team his father has been on has ever done. winning friday night under coach rob, a white hat of a guy, a great coach, mac, my son, second from the left in the back row. nice win to the dodgers in the rec league undefeated. >> well-deserved thank you for watching >> congrats. >> really cool >> and the "closing bell" starts right now. i'm wilfred frost. banks preparing for stress test results. which banks could fair best? >> reporter: i'm phil lebeau in chicago. musk racing the clock for production targets and taunting those shorting his company's stock that their time is running out. buiitcoin is, quote, useles, unsafe, and dirty, according to the bank of international settlements. i have the other warnings coming up i'm michelle caruso-cabrera in for kelly evans

the ceo of ubs in the financial services industry, not a pretty picture. find out why as the "closing bell" starts right now good afternoon, welcome, everyone, we'll get to the stories in a moment, but first, a warm welcome to michelle good afternoon to you. >> pleasure. >> thank you for joining us, kelly is back tomorrow let's check in on markets, first of all, the dow coming back after being down 264 points at the low of the day, which is pretty much at the open, the s&p and nasdaq both down for the third day in four, but we are down much less than we were at the top, dow down .6%, and a third percent at the s&p >> let's get to bob pisani bob? >> well, i think -- i love this animation. michelle, you've known me for a long time, you tell me if my hair is gray >> i love that animation >> you'd tell me too >> i love it and envy it

>> grasso would tell me about the hair you know what happens in the business if the hair gets gray trade is a big issue -- thank you very much, get rid of that trade is a big issue here. important thing, where are the markets going here upright, pushing on 2800 we're not falling apart. the trade, the second tariff issue, the second list that's out there is a big worry, not the one we got now could be more coming here, raw term costs are up, inflation issues, and i want to know what's going on with the dollar trade. that's a problem for the multinationals and emerging markets. here's the trade name. that's not bad only at 147 and change at the low at the open, so this is not a terrible mess here consumer staples are the problem. minor rally friday, they said, they'll rotate no, guys, that's not happening structural problems here with the companies, and i don't expect them to rally here. tech is the help here. all the big cap tech names rallied ten minutes after the

close. they go straight up here that's what helped turn the market around and why we hold on so well. same with oil. see what happened over the weekend? friday, a big move to the downside look at this, moved 5% in less than two trading days, and right at the open here, rallied big so all the big exploration and production names moved to the upside, so all the big names rallied today. remember, we got that big opec meeting coming this week nice moves up. i want to note the russell 2,000, trade an issue. look at the outperformance here, just this quarter. there is your russell 2,000. there's the s&p 500. this is about a 6% difference. 11%versus 5% trade is obviously an issue with the small caps doing better than the big caps finally, we pointed out market head winds and important thing here is i think so far, we are 3.5% off the old historic highs. >> yeah.

for all the hammering over trade, we're still doing well considering. if you look at it from a year ago. thanks, bob. >> okay. >> nasdaq trading lower for the first time in four sessions, well off the lows. we are going uptown to see the movers there >> the real animation in the market today is the small caps are the small caps rather. the russell 2,000 hitting a new all-time high this morning, a fresh one as the nasdaq and nasdaq 100 are fractionally off their all-time highs from friday they are really getting that boost, that people are looking at small caps as a safe haven, more u.s.-based kind of firms. that said, there was a number of all-time highs today in large caps including facebook. facebook and google have been -- or alphabet, were the laggards among the large caps in taking out all-time highs from the winter and spring. facebook, today, finally with a

new all-time high. still, look at how this is year to date, up 21% or so, and that's lagging some of the other bigger names such as amazon. today, though, facebook and google are seen as continuing to dominate when it comes to digital advertising. both of them, today, among big winners. take a look at alphabet. it stopped higher today as alphabet takes a stake in jp.com that is the real laggard in e-commerce in china compared to al alibaba, but google becomes the second company to take a stake in that in the u.s., and walmart with a small stake as well, and jb.com is a member of the nasdaq 100 today, not the best performer, but now positive on the day. among the other winners, losers today, though, biogen a big loser today, and intell a loser

today with a downgrade capital said they saw slower service sales for intel, but chips overall today are wiydeidn after being the big winners, rotation in the sector of tech itself, and tesla the best performing component of the nasdaq 100 musk warned the shorts they only have about three weeks to go, he says, before they have to cover. he promises big pain we'll see. phil lebeau has more on that, and, wilf good luck tonight as england goes in on the world cup. >> thank you we need it kicking off the second half right now, and it's 1-0. sorry. >> amazing you can stay focused. >> well, i'm struggling. anyway, thank you very much for that, bertha meantime, markets around the globe on edge as tensions flair between the u.s. and china, and kayla has the latest in the trade battle >> reporter: one of the reasons why the market is on edge today is because, yes, the u.s. and

china went head-to-head on trade on friday, but there's not really been anything that's happened since then, and that's worrisome to the markets because there's a lot that would have to happen in the next three or so weeks to avoid further confrontation with china or with the g7 allies. you heard bob talk about the second pair of lists, which could be implemented in a little less than two months time. here's all the things that are on our list of things to watch first, end of the month, could see treasury investment with china, frictions, increasing tensio tensions you could see retaliatory tariffs from china, eu, canada, and mexico all go into effect at the beginning of the line. of course, july 6th, potential effective date for the tariffs that the first round of tariffs, i should say, the white house announced on china at the end of last week. last week, the "new york times" reported that the council of economic advisers, essentially

the white house's in-house economic research shop, found that tariffs would actually harm economic growth. this morning on "squawk box" kevin hasset was asked about it and acknowledged they could be hurtful if the u.s. economy were not so strong. >> yeah, uncertainty over it right now is something that definitely is seen, and, you know, second quarter gdp now well over 4%, so you're right, right in the middle of the financial crisis we added uncertainty how are the negotiations going to work out, that is harmful, but right now, the economy has a lot of forward momentum >> reporter: with weeks for all the trade deadlines to kick in, focus in washington turned to immigration, which has new urgency as that zero tolerance policy by the trump administration caused an increase in the separations between children and adults that have crossed the border illegally.

you have several republicans prominently distancing themselves from the policy democrats speaking out of course, there's legislation on that front that could move this week. we'll see what gets done on that front, and what the administration does on trade from there guys, back to you. >> thank you very much kayla with the rundown in washington seems to get longer every day. we have jim conn, steve grasso, and rick santelli here in chicago. gentlemen, good to have you here steve, trade hurting the market? evidence in specific stocks that tell you investors are worried about trade? >> look at the steel sector of the economy, commodities, now, you're saying do i see real evidence that trade is the reason for it? >> yeah. >> the answer's no >> deere, boeing - >> the answer's no effects on the stock, yes, i see effects on stock, what people normally do, sell the stock or

buy the stock, depending what reactions should be with the trade implication, but we don't see anything because we've not seen anything yet. there's no fat in it there's no real meat to it yet we're just chewing on headline the market's been chewing on the headlines for quite some time now, so i have not seen anything new. kayla said we sold off friday. nothing new. today's monday, selling off again, but i could make the case that it started weeks ago, if not months ago, and have not seen anything yet. >> selling off trade headlines, is that a buying opportunity >> the opportunity is more of a drizzle. that's in the small cap verse large cap number the outperformance of the small and large cap is impressive, almost 6%, and it's going to provide you a little bit of protection, and right now, the sort of trade war we're having is a drizzle if we end up in a tight bund and the trade war is full bore, that umbrella will not help you it will affect all aspects of

the market, and i think that people should be concerned because the things escalate quickly. it's, you know, little, little, little, and then all the sudden they escalate, and you see the market off 5% or 10% easily very quickly on that type of escalation right now, not a lot of concern, but we are watching for escalation because escalation can be very damaging to the economy as a whole and also to stock prices in familiparticular >> rick, are there concerns in the bond market about trade as well what is the bond market suggesting talking about outperformance of the small caps >> i couldn't get close enough to the treasury market to make an observation regarding any issue moving it today it was steadily as she goes. all maturities are basically unchanged on the day the curve still the flattest since the summer of 2007 dollar index is highly unchanged in a lofty level, similar to interest rates short answer is no

i understand i think steve grasso made the definitive point of the afternoon. it's not that we can necessarily look to the economy and extract fundamental quantitative measurable data points as to whether trade issues or foreign policy issues or domestic immigration issues are moving the market there's no way to tell that doesn't mean that investors don't look at headlines and make trades based on what they think. the uncertainty in the situation and up at when we finally get more data. with regards to trade, you know, biggest problem is bvious. you know, economists don't like the notion that trade deficits are symmetric to get into this, but i don't think minimum wage is a good metric to get into to help people who need help. in both cases, there's actual issues beyond how you get into them that's worth doing things like cross benefit analysis on, which is that in your sound bite there? we don't know how it's going to

turn out even the equity markets, which i'm sure some of today's downside has to do with the issues, certainly does not seem to be the biggest issue as we still are hovering the 25,000 in the dollar >> stick with us coming back to the exchange in a moment we have a market flash on game stop that's at hq, dom? >> the reason we bring this to you because shares were briefly halted for five minutes there on volatility they reopened 7% at this point the reason why is a roeuters story saying they are exploring takeover interest. it says they hired a financial adviser to help with the particular discussions again, according to sources familiar this particular move happens as the stock lost about 20% year to date and 30% in 12 months. there was clamber in the shareholder base to unlock

value, but right now, a source from reuters is driving the stock. it's open again up 7%. guys, back to you. >> thank you very much for that. steve, reaction, dom said it's underperformed and bottom fishing, as it were? >> people with a lot of shorts in the name so you see a headline like this, it could have potential tail winds, you know, this would be huge for the name we've seen electronic arts take two, activision, that side of it, game makers with great years, and game stop had to call off the funeral one too many times at game stop so everyone was on the wrong or right side of the ball, depending how you look at it, and a headline like this makes shorts scramble and cover. >> jim, a final general market question asia down, europe down, last week, s&p flat for the week. we are down today, but not much. ultimately u.s. equities still the place to be? >> actually, look globally, emerging market equities are

more attractive. you look at u.s. equities, trading two and a half times sales, and european equities are one and a half times sales >> gdp data supports it? >> as well as rising interest rates, and that environment is difficult to support such multiples we're seeing >> does it look chunky more? >> well -- >> interest rates go up, dollar rate goes with it, and em goes down issac newton said that, right >> that is true. it is well-positioned to comet to export to the united states and export at the entire economy as it grows globally we're bullish given the low valuations in places like brazil, france, italy, as long as we don't see implosions there, you know, i think there's really great opportunities don't make it 100% of the portfolio, but something that's in there >> big if they don't have implosions, right? >> it is that's where the money is to be made >> leaving it there. thank you very much, jim, rick,

and steve. smart man, issac >> so i heard. up next, a video of a tesla catching fire. it's sparking concern about musk's electric car company. we have the roundup of the jam-packed weekend of various tesla headlines. bitcoin lost half the value so far this year and new warning from the international financial institution could smell more trouble for the crypto gold. reach out to the show on twitter, facebook, or e-mail us. they are all thearcu ptilar addresses you need don't move the "closing bell" is back right after this break what about him? let's do it. ♪ come on. this summer, add a new member to the family. at the mercedes-benz summer event.

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it's a scene that looks like a hollywood movie set. a tesla in southern california spouted flames on santa monica boulevard over the weekend it was just one incident in a headline filled weekend for the electric car maker phil lebeau has more details phil >> headlines are still coming, coming every couple hours. starting first off with the video that you were just showing

and the investigation into what went wrong with that model s driving in west hollywood on friday when it caught on fire. basically, what you have is a situation where the cause is unclear. tesla is investigating what sparked this fire, though, they do not believe it was in the batte battery. the ntsb is not opening an investigation, but sending a specialist to watch the tesla analysis to see if they learn a little something about what happens with electric vehicles when there are fires like this that's one story the other story that perhaps is more interesting to the audience, what's happening with tesla's production of the model 3. musk out with an e-mail that cnbc.com obtained friday look, we have eight days to hit the goal of 700 model 3s per day, to hit the rate of 5,000 per week he says that radical improvements are needed to ensure that output of reaching 5,000 model 3s per week. again, when you look at this situation with tesla, as you

look at shares of december ltes again today over $370 a share, there's a note that says they will hit 5,000 a week by the end of june, though, they do not believe they will sustain that rate at the end of june. that that will likely happen sometime in the third quarter. analysts, when it comes to shares of tesla, still remain overwhelmingly bullish eight with a buy rating. ten with hold rating then sell rating of just four with the average price target being $308 guys, so just toens t understan all-time high, $389 and change hit in september of last year, and now we're over $370 with tesla. >> phil, yet another headline over the weekend he's gotten religion about profitability. what happened? >> well, he's said that we need to be profitable in the third quarter. rememb

remember, call it guidance, at the annual meeting he expects them, tesla to be profitable in the third quarter, and cash flow positives, sometimes second half of this year, so as part of that, they are going to tighten the belts, lay off 9% of the nonproduction work force at tesla while also, you know, hitting this target of 5,000 per week, which they say they will hit by the time the beginning of next month rolls around. >> all right seems like there's much more urgency all the sudden compared to the past. thank you, phil. >> you bet a consumer product company takes a stand against fake follower ondisru disrupting the game. asked about competing with facebook in an interview >> technology, over time, innovators win in the long run we stay focused on the customers and continue to deliver great innovation

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welcome back to the "closing bell," a look at two individual market movers now, zillow downgraded to neutral from buy they cited valuation for the move, stock up 60% so far year to date and add to that tightness in the housing market, mortgages, and it had a good run. >> housing market, interesting today, with some of the housing data today, market broadly down, and, in fact, that's an

outperformance, down 1.5 >> considering >> anyway. another individual stock to watch. unilever tied to digital media influenc influences, earning money about posting on various products on their social media account they spoke earlier today about this topic here's what he said. >> paid on the amount of followers they have. the act of buying followers, retweeting, liking, clearly, it is deceptive practice and, you know, reduces trust in the market we won't work with influences who buy followers. we hold ourselves and brands to the same standard. use the digital platform for us for greater transparency and measurement. >> interesting to me is the fact they would have ever done that not for ethical reasons, but the fact they pay more for followers, they have to get a handle on the numbers.

>> maybe they did not realize people were just buying them instead. you can see why because you get paid for more follow ers you have >> a different line on this topic is the fact when you do get on instagram, a paid for post by a person you follow, it's harder to know whether it's been paid for or not the rules, again, on this versus tv advertising or newspaper advertising are much more loose in terms of whether, you know, you have to kind of align -- >> look into that sponsored line >> yeah. nmore to come after the brek including a big run so far this year for crude oil prices. they dropped 8% in just thpae st month. we got a breakdown of the biggest drivers in the oil market and look where they are headed next. don't go anywhere. we're back in a couple minutes whoooo.

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welcome back, major averages, dow and s&p 500 are in negative territory, off the lows, though, lower by 129 points, s&p down 8, and nasdaq, well, it was in positive territory, just barely, there you see the russell 2,000 continuing the outperformance, new all-time high again during this session >> off the lows of the day,

though, for sure time for a cnbc news update. >> immigration action at the border grabbing headlines today. homeland security chief told the sheriff's association show will not apologize for enforcing the nation's laws. she tweeted out that we don't have a policy of separating families at the border period. the department faces withering criticism here for separating children from parents entering the country illegally. >> this department will no longer stand by and watch you attack law enforcement for enforcing laws passed by congress we will not apologize. >> the applause there. four people confirmed dead from the earthquake in asaka, japan the quake injured 300 people, buildings damaged, many homes now without gas and water. apple will soon have the ain ability to share user location data with emergency services if calling 911.

it's part of the operating system due out in the fall, but only available in the united states because we have 911 that's the update at in hour michelle, back to you. >> makes sense thanks time for the quote of the day here on "closing bell," i sat down with ubs group's ceo and this is what he said about how artificial intelligence impacts financial service jobs >> if you say in ten years time, you are running this, which is hopefully not the case, you'll see huge reduction of staff in financial services because there's still a lot of people working in a world where they don't touch blinds or doing repetitive work or where the processes are not yet using fully technology, and, therefore, you have to expect a rationalization of this count. i think that also our client advisers are going to be more and more productive. they are going to be able to serve more clients thanks to our

artificial intelligence technology that helps them to be more proficient, more smarter, more reactive to clients' demands technology will help to grow to the next efficient, bu it's leverage by the ecosystem around you and more efficient in the way you operate. >> the point unless you're in that job that's actually the human, actual adviser, anything that's automated likely will, and so you're going to see reduction in employment in the industry >> mentioned it, though, in relation to the client based jobs as well >> productive, but fewer ne needed this is a theme that's been mentioned before, in fact -- >> see it here >> we see it here, of course >> right >> jpmorgan opening a few new

regions in general, the total definitely cutting branchs what else the key topics more interest rates or political risks? >> concerns about what would happen with trade, increase in rhetoric does a country go too far and have a destabilizing event ultimately, a rapid rise in u.s. interest rates is his concern among many people in the world think that's a key issue >> absolutely. great stuff with that. we have got just under half hour, 25 minutes left to go before the close we are near the session highs, but that is a decline of half a percent for the dow, and the nasdaq is flat and s&p is down a big warning on crypto currencies and why it is an environmental disaster square is becoming the firm to obtain the new york state cryptocurrency license that's next.

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welcome back to the closing bell we've got over 20 minutes left of trade,ing d indow down 122 p. there's the s&p sector heat map. energy bouncing back, but worst performing sector last week down 3%, and at the moment, we've got telcos at the bottom down 2% any report from the bank of international settlements saying crypto currencies are unstable and vulnerable to price manipulation we are digging through the report and have the details. >> 24-page report claims these currencies will never reach mainstream status saying they are highly volatile, lack a central body with a mandate to keep the currency stable, plus, transactions are slow, costly, and prone to congestion. they argued that the currencies are too vulnerable to fraud and money laundering processes and

raised concern over the enormous amount of energy used to mine the currencies that could, quote, overwhelm the system and bring the internet to a halt the community is fighting back today. they say the industry is still in its infancy, therefore, too early to analyze and make these grandiose projections, and gray scale investments says these services are part of a central bank not surprising they dismiss the viability of digital currencies. right now, bitcoin is trading around 6700. guys, back to you. >> all right, thanks for the rundown there. also, related to bitcoin, square shares are hitting a new high after the company got approval for cryptocurrency trading in new york state. joining us to talk more about square's bit license is brad bernie from craig holland capital group with a sell rating on square. good to have you here, brad.

>> thanks for having me back >> what do you think of them getting the license in new york? does it change the rating? does it help the company >> it does not change my rating, but it's a positive certainly in the efforts they've been making. i think everybody knows this is a payment processor and small business platform, but i don't know that everyone's fully aware of the banking as a service model that they've been building out. they certainly have been trying to get a bank charter, building out additional services. the advantage that the efforts they had in bitcoin is attracting new wallet users to the cash out and stick around and use it for person to person, and they use it for other transactio transactions that's what they are trying to accomplish they're not going to make a lot of money trading bitcoin, but attracts user base >> what's it do for them exactly? if they have the license, they provide exactly what services? >> yeah. so they can help people actually trade bitcoin in the state of new york

obviously, new york is a large state. obviously, a lot of people speculate and trade currencies there, and this helps them attract that user base to help them continue to grow. >> more broadly, considering the attractiveness of square's stock, we had brine on last week, and he was, again, talking up the growth of zell, banks online shared platform does that worry you about prospects of online payment companies like square? >> we're in the early days for person to person and still a lot of cash. still over $2 trillion of cash being transacted in the society and u.s. alone, and these opportunities are global in nature there's a lot of growth opportunity. i think the increase in competition for square is more in their core business coming from first data clover platform than it necessarily is whether zell or cash app are going to make a run at truly, you know,

replacing paypal, for example. >> the performance, two year price chart is amazing, 630% another factor you don't like a buy rating on the stock at the moment >> yeah. i've been very clear when we went to a sell rating. we said it would be a strong first half 2018. they clearly grow revenues over 50%. our concern has much more to do with their 15 times ev revenues, which, if you look back through history, few company stocks, even amazon and in google when they hit the valuations took five to ten years for the stock to get back to the same kind of prices, so i think that's a pretty big challenge, and i think with increasing competition coming from one to two year time frame, advice is take advantage of the strength and momentum that's been in the stock and go ahead and sell into that strength during the first half of '18. we're not super specific on time, but i think if you look at

competition coming, it matters. >> when did you go to a sell >> just about a month and a half ago, but we were cautious on commenting to use the first half strength it was not calling a near term trade. >> just quickly before we let you go, brad, your buy rating, top pick is paypal >> yeah. paypal and first data are the two large cap picks in the space. looking for financial inclusion globally and look for the mobile wallet spend trends taking advantage in the market, i think that paypal's got a lot of leg room to run, enormous market competitive advantage. look at clover, they will be bigger than square within 12 to 24 months. both companies, i think, have enormous opportunities and cheaper valuation. >> can we go back to the bitcoin and square topic again, which is, you know, initial reason we had you on, so, it's going to give them the opportunity to trade bitcoin, at least customers in new york state.

i assume part of the idea is that eventually the people migrate to using it as an exchange or currency for exchange even though there's a lot of doubt about whether or not that's the real use case for bitcoin. have you thought about that, else in the wake of the report we heard about what the bank of international settlements thinks of bitcoin >> yeah. i'm not as negative as they are. i think there's certainly a place and a lot of foreign countries around the world for stored value for bitcoin, you know, having substantial value to different people who have different volatile governments, but i think if you think about it as a normal working class american wanting to take the volatility of their currency in their paycheck in order to transact it, i think we're, you know, maybe never, and so i'm not as optimistic as, you know, square's founder has been in regards to talking about it's going to be the currency of the internet i think that's strong the other way as well. i think the theory of sec ruling of not being a security, you know, puts block chain as the

bigger play than bitcoin specifically, and that's why we are headed with the markets over time, i think. >> got it. thank you, brad. >> thank you >> brad bernie okay we have about 16 minutes before the closing bell dow jones industrial average still in negative territory by 125 points and s&p lower than 8, and nasdaq down within 5, and russell 2,000 is higher by 7 when we come back, looking at key drivers of the oil market and what you need to watch for in the coming weeks. we're back in a couple don't go anywhere.

welcome back, we are 12 minutes to the closing bell, and markets well offer the lows, industrials at the high of the session, meaning they are spill down 95 points, but has been worse. s&p lower by 5 nasdaq positive, up nearly 2, and russell higher by nearly 8 intel falls as they were downgraded expectations for slowing growth and increased competition from amd, so that move, you can see that stock is off by nearly 3.5% >> and amd is the best performing sectors, we go back

to hq where dom is watching the big drivers. dom? >> as we talk about oil, yes, it is a big week because we got the opec meeting friday, the 22nd. as we talk about the drivers of the oil market, there's too many to list here and i don't have time to do every single one of them, but we listed some together with extras on wall street and what they say about it these are the big drivers in the coming weeks and mornnths unplanned outages escalated, geopolitical risks, it's going tor sau to be saudi arabia in the driver's seat inserting significant influence in the oil market of 2018 all eyes on what course of action is called for at the june 22 meeting in vienna. they are the driving force in the market for the next week or so secondly, u.s. producers bank of america says the fact

that the u.s. shale supply is going faster at the moment than it was in the 2014 highs is flying under the radar, yet u.s. shale presents a major market share risk to the cartels to opec because of the short cycle response nature. u.s. shale producers could be the driving force behind price action another one, price action, itself, this is tamara for nasdaq, she says if oil prices come down ahead of the meeting, which they have done, there is less need to increase production as much because idea was they increase output because oil prices were getting too heated, so, as we've seen oil prices pull back, maybe that does dampen expectations for production increases overall, but, certainly, some of the driving forces, michelle, what happens in the oil markets over the coming weeks and months. back over to you >> interesting in your report, dom, found interesting that you actually still have a debate about who is the swing producer in the world. is it saudi arabia or the second

analyst who said take a look at u.s. shale that comes on so fast i mean, there's still debate about just who drives the market >> well, michelle, you know, you've done extensive reporting on it. right now, accordsing to the u.s. government data, it's the united states that's the biggest producer of oil and other fossil fuel hydrocarbon related chemicals out there. talking about who the swing producer is, you argue it's the u.s. emerging into the role over the course of the last 10 years, even though as reported earlier today, brian sullivan said, it was a close meeting that the crown prince of saudi arabia had with pew tip at the first game of the world cup maybe there's a changing dynamic happening right now. >> is the world cup happening? i didn't know. >> oh, please, he's not paying attention, he's watching the game on over there >> i imagine >> dom, what about the dollar, though, clearly, most of the people talk about how that

dollar, oil relationship broke down a bit, but unsurprising now to see it evolve weakness given the dollar strength of late. >> true, too, but over at jpmorgan put it interestingly enough talking about the growth and developed markets out there, and whether or not there was a forecast for the dollar to rise and whether or not that was going to have an issue if the dollar seems to maybe fall a little bit more than it has, that could be supportive of oil prices overall we know because oil has been nominated in dollars there's a risk to that, of course i mean, there's all kinds of risks like geopolitical and other risks in play, but the dollar plays a big part in the discussion because as the dollar, if it hypothetically goes down in value, that provides a technical lift for oil prices given the fact that oil is cheaper in terms of the dollars required to buy it >> yep that relationship stands thank you, dom >> you got it. >> not one like newton's, but it exists >> i don't think so.

you, putin, and ubs are watching world cup. >> apparently. nasdaq trying to avoid the third decline in four days in and out of positive territory at this hour. bertha >> yeah, the composite inching into positive territory here as we close it's really all about small caps today. small caps today outperformed part of that, of course, because of trade jitters, a lot of folks looking more towards the domestically based companies, but at the same time, also a lot of talk in the retail sector take a look at the names in the russell 2,000 that today hits another all-time high. they are performing well etsy, wingstop, a lot in the consumer area. consumer names today doing well as a result of the few buys. game stop news recently, perhaps, might be taken private. on top of that, you have google units taking a stake in jb.com, the chinese e-commerce platform,

that, also, includes walmart among its stake holders. that has alphabet today on pace to close right now $4 off the all-time high close. alphabet and facebook have been the two laggards in the fang names to really put in and confirm those new all-time highs that we've been seeing in the nasdaq composite and nasdaq 100. facebook, today, finally, hitting a new fresh high as a lot of folks look at the advertising market one digital advertising firm saying that facebook and google are app to see 6% growth in advertising revenues this year they are juggernauts online. back to you. >> thank you very much for that. we have just five and a half minutes left of trade, and up next, coming back with the closing countdown. after the bell, bank stocks ahead of the fed's release 2018

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index up today trade stories over the weekend weigh on sentiment look at russell intraday, nice set of returns relative to the others, decently up, but rallied throughout the day we could have a play to trade aspect as well look at the dow intraday near the high of the day, opening down 250 points, and low of the day was 264. we rallied nicely to be down 4% at this time, and nasdaq is nicely higher. trade concern in sight today, but not too extenuated the sectors as i bring in bob pisani, interesting to see the negative effect we've got, telcos down, of course, ongoing battle with comcast and the like for takeovers weighing on that staples and health care down as well quite a few sectors suffering although we had a rally. energy up off the back of a poor week last week >> energy turned the market

around i think the important thing is that look at caterpillar i agree with the points about trade. still, clearly weighing on the market, russell outperformance indicated, but caterpillar 148 today, and look, only 147 and change here, so that's not a big decline, and well off the lows we have a number of sectors, very quickly turning around from retail, besides energy, retail turned around, very early in the morning, and we had the tech overall turning around, we thought it would be about big tech cap names, and banks were modestly positive after essentially not doing a lot. important thing here is there are sectors that come to the floor. consumer staples never made it, though >> i was about to bring it up because last week the best performing sector was consumer discretionary and now they are suffering so much. >> consumer staples with a rally on friday, and dramatically oversold, of course, the whole quarter essentially, and people

argue that's a snap of rotation, but there's a secular decline in the sector that's not oversold it's a secular story people are stretching to look to the consumer staples as a market leader >> great stuff thank you very much. just reminder that the low of the day for the dow was 264 points, down 100 at the close here s&p and nasdaq fairing better. ringing the bell here at the big board is hold on for it -- public service enterprise group, and nasdaq is the pharmaceuticals. second half continues now. >> welcome to the "closing bell," i'm michelle caruso-cabrera in for kelly evans, and wilfred is coming back the dow jones industrial average shaved off a lot of the losses we've seen earlier, lower by 100 points, and was down 200 points. just below the 25,000 mark s&p 500 negative territory, and nasdaq with a positive gain,

just barely, and russell with a strong session all day as we see continued outperformance by small caps sectors flirted with correction territory. first round of bank stress tests later this week, which banks are at risk. that's coming up there is the xlf off by .5%. here on the panel, mike santoli, nancy, chief investment officer at heartland financial, and mark lehman, president of jmp securities biggest winner today chevron and intel the biggest loser. in the s&p, cimarex the winner and biogen the loser mike, we start with you. today's action >> the market has a pattern going that the rest of the world is in a bad mood our markets marked down lower starting in the morning and just slow grind of buying nasdaq up all day, and small caps up all day, and you can

talk about that as a trade story or how the rest of the world growth softened up more than the u.s. has, but in general, it's -- we're stalled out here, pausing in the rally, but, really, there's not a lot of selling pressure so far, i still don't think it feels like a market to run away on a wholesale level, but you have to say it's constructive how we closed in the past few sessions >> the constructive tone even though we did see markets lower, s&p's not down too much at the close. >> i'm thrilled given the rhetoric great earnings season, multiples, clearly, but i think even with slowing growth and we talk about that frequently, we're well-poised for a good high deficit single digit low digit year in the s&p. happy today. >> like the deal with google >> yeah. love it. >> why >> they have been out of china, this is the opportunity to get

back an back, and it gives them the platform it's one of our largest holdings gives me hope that management is thinking the right way about how to expand globally >> tech outperformed today is that something that can continue broadly >> i think so. we've seen, obviously, some of the best performers in the last six weeks, and ipo market exploded big ipos last week that lun launched they want supply obviously, stocks work and continue to work in the second quarter reporting next month >> in the break, you highlighted there's six to seven biotech ipos coming this week. can they absorb that >> we'll see that is a lot. the managers said slow down, too much product in front of me. i can't keep up. we'll learn a lot end of june whether the street wants that many deals there's been a lot of deals

already, stocks up 400% intraday we'll see the supply they have when stocks are working, they want more. >> squeeze it in before the end of june, right >> yeah. >> that's the feel interesting to me, can the markets handle a run of ipos one indication there's an offering with game stop moving today. i mean, that's what bull markets feel like and that's the news headlines you see in bull markets, but i think we're not used to that part of it, that capital market side. >> i'll say relative to what we saw in the '90s and early 2000s, this is nothing. this is nothing. >> right >> m&a picking up as well? >> absolutely. we have a deal that was on the road and launched their, you know, in the middle of the road show, did not make my banker happy in the middle of the road show, but that's going to continue to happen as well because there's that demand where the big companies need to do acquisitions. >> before we move on to oil, nancy mentioned to the high single digit return of the s&p all year recent volatility in pullbacks

makes some people think we're not on track for that, but, actually, things are not that bad. >> exactly coming into the day, 3.5%, annual returns including dividends for the first half of the year about is over 10% this is -- because earnings growth is strong, because january was just so strong out of the gate and gained it all back and more. it had felt like it's been a labored market and has been. i mean, so far it's not really disappointing on an absolute basis. >> moving on to talk oil, which did close higher today, goldman sachs saying oil could be above $80 a barrel despite concerns saudi arabia and russia could increase oil production. nancy, your take on this clearly, opec meeting is crucial. treading water until we're past that >> i mean, i think so. the inventories are key. i also think that we can tolerate an $85 price per barrel because the tax on consumers are real, but it's not an overbearing and material as it

was at $140 or $150. we'll see. i think at the margin, u.s. produces 10.8 net, exporting, and that's so different than where we've been in the last decade it's exciting and more flexibility in the market. >> are you in energy stocks, nan nancy? >> overweight, but traditional, integrated, in the drillers, but not in the deep mlp holdings >> move in crude is good then? >> absolutely, yeah, yeah, very happy. >> in terms of exposure to energy, something you want at the moment >> well, listen, the market went up 20%, gave back half it's done with the tech market this year. probably doing fine. going to take a breath and see what it does that's a fine point to the market, fine entry point >> mike, quickly, about the relationship with the dollar, what's your take on that correlation? >> it ebbs and flows in terms of being directly linked so i don't think it's decisive factor in

terms of currencies. >> right >> one of the things in the mix, again, i see the same way where you had a big rally, and the market is behaved -- the crude market behaved like the mid-60s. people want to see is hold here if, in fact, we get to $80 but this is more than a 20% move here, nothing from 65 to 80, but it's significant if it happens in a hurry and significant for the inflation story, too, because treasury yields moves with headlines and inflation that sometimes do to oil prices. shares of disney closing lower by 1.5% following david faber's report that they plan to add cash the report follows research downgrading from sell to hold earlier today saying they are stuck in a corner when it comes to bidding assets. >> forced to pay up more, right, nancy? m&a things we talked about a few minutes ago. >> we're going to see more of

this in the content space in particular i like the way verizon is playing the deal, just upgrading their own 5g network, not in the content network, but a pipe business, a transporter. we own verizon we are out of disney i think what we do know about analysts is they tend to be decision disappointed and wrong at turning points i don't know it's a good downgrade. >> why are you not in disney >> too expensive for us. we own cheaper comcast >> uh-huh. to get more expensive maybe. >> yes, no, no yeah, so, i mean, we have in the past - >> you like the bids they are making >> yeah. i'm happy with that. i think we'll see. i think we'll see, right >> disney has to add cash in this stage >> no doubt about it disney has to add cash disney has the ability to add a lot of cash. they really have the balance sheet to go out and, you know, if you want to borrow another $20 million, the market lets them do it it does not mean shareholders

love it if they pay up on multiple rounds of, you know, raised bids, but this is where we're at, and, you know, the whole thing has highlighted scarcity value of the very, very large tv and film production assets, and that would only be exacerbated if the only guy gets smart. >> if we see the deal done by one of the two companies, does that put them in a strong position in the likes of netflix or just a small lever mover against the traditional companies? >> it's not small. it is telling you they have to find a way to get back at the netflix of the world and more and more eyes and more and more referring revenue we see that netflix wants, they get. there's a number in mind and cash in mind they'll get there soon, but c concentrate on the winners like netflix and people already there. they are playing catchup >> are you in netflix? >> we love netflix and high growth names we'll talk about tesla shortly,

but fang stocks, standing in them the last three months, whether to own them or not find your entry point. >> at the tiptop valuation, netflix in particular. >> absolutely. look at the chart. look what it did in six weeks. >> yeah. >> only problem is they put up a heck of a second quarter and something in between now and then with the entry point. at this valuation, starting a new position is tough. >> going back to comcast besides potential m&a deals, what about the threat of 5g to the traditional cable business >> it's real it's reflected in the price of the stock. that's the risk when you buy, you know, stocks on valuation. sometimes they are cheap for good reason. i do think this bid changes the subject if they get it i also think that disney is going to keep being a competitor in this, and, you know, they are just as likely to get the deal as comcast >> mike, on the deal, specifically, we hear from the likes of david faber they are

meeting to weigh this up can they ignore superior bid or ultimately have to pay now what supposedly is best for the broad shareholders relative to what they personally want >> can't ignore the bid, but they don't want to close the process. i mean, let them play it out i think that's probably what the boards going to do >> you have a big fat cash offer compared to stocks >> yeah. >> i don't see how they -- >> right cash is not going up any particular percentage years to come and argue if you are disney we create value together for years to come if we give you the stock. that's what the bankers are going to do here, making the case for each type of bid. moving on to tesla tweeting over the weekend, short sellers should reconsider their position on the stock. saying, quote, they have three weeks before the short position explodes tesla is expected to release a report in three weeks on whether or not it's been able to hit production goals of 5,000 model 3s per week.

>> there were other headlines from the company this weekend as well including musk e-mailing employees calling for, quote, radical improvements in the next two weeks, and also the actor sharing a video of her husband's tesla engulfed in flames in southern california. tesla is investigating what happened the ntsb is sending a specialist to learn about fires in battery-powered vehicles, and tesla finished the day higher for the 7th straight session this is a stock you're in. >> it is a stock -- a car i own. i mean - >> it's not caught fire. >> it has not, but it is due for a five-year update the market created 15 billion in market cap in this last runup, and i think they are getting all the benefit of the doubt tweets, you know, time frames on thing, deliver there's a lot of shorts, like he said, in the stock and want to see something different, but, gosh, he's got the short word. >> doesn't trade like fang how do you -

trades based on comments and if they hit production. >> it's a valuation that's extreme going up, you know, look what it's run up a third in no time >> and trim in any of that >> well, again, it's one of the stocks where you get entry points occasionally because he says and does things that make you nervous yet it's the car everyone wants to own. >> are you in? >> i'm out >> you were in at one point. >> yes you justified the value. we bought on relative price and got $180 a share up to $200. held until last year, and sold at $350. i can't justify the volatility and the lack of earnings, but i'm highly amused and sleep better not owning it i own it personally, but not in the portfolio anymore. >> amused by the musk tweeting something a ceo should be doing or concern you >> well, the ceo of the united states is a good tweeter, so - >> that's true

>> but, you know, he's fiesty and visionary and a little -- you said it, not me. >> my grandmother said two ears and one mouth and use them proportionally he's got ten fingers, do that proportion proportionally there you go >> step back, he's all hands on deck, memos are surfacing, saying there's a couple weeks to get to 5,000 a week, and you are stretching the very limits of the organization to produce 5,000 of your next products a week because you said you were going to do it with two, three weeks visibility, you didn't know you would do it, and now the stock is up as much as it is up, showing the squeeze on the short, so maybe he raises capital from the position of perceived strength it's all a crazy game. >> he bought some. >> it's all out in the open. >> bought some himself >> a decent chunk. >> yeah. >> a decent chunk. great stuff. >> fun >> thank you, everybody. >> thanks, everybody, mike sticking with us, but nancy,

martin, thank you very much for joining us banks underperforming, but next, whether the group could break out if they past this week's big financial stress test plus, snap's ceo and beagle sits down, how he plans to fight back against facebook for copying snap's most popular features we would like to hear from you. reach out to the show on twitter, facebook, or send us an e-mail there's all the addresses and whatever they are called we're back after this break. kees safe and happy. but if things go wrong and an employee takes action against you, legal fees to defend yourself can be huge, even if you're not at fault. employment practice liability insurance helps cover these costs. trusted choice independent insurance agents represent multiple insurance companies and customize coverage to help protect you and your business. announcer: to find an agent, visit trustedchoice.com

financial spyder etf near correction levels, down 9% since january highs. this is looking to thursday's banks' stress test results >> gentlemen, good afternoon, in terms of whether these are going to be a massive market moving event, stress tests, or do you expect the banks to pass >> very hard to believe it would be a massive market moving event because, you know, banks in the united states are extraordinarily good condition from a balance sheet standpoint, and i think the market understands and realizes that.

it would only be a market moving event if some banks failed to pass whatever the tougher standards are this year. if they fail to pass whatever the tougher standards are, but i don't really envision that happening. >> chris, do you agree >> i don't pay attention to the stress tests, the fed data made a terrible mistake making them public, and it's become a media circus it has no value analytically, so i don't spend time on it >> okay. >> i worry about deutsche bank who may get dinged now that the fed enforcement action is public i believe the "journal" wrote that story, and, wells, you know, they had their problems, i think they'll fix it, but, again, the fed is out there with stiff sanctions on banks we'll see how they finesse that. i don't know how the fed can't take action on deutsche given the fact we know what they are

doing in the background. again, this is why the stress tests should not be public it's a terrible, terrible mistake. >> goldman sachs suspended buybacks in the last set of earnings people said that's because of the stress tests once past it, could that not be re reinstated what banks do you think move needle based on the results? >> well, again, i think i would hope they never reinstate the buyback program because those programs really have significant negative impact on banks they may assist stocks for a short period, but they certainly did not help the stocks in 2018, and i would guess that, you know, people will talk a lot about whether this or that company increases its, you know, buybacks or whether it adjusts dividends one way or another, but that's not what drives the stock. in other words, the eyeballs got

to be put on what's important and chris just made the most important statement of all it's not the c-card. it's what the companies do in selling products through their business and because they are not selling products through the business in 2018 at a very attractive rate, the stocks have not done well. >> yeah. what is the problem with the stocks mike santoli, what's the problem here looking at all banks financially important in the stability board, 50% of them are down in a bear market year to date, at a time when the economy's doing okay, supposedly interest rates are going up i mean, if things do not move higher in this environment, when are they going to move >> i think the cover story is the flattening -- it's not a direct impact too much on exactly how much the banks earn, but the european banks, i do think, they are a sentiment issue if nothing else, right the fact they have -- are not as well-capitalized, you wonder about just exactly how flush the whole system is, and beyond

that, market is affected by how late are we in the cycle in thinking whether it's correct or not, the banks suffer from the debate >> chris, i think you are saying "uh-huh. >> well, look, banks had to work very hard in the first quarter to hit their numbers they put a lot of sale up, and if you use that metaphor, but they are not growing they are paying capital out to investors. the fundamental problem is they did really well last year, extraordinarily well, and it's unconditional to think they still go up given valuation. they are fully valued. utilitiesallocation, and we are where we are. >> basically, you know, you have such a narrow, narrow focus on this industry that you miss the ball game, okay? basically, the banking industry is not six companies the banking industry's composed

of 400 companies take a look beyond the six, you'd find this bank in the mid cap area soar this year, doing extraordinarily well you know, there's many banks that outperformed apple this year the fact of the matter is that since no one cares about other than investors who recognize what's going on, since no one cares about talking about anything except the six big banks, you miss the ball game. >> kind of you to air an exchange we had plenty of times on television, but - >> it's more than that >> it's also based on average trading volume that is relevant to the viewers as well >> yeah. >> that is why we talk more about big caps, but gentlemen, as ever, thank you very much for joining us, chris and dick banks, of course, with stress tests coming up thursday at 4:30 p.m. now, national outrage grows against the separation of immigrant children from their parents at the u.s. border, and

that's sparking protests against companies involved in building child detention facilities details are coming up. trade dispute with canada weighing on shares of home builde builders fast money trade on slumping stocks coming up k explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done.

outrage over the white house's zero tolerance policy separating migrant children from their families some businesses are finding themselves also being targeted by activists, and eamon javers

has the details from the white house. >> we are at the bureau here in washington, d.c., and that's right, the controversy is really blowing up waiting for sarah huckabee sanders, white house spokesperson, supposed to brief us awhile ago, has not started yet. she'll face a barrage of questions about the administration's policy of separating children from families that illegally crossed the border into the united states requesting asylum one of the entities questioning this is grab your wallet, an activist group that's anti-trump targeting some of the companies that are involved as contractors to the federal government. they say, the activist group does, these companies are involved in helping this process. look at this tweet this is from the activist group grab your wallet, this tweet is posting the actual personal e-mail address, corporate e-mail address of the ceo of general dynamics, which this group says has a contract involved in the process. we looked on federal contractor

websites and did find a contract for infrastructure services for shelter care for unaccompanied children, training and technical assistance service areas, so general dynamic has a contract in this universe here, and the activist group says that's enough to criticize the company. they say the policies of the administration are becoming so monstrous any company working with the administration deserves to suffer to some extent they need to feel the heat what did general dynamics say? we asked that did not tell us about the contract we discovered but said generally general dynamics information technology provide the support to unaccompanied minors through the office of refugee resettlement like case work support services to ensure special needs of children will met including medical requirements and facilitate family reunification after children are under the care of health and human services. general dynamics information technology has no role to play in the families separation

policy nor a role in the construction or operation of detention facilities now, i can tell you i asked shannon about this today, the activist out there criticizing general dynamics and other companies. she told ame any company at all working with the trump administration in any capacity as a federal contractor should be subject to criticism and boycott efforts, and companies working with contractors for nasa or agricultural policy because she opposes the trump administration to such a degree. that, clearly, is not going to go over well in the federal contracting community, but you see what's happening here is companies are drawn into these controversies. companies hate this. they want to be a million miles away from anything political, and in this case, there's one company dragged through the center of the grid, guys >> social media makes that easier to spread the message and for them to be targeted whereas decades ago that wouldn't have happened >> look, what we are seeing politically in the trump era is we are seeing all kinds of

companies in the industry drawn into political controversies they don't want to be near look at nfla nfl, and amazon, aw general dynamics they said they don't care whether the company has anything to do with the policy, but the fact they are working with the trump administration is enough to criticize, so they've been out there tweeting against the company and tweeting out e-mail addresses of the ceo, and that's the thing companies are finding more and more of >> thank you >> you bet how did we finish the day? dow jones off the lows, finishing off by 103 points, s&p lower by 5.75 points, and nasdaq flat, and russell higher by 8. let's get to some of the other big stories today in the rapid recap. >> immigration topping headlines coming from the nation's capital this morning >> the united states will not be a migrant camp >> the president's a great deal

maker, good negotiator, out there, very insistent getting trade deals. >> i'm worried he wants this to get out -- you know, once somebody's going to announce something that, you know, is pretty good. i'm more superstitious >> a video of her husband's model s bursting into flames tesla said it's an unusual occurrence and investigating to see what happened. >> big call on disney. pivotal downgraded stock all the way to sell from hold. disney expected to make -- they are getting the synergies that would have added value or they are going to have to pay more, and that's going to dilute existing shareholders. >> stocks under pressure off the lows, though, but dow on track for the fifth straight down day. >> i sat down with snap's ceo in his first interview since long before the company went public >> innovators win in the long run. we stay focused on customers and

continue to deliver great innovati innovation so we heard there, mike, that kevin is relaxed about trade, and sergio is concerned about trade. the market where it finished is relaxed. >> the market is surgical and localized how it expresses fears of trade, right, with boeing and caterpillar, those types of companies, but i think in general, the market collectively can do the math and say it probably is not going to be a great swing factor one way or the other unless, of course, it reaches a threshold. >> historically, you know, we thought ferris's day off, thousands and thousands and thousands of tariffs, very high level, a position from the united states that barriers were better this is a different situation. it's the president to get china to lower tariffs you don't like the methodology, but what's interesting, i heard a coup of prognosticators say,

maybe, what we have not priced in is what if he's successful? what's actually when all of this is over, we presume it will be over, there are lower tariffs around the world in europe? in canada? in china we're all better off >> right if it trends in that direction, if you can say on a net basis it's lowered bayers, absolutely. in the moment, people say company x pays more for steel today because of what's going on today and how does that affect numbers in two quarters? when it comes to the china back and forth? the kind of thing that countries might have done even within the wto setup. you just didn't hear about it because it was not named with a big pronouncement on twitter >> exactly >> it's not that different than what otherwise might go on >> we'll see if it elevates or not. time for the cnbc update now >> this is what's happening now. president trump says he's directing the pentagon to create a safe force as independent

branch of the military overseen by the chairman of the joint chiefs of staff. >> the essence of the american character is to explore new horizons and tame new frontiers, but other destiny beyond the earth is not only a matter of national identity, but a matter of national security >> secretary of state pompeo laid out a strategy for economic plo diplomacy saying they even the playing field by applying pressure when necessary. london hyde park has a giant outdoor sculpture made up of 7500 colorful barrels stacked in the shape of a tomb. it's 65 feet tall, floating on a lake, unveiled today remember the gates in central park fascinating. back to you. >> wow

>> looks cool. >> it does i didn't know about that >> thank you home builders are beat today. nothing new for the group. down 8% so far this year coming up next, "fast money" traders say whether or not this sector is a buying opportunity speaking of selloff, snap's shares down 17% since the ipo a little more than a year ago. coming up, discussingwhether snap's ceo has the right vision to turn that stock aunrod. comments from the exclusive interview earlier on cnbc. back in a couple had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

with pg&e in the sierras. and i'm an arborist since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying.

what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. welcome back, home builder sentiment fell in june according to the national association of home builders. soars lumber cost added $9,000 to the price of new single family homes since the start of last year. >> here talking the stock is guy and tim. >> hello >> hi, guy >> hello >> hi, tim >> hi. how are you? >> how you trading these in. >> i think the home builders, twa actually, it's not down as much against the s&p as people think. in fact, it's not the place that people allocated money over 12 months, but fundamentals look great. housing affordability is the issue, but, obviously, rising

banks, low unemployment, and ageing housing stock in the fact there's a lot of people feeling more confident this is not a speculative time for the housing market rs whi, s good for the cycle >> by the way, hold on, don't bark at me i want to see this haircut this is my world cup haircut got it for you. rooting for england. aren't we are? >> we talked about that before we came on air >> we did. >> you said you didn't know world cup was on >> i didn't. guy told me. i think harry snuck in a late win, outstanding guys, back to the home builders, yes, as tim said, rising rages, but mortgage rates are going up as well. doesn't help inflection point >> a lot of people think rising mortgage rates, people have been on the fence to get them off the fence, and it's a positive for home bidduilders, but what's important to me in stocks that are sideways to lower since december is the tariffs with canada and rising lumber costs hard to pass that through, so i

thinks section, home builders, untradeable here the place i go and continue to go and what we talked about for years is home depot. >> and lowe's. they are a big part of the index, and they are the big outperformers. backdrop for the guys, home depot, proservices, continues to be a bright spot and outperform second quarter 6% to 8%. >> tim, where is your haircut? >> that is some haircut on guy >> to be clear, i mean, as much as i love world cup, my hair will never follow that you know,- >> i'm not embarrassed to say. >> it's world cup season >> i didn't know it was a world cup haircut. >> the kane mutiny we call him in the club or the bar or pubs, whatever >> he knows nothing about this >> move on >> favorite player, a striker. >> guys, get behind england. they are going to go all the way this year. come on. guy, tim, thank you very much.

thank you for that >> you heard that reference there. catch "fast money" at 5:00 p.m. eastern time tony dwyer said there's a group of stocks to buy right now he's going to tell you what it is still to come, snap shares down 20% over the past year and facebook soared some 30% the ceo of snap has a plan to keep snap's competitiveness. that's next. shares of google finished higher after announcing a big push into e-commerce in china. details coming up.

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shares of snap under pressure, down 4% while facebook's is up over 12%. snap's cofounder and ceo sat down with julia borsten. listen to what he had to say about the competition with facebook >> so there's a lot of attention here on the fact that facebook copied your most popular features how do you address that when talking to advertisers >> we have to continue to innovate, and, obviously, i think one of the things clear over the past couple months is how important values are to consumers, and, therefore, to advertisers. now when people buy advertising products, they want them to work so we provide a lot of our value for advertisers, but they want to feel good about what they are buying and having a positive impact in the world. >> if the stock is down 90% from the ipo price, what does it mean

if you innovate and you are copied, how do you talk to investors about the issue? >> what we see in technology over time is innovators win in the long run we focus on customers and continue to deliver great innovation >> does that mean you continue innovating and facebook continues copying you? how do innovators win in the long run when you are that massive being copied >> innovators win when a platform shift happens that's why we invested in augmented reality. >> let's discuss more with max wolff, from the venus group, hey, max >> thank you for having me >> what do you think of what evan said? >> it's true for a story telling platform, it's nice if they were better at telling their story. we know a.r. and v.r. are coming up fast. there's a cooling of excitement around facebook. part of the reason they stepped it up on instagram, but they have to teach the world to want to spend money as much as teens want to spend time on snap it's not a new story, but one they'll get right eventually,

but admittedly, though, not yet. >> max, he said innovators win in the enof the that's true when the innovations are covered by patents. >> well, best quote on this comes from john maynard from your side of the pond -- >> heard of him. >> yes, most of us have. be solvent until you are right i think he's correct on that, but the market has to decide that what's cool and what the teens are doing, and we should remember easy to dump on snap here, but 41-plus percent of millennials are on there every day for 30 minutes we have to see the advertisers get convinced and catch up to where the time spend is. i think that's more compelling to me on the bull side, but the advertising dollars eventually go where the eyeballs are, a better story than innovators who ultimately win that's probably true as well >> mike, what's the story with the stock? >> i mean, the stock is stuck because of the reasons we're talking about here, and, obviously, it's not a path to rapid revenue earnings growth

here i wonder, though, max, asking you, what is the story you wish snap told better the story we have an exclusive hold on the particular eyeballs, this audience, or that our platform enables creativity by advertisers you can't do in other ways just exactly what are they so compelled about with their platform >> so it's a great question. i think the story i'd look to hear them say is the engagement level and intensity is high around the augmented reality and for a minu filters. in other words, getting more attention from a coveted audience than you get in the facebooks and traditional instagrams because you're not on three screens at the same time or distracted. you're in it a part of the commercial message. it's making good on that early pr promise of world of mouth and social interaction driving brand identity and sales we've seen interesting stuff there. i want to see them talk more about the augmented reality.

e-commerce utility is getting traction last, but not least -- >> what's that mean? >> basically, you can buy -- >> i'm old here. >> sorry, yeah, sorry, so you can buy directly out of the augmented reality experience look at a company's product as it's displayed in a short video or a picture, and you can make a decision to go ahead and make a purchase based on that social share. >> max, quickly, in terms of regulation, is facebook the only one that's going to face that if it arrives, or if it arrives, applies equally to snap and affects them both? >> hurts everybody, twitter, linked in, facebook, obviously, instagram, and products so the story goes here. facebook is the top card, and right now, of the major social network competitors, snap is the bottom card. shuffle the deck, top card has the highest probability of falling and highest card with the highest project of rising. that's not the corner stone, but it is a fact on the ground >> okay. max. great stuff, thank you for joining us, max wolff there on

snapchat, up .2% of a percent. google made a big bet ond. j sending both stocks higher today. the details of that investment are next

google making a big bet on jd.com and he joins us now with the details, josh. >> google and jd.com announcing this new partnership google will invest $550 million in jd.com. buying 27 million newly issued shares the chinese e-commerce site. google will put google's stake in the company at just over 1% in return, jd.com will list

products on google shopping service so that can help the company sell more products around the world as it now competes with its big rival alibaba. for google this is a way to strengthen its position in online shopping. google's worked hard to increase the number of partners available on its shopping site and through its smart assistant by target walmart and home depot and the deal allows them to put a stake in china even as some of the major services are still unavailable there. google pulled its search engine out of china in 2010 after refusing to censure search results. now making moves to strengthen its relationship with that country. so he has been making trips, speaking at conferences. in december, the company announced, remember it would open a research center in beijing. right now, it still has more than 600 employees in the country. now this big investment in jd.com too guys, back to you. >> all right, thanks very much, josh lipton. mike, remember, sergei brynn,

russian, did not like how google felt in china, because it reminded him of what it was like when he was little in moscow but eventually it's such a huge market you got to try to get in there in some way. >> that is a huge market also, just kind of low cost in terms of, you know, in the scheme of alphabet not a -- >> jd -- >> yes, exactly, half a billion dollars. also just not being necessarily for jd either. i think the message, the reason alphabet stock was up today, the message of going outside the google walls, partner, get into an area they really lacked in terms of their global breadth for a while. >> and not just investment, but less than a percent. >> jd's so huge. it's stunning how big the giants of china's internet are already. >> but it's stunning because they did have senscensorship th stopped the u.s. innovators from entering initially anyway, we'll move on. e > world cup fever has swept

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so willfred, i know you are excited about the world cup. in interest 2012, the ecb wrotes report, the effects of the 2010 world cup coverage and trading based on their data from 15 international exchanges, found when the country's national team was play, trades dropped by 45%. >> it's amazing. >> with volumes 55% lower. match events also impacted market activity. so, like, for example, when a goal happened, trading activity dropped another 5% you're not alone. >> i love this i'm not alone. but, i mean, the england match today of course wasn't during uk trading hours. but this is such a huge global event for all the big soccer nations. the extent to which it dropped, 45%, surprises me. the fact it does drop doesn't surprise me that much because it's summertime and it's the big sporting event often happening during -- >> you're not surprised. >> i'm not surprised maybe in eight years it's changed because of how much

trading might be more automated. it also tells you that a lot of trading is just opportunistic, i'm going to get into the flow because i decided to get in. i have no client telling me get in or out of the stock or this currency trade. >> the fact you can stop trading during a game tells you something. >> another time. >> all the clients also not watching >> exactly it's true. we all go to the sidelines >> we all go to the sidelines and watch anyway a nice way to get the world cup in because we should also next that during the show england got a late winner to win 2-1 >> it's like during the stanley cup, you know, everybody flushes the toilet during the commercial during the -- >> mike, we're going to bring it back though to markets the story of today is trade does have an effect but the u.s. market is resilient overall. >> it remains there, yes i think broader context makes a lot of sense kind of hovering with these small gains year to date not yet able in terms of the broad market to get above what we were at the very highs in march. but i think the right sectors are doing well if you wanted to

kind of believe this ultimate ly leads to higher prices >> consumers had been doing well broadly but had a tough day today. >> consumer staples had been very tough they had this little bit of a bounce off a very depressed level. still, even with yields down, not able to really get a lot going. consumer discretionary is one of those correct sectors you'd like to see. >> staples not living up to their name. >> no. >> i mean, there's been such a shift in consumer taste in this country. >> right. >> what do you think is the bigger driver in the markets is it trade fears or where interest rates are going >> of those two, i would think interest rates and the debate about just how far they have to go up, if, in fact, they're going to carry higher i think trade fears is something people can seize on very easily but i don't think, unless it filters into earnings estimates in the next few quarters, it's something that's going to have a lasting impact in terms of stocks suffering and staying down except on a kind of industry by industry basis. >> mike, 20 seconds left, oil's the other factor to watch for rest of the week

good sector performance. >> firmed up today in terms of crude prices and i think the sector followed as well. i don't have a strong directional feel for this. opec has a lot of conflicting motivations going into this meeting. >> mike, great stuff michelle, also many thanks for joining us this afternoon here on the closing bell. that is it for today's show. "fast money" begins now. >> live from the nasdaq market site overlooking new york city's time's square, i'm melissa lee tonight on "fast," useless and dirty. words usually heard on an episode of "the real housewives," finding their way into an explosive report from central bank about bit coin. we've got a special report plus, a hot weekend for tesla. another electric vehicle catching fire. and an e-mail from musk to employees that has wall street talking. why does the stock continue to go higher? first, the world cup -- of pain. it's not a win for the global markets around the world some o