interested >> has the appeal. >> the fcc made important comments about etherum >> temperature seconds to talk about the end of time. time warner going to at&t, and in a month's time, "time" magazine, s.i., money, and fortune sold by meredith thanks for watching "power lunch. this is "closing bell," a wilfred frost, a big announcement today, ending the bond buying programs by the end of the year, what it means for your portfolio coming up i'm phil lebeau in chicago, saying boring company has a major rapid transit project. can boring deliver on the high speed promises >> we're at the new york stock exchange a man in charge of bitcoin

policy at the cc as that agenc attempts to answer some of the biggest questions for crypto investors. in washington, d.c., tariffs on chinese goods go in effect tomorrow and what the deal between the two nations can be reached, but a political battle is underway that could hurt the chances of an agreement. i'm kelly evans, julia robertson is here for an interview to discuss the favorite stocks and why it's not a tech bubble. the "closing bell" starts right now. ♪ hi, everybody, welcome to "the closing bell", we'll get to those stories in a moment, but a check of the markets dow is down 54 right now, only average in the red, though nasdaq with a nice session, hitting another high, up two-thirds of a percent, 7744. s&p up four points we start with comments from the european central bank about

the massive bond buying program. we get right to our steve leisman. steve? >> big decision from the central bank following on the heels of yesterday's fed rate hike. both moved to normalize crisis era monetary policy. ecb announced a four-step plan to end the 3-year-old quantitative easing program, balance sheets had 4.6 trillion euros to just over two taper quantitative easing in october, down from 30, keep the balance sheet unchanged, and keep rates unchanged that's the reason the euro did not take the dovish outlook well falling in the day and fell out of bed that fell again 115.92, a number not seen in quite some time with a big move for the currency. ecb lowered gdp growth to 2.1,

and draghi spoke about the risk to the outlook including trade >> there is broadly balanced, nevertheless, uncertainties related to global factors including the stripes of increased protectionism have become more prominent. >> the outlook for rates from the fed also changed after the fed hike raised signaling a hawkish outlook. september, pretty much a lockdown another quarter point this year and more than half now another rate hike in december. that first rate hike of 2019 now a 34% chance more strong data in retail sales, pushing up the rapid update kelly, ready for the number? 3.9 -- so close, i wanted a 4, but you can't fudge the numbers, 3.9% i will say half the group was above 4% with some as high as

4.9% >> not just the atlanta fed. >> no, that's right. >> one thing when it's just atlanta, another thing it's everybody. >> there's nobody below 3% in the survey >> not bad just a few more points, stay there, steve, and let's introduce the rest of the exchange brent is here from northwestern mutual wealth management, and steve grasso, and rick santelli from the cme in chicago. steve, what do you think -- we were -- the ecb was one of the big events this week >> right >> so what now >> well, if you look at the market, i think the market doesn't do justice to what the innards are saying today there's consumer names a little bit pressured from the overall market i'm talking about the retail names, so those names had a huge spike over the last couple weeks, but to steve's point, i think the ecb, a little dovish,

market sort of digesting it, but i think the overall health of it is that the market is digested so many things recently, here we are, right on the precipice of making new highs, close enough to say we're in eye shot of new highs, and more and more the list of head winds have become tail winds or at least innocuous to the overall market. >> rick, the mood of the market on the day the ecb said they are ending bond buying programs. extraordinary weakness in the euro off the back of it. >> yeah. you know, you have to kind of put yourself in the frame work and mind of a trader traders thought mario draghi would be more definitive listen, i know he gave target dates for qe he also gave target dates when to raise rates most likely, the target dates are not believable to many traders. they did not sound convincing. many traders looked at, you

know, the uncertainty, the risk to growth, contrast what their statements and their press conferences were to ours yesterday. it is north and south, completely in opposite directions you know, steve made a good point. he said that the ecb is normalizing like we are. well, they are trying to normalize policy, but the actual normalization process is not under the thumb of the central bank it's the economy it's the markets they do the heavy lifting. policy just tries to fimove it n that direction the problem is ours is a willing patriot in that. our economy is moving. it's sitting strong. retail sales data today was good, and if you looked at the nonseasonally adjusted, it was really good. it was solid whereas europe, i don't see it what you see in the euro, wilf, are promises from a central bank that do not match what europe and the economy is doing, and i

think the traders smell blood. >> rick, before moving on, i have to ask about the dollar i don't know if it's all just the euro, but the dollar index is more than a point, and everyone watching emerging markets right now are going, wait, how much worse will it be in arian gene tgentina. there's a lot of pain out there. >> i don't understand. it's whack-a-mole for emerging markets. the thing they tie in knowing the direction of the fed, knowing the ecb probably can't get all their ducks in a row, to me, the dollar index is mostly the ben finieficiary of the eur7 of the dollar index. that's the mover and shakerment don't underestimate how the fed direction, the contrast with other central banks, the solid undertone of our economy is also a positive for the dollar, but, today, no doubt about it, especially when the euro slipped under 117.

that's when the dollar turned on turbo thrusters, and traders tried to pick bottoms all morning in the euro turn si and turned into late morning sellers. >> brent, we have a week of a rate hike, another day of a very strong dollar, and yet markets pretty encouraging in terms of holding on to gains, slight gains, but still not falling is that another sign you should be investing money domestically in the u.s. equities and not abroad >> no, you should go abroad. comments about emerging markets, but put the dollar move in context. look at the dollar, it's where it was end of the year, and year over year basis, it's negative there's emerging markets under pressure, but, you know, i hear the warnings, and i think those people, those economists making them will eventually be right someday, but the day is sometime in the future so between now and then the u.s. pulls the economy with it. you have global growth under that scenario, invest internationally for diversification and future

gains. >> huh >> it's tricky, brent, people think, okay, well, emerging markets are going to grow, but it's not just growth, but it's the currency that always gets us >> absolutely, but i think if you look back at sources this is not the first time the fed hiked, raised it a bit, although i think chairman powell created room for himself to let inflation run higher look in 1994 when the feds hiked, there was a fit in 2004, when the fed started hiking, there were fits. one currency crisis in between not every time this happens is there a currency crisis. i think the economies are still strong, and i do continue to see global growth, and the one most important thing, i think central banks around the globe are airing on the side of gradual, and with extreme caution towards keeping it accommodative, and so i don't think any central bank now wants to willingly actually cause a recession by tightening too fast >> you know, steve, back to the

markets very quickly, steve grasso in terms of telco's being the worst this week, what about comcast and the valuation? attractive >> comcast, when it started, i thought it the most interesting thing, obviously, the parent company here, so you want to, you know, see them unbiassed, but truth is, look at disney, i felt as though you goet the park's $18 billion in revenue, yeah, they are a diverse sort of portfolio for them i thought comcast was undervalued going into this. the obvious is fox the assets there, continue to buy that because that'sfor, but picking one or the other, it's comcast over disney. disney is in the trade range and should be sold off the stock >> right answer, sir just kidding >> steve, final words from steve, central bank watch, still another big one to come? >> yeah. but i think brent made an excellent point that what happened yesterday with the fed's forecast going from 3% to

4%, it's like one or two folks on the fed changed opinions. it's not a huge change the idea that the normalization process is going on in a gradual pace remains true in the stake that remains true in europe, but as long as that goes on and as long as the central banks get to where they want to get to, back to something resembling normal rate policies with low inflation, i think the market's going to be okay and not spooked by the fed and maybe follow more of the growth outlooks, which are now positive in the u.s. and a trend in europe. >> all right great stuff, thank you, everything steve, brent, steve, and rick. still ahead, investors are buzzing about a potential wave in m&a in the media world, but wast th-- what's that mean for consumers. the impact on your cable bill. that's coming up an interview with julian robertson and hedge fund legend named his favorite stocks.

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welcome back, i sat down with tiger management founder, julian robertson, hitting on topics like how a breakdown of nafta could affect investments this is what he had to say >> i think there will be some breakdowns in probably nafta, and i don't think that's the end of the world on the other hand, i think air canada at three times next year's cash flow is not an expensive stock. it's a beautifully run good company, and, in fact, the cash flow is going to be 30%.

i think it's good. >> what about the u.s. airlines? anything compelling to you as it was to warren buffet last year >> i'm wild about ryan >> ryan air, european? >> the european canada me i don't have many favorites in the u.s. right now >> do you see more opportunities abroad right now >> no. generally, i see more opportunities here i just think that airlines are special things, and i think air canada and reiyan are special. >> what about the banks, jpmorgan, bank of america, names you still like >> love them they are still reasonable in relations. we see them creeping up on huge cash flow yields next year, and

thereafter, and i think the banks are in terrific shape, and i love jpmorgan and bank of america. >> just those two? >> no. i like a lot of them that's where my money is, but there are others i like and will probably put some money in some other ones >> like goldman, for example >> i would think goldman would be a very good name. >> reporter: morgan stanley? >> definitely. i would call them investment banks, but i certainly would call them attractive banks, whether investment or otherwise. >> and regional banks, smaller players? >> i don't see much need to get involved in those when you got all these great big ones >> the big ones have had -- they have trading now, and it's been a concern the last couple years,

but maybe that's starting to look better. there's also people saying, because of the, again, this at&t ruling this week, there's going to be a ton of deals, and they'll benefit from being investment bankers is that part of it do you just think they are cheap enough that you like them anyway >> i love them without the money they make on the investments >> oh, he cracks me up we'll have more from the interview next hour including thoughts on the president and one tech name in particular he's betting on right now >> the point on the banks, as well, with fred yesterday, the investment banking revenues, of course, expected to pick up, and they are licking their lips at the potential comcast bid because it's so debt heavy, a cash offer, there's a lot of financing opportunities. >> it has to see a number of big name investors like robertson being one, but talking with ubben from value act, his favorite name was morgan stanley, and, again, valuation issues are compelling, but these

are people who don't get involve the unless they see compelling returns. >> the potential for the banks is three thursdays in a row now, just had one today, in terms of rules and updates from the fed on the banks one today was not a huge one about how much they lend each other, came in where expected, and next week we have a stress test, and i would like to get past that. >> true. >> should be fine, the rules are tight, but they are all well-capitalized, going back to the focus on the most, of course, they delayed paying out their buybacks, this quarter, because of the stress test that'll be next thursday until then, under pressure a little bit today, down about a personality or so. >> we have a news alert on facebook here. sema, what's going on? >> kelly, facebook's policy, stepping down after a decade, according to recode. the long time executive was criticized for the giant's handling over a number of

controversy including the analytica scandal. he joined facebook ten years ago from google holding a similar position running global com and public affairs keep in mind, shares are higher today by 2%. wilf, back to you. >> hit an all-time high. >> exactly >> and you can understand that role changing. >> yeah. sema, thank you. elon musk's boring company scored a victory, landing a big infrastructure project in chicago. phil lebeau has the latest, phil >> reporter: hey, wilf, we're in city hall, and husk is up in the mayor's office now talking with the mayor after announcing this project, and let's explain what's going to be built here by the boring company this is a high speed rapid transit system it is not the hyperloop, although, he says eventually it could transition into the hyperloop. taking six to eight people in a pod from downtown chicago to

o'hare in 12 minutes estimated cost could be a billion dollars, though, that's just back of the envelope math according to musk. this is musk talking about the project and how ambitious it is. >> one of the hardest things to do with any new technology is not to demonstrate the technology showing it works, but to show people that it can be useful that's the hardest thing in the world to make something useful, where the revenue exceeds the cost of the thing that was done. this is an outstandingly difficult and underappreciated thing, and that's what we intend to do here in chicago. >> reporter: keep in mind that e musk's boring company is making up the cost of the project the city of chicago is not paying one penny for the project, estimating it costs $1 billion. they have to hammer out the details over the next couple months and potentially for construction to begin, the extra

boring of the tunnels, to begin maybe later this year, but more likely early next year one last thing, musk was asked when will it be done and people be able to get into a pod and go to the airport he said, within three years. i bring that up because, remember, at the annual meeting, musk said take what i say when it comes to time frames with a big grain of salt. i sandbag my estimates that's the latest from the boring company back to you. >> phil, a short distance as the crow flies, but at the moment, traffic is so bad it takes an hour this will shave time down significantly if it works. >> reporter: right to give you perspective. this boring tunnel project will go underneath existing raillines, 17 miles from downtown chicago to o'hare to get on a train now, it's 40 minutes if they are on time. if you drive, that's an hour on

the kennedy. they believe they can make the trip happen in 12 minutes. >> great stuff thank you. phil lebeau in chicago >> that's the dream. i hope it happens. all these big cities one day news alert on apple. josh lipton has that josh >> kelly, news on apple, new report that the company is near a deal here for the rights to an animated movie apple's apparently in talks with cartoon saloon, an ime movie no even made yet. apple made a push into original programming, taking on the likes of netflix and amazon. to date, the focus is on tv shows and documentaries. have not done a movie before apple declining comment to cnbc: guys, back to you.

>> thank you what point do they dip the toe in the water, and we don't know if he can pursue this, comcast in the mix, and the videos is still largely viewed, particularly on music, they have the subscription service >> right >> easy transition >> logical next step >> we shall see. coming up, after a staggering run up, bitcoin lost a quarter of the value in the past month speaking with the man at the sec, how the agency plans to regula regulate crypto. >> deal or no deal kicking into high gear, up next, we'll talk to the man who knows a lot about deals. deal or no deal host, how howie mandel is here we're back in a couple (siren wailing)

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welcome back, cnbc is getting into the game coming this network, one of the beloved game shows "deal or no deal," howie joining prime time >> they have a british version >> they do this one is much better. >> howie is here we don't want to waste time talking about the other version. >> british version was before us >> right

>> you guys picked it up, and you juiced it up it's much more exciting. >> and even more exciting now on cnbc, bringing back 26 models, $1 million >> the briefcase girls does that fly today? >> it flies. >> now it's not pc or something? >> it is they are beautiful young ladies. look how she turn out. we made a trade. we sent you, meghan markle, and we got you she was a "deal or no deal" model. >> i came two and a half years before, but it was lined up. >> we had to ensure the trade would work >> same show we remember are you making it another tweak to it? >> tweaks and stuff, but if it's not broke, don't dpfix it i can't tell you how excited i am i think that cnbc is the perfect place for the show because you're all about business. you know, it was funny when we first did it, people were studying our game in business school. >> huh

>> people, traders wrote about the game because, you know, greed versus, you know, the taking chances it's a real study in humanity, and being here on the floor, this is the ultimate deal or no deal >> you're mr. popular around here >> deal! i don't know somebody bought. somebody sold. has to be a deal, right? >> and, listen, you've been in before you rang the opening bell before >> i rung the opening bell, and it's historical because i rang it four minutes late >> did you really? >> i couldn't get here in time >> i can't believe it. they waited -- they don't wait for anybody. >> i know, but howie mandel. no, they department. they didn't. i made the story up. i feel guilty. i say something, and i feel guilty >> we are going to play a game in a moment, but you've been in tv for a long time >> yes >> a lot of mermg gers taking place, with talk of more and whether people are online, is it a great time to be a content

creator? >> the best. best when i came into the business, when i decided i wanted to go into show business, you went out to california, especially in comedy, and you went to the comedy store or the one place to get seen, and years before that, there was maybe one place like the ed sullivan show, where the beetles launched from, and then "the tonight show," and all the platforms -- >> i don't know you breakthrough, frankly, there's no ed sullivan equivalent. >> if it's noisy enough. my golden buzzer girl that has over 200 million hits worldwide. she's from your country. you got a chance to watch it it's the most amazing thing i've seen >> switching roles now we're the hosts now. >> all right >> playing a game. this is how it works we got five cases with five pop culture and business topics in the news recently. you pick a case. we'll reveal the story

you say deal if it's a good idea, no deal, if it's a bad idea >> i like the way you tied my game into your game. >> go ahead and pick a case. >> starting with number two. >> yes celebrity shoes. >> all right >> all the rage. the rock with underarmour, what about a howie shoe >> no deal no deal. when you think of mandel, you don't think you think shoe >> don't think the sneak >> i have a nice pair of kicks >> i like those. >> i'm with you. i don't like the celebrity deals no >> next case >> okay, next case, i'll take four if you thought of antibacterial socks for howie, that's a deal >> the race to space is a hot topic. celebrities signing up, virgin atlantics, and celebrities going into one would you sign up to go into orbit? >> deal. >> i'm with you on that, deal.

>> you won't wear normal socks, but you'll go in a spaceship >> i don't understand your hype thet c hypothetical, but deal >> deal. >> i love adventure. i love -- when do you get an opportunity to go to space when do you get -- >> i'm not with you. >> you're not with me? >> no. >> you're going to be blasted up into a new stratusphere with that boy or girl you're with do you know if it's a boy or girl >> we don't know >> we did that with my daughter. we know it's a girl, we don't know the father. it's going to be revealed in a party in two weeks >> time for one more case. >> okay. >> we got the five >> ihop dropped the p, replaced it to b. you like the rebranding? >> international house of burgers. >> deal or no deal? >> it's a deal -- no -- it's a

deal -- no -- it doesn't matter because p rhymes with b. it's not a big difference. if you bought into it, stay with it, hold on, don't sell. i'm trying to be very stock marketish. >> someone in your show says deal or no deal, you challenge them >> you know, i'd like to buy a vowel. is that a different game >> different game. come to cnbc, "deal or no deal." >> thrilled to be a part of the family that's not mine. >> wilf there's another surprise to reveal. howie, thank you so much >> a pleasure, thanks for having me >> thank you for joining us, howie, "deal or no deal" coming this fall. i'm looking forward not juiced up version >> i hope we play that again >> you said juiced up. referring to jews? me >> no. >> jude up version >> far more energized version

over the u.k. version. >> okay. >> let's get our news update, sue. >> love you howie, one of my favorite people. all right, the inspector general delivering stipging rebuke to the fbi and james comey for the handling of the hillary clinton e-mail investigation, but the report says there's no evidence comey was motivated by political bias comey disagrees with parts of the report, but respects the work they did. vice president pence stresses the trump's administration commitment to a merit based immigration system it comes in an address in the hispanic prayer breakfast in washington >> president trump put forward an immigration plan to move america towards a merit base system growing salaries putting americaning to wo ins to work. our plan is the very definition of compromise. u.s. officials returned to the vatican a stolen

525-year-old copy of a letter by christopher columbus written to the king and queen of spain after the first voyage to the americas in 1493 he describes what he found laying the groundwork for request for spain to fund another voyage you are up to date that's the news update, guys, back downtown to you >> sue we had the first game in the world cup today. failed to mention. >> i know. i don't want to spoil it for anybody. >> fine. it was sort of also a side meeting of importance implications >> absolutely. >> exactly right >> sue, thank you very much. >> you got it. up next, top consumer advocate says the mergers could help consumers and competition alike. whether other media tie-ups could hurt your wallet back in a couple

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welcome back, courts ruled at&t can go forward with the acquisition of time warner here to discuss the impact of consumers is the senior policy council for consumers union, advocacy division of consumer reports. john, good afternoon to you, thank you very much for joining us clearly, the ruling spells vertical integration, not horizont horizontal, not hurting consumers. do you agree >> i disagree, i think when you take these huge distribution networks at&t has, and now combine premium contempt, it is a classic vertical merger, but gives them the tools to create anticompetitive mischief in the market which ultimately hurts consumers. >> but, john, to be honest, the judge basically excoriated that, reviewing all the evidence and

arguments the government made and did not see that being the case >> that's fair enough, but i would say we have to remain to be seen, i think when you look at the emerging competitors in the traditional cable package like streaming live tv over internet connection, some of those are the biggest disrupters in the market place now whether it's sling tv or playstation view or at&t directv now, but if they can't get access going forward -- >> they -- >> go ahead. >> they said they wouldn't have let this go forward if it was a real possibility they would be shooting themselves in the foot they need channels carried on all competitors and people signing up for directv now he said it was not in conflict >> if the competitors are removed from the marketplace and sony decides it's not worth it to keep losing money on play station view, try to imagine that future, if consumers migrate to at and t, that

hurts -- that hurts competition, and it hurts consumer choice, ultimately, we believe the more choices consumers have, it'll lower prices and increases competition. >> john, would you agreethat today versus pretty much any time in the last couple of decades, consumers get far more premium content per dollar than in the past? >> that's something we have not directly looked at, wilferd, an excellent question offer more the merrier if they can decide, that's what we are for our concern is when you take huge distribution companies, whether that's at&t or comcast now wanting to buy 21st century fox properties, we are worried content, you know, to their advantage to make consumers come to them, so maybe they zero rate it, maybe they make it cheaper we are concerned, then, the version of a healthy marketplace where consumers, the more the

merrier diminishes >> i guess i asked the question because if one things we're in that sphere where consumers get a better deal in general over time, the media companies compete with new companies like facebook or youtube whose market share is through the roof. does that call for a regulatory focus on the new companies rather than the older companies? >> that's something washington is engaged in that right now, certainly, excitement for that on capitol hill on that and many other issues on the big board. for us, though, looking at traditional monopoliemonopoliest service providers, they have been monopolies for decades, and we're concerned about anti-competitive behavior. to your point, one of their big hedged bet is getting premium content to make themselves

relevant moving forward, we just hope that consumers are not hurt in the process >> okay. john, thank you very much for joining us senior policy counsel for consumers union. the fcc is giving a major speech on bitcoin today. up next, the man in charge of bitcoin policy and how kurp si and coin offering should be -- currency and coin feofring should be regulated. bullish on roku, we'll discuss implications coming up on the "closing bell." alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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bitcoin and other crypto currencies moving higher after ether was ruled not a security does this turn things around longer term? discussing this is bill, director of the decision of corporate finance at the sec along with cnbc's bobby pisani take it away >> thank you very much thank you for joining us your speech neither bitcoin or ether is considered securities therefore not under the purview of the sec. can you explain your reasoning >> sure, bob they are complex facts and circumstances, but when we look at bitcoin or ether and highly

decentralized nature of the networks, we don't see a third party promoter where a disclosure regime makes sense. we are comfortable in some sort of viewing these as items not regulated as securities. >> now, you also talk about initial coin offerings or icos, ways of raising money using crypto currencies. can you use a similar reasoning implying that most seem to be securities, icos, but some of them are not can you just show us what the difference is simply >> i wish we had a simple way to say this is in, this is out, as i mentioned, they are usually facts and sircircumstances test, but is there a third party here who knows more about the instrument than investors might? if that's the case, that is sort of an initial indicator we might have a securities transaction. people are buying it for investment and for a return, looking to the party for return.

then, again, that's an indication of a security if you have, on the other hand, a token that's just using the network for a good or service, and that's why people are buying it, and that service is available and up and running, not under development, you may not have a security. >> kelly here, just to be clear, does that mean if stocks did not have a third party promoter, they would not need securities >> as you know, kelly, stocks represent an interest or enterprise where there's a management team and really whenever you buy a stock or bont bond, you rely on the management team those are the third party efforts. they are creating value for you, you are passive and expect their efforts to generate a return >> but just to be clear, for example, a book of a month club that we're joining on an ipo or a golf club membership, we're not expecting financial gain there. that would not be considered a security, am i right >> fair enough if you have that system up and running. if you have someone promoting

the next golf course and is selling interest in the architect, the land, and key items are not there yet, but buy 25 memberships, that may be an investment looking for a return on that on the other hand, if you go down the road and you buy an investment or buy a membership in a club that is up and running and just use it to play a round of golf, that's probably just a good old golf membership >> you and jay clayton, head of the sec, very adamant that you are not going to change the definition of securities laws to fit this new technology. win of the points you made in the speech was the concern about the fraud that was out there in this space are you seeing significant fraud? >> we do see cases where people are trying to repackage an investment opportunity as a coin or a token in saying that somehow because it's labeled that way, it's not an investment security, and in many cases, we have seen people doing that, where the underlying enterprise

is not a solid investment opportunity. it's been misrepresented soaged up this way. on the other hand, there's promise in the ledger technology and block chain technology, and we meet frequently within the parties here trying to do something innovative, trying to help them navigate this. >> could be -- glad the sec is not coming for my book club at this point >> it might in the future, though >> don't joke, bob thank you very much. ether up 9%. >> this mystery mover raised fees, the stock revealed after we return. down 22 points on the dow, near the highs of the dow of the s&p and nasdaq back in a couple minutes

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welcome back to the "closing bell", individual stocks to watch, shares of roku or roku as kelly calls it sometimes, higher today after initiated the stock with an outperform rating citing smart tv growth driven by higher

viewership and rating comes as amazon debuts its tv cube. it's up 3% it's been a roller coaster week, of course, for media companies, but this is one of the modern versions rises today >> tried to emphasize roku >> i like it >> change the name how about the mystery stock today? it's etsy, seeing a huge jump. the craft website increased fees to sellers to 5% from 3.5% they are up 27%, trading at $42 a share now. remarkable >> should have hike that fee earlier. >> investors love it, but do sellers love it? hurt them longer term? >> we'll see in the future up 27% today meantime, broader markets are mainly up, s&p and nasdaq certainly higher, but the dow is a little bit lower, and up next, we'll be going into the close with the countdown >> and after the bell, we'll have more of the exclusive

sit-down with julian robertson, thoughts on the president and on tech stocks in a little bit on the "closing bell. >> i want watch that >> i do too. keep it here, you're watching cnbc

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minutes left to go story of the day is the ecb decision seen as hawkish announcing they would be ending bond buying program, but committed to keeping rates where they are we did see a pop in the euro numberl l initially, and well over a percent decline in the euro-dollar. dow down 1.7%. lots of hurdles in the start of the week this was one of them, including the fed and others, and yet, they are higher. here's the s&p 500 intraday, higher throughout the day, it's not a big gain, but it is not in the red at any point today, up a quarter percent. the other three, nasdaq and tech sector higher up 0.8%. dow is lower, but overall encouraging day despite the hurdles. bob pisani is here, banks near the bottom, and telecoms with a decent day

>> things are not helping out. they were before energy's not helping out we still got that rotation that's still there, so consumer discretionary, great with the retail, great with the media names that have been doing well. tech has been holding up i think the bulls should be very happy. look, you mentioned the ecb, no rate hike. that's what moved germany, and that's what moved the euro down. no rate hike until 2019. >> calm down >> important thing is, that's what moved the market. number two, look at the china tariff thing today we were expecting 1300, now they are talking about 800. less of an impact. finally, the fed, look, if you would have said nine months ago the fed's going to go from four to -- from three to four, the market would have been down much, much more, bigger, much bigger now economy is really strong, and i think a lot of people see retail sales spectacular today, and they see we can handle higher interest rates with the economy

strong again, we're not seeing a lot of volatility in the market might get some tomorrow, but overall, i'll take it. >> flat is the new up. hard for banks until next week, but thank you. there's the bell down 25 points on the dow. american axel and amnet are ringing the bells today. that's all for the first half. kel kelly's got the second >> thank you, welcome to the "closing bell," everyone, i'm kelly evans, dow down 19 points. s&p up 7 that's a healthy quarter percent gain to 2782 today nasdaq composite, how strong the session was up three quarters of 1% 7761, nasdaq and s&p both on pace for a fourth consecutive weekly gain. the nasdaq, that's a record close. same for the russell, which

added half a percent today to close at 1684. dow and s&p trying to get there. s&p, though, close, by the way, closing a tenth of a point off the record, we'll see how it shakes out if it moves around a bit. earnings are on deck, numbers from adobe coming up, and more from tiger management, including the number one pick in the tech sector that's all straight ahead. joining me today, michael santoli, nancy, and kenny, welcome to you all winner in the dow, disney, interesting this week. disney up 2% today, general electric, the laggard, and twitter in the s&p the winner. repeatedly done this since being added to the average, up 6% today, creating nearly $47 a share on the close

mylan down 7%. mike, quickly, what's the disney move telling us what's happening with the media deals dpl ye >> yeah, obviously, depressed valuations coming into the war so comcast and disney, if you didn't like the big number, you sold the stock it's two companies trying to figure out the right price to pay for a valuable asset the idea it's not a complete free-for-all and stocks came down, you have both companies out there, also, saying, look, this is why it works for us, getting receptive response, i think, for some. >> disney is not up because -- >> i don't think so. it's not going up because people write off the -- but you have to raise the probability that disney does not end inwiup with. >> yeah. comcast up 4.5% for its part having a nice session. >> three-year low in valuations for comcast based on current cash flow. it's from a level people think

the risk has come out of the core valuation right now >> flip side, nancy, also a strong day in tech tech, i think, close to an all-time high today, consumer discretionary with amazon and netflix in the same basket, same story. that sector has been weak lately, but it found footing again. >> yeah. i think investors are stretching for growth now the leading academ ining econom show that recently they are reaching for growth there were days google and facebook are up on bad news. >> talking about a 4% or upwards gdp quarter. >> absolutely. >> do people have to reach for growth can't you just turn around on every corner right now >> the gdp growth is reflective of the 69% of the economy driven by consumers, so i think we're earnings peaks potentially or soon to be, and that's one of the things that has investors reaching, i'd say. >> makes sense to that point, retail sales

number is very strong, why the growth forecasts went up it was .8% this morning, versus an expected increase of .4%. biggest increase since november. etsy up 30% today. that kind -- that should be in a state of different retailers it was not just netflix and amazon story for consumer discretionary, but a lot of the retail sector did quite well what's that telling us >> yeah. i mean, look, in the short term, i can't really answer that in the long term, i think it's telling us that valuations had gotten -- had moved too much in the other direction. that the consumeris well-healed, and debt is manageable, and that, you know, just like with disney and some of the media companies like comcast, finally, with a good day. i don't know if you can laugh at that >> we can. we can absolutely. >> let's be honest, there was a rush of wage growth and had a good tax refund season >> yep >> that filtered through it's not as if the people are saying we are now in a 4% run

rate indefinitely, but this was a good period for consumers. >> some of the numbers we got, especially after the retail sales report, jpmorgan took the gdp forecast up to 4% from 2.75%, and amhurst under 5%, and economic advisers at 4.4%. these are -- you know, that is a strong read. i guess the question is, is it sustainable? >> well, in the near term, it certainly should be. the consumer -- the consumer figures are reflective of the fact that consumer balance sheets are extremely strong right now, consumer confidence is also at high levels, and with the tax cut, what it demonstrates the consumers spend that tax cut, and one thing making it sustainable is that a lot of the lower end consumers probably are not going to feel the benefits of the tax cut until 2019, and so that's something that might actually stretch this out a bit >> well, even though they could benefit from better wages, you know, we saw the bonus checks a lot of companies send out at

christmas time is emblematic of the move burns, but the minimum wage pushes stuff higher in parts of the country you don't think they'll benefit sooner >> well, i think, that's just a function that gets away from the tax cuts rather than the fact we are starting to see wages creep upward the aeg is still -- it's in that sweet spot average hourly earnings growing sweetly where it's not hit the 4% level that tends to pinch profits or force the fed to raise rates sooner, but at the same time, that's been trending upward over the last two, three years, really, and, you know, really what it does is benefit the consumer, and from the investor's perspective, as you see that, it points to slightly higher interest rates down the road, maybe it keeps the yield curve from inverting >> yeah. well, maybe. mike, quickly about the dollar because it popped today. it was up more than a point, which we don't see often, 95 on the dollar index >> it did. >> a lot of emerging market currencies are ugly. >> something to watch, right

>> yeah. >> you create instability out there, divergent central bank policies, u.s. economy, fed saying, look, we're on track keep moving rates higher rest of the world, not so much it's not in a critical moment, i don't think, but it's a dynamic that i think has kept, you know, our markets are absorbing all of this right now, and it's flat r week to date, but it's not out of the woods >> are you watching it, nancy? >> just in my thoughts, multinationals have done nothing, and there's been multiple contractions this earnings season although earnings have been dynamic that's some of it. the translation back is as soon as we have guidance on repatriation in april, companies started moving dollars back, and moving funds back driving the dollar up. it's here for a bit. >> all right we'll see if it takes some of the wind out of the sails. adobe earnings are out, josh

>> reporting eps of a 1.66 the street was at $1.54. beat on the bottom revenue in line at 2.2 billion looking quickly, kelly, digital media segment revenue at 1.55 billion. street looked for 1.52 there reconcerning revenue grew to 6.06 billion in the quarter, and digital experience, that came in at 586 million remember, the stock headed into this report already up nearly 50% year to date conference call kicks off at 5:00 p.m. eastern. we're on it. kelly, back to you >> thank you, josh down 3% in the context of one of the best, you know, runners here >> 85% up in the last 12 months. >> wow >> benefits on foreseen predi predictability of results. this is a long-running story when results come out, it does not pack a punch >> are you a holder, nancy >> i wish. many years ago

i think, too, there's the subscription revenue at 88% now. that has a positive impact on marketing spend going down, margins going up although it's expensive stock at 68 times, i think you can still get movement >> everyone trying to replicate the model now if they have not already. adobe is now down 4% do we have jabil earnings? we do. sema >> a beat on the bottom line, revenue at 5.44 billion. the wall street estimate was for 4.92 billion so strong set of numbers here. strong q4 revenue guidance, and a 350 million buyback announced, so continuing that story here, and jabil higher than 3% bullish comments from the ceo as well kelly, back to you >> okay. thank you. anything to add on that one?

>> no. >> to me, it's a significant buyback for a company like this. >> yeah, and - >> and the stock is moving >> a little. >> 2.5% pop. >> big revenue deal. >> it is the growth here part of the business is really ramping up, so that's -- that's what you want to watch because the legacy business is a low margin, slow growth business, so they are moving in the right direction. >> founded by jay and bill, jabil. hours from the u.s. imposing tariffs on china, both sides sought to avoid with it a new trade day, and kayla has the latest >> reporter: they plan to roll out of list of products subject to tariffs it's expected to include 800 products from the original list of 1300, according to three sources familiar with the matter the final dollar figure of the exports targeted, though, unclear. the president still mewants to target $50 billion in exports and may add more products, but

those are subject to comment periods and delayed. the truncated list could see tariffs imposed immediately. the president is meeting this afternoon with the advisers to decide how to proceed, but one senior white house official called it a fade to complete, noting talking points tomorrow were sent to ten government agencies and product list was uploaded to a government data base for implementation. the u.s. trade representative, treasury department, and white house did not respond to request for comment. the move would effectively end a one-month truce between the countries with china likely to retaliate. he said he sees two options, quote, one is cooperation and win of win the other is confrontation and lose-lose. china chooses the first, hoping the u.s. makes the same sensible choice of course, we're well-prepared in case america chooses the second option. kelly, but all indications i'm getting from sources, the white

house does appear ready to move ahead with the tariffs if not tomorrow, in the very near future. >> all right here we go again kayla, thank you, what do you think of this? the market shrugging it off. >> the market has been shrugging it off, and a lot has to do with the consumer news rolling through, and, again, the tax cuts are large enough such that i think what the market is looking at saying that, okay, the size of these tariffs are really rather small relative to the large boost that we've gotten from infrastructure spending and tax cuts. that said, the market needs to be careful as far as overlooking the size of them initially given there's the risk that it leads to a tiff for tat retaliation. they are playing jinga trade wars are hard winners. some of the places very exposed would be places like, you know, technology, a lot of exports to

china as well as industrials are the places that one should be careful about. we suggest looking to dividend payers for stability in this instance >> sounds attractive to you, but tricky bus it's every time we get the list, people are afraid about where it could lead, but still say, well, right now, it's small, and we're working on it >> the nasdaq belies the underlying worry with record levels, so i think this is what we see from the president, and this administration, and since the speech, there's been volatility and net decline in the markets, so the question becomes how real is this the markets stopped paying attention to some degree i don't know what do you think? >> at this magnitude, this activity when it is making a list and companies are giving input and lobbyists trying to influence being on or off the list and it's not a huge dollar in the grand scheme of things, if it's going on in the background without bluster attacks to it, without huge numbers saying i want to cut the

deficit by $200 billion, whatever the number is, you'd say, fine, that's just the way it is, you know, a constant push-pull with other trading partners, but as it is right now, the question is, is it kind of a spring-loaded situation where it creates, you know, a step function, new aggression, and right now, who knows >> does it matter working through inflation and slowing down the consumer? >> just as an justioffset to ot positives. >> including the tax cuts and other good things in the economy. thank you very much for joining us to talk about the markets today. >> thank you tech is back as the best performing sector so far this year up next, why robertson thinks tech has never been this cheap relative to the rest of the market and which stocks he really likes meanwhile, a red flag frustrate semiconductor space. we'll get the "fast money" trade coming up, and we want to hear from you reach out to the show on twitter, facebook, or e-mail us. we're back in two.

earnings just hit, josh has more on the guidance piece of it josh >> kelly, the q3 guide adobe guide here for 1 partnersh1.68 street at 1.6 is1. for the revenue guy, they are calling for 2.24 billion that's basically in line with what the street is looking for obviously, at least the initial take here in the after hours is disappointment from investors. again, the call starting in 45 minutes, kelly >> thank you, josh shares down 3% tiger management founder julian robertson joined me exclusively in a wide ranging interview talking the tech sector to the trump presidency take a listen. >> the president has done a reasonably good job. it's not a job that those of humility wouldn't approve, but it is it is a good job, and i don't think he's gotten as much

credit as he should, and -- for the job he's doing a perfect example is the north korean thing which got mammoth publicity until they got together, and it's now just dropped by the press >> what do you think of that meeting between the two leaders in. >> well, hardly been able to read anything about it, but i think it's a tremendous event regardless, and a very worthy effort, and hopefully it will do some good. >> and going back to the job on the economy, this president, the tax cuts passed, helping corporate earnings can it last? >> oh, i think it can last i think it's not only helped corporate earnings, but it's he helped -- it's helped earnings of the middle class

tremendously i think they are very appreciative of the tax cut. i think eventually we're going to, you know, have to have some restrictions, but for a while, things should flow along beautifully. >> would you elect this president to a second term >> i think this president needs a better demeanor, more humility he should be more of a moral standard bearer for the nation, but as a chief executive, i think he's done an excellent job. >> all right what do you think about the federal reserve right now? there are -- we talk about interest rates going higher. should they be more aggressive i mean, look how low -- you talked about how good it's been for the middle class and how low the unemployment rate has been are they getting behind the curve here >> i don't think so. i think they are doing a very good job with this thing i just hope they won't be overly

frightened when their policies cause a slowdown, some slowing >> how far do you think we are from the slowdown? >> i think at least six months and hopefully two years. >> do you think things look as frothy, especially in tech stocks as they did in the ''90s? >> that's one thing where i differ from the rest of the world. i don't think the fangs or the tech stocks are frothy at all. i think relative to the rest of the market, never have stocks been this cheap. this is one advantage an old goat has back in the '80s, a firm i worked for, peabody, had sensing called the golden fingers and the nifty fifties, stocks that

sold from 50 to 80 times earnings there was a huge amount of them. none of the caliber of google, facebook, and microsoft, and those companies. >> coming out of silicon valley about to go public, uber, their growth in ways are already slowing. are they companies you are eager to invest in publicly? >> i just don't know that much about them i think air b and b is successful as startup company. i'm not sure that's true -- i'll look at them when they come to bubble >> do you think they took too long to go public? >> i can't judge that. >> meaning, do you think the public's -- how quickly facebook grew since listing are people missing out on that opportunity because now they stay private for so long these days >> i love facebook, and i'm

going to take a hard look at uber when it comes, and, you know, a very hard look at also the others >> what about amazon specifically >> i'm a hold out on it. i don't know it that well. >> it's not made a lot of money in the past. >> well, it took a lot of money from the shareholders. >> yeah. doing extremely well if interest rates go up, is that to the tech names and how well hay are doing? >> well, it's somewhat of a threat to the economy and all of that, if interest rates go awhile, but likelihood they are not going wildly up, and we'll be able to live through this the reserve is smart to raise interest rates going to continue to raise them

for the next six or seven months, and i think it looks pretty good. >> thanks again to julian robertson talking his thoughts he still loves facebook, mike. >> yeah. >> amazing he thinks tech companies including the highly valued ones are a bargain. >> relevance was he is criticized for sitting out the last tech boom, and rightly so i agree with him in terms of the types of companies that are now leading the nasdaq and whole market now versus back then. favorite data point is aol and billion dollar valuation, 20 million subscribers, no earnings facebook, 550 valuation, 200 billion users, and 16 billion in profits last year. >> which is why, frankly, you don't hear about analogies between now and the late '90s. >> it's nothing similar. theconcentration is getting there. the idea they can't stumble down

the road is maybe -- >> more like the nifty 50s like he said, and there's not 50. >> no. not a crazy extreme. >> were there 50 stocks then >> i think initially, that's like late '60s, early '70s, and there was a few brokers list, but yeah, close to 50. >> wow apple closing a loophole making it harder for law enforcement to access information on phones. debating whether the company is making a big mistake choosing that privacy over security first, one wall street firm sees danger ahead for semiconductor stocks. are they taking prits omoffr what is a hot group? stay with us you always pay

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a new report points to potential trouble on the horizon for chip stocks saying, quote, not only has global inventory spiked, but the rate of change surpassed industry sales harbinger of relative price underperformance for chip stocks, guy and brian are here one day they are up too much, them down, so is it time to sell out of the sector? >> freeman is about to walk through the shot, runs to nasdaq, and stopped like because she saw us

she's the best i digress. so the death cross things i hear about all the time, i read that as well. coaching point, the question is this, the valuations, and there's a couple chips that make sense to me. look the the move that amd had over the last month, month and a half after the there was a sell rating on $7.50 target on it it's gone from $9 to $16 reversing course, we were wrong and they were upgraded although there's death crosses and harbinger of bad things -- >> thank you did you say "hat companies"? >> yes ask mike turn the mike after bk talks >> he knows what you're talking about. >> he does you don't. >> i don't know. what are you talking about with the chip space >> i'm googling the word harb

harbing harbinger. i think in the chip space, there's a growth area, talking about the wafers coming out, that, to me, is an upgrade cycle. we own a couple nvidia, taiwan semis. not only in the mining side, but also, apple, all the other companies want chips you have the demand and relatively limited supply, that's a bk way to invest. >> you, the producer, and trump all have the same birthday >>that's right >> happy birthday. >> along with the american flag. it's flag day. thank you very much. >> and the united states army's birthday today >> mike, tell her what the hat company is >> i have to start at the point if you know who costello is? >> yes, we do. that's the answer? >> absolutely. >> i know my dad is at home screaming at the tv.

>> i don't know what happened along in your early youth or something, but you missed, like a whole swath of things. >> and now i stopped trying. >> you're permitted not knowing the guys who have been dead a long time. >> disagree, disagree. >> if you interview freeman, we look forward to that, and if not, she can jump in the shot any time thank you for joining us >> see you later >> guy and brian, the birthday boy. coming up, a top technician with three stocks he says are a buy at the record highs at 5:00 p.m. eastern. dow closed 25 points, others were positive, record highs today, nasdaq paced by media and tech stocks, up nearly 1%, 7761. time for a news update now, sue? >> hello, kelly, and it's my producer's birthday today. it's a popular day this is what's happening at this hour, everyone democratic leaders call the policy of separating migrant

children and parents at the detention centers along the mexican border un-american and barbaric the house minority leader pelosi accused the trump administration of planning the separation >> have any idea the impact on families and on children well, maybe they do, maybe they don't care the fact is they should know and list this policy that they have just put -- that they put down they have. cooking it up for a while. >> secretary of state mike pompeo heads back to the u.s. after briefing officials in asia on president trump's summit with kim jong-unand stopped in seoul to debrief south korean and japanese diplomats before going to china to meet with president xi the operate of tokyo-disney is planning a new expansion of the sea park they will turn 150,000 square foot parking lot into a new

area, which opens in 2022. it will cost $2.3 billion. it is rumored to have a rapunzel tower and anna fortress. there's the tower. there you go that's the news update kelly, back downtown to you. >> holy moly, thank you very much here's the other big stories of the day now with the rapid recap. >> cnbc's parent company, comcast, making a $65 billion all cash bid for 21st century fox. >> this is not about duplicating net flick. this is, okay, we're a well-run vertical integrated media company in the u.s., successfully made several large accusations that have built comcast. let's expand >> the sustained convergence of

inflation comets in the period ahead. >> we're in a good position. all that said, it could happen tomorrow and, you know, the economies are fragile. >> i don't think the fangs or the tech stocks are frothy at all. i think relative to the market, never have stocks been this strong >> boring company won a bid to build a high speed train to connect downtown chicago to o'hare airport >> looking from musk's perspective and from the mayor's perspective, this is a win-win >> i thought it was interesting how the mayor said about musk, look, he's done it in autos, done it in space, he's the real deal >> sure. >> every day, we debate, is tesla the real deal and did they deliver. >> right not looking to ipo the tunnel, this whole transportation line if they are going to do it and raise the capital to do it, the

city does not have to be on the hook for it, no doubt. he's going to encourage it don't mock these big things. >> no. i agree. as high in the sky it is as, i want to see it everywhere. baxter international with a rally this year. the company's ceo is going to tell us whether the president easter riffs and plans to lower drug prices hurt his bottom line first, though, whether apple is rd f l the right move making it haeroraw enforcement to gain access to information on iphones. we'll be right back.

welcome back, plans to close the security loophole in iphones. this allowed law enforcement to hack into lost iphones that offer assistance in solving cases. this prompted criticism from some lawmakers senator cotton said, quote, if apple is willing to store chie naez customers' data on state owned servers, it should be more than willing to cooperate with valid warrants from u.s. law enforcement. criminals and terrorists should never take precedent over the safety of the american people. joining us to discussion is aaron and jameel, welcome to you

both, and, orrin, is apple doing the right thing here >> absolutely. i think that apple's doing the right thing making their technology more secure companies have a responsibility for their millions of customers around the world to continue to improve security of the products, and it's unconscionable to think they leave open vulnerabilities anyone could discover out there to be taken advantage of >> sure, but, jameel, is there a difference of as a ruvulnerabil blocking information law enforcement needs? >> they have been doing it steadily, preventing the law enforcement from getting access to the phones. in order for law enforcement to do their job, they need access to the phones. without that law, they cannot do their job. even when they have an order from a federal judge >> yeah.

orrin, how can you disagree with that >> i can disagree with that, you know, jameel, the government talked about going dark since people stopped using morse code, and advances in technology are the great spoons to national security establishment, both law enforcement and the intelligence side of it it gives us more capabilities. it's untrue in the fact that the washington post reported the number of cases were end criminated, and one of the reasons it's great to work at national security agency like i did, there are real dangers in the world. i've seep the evil out there, but it's not something we trade our principles as americans in making the world less safe, particularly our citizens. >> isn't a principle search and seizure, if you are suspected of a crime, information on the phone to support that one way or another, why shouldn't law enforcement have access to that like they do other private property >> well, there's a difference between allowing hacks or

technical vulnerabilities or capabilities that the government does not control what you described are judicial processes and things that can be worked through the courts where it's turned over or unlocked >> right shouldn't apple allow them to maintain access to that information, having moved through the legal system in the proper way >> the challenge, again, i say there's no way to keep those vulnerabilities limited to just u.s. law enforcement a lot of smart people here in the united states, but there's a lot of smart people around the world and certainly as we discovered, it's impossible to keep them locked up away from others using them for nefarious purposes >> jameel, what is the difference in the case of your physical house, they gain access for law enforcement, but no one else can. >> absolutely not.

reality is the constitution does not say you can never read ben franklin's diary if you want to, go to get a warrant and you have lawful access same with the phones nothing new or different about phones or locked houses. law enforcement had accidents with less, 225-plus years, no reason to change the policy nowing and all apple's doing is engaging the government, making our privacy less safe forcing the government to go to outside third parties, not a federal judge and break into phones. >> what happens if they get to the point where technology says, and maybe it's because of the messaging service encrypted, the phone itself a physical barrier, where law enforcement cannot gain access. is the supreme court going to rule on this >> we've seen it happen before, san bernardino shooter's phone, it was owned by the government, the county, apple would not work with the government. ultimately, there's a mass casualty attack or a single

child kidnapped or molested, you'll see a revolt and congress forcing to take action we'll be worse off because of the legislation. the right time to do this is now when we have the opportunity in the calm moment. >> orrin, a way to build in to satisfy law enforcement and people who don't want others gaining access to information? >> well, first, you know, again, the claims in terms of number of cases where it's impacted law enforcement is grossly misstated. again, i would remind everyone they talk about law enforcement and government going dark since morse code became less popular encryption is not new. it's derived in 44 b.c. by caesar himself technology advances in the long term are a boom for the types of law enforcement and national security work that make america safe >> broadly speaking, yeah. >> will not become friction.

>> jameel, last word >> deal is to craft the arm phone, the arms race is not initiated by apple, but the united states government, opening up a hacking challenge >> initiated by users who broke the law. >> yeah. totally false. reality is that onto 2014, they decided now is the time to shut everything down. they did not feel like it was unsafe then, and now we see law enforcement gets access, apple shuts it off this is a problem. ultimately, this results in legislation, and that's going to be worse for privacy better thing is to do for law enforcement and the government and private industry to work together and find a simple path forward. >> working together is the solution, but certainly weak weakening technology is not the answer >> thank you both. mike, quick two cents?

>> same questions you have is there a way to balance it >> yeah. you want the win-win like tesla and the hyperloop in chicago baxter internationalrang gh this week, climbing 70% the ceo joins us after this. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782

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almaeda, chief executive of baxter, meg. >> kelly, thank you so much, and, joe, thank you for being with us. >> thank you >> we start with the stock performance hitting an intraday all-time high yesterday. what's the biggest driver of your performance what's going right >> we've been delivering on what we said two years ago. just recently had an industrial meeting in new york, and we spoke to them about how we were leveraging our cost structure, but more so how we continue to invest in innovation, so as the company continues to deliver, our next phase is to create innovative company that can contain a well-structured cost base so we can leverage and continue to deliver the double-digital growth in the bottom line. >> analyst investor day setting longer term goals, and people are happy with that, but people already noted m&a and acquisitions you could do, multimillion dollars how are you looking at that? >> well, we look at everything we have a very healthy balance

sheet. we understand there are instances we have to play and things we have to acquire that we don't have. it's a matter of discipline. targets today are out there. hopefully they'll come about, but for us, it's about expanding creation to the shareholders if we can get this formula, growth rates are the target, and return our investment, we'll gain on positions. >> another thing i wanted to ask you about is the shortages we've seen of the injectable products like saline and things like that that were exacerbated by the hurricane in puerto rico last year it's hurricane season again. what's the status of the plants there and operations there can you ensure that does not happen again >> we're fully recovered from what happened last year, and we're very focused on the mission of saving lives. we have 2,000 in puerto rico, and we've been very specific about what to do to prevent or

minimize effect of the hurricane. we can't prevent it, but we can place our product in different locations. we have great help from the fda getting products into the u.s. we have special approval, avoid permanent to bring more products into the u.s. so we in a whole are very focused on getting through the season without any incidents and we do the best we can and we count on all our employees across the globe to do it. >> it's the spin-off a while ago, now, do you see it better to be diversified as so many in the pharmaceutical space are kind of splitting themselves up? >> i find it's important to have important products in your portfolio but not highly dependent on one specific product to hit the market or be very successful. when you look at our product launches, our innovation going forward, we have more than 150

product launches that will result in $1.7 billion in incremental revenue for the next five years, so that creates a diversification that is healthy for the company, but one that also we can count on to deliver innovation. >> all right thank you so much for being with us >> thank you so much >> meg, were you guys out there for the climbing raccoon yesterday? that was, i mean, you know, the world's attention. >> we read all about it, and i'm so sad -- >> i know, he's up there on -- i didn't know they were so sticky. anyway, good stuff, meg, thank you very much. joining us from minneapolis. wall street's big investors have a stern sse meagfor analysts that's next in today's "takeaway. (indistinguishable muttering) that was awful. why are you so good at this?

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welcome back it's time now for the "takeaway. investors getting concerned that wall street is snooping on them. it turns out wall street banks that put out a lot of research reports have taken to tracking who is reading them and how. meanwhile, hedge funds have started asking for that data accord to "the wall street journal. are clients right to call foul >> i understand why they're nervous about it every client of a brokerage house wants to know what the other clients are doing. i mean, honestly, if you see the surveys years back what do you get from your broker well, i get market color i get to know what everybody else is trading. what does that also mean you're part of the color as well >> right. >> i do understand why you'd want it not to be identifiable you'd never want to say mutual fund x is reading all about this sector aggregated >> but the banks have got to make some money off these research reports >> there's a level of arrogance that says, you know --

>> it doesn't matter >> my expertise -- >> now we know about those websites it's especially booming in the hottest metro markets. red fin says may was its fastest selling ever with homes going into contract on 34 days on average. it's only been tracking since 2010 now the average selling price was up about 6% year over year. the homes it sold went for nearly 28% over its list price the average denver home sold in just six days. the average denver transaction was just six days for red fin last month. >> obviously a frenzy in some areas. the extreme clustering in certain fast-growing metro areas, i don't know what the limit to that is. >> i don't know what to call it, you know, what it means, but it means something. >> because it doesn't seem as if it's, like, ten years ago or 12 years ago where it was really all about getting the appreciation of the house. buying it as an investment it's not really about that it's just you want to be in a very specific spot and you have to pay up for it.

>> there's plenty of small towns that wish it was true for them now like it was last time around this may not be quite as investible but i need your two cents. the university of chicago has eliminated its s.a.t. requirement. it will no longer require it for admissions also getting rid of in person admission interviews allowing two-minute video pitches instead. >> very selective schools feel they have access to this huge pool of qualified candidates and they can rely on those candidates to be creative and sort of sell themselves. i don't think it means you can't -- it doesn't mean you can't give your scores you can if you think it's going to help you. it does also show those scores were a small piece of the admissions >> "legally blonde" was ahead of its time with her video for law school up next, the big movers including a tech name that's selling off. stay tuned imagine traveling hassle-free with your golf clubs.

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tune in to the closing bell tomorrow we'll talk to bill miller. ahead of father's day, they planning something special for you? >> one of my daughters said wait, when is father's day yesterday, so -- >> she can't ask you. >> so she's being very coy about it or -- >> she's playing coy i always tried to play that card that does it for today, everybody. we'll see you tomorrow >> "fast money" starts right now. live from the nascar market site i'm melissa lee. our traders are tim seymour, david. tonight, it's the disney dilemma. the stock rising even as comcast outdoes its bid for fox. should the mouse house dump the deal plus, big climate soaring after the sec gives the green light for the crypto currencies. we'll explain. and from wall street to the crypto universe, we talk to one trader who left a high-paying job at goldman sachs to become a full-time investor in bit coin first, we start with something a little different