from one meeting >> you appeared to question your -- you appeared to question their sincerity in your letter to kim jong-un last week have they gone far enough now? >> well, don't forget, my letter was a response to their letter the media forgot that. you know, the media said, oh,

you had a meeting and then you cancelled. i didn't cancel the meeting. i cancelled it in response to a very tough statement and i think we're over that, totally over that, and now we're going to deal and we're going to really start a process. we're meeting with the chairman on june 12th, and i think it's probably going to be a very successful -- ultimately, a successful process we'll see. remember what i say. we will see what we will see but i think it's going to be a process that we deserve to have. i mean, we really deserve -- they want it we think it's important. and i think we would be making a big mistake if we didn't have it i think we're going to have a relationship and it will start on june 12th >> what can you get done in one meeting? what can you get done on june 12 snt >> this was a very good meeting. this was a meeting where a letter was given to me by kim jong-un and that letter was a very nice letter oh would you like to see what was in that letter how much how much how much

>> can you just give us the flavor of what the letter said >> it was are very interesting letter and at some point it may be appropriate and i'll be able to give it to you, maybe, and you'll be able to see it, and maybe fairly soon. but really, this was a letter presentation that ended up being a two-hour conversation. >> why did it end up going so long >> because we found the whole subject matter very interesting. and because i really think they want to do something, and if it's possible, so do we. >> what did he ask of you? >> i think all we're going to do is be there on june 12th and we're going to see what happens. mike has been dealing very well. they have a very good relationship with mike pompeo, our secretary of state it was actually very interesting, because this was literally going to be the delivery of a letter and it ended up being a two-hour conversation with the second most powerful man in north korea.

>> did he ask about levels in south korea? >> we talked about almost everything we talked about a lot. and we talked about sanctions. >> did they agree to -- >> we talked about a lot of things we really did. but the big deal will be on june 12th, and again, it's a process. it doesn't go -- we're not going to sign a -- we're not going to go in and sign something on june 12th we never were. we're going to start a process, and i told him today, take your time we can go fast, we can go slowly but i think they'd like to see something happen, and if we can work that out, that would be good but the process will begin on june 12th in singapore >> do you believe kim is committed to denuclearization? >> yeah, i do think so he'd like to see it hatcppen he wants to be kafrm careful. he's not going to skprrun and do things but i told him, to be honest, we have sanctions on, we

would not take sanctions off unless they do that but the sanctions are very powerful. you've seen how powerful in other ways you're going to see how powerful sanctions are when it comes to iran you see what that's doing to iran so we have sanctions on, and at a certain point, i'll tell you what, i look forward to the day when i can take the sanctions off of north korea >> did you talk about human rights today >> we did not talk about human rights >> do you expect to talk about it on june 12th? >> could be. i think we probably will and maybe in great detail. we did not talk about human rights >> did you talk about the sanctions? >> yeah, we did. we talked about -- yes, they asked about sanctions. >> maximum pressure over >> it's going to remain what it is now i don't even want to use the term maximum pressure anymore because i don't want to use that term because we're getting along. you see the relationship we're getting along. it's not a question of maximum pressure it's staying essentially the way it is. at some point hopefully a deal for the good of millions of people, a deal will be worked out.

>> mr. president, how would you describe the state of relations now between the united states and north korea after your meeting today? >> well, they're okay. i mean, i think they're good is it like the relationships we have with a couple of other countries? probably not right? but i think the relationship we have right now with north korea is as good as it's been in a long time. they had no relationship under the previous administration. there was nothing. it was nothing they were explaining it was just a nothing. nothing was done hey, folks, this should not be up to me this should have been handled a long time ago. this got to a very critical point. this should have been handled many years ago, not only by president obama but by other presidents that preceded me. this shouldn't be done now this should have been done years ago. >> do you plan to offer to the north koreans economic aid >> what's going to happen is south korea will do that i don't think the united states is going to have to spend. i think south korea will do it i think china -- i think, frankly, china will help out

i think that japan will help out. no, i don't see the united states spending a lot of money you know, we have tlhree hostages how much money did i spend hostages we're very far away. we are very far away those places are very close. that's their neighborhood. we're thousands -- we're 6,000 miles away so, i've already told south korea, i said, you know, you're going to have to get ready and japan also and i think they really want to see something great happen japan does south korea does and i think china does, but that's their neighborhood. it's not our neighborhood. >> mr. president, yesterday, you were concerned -- yesterday, you were concerned about the meeting that lavrov was having with kim jong-un. >> i didn't like it but it could be very positive too i didn't like the russian meeting yesterday. i said, what's the purpose of that but it could be a positive meeting. if it's a positive meeting, i love it. if it's a negative meeting, i'm not happy. and it could very well be a positive meeting

that could happen. that could happen. we talked about it we talked about ending the war, and you know, this war has been going on -- it's got to be the longest war, almost 70 years, right? and there's a possibility something like that -- that's more of a signing of a document that -- it's very important in one way, historically, it's very important, but we'll see we did discuss that. the ending of the korean war can you believe that we're talking about the ending of the korean war you're talking about 70 years. >> is that document been prepared >> we're going to discuss it prior to the meeting that's something that could come out of the meeting i think, really, that's something that maybe could come out of the meeting >> where's china on that >> i think china would like to see a very positive result i have a lot of good relations with, as you know, chairman xi he's a great -- he's really a very wonderful guy he's a man that loves china.

however. he wants to do what's best for china. i think china and president xi would love to see something happen here. >> when you say you're going to guarantee kim's security in the north korean regime's security, how will korean regime, how would you do that? >> making sure it's secure when it's overin, it's over. it's not starting up again they have a potential to be a great country. i think south korea's going to help a lot, japan helps a lot, i think china's going to help a lot. >> how do you imagine that >> it's a complicated question, frankly, but you'll see it over a period of time >> last november, you talked about the great promise of north korea should they choose the company of nations if you leave him in place, is there a transformation >> i think you can and will be successful they are incredible people i think it's going to be a great success. we'll see what happens we'll see you -- we'll see you on june 12th, and i'm sure we'll see you before that.

in the meantime, how is sarah doing, okay? >> have you discussed -- >> i told them, i think you'll have probably others wouldn't that be wonderful if we walked out and everything was settled all the sudden i don't see that happening i see it over a period of time frankly, i said take your time take your time it's going to remain as is take your time one thing i did do, and it was very important, we had hundreds of new sanctions ready to go on them, and he did not -- the director did not ask -- i said, i'm not going to put them on until such time the talks break down significant sanctions, but we had hundreds, we have hundreds that are ready to go i said, i'm not -- why would i do that when we're talking so nicely, so - >> diplomacy - >> i think it's getting to know you meeting plus that could be a very positive

thing. >> the letter, send anything back >> no, he did not. i have not seen the letter yet i purposely did not open the letter i have not opened it i didn't open it in front of the director i said, do you want me to open it he said, read it later i may be in for a big surprise, folks. so long, everybody >> when's the next move on nafta? >> well, nafta -- look, it's been a terrible deal for the united states. people are starting to seeit we lose over $100 billion a year with mexico. we lose many, many billions of dollars with canada. canada does not take i mean, they are restrictive as to taking our agricultural product and other things and, you know, all of these countries, including the european union, they charge five times the -- we don't charge tariffs, essentially, they charge five times what we charge for tariffs, and i believe in the word "reciprocal," you

charge five times, we charge five times of the that's not been done. no other person brought it up. it's going to be done now, so we're negotiating numerous deals, talking nafta, to be honest with you, i wouldn't mine seeing nafta where you go by a different name where you make a separate deal with canada and separate deal with mexico because you're talking about it very different two countries i wouldn't mind seeing a separate deal with canada where you have one type of product, so to speak, and a separate deal with mexico. these are two very different countries. it's been a lousy deal for the united states from day one we lose a lot of money with canada we lose a fortune with mexico. it's not going to happen like that anymore i mean, mexico has taken car companies, a big percentage of them we can't do that and, look, the american worker agrees with me, obviously, the

stock market agrees. look at what's going on with the stocks they are seeing i'm right. if you take the european union and you see the kind of tariff they charge and then we don't, that's called not fair trade i want fair trade. i like free trade. i want fair trade. at a minimum, i want fair trade. we're going to have it for our workers and our companies, and you know what, the other side understands it to be honest with you, they cannot believe that they've gotten away with this for so many decades >> canada is the closest ally, and complaining long and loud. >> allies, but they take advantage of us economically, and so i agree i love canada. i love mexico. i love them. mexico's making over $100 billion a year, and they are not helping us with our border because they have strong laws and we have horrible laws. we have horrible border laws they have strong laws. they could solve our border problem if they wanted, but they

don't want to, and when they want to, i'll be happy i think we'll have a good chance of doing some great trade deals that will make america great again, right that's what we are doing america has picked up -- we made about $8 trillion in value since -- you know, we're double the size of the economy of china. we picked up a lot of value, a lot of wealth since i've been president, more than $8 trillion that's a low number. we're talking stock market and beyond that. our companies are doing great. we're doing great, our military's rebuilding. we have a lot of great things going. we're going to straighten out trade. trade will be easy other countries understand, you know, when i talked to them, they look at me in closed doors, not you people, and they essentially say we can't believe we got away with this for so

long it is like you can't believe you got away with it i want everyone to watch, tell you what, we have such a great -- we have such a great country right now at this level, i don't think we've ever been on an economic scale, you look at the numbers, 3.8%, we have the low e lowest numbers of unemployment we've had -- is it 50 years? i think it's 50, 50 years, right? we have the -- we have some of the best economic numbers we've had as a nation, and that goes a long way, and we're building something very special just remember, we're twice the size, our economy, twice the size of china. good meeting today, i think it's a great start. >> what's on the agenda for -- >> just a little relaxatio an a a lot of work. a lot of calls setting up, calling foreign leaders, negotiating trade deals, i'm

working hard, working hard for you people have a good day, thank you >> impromptu scram with the media held by president trump after his meeting with kim jong chol of north korea headline, that's a meeting june 12th in singapore. he said he did not open up the letter, said it was interesting, but one he did not open in the presence of kim jong un's top env envoy. >> eam horon is there. i guess he didn't need to read it in. >> a possibility we'll have to ask the white house about that apparently small inconsistency there whether the president read the letter possible there's a translation presented to staff and briefed him on the contents of it. that sort of thing we'll get to the bottom of that. important thing is the confirmation that the summit happens june 12th, a date white

house officials suggested was out of reach because there was so little time left. >> that's a week from tuesday, by the way >> yeah, i mean -- >> reporter: president confirmed it's happening >> he did sort of pair expectations down a little bit >> reporter: yes >> originally, we thought it was the summit, we're going to make a big deal, and denuclearization on the table, and now it's a get to know you meeting plus >> reporter: yeah, exactly the right way to frame this. the president lowering expectations, i think, a lot, for this summit, saying, it happens in one meeting, but it's the beginning, the president not saying this would be any sort of solution here to the north korean dilemma, but also seeming to be happy with a series of talks, raising the idea there could be many meetings between the united states and north korea, and told north korea to take their time. he even raised the pros tepect what a post-nuclear north korea could look like as in which countries kick in financially

for aide in the country to rebuild its economy suggesting the united states would not be on the hook for that, and then this statement from the president, i thought, particularly striking. he said, i look forward to the day when i can take the sanctions off north korea, so the president there saying that that is a possibility as well. and then also saying, i don't even want to use the term "maximum pressure" anymore, the president's key phrase, how to bring them to the table, the meeting went so well the president says he doesn't want to use that phrase "maximum pressure" in terms of north korea. that gives a sense there's a thaw in relations here we'll see how long it lasts. >> quite a turn. thank you, joining us from the white house, and in terms of market reaction, what we've been seeing is marketings pick up a little bit, s&p gaining a couple points before the time the president walked out and said there will be a summit on june 12th we are close to session highs, a couple points away from it >> we bring in the dynamic duo now of frost and evans

i mean, it's hard to -- you know, we talked about this, it's hard to quantify what the markets are responding to. there's so much to respond to. these are cross currents thinking about it, you know, in all the trade issues and the tariffs, especially a drag, but what's going o with north korea and the jobs number, those have been very positive as well >> right exactly. so we're up 225 right now, and, guys, interesting what he said about nafta. i don't know about you, the suggestion there's separate deals with canada and mexico >> seems a little late and unrealistic for that given how interconnected all, you know, the three north american economies are. >> heads have to cool first with the tariffs imposed. everybody's angry. >> also severely changed the timetable for the nafta negotiations >> right >> to start from the drawing board, ground zero for two trade negotiations no reaction there on that one, but we'll ask secretary ross and