manafort investigation most principally, i would assume. >> it would appear to be a spinoff from the manafort situation. >> thanks very much, eamon >> you bet >> and thank you for watching "power lunch." "closing bell" starts right now. this is "the closing bell. i'm wilfred frost. banks rally and tech stalls. we'll assess which areas of the market you can still make money in i'm julia boorstin facebook says it has shared data with chinese phone makers. what that means for facebook and the users. i'm leslie picker. how hedge fund managent may benefit from changes at athena health and i'm kelly evans. a new report says 40% of housing markets are overvalued we've got the details coming up on "the closing bell." and welcomto "the closing bell," everybody we're going to get to all of

those stories in just a moment, but let's get you up to speed in the final hour of trade today. the dow's kind of lifted off here we're up 288 points. it's better than a 1% gain and about twice as well as the nasdaq and russell are going today. although they both hit intraday highs once again nasdaq today 7676 or so. >> it's been a solid and steady rally. let's kick things off today with mike santoli a look at the tech stocks that have been left behind during the sector's rally mike >> you know, there haven't been that many of them. this tech rally has been pretty well inclusive the nasdaq as a whole is up 11% year to date the s&p sector up nearly 12% and of course those fang stocks have been getting all the attention. even software is a group up 25%. however, you can find some isolated larger tech stocks that have not at all participated in fact, some of them down on the year to date i collected a few of them. and really there's no particular

theme except they are mature tech companies that do not have a lot of earnings growth expected this year so whether they are cheap on that basis or not, i think you have to make the determination so this would be corning is down 10% year to date it's not a good looking chart as you might imagine. qualcomm, a lot of issues we know in terms of mergers and licensing revenues and the rest of it. these are all trading at a discount to the overall nasdaq which is at 22 times earnings. the question you have to ask, though, is after the market's been in rally mode this long, after people have been grabbing for every kind of tech stock is if it's left behind, is that telling you something about the business if you've been excluded from this club, can you get it anywhere >> if we think of the broader nasdaq rally, is it to be investing over the next couple of months opposed to people in love with the outward. >> i think it's a combination of those things right? a lot of other stuff seems it

has some kind of an issue. some kind of a major, you know, on the other hand type of a clause every time you think to make the case. yes. i think there's a purity to the tech stock case. if it's not there with other economy areas. >> we're seeing the dash for trash in these stocks. >> these aren't moving rig now, but i think they're at a point in the rally where people start to grab for what hasn't participated because you have such a spread between the winners and losers after awhile >> no offense to those stocks, we're not saying they're -- >> you can find valuable stuff in real trash. come on. >> that's true that's an important thing to do. and not for -- anyway. mike, thank you. we'll see you next hour. kim forest, steve grasso, and rick santelli with us now. welcome, everybody steve, up 300 basically on the dow right now. what do you think is going on here >> today there's a rotation out of fang into bank stocks that haven't performed as of late and i think everyone was waiting for those financials to sort of

kick into high gear and give a little push and tail wind to the economy -- to the overall stock market i think we're seeing it today. but we've talked about it a lot. fang is both growth and defensive names. of fg to mike's point, therehain is some trash. look at snap i'm long snap and i don't want to say it's trash because it's what you said before so i'll dig the hole deeper than you did. but this is a company that was thrown out it got to that peak pessimism point. same thing with tesla. there's a lot of names that -- >> one man's trash is another man's treasure >> right these e good companies but they're not looked upon as quality names. now you're starting to catch a bid and that pushes the market is little bit higher we've shirked off every kind of negativity in this market place. we're heading into g7. maybe there's an upside. we're heading into north korea meetings we've got a couple deals that are supposedly closing in the

next week or so. so i think there's a lot of tail winds ong withhat corporate tax rate >> kim, within the tech sector, what do you like at the moment >> well, i always like productivity enhancing tech opposed to productivity decreasing tech. what does that mean? that means your microsoft and your companies like ca that does mainframe software versus things like facebook where, you know, you're not that productive when you're looking at your friends' photographs. but anyhow, that being said, really these are the elements that businesses run their businesses on. so it's always kind of a valuable play. and i think, again, to your earlier guest, that some of these have been thrown out because people either don't understand them or just don't understand the drivers that are. so i thinkou deeply have to understand what you're buying and when it might turn around. >> what about netflix, kim

does that -- is that for you productivity destroying? what about google? where does that ll >> google's a tough one. netflix, i think they have to -- you know, they are a content provider less of a tech company although they do deliver things via tech, right? but you're paying up for those eyeballs so you have to believe that they have some kind of formula that they're going to be able to make content that is, you know, unbelievably compelling forever and ever but google is tough. because i think they are a great ad platform. their cloud offering shouldn't be diminished. and they have a whole lot of these other ancillary efforts that may pan out and be productivity enhancing but it's hard because it a big conglomerate at this point of tech >> rick, banks are enjoying the move in yields today

is that something that's a start of a longer term range again or something that rebounds and watches yields rising which will soon be reversed >> well, to quote sir arthur cohn, the game is afoot. i think this has to do with what's going on with the ecb that next week they're going discuss pulling the plug on quantitative easing. this is huge this is huge d it explains rates. and it explains why rates have done a u-turn. we have italy today. their 2-year was up 15 basis points their -- excuse me 35 their 10-year was up 15 basis points while that was going on, we saw bund yields up ten basis points. i guess what i'm getting at here is rates are ploufmoved up becae mario draghi is going to have to deal with the rail we went through decent resistance around 2.95% like a

hot knife in butter. but we moved through it and never cameack and tested it. it's going to be the highest yield close in our 10-year in the long end in about two weeks and i really don't think that mario draghi is going to be able to deliver type of notion that investors seem to be most afraid of. so this could not only be an aggressive trade, it could be long lasting with multi-turns especially towards the end of next week. >> yeah. that's just another thing to think about. just quickly circle back to you. one of the names that came up when mike was talking about tech undervalued tech putting it kindly was ibm and you mentioned the mainframe with ca. what do you think about big blue >> you know, i think big blue is trying really, really hard to get the best out of its assets and it's not necessarily technology it's client list there's a lot of clients that really depend on them. and i don't think they're dead yet. but i don't see that catalyst for the stock moving higher yet

either so it's in that horrible, like, neither fish nor fowl. i don't know ke an eye on it. i wouldn't ba buyer. >> and finally, steve? >> ibm just to talk about what kim finished up on, ibm has that cloud play that is grossly underestimated in the entire cloud sphere, if you will. and it's in the mid-30s as far as billions that they're accruing on revenues plus there's a technical setup, i guess the 139 level this could pop to the mid-150 it's a nice pop for imb. >> and steve quickly, another tech name. twitter. has the rebalancing fect finished now >> some people get ahead of the rebalancing. some people wait for the day of. some people say it's too pricey now. it was up 4% or 5% yesterday, let me wait. itere's no rhyme or reason to but a lot of this stuff, the deal cou play out in the next couple of days >> jt the atmospheree, right

i'm long both, full disclosure >> thank you, guys appreciate it very much. talking about the markets today. national economic council director larry kudlow earlier. here was his take on the economy. >> the united states economy is growing. we're pushing through 3% i think president trump's licies of lower taxes and major regulatory rollback are a key part of this issue and i also think his role as a -- probably the strongest trade reformer of the past 20 years not only protect american interests but to open up avenues of growth for our business and our workers. and frankly to help open up world growth >> joining us right now on a first on cnbc interview is kevin

hassett. very good afternoon to you thank you for joining us >> thanks. it's great to be here. >> we heard the term there trade reformer, kevin. is that going to include some short-term headwinds to the level of economic growth we're seeing >> well, i think uncertainty always rises when there are changes afoot. but i think larry is rht to characterize the reform or the changes as reform. in fact, i was at an event this morning with the secretary general of the oecd where they put out a study about the u.s. economy and they had this box where they said suppose that donald trump's vision of fully reciprocal trade were realized, and the answer was global growth would go up a lot. the u.s. trade deficit would go down china would end up with a net trade deficit. and that shows that basically -- and it would be better for the u.s. than for everybody else so basically what it's doing is proving that the president has a point. that the global trading system has disadvantaged the u.s. and if everybody else would reduce

their barriers to our level, it would be good for them and good for us >> i'm sure you -- >> that's lost in this trade war discussion so the president is a reformer larry and i have had numerous, numerous meetings since he got here with the president where we've discussed trade. larry is accurately describing our conversations when he says this is a reform agenda. zblifs goi >> i was going to ask about a different piece that was mentioned in the oecd. but this announcement of social security dipping into the trust fund and with those and medicare running out of funds, can you explain how you think this all gets resolved? do you think it just looks bad this year and the picture starts to brighten? or do you take that issue pretty seriously? >> right of course if you look at the long run balances that there is a problem that economists have been saying for years need to be addressed. and a problem that needs to be addressed. in the short run, there's nobody getting social security or medicare that needs to worry about their benefits this is something that congress can finance until they get

around to fixing it along with the president. you know, this is something that in the long run we're going to have to deal with. but i think the president was right in the short run to prioritize, you know, taxes and deregulation you can see that in the numbers that larry was talking about in that clip. we have gone from the new normal of 1% or 2% growth to normal which is around 3% growth. and we've done that because of the priorities that the president set for the first year >> kevin, we discussed a lot on this channel the impressive unemployment numbers we got last week and months prior to that i guess on the flip side, is there a warning sign there though are you concerned about the demographic outlook of the united states and perhapthe availability of workers moving >> yeah, you're right that if you look at the jolts data this week, for example, we've got more job openings than unemployed people for the first time in history. it is something of a concern going forward. there's all these people left the labor force because they were discouraged by the previous president's economy. now they're coming back into the

labor force. i have to update the latest calculation for the releasetha came out with did this for the previous release and found there are already 900,000 people out of the labor force that got a job since president trump was elected. so, you know, this hot economy is going to pull people back in. but the other thing is that when you start to get short of labor which happens in every business cycle is firms invest in capital in order to make their own firms more productive. we put a tax cut in that lowered the capital at the right time. that's one reason you're seeing such strong legs this late in the recovery >> kevin, are you going to be the one briefing the president on the next jobs report? >> we'll have to wait and see where he is. but i've briefed him before and he's much into the data and enjoys the briefings >> but i mean, come on so i guess it was larry last time, but -- why do it anymore, right? why even do it what is the benefit? >> come on he was looking forward to seeing the data and i was looking

forward to seeing the data and i get it that we can't be in the business of tweeting, you know, the night before every jobs report. but he did not reveal the number >> i'm not saying he did i'm just saying let's put that aside and just say tell me on what basis it's really important to brief the president the night before on the jobs report and other stuff going forward. it might n be so important kw, in fact, as the cea chair, i get every government data item the day before and write a memo for the president the day before he gets the numbers -- or you get the numbers. and the reason we do that is we're kind of the early warning system we watch the data the day before that's coming out so if there's a big surprise, something that might rattle markets, that we have a plan in place to help settle them down that's something that's happened for years and years and years and it will continue to happen under this white house and by the way, the cea career staff have exples sit rules to follow to make sure to protect the data we follow those carefully and to

watch if anything comes out. we've been good about that since i've gotten here >> i wanted to go back to trade for a final question in relation to the recent tariffs in a press briefing yesterday, you said that the president wrote the art of the deal as if to alludeto the fac that these could be negotiated tactics. are these being used as pawns in a bigger debate with china at the time being >> i think the president just wants reciprocal trade deals with our partners. he is a person who knows how to negotiate. i'm not a person who knows how to negotiate, but we've got to get people to the table. i've spoken in the past with previous cea chairs about how frustrated they were about the fact that other countries aren't as open to u.s. imports as we are to their imports into our country. and they've tried to fix it and they've failed this is a president who's serious about fixing it. if you go back to that report this morning, that's hopefully in the end going to be good news for the global economy

everybody else reduced their trade barriers to our level, it would increase global prosper y prosperity. >> what's the punishment, kevin, if someone in your office were to leak the data that's a strong incentive out there, you know? >> it hasn't happened. and i've not been briefed on punishments and things like that but if you'd like me to get back to you, i can. >> i'm just curious. prosecution, lose their job? it's tantalizing when you have that >> there are a couple of stories in "the wall street journal" and elsewhere where people talked about the data getting out in previous administrations so you could go back and look at what the legal people thought about that back then but i can tell you we're really aggressive about making sure it doesn't get out. and it hasn't gotten out since i've gotten here >> thank you for joining us. >> thank you >> kevin hassett still ahead here on "the closing bell," tesla shares surging today as elon musk described a hellish several months at the company. his full comments from their

shareholder meeting coming up. while facebook deals with another controversy, it could be making a play on youtube we want to hear from you reach out to the show. "the closing bell" is back after this

♪ welcome back to "the closing bell." 40 minutes left of trade the dow just shy of 300 points now. 1.2% the s&p is up and the nasdaq is the laggard today. more scrutiny on facebook as data sharing issues don't seem to go away the latest headline has partnerships with at least four chinese firms. julia boorstin here on set with us has more on that. >> that's right. facebook and four chinese clinics companies have data partnerships to give more access to facebook on their phones. huawei which has been flagged as a national security threat "the new york times" reporting that these deals are among the 60 partnerships with phone makers which provided access to

users' private data for integration into their phones. facebook responding to this report that it controlled the integration with these chinese phone makers and approved the social experiences the company built with data and adding that a wind down with huawei by the end of the week. facebook's vp of mobile content saying, quote, we want to make clear that all the information from these integrations with huawei was stored on the device. not on huawei's servers. still this raises more questions. thune demanding facebook provide data about those partnerships. guys >> julie, clearly the share price effect of this is far less than it was a couple of months back when it was more fresh. but that said, is this another example of facebook being fairly reactive to when they have to release data and apologize opposed to proactive didn't they say now they're going over everything? >> they are going over

everything although i think this is a different scenario than t"the closing bell" -- cambridge analytica scandal. before it was common for people to have apps, this is how you got access to anything other than e-mail on your phone. huawei did disclose this partnership back in dwlechb. i think that right now there's so much more scrutiny on everything that facebook does and the potential implications >> it feels kind of like business as usual except it's like we'll stop doing it now >> instagram could start enabling users to share video up to an hour long. right now the limit is 60 seconds. this is according to a new "wall street journal" report out just

today that says that the company's in talks with creators and publishers to create these longer videos. they're very popular used by about 300 million people daily now, facebook says no comment on this "wall street journal" report, but it all comes as facebook invests more in longer form videos for its watch tab. just today unveiled its new shows for watch. now, investment in longer content could be designed to help facebook and instagram gain on youtube a pugh study out last week said youtube is the most popular platform with teens used by 85% of respondents followed by instagram, snapchat, and then facebook of course in light of all those brand safety concerns, the market from premium ads could be very appealing especially if it goes into longer videos on ins

gra instagram. >> facebook has been able to attract users with different things with instagram. this makes it more similar to the parent app and facebook. >> we'll see i think the experience is still going to be very different if you look at how they are handling watch it's something to watch while doing other things on facebook facebook is a much more dare i say cluttered experience instagram is very streamlined. the video they're talking about is vertical video. all watched in that one stream probably without a lot of other things going on. >> i want to know when you can dvr ads online now they can all go online, but they're not going to stay that way. the consumer could ultimately be like, enough >> there are ad blockers which is different it's less within videos. >> we love the advertising industry we depend on it. yet it does drive us crazy julia, thank you very much coming up, gold's price action has been dull this year but a major jeweler seeing a pop

today. we'll tell you why and coming up, it's been a rough stretch for elon musk. >> it's like -- this is, like, i'll tell you, the most excruciating hellish several months i've maybe ever had >> tesla's stock on pace for its best day since 2015. we'll bring you the comments mi srient sharesoang cong back in a couple minutes. it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year...

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welcome back to "the closing bell." sectors of the s&p are mostly positive today right now 2/3 of 1%. financials are leading the way the 10-year yield has gone nearly back to 3%. lagging the only two in the red today, consumer staples just barely and utilities down now time for the quote of the day. shares of tesla are trading up in today's trade they're on pace for their best day since november 2015. it follows the company's annual shareholder meeting last night shares up some 10% ceo elon musk delivered an optimistic outlook for production saying the company could meet its production goals sooner rather than later >> we just did a big set of upgrades and i think it's kbiquite likely we'll achieve a 5,000 car a week by the end of this month

>> now, that may help explain some of the -- it's a huge move for the shares to be up 10% right now. even with the company's recent comments, the last few months have been extremely challenging. >> it's, like -- this is, like, i tell you, the most excruciating, hellish several months i've maybe ever had and a lot of other people at tesla. but i think we're getting there. >> and we know they've had a lot of excruciating months over the years. shareholders again voted to keep musk as chairman they discussed whether to split the ceo and chairman role. they voted against it. >> it's important because he's been in the cross hairs significantly. let's discuss this further collin, i'll start with you, if i may. do you believe his production promise? we've heard many such like it

before do you believe it this time? >> well, it's so short-term that it's very believable at this point. the question for us really is how much automation is really being used at this point how much is manual assembly to get to these numbers and i think that's really going to be driving margin but more importantly the long-term efficiency of the platform which is the real margin driver for tesla. and i think that's the question that we want to get answered and we want more detail on as they get closer to reporting. >> why do you think the stock is doing so well today? >> well, i think that right now we're in the no bad news is good news stage for tesla they had a whole slew of bad news that got down to close to 250. i think now that we're getting closer to that deadline of june 30th for that production rate and the confirmation that we should get if not exactly there then close to 5,000 per week i think that's giving shareholders a reason to be

enthusiastic >> what do you take of him saying it's the most excrucia excruciating hellish months. does that worry you the level of pressure he's clearly under? >> he's certainly not shy about hyperbole. i think it has been a rough go for them here. they made a couple of areas more difficult than they needed to be the over-automation of the line. and of the product in certain cases. as we look at them going forward, you know, i think they still have some challenges to simplify the manufacturing process and streamline it. so they may be over the initial point on this, but there's still a lot of work to do. especially as they look at china. >> what would make you more positive on the stock? >> well, you know, we always look at valuation. but if they can show that they

can have a good glide past the 10,000 vehicles per week and efficient margin rate, that would be something that would help us become more positive doesn't mean we'd change our opinion on the stock but that would be good news. >> holy cow. they got to ramp up. thank you, both. tesla's shares up nearly 10% in the session today. time for a cnbc news update. >> hello, everyone here's what's happening at this hour president trump signing the veteran administration's missions act of 2018 giving veterans more freedom to see doctors outside of the va system it is a major shift aimed at reducing wait times. a bit earlier, he praised the bill during a signing ceremony the the rose garden. >> if they're waiting on line for nine days, why aren't they going outside to see a doctor and we pay the bill? it's less expensive for us

it works out much better and it's imcare. authorities cautiously resuming rescue operations in towns devastated by the eruption of guatemala's volcano of fire at least 75 people have been killed, but that toll is expected to rise at least 192 people are missing. motorcycle racing fan prince william joining other fans to watch the isle of man titi races. a little later he presented the winner with the race trophy. congratulations to all you are up to date that's the news this hour. back downtown to you guys. >> i thought you were going to say a little bit later he got on the bike himself as that video sped past. that wouldn't be allowed >> harry might >> harry more likely >> yes >> less risky.

zblilds thi >> i would think so. nothing can happen to william. you can't let him get on one of those bikes. or maybe harry wants him to. i'm kidding. >> kelly, you are too funny. ang lot of other things, so to speak, would have to happen before harry takes the throne. we'll leave it at that >> we know you meant that totally tongue in cheek. meantime, coming up here on "closing bell," if you're thinking about buying a house, you may want to act fast we'll give you surprising new data on where home prices are headed officials are warning the social security fund will be depleted by 2034 now ahead the former head of the administrati weighs in on what changes need to be made. ♪

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i knew something had to be done. hurricane sandy really woke people up, to showing that we need to invest in this community. i knew having the right partner we could turn this place around. it was only one bank that could finance a project this difficult and this large, and that was citi. preserving affordable housing preserves communities. so we are doing their kitchens and their flooring and their lobbies and the grounds. and the beautification of their homes, giving them pride in where they live, will make this a thriving community once again. ♪ welcome back to "closing bell." i'm kayla tausche. senator bob corker the tennessee

republican and chair of e the foreign relations committee formally unveiling legislation that would require congress to approve any on a national security basis the legislation would apply to tariffs under this 232 statute going forward. and any tariffs under that statute brought in the last two years. it is brought by partisan support. and corker unveiled it despite the fact the president asked him to drop the effort many gop senators are here at the white house right now meeting with the president on trade issues there are about a dozen of them who have made this familiar trek over and over trying to talk the white house down from this tariff policy although unsuccessfully up until now. but it appears that congress is going to try to take matters into their own hands an aide to one of the sponsors of this bill is the hope is to fold it into what is seen as a must-pass defense funding bill with the acknowledgment that the

president wouldn't sign it if it were a stand alone bill. we'll see where it goes from here for now, back to you >> they have to pass this, though i mean, is that assumed, kayla or is this done? they're just starting this process, right >> well, they're starting this process with this particular amendment. but they're hoping to put it into what is a pretty much fully baked defense funding bill, defense authorization bill that could be voted on next week. so they understand that is a must-pass piece of legislation that the president wants to green light as soon as possible. so if they put this in there, he's going to be hard press ed not to sign that. >> okay, kayla thanks very much kayla tausche for us outside the white house. switching focus, a key day of debates and votes around the uk government's brexit bill will take place next tuesday. the most important and disputed issue centers on weather the uk should stay in t customs

union. both have added amendments to the bill that now have to be voted on there's a risk for may that the main majority of mps will vote to keep the uk in the customs union regardless of the party allegiances and the vote for a soft brexit. if this does happen, prominent members of the cabinet and may's conservative party may resign which could force a vote of confidence in teresa may so a crucial vote for her and the likely shape of brexit even today in parliament, things heated up with a lot of exchanges. all focus ahead on that set of votes. >> the key thing that happened today was that corbyn introduced this amendment, right? that's now going to force a different kind of vote on brexit or it might get people out of the party. >> it was part of the votes piled into next tuesday. adding spice to it it was the house of lords that

forced there to now be votes on it opposed to just may >> is this thing not going to happen >> no, i think it's still highly likely brexit happens. the question is the shape of it. and teresa may has been trying to walk the tight rope of balancing some remain favoring mps versus the right wing of her own party. and if she doesn't manage to balance it, one set is likely -- >> and in britain the government seems to fall like that. it's just, well, we lost confidence new elections. sorry. >> yes, but we could also just have a change potentially of the conservative party again, we haven't got any resignations yet >> as the nuclear summit june 12th >> and the at&t/time warner decision as well >> busy day. meantime, house prices continue to rise more than twice the rate of inflation. what's behind the surge and what cities are considered over valued

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welcome back sharp gains in home prices are continuing that means they're seeing values higher than some economies can support. diana olick joins us with more >> it's the supply in housing that pushes prices higher. values jumped in april compared to a year ago. that's slightly less than the 7% annual jump we saw in march, but it's still making more markets unaffordable in fact, of the nation's 50 largest housing markets, 52% were considered over valued in april. core logic determines affordability by comparing home prices to their long run sustainable levels based on localincomes a market is over valued when they're 10% higher than sustainable levels an increase from march when just 50% were considered overvalued in april 34% of the largest markets were considered at value and only 14% were undervalued.

now, not all expensive markets are considered overvalued. san francisco, for example, where prices are up more than 12% from a year ago, that is considered ad value because local incomes in the area can support the home prices. boston is also considered at value. over valued markets include denver, washington, d.c., houston, miami, new york, las vegas, and los angeles home prices continue to rise at more than twice the rate of inflation and again that's all due to this supply crisis. lots of demand no supplies. so you know when you're out there looking for a home, it ends up in a bidding war more on cnbc.com back to you guys >> i saw the word -- the term housing bubble used for the first time in a journal op-ed i think on friday. i don't like where this is going. >> diana, duh toes the overvalud tag quickly lead to a correction if the wages don't move up to meet that? >> when you see rising mortgage rates, they tend to put a chill on home prices a bit

but that doesn't seem to be happening. this a unique market because of this supply crisis and people continuing to want more housing so until the builders put up more homes, that's when you're going to see prices start to fall but so far we have not seen that yet. >> yeah. >> okay. diana, great stuff diana olick for us meantime, a big rally for stocks today across the board 12 minutes left of trade we're near the highs of the session. we're up 1.2%. time for a mystery stock chart. here's one that's down over the past week. but also just got a double down graid from a wall street firm. we're going to reveal that next right ren longel (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play

(bell ring)

welcome back to "the closing bell." it's been a decent session we're up about 1.25% up above more than 300 points again on the dow the s&p 500 and nasdaq behind that let's check in on individual market movers. signet movers seeing an increase in same store sales and increase in bridal and fashion to new product. i'm not an expert on this brand. >> maybe you will be

>> oh, one day >> i told you my hypothesis. >> what's that >> that you're going to marry an american woman and maybe you can go to cignet do they own -- they went to jared? anyway >> let's talk about first solar. the firm cut its price target 46 from $87 a share saying china is likely to put pressure on margins. only thing i'd say solar, hugely volatile sector. some day the economics are pretty good. if you were to do solar installation with a battery, you know, that's why i think the tesla power wall is interesting. but it's pricey. >> absolutely right. it's getting so much better. but still a sign today where a government's changing position on it can affect the stock price. it's still a big factor. down 4.6% we've got seven

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welcome back to "the closing bell." we've got about four minutes left of trade. let's start with the intraday s&p 500. beautiful chart to look at green throughout the day essentially green throughout the day. a little volatility in the first hours. since 11:00 a.m., gaining steadily and we are right at the highs of the session as we approach the close. if we switch and look at all four, the dow is the big leader. it was the laggard yesterday but it's up nicely over 1% or 320 points almost as we approach the close. decent gains for both the nasdaq, s&p, and the russell as well in and around 0.6%, 0.8% let's look at the sector performance today. not everything has taken part in this rally banks have led the charge. financials up 1.8%

materials have been another good day. they did decently recently when interest rates are a factor, they're a factor today let's look at the 10-year. we got a chart for it over the last couple of weeks and we're getting back close to that 3% of the level on the 10-year. levels are rising partly because of that talk from the ecb that they will, indeed, remove their stimulus coming forward. that's dragged yields higher in europe there's that last two-week chart. you can see we're back close to those highs. but we're not quite above the 3% we know that helps banks and the retail banks in particular here is bank of america's chart year to date but decent jump today. over 3% for bank of america. still not back at its highs. but a nice tick up it's got the biggest retail exposure going to bring in seema mody as we approach the closing.

the yields rising, you might have expected to see the dollar respond more positively. because european yields have risen as well, in fact the dollars are softer particularly against the euro >> we also had the u.s. trade deficit reducing we saw the dollar tick lower on that as well that's one of the reasons that multinationals outperformed today. caterpillar, boeing. that helped the dow move to the upside the dow the biggest percentage gainer for the day but continues to be a source of strength the nasdaq, can those continue in the face of rising yields what will it take for traders to say i no longer want to buy stock? some people here saying we're still a ways away from that. >> long away from that and the nasdaq and russell yesterday standings out in a way whereas today they've not taken it higher. they tend to do better on the negative trade >> we had the japanese prime

minister shinzo abe visiting the white house again. trade will be discussed as well as north korea so expect more headlines on that front. meantime, dollar continues to move lower but i think to your point, ecb coming up next week. including the fed and the boj. what a fun week for all of us who enjoy central bank talk. >> huge amounts of things on the agenda next week, of course, with the career summit as well and the brexit vote day. if we bring back the performance of the sectors, there's a couple of other interesting ones to talk to. energy not doing too badly despite the softness we've seen in the oil price and oil prices down around 1.3% today. of course they have been very soft of late allowed to play catch-up >> absolutely. and earnings still a big part of the discussion we have four industries, a big underperformer this year down 35% reports after the bell tomorrow. we have broadcom earnings still a big part of the story. >> interest rates are the main driver today

of course the 10-year as we said not quite back above 3% but it's dragged the banks higher having the best day since late march. bank of america leading that index higher we're up 340 points higher on the dow at the close marine max ringing the bell and cocrystal at the nasdaq. welcome to "the closing bell," everybody i'm kelly evans. the dow going out in highs after the session. 343 points on the close. that puts us also above 25,000 for the first time in at least a couple of weeks on the close we kind of did it in laze may, pulled back, now we're punching in again a lot of that owed to the performance of gold man, jpmorgan in terms of sectors today on the rebound

the s&p 500 up 23 to 2372. and still at 7689, that is a new record close for the nasdaq. the russell 2000 is also up two-thirds a percent today we've got a couple of earnings on deck. we're going to get results this afternoon from five below and thor industries. bring you those especially if they're big movers and if you're planning to collect social security in the not too distant future, you might want to rethink your retirement savings plan. we will delve into that coming up joining me now michael santoli, charlie babrinski topping the dow today was boeing ge, mike feel like a broken record here. >> just much of a drag

yeah it seems to be really deflating again. >> too bad $13.50 or so is what we saud on ge of course we know equifax turned out to be a 6% gainer there. fastenal down there. tough session going back to tariff issues and that kind of thing. so overall, where does this leave us with this surprising late day move significant lly higher. >> it was good follow through on the broad market the s&p 500 was an upward drift. i don't mean to kind of degrade it that way. it did feel as if the market just stopped overthinking things and it was, okay, banks are going to rally tech's been strong it's not getting much back just the idea the u.s. is in a good place right now we can deal with an approach of 3% on treasury yields. i also think there was a technical aspect of it i was talking about the level of the s&p.

2750 it seemed like it could be a barrier for awhile once you clicked through that, it's okay. maybe there's not a lot blocking the way. >> and we closed at 2749 yesterday or something >> that's the way it is. if it's going to go through, people say fine let it rise more >> what about the dash for trash which we briefly alluded to earlier. you were looking at less loved tech names >> equifax was one of those. monster beverage if you just looked at the leaders today for the s&p 500, a disproportionate number of them were down 20% off their highs. what that kind of suggests to me is the rally's been roll for awhile here. and after awhile, the market naturally looks for things that haven't participated whether it's trying to figure if they're going to catch up a little bit i think that's what was going on here banks really represent that as well they were getting picked up today. and for much of the day, fang

proper was down. so facebook and amazon and all the rest -- >> the juggernaut. it is interesting to see some of those names popping like that today. carrie, what were you picking up >> well, it's interesting that a week ago we were talking about the crisis in italy and the banking system in the entire eurozone falling apart now we're talking about the nasdaq at all-time highs and the rally continuing so the market has become, again, comfortable with the state of the world. and we had first quarter earnings that were excellent up 25%. we're looking at good numbers for the second quarter and yes, the market has broadened a little but it wasn't just technology today. everyone has been talking about how it's been a tech rally that was healthy i was pleased to see that follow through whether it was dish or charter which is a name we all own across the board it could be some of the restructuring of the s&p

components in the technology or new communications sector. it didn't matter it was still a good day across the board. >> yeah. they've got that reshuffle coming up. charlie, what about you? we had interest rates back up. the 10-year yield dropped all the way to nearly 2.57%. we talked about how there would only be three fed rate hikes this year. and now, i don't know. kind of back where we started from >> yeah. and as you and i always talked about when this happened, that has a different impact on stocks there are the bond substitute stocks when they were going down to 165 which were overpriced and they're feeling that pain right now. so when the 10-year rates drop, some of those utilities and reits and consumer stocks do well but those stocks in our judgment are overpriced

they're going to be painful places to be as rates continue to go up >> again, that's kind of the theme. the 10-year touching nearly 3% how about tesla stocks they surged following the shareholder meeting last night pretty remarkable to see this much of a move for a company like tesla in one session we know it's been a volatile year for them. they had a lot of challenges but this was a surprise. >> it has been of course a volatile year. obviously a lot of built-up skepticism about their ability to deliver on production targets. it's really hard to point to one thing. i mean, it's interesting elon musk saying we think in the final week of this month we can produce 5,000 cars model 3. with three weeks visibility, we think we can get there that's enough to move the needle on the stock and say maybe they've straightened this out. >> don't you think they should know by now? >> that's my suggestion. >> he does that all the time >> also i do think the bears, they've been running out of time

when none of these big shoes are dropping in terms of another capital raise. look, it's kind of $20 above the $300 level which really is the battle front on this stock so we'll see if it can hold it tomorrow >> carrie, are you a fan >> well, it's an interesting stock. on the one hand, tesla is a cult company. it's got a cult leader it's an innovative enterprise and all sorts of optimism are built into it. but it's an automobile company and has to build there are going to be moves up and down in tesla over the entire year. and the people who own it, we don't own it but the people who own it have to have the stomach for it and have to believe in it i don't think you can predict on wuch side of the coin we're going to end up with tesla but today was a great day for the company. and if they can meet those targets, i think they'll be

shorts that get squeezed and if the market goes higher, tesla will go higher >> and charlie, i imagine you're not really a tesla guy, are you? >> no. no earnings. a very smart guy in a tough business and warren buffett has a wonderful statement about that when a manager with a great reputation meets a bad business, the reputation of the latter survives. >> let me ask you what you do like, then, as you look through the market and see places where you don't see over valuation >> we as investors are getting very tired of this growth out performance. it's been going on now for a long period of time. what it has meant is there are high quality companies trading at attractive price. s kkr which is up 21% in the last year. cbs is now at less than ten times earnings because people are so focused on the short-term you've got werner which makes wonderful car parts and is a

market leader in lots of different spaces those are all names trading for less than ten times earnings that are great businesses, very attractive >> do you care if cbs is forced to go with viacom or can't >> yeah. that'll be ugly in the short run. will short cbs and buy viacom. but there are a lot of people that would love to own cbs cbs has growing cash flow. and so once that deal gets done, we think the redstones are going to be appropriately had open to alternatives >> but is that the same case, charlie, people who used to own twitter maybe still do just because they think it's going to get taken over >> no. that's the beauty of cbs you don't need a takeover. we're arguing the stock is cheap now because the community is shorting it in anticipation of a deal that's forced impossible and retire the fact of the matter is it's a great company with great assets

that will survive with or without les. he's done a wonderful job running that business. but it's a spectacular library they're not hurt by cord cutting in the way that a viacom is. and so a combined viacom/cbs is going to do very well. >> all right let's go to your favorite area which is fang for just a second. the information today reporting that amazon is con tell plauting offering home insurance as an o offshoot of its work smart devices would monitor fire and burglary threats which we've got things at home that do that you know, amazon could do that too. but yet you did see a reaction in shares of all state, progressive today. not oversized, but the european insurers also took it on the chin >> people paid some attention to it i guess the argument would be if you do have that look into a home, you can price policies better you can deal with lost rates but i think that bigger picture, it shows you that amazon remains a threat to all parts of the business -- >> the economy

>> yes however, they are going into these kind ofz lousy businesses. right? there's not very high return on capital businesses the market doesn't much care amazon is just into domination it's the hard stuff that's left. it's not the easy stuff. >> that's a fascinating point. charlie, what do you think in a weird way from a 30,000 foot view, you'd say it's great. go to the hard stuff and make it better that's really tricky and it's great for, you know, society if amazon does that. the flipside is, you know, they're hard for a reason and the technology can't bring too much more to bear. >> that's exactly right. this is like when there were rumors that amazon was going to get into drug distribution these are tough businesses with low margins. the home insurance business is a lousy business they don't bring anything to it. the technology is not that big in this business i saw a headline saying amazon is not affected by trump tweets and it's wonderful how it's immune from all that it's just not true

donald trump really doesn't like jeff bezos he doesn't like amazon and i think there is a risk of anti-trust moves coming out of the government justified or not. and so i think there is absolutely risk around amazon. >> well, let me just follow up on that one point for a second why is home insurance such a lousy business is there something amazon could broing to make it better >> there are no barriers to entry. it's a classic business in which it's easy to start up an insurance business and you go around all state and progressive, progressive frankly we weren't happy that they went into home insurance because the auto business is so good their technology in auto is a big help the technology is not that helpful in home insurance. >> actually, auto premiums have been going up. that's been a hard market lately >> there are, you know, new start-up apps for home insurance. you know we've seen these guys talking about how they'll pay a claim right away won't really investigate it. it seems like the lowest common

denominator business >> if and maybe they just try it out. carrie, do you have a point of view on this one with amazon and the insurers >> well, i would just add that perhaps amazon isn't really talking about being so much in the home insurance business. they're just talking about being in your home and to the extent this is another piece of your life that amazon can touch it fills out an aspect of what this company is trying to do i agree with what is being said. but you have to think about it from a broader point of view it's hard to get in the mind of jeff bezos, of course. but somehow i'm not surprised and i think there's a greater and bigger piece here that we may not be seeing. and it's not just the lousy low margin home insurance business >> no. that's a great point

it's kind of their, you know, trojan horse, so to speak. we have an earnings alert on five below let's see how those shares are moving >> hi, kelly this is five below's first quarter results turning in stronger than expected earnings of 35 cents a share. guidance for both earnings and revenue for the second quarter which is the current quarter and the fiscal year. both above analyst estimates up 3.2% when the street had been looking for a slightly stronger result there in the range of an increase of 3.6% or so 4 they added 33 stores in the quarter and the ceo is confident he sees an opportunity for 2500 stores

that's almost four times the amount they currently have kelly, back other to you >> kind of an old school story in retail. thank you. the shares are up nearly 6% on that final word, mike >> been very strong. one little wrinkle some of the analysts were previewing the number saying philadelphia eagles super bowl win could have been a factor in bumping sales. >> really? >> 10% of the stores are in pennsylvania they got the merchandise in quick to take advantage of the fact they won. i don't know if they cite that in the numbers >> there you go. we'll see. hopefully someone will ask about it on the call charlie, carrie, thank you for joining us today >> thank you u.p.s. and its more than 200,000 union workers are heading for a labor shutdown up next, we'll look at the possibility of one of the largest strikes in decades and what impact it could have on the shipping industry. and companies like amazon that rely on them plus utilities coming up, we'll get the "fast money" trade on this sector and the big morning is coming up on

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welcome back to "closing bell." we've got an earnings alert on thor they're the rv maker they're just out with earnings they missed on eps $2.53 analysts were expecting $2.58. but the company did actually beat on the revenues the stock down about a percent right now. it was down about 2.5% earlier the company even saying that while labor costs have moderated, they've experienced inflationary price increases in certain raw materials and commodity prices they also talked about the steel and aluminum tariffs as being a reason for why those costs are going up that's thor industries kelly, back to you >> eric, thank you tariffs came up as well on brown foreman's results this morning >> obviously the metals cost are tremendous for these rv makers also when gasoline prices go up right or wrong, these stocks

suffer. >> when it takes what did they say? 200 gallons to fill one. >> most people using them don't drive a huge number of miles a year >> you've got to park somewhere and hook them up >> it's a hassle >> raw materials and tariffs, pressures on thor industries today. u.p.s. is trailing the market after 200,000 union workers voted to go on strike if no deal is reached when their contracts expire end of the month. including an increase the the part-time and starting wage and increased contributions for their health, welfare, and pension funds. welcome back >> thank you, kelly. how are you? >> good, thank you we had spoken before on why u.p.s. had beaten fedex. how likely is this strike and how much damage would it do?

>> well, i don't know it's that likely but the threat of the strike will do plenty of damage even if there isn't one. the bt tom line is you have to make contingency plans as we get closer to that deadline the end of july even by the fourth of july, you're going to need to make contingency plans. >> u.p.s. workers last went on strike in 1997 got a 15% increase in pay for drivers. similar increase in pay for the rest of the employees. if we're talking about that kind of wage hikes they're going to get, how much of a blow is that financially to the company >> well, that's potentially more than $3 billion in incremental labor cost which is a real number understand that u.p.s. will have to no matter what happens go out and get price increases to defend its own margins

and the union is in a position right now where they look at the situation. you've got very low unemployment you have a very tight labor market you have a strong economy. especially in e-commerce which is what they deliver and they're definitely in the cat bird seat. so the union's going to be pushing for extraordinarily large wage increases quite frankly as they should given where they set and this is u.p.s.'s largest line item. you can see $3 billion in additional expenses from this contract in fiscal 2019. >> obviously not all competitors are unionized as u.p.s., but the labor situation is similar everywhere what does it means across the industry in terms of cost? >> it won't raise cost for, say, fedex as much. it potentially raises the ability for thoem raise yield.

if u.p.s. has to raise yield to cover cost, then fedex will be able to come along behind. the other thing in this change that's different than 1997, the last time u.p.s. had a strike was that there really wasn't another place to go. you could go to the post off to move parcels, but that was it. that's a different story today fedex's ground system is not only well built out but they've spent billions of dollars on technology in the last several years. 100% of their ground hubs are fully incremented. that's a threat. so if u.p.s. were to go on strike, fedex could take a good portion of that volume without a hiccup >> is it out of the question that fedex workers will see this and unionize >> no. i don't think so i don't think so understand that the fedex ground

workers are independent contractors. they own their routes. so they're going to benefit from the increases in the yields and be happy with an increase in pay as a result. but they're not going to unionize because they're independent operators, contractors that own their own businesses whether it be three, four, five, six, eight, ten routes at a time and so they're going to love this event and the longer this drags out, the longer those shippers have to make contingency plans. when you go to fedex, ed fedex is as they should say look, we'll take care of you but that means you've got to commit to a certain amount of volume for the next year or more >> and try to capitalize on it all right. we'll see. donald, thank you for joining us we'll find out if there is a strike or if u.p.s. just concedes to the demands there. the market may be rallying, but utility stocks are getting crushed today.

the "fast money" traders will tell us whether they're buying on the weakness. that's coming up next. plus social security will have to dip into its reserves this year and could be insolvent in 16 years coming up the former head of the social security administration explains how that could impact your retirement. and the big morning ahead on "squawk box" tomorrow. don't miss warren buffett and teiee dimon on their first joint 00 a.m. eastern time the closing. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ every day we hear from families who partnered

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more earnings this time on united natural foods eric chemi back with those results. >> united natural foods beating estimates. $1.04 there ahead of the 93 cents the street was expecting revenues also beating. $2.65 billion. the company also raising their fiscal year eps guidance both happening to be above estimates. this is a company that's been up about 10%, 20% there we go. over the last few months it's been range bound over the past five years. but it's back the last couple years. they're a big distributor of the brands you'd see at whole foods like horizon milk and all those things you'd see in the natural foods section. 4% now had been up 8% immediately after those results were announced back to you, kelly >> all right, eric thank you very much. utilities, lower by about 2%

following a rise in treasury yields today falling 8% so far this year. should you buy the dip let's ask pete najarian and guy adami. welcome to you both. >> good to see you. >> did you say ute >> i know you didn't know that but mike on your left absolutely knew that. >> i've seen "my cousin vinny. the scene at the witness stand is the best of all time. >> my aunts and uncles would say it >> he's like, that's how i grew up >> all right so utes. we are talking about utes. what do you think about it >> "fast money" traders, would you buy? unequivocally no look at cohn edisnedison. no no, no, no trading at 17 times forward earnings like 17% eps growth rate

no they're still rich if there was one in the space i would even consider it's pg&e which got killed because of the california wildfires and maybe at ten times forward earnings, maybe that's worth a look. but i say no pete >> so too pricey for guy what do you say, pete? >> it's more about the fact why do people own these in the first place. right? the idea is they all buy them because they want this steady income stream. the problem is when you look at the charts you're putting up here, most of this is going down, down, down you're eating up what you're actually going after which is the yield. so the problem for me is the first thing i look at when i look at a company is the management the second thing i look at is the fundamentals the third thing is do they have growth and one of the last parts of the fundamental story is, are they buying back stock? that's great is the yield there that's great but that's the afterthought. that's, like, down there about five, six, or seven on the chain. right? >> the cherry on top >> the cherry on top

maraschino cherries like in greece >> i know the warren buffett thing. it's a monopoly business you know, you got to own it. and anyway, food for thought guys, thank you both >> we had a lot of fun >> always great to be with you >> always fun with ute guys. >> and mike, we love you >> guy adami, pete najarian. they're coming up at 5:00 p.m. eastern. i was more of a y'all girl >> well, but the ute would be like youth >> i have a lot to learn let's take a look at how we finished the day on wall street. dow up about 350 points on the bell there most of that coming towards the end of the session today dow also the out out performer the s&p up 23. the nasdaq up 51 and the small cap up let's get to some of the other big stories now. here's our rapid recap

>> facebook confirming several chinese companies have access to your user data social media giant admitting it has data sharing deals with at least four chinese companies >> for a long time we trusted companies like facebook with our data now we have really good reason to understand that that was a mistake. >> elon musk winning a vote of confidence from tesla shareholders keeping the combined chairman and ceo roles. >> this is, like, i'll tell you. the most excruciating, hellish several months i've maybe ever had. >> stocks are rallying right now. >> i would be a reducer on strength, not a buyer on strength i think the market is adequately valued >> athena health ceo jonathan bush is stepping down today amid a scandal. >> the world bank issuing a warning today saying an escalation of tariffs up to legally allowed bound rates could translate into a decline in global trade flows amounting to 9%.

>> i think free world trade is a very good thing, indeed. but it is broken and president trump is trying to fix it >> yes, the dow going out at the highs of the session today 343 points on the close. that puts us also above 25,000 for the first time in at least a couple of weeks. >> we also learned today the trade deficit fell more than expected the gdp number for goldman now, 3.8% >> that will basically get you your 3% for the first half right? when combined -- >> q1 revised. >> it's higher than some people thought. some people thought in the first quarter you would be a one handle so that basically sets you up for better than three for the back half. we'll see it if follows through. >> we're going to need that 3.8% >> hopefully it's not all about the trade accounting and inventories. those are the swing factors that will really tell you what's been going on >> it's been several months now. but usually it falls from -- anyway, we'll get into the trade

deficit thing right now. time for a cnbc news update. >> thanks, kelly here's what's happening at this hour, everyone first lady melania trump making her first public appearance in 27 days joining president trump for a briefing on hurricane preparedness at fema headquarters in washington and the president praised her. >> she went through a little rough patch, but she's doing great. and we're really proud of her. she's done a fantastic job as first lady people of our country love you so thank you, honey. >> democrats say the trump administration's accelerating policy of separating children from their parents after they cross the u.s. border with mexico is inhumane and it must stop >> what this administration is doing is inhumane. taking children from their parents, from their families, from their mothers must stop and

it is not negotiable it's not what we do. it's not reflective of who we are as a people or a nation and it must end. >> you are up to date. that's the news update at this hour kelly, back to you. >> sue, thank you. have a good one. sue herera saving social security up next the former head of the social security administration explains what it will take to save the entitlement program from insolvency. and don't miss warren buffett and jamie dimon. they'll be on "squawk box" tomorrow at 6:00 a.m it's the first time they've sat down together for an interview don't miss it tomorrow at 6:00 a.m. eastern on "squawk box. directv now gives you more for your thing. get all the good stuff about tv without all the bad stuff. yes! you can still stream your favorite shows. yes! with no annual contract. wait, what? it's live tv. yes! with no satellites. what? and no bulky hardware. no bulky hardware! isn't that great news? yes! nooooo! nooooooooooo!

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welcome back social security is expected to d dip into its reserves for the first time since 1982. the trust fund is expected to be depleted by 2034 it's coming up in 16 years' time welcome to you, mike first of all, anything you want to set the record straight about in terms of our understanding of what these figures mean? >> sure. there's been some irresponsible reporting.

and basically it's a dull report nothing has really changed for 25 years the system will be running out of enough money to pay full benefits somewhere around 2035 we've known that since about 1993 this year is no different. what has caught people's attention is there's a little bit more money being paid out than being paid in although if you count interest, there's still more money coming in it's not a statistic that means anything what is important is when there isn't -- there's no longer money in the trust funds to pay full benefits right now if nothing changes by around 2035, there'll be a 20% automatic cut in benefits. >> mike, i guess the way to talk about this then is this is only dull if you think the status quo is dull. maybe that's a good reminder of how precarious a situation we're

in or again, that this is a year in which it's paying out more than it's taking in, right? >> yes but that isn't significant in terms of the future of millennials looking for retirement what is important is the longer term arc and whether money is going to be there for them and if so, how much. and the flip this year where there's a little bit being paid out than paid in is not significant in and of itself in that sense, it's dull but it is critically important that at some point, the congress and the executive branch work together the way that ronald reagan and tip o'neill did to put the system on a firmer footing going forward. >> and mike, just what are we talking about in terms of the range of options that could change that long-term picture and, you know, really how dramatic they might have to be in other words, changes with

retirement age and anything else on the various levers you are able to pull i'm with you on this idea. they'll figure out how to pay it, it's just a matter of just exactly how you get to that point. >> sure. most of the discussion talks about about across the board increases in taxation or across the board cuts in benefits there are some nuances you could look at cutting some particular programs. a lot of people don't realize that we pay for children of retirees and it's a benefit that only older generally higher income men get. it's about $2 billion a year sometimes called the trophy wife benefit. so instead of cutting across the board we could look at some things like that also how we invest the trust funds. right now the funds are invested in one unique kind of treasury bond that gives a middling rate. a lot of other nations, you

know, look at some sort of private investment i've talked with the heads of the chinese system, for instance, they come to new york regularly to check on their investments. there are problems with that when you're talking about almost a trillion dollars, if all that suddenly is government controlled and going into the market, you could have back door socialism. but there may be some mechanisms you can do some new kinds of treasury instruments to try to nudge it up a little bit >> yeah, no. we showed you -- mike, your -- i read your stuff in first things. this is like -- >> yeah, no. i do poetry and literature and criticism on the side. it's all on twitter. if you want to look at it. >> it's blowing my mind. even more than social security thanks for joining us to talk about that maybe next time we'll talk about, you know, literature too. >> hey, i'm retired now. i'm happy to come over any time.

>> thanks a lot, mike. have a good one. >> thanks, you too >> former social security administration commissioner. we have an earnings alert on a pair of recent tech ipos let's get to joshua lipton for that. >> kelly, a couple of movers here in the after-hours. let's start with okta. revenue up 60% the street was at $79 million. for q2 in line here. loss of 21 cents on the top line better than expected $84 million. and for the full year, slightly better loss from 54 cents from the 58 cent they were expecting and okta are expanding new offices in d.c., paris, and stockholm. keep in mind the stock was already up more than 100% this year another mover, zscaler revenue of $49.2 million versus

expectation of $46 million and a strong guidance here for the next quarter as well back to you. >> zscaler shares are up about 12%. quite a move there thank you, josh lipton shares of athena health also went higher today. this after executive jonathan bush stepped down. that's next. and a big morning coming up on "squawk box" tomorrow. don't miss warren buffett alongside jamie dimon. it's their first-ever tv interview together we're wondering whab are they going to talk about? we'll pick mike's brain about atat still to come th's tomorrow on "squawk box" exclusively at 6:00 a.m.

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johnathan bush is out as ceo of athena health leslie picker has the look >> this comes amid some shocking revelations about bush reports surfaced over the last week and a half showing bush admitting to domestic abuse and making inappropriate comments to female employees meanwhile, management has been trying to get athena health to engage in biotalks for about $7 billion. in a press release today announcing the departure, athena health also announced to explore strategic alternatives including, of course, a sale it seems elliot got what it

wanted the firm said in a statement it welcomes the board's decision and looks forward to participating as a bidder. this is not the first time elliot has -- you'll recall iconic wrote a letter that they saw as a way to extort and settled with elliott putting three representatives on the board. a few years ago elliott also lost a proxy fight at samsung. but shortly after the vice chairman went to jail after being sentenced for bribery he was released from jail earlier this year. to be clear, we don't know exactly whether elliott did the dirt digging that led to these exits. >> now there's been so many high-profile examples of this. this one more than most.

jonathan bush's tv personality was billy bush here's a look at what he had to say about this he said there's a dirty activist, nice name for a corporate financial blackmailer, trying to unseat my brother from the company he built in his basement and they will stop at nothing. so again, knowing a lot of this is speculation about what's happened here. is this going to come back now to elliott as people are saying, wait a minute. this is -- your tactics are getting too dirty or whatever the case may be. >> let's say that did something that is digging up old dirt from the past it's all things that, you know, they're completely -- it's part of the realm of what an activist would do it's their job to dig up this dirt, to get their way especially if it's something that's accurate. now, if they're going around defaming any of these individuals who were ousted as a ceo or spreading rumors or lies about them, that would be one thing. but if they are finding

information that's true, that's a common activist tactic in order to get their way >> mike, do you think the personal life should be off -- you know -- >> again, these are basically matters of even though they were in the public record there is a line that says if it is false or misleading that rumors are spreading that's stock manipulation, potentially and that's where the threshold is is it playing tough? absolutely, but that really is the edge. >> if i were a company, and i would -- >> should personal stuff be off limits well only today do we even consider these allegations probably something that would lead to the departure of a ceo ten years ago they would have waited for to to blow over. >> personal matters can help the investors assess the compass. >> the whole social repons to that thing is more important than ever. leslie, thank you. taco lovers in california have to shell out more cash for their favorite food and that's next in today's takeaway and

coming up on "fast money," wall street, cryptoking will talk about what's next for the crypto space and don't miss warren buffett and jamie dimon are coming on "squawk box" tomorrow, what could they have up their sleeves? don't miss it coming up on "skwau "squawk box "qwest at 6:00 a.m. eastern time

>> welcome back. time now for the takeaway. the single-issue bonds that imwellity spending, caps future borrowing and force excess reserves into a reserve fund according to the wall street

journal. these reassurances allow them to borrow cheaply, but what if they run into trouble in a few years? >> it reduces the flexibility and they think getting a lower borrowing rate right now is the way to do it to seize up the financial challenges today >> companies deal with covenants and all of the rest of it, but it takes a super majority of the legislature down the road. >> you're ultimately pitting bondholders against teachers, firefighters and policemen. >> it's not going to be fun. bad news for air bnb today air marketer has lored the forecast by 5 million users for this year and expects the company to add 6 million users by 2021 versus the 17 million previous forecast. it's a mix of competition and security issues which cnbc highlighted recently, as well which means air bnb should get it done before public appetite sours. >> obviously, there's a supply

issue and you're not having as many hosts in areas where they're more hostile to the idea i do wonder, users it doesn't get to the intensity of usage, necessarily. i don't know if that can grow for a while after an absolute number of users peaks, but competition is significant in terms of the rbo and other traditional vacation ventrental spaces. >> we'll see if it makes it tougher and finally, as you may have noticed, jack-in-the-box has raised taco prices in some locations. should we allow the lid to lift on taco pricing, the reason why, california's minimum wage is nearing the $15 mark jack is losing value customers as it raises prices which shows one of the issues of raising the minimum wage broadly is hurting the low-income people it's supposed to help >> at the margin you think fast food pricing is so rock bottom we're talking about $1.29 for

two tacos instead of 99 cents for two tacos. clearly minimum wage applies to every fast food place in the state. it's not as if taco bell can undercut me, but yeah, obviously, it creates a lift to pricing and franchisees especially will try to recapture it. >> and perhaps the competitors have figured out how to profit. >> for years you've kept it at 99 cents. >> but it's an affront to people anyway a rally on wall street we will recap the headlines and the after-hours movers and a big morning on squawk box. warren buffett sitting down with jam dimon together don't miss it at 6:00 a.m. eastern.

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>> let's get a check on headlines making news after hours. five below spiking after beating wall street's earnings estimates is now up 11%. thor industries plunging after missing analyst profit estimates and warning it's seeing prices

increases. thor down 6% and allergan higher on the report pearl icahn has taken a position in the drugmaker. mike, its shares down 3% >> pepper and carl icahn that does it for closing bell. thanks for tuning in, everybody. "fast money" begins right now. fast money starts right now live from the nasdaq marketsite overlooking new york city's times square i'm melissa lee, pete najarian, guy adamy and tonight on fast, if you love bitcoin, this is the show for you first, we're talking to wall street's new crypto king, the first financial institution to open a bit coin trading group and later we're setting down with brett redfearn. these are two interviews you will not want to miss. plus, elon musk winning back the heart of his investors at least for today. tesla posting its best day in more than two years after the ceo described at