that is his yacht, which is, as we are told, parked now out on montauk. it's called privacy. i don't know that he'll be staying there during the week, but it would be a nice place >> he should >> he should . >> it's big enough >> this show is going to singapore and we'll have full coverage next week thank you for watching >> "closing bell" starts right now. hi, every, welcome to "the closing bell" on friday, what a week, what a day, g7 meeting squarely in focus. the markets turning positive throughout the day now, dow's adding 46 points here in the final hour, and we have all the major averages, not huge gains, but still, a tenth of 1% the dow, though, still posted the best weekly gain in three months >> a a gogood intraday turn aro. the world's seven biggest economies are in canada for the

began g7 summit. we are in quebec with the latest, kayla? >> reporter: you can see a glimpse of the working session among these seven leaders. at some point, momentarily, this last hour, they gathered for a family photo, as is tradition. president trump standing to the right of canada's prime minister playing host for the event according to the press poll, one of the reporters present on-site shouted a question at president trump when he was speaking to german chancellor merkel about whether he's relenting on tariffs. he said, i don't know, ask this great lady earlier today, you saw white house parade a peter nevaro back in washington saying the tariffs worked, bringing leaders to the table, and they had not been at the negotiating table before willing to talk about economic topics, so now that all the leaders are sitting around this round table hashing out some of

the issues, what are they going to be deciding we'll see. according to sarah sanders, the white house press secretary here in canada, she said that there will be an attempt to reschedule a bilateral meeting that had been shelved between president trump and the president of france who tweeted an image of the two leaders sitting on the couch casually having a brief conversation they exchanged pleasantries, discussed trade, and expect a meeting this afternoon this is what else you can expect this afternoon in addition to that potential bilateral with president macron, we expect trump to sit down with prime minister justin trudeau of canada despite the fact they are engaged in a twitter feud, we'll see what comes of that there's a working dinner this evening at 6:30 p.m. we'll see if policy has been

hashed out or whether what the joint communique looks like by then, and whether the president signs on before leaving tomorrow morning. guys, back to you. >> looks like some kind of table sculpture. >> a a table lamp or something referring to the pictures we brought out. >> weirdest looking video clip of the macron and trump on the couch. >> it is odd-looking continuing the reporting all day is the strength between the president and the other leaders within the g7, but, actually, if we compare to roughly a year ago at the g20, one could say that it's improved, the president pushed his way in front of the group. remember that famous handshake with president macron. that's been a net improvement over the year, has there not >> reporter: well, the body language certainly between the g20 last july and this summit, at least today, what we've seen so far, does seem to be much

more -- but this is normally a building exercise, a building of like-minded democratic nations already in agreement before they sit down last year, we did see some of these divisions starting with the president deciding not to sign on to the part of the communique last year about climate change a week later, he withdrew from the tariffs accord, and since then, there's been many more divisions on iran as well as on trade, so seems like this chasm between the u.s. and other six nations is deepening behind the scenes, ideologically, even if they are all warm in person >> great stuff, thank you very much for that, and, kelly, i guess if we needed a sign that the photograph does not tell the whole story, that was a nice laugh there between donald trump and may, which, again, no doubt hides some frictions >> yeah, trying to lead the eu >> right exactly. >> bruce is former u.s. ambassador to canada along with the senior research fellow for

more on the meetings welcome to you both. >> thank you >> we're beginning to start with you because this summit is happening in canada, and, obviously, both have been vocal about unhappiness with the u.s. lately, but does it mat ere if there's not going to be a statement, a communique that comes out of this? >> well, you know, the president said when talking about the trip to visit with kim jong-un, he said, it's all about attitude. i'd say the attitude comes in with this meeting, friends and allies best trading partners is suspect at best. i think the hostility in twitter over the last 24 hours, comments made before he arrived, i think, you know, foreshadowing a more challenging conversation that will take place between what would be the best friends and allies we have >> you saw the video of the president talking with president

macron of france in a conversation what do you think macron tries to impress on the president in terms of what's in the tool box, as it were, for the eu in terms of possible retaliation? >> well, i assume they will be trying to retaliate against -- the europeans don't want to retaliate because they understand retaliation hurts them too, but i think, also, there's a particular relationship with macron, right, who last time he sat with president trump, came across as his best friend, and president trump turned around and exited the iran deal, so i think macron is probably going to say game over we're going to stay polite, but it's not going to be your way or the highway. we're nato allies. we've been friends for a long time this is not a way to treat

friends. i assume he would be appealing to that side of the relationship between the europeans and the americans. >> german chancellor merkel with comments on the news wire, she can't say if there's a common communique to come from this eu countries say return of russia needs are not met, and it would be a sign of honesty, bruce, showing we could not agree, right >> i think that's right. i returned from ottawa, and i will say there's a lot of people in the states that are not fully appreciating how wounding the tariffs were to the canadians on the ste the steel and aluminum side. it's hard to get conserve tiatis and liberals to agree on anything, but they are complete agreement they are very much offended by the president and the steel -- >> in terms of bringing everyone together, canada together, europe together, they've never

been -- the g6 never been so happy with one another as when mad about the u.s. isn't he right about the dairy tariffs? >> it's always a subject we've talked about, but people are missing the fact the u.s. has a surplus in selling to canada, and overall trading relationship with $680 billion is surplus of goods and services - >> can i ask something >> yeah. >> can i -- if i may ask something, i think something that is lost on this conversation is whatever tariffs the canadians are applying on u.s. goods is bad for the u.s., but it's worse for canadians consumers, right >> yes yeah >> the thing is, too, for the american people may not -- i mean, the american people fully understand how hurtful tariffs are, not just to canadians, but to them, and i wish the american people understood more fully how actually these tariffs, which,

by the way, are offensive because they are using an actual security argument against nato, but they are actually really hurting the american people in the name - >> hurting the canadians >> they are. >> hurting everybody >> yeah. exactly. bad for everybody. >> what were you going to say? >> bad for american consumers the most that the american - >> how do you get the canadian tariffs down, then if that's the case, they've been there for decades, canada's massively protective of the industry, that's fine, it's a national interest. >> it was already negotiated down, though, in the tpp >> exactly >> that's the objective -- >> tpp - >> it was done >> it's the way to go, i mean, imposing tariffs on canadians as the first american people is not the way to negotiate for the canadians' argument to stop

hurting its consumers by allowing more dairy at cheaper prices from the u.s. people think about this the wrong way. the only way to buy really effectively the hand of foreign governments who commit to each other's welfare is through multilateral agreements. tpp was supposed to achieve that the u.s. decided to step out and try to use force >> yeah. >> this is not the way to go >> okay. thank you very much for joining us we'll leave it there for now >> pleasure. >> kelly, all i was going to add in terms of the g6 united when against the u.s., i do not understate the impact the prime minister came out to say i would support russia joining like the president. that's a slight difference now we had not got that classic western liberal leader in position there >> because of the weakness of the economy? >> i think it's to do with that, but other aspects, of course, with that sort of, i mean, generalizing things here, the

brexit, the italian, you know, the leak eed theme - >> i don't want to hear italy saying we'd be open to >> exactly right >> not at all. >> there's sentiments coming out there, seems united against the u.s., but italy is worth watching and where that develops >> right and just watch that 10-year yield today in italy over 3% with this going on turning to tech, the g-7 is carrying on, if the communique comes out there. apple, shares falling on a report from japan raising fresh concerns about growth. bertha has more. >> kelly, harkening back to ronald reagan, there they go again, apple coming off three days of historic highs, on pace to close flat for the week, and, again, it's a report that comes from nikkei citing sources they are cutting orders to suppliers from 100 million to 80 million iphones, raising concerns for the chip sectors' demand

apple suppliers the biggest losers on the nasdaq and skyworks and broadcom that beat on the second quarter, but disappointing guidance the chip sets are on pace for the worst date since april when similar headlines prompted a six day selloff and in january, fears sent chips down five out of six days. going into february, chips remain 3.5% below the march high, and tech sector put in new highs this week, again, guys, so take it with a grain of salt we hear it often with apple. >> great stuff thank you very much for that kelly, as we heard, we heard it before, you can stop that guidance >> not this again. >> well, fair point. >> well, they can believe management or not. >> anyway, seeing that again apple share price, of course, they shook it off last quarter let's discuss it further kevin from riverpoint is here,

tim, and our own rick santelli good afternoon to you all. tim, starting with you today, we, of course, saw a negative open and morning. encouraging afternoon. what are your conclusions from that, in particular? >> well, certainly, the upside seems to be the path of least resistance for the market. i think that after europe closed, maybe that got some of the selling pressure on the morning out of the way, and closing down half a percent, and i think it was also very constructive to get rotational actions back into the consumer staple stocks and the stocks because tech is clearly taking a breather after nasdaq closed at an all-time high wednesday >> it's. interesting. >> big pharma has not been in a leadership position in quite a while, highest levels in three months the s&p pushes resistance at

2800, which was hit like a brick wall in early march before a sharp selloff, and so it'll be very intrigues to see is as we approach 2800 on the zcs&p, how the market reacts. >> 2776 with events con fronting us next week where are you investing? >> right now, still invested in the u.s. we like stocks over -- one of the opportunities we kept was investing in italy - >> in the bonds? >> in equity >> huh >> reason for it is because they are trading two multiples light compared to the other european stocks - >> only light? >> there is a reason for it. >> yes, there is one of the reasons we avoided was banks, obviously, and thing of it is when you look at italy as a whole, we, you know, they are are doing good in other sectors, and, you know, there's good companies there, so we thought it an opportunity. you get the opportunities when,

you know, when there is fear in the market >> people think you are country city >> right, exactly. take advantage of the opportunity to do that >> brave man, kevin. rick, in terms of the agenda next week, a lot of central banks meetings, ecb, the pick of the bunch, perhaps, that's the most market moving of the central banks leading this week? >> i think that would be the outcome. i personally think how mr. draghi sets the table and how commitment to reduce or eliminate qe, the deadlines brought up, all of that, in my opinion, makes friday's bank of japan meeting mightily more important. the bank of japan will be odd man out with unrealistic estimations of reaching goals of inflation never to be hit on a sustainable basis. the economy already faltered a bit. the pressure is on in my opinion, but everybody, of course, is watching to see exactly how fine of a point

there is on draghi's time line with qe. don't diminish the fact while our fed meetings go on tuesday and wednesday, there's cpi tuesday, ppi wednesday, and on monday, we auction 3s and 10s, 53 billion, wilf, 30s out of the way tuesday, clearing the zone for rate increases that many expect on wednesday. it really could be the huge week with regard to policy, traders down near optimistic, with regards to north korea, questioning monetary policy, but for the one thing that does not bother anybody on the trade floor is trade policy. >> or what about, guys, last word to you, tim, nuclear summit tuesday. do markets ignore this, or do you think it will be a major focus? >> i think the markets are going to pay a tremendous amount of attention to it. if there was some type of a deal made or indications that a deal

is very likely to be consummated in the relatively near term, that that would be extremely positive, almost a mini piece of it >> not affecting the market now, you don't think? >> i think a little bit of it could be priced in i think there's optimism for it as rick mentioned, but i think this the markets look towards some definitive further steps in that direction >> you are shaking your head, skeptical of the deal or markets? >> the markets the markets have not cared about north korea all year you know, just a headline, you know, a side show for the markets' perspective >> could there be a piece dividend if there is a big - >> more of a dividend for the trump administration, and that would be bullish >> yes i see it as that the market - >> seriously - >> the market is 2800, upside resistance, and only way to

breakthrough that 2800 level is if we get the tariffs offthe platform >> okay. guys, leaving it there, out of time thank you, all, very much for joining us tim, kevin, and rick meantime, market flash and news in the semiconductor space, l t leslie >> deal talks in the semiconductor space from cnbc.com, and now, alex heard from sources the apple supplier, dialogue semiconductors in talks to acquire the touch screen maker ynantics it would be worth $59 per share, all cash, according to the initial bid sources are telling him about, but the talks have been ongoing for months, and if the deal comes together, the price is higher than $59 a share. you can see, synaptics' stock up

10% on this news today, guys back over to you >> leslie, thank you very much for that a major shakeup at verizon announce iing a new ceo. new details on what it means for the strategic plans coming up. zblrc what happens when pigs are in a trade war live to the world's pork expo in iowa where the farmers are navigating the waters of the international diplomacy. >> that's not the only animal on the show either. >> it's not. we want to hear from you wilf has an animal-phobia. >> only one animal in particular generally, love animals. >> wait physical you hear it

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welcome back, alibab announced new funding to pace plans to provide financial services to the unbanked and underbanked customers. when they went public in 2014, and -- >> today's funding, now they are

picking up valuing the company at $150 billion, according to the wall street journal, nearly double goldman sach's market cap of $88 billion. >> amazing >> i mean, more amazing thing about this to me is not just the size of it because a big chinese financial company can be bigger -- >> $50 billion >> sure. but it was $60 billion two years ago. which is more impressive, the pace of its own growth relative to what is, you know, the seventh biggest bank in the united astonishing pace of growth, and related to that, numbers released in march, 870 million annual active users globally, 15 million businesses in china >> size of facebook, which is extraordinary. how banks are disrupted by payments and a lot of this new technology in the next hour of the show with nicole >> only thing to say in terms of valuations, same when we get them for uber, they are private

market valuations. >> fair enough >> you don't know what's atta attached in terms of priority capital, et cetera, et cetera, and if so, what it lists, can be a valuation that seems below itself >> does not mean it keeps growing as seen now with a number of companies. >> still, though, independently of alibaba and jack mar holding it >> alibaba >> alibaba >> the ceo of verizon is stepping down. the chief technology officer will be taking on the ceo role now, and shares are unchanged mostly on this let's get more from l.a., julia? >> reporter: changing of the guard indicates verizon commitment to the next generation 5g as a strategy to stay ahead of rivals the ceo of ericson is overseeing the buildout of the fiber infrastructure and 5g. which is what tim armstrong said

about the appointment to jim cramer >> impact is great because it's really about 5g, and 5 has been a leader in 1 to 5 jmg, where te world is going, and with lowell stepping up, really tells you how serious we are in building out the next level of connected consumers. >> reporter: and mcadam telling nbc the board wanted a fresh set of eyes. verizon shares are up 38%. that's far underperforming the dow. verizon struggled with competition losing subscribers to t-mobile. its positioned as a lower cost user-friendly alternative, and mcadam is buying aol and yahoo! draws scrutiny inat&t, making mn content. back to you.

>> thank you very much finish that in los angeles. catch cramer's interview with the ceo, tim armstrong at 6:00 p.m. eastern time on "mad money. inside look at america's latest super computer that could give the country a much needed edge on everything from machine learning to autonomous driving in the race for computing supremacy. >> speaking of races, eric is at the triple crown with justified, eric >> reporter: okay, i'm going to see can i can get on the horse and track, t buif not, we'll talk about the triple crown when we continue.

welcome back after winning the kentucky derby and preakness, justify will attempt to be the 13th horse to win the triple crown tomorrow in the running of the 150th belmont stakes we are live -- you're not on the horse, eric. i'm -- >> reporter: i tried to do that segment. i almost got injured glad i made it herement i'm not on the horse they are going to start a race in minutes, actually, so you could see horses behind me, but the numbers are getting out of control. they are astounding.

because justified is racing for the triple crown, they expect an olympic sized audience, like 20 million people watching, compared to 6 million when it's not a triple crown at stake, a typical race did you see the horse that went by the betting numbers could be 80 million to $100 million for the race tomorrow. a typical race without a triple crown at stake is $50 million. that's a big thing the sponsorships so justified, he's like a big-time athlete with a sponsorship deal and agent, ben sterner, the agent that puts the deals together, he's done the last several triple crown hopefuls, but this deal is 20 times bigger than any of the others this is what he had to say >> this is the largest deal in the history of horse racing for a horse. we did the deal for american and california chrome, and we did that sketchers and monster, and wheels up, this is a bigger deal >> reporter: finally, the breeding nay are saying this could be a $60 million breeding deal for

justified after he retires from racing maybe after this race or end of the season a lot of big money there, and what's interesting, finally, because there's so much money and expensive, it's turning into, like, a game all the owners rather than owning 20 horses outright, they own partial shares in four40 ho so one or two make it big, hedging risks, making profits there. >> george soros has a stake in the horse, in fact, but a separate question, which is that when we see or see fully the legalization of sports gambling, is that a swing factor for horse betting or is that more nfl and nba that'll get a boost? >> reporter: what's interesting because for years now, you could have already, today, you could go on your phone, bet on horse races all around the country you can do that right now. this is not going to change how you bet on horses, but it might change what happens at this facility you can come here, bet on horses, but while here, place a

bet on basketball and football, and it gets you to stay longer with more bets available to you. >> i heard people say that could actually hurt horse racing bets because if people, you know, maybe you're interested in betting or maybe not, more interested in what happens with the cavaliers and warriors tonight. >> reporter: yeah, that's -- look, it's going to be an interesting economic theory. all the assistant professors around the country are looking state by state to see how they have different rules and does it help horse racing, hurt it, we don't know this is one of the gray economics. >> it does not what the professors and economicists say, it's what you say. >> i want to go back to the horsephobia. >> that's a bit too close. particularly when they run they big and powerful. >> reporter: there's some room >> one animal that scares me anyway, eric, outstanding stuff. >> reporter: thank you >> it's confusing, it's the

belmont at elmont park >> who knew. >> sue >> kelly, wilf, this is what's happening at this hour, everybody. the special counsel robert mu l mueller brought additional charges against paul manafort for obstructing justices the charges were released after being accused of witness tampering. kia recalled a half a million veehicles in the u.s. because the air bags may not work in a crash. it covers vehicles from the model years 2010-2013. authorities in guatemala ordered new evacuations from around that volcano that's already killed over 100 people. rescue teams searched for victims were told to move back from the volcano after experts detected activity. and buckingham palace says

queen elizabeth had surgery to treat a cataract last month. the comment was released after she was seen wearing sunglasses. continuing a speedy recovery that was the garden party. >> we are laughing because any royal story now also slips in, doesn't it >> absolutely. it does. you know, i'm thinking of you, wilf i don't want you to get home sick >> you know -- >> i think it's because you just heard the story. >> sue, for next thursday, what can we slip in there world cup. >> absolutely could. >> gosh. >> i have a bunch of world cup stories. >> no. >> from the food served to just wait, kelly, you're going to love it. >> oh, boy >> the wonderful sue herera back at hq. have a great weekend >> you too, guys the stocks to watch today, a couple for you, beginning with twitter, a nice pop after being

officially added to the s&p 500 yesterday. it's had a good run this week, up 12.5%, and adding 4% today. looking for a catalyst the conclusion of the major average. >> this built, not just a one-day effect when it comes out. it's been 12% for the week another one up today and up sharply for the week, i think the best performer for the s&p 500 for the week, up 13.5%, 3% is under armour, and they will fatten up margins by slimming down inventory, and earlier this week, retailer roberted its dwayne the rock johnson special shoe sold out in 30 minutes, and more broadly, consumer stocks this week have been very strong performers as well >> they have >> underarmour underperformed. >> i like the celebrity shoe thing -- just save it for the athletes they are the one -- i know the rock is basically just -- he was -- he is an athlete, but certain that everyone has their

shoe >> by saying that, both of us, we proved we're not trend setters. they have done remarkably well >> no, i know. these are like tickets to concerts so many people are in the sneaker industry, snap them up, resales -- >> how badly do you think a closing bell sneaker would do? >> pretty terribly >> you design the left foot, i got the right foot - >> other way around -- >> well, either way -- i don't think switching sides improve the show still to watch, a top market strategist lays down the disruption companies and what the banks need to doto keep up >> dom chu is in tennessee to look at america's powerful, much needed super computer, dom >> reporter: absolutely, kelly right here behind me, a summit, joint venture between the energy department, ibm, and nvidia, why this computer is top of the heat beating out china, the biggest competitor more after the commercial break.

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with pg&e in the sierras. and i'm an arborist since the onset of the drought, more than 129 million trees have died in california.

pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. welcome back, china has been able to claim super computer supremacy, but that could change today. dom chu has more

dom? >> reporter: it's not official yet, wilfred because the latest tests have not been done, but the computer summit here at the o oakridge national laboratory in tennessee is expected to be a leapfrogging event in super computing, beating out the most powerful super computers, the one in china for an idea of how big a scale we're talking about, this computer right here can calculate 200,000 trillion computations in one second for perspective, that's as though every person on earth made a calculation every second for 305 straight days. that's what this computer can do in one second. it's massive it's also the size of two tennis courts takes 22,000 gallons of water to cool this thing. what's all this super computer power going to do? the possibilities are limitless, but ibm's ceo joined us earlier to talk about what she sees as the real world application for

what summit will do in the future take a listen. >> we'll have compounds, new cures for cancer, new med sips, research on alzheimer's, so this, to me, is our proudest moment, for this to be in the world, the fastest and the smartest ever in this period of time took four years to build. >> reporter: now, the crazy part about this is as we talk computing power, this product, it's unique, guys, because all the technology in the massive summit supercomputer is available to commercial customers right now, and ibm is already selling it in fact, four of the biggest banks in america run smaller version of summit for things like cyber security, fraud control, and there's a lot of applications, and she thinks it could be a growth strategic initialtive drivers for ibm going forward, guys.

>> a quick question. in the era of cloud computing, is this all in one particular site for security reasons or the added power that is by being physically on site >> reporter: no, much of this is a security concern right now. the fifth most powerful super computer in the world, titan, a great super computer, also using nvidia chips is also here at this laboratory. most of the super computing-type devices we have in the united states are all at department of energy laboratory facilities like here. there's also sequoia another ibm product in the bay area. much is because of the proximity the servers need to be close to each other, all the components and ppus, all of the nodes and semikpu semiconductors have to be close together and tied up that's why it's in one facility, but, again, the way technology

is evolving, this would be outdated in the next year, and the department of energy says they have contracts out to build the next super computer. they are already seeing the obsoleteness of this one here, guys >> fascinating g thank you very much. >> still to come, this tech giant climbed 40% the past year heading towards $1 trillion. the stock and what an analyst is saying could get it over the all-important milestone. > e umadniraon telling court it will not defend key provisions of obamacare, the affordable care act. those details when we come back. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient.

verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪

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welcome back to "closing bell," we're in quebec city where the g-7 leaders are meeting north of here, and reuters obtained what appears to be a draft commitment of a joint statement that the leaders are planning to put together the tenants of the statement that reuters is reporting deals mainly with election intrusion by foreign actors. it agrees to boost cooperation to prevent, thwart, and respond to foreign actors that are

maligning democratic processes they agreed to share information in a rapid response mechanism about this issue, and that they agree to engage with internet service providers like social media platforms about malicious misuse of the type of platforms for election tampering purposes. interesting ideas that could be put on paper by the seven leaders, although, we have heard earlier reports from today that french officials suggested, perhaps, tenants regarding free trade and potentially russia could also be included in this statement. we will see what coalesces after several additional meetings are set to take place. guys, back to you. >> okay, thank you very much a statement of sorts so far. >> at least it's something d >> yeah. trump administration said, meantime, they will not defend obamacare in the latest legal challenge to the constitutionality. here's the details how this impacts the health care

businesses >> they side with plaintiffs in texas that are suing to throw out the affordable care act. texas and gop states are arguing the repeal of the individual mandate penalty of obamacare is unconstitutional since the 2012 supreme court ruling hinged on that punishmena a tax. they believe that key provisions like the aca's insurance plan mandates and protections against pre-existing conditions are now unconstitutional, jeff sessions said, the department in the past has declined to defended statute and causes in which in cases in which the president concluded the statute is unconstitutional and should not be defended as in the case here. six democratic -- 16 democratic attorneys general are taking the other side, and they are fighting this, so whatever

ruling comes down here initially will be appeal and will wind up in the high court, but it's certainly not helping as insurers are starting to try to introduce their rates for 2019 and introduces more destabilization. already, we've seen some filings that are showing double digit increases, requests coming from 12% in oregon and washington to about 36% in maryland. all of them trying to price in the loss of that individual mandate penalty. centene and anthem well off of their lows, but the insurance lobby says they are going to weigh in on this case. they do not believe that stirring up the protections will help the market. they say it destabilizes the market this is going to be a long term argument that could, once again, wilf, kelly, bring obamacare, the aca back to the supreme court eventually >> and the democrats say they want to use the senate staying

in session in august to push the point on health care as it's front and center >> the preexisting conditions are the one thing that people really like about the apa so it's kind of touching the third rail here potentially. >> sure. we'll see what happens with that berthathk yo, anu. when we come back, david joins us with his market theme of the week. into a system built with ai. he uses watson to analyze his data with millions of weather forecasts from the cloud, and iot sensors down here, for precise monitoring of irrigation. it's a smart way to help increase yields, all before the rest of us get out of bed.

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welcome back to the reque"cg bell," we have the acronym of the week, what is it, dave give it to us. >> this week with the talk about trade, we got to have trade as this week's acronym. the t is the talks that are taking place in singapore and we want to basically wish them good four days to go until the 12th >> that moves markets? some say it's not, just geopolitical >> could be constructive because with all of this back and forth on korea, the back and forth on g-7 that's taking place now in quebec, the markets do not care. markets are driven now by

earnings, okay a, they are, record highs for nasdaq and russell 2,000 those are good indicators, domestically oriented, u.s. oriented, a, is all cylinders firing, keeping it fight today, so eight cylinders, not 12 atlanta fed is 4.6%. you got the average hourly earnings 2.7%. 165 million people working 6.6 million people are looking for work you got 100 trillion net worth you just saw this for households personal income, personal consumption, you have consumer confidence, consumer sentiment, and the eighth one is the fed, the chicago purchasing managers index, okay? the d is dollar, the dollar. >> yeah. >> the dollar is basically even with the brazilian currency, the

argentina currency, and the t h turkish currency the dollar is steady against the major currenciecurrencies down 4% in the last year, up 1% this year only, leaving e, which is earnings. supposed to be up 20% this year, what's not to like about this market good things. >> all cylinders, but perhaps that's only applicable in the u.s., not the rest of the world. >> china's -- i was heartened by china's import and export numbers. maybe you saw those this morning, wilfred the import numbers up 24%. that's a big jump, so that means that their economy hopefully is doing okay even as they try to slow it down next week, retail sales. next week, fed meeting >> next week >> the price index and consumer price index. >> a lot of news next we, l ekal about trade as you saw david, as ever, thank you very much >> thank you for having me up next, closing count down.

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his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself. he has stocks and bonds your dad wants to go fishing with him. your dad doesn't even like fishing. you like your brother-in-law. but you'd like him better if you made more money than he does. don't get mad at your brother-in-law. get e*trade zblmplgs welco zblmpl welcome back, we have two minutes left of trade. s&p, first off, a negative open. what's been a fairly solid week, encouraging trade throughout the day, midday getting into the green, and it's steadily improved through the close, up

about a third of 1% at the moment looking at the individual indexes, a little bit diverse. nasdaq lagging a little bit, dow leading the charge sectors today, not a too strong a story. we got energy towards the bottom staples at the top, a strong week for consumers, whether discretionary or staples, which is encouraging for many market commentators, that it's that very important consumer sector, the economy is doing well. now, s&p 500 week to date gains really came on wednesday kind of flattened out in the week, kind of flat end of the week, but as we shape out the week, we are up a percent and a half, s&p up 2.5%, and best part of 3%, nasdaq up 1%, and the utilities only ones in the red steady for the week. joining me now is bob pisani showing you the agenda items on the docket for next week bob, what's up >> the market is somewhat unstoppable right now. we got terrific economic growth.

we have earnings that are going up through the second and third quarter and may hit another record in the third quarter. we have the fed that is somewhat accommodative to the markets overall. takes a lot to pull the market down now >> bob, thank you very much. there's the bell up 74 on the dow ringing the big board is conduent, and at tkelly has the second hour of the closing bell. >> thank you, wilf, welcome, i'm kelly evans, this is the day and the week on wall street, dow gained 71 points, close to the highs of the session on the bell just turned positive after european markets closed halfway through the day. the nasdaq composite lagging,

but adding points at 7645. the small cap up a quarter personality to 1672, and nasdaq and russell notch a good all-time highs this week the dow having the best week in several here, and, of course, we're going into the weekend ahead of so many market moving events next week that we'll talk about. apple the worst performer in the dow today as the shares fell on concerns of the new iphone, what the concerns are, and what it means to the tech giant's bottom line coming down apple down 1%. also, the big banks may want to look out for the little guys which startups are poised to disrupt the financials we'll talk about that coming up a little bit later on. joining me now is michael santoli, and evan newmark, welcome back, and sandy vilari topping the week is mcdonalds, intel the decliner s&p 500, underarmour led the

way. mike, we put a pretty nice session together here at the end. nice for the dow in general, and underperformance of technology and nasdaq >> yes, so a percent and a half gain for the broad market, s&p 500 for the week, upward drift feel today it was dead flat at noon, and just because we've been in kind of mildly bull mode, the market drifted higher going into the weekend. you know, i think we're at the stage in the rally, though, you talk about the tech underperformance where stocks are 15% from the lows. they are up 7.5% in nine weeks that's exactly when you start to see the spread between the winners and losers get a little bit of life. that's why we have a rotation. it's not a big economic signal that says there's trade wars we have to get out of something and into another thing or something's wrong with tech. i think it's really just a function of inaggregate portfolio rebalancing by investo investors. >> energy had a runup and a

pullback now it's kind of getting its footing? >> treading water at these levels i think it's okay. >> yeah. >> i wouldn't be piling in you know, i mean, oil's been hanging around between 60 and 70 a barrel, which is fine. i'm talking about wti and so that's fine. i actually want to go big picture, can i >> macro >> big picture >> philosophical >> a a little blittle bit, but big. you got -- so next week we have a few big things going on with the ecb, boj, the summit, and you have the trade tensions. today, the g-7 meeting it's not -- it's not a particularly novel insight, but increasingly, we are in a bipolar world and through the '80s - >> like the disorder >> no. meaning the united states and china. everything now is about u.s. and china. what we see in the stock market

and everything in the last couple weeks is basically signs that japan really doesn't matter the way it used to europe really do you want matter the way it used to bank of japan ran out of ammunition ecb is in a vice with italy on the one side and germans and northern europeans on the other. those stories really have not changed. >> opposite picture of what they said about the g-7 now, look, it's the g-6 plus one, european and japan together, and america is isolationist and aalone >> i'm not a huge trump fan, but he recognizes the u.s. relationship with china is the one that counts. >> do we need europe and japan on our side of this? >> you need them, but i think what we saw, you know, this past week, i was looking at a lot of the thicks that were going on with deutsche bank and rumors they are merging, and those things are tells that europe is not of the future.

japan is not of the future they can't get any economic growth >> the problems can be of the present. >> yeah, no, i'm not trying -- i'm not trying to dispute there's not good companies in europe or japan, but if you look forward, the reason why the nasdaq east been doing well, the reason why the russell is doing well, the 2,000 index is doing well because the world is reck -- the reason why we talk about alibaba is that we're moving to the bipolar world where the reality is what the ecb and bojs do does not matter as much as it once did >> again, against the grain of buildup how important meetings are. sandy, i don't know if that was part of the conventional wisdom you embrace or if there's a point here >> fundamentally, you look at deregulation you look at lower corporate tax rates. this is why small caps are doing well and our firms play offense in 2018. now you got the russell 2,000

probably 500 points over the s&p 500 year to date, and it's just as simple as, you know, small caps pay an average of 31%, and that's going to 21 large caps at 24% rates which is going to 21. i think small caps have a big tail wind behind them which has got them moving to the upside. >> a point on this before we move on is this the historians calling it, one of the trap, which you get the u.s. and china, and china in particular merging like it is, we see the military confrontations softly happening in the south china sea, that leads to conflicts do you think the president keeps it friendly while pursuing interests? >> i think the relationship between the u.s. and china is super important for the economy. trade war is much worse than italy falling out of bed again or something else happening, and

in a weird way, i think trump understands it they are the -- they are the player now, and as much as justin trudeau likes to think, and i'm not trying to dispute their role the u.s. does more business with canada than any other partner in the world. in terms of geopolitics, china is what matters. >> only counterpoint there is robe reports that china worked with the european allies because this position by the white house united them against the united states in terms of the trade aggression >> i'm not trying to justify the u.s. foreign policy and alienating the allies -- >> europe can look to china or other countries. they can look to china as an alternative to the u.s. for investment or trade. >> yeah. actually, in a weird way, they don't want to do that. >> well, you know, let's hope for right now. anyway, tech under performing the broader s&p this week. why, mike, is fang weak the last

couple days? >> because it's been so strong really it's hard to really come up with any grand theory why it's backed off other than a little bit of the version, and i put this out on fang, we keep talking fang, the sg has not done anything, facebook, alphabet, google underperformed year to date. look at the nine largest nasdaq stocks in performance, netflix up 88% this year >> 88% this year >> go down the list. it's alphabet and facebook that lagged it's been megacap, kind of platform tech that's up so much, and i do just think you're seeing a little bit of a turn to the downside what's interesting is the market is now in a better spot to absorb that just because you have kind of cleared hurdles, back in the full mode and people can focus. >> sandy, where are you in the tech space right now >> well, actually, you know, you

look at what apple did to the supply chain and saw companies like skywork solutions down today. i like cypress semiconductor that is a play on the internet of things as well as electric vehicles so you play the amazon ec echo as well as tesla. we like cypress, undervalued at 13 times earnings versus peers at 19 times earnings >> avoid having to pick the winners beyond that. shares of ge popped after a board issued a dividend of 12 cents a share. investors are concerned that recently installed ceo would cut the dividend again as the turn-around plan not the fact that, hey, we paid the dividend, but that's what happened >> well, i mean, that's great. a little bit of grasping for straws grasping for straws. i mean, the answer nobody knows what's going to happen with the dividend it may be just a little relief pop. i don't think long term investors who are looking at ge are buying it right now so that

they -- i think maybe mom and pop retail are excited to keep the dividend - >> scrap it? >> well, backdrop is there has been commentary by analysts saying ultimately how it gets back on its feet is cut the yield, conserve cash, and make the decisions now. probably the fact they did not do that now, although in theory it's in play, that question, says they did not discover, you know, any new adverse trends in terms of the cash flow or anything else that made them get to that point. d >> fair enough 1% gain, showing caution there ge trading under $14 on the close today. president trump meets with leaders of the world's largest economies as many criticize tariffs. we are in quebec city with kayla who has the latest >> reporter: there's a working session ongoing right now with the heads of states from the g-7 countries. the session is titled "economic growth and the future of work. so, perhaps, whatever results

from that session may convince evan newmark to the contrary there's not growth happening across the world there will then be bilateral between president trump and prime minister trudeau, awaiting word from the white house when the bilateral between trump and france's president macron lands, and there's going to be a dinner later this evening called "a more peaceful and secure world," large umbrella topics, covering a host of issues that falls under them for the u.s., at least, economic security would seem to include those tariffs which the president rolled out on the national security basis weeks ago that wrangling allies sitting across the table from president trump. one of the leading proponents of the tariffs, navarro, not here in quebec, but a vocal voice on the issue goes country by country talking about why

tariffs are needed and what tariff barriers in the countries should be left out it's time for our major trading partners from competitive partners like china to realize the era of american comply sen si and the international market place is over. despite divisions, the national security officials tell nbc news there's hope from the white house there will be a joint communique at the end of the session, perhaps including issues pertaining to trade, to women's empowerment, with a hoss reuters reported a draft statement has some tenants agreed upon by all seven countries focusing on foreign actors maliciously interfering in democratic election processes, but that's a draft statement. we'll see where that final draft ends up. kelly? >> yeah, kayla, thank you. you know, again, maybe -- this also stood out to me, guys, just

according to the draft statement, had agreed to engage with internet service priders and social media platforms the one thing they agree on now is facebook's a problem. >> facebook and the people who use facebook >> yeah. >> yeah. >> yeah. >> fair enough >> their purview is how it's used for political - >> and the president this morning talked about russia joining. what do you think? >> well, it was a little bizarre, but it's weird. trump thrives on chaos i don't know if there's actually an end game here i mean, i hope there's an end game i don't know that there is, but to throw out the thing about the russians in the same breath with the other issues floating around, it's bizarre >> well, i think he was saying, look, this is actually had relations in a low, and said, i think the quote was, i know it's

not politically correct, which is, i don't think being politically correct is the issue here, but why they were thrown out and whether to be let back in the statement was about women's empowerment, looking for something more substantive to come out of that than this, aren't we? >> often they are bland, a lot of times, they are these sort of vague committee statements, but in this instance when you seem to have, you know, jgenuine disagreements, it's hashed out >> they usually make a commitment to liberalization of markets and usually agree. >> an economist said several heads of government take off for a mini break, never accomplish anything after the first boost of enthusiasm. this will be no different. this is not somebody with a row to hoe >> that's a good summary it's, again, i think, you know,

you went from a position where with the crisis from ten years ago, everything moved to the central banks. and now it's unclear where it goes from here >> sandy, you have the last word here into the weekend, where do you think the best way is to be positioned in this >> i want to say long smaller cap companies with good earnings profiles and look forward to higher interest rates, which should put pressure on the dollar higher, which is good for domestic companies rather than larger cap multinationals. i say stay small >> we'll see if the smaller e emerging markets deal with it too. thank you very much for joining us >> thanks for having me. apple is the worst down performers today because of iphone worries again what's behind the new concerns and what it means for apple and shares of the suppliers. morgan stanley plots a path to the $1 trillion market cap, building out the netflix of gaming we want to hear from y, ou reach us on twitter, facebook,

or e-mail. like your thoughts like your thoughts we're back after this.at's amaz. 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. chie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

apple is taking a dip today, one of the worst performers in the dow, in fact, nikkei

reported they are cutting orders for the new iphone for parts bit 20%, joining us is ed lee. congratulations. >> thank you very much >> maxim group downgraded apple from buy to hold last week piling on, ed, now supplies -- >> yet another supply note, right. i wouldn't put too much stock in the one note there's, you never know, they tend to go either way. apple diverse fied the supply chain enough so you are not entirely sure what this one indication might mean. it could mean the stock sales or no, nothing, what you might expect, and we've seen that in the past >> what do you think it means, neil >> well, i agree with you can't put too much stock in any one particular report. it is notable that this report said they thought it was respect to an aggregate iphone leading edge iphone of the there's a little bit more -- >> meaning what?

>> all leading edge iphones considering all suppliers is down 20% year over year. >> the x or referring to 8 >> the report led to the phones for the upcoming year versus past year to the x so, you know, again, you could say, hey, includes the iphone8 we don't know for sure so, yeah, you can't put a whole lot of stock into it that being said, reason why -- two reasons to downgrade we don't think the services offering profits and revenue is going to be where a lot of bulls think it is. >> okay. >> more importantly on fiscal year '19 basis, there's a down tick for year over year units, because it's off a big upgrade, and where typically there's declining market share trumped with or add that with that smart phone market in decline. >> ed, talking about expectations for what they are

going to introduce in the fall >> right >> okay. >> and it's the three leading edged ones referenced earlier, taken to 10 taken into more product lines, not just the one version, slightly bigger, smaller, cheaper versions of it with the face id and bells and whistles that the other version had. they are trying to expand that for the bigger marketplace d >> didn't we just go through this >> we don't want -- you want the new one every year >> no. no we went through this before the earnings >> yes, yes. >> right before the earnings >> what happened, right? you didn't see, you know, it's more or less met kmpexpectations the services bid is interesting, lower margin business. it is the more predictable source of revenue, however, and it's the thing that conceivably differentiates it from other things youch things you don't see that yet same with spotify. apple has yet to offer something you can only get through their

supply chain and specific services, and apple -- the tv originals they appear to be working on, that seems to be interesting, but, again, not a lot of data or information what it looks like. >> you know, history of the huge tech companies where the story becomes, well, if you look at the new, more predictable prescription business, that's really the future, and that's really the story, whether, you know, oracle, ibm, adobe the market -- the street did not give credit, really, when that piece was 15% of revenue, right? >> no. >> it's not yet at a point where that's all you need to know about apple's numbers. >> also, keep in mind, the services revenue, most of that is not subscription based, right? most of that is apple store, apple care, one-off transactions, tied to growth, by the way, which is slowing, you know, at a pace as well, and it does not reflect netflix and spotify 50% year over year growth because of their open

ecosystem. subscriptions open to any device what happens when your subscription is available only on your device and start off with an immediate market ham of iphones that's not going to expand that much you don't get word of mouth, you know - >> all of this makes sense, but the companies a trillion-dollar market cap almost now. we're very, very close >> bringing catch home on the repatriation too >> never had that before is all of it that pricing in hay day or the fact it talking to the economics? >> it's an interesting thing they are in a weird spot now where they are so powerful, but hemmed in on strategies a little bit. they want to maintain growth on the iphone i think they are still figuring it out, and services is stima component of that strategy it's not articulated, but it could be one way to go in. >> love it

>> growing 50 billion a year, like where they are at >> explains -- >> get to the trillion - >> true, amazing, up 600% on that chart thank you, ed lee talking apple. microsoft with a huge year next guest says the stock rally 30% over the next year thanks to the path of becoming the netflix of gaming. tech and consumer discretionaries have been the best sectors this arntyeme coming up. fast money" says which one they think is the biggest winner for the rest of 20187.

a note highlighting microsoft's plot, the company could build a netflix of gaming to get there joining us now is the analyst behind the note, keith white, keith, thank you for joining us, from morgan stanley. >> thank you for having me >> how big do you think the gaming thing could be for micr microsoft? >> gaming is already a big business for microsoft, crossing $10 billion, but what we think tran transpires in three to five years, it's their ability to take cloud asset, create a streaming vehicle to take that gaming business and move it from just selling into their consul base to a broader base, to pcs, mobile phones, and take the content that they have and just distribute it over a much broader base that's what really builds up the netflix of gaming. >> so, basically, xbox game pass

is what you refer to >> yes >> this is not just trapped in mic microsoft ecosystem, but anyone can subscribe to it? what's the pricing and in terms of yausers, how many do they ge? >> the pricing now is $9.99 per month, and you get access to 160 games. right now, you can only do it on xbox consuls, a relatively small base we calculate 37 million, or you can do it on windows 10 pcs. when they add streams, you can expand that to any pc and mobile device, and you're really opening up your potential user base there >> so do you think, are you talking netflix numbers like over 100 million >> it's very early days so this is explore tear. it's not what we have in the forecast to get to quite that big in the next three to four years, but when you talk a

billion smart phones to sell into the entire base of pcs, that's a large scale to sell into >> total market. what do you think about it >> well, first of all, keith, are we talking about ultimately as they get on the streaming model, it's just microsoft-produced games or third party as well? really be a portal for all streaming games like that? >> majority of what they do today, all of what they do today is first party games that's content they already own, and we expect them to really expand out that content. they have not gotten through licensing agreements yet, but that's a tbd one of the differences between kind of this model and, perhaps, like a netflix model in the content is games tend to be longer shelf life. you play a game multiple times, you play it over time, whereas a movie you watch one at a time, so you could have a thicker long tail, if you will, with a smaller amount of games. we don't know it's necessary they get into that third party if they get into licensing, a

much broader set of content. >> it's been fascinating watching how big games has become and how well platforms are doing, part of amazon, of course, and maybe for microsoft, they need to take their foot hold and really, you know, if they don't do it, someone else could. >> yeah. i'm curious. you know, microsoft and apple, issue of is the platform agnostic or closed >> true. >> and the closed models have to defectively be much more profitab profitable >> why closed models >> why because then if you have an open platform like netflix, netflix does not make the money, right they are going to be able to monetize subscriptions in the future, and that is the mind set behind it. the reason why microsoft does so well is because they own the content right now, and point in which the future you open things up, it's why apple has been reluctant to open up their platform, profitability goes

down of the it's not bothering netflix investors now who do not care about the profit. >> keith, would you like to see microsoft move to a model they say, you know, we don't care if it's our hardware. we want our software and streaming you are using. >> yeah. we've seen that across the board for microsoft. you are getting much more agnostic in everything they do it doesn't have to be a pure microsoft environment. there's a whole idea around streaming to move off of just the consul and they are doing it within gaming you're seeing the analogs. they are doing it already in the commercial businesses as well. the most recent announced acquisition of gethub, that's about getting a broader set of developers outside just developers going after open sourced developers microsoft is opening up, being agnostic, expanding out the user base >> keith, thank you for joining us, good stuff >> excellent, thank you for having me. >> keith white of morgan stanley. >> every story we'll do over the

next few months is the netflix of this, you know, chipolte, netflix of burritos. >> i want to tool that sees all my subscription, and this is what you spend on everything you're not aware >> yeah. dow is up 76 points, 75 points on the bell there s&p up 8 nasdaq up 10 russell up 4 again, strong weeks for the dow and s&p and highest close in three months here's our rapid recap now president trump lashing out at closest allies, all ahead of today's and this weekend's g-7 summit >> president tweeted he's looking forward to straightening out unfair trade deals with the g-7 saying if it does not happen, the u.s. comes out even better >> european union treats us very unfairly, canada, very unfairly, mexico, very unfairly.

with that being said, i think we'll easily make a deal verizon got a new ceo taking over from lowell mcadams >> we spend a lot of time with lowell building out the vision put in place which is 5g takes broadband given to every consumer >> nikkei says apple orders through iphone parts could fall 20% for the first half of 2018 >> i speak to apple, they say the same thing, how is it possible given how much they do with different suppliers how is it even possible for analysts to believe this stuff >> dow gaining 71 points that's close to the highs of the session on the bell, dow with the best week in several here. and on that verizon news, what do you think of the ceo's change, mike >> interesting in that, obviously, moved the company a year, and it's clearly showing that verizon sees itself as a net worth business, right?

net worth infrastructure, where it came from >> all about 5g. >> right they are not just the pipe, but they think the pipes are so good, that's where you want to be opposed to in contrast with a at at&t, of course, making a big splash with the media acquisition with time warner >> true. let's get over to sue now. >> hello, kelly, this is what's happening at this time, everyone virginia grand jury alleges that a trash truck driver was under the influence colliding with an amtrak train carrying gop congressmen in january the accident left one dead 31-year-old nailer was indicted on one count of involuntary manslaughter and one count of maiming another while driving under the influence. two workers in cuba are undergoing medical evaluation amid concerns they were affected by health problems harming u.s. dip mats in cuba and now in

china. the syria opposition several defense group called the white helmet says government war planes attacked a village killing 35 people and injuring dozens more. it's one of the deadliest incidents in the region this year and emirates is determined to make windowless planes the future passengers would see outside through projections from fiberoptic cameras the advantage? the plane would have no structural weaknesses because of windows, making it lighter and faster you are up to date that's the news update >> you too all right, sue, thank you very much i want to keep the plane windows. up next, the "stfa money" traders say whether consumer stocks are where the real growth opportunities are.

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welcome back, consumer discretionary is up there with a better than 11% gain after all, it has netflix and amazon "fast money" traders are here. i should call you pete, guy.

>> you confuse them. how? >> i don't know. i said maybe i want you to grow a pony, but what do you think about, you know, if you had to pick a sector, guy - >> consumer discretionary. brad, throw this see this these are twin snakes, that's an impulse buy. what's my point? when i go to home depot, my impulse buy is not $1.50 bag of candy, but $30 ratchet set think about that that's why mike sitting next to you is nodding his head and why home depot crushes people go in for a hose and come out with $150 worth of other junk >> not just for you, amsazon netflix -- >> 30 bucks is not enough for a wrat ratchet set, first of all. but, looking at the sector, amazon, netflix, and booking, the old priceline, are a third of the sector right now.

>> right >> the sector up 11% this year, and equal weighted version is up 5.5. >> wow >> i wonder how that shakes out from here? >> yeah, i mean, look, i agree with guy home depot can catch up. i think the stock continues to work look at tech, though, and tech may be pulled back from here, but looking to buy weakness in tech rather own technology especially amds, doing an amazing job taking market share from the likes of intel there's other names in the space, you can step in and buy look, i prefer to own technology in this market right now, and until it tells me not to, and there's run in the - >> i've seen gummy bears, but -- >> there's a number of shows, not least of which is "fast money", and "options action" at 5:30, she's a huge fan of twin

snakes hairbo crushes by the way, it's - >> this is an advertisement, i love it. >> everything is discretionary all i need is a tasty weight that's all you need in life, a a tasty weight, everything else is a choice forget discretionary everything is discretionary. >> i thought evan was getting philosophical, but now my mind is blown thank you, guy, david, always a pleasure catch the action with the talented melissa lee at 5:00 p.m. easternim te. the gig economy was going to transform how we work, but data reveals it's not at all the case those details next in today's take away.

welcome back, it is time for the take away. we begin today with surprising news on the gig economy. it's not that big. in the first major tally in 12 years, the labor department says the share of workers has fallen to 10% from 11% in 2005. do they define this too narrowly do you believe this is true? >> i mean, i don't know if they defined it too narrowly. it's not capping everything. right? if you have a regular job and do gig stuff on the side -- >> only asking if your main job a gig job or regular job >> i think it's been people who are day laborers or freelancers, and so maybe you just had those people convert over more into what we now call "gig. >> what do you think >> i'm not a fan of the

statistical surveys. they miss a lot of stuff >> this is not random. >> no, no, no, i know, but if you just live in a place like new york and you're meeting all these uber drivers, people evading taxes all the time >> right >> there's no inacceptabilicento report honestly. >> yeah. right. >> if somebody says, well, do you have air b and b ren dtalre you say yes? >> what do you say >> it's funny you ask because i went through customs on the way to the u.k., and they asked me i'm not going to give the answer i gave >> this is your gig. next, here's another gauge of the economy you don't hear too much about the total household wealth of americans surpassed $100 trillion there are no major signs of thaw the stock market is steady, and house prices are really just starting to pick up again, and how much more will it grow

>> it's a bylinie i blinding nur okay, it's five, six times the size of the annual production of the economy gdp. to me, the issue is not that household wealth goes up too fast or is too low, but it's what the composition of that is. you have relatively high levels of debt, but not in the same place as the wealth. >> right this all goes back to the 2006 era when the measure shot up and it was housing and wealth and collapsed, and you hope it's sustainable. >> underlying this, when they do the statistic analysis dun the road, there's huge disperties. it is going to shock people who think the wealth disper ty - >> already worse than what's reported >> yes, i do i think it's -- i think we really -- down the road -- >> equities are the things the fastest, and narrow group. >> equities are not -- >> it happens. >> should held flip side of the strong

economy is growing shortage of workers, shortage of workers is threatening, and the permian produces as much oil as iran or iraq you do you resolve this? >> we hear the number, 50,000 openings for truckers. >> raise the wages that's the way to fill it. >> yeah. >> let people moving regions, specific spots >> fix the opioid issue. >> pay them, they'll drive a truck. >> three businesses you never heard of could spell trouble for the big banks next after this.

welcome back, three small

companies you probably never heard of could give the banking industry a run for its money joining us for more is david, thank you for joining us on friday afternoon it's important it's a disruption. payments is so boring, yet all the new the entire existence of big banks. >> no, it is the simple sound bite is pay pal is worth more than american express. like 16%, 17% more visa and mastercard are worth more than jpmorgan and citi combined >> we've heard of those companies but there's newer ones too that are doing what exactly? >> acorns. takes a little bit of everything you spend, shoves it into a savings account. they just started offering a debit card they'll team up with a bank and allow you to touch that money through a debit card system. very grimy, very complex payment system module for all kinds of large tech companies that look for payments they're worth half a billion dollars now. >> tech companies we talk about every day? >> exactly they're the ones who process the

payment. if you look at europe, there's something called this which is going public in holland. basically a $10 billion valuation. they're nothing more than a pay pal of europe. it's not like they're doing anything differently they've hooked up with companies like uber to offer payment for uber in europe there's different ways to make a profit, make money, make value in this market. >> talk about how you make profits in a business that to a layman would seem heavily commoditized, transition costs are infin tis mall, right, infintisimal margins what is the better mouse trap? >> the real issue is capital, not margin the issue with banking is you have to hold a lot of statutory capital to run your business none of the companies have any capital requirements they just process back and forth. pay pal is not a bank. starbucks which has a huge amount sitting into deposits just stores that in a bank.

>> or if they then have -- if they're going to start offering debit cards and partner with a bank, that makes the bank the back end -- that makes the bank the commodity. >> a bank has to exist it just doesn't necessarily get the piece of the transaction with acorns, several years ago, bank of america for its customers create add pd a progr called "keep the change. they just put it into a savings account. it was just like, today, customers, they trust an app more than a bank that's changed for this generation, if that's going to last. >> it moved the needle for bank of america and didn't stop the growth of this app so what should banks do? >> it is tough because at this point the banks have almost ceded a lot of this ground these are all examples of where a bank can make a difference they all suffer from this inventory dilemma. >> venmo, in the past week, i've kind of crystalized this came on the scene, huge hit, part of pay pal now. then the banks got together and said we can do this too with

zel, we can hook our back ends all together and now the most very hard to use, the technology has bug, it has issues and it's much easier to send payments person to person kind of like dvr became tivo >> it would be nice if you saw some big companies do these innovative things to start we praise them when they're fast followers. how about being a leader >> it's funny, the people who are big fans of vemmo will say no, it's social. it's the social piece of it. >> it is, yes. >> i think there's a huge generational divide. i don't get that i don't know why you get that to be social. >> i don't care if he paid you money. >> a cool emoji. >> your avatar >> the avatar just pops up $6.75 for the hero. >> i'm like, i don't need anything to see anywhere anyway thank you. nick colas the world pork expo under way out in des moines and jane

wells is there, jane >> kelly, this is where bacon comes from, right there. any how, it's starting to get a little warm here in the swine barn and some people think our trade policies stink what do rkpo producers think we'll have news out of mexico after the break.

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retaliatory tariffs on u.s. pork in an ongoing trade fight what does it mean for the price of bacon jane wells is going to tell us >> lower bacon prices here at home but one pork producer said, you know what, we feed the world. if other countries don't want to play by our rules, they can starve with these tariffs for china and now mexico, long term it could mean bringing home less bacon for them america's hog producers have a beef with the trade war. >> every time we get a free trade agreement, our exports are grown. so exports are a very important part of my business. >> this is one industry that has a trade surplus. last year's exports reached record volumes which may be one reason why it's now being targeted with retaliatory tariffs by some of its biggest international customers. if you think of the american pork industry as a pig, over 25% of it is exports and 40% of that

is mexico and china. this is what we're talking about. mexico is america's largest international buyer by volume of american pork. second largest by the amount of money it spends. $1.5 billion last year >> our producers depend on global markets and we need those global markets to be successful as an industry >> on the other hand, we need fair play in this deal straight across the board i support our president. >> some interesting news out of mexico, rueters is reporting that mexican authorities will allow american pork farmers to compete under new quotas that are tariff free. those quotas won't make up for everything but they will help. even with tariffs, pork may still sell in mexico because they just eat so much. back to you. >> these pigs, we're all cracking up, i have to say, they're pretty cute. you said this is going to make

bacon prices go lower? >> here at home. because if your international markets are drying up a little bit, because it's less competitive, there are already big supplies here at home. pork is competing with chief beef and poultry here in the u.s. all of that means cheaper bacon for you and cheaper barbecue prices for you >> that is a midterm election platform right there i lowered bacon prices, you know, like your barbecue is -- >> genius. >> yes thank you very much. >> they don't like that. >> yes they don't like that, no, they don't at all what do you think of it? >> i told you about the phenomenon called the blt season when tomatoes ripen, every diner runs a blt special the old days therefore bacon prices go up >> absorbs the surplus >> surplus of tomatoes >> now if it's cheaper it's more encli incentive.

>> if they have a blt special next week. >> i don't know anything about bacon prices but i really love bacon, i know that >> it's a pleasure, guys, as always have a great weekend thank you for joining us huge week coming up. so everybody get your rest that does it for "the closing bell." thanks for tuning in "ma fast money starts now. >> live from the nascar market site, i'm melissa lee. our traders on the desk. tonight on "fast," home builders suddenly hot again, up 7% from the lows last month and it could lead to a major breakout for one dow stock. we've got the details. speaking of breakouts, check out twitter, soaring to its highest level in more than three years traders say there's a different social stock you should be buying now plus, just moments away from president trump's meeting with c canadian prime minister justin trudeau. that's a live shot right there of the beautiful scenery we'll bring you the very latest. first,