woe of worry to scale, basically, and that it was better to have that drama than not because it keeps the market from going into a bubble >> that's glass half full. >> that's a lot to digest. >> yep thanks for watching "power lunch," and "closing bell" starts right now ♪ i'm kelly evans, this is the "closing bell" from the new york stock exchange, tech stocks lead higher, apple being the winner the latest headlines from the company's developer cancer >> reporter: top anytinames in business of oncology are meeting. traveling to china for trade talks, but no deal reached what happens next? that's coming up >> reporter: we're in chicagoing and boeing taking a shot at honeywell and united technologies details on the rivalry coming up i'm wilfred frost on the

trading floor of barclay's bank in midtown, new york, exclusive interview with their ceo coming up as "the closing bell" starts right now. ♪ >> hi, everybody, welcome to the closinbell what do you think of the walk, wilf i did the walk >> i couldn't see it, but i've been told you were doing it, and i need to watch back to definitely have a look at that, and why i'm happy to be here becae as you enter the trading floor, there's two massic flags, a u.s. and british one next to it, so i'm looking forward to speaking to the ceo coming up. >> well, this better be a good interview, i mean, you're there for the whole hour, okay, we got to do this remote thing, we were in the boxes, so, you know, i'm just saying, let's deliver the goods, okay? >> we certainly will it's a great time to have jes on not least because their trading performance in the last quarter was better year over year than some of the u.s. banks of which

some of those guided down to the quarter heads so we see how they shape up in this particular quarter and week of turmoil across europe and deutsche bank down sly last week >> what do you think unicredit and sock gen who would have imagined that, you know, i don't know, ten years ago, but times have changed. >> well, precisely, and we've seen, of course, unicredit share price decline in light of that story, and that broader question of whether there is a need for consolidation across the european banking space is a topic that will come up, and then, of course, on a personal note for jes, it's a big year and a half f him, just recently put a couple big challenges behind him, and it's interesting to see his take on how significant that is enabling move forward from now on out >> all right, all right, yeah, looking forward to it. you can get -- as long as you need there, just don't talk about football or soccer

he's an american guy >> fun sport >> let's check the markets major averages higher for a second straight day now, nasdaq on pace for a record close, but we're in june now, so it's taken the first half of the year to climb up there two-thirds percent gain for the nasdaq, dow up 171 points now. apple a big piece of that. we begin with breaking news from the worldwide developers conference, and josh lipton is out there rocking his lebron beard, josh? >> reporter: oh, kelly so apple's ceo tim cook on stage right behind me here, getting developers excited for running apps for his products and services, not the competition. take a listen. >> i couldn't be happier to announce that we now have over 20 million apple developers around the world we are also happy to announce that this week we're going to achieve another huge milestone the money that developers have

earned through the app store will top $100 billion. >> reporter: apple also introduced ios12 today, formally rolling that out in the fall, available for iphone5 and promises it's faster, more responsive, and big focus in that operating system is ar, augmented reality. apple unveiled today ar kit 2.0, allowing shared ar experiences, big deal for gamers, new messaging features too, kelly, animoji, make one of yourself, and there's now group facetime inviting 32 people to participate, and new features within this operating system allowing for greater control, so offering you ways to track and monitor just how much time you spend in the apps when you are on ios devices, they are still speaking on stage now talking

security and privacy saying private data should be private and be in control of who sees it keg kelly,o you. >> the facetime thing sounds cool, an answer to house party, those are group video chats? >> reporter: that was a big deal certainly people waited for group facetime it's going to work like a group call you can invite, again, 32 people in effect like it works ross multiple di vi multiple devices >> oh, wow only in apple, i imagine you can't facetime with other types of platforms josh, thank you very much. josh lipton out west for us. apple shares hitting an all-time high with this happening, everyoe ing inching closer to a trillion dollar market cap, which is hard to believe let's get to david and neil to talk about the stock welcome to you both. you are more bullish here.

$220 price target. you think it's a trillion-dollar company, right >> i do, thank you for having me on, kelly. apple, the stock, basically the compy's strength in the high margin, high end portion of the categoriest they go after, smart phones and tablets enabled them to generate free cash flow, and now with favorable tax regulation, they are able to return more cash flow with buybacks and dividends so that's why we like the stock. >> but neil, you are cautious on it, and you actually say you are concerned about profit margins moving into services, right? >> i'm not conce profit margins of the iphone franchise, i'm not concerned about the services, gross margin around 35% range, but i am concerned that the subscription businesses they are rolling out will have lower margins of what their typical corporate averages are. >> what are the businesses you refer to >> apple music, soon to be released probably apple news and apple video as well.

apple music, the public comparable is spotify. they have 22% growth margin, consensus projects that expands to high 20s in four, five years, and so when you look at that, maybe get a 20% operating margin for that, below the corporate average for apple there. >> yeah, especially on the hardware side. shares at 192, and you think they are worth a little bit more than that? >> yeah. look, my price target between mine and tom is not much different. main difference between mine and tom's view is i see apple being at a stage of where microsoft was in 2003 where they were so focused on everything has to be tied to the windows operating system you just mentioned, oh, facetime, is it available across multiple platforms oh, just the mac and apple ecosystem. >> right >> everything ecosystem. that's how microsoft operated in 2003 >> do you think apple should be bought gethub? >> do i think they should have >> i'm no specialist, but

microsoft bought them with the idea of the open source platform for developers to, you know -- >> i think it speaks to the philosophy that they are much more open than what they were in steve ballmer was in place, and that -- look what it's done to them, opening up all their different subscription services to any device, any platform,nd they see their cloud business absolutely explode, right? whereas with apple, yeah, you have all the different subscription services, but limited to the apple ecosystem it limits the number of subscribers within that tandem you know what? they have a multidevice ecosystem themselves as well >> for me as a user, i want to use the neat features like an imessage or seeing them in blue, not green, do you think apple should open up their software ecosystem? >> no. i think their software e ecosystem, ecosystem in general is more than fine. i understand nehal's points, but

for apple, this gives them control, and to the extent, for example, i access amazon music on my iphone10, i'm more than okay, so i argue their ecosystem is more than fine, and i think, again, because they generate significant cash flow, shares will perform well going forward. >> well, if they hit where either them see them going, it's a trillion-dollar company. thank you for joining us turning to another big story in the tech world. facebook under fire again. yet another data scandal following a report in the "new york times" detailing how a company shared user information with device makers let's get to julia with the story. >> reporter: facebook shared data with 60 device maker like apple, samsung, and blackberry saying facebook gave device makers data about user as friends without explicit consent

through partnerships designed to intergrate the social network's features now, facebook saying the data was simply shared to give users access to their facebook accounts saying, quote, contrary to claims by the "new york times" friends' information like photos was only accessible on devices when they made the decision to share with those friends. we're not aware of abuse by these companies. new york attorney general underwood saying today's that news of the partnerships are another reminder of unanswered questions regarding facebook's misuse of consumer data. of course, this follows the cambridge analytica scandal. in another article in the "new york times" is noted facebook sold political ads masker raiding as news stories in early april aiming to influence the california primary election. facebook responding that since then, it's rolled out a number of changes requires issue and political ads to be labeled and advertisers be authorized. those changes did not start enforcing until late may kelly, back to you

>> yeah, yet shares down less than half a percent today, julia, thank you very much 50 minutes to go here, dow up 175 points here to kick off the week, strong gains across those -- with apple doing what it's doing, it's helping the and nasdaq, russell and s&p lagging today. u.s. faces global backlash in response to the tough talk on trade. we'll talk about to a top china expert how the country could retaliate. we have an exclusive interview with jes staley, his first since the fine earlier this year. it's an interview you don't want to miss coming up with wilf in minutes. we want to hear from you, e-mail uson twitter, facebook, we're back in two.

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welcome back to the "closing

bell," i'm here at the trading floor in new york of barclays bank, joined now by the ceo of barclays jes staley.good aftern. >> congratulations on you know coverage of the wedding. ife was glued to you >> you're too kind it was a nice marriage between america and britain as is this, so, again, thank you for having me this afternoon. i want to start with the extraordinary volatility we saw in european markets last week led by the political changes in italy, and the moves we saw then in italian bonds over a couple da days,fu days, was that a foresight we see in removed froeurope >> it was a good reminder that the markets are not immune from geopolitical risk, clearly triggered by political change. you kn, one of the things i think we've seen recently going back to the volatility spikes

that we saw at the end of january and february, to me, the most liquid markets, markets making these significant standard deviation moves so a se as wide as it did was a phenomena. this underscores risk while on one level capital markets are growing, underlying liquidity is lower than it should be, so we get a move like we saw in italy. i think the healthy thing is now that it has recovered, but looking for the spikes in moves and prices in rates is something that i think all market makers and all market participants have to be concerned about going forward, and, clearly, it's a time when geopolitical riff will not recede >> looking at share price move last week of europe's banks, it was a pronounced volatile selloff for the continental eurozone banks whether italy-related or stock specific, issues for deutsche bank last week do you as a european bank based in london see that as an

opportunity? continental u.s. banking space weak at the moment and something you can seize as an opportunity? >> well, the way i would describe it, i think the move in the european banks was indicative of liquidity challenge in the underlying debt markets because what you saw were market makers selling european banks to protect themselves because the security markets was too ill-liquid at the point to correct your position we did one of the largest block trn that day in italian rates, and it was a challenge because it was a lack of liquidity so the stock movement was very much a byproduct was what was going on in rates people couldn't hedge themselves in rat defaulted to bank stocks i don't think it underscored issue with respect to european banks or not >> there's a story today, story over the weekend, unicredit of italy could consider a bid to

buy in france. is that coming whether it's that deal or not? >> it's true that scale in consumer banking is an asset, something that improves evaluation of the banks, and you do have a very divided market across the continent of europe in trying to develop banks to have the scale u.s. banks risks have in this market makes no sense, so that being said mergers are very disruptive, cost a lot of money to make them work, and i think you have to be mindful of where the regulators sit today. two sipi banks or significantly important financial institution, is a major move in the regulatory environment we'll see where it unfolds, scale on the one hand and too big to fail on the other >> the stories of barclays looking at standard charter, also, i guess have regulatory hurdles. is that realistic? >> no, no discussions with

standard charter that was a one day event in the press. we spent time in the last two years restructuring this bank. we are done with restructuring we had a terrific first quarter, so we are off to thexecute the strategy >> so part of the strategy -- you mentioned having scale is to build a sort of transatlantic investment bank. you also face pressure from an activist, edward branson you met with we have not heard from him in the press specifically what he wants. e suore decision to push hard that transatlantic investment bank? >> we had a very good meeting with him talking about our strategy and the first quarter he has nod rolled out to us what the strategy is. he talked to his shareholders about the thoughts, but we have not got it back from us yet. we are looking forward to that. >> our thoughts behind this is a great synergy across the entire platform as well as diversification benefit of being

a consumer bank, wholesale bank, u.k. based bank, and having a significant presence in the usz. >> trading performance last quarter was stn terms than some of the u.s. investment banks, hearing from jpmorgan last week lowering the guidance to growth or flat growth year on year. how is it shaping up this quarter? >> first and last quarter, we gained market share. dollar terms in the first quarter was up 21% versus the american average of about 10% versus the other european banks 0 to down in one case. that's sit share in the first quarter, very healthy for us we can't comment on the second quarter, obviously, but we like what we saw. return on equity in the markets business was in double digits in the first quarter, so not only did we gain market share, but it

was profitable for us. >> talking about transatlantic relations. we got a response from the minister may about trump easter riffs today calling them unjustified and deeply disappointing. president trump due to visit the u.k. next month. your take as an american in lon going to go down >> wel i of the first questions is, is this move tactical or strategic? is there a pullback from the global system of free trade or attempt to get to a free trade market globally or is this a first step in what would be a long negotiation the partnership between the u.k. and the united states is historical, it's very, very deep, i would hope that the united states and u.k. correspondent to have a very robust and solid relationship, and i hope that the visi theu.s minister of the u.k. is constructive and goes well

>> do you think he might have a tough reception more broadly >> you know, i think, you know, it move like raising the tariffs is obviously gotten a response, whether it's canada ornce or whet the united kingdom. you know, the united states is, for so long taken a leadership role in navigating the global economy, i think there's a real concern that if there's a pullback, what the implications might be, and i think that'll be a hearty discussion. >> sure it will indeed i wonder if the wedding helps the relationship moving on specifically just to you, you were fined $1 million roy by. regulators and by your own board for trying to establish the identity of a whistle-blower internally. that ramped up for quite a long time, issue hanging over you and the bank the question is, during that extended time, how much pressure did you feel did you ever consider the worst that you would lose your job >> first, i accept the

conclusion arriv at by the fca and pra and full report of the investigation, i think, is very fair, and balanced in totality the last year and a half has had its challenges we reduced the head count of barclays by 56,000 people. we sold 22 businesses around the world. we closed our retail banking business across africa and continental europe, et cetera, at the same time, we were charged and sued by the justice department over mortgage-backed securities sold in 2006 and 2007 on top of that, we were charged criminally by the british government around a capital raise in 2008. we have these lawsuits with the department of justice, with the british government, we have the restructuring, reorganization of the bank, we have this case of the letter, and to an extent, all that is behind us, and now we can look forward to running the bank and executing on our strategy we had a great first quarter,

again, the group results, and ex-litigation issues, double digit return for the shareholders, something not done in four years. the issues are behind us >> indeed. a long list of issues that successfully have been put behind you, as you say, jes, but specifically on the investigations into you personally, it was very drawn out. it did take a long time. the conclusion, eventually, of course, allowed you to keep your job, but did you fear in the midst of it it could be worse, the outcome, that you might lose the role you're in the at the moment >> you know, i got a lot of respect for the u.k. regulators. it was a very robust investigation by them. barclays is a very complicated challenging bank, but, no, i felt, you know, i feel that was my obligation to commit focus an attention to the barclays shareholders, customer, and clients, and so, you know, now we move forward. >> i wanted to ask about the relationship that you have, you know, famously with jamie dimon in the states, someone we know

well on this channel he presented at a barclays conference late last year, and when you introduced him, you described him as a, quote, deeply special frid and arguably the most important and respected leader of a financial institution in our generation. i guess the strength of those words surprised some people given that it was felt, at times, the two of you may have gone through a more frosty relationship, and i wondered if you could talk us through the highs and lows and how you are pleased now to be back in the position where it is, indeed, a positive relationship. >> you know, as an education for me, you know, now as ceo of barclays to watch how he navigated the financial crisis and commanded, what jpmorgan was doing, so involved with the regulators, how they would treat it, it was a real lesson in leadership, and to be on the operating committee and close to his side during that was a great education, was a great education for me i left the bank. now i got the opportunity to run barclays jamie and i talk quite a bit,

actually, seeking morgan's advice as corporate broker around our activists jamie's done a remarkable job he's charismatic, thoughtful, and he's been very supportiv me, and there's been a number of times whether it was the brexit evt, whether it was the officec me up and offered advice, counsel, and support that's special for a ceo to do for one another. >> recommitted to jpmorgan for five years, probably made the right choice to seek a ceo role for yourself >> that's probably true. >> thank you for talking with me >> thanks, wilf, a pleasure. >> great stuff you covered a ton of ground. thank you, again, to the ceo half hour left in the section, dow with a 182 point gain up next, mclusive interview ande

are boosting profit. it has to do with tech we'll tell you in two.

welcome back kicking off the week with a nice rally, especially for the major averages, russell 2,000 small caps lagging by a couple points, but apple is why the dow's up 178 and nasdaq up 67 with more news on the company as the developers conference wraps up out west dom chu has the story.

>> kelly, as josh lipton told us in the world wide developers conference, apple unveiled a suite of products meant to hp users not be as in tune with their iphone or disturbed or distracted by the phone as in years past one of the things this resinates with is investor hedge fund that controls bils of dollars worth of apple shares. you may recall that back earlier this year, they were right here on cnbc's halftime report talking about the idea that apple needs to fix idea of iphone and ipad addiction. they weighed in on some of apple's developments here to limit that screen time they have said in a statement from jana partners, this is an innovative and thoughtful response to the challenge we put force and commend apple again for leadership and commitment to acting responsibly while we will review the details and apple's follow-through will be important, this looks like a clear win for the parents and families, as well as shareholders given that this should strengthen apple's

ecosystem for years to come. this particular hedge fund very active in pushing for changes, thinks apple is doing the right thing. we'll see if that helps them and the company going forward, kelly, back over to you dpguys >> have you kept thetle one from the screen? >> severely limited my 15 month old daughter, yes. i hope you will do the same thing, by the way. i hope you do the same >> oh, we need some tips >> i'm happy to provide them >> dom, thank you very much. back at headquarters there we move on to the quote of the day, shall we? the mcdonald's ceo said the fast food restaurant is going spinto the future with self-serve k kiosks >> if they want to dwell, have more time, browse through the menu, start to select, and start to see the broader ranges, perhaps, or may customize the food they've got then you can also pay clearly on

credit or debit there as well and then receive table service you can take a little tent card, bluetooth enabled, take it to the table, and we bring the food out for you. we find when people dwell more, they select more, so there is a limit of check boost as well >> >> i used the touch screens in manhattan, not the table device, but panera's works well. i think it makes sense >> it does, and it's been rolled out extensively in the european markets more than broadly in the states, and in the last couple quarters, europe is a strong point. i thought it would have helped deliver margin improvement, lowering costs, but fascinating the appointment it increases the average check size i guess you can see why. everything laid out clearly in front of you >> why do you think they did it in europe first? did they want to sort of say, okay, if we mess up here, it's no big deal is europe way ahead of the curve on these things

>> i think he was talking about that this morning with carl saying it was more ready and quicker rollout, and, again, they've done it in some markets in the u.s. tested, but feeling it out, but by the way, that was one of the big surprises in the last quarter was the broad strength in some of the european markets when elsewhere the gdp data came off, but we'll see if it rolls out successfully across all the u.s. >> yeah. kind of fun, too, can be a pain, but seems to work pretty well. wilf, i want to say more about the interview, but i'll save that for our chats about it to come >> 4:20, it's coming >> all right, we'll wait if they let you stay it's time for a cnbc news update, over to sue. sue? >> kelly, here's what's happening at this hour, everyone protests outside the u.s. supreme court today. it comes after the justices ruled 7-2 in favor of a colorado baker who refused to make a wedding cake for a same-sex couple the court saying the colorado

civil rights commission violated the baker's rights under the first amendment. serena williams withdrew from the french open because of injury preventing her from serving. she dropped out today ahead of a fourth round match against sharapova. resident of an apartment complex in florida, take a look at that, got a scare a young black bear sighted on the property a nearby school was on lockdown, but luckily, law enforcement and wildlife officials were able to trap the little guy and escort him safely off the property. and a virginia man is the new world oyster eating champion after devouring 40 dozen oysters in eight minutes, that's 480 oysters for those of you doing the math, and if you missed it, don't worry, he's competing in the nathan's hot dog eating championship in coney island

july 4th >> i had not heard about serena williams, putting aside the oyster thing that matchas this morning, her and sharapova. that was a big one >> huge match. it's disappointing for her fans. especially, you know, because she's had issues after she had her baby, and she was on the comeback trail, and -- unfortunately, she either pulled a muscle, there was some issue, and she really felt she could not serve effectively so she pulled out this morning. >> that's too bad. >> wishing her the best. >> absolely. sue, see you next hour 25 minutes to go, and pretty nice session across the markets today, a little bit of weakness in the u.s. dollar the transports are weaker today by 8 it 2 points crude oil lower by a buck, and wti, under $65 a barrel. up next, commerce secretary wilbur ross wraps up trade talks in beijing as u.s. faces criticism from the strongest allies we have the latest

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welcome back dow up 182, nasdaq up 42 points, this would be a record high close for the nasdaq i think it did it january, maybe march, and now we fought back up here in early june two-thirds of 1% gain for the tech heavy average today the united states singled out by the closest allies over the imposition of those tariffs last week we are in washington with the latest, kayla? >> reporter: kelly, when the g7 leaders meet in canada later this week, u.s. trade policy will be the elephant in the room after they condemned the u.s. for the tariffs imposed last week on the basis of national security the statements said the group must take, quote, decisive action when the leaders meet later this week. the dynamic of the summit has now been dubbed g6 plus one. here's the response today from white house press secretary sarah sanders.

for months, the united states has had discussions with canada, mexico, and the eu to find an alternative. without an alternave solution, tariffs are the only meare opriate to safeguard the country. we have strong relations with mexico, canada, and the eu, and we'll continue and those will ntinue even though the tariffs are there. >> reporter: president trump took to twitter today to defend his recent positions an chast e chastised polls of canada and china, the latter of which charges 16% on soybeans. according to the u.s. soybean exportnsel, ey charge all wto members 3% for soybeans and 13% value added tax. it's 25% retaliatory tariff would be on top of that, and just for the united states china said it would only retaliate if the u.s. goes forward with its own tariffs on june 15th. negotiators wrapped up talks sunday are briefing their respective presidents on whether that'll happen

we'll see. kelly? >> yeah. the tone overall, between -- this -- you know, the headlines no progress de, is that pretty much accate? >> reporter: feels like the last beijing trip that the high level u.s. delegation took in the beginning of may they released a statement saying that it, you know, was basically ink inclusi inclusive, would brief the president and figure out where tofrom then. the vice premier of china brought a massive delegation to the u.s. where that truce resulted, t seems that, you know, with this trip being supposed to flesh out details of the truce, the fact we don't have details is not taken as a good sign. >> no, exactly purpose of it. kay k kayla, thank you very much joining us today is james, frederick newman, steve grasso, and rick santelli at the cme in

chicago. steve, beginning with you. markets don't have a care in the world, lack of progress on trade with china, i mean why do you think that is? >> just doesn't -- i would think you have to look back to what are the tail winds for the economy? we have that great jobs number friday i think people are putting it into perspective that we still are economically in tact with growth if you look at it from that standpoint, how do you worry about europe how do you worry about everything else? you can worry about it, but i think they take a backseat to the growth questions, and you stick with our economy here and what was shocking to me last week was that large cap tech was defensive, so you go to that for growth >> did all right when the markets sold off, yeah >> right when you say it's shaking off the trade issues, look at large cap tech from china, look at those names, those names are blasting though names are making historic highs, so the market, to your point, shrugged off a whole lot

of issues with europe, with italy, with china, and it continues to do so >> and, jim, that means apple's on a fast track to a billion-dollar market cap, this is going to be a reality we've never seen this before >> no, we haven't. if you look at the economic surveys or evidence that people tell you about the economy, let's put it in the big package. never been better in 40 years. you saw that in the "new york times" friday, neil irwin saying words cannot describe how good the employment report is i get worried with that talk that all the good news is priced in when you say "words cannot describe" sounds like there's not a lot of upside left for investors to surprise when it comes to the employment situation. only disappointments coming forward from here. >> frederick, maybe that's the case and maybe it goes under 3%. i'm thinking we could have trillion-dollar companies and anything's possible.nt and

what do you say? >> well, it certainly looks like we've turned the corner. the economy has taken a staved velocity in the u.s., things are looking up, but, reall remember, it's a u.s. centric improvement. if you look at other economies in the world like europe and china, emerging asia, they are actually seeing a slowdown, and that means a stronger dollar, and that ultimately crosses starts buybacks in the u.s they have overseas earnings as well >> to that point, frederick, the trade issu probably hurt -- the big listed companies more than the u.s. economy, right >> that's right. trade is not as much a macro economic issue as it is a an issue for electronics goods traded between china and the culte is another one, so it's very sector specific, and that makes it much harder to price. >> rick, you know, kayla

reminded us of the tariffs that exist there other countries in the u.s., and there is a goal here, which is to really get more free trade, but do you think that's where we are headed on this or just going the opposite way, even in intentions are good, is reality more tariffs, barriers, and taxes on the u.s. consumer and worse outcome for everybody? >> i'm not sure how it's going to turn out, but i understand that you have to try to leverage in any fashion you can, and the spontaneous efforts of this president, which make many unhappy considering that he's not putting a plan on a website that people can follow, but it can turn into something the market likes i'm rather impressed to look at the s&p, nasdaq, where the dow is considering all the uncertainty on trade look at the mexico peso today, now takes over 20 of them to make a greenback the highest close on the dollar versus the peso since february of 2017. and i think it's very

interesting to note that while all this is going on, of course, we see yields rebounded rather nicely we're at 294, and that's the highest yield close since a week ago thursday, so i guess to answer the question, i think this country as frederick said, a lot of pluses. the rest of the world not only does not have pluses, but the central banks are not as far along, and i really do think that latter point is something that we overlook in the grand scheme of macro economics lately >> all right good point leave it there gentlemen, thank you, all, jim, frederick, steve, and rick santelli less than 15 minutes to go nasdaq could close at a record high today when we come back, we are inside the world's largest cancer research meeting with key findings leading to big stock swings wait uile lloubo themte y aut

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welcome back, the cancer meeting underway in chicago, and we have the big news moving

stocks as well as positive news for chemotherapy treatments and breast cancer, a lot of good stuff coming out of this already. >> reporter: yeah. just a ton of information that came out over the weekend, and continues to come out today and tomorrow from this conference. of course, immunotherapy is the talk, new drugs that unleave the immune system to fight cancer, and there, merck is the key winner from the conference, data in lung cancer that could be practice changing, how they look at prescribing drugs for patients, particularly in lung cancer on the flip side, nektar had combination of drugs, immunotherapy not looking good to the street, stock down 40% on those results, but some investors and analysts called it confusing at best. not as good for those companies. into other area of cancer research in genetically targeted cancer drugs, drugs for a small

population of patients, but they look to work extremely well. there there's a lot off oncolog and blueprint medicines the stock is down today running up a lot into the eren blueprint has a drug in that space, but they are not looking as good at this point, and that stock is down 10% on the data. timely, rounding out with genomic health, and breast cancer data is moving this stock more than 21% today. its test used in a major clinical trial showing majority of women with breast cancer do not need to take chemotherapy in order to get the same benefit so that's why that stock is moving up people say it's a win for personalized medicine and great story from the conference, and, kelly, another interview for the viewers coming up in the next here with daniel o'day stick around for that. back over to you >> all right great stuff, meg, thank you very much from chicago.

n nine minutes to go, nasdaq on pace for a record close, and apple hitting a high today as well headlines there foyou. coming back, we dive into the action at the nasdaq as ha index tries to see if it closes above, what is it, 7600 now, fothr e first time stay with us anyone can get you ready,

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welcome ck, on pace to close at record highs, and bertha has more, and i know she watches the hoops last night >> just a little bit, just a litt bit you know, the nasdaq - >> it's so late. >> record closes across the board, not just the nasdaq, but large cap and small caps in the russell 2,000 as well today, a big force here the largest of all large caps, apple, market cap now at 943 billion with an intraday high, intraday close setting up, and some of the fang names like amazon that now is valued at $807 billion, bigger than alphabet also bigger than microso, today, hitting an all-time high as well, and helping to move things higher. ironically, biotech sitting out.

the index ran up 3% ahead of the conference, you heard the highlights there from meg, but few today that are selling off on theews. back to you, kl elly >> all right you know, it starts at 9:00 -- 8:00 last night, i first half and the third quarter, anyway, we're out ofime. thank you very much. up next, we are coming back with the closing countdown. stay with us [phone ringing]

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welcome bawe go to the floor with courtney. >> we started the session with triple digit gains for the dow, and that's where we end up, actually, relatively narrow trading session looking at the moves in the s&p and dowhe day, but tech names really lead the way most of the session today with the nasdaq the outperforming index l here at the end we heard from bertha, tech is leading the way, continues to, the sector's closing higher, actually, second record close for the tech sector for the s&p, although, off the intraday highs there a little bit, and i'm joined now by peter costa with empire executions, i mean, tech is an interesting play right now. it's almost a safety play for the market, even with the trade fears. >> well, you know what it is a lot of money is moving into it they are liquid names. i think that they see that there, you know, potential growth is continuing, you know,

apple, they have the developers conference, which is usually a big ost, and you look at netflix that continues to go out and spend money to bring more product out there, and so i k p it, and i don't think naare worried about the risk all that much at this point in time, and i think there's still a lot of money to be moved into the market, and that's where people's feelings feel good about. >> interesting all-time highs for amazon, adobe, microsoft, and others >> yes >> thank you, peter. >> you're welcome >> over to kelly evans stick around we have the second hour of the sing bell. thank you, court, and welcome to "closing bell," i'm kelly evans. we are going out with a record on the nasdaq today, that's the one we watched to see if it could, and, indeed, it did, closing above 7600 for the first time, 7606, joined by the russell small caps, and the small caps have been up there

longer, 1653, and dow and s&p are nothere yet, but did fine today. the s&p adding points. dow up 178 we also had a little weakness in the dollar oil was down today the transports, actually, down as well. airlines did take part in today's rally, down 8% for the year, and latest industry data could show pain ahead. we'll trade it coming up later on this hour, the roche pharmaceutical ceo has more on the race to treat lung cancer. looking forward to that. se market commentator, michael santoli is here, and rebecca patterson, and jj. welcome to all of you. a nice day for retail, and ge there, again, down nearly -- look, mike, under $14. what's the low for ge now? >> low is -- was under $13 >> all right not there yet, but just can't climb back underarmour the leader in the s&p with a 6% gain

nektar therapeutic, a disappointment, dropping 41% we talked trade issues it does not feele anything macro weighed on the markets today. >> not much, but i think last week showed you that sometimes when the market is grinding awaysideways, it needs a little bit of a slingshot and needs something to set it back, get a little bit of fear in there, and what doesn't really hurt, what doesn't really create a lasting mark makes you feel like, fine, we absorbed that, can go ahead, and i think that's what you are seeing right here. treasury yields came off the highs, so it seems like, okay, liquidity is looking better. credit markets look good and then let's buy large cap growth because that works in a slow and steady world. >> look at the 10-year like you said. >> exactly some of us remember the '90s, global concern keeping the fed patient and lid on interest rates and large cap growth was defaulting divide. we're nowhere near that level of extreme on the measures, but i

think it makes sense in that concept. skpl all we are missing is the -- well, a few things, but maybe before i go too far down the analogy, but productivity growth >> oh, yeah. >> in terms of the way the economy's bhifing -- >> rebecca, is it there, but not showing up in the numbers? >> you know, it's a really hard -- >> it looks so good. >> hard to answer. that's the piece of the economic puzzle that economists have the most fierce debates about is what it productivity >> inflation is not rising if the job market's this good, i don't know we don't need to deal on productivity right now, but what do you think the best options are in the market right now as these major tech companies are quickly going to be worth a trillion dollars apple is, like, a -- what, 5% away from that point right now >> yeah. i mean, i think the thing one has to be careful about is the tech sector nois a quarter of the s&p. there's a lot of passive money in there, and so if you do have one large or couple large negative catalysts, the risk of profit taking is definitely out there. however, i think that's a risk i think the reality is that tech

is the new cap x if you look at how companies are spending theirax wind fall now, over 40% of that is technology related, investments, research and development, software as a service, and so the fact we are getting this stimulus into the economy, it's not the old factories and widgets, it's tech this is a cyclical play now which it was not in the past >> good and bad. >> right >> works when everything is expanding, hit when everything collapses. >> yes >> you said, you know, well, we know how over-owned technology is already, but when you come off the other side of that, that's going to be a problem >> it could absolutely be a problem if, in fact, we do see something like this cap x rever sam -- reversal what you saw in 2000 and 2001, oh, guess what, the customers of tech ran out of money. they couldn't spend it we're not there. right now, the largest tech

companies are so pervasive it's not purely a manner of just selling to the new guy, but, no, that's obviously the risk, but what i would focus on today is in this recent period is tech was winning, by the way, ene had his leader for two months, was for sale all day, down hard, financials underperformed, but there was enough else going on, retail, and tech that the market as a whole grinds its way higher. it's selective market. >> reminds us of last year, too, when all that worked in the back half was tech. debateose be places where peop >> i still like energy we have a modest weight energy, overweight tech for quite some time, and energy, i think, we got very far on speculative positions. we have this looming opec meeting later this month there's a good chance we get a little more supply to the market that's getting discounted now. if global demand stays robust, non-farm payrolls are another data point telling us it is, i think you have supply and demand

relatively more dlabalanced, god demand backdrop. i think buying energy on the dip to the degree it continues for a little bit is probably a good trading strategy for the late cycle: not recession, but under the cycle. d there is a sweet spot for sure >> slid back a fair amount >> keep in mind companies talked about energy as a head wind to earnings end of earning season, so interesting if they talk about it again the other thing to keep in mind, we hnot heard anybody talk about the strength of the doar hurting anything in a lodng tim, and that might be the next thing coming up as a major concern, so, you know, for retail, i'd say, particularly, obviously, some of the airline stocks as we saw today, crude oil coming down is not a bad thing, and we'll see, watch how crude oil trades

over the years, trades vehicletivehiclet -- volatilely for weeks, and then ramps up. >> where people trade now, you always have that monthly activity, is this a window into the market, what's may look like >> energy did not make it, but interesting a lo old-school stocks made it people d buy ge, which is, you know, not a great one today, but they bought disneyand snap, an one of the things about the stocks they bought, if you look at those three, 52-week lows or six month lows last month. what's interesting is what they sold selling apple because it hit a 52-weehi, and cebook and millennial clients bought facebook two months in a row >> buying facebook although they do not use it. >> bought it in march and april and sold last month ast rallied back out it's interesting with the news today a lot the clients, particularly those who use it were the ones selling it >> on the facebook point today, the "new york times" over the weekend really say facebook share data with device makers

like apple and samsung, stock up 4% since the analytica sca was reported in march, barely closed lower today, mike, even though, i don't know how the things get resolved. just a steady drip that, you know, people become numb to? >> i think when it came to investors trying to evalwait whether there was risk here, it seemed a lre of a stretch than the initial cambridge analytical, no more shock value than that did. this idea that agreements had really expired before 2015 or at least no new agreement with hardware makers, again, sounds like the same droning concerns about privacy. i'll be honest, i thought facebook - >> droning concerns about privacy. that's right it's unfortunate, but that's how feels >> it's a complete -- you just always have it out there some people worried or telling you to worry, but it doesn't change behavior. >> exactly >> not yet so i thought 185 or so for

facebook would be tough to reach, but it went through it. >> 193 and change now. >> got it today, strong tech team >> what do you think, rebecca? >> y goingk to what makes tech not work? regulation ie of the biggest risks out there -- >> you think so?>> i don't thin united states, but ee cares more about privacy relative to the u.s. >> so far, google, the big winner from europe's data privacy rules. >> the data short term risk is small. at the end of the day, my mom in florida goes on facebook to see grandchildren pictures average americansee google good for their lives, not bad. what a politician and regulatory agency wants to punish harm and reign in harm, i don't think the average american voter population sees it as a net negative yet >> people will be happy to picket it, break them up while they tweet about it. >> yeah, yeah. >> in other words, snapchatting a picture of themselves. >> at the rally. holding the signs. >> absolutely. one other quick thing i wanted

to bring up that's important, back to the points that both mike and becca made, this is the first time they increased exposure month over month in the market for may every other month, they drew down, so i think that's a nice cture looking at the jobs report last friday, a lot of the economic numbers >> yeah. >> so to see the fang stocks perform well today, obviously, outside facebook, it's not a big surprise they come back because, again, i think that's where people, when they have confidence in the market trust a little bit more on rallies >> netflix all-time high today quickly, retail with a strong day. >> very. >> abercrombie up big, walmart, kohl's at a three year high, may -- macy's at a two year high. is it for real >> pendulums swung too far the other way. they are trying to make brick and mortar a better experience so it's targeted macy's led the way on that >> the retail armageddon has

been going on for a few years now. bad news is priced in. does not mean it's not continuing, but valuations are attractive, and with people getting jobs and wages, they spend. you have to pick the companies innovating enough to nail all the channels to sell to their customers. >> evercorp. this morning, double upgrading saying the retail apocalypse is over. we'll see. >> the market told you that -- >> already, a good headline, though thank you, all, very much, talking markets today. shares of boeing also climbing today after announcing a move to take on the likes of honeywell and united technologies. what that means for its bottom line in competition. we'll talk abouthat next also, apple finished the day with a record close of its own after announcing a new operating system at the worldwide developers conference. goldman's apple analysts weighing in coming up. we want to hear from you reach out using twitter, facebook, who cares about privacy -- oh, there you go, e-mail us. closingbell@cnbc.com we'll be right back.

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record high, first time above ng

7600, 7606, in fact. here's nice numbers, apple needs r market 203.45 to have a >> within hailing distance, obviously, we have to give a caveat thee likely buying back a lot of the shares >> yep >> working off the old share count, they work against themselv gettingto a trillion, getting there. breaking news on howard schultz. what's going on, andrew? >> breaking news, end of an era, the executive chairman of starbucks stepping down from th. this decision made in a note to employees literally moments ago. he'll be leaving the company severing all ties. it'll happen on june 26th. in his place, myron ulman, former chair and ceo of jcpenney will be the chairman, and

melanie hopps is the vice chair. kevin johnson, the company's ceo, and you remember i was in this chair a year ago when howard schauultz handed over the reigns a year ago. this is part of a transition that howard says he privately told the brd about a year ago, and schultz will be honored with a separate title, chairman ameritus i want to read you a note to the employees -- i set out to build a company my father, a blue collar worker and world war ii veteran never had a chance to work for together, we've done that and so much more by balancing profitability, social consciousness, rigor, and there's questions about why he's stepping down now, and in the note, he says something that may answer it saying i'll be thinking about a range of

options for myself from philanthropy to public service, but i'm a long way from knowing what the future holds. of course, all of this comg just a week after starbucks closed down stores across the country, company owned stores to teach and talk about anti-bias training to 175,000 employees, but there will be a discussion, of course, about whether howard schultz could decide to pursue public office. the name is tossed around constantly as a potential candidate for 2020 i spoke to howard this morning for my "new york times" column, and i want to read you another note he said -- "i want to be truthful with you without creating headlines for some time i've been deeply concerned about our country, growing division at home, and standing in the world one of the things i want to do in my next chapter to see if

there's a role i can play in giving back. i'm not exactly sure what that means yet. of course, we'll try to find out what it means when and if he makes a decision in the future in the meantime, he's working on his family foundation as well as write a book about the role of social responsibility in corporate america, but i do think, guys, this is a moment to think about when you think about where starbucks came and how far it's come. if you look at the stock price, this is extraordinary. since 1992 when the company went public, the stock is now up 21,000%. meanwhile, it's worth noting, of course, that over the past year, the stock has struggled. there are continued challenges at the company it was a growth story for so long and continues to be a growth story in places like china. here in the united states, comparable store sales have suffered, but kevin johnson has been working mightily to improve

technology and a number of efforts. just last month, they announced a plan, $7 billion plan or deal i should say with nestle to sell their packaged goods i should tell you, we have an interview tomorrow exclusively at 8:00 a.m. eastern time with howard schultz where he sits down with us here on "squawk box" discussing all of this and more this is the breaking news out o. >> andrew, this is a remarkable stuff in the share price reaction still suggests that he has a powerful sway over the company. i mean, he's very tied up with it you know, by the way, that statement that you quoted from him earlier, to me, sounds like, i'm running for president, and i wonder, in some ways, if, you know, whatever the public office may be, but, you know, if he wouldn't -- if not better served for him to do this -- i don't know, a couple years ago you know, like this company has now become so much a vehicle for

his social views, is it really best served that way maybe he realized with everything that happened last week in closing the stores it's time to just kind of, you know, separate completely, but i don't know >> well, in terms of timing, it's worth noting the planning for this for about a year. in fact, they had planned to make the announcement on may 15th, so about a month ago, but in april, as you know so well, that incident in philadelphia upended that plan for him to depart at that time, and, of course, he spearheaded the training plan that took place around the country weeks ago or rather, i should say, just last week i just want to caution everybody i know i've tao howard this morning about this i don't think nor know he's running for president at all, and i don't want to dissuade you that he won't, but i think that he - >> i don't think he wants to dissuade either. >> i think it's a long way - >> he's so political >> i think that, you know, you talked about the timing and what

i would suggest to you is if, in fact, he's going to make a decision like that, which, by the way, i d think -- i'd think you would make a year from now, and, remember, when michael bl it a period where michael bloomberg considered all sorts of things and never actually went through it with, but i think that if you're going to be running a publicly traded company, and he said to me, working at the company, he never felt he could actually explore other things he never felt that would be the right thing to do, so i think this gives him that freedom, that distance, and we'll, of course, watch and see, and we'll hear from him tomorrow about what his plans are >> we -- i want to bring mike into this for a second, because, mike, the other thing you can say is, know, he's taken th company so far, and now it's a mature kind of -- it's a -- it's not a growth story other than china, and is it not as exciting to him as an opportunity, so, like, okay -

>> combination of his stage in life he backed away from the company once before. the stock did take a hit, maybe strategically the company lost its way a little bit, he's come back, and reminds me not only of the famous example of steve jobs, but chuck schwab there is halo effect people are not convinced domestically >> they really had lost sales last time. >> right >> he opened the roasteries, a lot of international expansion this is a verdict now? >> i don't i think if howard schultz were 50 years old and never expressed any kind of broader ambitions in the public sphere, then you'd say, wow, he's trying to leave before things get tough, but i think it's a different situation with him at this point, just, again, where he is in his life and stated view of something bigger out there to do

>> guy and karen are here, "fast money" traders for their two cents on what you think the significance of the announcement is for starbucks, guy? >> i think five years ago, this would be detrimental to the shares, but knt's a mature enoughpany, i don't think -- i understand the knee-jerk, machine selling the stock off, we can't see where it's trading now, but the sense is if it trades down meaningfully, buy the stock. with that said, problem with star - >> guys behind you >> oh, there you go. thank you very much. you buy th it's just algorithms taking advantage of the headline. it's a growth problem. they are saturated in the united states if you believe they grow in china, it's screaming buy, but if they don't get their technology right here in the united states like a domino's has done already, then you have to wonder if it deserves to value the premium valuation that it's been getting. >> yeah. i'm also, karen, wondering about jab, the european brand building

a power house equivalent in coffee, everything frommings so the store shelves to every chain that's not starbucks i don't know what the long term intentions are, or if 's even that relevant you know, maybe, like an said, you know, howard schultz certainly did not rule out political ambitions. i mean, he kind of alluded to it in particular, i thought, i don't know about you >> yeah. kelly, i agree with you. to me, this says he's running, otherwise he would say, i'm not running, right i think it's very different than bloomberg running who did not have a clear party to run for. schultz does he's a democrat. that field is wide open. as it relates to starbucks' stocks, it's not a big deal. they have done a good job in succession planning. he talked about stepping back day-to-day making the transition out of ceo so this is not a really monumental event in their history for the stock.

maybe in the life history of the company, but not for the stock >> yeah. andrew, anything you want to add to that, and what do you think the important questions are going to be for him now? i mean, you're going to have the chance to sit down with him tomorrow, and i guess now he, you know, could be awhile before we know exactly what that next thing is, right? >> you know, i think there's two parts and two questions and two roads to go down during this conversation one, of course, is the future of starbucks. it's a conversation you've been having about growth in places like china and what the business looks like here in the united states how do you get that growth back here what is the technology what are the technology challenges that needs to be overcome and about then, the timing the second piece, of course, is going to be about howard schultz, the man and the future of howard schultz both in the world of philanthropy. i got an e-mail with a quote from bill gates who was excited about the potential he's going to be working my lan throe --

philanthropy, and grabbing headlines that he could look at public service >> andrew, what did -- >> we'll try to understand - >> what is bill gates' angle on this what was gates saying? >> just bill gates, obviously, from seattle, here, his father, bill gates's father was his lawyer when the father bought the company in 1987. gates had a great line, hoping, just exciting about howard's potential for philanthropy in what howard may do with that he does have a family foundat n foundation, and part of what he intends to do beyond looking at potential public service and other options in terms of giving back is the philanthropy side. >> mike? >> yeah. i was going to say my immediate thought is there is a model out there for the gates. he does not have as many billions as bill gates has to throw around the world, but, yeah, it's not a clear path to,

he's leaving starbucks, therefore, he's on the ballot somewhere. you could have a political role and public service role that's not involving, you know, running for election >> i want to be clear, h that to me multiple times. >> this is a great capitalist society, and look what i did with -- mike, if he ran as look what i did, and tax cuts, he's not going to do that, is he? he's going to be on the left, isn't he any doubt about that i don't think so >> you're asking me? >> yeah. >> you know, i think there's a lot of ways for him to run i would tell you, at least traditionally, he would be aligned with the democratic party, though, he is so far from the quote-on-quote left of the way that that party has run. i contend he's closer to the middle of the party. but the question is whether that's attractive in this environment. i think he has a remarkable -- >> he's not left enough? >> he may not be relative to the bernie sanders and elizabeth

warrens of the world, but he has an amazing and remarkable back story, really grew up in brooklyn, quite poor, often talks about starbucks being the company he wanted to build for -- that his father never got to work for. his father was a world war ii veteran, came back to the united states, had a job as a truck driver, as a taxi driver, and never had enough money to provide health care and other things for his family, and when you really look how howard schultz operated the company, it reallyfuls the same values that he talks about you know, he was the first ceo really to provide health insurance to part-time workers you ow, he offered stock options. he was offering free education and tuitions for college to employees. i think that resinates politically with some parts of the country, and, of course, we'll see whether he even decides to pursue something like that he did say multiple times to me that he does think it is very

possible to give back as a citizen to the country without running for office, so we will see. >> yeah. >> it's going to be interesting. >> stay there, andrew, guy and karen, last word from you guys before you go on how to play, g? >> i think, listen, i think, again, the problems with starbucks is a growth problem and valuation problem. i think karen said it as well. with that said, a selloff of this magnitude of percent to me does not make sense. five years ago it makes sense. today it does not. buy the selloff in starbucks >> karen >> one last thought. i know how many shares he still owns if his change in role, whatever it might be might have him put it in a foundation to be sold, maybe that could weigh on the stock, but for the -- for the -- other than short term, i don't think this is a huge event for starbucks. >> all right shares recovered, down 1% still. appreciate you guys weighing in on that very much. guy, karen, see you at the top

of "fast muoney" in a half hour jeff, i mean, do you care to speculate at all on the timing of this and what it means? >> caller: yeah. there's no secret. i think it's pretty amazing that having known howard well, i mean, i think i discovered starbucks before he did. i was out in seattle i97 and told everybody what an amazing store it was and i wish i had the good sense to do what he did with it, but watching what he did -- >> wait, jeff, are you saying -- are you saying you discovered starbucks? >> caller: yeah. that was a pre-existing store that he discovered, but, you know, i teach rather than do perfect example of missing an opportunity, but, you know, stepped aside once before when there was a guy named smith p s passed away from pancreatic, sadly, but he was ceo for five years, his predecessor, and then, again, a guy named jim donald stepped in there as ceo,

and, also, howard then, you know, pulled the rug out from under and came back in, and that was 2002-2008, and howard did magnificently each time he came back in, like michael dell coming back in dell. this time he said it would be different and people were skeptical. can they really step away from their baby he was so identified with itm t me i thought he was genuine he was self-critical in ways he was never before that he stepped away previously. michael dell and others are called generals, and they go through a fake retirement and come in and undermine successors that's what he had done. he said he learned from it this time he was not going to, and he started the roastery and various other projects out there, but, clearly, public service was only the horizon for him. >> andrew, do you want to respond to that?

>> look, you know, i think there's been a lot of speculation about public service and i imagine it's a road he's going to consider, and i imagine it's a headline we talk about starting today and probably into the future for quite some time you know, whether you make such a decision, you know, thinking about something like that and making the decision are two very different things you know, we talked for a long time about bob iger, now publicly acknowledged that he considered seriously trying to run in 2020, deciding against it ultimately as part of the 21st century fox deal jamie dimon'name, mark cuban has come on air publicly saying he would consider running as a republican, but that he's worried his wife won't let him, so, you know, let's not get ahead of ourselves where things stand. i think more than anything, this is a moment to reflect upon really what's happened at starbucks over the so many

years, and really try to think about where that company is headed, and, of course, where mr. schultz is headed. >> i wonder -- >> caller: you and kelly have to t i'm a crazy academic that d, does not have to be reasonable in august 2015, i wrote a piece in "fortune" magazine where the dump truck strategy would fail and there was strategy how trump broke through the media. it was not an endorsement, but there was a path there not going through the piece, but every element there, howard nails as the real deal opposed to the imimage by the way, andrew, congratulations for being there. unbelievable you got this story. yes, bob iger considered it seriously. i think it was 50/50 at one point, and i think, you know, up until today, it was 80/20 at most, you know, with the fox deal and the rest still happening, but defense not 100%

closed, i don't believe with bob iger, and now 95% less likely. however, howard, i think it's -- it's very genuine. >> jeff, asking about starbucks to your exper seize here, which is now for the company, the guy who is -- who most people think is the ceo and who most people think founded it, effectively, he did, but the store existed, as you said. he's gone. he's now going to be associated with something else. he's not, you know, involved with starbucks anymore what's the board do now? what's it mean for the current ceo and for the c-suite, especially if this is somebody relatively -- i was going to say heavnded, and i don't know if that's the right term to use, but a clear vision and kind of a clear way he wanted everybody to execute on it. so what do you think happens for starbucks management now >> caller: well, you know, that's a very interesting thing because if howard does not engage in something big, there is an awkwardness. kevin johnson did a spectacular job of handling the technology issues you talked about and

service quality issues, but, obviously, this flairing racial incident, so magnificently handled that as a learni moment, still, if he's going to get something wrong at some point, there's constituents, whether or not in the inside o outsat run back to howard, if he's there, looking like he's a potential government in exile. it happened to the founder of holiday inn. happened to the founder of colonel parker of kentucky fried chicken. if they are not on the inside, then they wind up becoming a potential threat, even though they don't want to be. like ray crock was immortalized inside mcdonalds pulling away. when they go to the outside, if they don't engage something else, they wind up being a magnet for isaffection of different constituents no doubt, howard is young, healthy, with such passion howard has never been a member of the business round table, not the standard part of corporate america, he's a maverick, always

engaged in social issues he's not going to stop now, but now he's unbound he's going to go soring on this. >> mike? quickly, two cents >> i wasgoing to say, you philght at nike, on the board, but backed away nobody looks at nike, and wonder what phil says about what's happening now, so there's a way to do it, i guess, i would say, and i think any of the ceos, a very high threshold for deciding to actually run for a nomination they are leaving winners ensuring there's a high probability for winning. they don't run a race as a gesture. >> andrew, thanks again for breaking the news for us any last words >> jeff talks about mana and leadership, his specialty, but i will say beyond the potential politics in all of this, i think that when you really look at what howard schultz did in the world of business, it was not just what happened at starbucks over the years and the success of that company. it's actually what he did as a leader, which we were just discussing

this idea that he effect 6:ly not only took public and social positions on social issues, but ultimately gave permission to the rest of corporate america, which we saw over the past two years now, weighed into public and social issues and political issues in ways that they never did before, and, really, it changed the dialogue around the -- >> for better or w, by the >> by way, there's people on all sides of it, no doubt, but i think when people really write about, you know, his history at starbucks and his history in business, that's going to be his real contribution. >> yeah. absolutely >> yes >> caller: by the way -- >> sorry, jeff, e to go. >> caller: sure. >> andrew breaking news for us that howard schultz leaves starbucks all together tune in tomorrow morning for the exclusive interview with mr. schultz tomorrow 8:00 a.m. eastern on "squawk box." the shares are still down after that news. wilfred frost sat down with jes staley to talk banking

mergers abroad >> mergers are very disruptive they can cost a lot of money to make them work i think you have to be mindful of where the regulators sit, and,, you know, two sifi system the regulatory environment >> more on that in a bit, and developers conference in san jose, the focus in software, but in new york, analysts are concerned about hardware, specifically iphone as apple closed at a record today that's coming right up

[thoughtful sigh] still nervous about buying a house? a little. thought i could de-stress with some zen gardening. at least we don't have to worry about homeowners insurance. just call geico. geico helps with homeowners insurance? good to know. been doing it for years. that's really good to know. i should clean this up. i'll get the dustpan. behind the golf clubs. get to know geico. and see how easy homeowners and renters insurance can be. no one thought much of itm at all.l people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it' not small at all. energy lives here.

i support the affordable care act, and voted against all trump's attempts to repeal it. but we need to do more. i believe in universal health care. in a public health option to compete with private insurance companies.

and expanding medicare to everyone over 55. and i believe medicare must be empowered to negotiate the price of drugs. california values senator dianne feinstein wilfred frost sat down with jes staley a half hour ago, and he's back with the highlights. mr. wilf >> kelly, yes, indeed, you played that clip about possible european bank mergers going into break, and despite the fact scale asset banking, he was clear barclays is not making an approach as been reported recently separately, i asked how president trump'cision to impose tariffs on the likes of the u.k. and eu have gone down on the other side of the atlant atlantic >> well, i think one of the first questions is, is this move

tactical or strategic? is there really a pullback from the global system of free trade or the attempt to get to a free trad globally, or is this a first step in a long negotiation, raising tariffs has obviously got a response, whether it's canada or france or whether it's the united kingdom. you know, the united states is for so long taken a leadership role in navigating the regulation of the global economy. i think there's a real concern if there's a pullback, what the implications w be. i'm sure it's a hearty discussion elsewhere on comments about barclays investment bank, bullish as he's been on trading, making it clear over the last two quarters, he's got roes back in the double digits and started to take share from the u.s. investment banks, of course, a trend we'll have to see if that continues when banks report the next quarter kelly? >> you know, i was also

thinking, remember we talked about dimon, and he didn't think the economics were so much in favor versus more of the, you know, regional, national giants is backingknow, ths -- i wonder the trading thing might be a big deal and help in the environment, but it's a tougher business to run these days, isn't it still >> it's a tougher business, and it's still a small part of the business as well, of course, for barclays, but there's. a lot of restructuring that they put behind them, and it's very claer. we ha -- clear look at moves last week that continental europe's banks had their own troubles yes, u.s. banks are strong, but the strategy from jes and barclays is to think that somebody has to be there as a different option for the u.s. banks, and, of course, he hopes it's barclays. >> all right, thank you for sticking around, great interview, appreciate it very much >> see you tomorrow. >> see you tomorrow! up next, apple closing at a

record high today on the heels of the worldwide developers conference speak with the analysts from goldman about althe highlights from tim cook's presentation and what jumped out to him

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but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest. apple holding their investor conference, and joining us is goldman analyst, rod hall, love to know what jumps out to you. i see here you're, what, 164 price target on the stock?

this move the needle for you >> yeah, that's right, kelly not moving the needle too much the reason we have the price target in the unit stiestimateso the year goes to replacement rates on thepi iphd at this poi accelerate later this year >> rod, implicit in that is the idea you don't think that investors collectively are ready to revalue apple, you know, based on more of a software type model based on the idea it's stretched out consistent cycle, but has to be something where we look for the renewal rates, you know, say in the next few quarters >> yeah. that's right, mike a lot of the software growth or services growth, as we call it, has been driven by royalties that apple gets paid by people like google over the last couple years, and so the underlying rate of growth in the app store is good, but not enough to cause rerating of the stock, in my op >> rod, imessed.

you are sitting there, i mean, $30 over the price target, you're sitting tight in the race to a trillion? >> yeah. we're happy where we are >> all right and where he is now is at that developers conference, rod, thank you for joining us today, appreciate it. >> yeah, no problem, kelly, good talking to you >> rod hall from goldman sachs we'll talk to the ceo of roche when we come back here on the "closing bell," stay with us it's pretty amazing out there. the world is full of more possibilities than ever before.

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welcome back big news this hour as starbucks executive chairman, howard schultz, announces he's stepping down from the company. that's why the shares are down about one-third percent. the big question is what will he

do next? here's what he said in april about his long-term prospects at starbucks. >> i said from the very beginning that i'm here to stay. i'm working on our project doing everything i can to support kevin. we had a big announcement this week in announcing the iconic crate & barrel site on michigan avenue in chicago. we're under construction in our shanghai roastery and under construction in our new reserve store. obviously i'm doing everything i can to support kevin and the team. >> sitting alongside the current ceo, mike. i wouldn't expect him to say anything different. >> no. here to stay obviously open to interpretation i don't think you would have heard that and said he means less than two months, but clearly leaving options open once you've left once and are only on the board and you're the founder and the ceo is trying to assert himself over the company, i guess it makes some sense. if there's going to be an expiration of any next act, you would think it probably has to be now or soon. >> and he's putting it out there.

he's signaling to everybody that he is exploring those kind of options. we'll hear a lot more tomorrow morning. tune in, there will be an exclusive interview with howard schultz at 8:00 a.m. eastern we'll looking forward to that. the annual american society of clinical oncology conference is under way in chicago. meg terrell is out there with the ceo of roche for us. >> thank you so much the ceo of roche joins us now. >> thanks for having me. >> you were showing that your immunotherapy drug in combination with chemotherapy worked better keeping patien disease at bay by something like 29%. but merck has already made a lot of headway how do you compete there >> it's great to see the progress that's being made in lung cancer, a disease that only a few years ago had very few options. there's no one size fits all with cancer patients with lung

cancer our goal and our teams are working on providing options for patients -- a treatment option for every patient with lung cancer we have a very comprehensive program with our cancer immu immunotherapy and lung cancer. we have eight phase three trials going on for lung cancer only three have read out so far and all of those have been positive so five more to come, so stay tuned. as you mentioned, we also saw with another trial presented here today in terms of personalizing cancer care and lung cancer and cancer immunotherapies that when you have difficult-to-treat lung cancers, those with genetic mutations or where the cancer has spread to the liver, we show another medicine really provided stunning results for those patients. >> we'ng a lot clinical trial results here at the conference, but there's been a big push, particularly from the fda, to use real world evidence you made a big purchase earlier this year of flat iron, a

company that is doing that, using a.i. and big data tools in order to get that data from real world settings, the way these are actually used once they get out of clinical trials how is that affecting your drug development strategy >> in a big way. as a leader in cancer medicines, we believehat the ination of medicines combined with sophisticated diagnostic testing combined with big data will transform the way that we do our research and development and get our medicines to patients. flat iron health is a great example of that. we acquired them to accelerate their mission and vision what they do is they follow the real world journey of individual patients out there, help their physicians make better decisions for them and then they bring those individual journeys into a large database that now has more than two million people. also that data is available to the entire life sciences community. but what we're seeing with that two million database is that we're able to better understand how are medicines really being

used out there what type of impact does that have on patients and importantly then we can use those insights fo at roche and genentech to go back and say how do we find the next best medicine for patients so this is really exciting, particularly when only 4% of patients ever participate in clinical trials. so flat iron health is working on the other 96% they think that's going to be really powerful and help us discover new medicines. >> certainly a topic we'll hear more about dan, thanks so much for joining us >> thanks for having me. >> thank you both. up next, a potential red flag for bitcoin and it has to do with google searches. we'll explain right after the we'llwe started making winehe in 1948... [sfx: bottle conveyor] one bottle at a time. today, we produce nearly

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google searches for bitcoin have dropped 75% this year which is one reason he's cautious on the cryptocurrency he uses the searches as a proxy for new buyers, mike, which shows you it's a greater fool theory if you need constant new buyers coming in -- anyway, do you think that's all over or are we at a temporary pause >> the speculative fever definitely broke there was an intense rush of adoption but also what is this thing and people had to get the

learning curve once the price momentum broke, there was less impetus to figure out what it was all about. >> i thinkt was thksgiving that it peaks. but just in terms of everybody talking about it. >> totally. >> and the swiss have this vote coming up on whether they're going to get rid of fractional banking and just go directly -- they have a crazy -- and how crypto fits into -- it's not just about bitcoin anymore. >> i still contend that the intensity of opinion on both sides of the block chain cryptocurrency thing tell you it's okay not to have an intense opinion about it you can just sort of see how it sorts itself out because nobody absolutely knows. >> on a slightly more serious note, microsoft today bought github to me i was just surprised for a small $7.5 million steel, it's a small stock deal. >> i wondering if that's the sellers' preference somehow. are you trying to lock up a

long-term situation. >> the stock is like at an all-time high. >> microsoft can snap its fingers and write the check for $7.5 billion if they so chose. when they bought linkedin it was for cash it was positive for microsoft because they were turning all this unused cash into a business instead of sitting there earning nothing. >> michael, that much. that does it f "closing bell" today. "fast money" starts right now. live from the nasdaq market site verlooking new york city' times square, your creditors are here shares of apple have been going insane hitting a fresh all-time high and things are about to get even crazier for the stock he'll be here to explain why. plus the bitcoin bear is out in full force. tom lee says they are getting it all wrong. he'll take us bitcoin bear hunting. first breaking news on starbucks. the stock sinking as executive chairman and former