thu much. thank you. >> please. >> guys, next time i see you, it's in singapore. i leave tomorrow morning, and we'll be live. >> whatever happens, it's a monumental event >> it is, absolutely >> thank you for watching lunch", anlosing bell" starts right now >> i'm wilfredrost, this i "closi bell" to give guidance or not to give guidance that's the question, a question weighed in on this morning by e ar the dealsand jamie dim on.s at the top corporate governance conference >> reporter: travel to the land of fire and ice is heating up. i why airlines are ramping up flights to iceland a group of senators introducing a bill to curve the president's ability to impose tariffs. we'll have a senator behind the

move lsing bell" starts rit now. ♪ >> you've been to iceland, i'm sure >> no. >> you've never been is it like the canada to the u.s. neighbors, not as interesting? >> neighbors just out. ths noetweens, b it'sa lf hour why vice presihan >> as much neighbors as you e. same distance for both of us >> i know people who meet there from the u.s. and u.k. if they dated transatlantiy. >> that's where they would meet. >> is that phil's story? >> no, but it could be >> could be. dow higher for the fourth time in five days now, but only average up green, up 86. nasdaq having the worst session since april, down threquters

of 1%. >> sing the intra-day selloff. we get to thclosing bell exchange steve grasso, an i cme in csteve, i'll start with you because it was a pretty encouraging morning, but fairly disappointing afternoon we recovered off the lows, but what caused that initial selloff at lunchtime >> sorry, if you look at w we've been through in the last couple of days, that runup we've ha y the -- value or growth in the fight between value and growth, iwms, small cap versus large cap, kre versus the xlf, large cap international banking exposure, brand names, people are trying to see, do i see profits now? the e is out b or 10% over the xlf, did you take profits? where do you find growth in the marketplace? you go into the g-7 weend and north korea so people say, you

know, we had a good run. why don'we just take chips off the table. we've seen a lot of the super shorted names, reta nes bounce back, take chips off the table. i don't think this is the end of the run.incredible cdays had, ao it, but we've seen the 10-year hit off that 2.99% i saw it as resistance at 2.8 pennsylvania to be technical about it, and it blasted through th i expect that to back off. next week, rates are cinup, this is the wordiest i've been, but to the point there's so much to talk about overlaid with a market with no giveup. this could be a sideways step. >> what do you think of the headlines we got from the president? for thmit eparing the nner inre tuesday

>> oh, my goodness, policy, potential changes, transmission lines in the markets, everywhere you look almost every day, whether it's g-7 friday and saturday in canada, obviously, singapore on the 12th. we have wednesday, thursday, and friday, the u.s. central bank, the european central bank, the su looked at merging markets with boat loads of volatility, emerging market etfs, the currencies, if you looked at what was going on in corporate spreads, the riskoff feel in the the at euro-dollar out of nowhere we saw treasury yields get skiddish and go from almost 3% down to 2., back to 2.94%, but the notion that everinespeciall we rise into those, so volatility is key, but rates are not done with the 3% or 3.03 level, and, finally, if that's

not enough, you have the euro currency looking for its fourth day up, meaning dollar index is own, a althoug ri off trades in fx, it could not bail out the dollar today. >> caleb, what's your take on what it means for equity markets? still encouraged by what's out there to buy u.s. versus rest of the world? >> that was a long laundry list of events occurring. we add the opec meeting, and we watch what's happening underneath the surface in the markets. italian 10-year sells off, so that bond loses 8.5%, and we're seeing emerging market currencying weak as well

pushing -- it just is pressu onnterest rates in the u.s. down and german bond yields down ahead of the ecb meeting, yields come down, making for a tric country ecb meeting. raise rates at any time in the next nine months, maybe 12 months, because if the bund goes up and italian yield goes up, that's the case for italy staying in the euro. there's noise here a lot of noise >> i was going to say, we're, you know, 10-year italian interest goes up and down based on internal politics there boil it down for us. all of this going on what levels are you watching >> so, if you look at the zch rig -- look at the s&p right now, 272740 is the bullish-bear line in the sand, and then if we go really lower eer like days a it was 2710 in the s&p, that's where you really want to see the

big round numbers. >> but you're feeling positive >> i am feeling positive i do think we'll move a little bit ys next weeuld have that sell the news event after we've had all the rumors whether or not north korea was going to happen or off thecod have al ele news event, but collectively,k, myself, leb just mentioned 15 potentially market moving events and the market is still hanging in here, down 12 bips, so i would assume that that's a win for the bulls at this ment >> all right >> thank you, all, t, steve, r to the big interview of e day, becky quick speaking with warren buffet and jamie dimon, a call for ceos top giving profit quarterly guidance. >> i've been on 20 boards of publicly traded companies,i've i

think well opersonally whether it married my daught or named executors in my will, oroved in next door, but they get tempted by themadeegos get make up the numbers, so it's a bad -- it's a very, very bad practice, and once it gets going, it feeds on itself. the investor relationship department says you get a 1.08, and you ve a reputation for making your numbers or beating numbers. you're going to do some very sthis at some point because business just doesn't work that way, and for 53 years aterhaire, it's annfinishe

painting all the time, and the rise is infinty as far as i'm concerned. >> what's it mean from a real perspective? are the companies at the companies, not issuing quarterly guidance at this point tguidanperst tol earnings one day. something like 20% plus or minus quarterly, but this is the first step to get people focused in the long run i chose to say most of the companies are good at focusing too, and this is just one case we figure should go another step to improve the governance of corporate america. >> jamie, know, you mentioned it's up to the ceo'sd. if you wanted to, how do youchan to do this if you were more focused on short term? >> you can change interest rate expo ex -- exposure by making a phone

call people cut marketing that's easy to cut you can pay people less. african-american mangs, you can reduce maintenance, but that's a rely bad idea, so people - >> yeah, yeah. tell me if you're doing that any place. >> great interview, that this morning, great debe that continthroughout the day as we'll do so now, joining us is bob, good afternoon, and thank you for joining us, bob. terms o you support a suggestion or do you think these are two titans stepping above their mar little bit >> i wish i could duplicate exactly what both of them said they should make it illegal to make specific quarterly earnings estimates. it leads to nothing that is good they manipulate earnings to meet

it, they take theeye off ll, and reports on whetherearnis which is a joke. you evaluate a company on the ability to generate long term cash flow. if you look at it, it becomes a racing game, a pair of mutuals in the early exchanges this is cutting out. >>htme bringn mat.od about it. this is --s is your bread and butter how is an analyst, how valuable do you find profit guidance? >> i mean, i have to apologize for disagreeing with warren buffet and jamie dimon given who they are, but at the same time, i've been an analyst for 20 years and never met a ceo who was not bullish on his or her long term prits and prospects, but it's rlly the quarterly guidance that gives us the opportittothug items andctually

see if the companies are executing the plan, so i'm a big believer in quarterly guidance in my mind, it's a question of transparency and more transparency is better than less transparency >> romat, no need to apologize on your vi they will continue tme out with expectations anyway, and that is each quarter what a company will be measured against because, of cose, are prices and the market is forward looking, not backwards looking,t estimates formed with as much information as possible otherwise short term volatility will increase, not decrease. >> i disagree with you entirely. it's an analyst's job to come up with o estimates if they agree with management, then still they are wrong. we ran the fund for 23 years we've never talked to management about anything, any forecasts

anywhere, long term return is 763% over that period compared tor e s&p. go in, distorts accounting, research, has nothing to do with valuation of companies it's a quarterly meeting game. the tails wagging the dogs it's analyst's jobs to estimate earnings, not management management should have long term obctele entirely >> b, b, clearly, you are a long term investor and the returns you suggest are commendable, but not everybody is long termny are short term, and if the company wants to ipo and list publicly, th have to be prepared to face up to people willing to face trades in a matter of quarters an >> the short term sophisticated investors who play off that data are taking advantage of the public and long te investors we're not saying that short rm investors who knowhat they

g -- andt n't -- okay, buthe are some talented short term investors, not taking that ay, they and r between. this is negative mr. buffet, myself, and the other jenman have rund fora lon. it's not positive. that's all they write about. this thing started 20 years ago by a service it's crazy it about whether they won or lost. the mistake is the analysts if they - >> let me ask romat again, and, you knownothing can stop anybody, any analyst from tting together an assessment like wilf said of what they think company does each r,, i mean, isn't that valuable for the public to have a sense on a quarter by quarter basis how they perform relative instead of over e longer

if this was compulsory, that's one thing, but it's not. >> i would agree there's the saying that great decades are made out ogrt arand eat years are made from great quarters, and i think imperative to go through thet's quarterly results, get othe conference calls, challenge the management teams, and see if they are exeting the plan. yokn, ieth iover like nvidia and tesla and micron and intel, i can say with almost certainty that, you know, their research and development plans head count capital spending is not at all influenced by what happens in the short term, butt quarterly guidance gives us an y outsiders to see if they are exe >> yeah, no one is saying there are companies who are nots too

obsessed with that that pursued meeting the numbers, but, you know, again to say no one should do it or there's no t i is another thing thank you, both. >> the only other thing to add on the debate there with the guests is if there are people that finesse the numbers thit a a quarter, if they do that in q1 and q2, it comes out in 3 or 4. >> over time >> over time and i don't think people should change the status quo should not change topm from doing d ey are the people who k 's a debate that'sfojorit. upside down for me >> but youidhiback day.you re in the thick of it. >> yeah, but that's the point. do you know -- just to go on a little bit more, jamie is the sort of proving my point because he gets angry every quarter and called me out on an earnings call about this before saying, look, you're measuring my trading performance up 10%, and analyst said up 12%. you should be focused that it's up at all and returns are higher

and costf tal, era t that, but if athere are chani don't e the problem. long term performance came out, premium to put value because people back him over the long term if they sell o quaer that's bad, who cares >> jpm gives quarterly tuidancdt be up 12%. >> perhaps do away with it you're not required to, and companies like amazon and google, even, just don't do it at all and do not suffer for it. more on the story thougroughoute show at ierview is also on cnbc.com >> four 40 minutes of trade left the dow is higher, and up next, commerce secretary ross breaking

big news earlier on cnbc today >> about 6:00 a.m. this morning, we executed definitive agreement with zte that brings to a conclusion this phase of the development with them >> his whole comments coming up on what that deal entails. >> senoran hollen weighs in on the deal, and why he's phi fusng approval for w t. backk around, wel r

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zblmp welcome back, nasdaq wei weighing on the tech sector, broadly on sentiment, and the dow is holding on to a third of a percent gain shares soaring on the heels of an earnings and revenue beat, and management highlighted continued outperformance from new stores that stock is up a healthy 22% >> wow holy cow >> you can't give that all away. >> if you can do something

interesting with them. >> it's not interesting without -- >> i like you in the middle of it that makes it seem -- then i get what's - >> take yourself out >> president trump holding a news conference with prime minister abe today, and the upcoming summit the main topic eamon has the latest for us from the white house. >> reporter: two msages really rden alongside shinzo abe.rose the president talked about the soaring possibilities of the summit in singapore. this is what he said on that front. >> i hope the upcoming meeting in singapore represents the beginning of a bright new future for north korea, and, indeed, a bright n future for the world. the denuclearization of the korean peninsula would usher in a new era of prosperity, security, and peace for all koreans. north and south, and for people de was also

careful to caveat that to suggest that nothing might come of his summit at all listen to this >> well, all i can say is i'm totally prepared to walk away. i did it once before you have to be able to walk away >> so the president there talking about the other side, and the downside in terms of outcomesf the summita success, he'll invite kim jong un of north korea to the white wel see if that's in the cards later this year. >> thank you so much >> reporter: you bet ongoing trade negotiations with china, and wilbur ross confirmed this morning that the u.s. reached an agreement with telecom giant zte despite ntago coulim a secy >> imposing the most strict compliance we've had on any company, american or foreign

we would -- we are literally embedding a compliance department of our choosing into the company to monitor it going forward. >> sounds like what britain does right now. you know, they have people in there taking devices apart >> right >> chris van hollen is joining us now, leading the fight to block these sanctions on zte, senator, so what happens now >> well, good question and i can tell you that just a miago, senator tom cotton and i filed a bipartisan amendment to really hold zte accountable. you know, wilbur ross did the right thing back in april when he found zte repeatedly and flagrantly violated u.s. law and put really strong penalties on them, and then, of course, the president tweeted he wanted to help zte and jobs in china, and they socially reversed course.

what happened today amounts to a slap in the wrist. i can tell you their strong b r bipartisan lefts them off the hook >> so, senator, you're against the lifting of sanctions on zte d a, but you're also against the placing sanctio with canada and the eu in a sense, could people say you are trying to restrict the ability of the president to use tools at his disposal to gotiate? >> no. we should not mix up national security with trade and tariffs. a national security imperatives the reason we put strong penalties on zte was because they violated u.s. sanction law, and if you send a signal to people around the world that, hey, go ahead and violate sanctions on north korea or iran

and, you know, just call the president and we'll give you a slap on the wrist, that undermines that whole regime the same thing is true with respect to misusing the national security provisions undetrade, to simy put back door tariffs on our nato allies, and that's why you have a separate bipartisan amendment from senator corker essentially saying to the president that we're not going to allow you t abuse the national security designation in order to make deals on other trade items, and, by the wayou know, impact to that is to raise prices and taxes on american consumers. >> sure. no, senator, well aware of all of tho factors and understand your point, but at the same time, these things are linked, and they are linked to another big thing next week, of course, the summit with north korea, and it's pretty hard to separate them out individually, so

shouldn't the president be given a chance to do what he's doing and perhaps bring, you know, peace with north korea, denuclearization, and if that means a small price to pay on one chinese company, is that not fair >> so there's d thinere, right i don't think imposing tariffs on canada and our european allies has anything to do with north korea. i think that's a total abusee ns under trade law, and there's bipartisan belief in that. with respect to north korea, we all hope the summit goes well and want a completely denuclearized north korean peninsula, south korean free peninsula, and verifiable. as you know, north korean lehave wanted for a very long time to have a summit w the president of the united states because it elevates them in the world stage the issue is what comes out of

it if something good comes out of it for o security, that would be great, but my view is tt requires more than what the president called attitude. i think that does require senator, don't you think everybody's on the same page it's not the end goal for the administration is anything other than significant concessions no, much stricter sanctions going forward, right >> well, i mean, i think the definition of success was set by secretary pompeo within the last couple weeks where he said we needed complete denuclearization of the korean peninsula in a timely manner and be verifiable. if the north koreans agree to all that, obviously, the united states would like to see peace on the korean peninsula. we'd like to see good relations between north and south and between the united states and bothriesthatrequires the north o

something more than just meet, and, again, i want to emphasize that they -- kim jong un's fa wanted to meet with american presidents too, so, you know, just getting together is a win for them now,he question is whether what comes out of it will be a win for usnd our allies. >> senator, thank you very much for joining us this afternoon, d very much appreciated, senator van hollen >> thank you we have a news alert on facejo lipton joins us now, josh? >> reporter: kelly, facebook making headlines here, landing itself in what's called another privacy debacle. as many as 14 million facebook users who thought they were closing ims, kelly, that only their friends or smaller groups could see may have been actually posting content publicly there was a software bug that was live for about ten days in ma updating the audience for some users' post to public without any warning. we have a statement from facebook about this, and let me

read that to you facebook saying, "we have fixed this issue and starting today we are letting everyone affected any po me during that o review time, we'd like to apologize for the mistake. it's not clear how many 14 million people made posting to friends without realizing they shared that information publicly obviously, this coming with the company under the spotlight already from userslawmakers, and regulators, guys, back to you. >> josh, thank you very much >> now facebook is wells fargo >> i was going to say never rains -- but it's not affecting the e price anymore. it's down 1.7%, but - >> wells fargo was the best performefor years because of the culture and the way it did business, and then everybody woke up and said, you know, actually, we don't like this model, the shares and stuff, to your point, i don't know what it means for facebook's performance. they're not going to tell facebook they can't grow like wells --

>> they might. >> the public tunes it out they are running advertising apology campaigns right now on television >> they are, indeed. the point of the last week or two has been two issues of facebook, and it's not increm t incrementally hurt stock prices, down 1.7% today, but, of course, so is the nasdaq, down in the tech sector broadly weighing o markets. switching focus, time for a cnbc news update, sue has that for us >> i do. here's what's happening at this hour, everyone canadian prime minister justinhe with president macron to discuss the upcoming summit. they will have blunt discussions with president trump on trade and other issues >> i think it's been a feature of the relationship and i have maintained with the pat that allows us to be blunt and fran and have been throughout our exchanges th the president from the very beginning.

>> here at home, support ticked up for president trump the president has 44% approval rating among registered voters, up fro40% in april, but 25% o voters a backing a congressional candidate serves as a check on president trump than less likely suicide rates rose by a third since 1999 the tenth leading cause of death overall? stress, relationship problems, and substance abuse all are considered contributing factors to that. that's a sad statistic you're up to date. that's the update this hour, back downtown to you >> very sad indeed, sue, thank you very much. we got 28 minutes left of trade today. we are lower on the s&p just

slightly, and many on the nasdaq, higher on the dow. two stocks to watch, amazon, scoring the rights to screen 20 english premier ague soccer gas in the u.k. from almost 20 matches per season for three seasons. i've done the math >> before the math, i like the point on this that's relevant. the u.s. people who don't watch soccer at all is the structure of the deal, which is there exclusively picking weekends to watch on amazon. interesting. >> exactly other platforms you have a spread, and sky sports got 128 games, i think, spread across the season, and amazon is 20 it forces people to think to give amazon a try. interestingly, they have done a little bit with the nfl last season, and i think they flirted with live sports, it worked for them, and this is bigger it's expensive rice yet, dgg on what sky paid for the same three

seasons, i reckon it is probably about $600 million >> wow for 20 games >> 20 games over three years, which is expensive, but it's obviously worked for them on the nfl, and it is a big threat to the u.k. broadcasting industry >> u.s. too. >> oh, you know, one of the weekends of the nfl, sorry, all the games are on amazon, for example, if we go that way >> so important to sky, premier league two things did not happen otherwise share would be up. there's a bidding war keeping prices up, but, also, they secured their own thing for the same period, but this was working for amazon they come in a big way >> shares of jm smucker after reporting misses on the estimates. they cited weakness in oils, peanut butter, and baking. shares down 5% >> there we go

still ahead, top u.k. fund manager with a strategy for closing the gender workplace. she was your boss? >> fir ceo >> looki forward to this, why her plan differs from facebook's stay with us professionals, let's measure up. cfa institute. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest. holiday inn express, with tripadvisor, finding yo perfect hotel

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i am extremely proud of to save energy because weewi pge wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut o the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! e three ung ladies were teaching t about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. > welcome back, increasing for

gender diversity in the board ro, one company puts money where its uth is >> launching the leadership u.k. index scoring british companies on the number of women represented as directors, executives, managers, and workers. joining us now for a first cnbc interview is helena, author of a new book and ceo of newton investment management. >> where we met. >> that's all i want to hear about, what he like as a worker? >> as a graduate oh, that's fine. much younger >> must be some good stories >> obviously, he worked out well in tv too. >> well, it's been a lot of fun, but great training i had from you too, but, anyway, 75 billion under management at newton, you built up to, and the other thing you did in that time, you found 13% cut aiming to get 30% of

men.d members of the u.k. to be you got it from 12% -- not quite to 30. >> it's 28.9 >> tortuously close, but huge improvement. the s&p 500 is lower than that how did you get that to raise from 12 to 30, and what tips do you give to u.s. board rooms in order to achieve this? >> well, we had anantage because effectively there's a term limit on executive board correctors in the u.k. that you don't have, most companies don't have here, but what can be duplicated is the involvement of men. when we started, 99 out of the 100 chairman were men, and we needs e needed their support it was their rooms, and we needed their cooperation, it need to be an everybody issue. >> you think there should be more term laments on board members here and that could help women? not just help women, but just have refreshment of boards you want people who are

independent, the judge and jury around management, and you don't have that -- you have people serving for decades. >> can it only change, broader issue of whether there's equality in the workplace, only change from the top, or are there things that millennials and others should be doing from day one when hired >> needs to be top-down and bottom-up. historically, and for good reason, we tend to train women to be like men that does not work well. we want to be women in the work force. we have an opportunity with many who want to have work for companies with values aligned to their open, and young men want to play a part in family's upbringing we have an opportunity it to change >> you have nine kids. >> i have nine, yes. >> it's reassuring to know you can have the career you have with a large family like that. something totally different and separate what's happening in europe lately with the italian elections and now concerns,

again, about the future of the euro, and it came up this morning, jp morgan talked about this with becky. >> it's not resolved, year ago there was issues, and people questioned, again, you know, eurozone, and, obviously, i hope they stay, monetary union is the most important thing, i hope they do and expect they will >> do you expect the euro will be this in five years and in ten years? >> i'm going to say, again, i hate to predict the future i say yes, exiting the euro, that's catastrophic for anyone who exits. >> the question, everyone framed the french election as if that put all the rs for the eurozone and eu behind them and brexit was a one off. do you think it was not a one off but a real risk, a threat to the eurorozone again >> it would be a huge mistake. we had germany as well, what

happened there in terms of the far right party, and, clearly, people want to be listened to, and they are disenfranchised, not happy with the way the eu is command and controlling. it will be worse and repeats unless there's ability for the people to express their view >> and on brexit, because important votes in parliament next week on the shape of the brexit bill, does brexit definitely happen, and will theresa may -- >> i'm going to call a jamie dimon. i don't want to predict. 17.4 million people voted to leave. whether they agree, it's the biggest democratic majority anyone ever voted. i think it is the will of the people what we don't know is the shape of the deal. we don't know -- have many scenarios on the table, and for british politics as well >> there was an issue of getting rid of corporate guidance here

in the u.s what the u.k. does is different. do you think there's lessons to be learned >> we have not had quarterly reporting since 2014 there's transparency you mentioned, wilf, it could be a problem, but we can publicize any material issues or transactions that might have an impact on earnings, and it works well there's more focus on the quality. we had higher focus on narrative reporting on what's going along with the accounts, and i think it's been a good thing >> a pleasure to see you >> thank you, thank you, kelly >> new book, a good time to be a girl, coming out any minute, and refreshing new take on an important issue that many people are pursuing as well i'm just laughing at you talking about being a goodtime to be a girl, but, anyway, up next - >> it's the title of the book. what do you want me to say >> u.s. antitrust chief made fresh comments about disney-fox

deal and why he said it was surgically ka surgically carved out.

(indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo!

you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. welcome back, today's quote comes from the assistant ag for the u.s. department of justices anti-trust division.

this is what he said about disney's bid to acquire 21st century fox assets >> fox disney is a good example. they did not acquire as part of that or proposed to acquire fox sports 1 and 2 and did not acquire fox broadcasting and say, we'll combine this with abc broadcasting don't worry about it we'll have an arbitrator decide if prices to advertisers go up or competition for content creators goes down they, i think, had good advice and carved out surgically what a transaction that might be doable, and, wagain, who knows where that transaction leads >> this is fascinating because of the battle between disney or what reportedly is a client bid from comcast weighing up, really, is the regulatory threat big enough to make a difference in that, and this is a real sign that is a legitimate consideration from

the sellers. >> right also because hi sued on behalf of the government against the at&t time warner deal. hear from a judge on that one shortly. >> in a a week >> yeah. >> june 12th is a big day. tuesday. >> if you want to put out bad corporate news, june 12th is your day >> guidance, you mean. >> ha-ha - >> right, up next, elliot management paul singer and nelson peltz sakpe on the debate on short termism and where they stand on the issue when we return i'll be there. ♪

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secretary of state mike pompeo speaking about the upcoming summit in north korea let's listen in. >> in the event diplomacy does not move in the right direction, these measures will increase throughout the process, the united states has been unified with japan and south korea in response to the threats from north korea. i will be traveling with -- excuse me -- i will travel to meet with my japanese and south korean counterparts after the summit to continue to coordinate with them and also stop in beijing following the singapore summit to provide with an updecade and underscore the importance of fully implementing

all sanctions imposed on north korea. president trump recognizes north korea's desire for security and is prepared to ensure a dprk free of weapons of mass destruction is also a secure north korea. president trump made it clear if kim jong un denuclearizes, there's a brighter path for north korea and its people we imagine a strong, connected, secure north korea integrated into the community of nations. we think that the people of the united states and north korea can create a future defined by friendship and collaboration and not by mistrust and fear and believe kim jong un shares this vision for the future and committed to finding a path forward. we assume and hope that belief is sincere we look forward to being in singapore in just a few days >> as a reminder, we take a few questions before - >> thank you >> yes, ma'am.

>> what progress have you made in narrowing the gap in understanding denuclearization and has there been progress in bringing that closer together? >> yes >> can you describe that a little bit >> no. [ laughter ] >> that was quick, john, thanks. >> thank you, sarah, thank you, secretary pompeo north korea in the past remained -- with the u.s. government - two questions for you. first question has to do with your experience with kim jong un do you trust him second question about the negotiations upcoming with north korea. who, in your opinion, has the upper hand in the negotiations and why? >> with respect to the first question, i had the chance to meet with kim jong un twice now. i can tell you he is very capable of articulating the

things that he is prepared to o do, present clearly the challenges we all have to overcome it's why the two leaders are meeting. it's the opportunity to lay those out clearly between the two leaders so that we can see did we can find a path forward together, and that achieves outcomes both countries want the second question? >> who has the upper hand? >> yeah. i -- we don't think about it in terms of who has the upper hand. we know this has been a long, intractable challenge that's gone on for decades. the president said repeatedly, prior administrations were not prepared to do what we've done alrea already. it's not about the other hand, but finding an understanding to get concrete steps, not just words, that resolve the challenge. >> pamela? >> secretary, first of all, the president said he does not believe he has to prepare very much ahead of the summit do you think that's a prudent approach

i want your reaction to rudy's comments that kim jong un got back on his hands and knees and begged for the summit to go back on and whether he should weigh in on international affairs and whether you agree with that assessment. >> with respect to the second questions, i took him as it being a small room and not serious about the comments i think it was a bit ingest. and -- >> about the summit? >> we were -- oh, we're moving forward. we're focused on the important things i know rudy. he does not speak for the administration when it comes to this negotiation and set of issues you know, with respect to your first question, you know, progress, we're making progress, inch by inch, and we're going to travel there this is different. the approach the president trump took is different. in the past, there was months and months of detailed negotiations that go nowhere this has already driven us to a place we've not been able to achieve before

>> dave? >> thank you, mr. secretary. the president said today if the singapore meeting goes well, he'd like to bring kim jong un to washington possibly for further meetings has kim jong un invited the president to come to north korea? >> so i don't want to talk about conversations that have been had between the north korean side and the united states. i'll leave that for the president to talk to, but i do want to get to -- this comes back to the other question that you asked about the president's preparation. so in my previous role, and i've said it before, look it up, there were a few days i left the oval office after briefing the president that we did not talk about north korea. over months and months, days and days, president trump has been receiving briefings on this issue about the military aspects, commercial-economic as sects of it, the history of the relationship, and in the past few months, there's been near daily briefings including today where we have been providing the

president all the information that he needs, and i'm very confident that the president will be fully prepared when he meets with his north korean counterparts >> having met the man twice now, what opinions have you formed with kim jong un as a person >> yeah. so i have not spent that much time with him. what i have said publicly is he has indicated to me personally he's prepared to denuclearize. he understands that the current model doesn't work that he's prepared to denuclearize, and, two, he understands we can't do it the way we've done it before this has to be big and bold and we have to agree to making major changes. we cannot step through this over years, but rather need to acknowledge it will take some amount of time this does not happen instantaneously, but the model

for succeeding, security assuran assurance, and political normalization and denuclearization completely verifiably and irreversibly, for that to take place, we have to make bold decisions and hopeful the chairman makes that decision for his country, a big shift in strategic understanding of his security >> thank you so you said that you, that president's prepared, security guarantees for north korea we have seen in this administration that you can -- that when new administrations come in, they do undo things tht prior administrations have done. how can he secure long term security for north korea and for kim in particular? >> well, look, we have to do things that convince chairman kim that's the case. right? that's what we'll have to do let me give you an example we are hopeful we'll put ourselves in a position where we can do something previous

administration did not do. they signed a flimsy piece of paper, and we hope to submit a document that congress also has a piece of, so when administrations changes, they inevidentbly do, and this one will, six and a half years from now, and when that takes place, that chairman kim will have comfort that american policy will continue to continue down the same path on the course we're setting in singapore >> one last question >> thank you, secretary. first -- document -- [ indiscernible second, you said there's a threat of allies, north korea, wmd, is that a condition for the president, any negotiation agreement with the chairman kim, missile program and chemical weapo weapons part of that, and can

you discuss the format of the meeting? what will it look like >> the white house can talk about the format of the meetings when the time is right with respect to proliferation risk, it's real. there is a history of that with respect to north korea and difficult charges in the world today. they are connected the reason you want complete verifiable and irreversible is precisely that to the extent there remains stockpiles, knowledge bases, warehouses, systems, infrastructure, production facilities, i can go on, that remains, the risk of proliferation continues. it's our aim through the process and providing the security assurances that chairman kim will want that we can greatly reduce the risk that proliferation happens as a result of north korea's actions. >> one more, sir >> one more? >> sarah sarah? >> sarah >> can you explain the president's shift in going from

talking about -- defining success for the meeting of denuclearization of the peninsula to now talking about the need for more meetings can you explain what happened there and why the shift, and can you also describe your disagreements over north korea internally will the national security adviser >> yeah. with respect to the second one, i have read a little bit about this, and i love good fiction as much as the next person, but it is so much so that, you know, i'll be polite because i'm a p diplomat now, but those articles are unfounded and a completely false. i'm confident that will happen on issues from how long the press conferences ought to go to issues that really matter to the world. so it's absolutely the case that

we won't always agree. i don't think the president demands that, we each have our own views. your first question, i'll try to answer your first question, too, i don't see the shift as you do. the president's always understood that this was a process. it's been very clear there would always take a great deal of work to do this, so you can interpret how you will, but your characterization of that is also not reflecting the president's understanding. i think his understanding about the process is consistent since i've been working with him now almost a year and a half >> secretary - >> thank you so much that's secretary of state mike pompeo addressing reports about the upcoming summit in singapore with north korea tuesday. a couple headlines from that, secretary of state saying that kim has indicated to him personally that he is willing to denuclearize saying the u.s. wants concrete steps, not just words from north korea, and when asked if there had been progress in bridging the gap, the

definition of denuclearization, he said, yes, hopeful that kim will make bold decisions to denuclearize completely and irreversible and sanctions increase on north korea if diplomacy does not move in the right direction, and this is the only result that the president will accept, and so those are the stakes going into that tuesday summit we also just closed up markets as that went on. the dow had a 95 point game, only average in the green today, though, and s&p down two, and nasdaq duown 54, and russell don p.m. poi 8 points michael santoli is here, stephanie is here, and paul from the spoke investment group welcome to all of you. mike, this was concurrent with the close, did not move markets too much one way or another. is everything on pause until we learn what happens tuesday >> not just on pause for the markets until this occurs on

tuesday. i think part of a very busy week next week. we have the fed and central banks meeting, north korea summit, we have on paper the deadline of the position of tariffs, all coming next week. so i do think there's a little bit of a sense of let's see how it sorts itself out in the next few days, but i don't think north korea proper is a big market the market does not know what to price in better to talk than not talk >> trade stuff, stephanie, seems, talking about concrete, you know, goods and services, talking about tradeable industry, hearing about the effects every day. try to learn what that means to companies, but what do you do about north korea and prospect of denuclearization. >> i don't want to sound glib, but ignore it as an investor, otherwise you're caught up in the moves. in the extreme if it falls in the news, you like the stock a lot and fundmentals and nothing changes, sure, take that

opportunity to buy, but i think at this point, focus, continue to keep focus on fundamentals, and today was wild, absolutely wild >> wild? >> wild. a huge rotation day from growth to value >> huh >> we've have been talking about this all yearlo long. today felt good. i have a lot of value stocks, but growth outperformed value 1% year -- 10% year to date at histohi historic levels. you saw it move from tech -- >> yes >> yes and some of the value, we'll see if it lasts. i think it will. but that was -- that was the underlying feeling of the markets today. >> what does that tell you, paul >> yeah, i agree this was text location today in the russell 3,000, best

performance stoocks up an 15% an down 1%, and the six stocks were down 6% heading into today, and only group up on the day i think it was -- it was a typical textbook rotation, and, you know, over the last several years, we've seen nuke romerous one-day occurrences and asked if it's the beginning of the turn, but looking out past it, there's not a trend shift. could it happen this time? certainly. but it's not been the playbook to try to jump on these moves. >> finally, do you want to respond to that? is that sense of, we've seen it before, where there's a day or week or small period where the value names do better than growth, but does the trend come back to the floor and paying for the rest of the year >> hard to ignore technology

with fang included, fang is up 39% year to date, and software, same thing, so this has been massive, massive outperformance that euphoria at an all-time high in my opinion in tech be very selective. i think you want to be there, again, because fundamentals are so strong, but i think the market as a whole and the economy as a whole are getting better data. the atlanta fed, three weeks left of the quarter, and atlanta fed up 4.8 >> we're not doing that. >> even goldman said 3 partnersh3.8. >> even that's better than 2.2 there's a lot of of other signs and data points that suggests we are doing better, momentum is picking up if that's the case and it's sustainable, values should do better than growth, but up until now, people have not paid attention to that. >> let's see, look at this where mcdonald's fits in up today after the company said they are planning layoffs in effort to shrink the corporate structure. mcdonald's is not a value play, i don't think. >> no. >> think about this, too, we talked so much about the

tightness in the labor market and all of that, mike, is this relating back -- >> in is more corporate, regional offices things like that they are not saying, you know, we're going to cut the employees at each store by x percent there was a report by a restaurant specific equity research firm today that had positive things to say about how the fresh burger - >> because this is a move. >> this is part of the laggards catching up as well as news on restructuring and this may be fresh burger has sales momentum. by the way, mcdonalds have been beaten by wendy's year to date it's a catchup trade not a leader tacking on more >> fair enough copper at four year highs, thinking supply disruptions as they talk about negotiations now, we like copper going up for fundamentals, not because of supply issues. now the highest levels since 2014 this is a three, four year high.

you can read more into that than a strike >> what's interesting as oil has corrected and energy sector corrected a couple weeks we've seen, the industrial metals hung in, and they hung in really well on a relative basis, so that got my interest peaked a little bit. it's more than just they supply disruption issue, but copper's hard to get, hard to find, and fini finite there is a story to be made for copper versus oil, which is very fluid, no pun intended >> ha-ha paul, i mean, so to the focus lately -- if there's more about colbalt and lithium, do we rely on copper? >> lithium was last year now it's copper. i think the supply issues have been in the headlines, but i think they said yesterday that they are having hard trouble producing meeting demand there is some demand there,

pulled back a little bit, early on this year as global economic data slowed, but i mean, it was a really big breakout over the last four days, and you could contribute that to just a little more than supply issue and potential strike >> good sign if so earnings coming in we start with kate rogers. >> a very strong third quarter for the online clothing company stitch fix eps at 9 cents, a beat revenues at 317 million. the street had been estimating about 306.3 million. active clients coming in at 2.7 million. that's about right in line, but that is also a 30% year over year increase on that met trick. year to date, the stock is down around 23% right now, it's up 11% could be also because they named a new chief marketing officer,

deidre, from google, she was the senior director of global hardware marketing at google, kelly, so the stock up 12% it was up almost as high as 16%. back over to you >> wow good sign as you said, right out of the gate, kate, thank you docusign reported earnings for the first time as a public company, eric? >> that's right. the stock is up about 10% after hours. a surprising beat here, but the company made one penny per share. street expected a loss of 7 cents. that's a big difference there. no surprise they beat on reve e revenues by $10 million and strong second quarter guidance stock up 10% after hours you can see it's 6% now. it was as high as 12%. just in the last two weeks, stock was up about 33%, and it's now more than doubled where it originally ipo'ed in april back to you. >> wow >> what do you think about that? >> they were caught up in the wave of disruptive niche tech

that was flying. >> disruptive niche tech >> like the fang-jv. >> yeah. >> in narrow areas like docusign >> wow broadcom, josh lipton has the numbers. josh >> kelly, broadcom reports 4.33 eps, and the street was at 4.76. revenue at 5.02 billion, and street looked for 5 billion. q3, 5.05 billion, and the street was at 5.06. they preannounced april 30th, and it was better than expected, 2.3 million included chips for tech, and chips enable wifi, google, blue tooth, enterprise storage at 1.2 billion, and

industrial another 263 million, and conference call kicks off at 5:00 p.m. eastern, kelly >> all right thank you, joshua, shares inching higher we have a news alert on deutsche bank, wilfred frost has that >> in response to the story from bloomberg a couple hours ago suggesting the chairman of deutsche bankers with tieups, sg moments ago, quote, the chairman asked constantly about this matter the answer always the same all the pro and against arguments can be raeead in repos in the media he sees no reason to raise the issue. sounds like a cryptic response, but i would say knowing deutsche bank as i do in a few other conversations with sources that i had, this is fairly unequivocal pushback they don't like to engage in any comments like this this is as far as they would go, and this is definitely an attempt to push back saying this is not the case. why is on the agenda, of course, both banks suffering not just recently, but year to date, down

39% year to date, and share price of deutsche bank, comments back 24%, and struggles, of course, make it plausible it would be allowed for competition concerns and, of course, the german government owns 15% of commerce bank, and they would like to see a national champion, again, which they do not have at the moment, but either way, the response from the bank very much intended to be a pushback to the agreements, kelly? >> thank you mike, what do you think about all of that? >> well, i mean, i agree that it seems like deutsche bank does not want to embrace the conversation, but that shows the market, itself, is looking for potential rescue scenarios here, and that's why it comes up >> steph, last words on this >> i think that european banks are hard to own. i mean, you don't have seat car, you don't have any catalyst, and you have ecb all over the place now about policy, but rates are very low, hard to make money, and from that interest margin expansi expansion. u.s. banks are cheaper they are not cheaper, excuse me,

but cheap enough, if you will, and you do the c-card situation, and that should be a catalyst. >> those results are about to come out, right? >> the first part on the 21st, and c-card later >> so many acronyms. stress test, right >> i'll be here. >> you can sort through it all stephanie, paul,thank you both very much. >> thanks. >> talking about markets with us this afternoon warren buffet and jamie dimon teamed up together to end quarterly forecasts. listen >> i never saw a company whose performance has been improved by having some forecast out there by the ceo that we're going to earn kx. >> it puts a company where management on down feel obligated to deliver earnings doing things they wouldn't have otherwise done >> but our next guest says ending guidance only hurts retail investors we'll debate that straight ahead. energy, the best performing sector on wall street today with a rebound in oil prices.

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warren buffet and jamie dimon sat down with becky quick to talk about short term thinking and investing in companies, and why companies should do away with quarterly guidance >> when companies get to where they live by so-called making the numbers, they do things that are counter to the long term interest of the business, and i've never seen a company whose performance has been improved by having some forecast out there by the ceo that we're going to earn x that's sending the wrong message and delivering the wrong results to the company and to the country. >> it can often put a company in position where management from the ceo down feels obligated to deliver earnings, and, therefore, they do things they wouldn't not otherwise have done if you have a good board, the board says, if you have a great investment opportunity, you say

it costs another couple hundred million this quarter, someone like warren would say, absolutely do it that's good -- that's future earnings don't hurt your company because you're trying to meet a short term thing >> joining us now to react, john levin from levin company strategy, and dick, welcome to you both >> john, a good idea >> it's not, i've been in public a long time. great respect for them, and when they say something, i think the balance is in their favor, and you should pay attention to it -- >> but >> but i'm looking for corporate leaders coming out with the other side, and i generally believe that there needs to be short term investment, it can be handled by more transparency and discussion by companies. if the company will explain what is going on and what will go on, investors are entitled to understand what's happening with the investment

the quarter is over. they are entitled to understand all changes occurring that may effect it. management has the eighability o invest >> their argument is this is bad -- encouraging bad behavior, and you said getting rid of this is bad for the public? >> right what i believe is the public is helped by avoiding information vacuums that creates fear and uncertainty and breeding ground for false rumors, destabilizing for computer programs, and one other point here is you can't abandon technology there's people who would taking and studying credit card developments and people studying the number of cars in parking lots investment business is fiercely competitive. people are entitled to understand what the management and judgment is about the future based on present plans >> what do you say about this

proposal do you agree that it -- with buffet and dimon it's a good idea or a dangerous idea like john >> i completely agree with jamie and warren i never did guidance for a simple reason. i didn't know what earnings would be there's too many moving parts, and there is a real danger that if there are issues and guidance out there, people lower in the organization may not be as transparent of giving information up to the ceo and others, you get various behavior that's dangerous in my opinion so i have one example -- >> breeds corporate cultures -- yeah >> it does, and short termism where you may not do something you need to meet the short term numbers. one example. wells fargo's always been the

largest mortgage originator in the country and had $2 trillion servicing portfolio of mortgages. you have to mark that to market at the end of the quarter. the basis you use so mark the market is the last day of the month, the 10-year treasury. that's the basis how you mark this portfolio god doesn't know what the 10-year is going to be you have to do this three months ahead of time to give guidance now. what's going to be three months from now probably doesn't care because it all works -- you could have hundreds of millions of dollars of difference just because of that calculation over all the quarters, it works out. you cannot be accurate, or if you try to be accurate, you will not -- you'll hedge the wrong way. it is dangerous. it does not work, and i have never done it and would never do it >> i have a great friend telling

me i'm wrong on this issue as well as these three leaders, but i respond to the soundness of the point by saying investors do not need quarterly earnings guidance they need guidance towards variables with an impact on earnings, so if the 10-year moves by x percent, what impact, no one knows the variables going on, but what's key variables for effect >> if you go through these, there's 300 pages of all the issues that could impact profitability of the company and we disclose how that could impact not only the mortgage portfolio, but all the long term investments we have, and we give that sensitivity analysis to

people, and i would bet you there are not 1% of our investors who takes the time to read the 300 pages they are delivering each and every month about sensitivity. >> that's another issue, the documents. mike >> to address the points made on both sides, one, clearly not every company is suitable for veryexplicit earnings guidance it's a moment in time of complex balance sheets are different in my view from a mid-size, casual dining company where you have an idea you have your budgeting and why the same-store sales should track and what promotions will be and advertising spending. you can get an idea. the other idea is if you don't give guidance, analysts are still going to have published forecasts. >> yes >> and if they are wildly wrong or dispersion is tremendous among them, are you okay as a ceo to allow that, orbetter to

have the best informed party give the view on which way the numbers are going? >> i think the absence of quality informs delivered reduces vehicle tellty and helps the public and leave less room for rumors creating inside information. there's people who know and will find out >> you don't want to defend giving earnings guidance, but want companies to be able to talk more in general about their performance and all types of investo investors, right >> i'm in favor of that. i think that would be fine >> i don't know what the beef herd will be and chicken herd and sensitivity, but i like guidance they know pretty well what are the broilers and the pigs, and i think it's helpful - >> and, by the way, the history, i bring it up, the reason we got to this point is it used to be that privately, the company would go to the analysts and say, numbers are too high, too low -- >> they do >> pick a a shareholder, hey, this is what we are look iing a

so selective disclosure was an issue so this was a way to bring it out into the open >> how come first call estimates are close. where do the numbers come from >> dick, final word. >> well, almost all investment presentations today are on the internet, which it was not the case before. you are getting instantaneous views in between quarterly reports about what's happening, if you want to go on to that, and let me just say it -- the industry that gives guidance, almost every quarter is technology if you look at the accuracy of those predictions, they are terrible, and if you want to buy technology products, the best time to buy it is in the last two weeks of the quarter now, that tells you something about guidance and the behavior that it can create >> from a customer, dick, or you mean - >> as a customer as a customer of a technology

company, you -- your best -- your cheapest way to purchase those products are in the last two weeks of the quarter and, certainly, the last few weeks of the year because people are trying to make their numbers at that time, and you get the deal. >> that's right. >> i had no idea >> that's just the fact. >> i'm left out of the party i didn't know. i'm going to change -- >> the joke used to be the investor calls the cfo of a tech company on noon on the last day of the quarter, say, how's it looking? the guy says, i don't know, the quarter's only half over >> that's not true >> it's 1:00 a.m. in the morning. it's 1:00 a.m. >> oh, all right, well, gives me new shopping ideas, guys, thank you, both, very much john and dick. >> that's good >> you can find the full interview right now on cnbc.com and the debate, of course, continues. news alert on tariffs, eamon? >> reporter: kelly, "new york times" reported this afternoon that the counsel of economic advisers here at the white house

is conducting an economic analysis of the president president's tariff program, more likely to hurt the economy than to help the economy. that, despite the fact that senior administration officials have been selling the tariff plan as a way to boost the economy long term. we heard from larry kudlow here at the white house yesterday, chairman of the national economic council, another white house organization, here yesterday boosting the president's negotiating skills saying that helps the economy in the long run take a listen. >> i also think his role as -- probably the strongest trade reformer the past 20 years, and not only protect american interests, but to open up avenues of growth for our business and workers, and, frankly, to help open up world growth >> reporter: the white house asked them for comments here on their "new york times" report, but they are not responding to

the request just yet we'll bring it as soon as we have it, guys. >> thank you this is how we finished on wall street. dow in the green, everyone else in the red, though s&p was down 2 nasdaq down 54 you heard them talking about the rotation, and tech not in favor so much as value stocks, and small cap russells, down eight too. the other big stories of the day. here's the rapid recap buffet and dimon double down on plea for companies to stop issuing quarterly guidance >> i've never seen a company whose performance has been improved by having some forecast out there by the ceos we're going to earn x. >> often puts a company in a position where management, you know, from the ceo down, feels obligated to deliver earnings, and therefore doing things they wouldn't oeftherwise have done u.s. strikes a deal with zte ending sanctions >> at about 6:00 a.m. this

morning, we executed the definitive agreements with zte >> this morning, amazon launched fire tv q, amazon echo voice activated speaker that acts as a streaming box. >> more and more ways to watch content, a lot more great content, and we wanted to create a device that simplified that for customers. president trump talking trade with the japanese prime minister at the white house today. >> the united states and north kr korea held direct talks for preparation for a summit, and north korea confirmed to us willingness to denuclearize. >> that was the secretary of state mike pompeo during the close, speaking to reporters about the summit on tuesday, and, mike, again, reiterating the goal is denuclearization they have a specific outcome they want verifiable things there in mind, and saying the president's willing to walk away, but it's hard -- expectations running so high into this. >> i wonder how high they are running. i think they are posing them this is ultimately the goal is, our definition of

denuclearization >> what do you think happens if the president walks from the meeting, what happens to the markets? >> if he walks out, we are back to where we were >> not a major reaction. >> i hate -- it's a 65-year-old stalemate. >> yeah. >> across the border yes, of course, the nuclear element now is much more ur gget >> if there's a deal, is there a rally? >> i don't know about a human r -- huge rally it bears on what's given or taken on the china trade front that could have more relevance >> true. we'll see. let's get over to sue now, sue? >> this is what's happening at this time, everyone. president trump hosting japanese prime minister abe at the white house. trump says he does not have to prepare very much for next week's north korean summit saying he is already well-prepared. >> it's about attitude it's about willingness to get things done, but i've been

prepared for the summit for a long time as has the other side. they have been preparing for a long time also, so this is not a question of of preparation it's a question of whether or not people want it to happen, and we'll know that very quickly. >> iraqi war planes bombing an islamic state group target in syria according to the iraqi ministry of defense. iraqi jets have been targeting islamic state positions across the border responding to what they call terrorist infiltrat n infiltration this is a cool story new mars discoveries are advancing the case for possible life on the red planet or even present. scientists reporting that n there's potential building blocks of life in lake bed there's molecules in bedrock suggests conditions may have been conducive to life we'll see. you won't find me on the red planet soon. >> no.

i'm not big on the map et stuff. >> i know. >> i mean, this one, but - >> yeah. right. exactly. happy where we are >> exactly sue, thank you >> you got it. >> see you later, sue. >> thanks. phil lebeau looks why u.s. airlines boost flights across the atlantic, phil >> it's the hot ticket this summer, not just europe, but there's a huge spike in the number of seats going to the cities iceland, anyone? when you see the numbers, you'll be surprised next on the "closing bell.

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u.s. airlines make a bet on flights to europe. phil lebeau? >> it's not just u.s. airlines but airlines from europe coming to the u.s. for the first time or creating new routes creating a boom in the number of flights out there. for example, look at dallas to iceland. within the last two weeks, we've seen iceland air begin flights three or four times a week this is a low cost carrier from iceland doing the same thing what's american doing in the home market? answering with daily flights between dallas and iceland this is why when you look at the numbers of in terms of the number of transatlantic flights for the summer time, according to oag that tracks international flight traffic, look at growth 168,000 flights in the summer of 2014 this summer, they are expected

to be more than 215,000 flights with many of them coming from lower cost european airlines that are just starting transatlantic service. >> we don't know if all of these airlines have financial staying power, so this may be a great summer for long haul, low cost flights to europe. we don't know what next summer will be. >> look at shares of american airlines, which, again, is starting service between dallas and iceland. the ceo of american said sunday that usually when you have higher jet fuel prices, that might force the industry to cut back on capacity we'll see if that happens because, kelly, jet fuel prices are up 50% in the last year, and, yet, we still see capacity, especially to europe increasing. >> all right feels like it can't last phil, thank you very much. >> you bet >> by the way, if you go to iceland, flight is cheap, but the food is expensive. oh, my gosh. makes new york look like a bargain. anyway, plan for it.

the energy sector rallying into the green for the week s next, fast money tradersay whether energy stocks head higher stay with us a flight, hotel, car and activity all in one place. ♪

energy best performing sector, oil and gas stocks with

the best day since late may, and joining us to talk about that, fast money trade rtraders, guy . >> hi. >> i'm not saying this is anything to get excited about, but energy had an amazing run and it tanked, and now it's starting to come back, so, tim, where does that leave us where does that leave you in the space? >> interesting is that energy stocks are outperforming the underline which was not happening in oil, and i think investors realize these companies, else the emp names, upstream names, are managed and run for equity investors, not growing at all costs, supply and demand fundamentals are better, and there's global helping more. >> pete -- >> yeah. >> that's okay it was guy earlier >> and the best part, i did not hear myself saying, like, what's the problem? >> it's all good it's all good, kelly >> we just want him to grow a ponytail >> right >> what do you think about the

space? >> well, i agree with tim. they have not kept up. certain names absolutely have far more upside than others. i'm in chevron and exxon go back two years ago, oil trading at 45. we're at 65, stock up $2 that's not enough. it is definitely lagging i think it's going to close some of that gap, so i'm in both names, but i think in terms of performance, there's more upside right now out of exxon there's exposure in the services as well, so i sold a lot of energy out holding on to three, four names right now, and i like where i am, and i think exxon and chevron are great names. >> quickly, in te think it's underperform, and that the refiners underperform too. i want to be in mlps that benefit from stability in oil prices and projects in the pipelines have been built, and they are now cash generative again. >> the important thing is the volatility of oil, itself, staying within the range it has,

this gives a chance for all these names to move to the upside i disagree with tim. i think that exxon is a $90 in the not too distant future >> mike? >> pete has a good point, two years ago, it was too high at 45 >> nice going. nice job >> thanks. >> guys, thank you >> tim and guy catch all of the "fast money" action at 5:00 p.m. eastern time in 13 minutes from now amazon shares have been sky rocketing this year. now one wall street bank warns ve could be hit by a massi strike at ups. details coming up. duncan just protected his family

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fidelity. open an account today. two separate issues could spell trouble for starbuck's we'll tell you what they are in today's takeaway next.

welcome back it is time for our takeaway. and we begin today with more on that ups strike we told you might happen yesterday whether workers do strike or not for the first time in a couple of decades to demand higher pay, transport costs are going up

and now that could impact amazon's near term profitability. and i'm sure amazon is absorb the increase a lot better than mauler companies >> they can absorb it. the bottom line doesn't matter as much. but also they did recently raise the price of prime which is mostly about getting things delivered past but one of whole choke points of the whole economy right now is ground transportation. interesting to see if amazon wants to keep absorbing it. >> and going into christmas, if this is just going to get worse and worse with tighter labor market. >> it is amazing because everybody in ecommerce says the same thing and amazon found out free shipping is almost a must for so many people doesn't matter if you show them the net net, if they pay for a little shipping. it doesn't matter. i want it free. >> i feel that i am that. >> entitlement. >> not but i feel i'm not going mess around with anything

and starbuck's is raises pricing. not a huge increase but the third in three years and the wall street journal today highlighted starbuck's has more u.s. locations than mcdonald's, mike so probably can afford to expand much more sales are slowing so they are looking to price hikes now. >> they need to go a little pricing obviously and the company recognizes the u.s. is not the core growth market it is a mature market. not to say they are going to stop adding stores but they are at the point mcdonald's got to a long time. which isn't ant covering more intersections. it is about getting value. and it is interesting. starbuck's coffee is a combination of a staple and luxury good. it is something people feel they need but they can get it somewhere else. >> i don't think it tastes that good but a lot of other people -- you know, i like the dunkin and the mcdonald's coffee. but you hate the dunkin. >> -- strong coffee. >> i can't do it anyway google -- this is our last story

today. google is trying to clarify its principles after dropping a contract with the the pentagon google said it will not use its in the -- will continue working in other areas cybersecurity but -- stay out of the business of war and won >> i don't know if it will placate them obviously is all about them. it is all about them not wanting to feel as if they are contributing to something they disagree with. even though it is messy. >> mike bloomer came out in support of google saying the employees have to realize the importance of having a strategic relationship between tech and military. >> of course obviously you want to be in that business the quality of your product, you know, you would rather have them in there than something else prudenti presumably if you think it is a good product. >> and tasks important to national security. >> -- contributing to violence. >> right

bag after hours earnings movers. and one retail stock gets a big pop.

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than 6% after the service blew out wall street's earns estimates. docu-sign in its first earnings report is spiking after posting strong profit and forecasting sales guidance the guidance, michael up more than 6%. and zumiez up more than 11%. for a company like them you were saying it is okay. >> i think it is okay. it is a choice you have to make. >> you don't have to do. >> close to half companies don't give it. you can give annual guidance and input for numbers maybe down the road it's really a debate going on for like 18 years since regulation came out. >> at least they are not forcing it one way or the other. that is why i think you shouldn't require. you shouldn't been a it. >> and that's what buffett and dimon have said. they are recommending ceos move away from it. >> for ones it is harming the culture, maybe they have the backing now of two high profile

guys saying, you know, i think j.p. morgan should get rid of it them if dimon. >> right don't want to play along. >> get rid of it. >> and j.p. morgan has analysts who probably rely on it. >> very much. >> there are ideals and there are pragmatic issues. >> that's it for "closing bell" today. thanks for joining us everyone "fast money" begins right now. "fast money" right now live from the nasdaq markets over looking new york city's time square. melissa lee. tonight on fast is bitcoin finally growing up there is one major sign it is reaching adulthood and top technician says as the bullish signal for the crypto universe he'll explain. and jamie dimon and warren buffett teaming up, calling for a big change for wall street one trader says it would be a disaster for companies we've got the details. first we start with a brazilian bomb shell check out the etf in