and lows >> roku is on a tear here. i like it. >> it is up 6% >> twilio which is my rocket fuel they continue to stay long keep on getting short. >> thanks guys >> you are my rocket fuel, scott. >> this is my rocket fuel. >> we are bringing the rocket fuel welcome everybody, i am tyler mathisen, here is what's on the menu today mystery in t history is in the making as the president is getting ready to meet with the leader at north korea. what is at stakes? the stakes are truly high. we'll comb through the trade numbers between u.s. and canada and china to see which country is really paying what to whom? and flips and flops. our real estate mogul, how he's

helping rescue flippers are on the verge of losing everything what you can learn from their mistakes "power lunch" starts right now ♪ >> welcome back to "wer lunch. i am melissa lee stocks are in the green right now. the dow is up by 74 points, s&p is higher by 10 and nasdaq is up about 26 telecom consumers and staples are leading right now. utilities are the only sector in the red. united health and home depot is your topper and american airlines are lagging some retail names are at all time highs today costco and tjx >> thank you, i am sara eisen, here is what's happening at this hour boston scientific, the company

receives a buy approach from stryker. fitbit announces wearables for kids the ace is available at retailers worldwide for $99.95 walmart is launching its own brand of wine. it will be available in 1,100 stores the wine varieties includ let's head to michelle live in singapore, michelle caruso-cabrera >> hi sara we are live right now in singapore. dennis rodman has arrived at singapore, he landed about an hour ago you can see the media surrounding him as he got to the airport. you can't see the t-shirt right

on the front it says potcoin.com. digital currency was sponsoring him. he was asked if he was apart o the summit he said i am happy to be apart of it. i feel like i have brought awareness to a lot of things around the world and i feel about north korea. we can't hear the rest of what he said. this was not unexpected. president trump was asked, and president trump knows dennis rodman when he was on "the apprentice" with the president he was asked whether or not dennis rodman would come >> no, he is not he's a great rebounder and he was relatively speaking at all so that tells you there is a rebounding and there is a genius for that dennis rodman was a great rebounding >> another key moment that has happened here.

another media skrum, kim jong-un, the leader of north korea did some sightseeing just because you are the dictatoor o one of the regime, he went out to visit garden by the bay of the largest glass greenhouse and tallest in-door water falls. he thought this is a good p.r. move on the part of kim jong-un. this is to help him and try to get people to forget that the u.n. says he presides over labor camp still to this day that have more than 100,000 people in them at this point. that he has as everybody may remember had his brother assassinated with chemical weapons and his uncle executed all in an effort to consolidate his power with the military and his family and country many around the world are skeptical of the man you see

there kim jong-un and whether he wants to denuclearize, that's the mission that president trump has set out to convince him to get rid of h is nuclear weapons. there are great concerns that the united states may make the same mistakes that's done in the past to give up too soon, too much to kim jong-un or to however the leader in north korea, mike pompeo, said today that's not going to happen when he briefed reporters >> the context for these discussions is radically different than ever before the backdrop of these negotiations have taken, president trump have said in a way that's fundamentally different than before. the tpresident made it clear. until we get the outcome that we with demanding economic relief is not provided. >> here is the schedule for tomorrow they meet at 9:00 a.m. for a couple of hours, there is going to be a lunch, reports coming out of singapore saying that kim jong-un is going to leave at

2:00 p.m the president is going to speak with the press at 4:00 p.m he's supposed to depart singapore at 6:30 p.m. that's earlier than expected he was ready to commit two or three days but the white house says things are going along more smoothly than expected >> melissa, back to you. sthoo th sth >> that sounds interesting the p.r. campaign, it may be a good thing for kim there is been reports apart of delegations we are seeing oen dining on $100 dinners and hotels and some were going to mcdonald's to experience western food will the north koreans see any of these >> doubtful. and what you imply within your question, melissa is to what degree is there any freedom of expression and of the press in north korea and the answer is zero all of the media is controlled by the regime. they waited a full day before they inform the people that kim jong-un had left the country

so whether or not, they're certainly not going to talk to people dining on expensive food or going to, you know, western imperialism. >> michelle caruso-cabrera in singapore. thank you. joining us is song-yuen lee. professor lee, i will start it off with you you said in the past that you thought all of this is apart o a game that kim is playing we are at this point in time, do you believe this is all apart of a game >> yes, i think everything is going well according to plans, cynical is historyis rather in 2000, kim jong-un and his father, he did exactly the same thing. he came out of his antisocial

character, his shell dramatically and called for an interkorean summit in june and his meeting with the south korean president he made his first trip to china as the national leader six year after inheriting the power and then kim jong-un received vladimir putin in july, 2000, and sent a special envoy to president bill clinton and next january, he visited china and many people hailed this as coming to the career so, kim jong-un by doing this by putting on this elaborate show after a period of provocations that he's a new man that he's a legit global state man that the

u.s. can engage. not only it affects a dramatic make over, hmore importantly, kim, is able to buy time and money to do what he really wants to do is further advance his nuclear and missile and his menacing capabilities. >> alexandria, can you art tate the u.s. goals going into the summit and where is there any overlap that we can see any progress >> absolutely, for the united states, we want to see complete -- the north koreans, wh they want is regime security and more access to the international markets. finding the middle ground means technical discussions and both sides having to give >> so professor lee, how much free reign does the american president have to negotiate a

deal with the north koreans specifically with respect to the easing of economic sanctions or are his hands tied by congress >> secretary pompeo said today now that we have the two men kim jong-un and president trump who can make the final decision meeting face-to-face the statutory condition for determination or suspension of sanctions for one year are clearly stipulated in section 401 or 402 of 2016 north korea's sanctions on policy enhancement act. the u.s. president are proned to relaxing sanctions making concessions very prematurely in the wake of north korea's series provocation or trauma offenses we may see a legal battle between congress and the executive branch in the coming

months i think president trump probably assumes that for the sake of peace and all these good things like denuclearization that he's able to do this and able to stop enforcing sanctions and even perhaps to suspend sanctions against north korea. sanction in forcemeenforcement s peaceful means of putting pressure oconee yn north korea. >> alex, the u.s. risked appear to backing away from its commitment and putting japan in jeopardy down the line how close can we get saying the u.s. will pull back as well without breaking that commitment or do we have to >> there are a lot of things that we can do to put security guarantees on the table for north korea. short of changing our current posture in south korea or

extended deterrence guarantees to south korea in japan. none of this will work without the support of our allies. we need to make sure they are comfortable and looped into the process and hopefully we have people who are reeling the possible details of what the president is willing to discuss. none of this is going to work without their support. >> that's where i wanted to go with the ally support. professor lee, the g-7 backdrop, does that make president trump look tougher heading into these talks with north korea, does it weaken him or not to have the full support of auour allies or does it not matter >> i don't think kimg-un will be affected either way. i think this moment in singapore may be reported as a comical but

tragic comment moment when it comes apparent that president trump is being played moved by other things and presume thing t he can get the dictator to give up is nuclear arms south korea no longer maining the perpetual -- north korea does not have those things north korea have menacing nuclear power. to assume that we can get this done by his charisma and by president trump and so forth and how he can size up kim jong-un and by feel and touch and gut feeling. no kim jong-un has been preparing for this moment his entire life receiving leadership training so under estimating the north

korea's leader and thinking he's weird and crazy and being surprised when you find that he's not only a lunatic but quite reasonable and charming, that has been a fallacy repeatedly americans have been played by their assumption of north korea as an under dog. >> professor lee, alexandra bell, thank you. >> 10-yr notes are up for auction. rick santelli is at the cme, what do you see for demand >> nine i gave the great b as iy not a bad option and we auns that reopenings are not quite the same as the first time let's go through it. 2.962 was the rate of the auction right in the middle of the one issue market just like the last one here is where it is stronger than three years 2.59 bit to cover, that's the best since january it means it is the second best

of the year. the light part is in direct 56 verses 10 options here is a highlight. 16.3% on direct. best levels since may of 2015. you know that represents government pension funds and mutual funds and insures this is a big deal to have that category excel so tomorrow we'll have our last leg in the form of 30-year bonds as all eyes looking at the first meeting. >> tyler, back to you. >> the president is over in singapore for major consideration from kim jung-ill. >> the s&p 500 is touching a three-month high today, "power

lunch" returns after this.

welcome back to "power lunch. let's head down to bob pisani. >> awfully close we are doing it without the leaderships of the banks take a look at sector right now. retail have been on fire and staples and some of food stocks are doing well and healthcare with some new highs and hmo's.

tech are not doing that much either we are still advancing despite the two big sectors not contributing a lot retailers, new highs all over the place. look at kohl's, some of these stocks are up 25% in the last three weeks, all time high for tjx and ross and kohl's. just amazing we have some modest health from health care and some hmo's sectors are up some of the medical device maker. of course, on merger deals going on still nothing in utilities and no rally and new lows right across the board and a lotf big names with duke energy and also new lows. very close to 2800 the important thing is the right sector have been leading it, tech and banks with a little help from retails and the trade war do hold the marks in march,

not now. so far, no signs they're going to react over the stronger economy. >> guys, back to you >> bob pisani on the floor we are hours away from the historic face to face between president trump and kim jong-un. then we get the big fed decisions on interest rates on wednesday and if that were not enough ecb decision on thursday which is also the bank of japan. so many moving pieces to throw out there. you got concerns of the trade war. it going to play out in the markets? lets bring in margie patel and patrick. nice to see you both, which is a bigger deal of the markets is it the north korea summit or the fed? >> oh, i think all eyes are going to be on the fed that's much more of an important factor for income for investors and leverage players

i think people will take a close look of what the fed does and how they'll move and especially if inflation number looks bad. >> pat triple digitrick, what d? it is so important for leadership and they have been lacking behind and they're not in the top four. >> you compare and contrast those effects. i have a hard time imagining how the fed is surprise one way or another. when you look at the summit with north korea/singapore, there is about 100 different surprises you can imagine out of that. most of them are worst rather . the markets get emotional. i am worried of the tone coming out of singapore than i am with the feds >> you know whn you then you thf the range of outcome and things that could go wrong and surprises. you can imagine things going

really badly ely i amotg a lot of this matters in the long run because the market tends to react in the short term but i think value really measured up a much longer periods. in the near term, the way i look at it is potential outcomes and the range of possible out comes and singapore is much more of a wild card and the feds are a much more predictable. i don't think there is going to be a lot of surprise from the feds, i think a lot of the bank stocks are cheap but i really think the tone of the markets is what comes out of singapore and the direct for the next couple of years >> margie, as you extend your horizon, what would change your favorable view towards stock what should i be looking for as the moment or series of moments when i pull back from my rather more aggressive stance >> well, i think the u.s. economy looks terrific and has a lot of momentum.

if there were something to derail this rosey outlooks, something is going to happen overseas if their economy slows down a little i say that's where the risk is and that'll go back to markets >> emerging markets and i use the term crisis advisively. >> that's one of the first place to look when it come to the dollar and the emerging markets. thank you for joining us, margaret patel and patrick kaser. >> coming up, what some industries may need to do just to keep the faorcty floor going. "power lunch" returns right after this

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an all new episode of "the profit" premiers tomorrow on cnbc >> i am backing the number down to a million it is a better deal for me financially than $2 million for

50.01. >> i think we should stick with the millions >> no, that deal is offer the table. >> my first offer is my best offer, all the time. >> an all new episode of "the profit" premiering tomorrow only on cnbc. >> meantime on this show president trump on the world's stage from trade to summit with kim jong-un. we'll try to figure out what impact if any the president have on the war of words with our allies and security relationship for th manner. we'll head back live to singapore where we are hours away from the historic summit and to michelle. >> sara, maybe 1:30 in the morning in singapore but there is fresh news to report, we'll have all the details you need to know right after the break coming up on "power lunch," coming up on "power lunch," don't move

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herrera. a developing story involving a united airlines heg to rome from chicago, united officials saying they have diverted the plane to ireland citing a potential security concern a suspicious note was found in the plane's bathroom united is planning to rescreen all passengers and baggage another section of the world trade center is officially opened today the third skyscraper at the site where the twins tower once stood. today's grand opening followed years of delays due to financial issues dennis rodman landed in sing spo pore today rodman on instagram he says "i will give whatever that's

needed." and the triple crowned justify returns home but not without controversies. restoring hope was in eighth place. part of the controversy though is that bob baford trained both of those horses. that's the news update, i will send it back to you. >> thank you, sue herrera. a gain of 70 points and s&p 500 is up by 10 and nasdaq is up by 25 your nasdaq leaders for the day, seagate and tesla and netease. >> now, let's get back to michelle in singapore. >> reporter: hey melissa, the big meeting is tomorrow.

kim jong-un went out and actually saw a tour attraction this evening he's the object of fascination since he got here when his motorcade arrived. when he went over to this big glass garden that he toured. there were a lot of people that you can see in this video taking pictures because he's so secretive. i spoke with the former ambassador of singapore and he worked for ronald reagan, i asked him of what does he think of this move ojong-un going out of the public like this he thought it was smart of him >> frank lavin >> i got to connect with the broader people he's speaking to the 2500 journalists here and he's

humanizing himself i am a person with normal curiosity and i am interested in paying courtesy to my host their >> ambassador lavin have been involved in trades and many different arms of the government he refused to predict what's going to come out tomorrow the situation is really unpredictable. >> i would not make a prediction tomorrow i will tell you this in private meetings and smaller group meetings, i think he does stay to the script so to speak and he does have the ability to establish a report with the other person when he tends to go off script that's when tv lights are on and he's bomba he's bombastic in his demeanor >> we'll begin at 4:00 p.m we'll have full coverage throughout the morning and throughout the day to see what the results are of this potential historic meeting guys, back to you. >> all right, michelle hopefully you can get some rest

in there that's going to be a long 24 hours, michelle caruso-cabrera in singapore ripple effect are still being felt tough talks for justin trudeau, here is peter navarro who took the cake on fox news on sunday >> there is a special place in hell for any former leader engages in bad faith and diplomacy with donald trump and tries to stab him in the back on the way out. that's what bad faith justin trudeau did with his stunt confidence that conference. >> that's what justin trudeau did. >> what are the real numbers our cayla tausche has the details. the president has made a lot of claims but are they true >> many of them are, they're a little bit more nuance than a simple tweet would let on. the president sees trades with

canada he made it known and taking aim. here is how the numbers stack up overall. this iaccording to the bureau of economic analysis the u.s. had a $2.7 billion trade surplus over canada. but, on goods alone which the president prefers to reference the u.s. have a $23 billion deficit. that excludes services when those goods cross the border, the u.s. charter tariffs, too that's higher than canada's 2.4% and the eus is 1.9%. china's tariffs is 8% and is more than double what do we charge. it includes 350% on tobacco products and 156% on peanuts and

28% on synthetics and fibers president trump referenced a 270% of dairy ri a source of frustration. it varies widely by products skim milk is just 7.5% and although it is worth noting. on average, the total tariffs is up there wto data shows canada charges dairy of an average of 249% when it crosses the border. tyler. >> cayla, thank you very much for the facts and figures there. do the facts sometimes back the president's point that we are taking advantage or is he cherry picking the data joining us is a contributor development. stefan, let me begin, it is difficult to unpack the numbers.

it does seem that the president likes to focus on when he talks about trade deficits, number one, and deficit in the goodsto economy. fair point >> i think his view is quite right that the good numbers relate much more to jobs than the services number and particularly as it relates to manufacturing. that's where this focus i think comes from >> so zach when cayla points out that overall our tariff rate is actually higher than that of canada, the president chooses to point to specific areas where canada's rates are higher like on dairy does that under cut a fair point that he makes that there are

glaring areas where the united states is being quote taken advantage of and end quote on trade. >> you know, it is funny, there is an episode of "south park" of a whole song called "blame canada," that's the parody of the relationship and like everything else it is coming true to your point, yes distorting numbers to make a point is never a good idea although it is certainly not an uncommon tendency of politicians at large. president trump is not the first person to cherry pick data to make a point it does not help the case but i am not sure that the reaction like oh my god there is glamblin and casablanca is entirely accurate that's not the world that we live in >> let's talk about dairy for a

moment the president is right calling out canada for 270% tariffs on dairy. does every nation on this planet defend their agriculture exports? is it slightly hypocrite caiphil >> this is the main reason why we are so focused on these very topics on t.t.p. and the investment trade partnership, the g-7 would have been apart of i don't think there is a debate about the issue that the president raises, the question really is this wrecking ball approach breaking up relationships and going after folks in the manner that he's going after them could be

constructive in addressing these issues >> zach, if you will to what stephen just said. i like to get your thought on the president either thoughtful or impromptu remarks that we really want to have is a tariff free g-7 >> the irony of time and again, trump has proposed things that trans pacific partnerships tried years to -- again, highly protection surrounding their own rice farmers or domestic production and t.t.p. was going to ease a lot of that access including things like automobiles which trump have been pounding the pavement about there should be more open markets of the u.s. and autoexports of the country these are not issues that are dealt with and in the way that it is distorted of the idea that

all these deals were bad and we'll come along and fix them when there is been imbalances for years that policymakers and people around the globe have been trying to address and in fact, could have and should of, the tpp would have addressed a lot of these issues and solve them but that ship has sailed. >> thank you, gentlemen. a new survey shows there is not enough people to fill all open jobs in america opioid may be apart of that reason what some industries need to do to get around that problem, next on "power lunch. medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs.

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opioid epidemic. at the same time some industries were relaxing drug testing standards to alleviate shortages. joining us now is the senior analyst at mccorey >> sumeer, thank you for joining us >> thank you for having me >> you over layed that over various counties and you saw which companies were most exposed of workers and labor to those counties what did i find? >> that's right, we keep on hearing this opioid epidemic for quite some time. the earning calls or when we talk to management specifically we looked at drug uses and how is it impacting

machinery and engineers and construction of sector unpredi unproductive labor have caused companies of delay projects o the other thing was when we look at the manufacturing base, we go and see places like caterpillar, all of thewould tell us they were having labor issues in the supply change, they're having a lot of issues where suppliers are having a lot of issues getting labor into their companies. what we did here was we analyzed these infrastructurejects and looked at every manufacturing facility in terms of u.s. manufaing and we over lay the c.d.c. data and what we found unfortunately, in places where projects were late,

drug usage was well above the national average we found in terms of manufacturing, we we zozoomed in counties where manufacturing was a big percentage of the overall labor pool we found drug usage above the national average >> do the company themselves tell you what you found? we believe that the absenteeism and the lack of productivity and the lack of qualified workers or the presence of workers is related to opioids do they say that > >> that's a great question a large part of these companies dance around and stigma is associated talking about this. we got a broad range of reactions. but what was interesting was that everyone seemed to have a personal antidote. everyone seems to know somebody or knew somebody that you know

that was personally impacted by the drug usage i would say, you know, these companies are aware but i think you know report like this or people talking about it more can help them address the situation broadly. are we at the point where this is impacting earnings per share and what if anything the companies are doing about it what we heard in some places they were relaxing the requirements in order to cope with this. that does not seem like it would solve this problem it seems like making it worse even >> right, right. >> for your first question i think there is a noticeable impact if you think about a large energy and infrastructure project late and costing hundreds of millions of dollars, you know, is it everything is everything related to drugs absolutely not is there a material factor where people are unable to get the right labor? absolutely as the labor markets tighten and

we are hitting later in the cycle, companies have to face the issue one way or another the logical question to be compans do to help local communities and especially the ones that help build them in the iconic brand they are like john deere and caterpillar. >> sumeer, we got to leave it there. thank you for sharing with us. >> up next, home flippings back to a level that we have not seen after the break, we'll talk to our cnbc's guru. "power lunch" will be right back

i went into this deal thinking that the number that was given to me was a hard number because -- >> it was from the best of my ability. >> i'm kind of worried to even go to the back page now. i mean, is it bad? >> it's more like how much more like the loan -- >> 20% >> 20% so you need $44,000 more >> $44,290 and a deficit for funds to finish this project

>> jesus -- >> well, that last little exhortation tells it all that was a sneak peek from the season two premier of "the deed." it airs wednesday on cnbc. joining us now to talk more about the program and the market for house flipping, which is very hot these days, is sidney torres, host of cnbc's "the deed" and founder of the private investment firm. that guy needs an iv with some cash what went wrong there, and what's the lesson for others who would be inclined to flip? a lot of times people get into this thinking, well, if i renovate for less or i have friends that are subcontractors, i can renovate for less, that's where i can make up my profit. so what happened in this case, he didn't fill out all of the subs he left out appliances he left out some of the other things like roofg shingles items that you just don't leave out when you're doing a remodel, and so that was a huge 20% over on what he originally budgeted, and of course --

>> that's a pretty basic mistake. >> it is a basic mistake >> was this his first attempt at flipping >> it's not. he's a contractor. and the difference is -- contractors, you have a change order and they make more money when they forget things like >> then they should know that's how you can get gouged >> true. but roof shingles, like you said, it's a house that already had shingles on it and he didn't think he was going to have to replace it but after katrina, with wind damage, they needed to be replaced. so what's great about this season, there's a lot of takeaways. they have these classes and people pay a lot of money for seminars there's all these learning lessons in season two that we didn't have in season one. >> budget is important and knowing your neighborhood is very important, not falling in love with what you're doing because you hear and you watch some of the other shows and people decide they want to put this back splash in the kitchen because it's marble and they love it but that's not what the neighborhood demands

>> sounds like you've done a little bit of real estate. but it's important >> are you a flipper in your free time? >> but it's so important you have to know what the market will allow and what it accepts for example, you look at your comps in the neighborhood, see what's selling, look at the quality of finishes and make sure that you value engineer it to fit what you're developing. >> everyone was looking at home flipping as a sign of the exuberance and sort of the risk-taking appetite leading up to the housing crisis. where are we in terms of how strong of a comeback that is and what it says about the overall environment. >> well, i mean, my opinion is that there's limited opportunity out there now. so you really have to know what you're doing when you're looking. >> because prices have gotten high >> because prices have gotten high many people are in the business. a lot of these shows make it look easy. what cnbc does is that they show you the financial side of how do you get in it and what are the things not to do when you're getting in it. >> how about rising rates? is thainto wash a lot of people out at this point >> you know, short-term flips, people are looking at it like, i'll pay a little bit more because i'm in and out long-term, like apartment

buildings, hotels, that's where it's really concerning for the rate as they rise. but short-term flips, there's -- for iv capital, my company, we do very well >> so give me a couple of touch points that will help me decide or look at a piece of property and say, that's a good candidate to be flipped and that one's not. what do you look at? what are the three things where you start? >> what i look at is where's the fringe and where's the hot spot? i want to be in the sweet spot and sometimes that doesn't wor out. you might have to go toward the fringe, in terms of neighborhoods, it could be new york or whatever, you have the hot spot, the sweet spot, and the fringe you have to establish your budget and you want to look for that when you find that location, it's very important that you value engineer it to make sure that you're not over-investing >> but tthat point, you have to -- if you want that fringe to become the sweet spot, you have

to value engineer so that your comps are more at the sweet spot >> correct you can't parade off emotions like james did where it's what he wanted. it's what the buyers want and that's what you have too look for. >> i'd love to spend a day with you. it would be really, really fun sidney, thank you. >> there's a show about it >> yes >> season two of "the deed" premiers wednesday, june 13th, at 10:00 p.m. eastern and pacific time only right here on cnbc coming up in the 2:00 p.m. hour, we'll head back live to singapore where it is early tuesday morning and we are hou from president trump and kim jong-un's historic face-to-face plus we'll talk to the ceo of u.s. steel, his te of the esids tariffs,the state of business right now and much more another must-see hour of "power lunch" back right after the short break.

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with the new chase ink business unlimited card i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about the details. fine, i obsess over the details. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase. i'm melissa lee, here's what's on the menu president trump's twitter tirade raising a few eyebrows on wall street but is the market telling us at the moment they think the president's bark is worse than his bite we'll debate that. plus u.s. steel opening an idled plant, so why is the stock down 15% in just the past 3 months we'll ask the ceo when he joins us for a "power lunch"

exclusive. and the changing face of the video game industry have some of the biggest players gearing up for a big battle royale. which stock will come out on top? "power lunch" starts right now and welcome to "power lunch. i'm sara eisen stocks steadily in the green right now, headed for their sixth up day in the last seven sessions coming off three weeks of gains, as you can see, all three of the major averages are higher, about 0.25%. united health, human, hitting all-time highs in the health care sector. those stocn the move transports are on pace for their fourth straight day of gains, led by airlines and the steel atf, slx, on pace for its sixth positive day in seven. and check out the or general ar peso there's the dollar spiking against the peso even despite some relief from

the imf on that rescue package let's hand it over to michelle caruso-cabrera who is live in singapore for the historic summit >> hi, sara. when president donald trump sits down with north korean leader kim jong-un tomorrow, it will be the first time that a sitting u.s. president sits down with a sitting leader of north korea. however, this is not the first high-level american official to visit with north korean leaders. they've done it in the past. they've tried to make deals. and it hasn't worked you can go back to when bill clinton was president, back in 1994, he sent jimmcarter, then a former president, to try to convince the north koreans to dismantle their reactor at yeongbang. they signed a deal but nine years later it was discovered that north korea had been cheating, trying to enrich you ra -- uranium. they were still testing ballistic missiles

so, bill clinton sent madeline albright as well to try to convince them to end that program. that too was a failure nothing came of it earlier this -- on this show, on "power lunch" last hour, we interviewed professor lee who we frequently have on "power lunch. he's from tufts university he thinks this negotiation, too, will likely be a failure >> i think ts moment in singapore may be recorded as a comical -- a tragi-comic moment when it becomes apparent that president trump is being played, moved by human beibris, among o things, presuming that he can get the north korean dictator to give up his nuclear arms. >> reporter: there are others who are optimistic that something positive can come out of this but we'll have to michey much don't miss the coverage of the summit it begins at 4:00 a.m. eastern time tomorrow.

that is when the president is expected to meet the press over in singapore while the president is over halfway around the world trying to avoid possible nuclear showdown, there's a brewing trade war closer to home so what do economists think of president trump's trade policies >> even better recent blow-up at the g7 meeting, wall street was critical of the president's trade policies our cnbc survey, 38 economists, managers and strategists were asked in general, how do you view the trump administration's trade policies 60% were negative, 5% and at least a third say it is too soon to tell, holding out hope there's some negotiating strategy in the president's methods here also asked, though, generally approve or disapprove of the president's handling to the economy and you can see he gets a lot of the supports so a lot of people who really support the president's overall handling of the economy are critical of his trade policies and you can see that more

generally when we look at the cnbc all america survey, nationally, we get the same split, more approval on the economy than we get overall on trade. the danger of those is backlash is on the president in that some of these trade policies, if they lead to retaliation, could hurt some of his very strongest supporters canada, by the way, is america's number two destination for agricultural exports after mexico china. >> china oh, wow. speaking of canada, steve, impact i want to read what the president tweeted yesterday about canada he tweeted, "fair trade is now to be called fools trade if it is in the reciprocal they make almost $100 billion in trade with the u.s guess they were bragging and got caught minimum is $17 billion tax carrie from us at 270% then justin acts hurt when called out." what are the real numbers, steve? >> i'm not sure where that $100 billion comes from or the

$17 billion. the overall trade relationship with canada is one of the best of any of our major allies and the data seems to contradict at least the way the president characterizes the relationship here is the data u.s.-canada trade is a big number $680 billion worth of back and forth trade. in that arrangement, all that trade, a very slight u.s. surplus, $2.7 billion in favor of the united states, and we get there with a large service surplus that's canadians "coming to america" to -- for tourism. that's an export, buying our television shows, whatever services are out we sell a lot more to them and we have a good deficit with them of $22.6 billion canada's 270% tariff on dairy is the focal point of the president's ire. that tariff exists and farmers around the world have complained about it for years, despite this, u.s. has a very large dairy surplus with canada. according to data from both countries, and it could be anywhere from $200 million to $400 million annually. the other area of contention, by

the way, steel the data showed the u.s. and canadian steel trade is almost precisely balanced so it's hard to find unfairness in the trade relationship the data show slightly favors the u.s., and in both of the areas that seem to be the major area of contention. >> it's not just hard to find unfairness it's hard to find national security concerns. >> there was that '95 movie where a president was hurting in the polls and decided to invade canada there was a national security there called "canadian bacon" but it's hard to find -- it would be one thing if we had this massive -- even if we did have a massive trade deficit with canada, most economists don't see these trade deaf sifis as the measure we buy their stuff like for example, if you import a $25,000 car, you give them $25,000 and they get -- and you get a car in return. that's the deal. like apparently it's the best car for the money that you've decided to do, and what i think economists fear most is the way that the trade numbers are being demagogued in a way that makes it almost impossible to explain

how it all works >> and steve, i'm sorry to interrupt. you said the dairy surplus was how much >> somewhere between $200 million and $400 million. canada has an overall trade -- but now, the argument from canada on this 270% tariff is that we give a lot of subsid our u.s. dairy industry, making it impossible for canadians to compete. be that as it may, i don't think anybody is justifying that there's all kinds of terrible subsidies throughout the agricultural system that everybody is guilty of and everybody thinks they all ought to go away >> everyone wants to protect their own ag sector. >> ag has more power than they should relative to their economy value provided to each of the countries. >> steve leaishman breaking down some of the trade policies the major averages are all higher at this how bob pisani, what's the thinking here >> well, we are just off of the highs, 2,800 is what everybody's

going for because that's the old march highs. that would be a new sort of blastoff here. just let me show you what the potential catalysts are to get us over there because the momentum is certainly with us. buybacks and dividends surging. it's going to be another record year i anticipate more buybacks as we go into the second quarter numbers. some people are hopeful that we might have some rebecca throubr trade. thmost important i think, i cannot emphasize enough, ware not peaking at earnings in any sector, anywhere right now just look at the s&p 500 26%. a lot of people in the first quarter said that's going to be peak earnings. that's not turning out to be the case q3 will likely see numbers probably about the same numbers about 26%. this is for the s&p 500. there you see that q3 that's going to be 26% very, very soon, in a few weeks. how about mid cap stocks like transports a lot of them we're not seeing any peak earnings there as well likely we're going to see q1 there, 23%, look at q3 there,

29%. we still have a long ways to go ask we're still going to be almost 20% in q4 that number will go up to 20% in q4 even the small caps that have outperformed everything that don't have a lot of exposure to trade at all, look at this q1, 24% gain, and q3, 17%, q2, 28% 33% in q4. that's not peak earnings we've got a long way to go in this game here, and tyler, i think the important thing is, the markets are acting like the trade wars are not going to have a dramatic impact. not just in the small caps world. we know they're not. but even in the larger caps. whether or not that's going to be a real effect or not, i don't know but i can tell you, nobody's dropping numbers because of trade wars right now >> bob, thank you very much. the market may not be too concerned about the north korean summit or trade wars today, but as steve just pointed out. people are worried that tariffs and any retaliation from allies could cost the u.s. jobs and that could hurt the economy. so what, if anything, should

investors do in the light of the current environment? kate warren is edward jones principal investment strat gist. as we look, kate, at all of the headlines that are out there and all of the possibilities for success or slip-ups, is there anything i should be doing to prepare or protect my portfolio, or should i just go steady as she goes >> i think you should go steady as you go. that basically it's a good environment for stocks, and you need to be sure you've got the right amount of bonds as well because there's probably more volatility ahead as everyone pays attention to all of these worries short-term, but longer term, it's the stronger earnings and stronger economic growth that are likely to keep driving stocks higher. ood ne for investors >> peter, how do you explain the market's relative calmness in a world where there are tensions and where the president's trade -- chief trade guy, navarro, says there's a special place in hell for anyone who

criticizes donald j. trump on trade. >> that was quite a strong piece of language he used yesterday, i agree. at the risk of flattering our industry, i do think that we are lovers of facts and analysis, right? and maybe what we've decided is that right now, there's just not any facts you can use to put into your black box of analysis and crank it and come out with a sense of how all the g7 dynamics, the trade tariffs, how can you quantify that impact on our markets. and i'm in the camp of, you cannot do that right now there's so many moving parts there's tons of history. you can tell all the past discussions of former presidents talking about this and the attempts they've made, et cetera, but in the end, trump has really rewritten this playbook, and we are seeing this playing out in live dynamics right now, and so you do have to have the ability to have some discipline to say, look, i'm going to watch these details, but in terms of translating them

into opportunities to use to gain insight into stocks, i think you can't do that right now. >> i don't understand that, because we are actually seeing real tariffs, which are taxes, coming at us from many of our top trading partners where a lot of goods flow back and forth, making those exports more expensive, making it costlier for u.s. companies already that creates uncertainty in business, and that also creates a hit to earnings, so i'm not sure why you can't quantify that in terms of the economic growth and s&p earnings and if that's really why the market's not reacting to this >> you can attempt to quantify that but i would say right now, to use a baseball analogy, we're maybe in the third or fourth inning of all that data and until it reaches equilibrium, i actually think it's somewhat of a fool's errand to do that right now, because we don't know how all the other countries are going to respond when they do respond and we get some kind of equilibrium, then i think it's worth -- >> i totally get that.

at the same time, to sara's point, kate, you know, if you have an estimate, let's say an s&p 500 earnings for the year, and they're at x and you want to say, you know what, we can only base it on fundamentals but there are all these other factors out there that peter had outlined, all those factors out there are risks to the downside which wou so it seems like it would be safer to assume there's mo downside than upside to those s&p earnings and therefore valuation could come down. >> you could aume that but i think there are thing that are risk to the upside where expectations are pretty slow global growth and if we don't see as much retaliation as everybody is expecting, remember that many of these tariffs have been announced only some have been implemented and if we don't see more implemented, you could actually get upside to global growth. you could also see a reversal of the recent dollar strength, which would help u.s. company earnings and that might also be good for u.s. global growth. so i think you're being a little

pessimistic in saying we only have downside to s&p 500 earnings remember everybody going into first quarter had pretty low expectations, so despite the tax cuts and lots of signs of strength, and earnings came in at 25%, 26%. that was well wabove expectatios and that's another example of upside that might be there >> all right >> i don't want to see there's no downside. i just think that there's not any big reason to be pessimistic right now in a world where i think the risks are pretty balanced and more of them are on the upside than downside in terms of helping stocks move higher over time >> all right, guys kate warren, peter anderson, thank you. >> you're welcome. here's what's coming up on "power lunch" this hour. the president's policies helping u.s. steel reopen one of its plants, but could recent tariffs hurt the progress they've made we'll ask the ceo in a "power lunch" exclusive plus, she has been dubbed the face of me to on wall street after suing for gender discrimination, we'll hear

exclusively from her and game on. we're going to break down who will win in the battle for domination as the video game hupeat all that and much more ahead on "power lunch." r hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all nht long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

u.s. steel today restarting a plant that has been idle since 2015 let's head to jackie she's joined by the company's ceo. jackie >> reporter: good afternoon to you, melissa well we are here in granite

city, illinois, at a u.s. steel facility where today production has been restarted at the blast furnace this is going to create 300 jobs -- pardon me, 500 jobs here when blast furnace a comes online in october, that's going to add more jobs, so 800 in total. we've been talking about this as a job creation story not just here at the plant but as a residual story as well within the community, in the town when you restart a plant like this, you need people to pump gas and run hotels, to make sandwiches and feed people so, this is a much bigger story than just u.s. steel alone, but we're here with ceo dave burt and we've been talking about job creation and president trump's policies having an impact, better demand on your business as well. but you say there's one thing that's even more important, and that's national security >> you're absolutely right national security is the real difference here, because at u.s. steel, we know that we're

foundational to the united states of america. steel manufacturers are foundational and you have to be able to make things in the united states. if you outsource fundamental foundational things to your country, then you're at the whim of bad actors and others who can shut you down. so it's not just military that's affected it's the roads, the bridges, the infrastructure and of course as you mentioned, it'e jobs and we're just delighted to be able to open things up and get things going again. >> reporter: now there are going to be those who say that protectionist policies actually will end up hurting the industries that they have been designed to protect. what do you say to that? >> i said we've been in a trade war now in steel for some 30 years. 30 years that's a really long time. and finally we have a president in place that's actually taking action so we can get everybody to the table and putting in place these tariffs are a great first start, and you can see what it's doing to this facility and as you said before, it's not just the 800 jobs that are coming here. it's the other jobs that get created from this.

>> tyler mathisen back in headquarters here. when did you decide to reopen these facilities in other words, was it before or after the president announced his steel tariffs? and second, what is it that caused you to reopen these facilities was it the tariffs was it rising just sort of internal demand for your product? what changed >> well, for us, we look to the customer first and for us, the customers are asking for more demand, but we can't be unclear about this the 232 and the actions that the president has taken have been incredibly helpful to us, but we don't open our facilities based upon some action we have to see the volumes coming in, and that's what we play to. we play to our customers, and that's why we opened the facility >> so, just to be clear, did you make the decision to reopen the facility before the 232 tariff action or after? >> we de the decision

concurrently with the 232 decision, because we knew this was the issue that was helping to bring customer demand back, so it's hard to say which one played more of an impact but again, we have to make sure that we're meeting our customer needs and the president has done a fantastic job with this, with the help from secretary ross and of course peter navarro as well. this is making a very big difference for the communities here and also for our business >> david, it's sara eisen in the studio what about the retaliatory tariffs that everyone else is now imposing on our and your steel exports? does that negate the positive impact you're seeing >> well, it's not negating the positive impact we're seeing 'll have to see how all that plays out, but again, we've been in a trade war for 30 years and i'd put it a little differently. we're actually now seeing our government stand up for the steelworkers, and this is a really good thing for us we'll have to see how this all plays out, but we think this is

a good first step and maybe canada and mexico and others will come to the table we've seen the south koreans come to the table and we actually ended up not having tariffs but also putting in place some quotas so this is good first step. this is the right thing to do. we've had sand kicked in our faces far too long >> dave, play this out for me. where do you see this going? this is a first step with blast furnace b but not just for your any, other steel makers. how does this pick up momentum and snowball down the line >> it feels like a renaissance for us people are coming back, the volumes are coming in and so long as the organization sees the demand from the customers, we're going to be fine we'll have to see how all the politics play out but we have to remember, again, the price of steel, the changes in the price of steel, people get all concerned about that, but didn't seem like they were all that concerned from 2015 to 2016 when steel prices were dramatically dropped by 40% did the cost of goods go down? of course not. so we don't really think it's going to have that big of an

impact going forward we need to play this through great jobs are coming back and that's what we need to focus on for our people, our communities, and the usa. mined, melted, made insa, it's a great thing >> dave, i want to get a sense of your sense of how the quarter shaped up. your last guidance was in late april or so, and since then, u.s. spot sheet prices have been a littit higher. costs, some analysts point out, like freight and labor have gone a little bit higher as well, and then you have europe, a lot of indications from europe indicate somewhat of a slowdown or slower growth than expected what are you seeing overall for your business? >> well, when we announced the reopening of blast furnace a and the hiring of an additional 300 people, we indicated our guidance would be at the high end of the range between $1.7 billion and $1.8 billion so we've provided that guidance >> dave, talk to me a little bit about the morale of the employees that are coming back to work today. i've had a chance to speak to

some of them and they say they just feel overwhelmed with joy and hopefulness. they realize there's risks, but they're still positive >> we're overwhelmed with joy too, and we can all get kind of emotional about this we realize what these people have been through -- think about it individually, if you don't have a job for many years, how that weighs or n your community so the people are fired up, pumped up, ready to go, and we can be shipping product out this week, so we're well ahead of schedule and i'm so delighted with the morale and the teamwork across all salary grades and we have great partnership here with the u.s. steelworkers who is also helping to make this a reality so we're very, very happy >> dave, president and ceo of u.s. steel, thank you so much for your time here >> jackie, thank you up next, michelle's live in singapore where she will look at some of the money-making memorabilia that is popping up around this historic summit. hi, michelle >> hey, tyler.

if you were going to host a summit with the two big outsize personalities in the world, wouldn't you create some memorabilia? g ming up, the next hot thinon eb we'll be right back.

hello, everyone. i'm sue herera the mexican drug cartel leader getting a near 50-year prison term plus he must forfeit $192 million he was sentenced today in atlanta on drug and money laundering charges la barbie is a former texas high school football player whose real name is edgaraldez and he's accused of bringing trucks full of cocaine from mexico into the u.s. north korea's kim jong-un is touring singapore ahead of his historic summit with president trump. tomorrow, the two leaders plan to have one-on-one meetings with just a pair of translators they will also be together for a larger meeting back here in the u.s., state officials are surveying the flooding damage in southern new jersey today rivers have been overflowing following heavy rains. those rains even created a sinkhole that partially swallowed a truck. and more than 600 beach

goers are recovering from jelly large jellyfish are washing up on the shores. the rash of attacks happening over just the past few days but no word yet on what's causing the influx of jellyfish. watch out. that's the news update at this hour >> oh, bad memory. sue, thank you let's head back to michelle in singapore michelle, you're looking at some of the memorabilia popping up. i especially like some of the food in the food-obsessed singapore that i'm hearing about. >> and the cocktails as well you know, what's interesting, sara, is this is a very serious event, right president trump is here to try to convince kim jong-un to stop his nuclear weapons, to stop ballistic missiles, which, by the way, some experts believe now could hit the united states, and yet the mood here is heady, giddy. people are just amazed that

two outsize personalities like president trump and kim jong-un could be in town at the same time so, you know, here's the straights times, it's very serious, as you would expect, and yet at the same time, they've put out, for example, commemorative water. i sent out a photo on instagram over the weekend so we can show you with the face of kim jong-un and also the president on there. yes, the straits times, trump-kim singapore summit they've also got this commemorative fan, which lete tell you, you really need here and on one side, you can see, there is kim jong-un and on the other side is president trump. how much do you think i could get for this on ebay they give this outo all of the reporters. additionally, there's lots of cocktails. there's one that's called the trump. it's blue. they color it blue it's bourbon-based bourbon is american. and then there's a kim it's red it's based with a korean spirit called soju. so, it reflects that there's this -- i don't know, it's not the typical kind of mood that

you would expect for something that is really quite serious, guys >> yeah, you've got to get your hands, michelle, on the summitia blend of american iced tea with korean yuzu honey tea. it sounds delicious. >> i can't wait to try some. i can't wait to try a cocktail, actually any moment now >> no time for cocktails, michelle >> tomorrow night, maybe >> thank you, michelle caruso-cabrera in singapore. when you were talking about foods there, i thought needily about kim jong-uni >> that's not korean or american >> it's international. in her first ever tv interview, the woman who's been called the face of the me too campaign on wall street will take us behind the doors of .72. she tells us why she's still working there. huge interview stay with us here on "power lunch. 00 operations a year in places like this. for the past 15 years,

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welcome back to "power lunch. imagine suing your employer and still working there during the lawsuit. that's taking place at one of the biggest hedge funds. our leslie picker is here with the story. >> sara, that's right. lauren bonner filed a lawsuit against hedge fund .72 more than 100 days ago for gender discrimination she runs their talent analytics

group, meaning she sees employment data and found what she says is a bias against women at the firm. i asked her why she decided to sue. >> i joined the firm initially to build a technology platform that would help us uncover traits of greatness in investors. the idea being that we would be able to find kind of off the radar, nontraditional talent who had all the great intrinsics of an investor, and i love that work and i continue to love that work but while i was there, what i saw over time, looking through the data, was that there was an institutional bias that was so entrenched that it just made it pretty impossible for women to advance economically or professionally >> you're still going to work every day. you came from work today what -- what has it been like since you filed? >> it's awkward. but it's also not that bad

it's -- i used to come into work feeling pretty demoralized, and now at least i get to come into work feeling a little bit more positive about what i'm doing. >> what's been the response from other women u filed this suit >> my sense is they don't feel comfortable talking about it in the office, but i hear from a lot of them in the evenings when they do feel safe, sharing their own stories and sharing support. >> women at .72 have come to you. >> women at .72. >> have you always heard from other women across wall street >> i have. >> with similar concerns and complaints >> yeah, i've heard from women, really all over the world who have shared their stories, shared what the fights and the struggles that they've been through. they've shared support >> what's the number one issue

that these women have? is it the pay gam? is it discrimination is it harassment >> well, that's all really some version of discrimination. it comes down to really feeling harassed and the pay gap always comes up >> do you think more women will follow you >> i don't know. i think it's a good question i think for me at least i hit my limit. i got really fed up, and maybe other women haven't hit their limits yet i don't know but i also think it's -- it's also really scary for these women. there's a reason that more stories haven't come out, and it's not for lack of stories they haven't come out because of this kind of culture, this small boys' club culture that you really have to know other people

to get jobs, and so there's a real fear that you just won't land another job if you upset the apple cart in any way. >> there's fear of retaliation >> there's massive fear of retaliation, exactly >> is that a concern of yours? >> it is a concern of mine, but i also think i'm pretty lucky. i have -- i've had great care track record so far i've got spectacular support system, and i have a good network, so i'm not that worried about not finding another job. and i don't have mouths to feed. i don't have a mortgage. i'm in a -- if i don't do this, who will >> ient to cnbc, point 72 said, contrary to ms. bonner's assertions, this lawsuit is replete with allegations that are false or based on unsubstantiated hearsay and that she never brought to the attention of firm management point 72 was already addressing the underrepresentation of women

and minorities, a reality across the finance industry, with a series of initiatives designed to recruit and support that. before ms. bonner was hired. in fact, she was involved with some of those initiatives, but instead of working with us constructively to advance our goals of diversity and inclusion and after only 18 months of employment at the firm, ms. bonner demanded $13 million and sued when that demand was rejected a representative for bonner declined to comment on that figure more from our interview with bonner can be found on cnbc.com. >> leslie, thank you for shining a light on this. we want to broaden out the conversation stay with us our next guest worked on wall street for over a decade and was the youngest managing director at bear sterns her novel, "opening belle" shines a light on the pressures facing women on wall street. nice to see you. how widespread is what leslie just reported among hedge funds, big banks and the rest of the

finance industry >> when my book came out, my website got so many hits and also an article i'd written for the "new york times" about this very thing because it became a kind of safe space, a place to sort of tell your story and go for advice without any hr or, you know, fear of retaliation that she also mentions in this interview. and so, you know, my personal experience, i think many women have had this experience and also many women have not had this experience and so even when she did come up with her allegations, and i think she's extremely brave to have done so, there was a lot of chitchater on my website, again, about this very subject people on both sides of the table. >> feels like a big touurn to change the entire culture of wall street and some of these big banks to make it feel comfortable for women, to close the pay gap, to get more friendly maternity leave policies where do you even begin. >> i recently got a pencilled note, letter so that nobody

could tell who wrote it from four women at a major bank and their story was, this is what's going on here and we'd like someone to investigate we have gone to hr and there is -- they felt there was definitely retaliation when something like that happened and so it shouldn't feel like that why is human resources feel like a place where women shouldn't go, because it might be the end of their careers for them. and so i think that that's a really good point, that she's seeming make here also. one question i'm also getting about this case in particular is, she had a lot of information that was very useful to her, but the question about why wasn't she using it internally to make these changes that people so want, and so women want to see more of that they want to see these changes coming from inside, not feeling you have to go outside the firm to get anything done >> i have to wonder, too, why it is on wall street that there's such a fear that doesn't seem to exist in other industries -- i think it does exist in other industries but maybe not to the level that it dmuz wall street the fact that we've seen so much

come to the surface in the me too movement but on wall street, it really doesn't seem like we've heard as many cases as maybe in the media industry or even -- >> entertainment the big question after harvey weinstein was, when are we going to see wall street's me too movement >> so a few things the -- you don't have the numbers of women that you have in those industries, i don't believe. especially in the more senior positions, one you also have this feeling that they only see -- women only see, in the most senior position, n men, so they want to be with the winning team so who is their alliance going to be with? it's going to be with men.there. women have worked hard to get to these executive positions, the few who have, so for them to make a real concerted effort to pull younger women up into the ranks -- >> i will say that the numof female employees is actually higher at top banks than top tech companies, according to axios, by almost 20% >> but if you were to compare tech companies to, say, hedge funds, private equity, et cetera, i think that number

drops dramatically >> we need to see a female banking ceo. thanks for joining us. her books' rights have been sold to reese witherspoon >> thanks, folks video game wars are on as the e-3 expo kicks off in los angeles. which company will come out the winner and power your portfolio? that one is next on "power lunch. >> announcer: the cnbc trend tracker live data board is brought to you by the cme group. ♪ that's confident. kayak searches hundreds of buttravel and airline sitest. to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done.

at this year's e3 it is clear the biggest players in gaming are looking to shake up the industry microsoft acquiring a british game developer and announcing a list of new exclusive titles for the xbox ea targeting fortnite and the craze. both ea and microsoft say they will launch video game streaming services so which stocks will be at the top of the leaderboards this year? joining us now is the senior analyst at piper jaffrey this streaming service seems fascinating.

from microsoft's point of view, that makes sense you have a console from ea's perspective, how do they deliver that? >> it's a good question, and in general, we expect to see a lot more streaming and subscription services initially we think that some of the game publishers will try deliver these services themselves so ea doing that, activision microsoft is taking a little bit of a different approach given they have a platform for gaming. i think ultimately we're going to see a situation where there's an aggregator for games like we see itunes and netflix for music and movies in the near term, there's going to be a lot of testing and learning >> when you think about ea launching a streaming service, i would imagine there are plenty of benefits such as smoothing out the revenue stream so it's not so lumpy, but also how do you think about the margins on this do you think it's comp raarable netflix or spotify or pandora? >> it's really good for

visibility and just the recurring revenue situation that could play out from subscription i think from a margin perspective, it just drives more revenue to digital, which is certainly a positive we generally see about a 20-point gross margin uplift for a digital game sale compared to a physical game sale, and today, the industry is at about 40% of games that are sold digitally, obviously, in a streaming or subscription world, that would be 100%, so it really just furthers that shift toward more digital streaming. >> are we going to look back, michael, at this period of time and say, this was the beginning of the end of the gaming console? >> it could be i think it's going to change, and the gaming console will be different in the sense that, you know, the next consoles may not have a disk drive, and they may end up just being more of kind of media boxes, almost like a roku box or a fire tv stick or something like that. i think in general, what we'll see is that initially or eventually, i should say, the gamer will just need a really fast internet connection and

some sort of internet collection device on the other side of the equation, and the console won't be as necessary, which is great for the video game publishers because then there isn't the same bearrier to entry going ino video games. >> thank you so much >> thank you it could be a volatile week for the big banks thank you so much. >> thank you a volatile week from the bigbacks and european central bank on should you get into the sector ahead of the big decision we'll debate, and, tomorrow, a don't miss interview on "squawk box," exclusive and rare conversation with paul tudor jones calling the 1997 stock crash and other calls over the years. that's tomorrow 8:00 a.m. on squawk box

trading nation, looking at the banks, near session lows selling negative for the session and market gearing up for bank meetings, bracing for interest rate decisions what is the trade on financials? chris burn is here, and phil with blueline futures.

chris, within the financials, bullish specifically on the regional banks, nigh to do with the fed meeting this week? >> it helps. when you look at the group, especially over the last number of weeks, while bigger ones struggle, smaller ones acted fantastic here we have the krx, and this group essentially has been consolidated the better part of the last year and a half, just coming out of the space, and most importantly, it's doing it in relative terms as well. these are six month relative ties for regionals sending a positive message, all good charts to own here >> they've been bigger beneficiaries of the deregulation game from washington bill, regional banks, big banks, or none of the above >> well, the regional banks are having a poor session today, but the kre index, eft did make a new all-time high last week. i think the banking sector as a whole gives you a good pulse on the market that with all the central banks, versus the fed wednesday, most importantly, but

what i watch closely, too, the tpi read tuesday, and a better than expected read sends yields higher, and higher yields are supported in the banking sector. watch for that when the fed hikes rates wednesday, if they are more hawkish than expected, you'll see other markets and sectors stumble. the banking sector could be a pillar bigger banks, though, i'm watching jpmorgan and bank of america. when they closed before the italian crisis over memorial weekend, that closing level on may 25th is tough to get above and stay above watch the levels in bank of america and jpmorgan >> comes down to the outlook the fed projects after the meeting this week. thank very much. >> thank you for more, go to tradingnation.cnbc.com, follow us on twitter @tradingnation check, please is up next the latest from

tradingnation.cnbc doe tradingnation.cnbc.com in a losing trade, avoid letting your emotion get the best of you. too often, traders want to add to a losing position, but experienced traders will say, your first loss is your best loss, in other words, take a small loss and move on before it becomes too big.

check, please. >> boston scientific as the wall street journal reported striker would make a bid

shares are halted now, still halted, boston scientific has a statement hthey offered no comment. we'll see when there is comment when the stocks resume trading >> if you missed the i-hop change to ihob the internet is melting down over the change. it's a temporary change to promote the new burgers, though, most people prefer can cakes, i'm learning they are getting in on the trolling action. netflix got in on the action, brb, changing my name to netflib. wendy's not afraid, too hard, too difficult. and hot pockets tweeted his hot bockets. i don't think the internet, most people are fans of the i-hob temporary change >> it did what it was supposed to do, create buzz historic meetings again

tomorrow eastern time 9:00 p.m., that's at 4:00 a.m. eastern time, we'll pick up with special coverage of president trump's press conference post summit by then, kim is on his way back in his chinese plane to pyongyang and president trump leaving soon after >> fascinating day thank you for watching this is "closing bell," a huge week for markets, north korea, bank of japan, ecb, the fed, and at&t time warne cision which factors could move your portfolio? >> reporter: we have the first ever tv interview with the fac behind the me too movement on wall street. she's suing point 72 speaks out about gender and pay discross-cladi discrimination coming up >> reporter: revival o