ross he'll be on "squawk box" tomorrow morning and we'll show this iconic photo of him holding up -- now he's got the beer cans and soup can >> guaranteed he'll be asked about those cans and the cost of those cans thanks for watching "power lunch. >> "closing bell" starts right now. it's time for "the closing bell." i'm wilfred frost at the new york stock exchange. the leader of the committee that decided to replace ge with walgreens in the dow will join us to explain that decision. i'm julia boorstin at the cannes festival. disney raising its offer but is the bidding war over? i'm phil lebeau in south carolina where volvo is opening its first u.s. final assembly plant. those details coming up. and i'm kelly evans. amc is out with its own movie subscription service the ceo will join us in a cnbc exclusive. "the closing bell" starts right now. ♪

>> i had forgotten about this song that was a good thing. >> it's good to be reminded. >> no, it's not. >> it's fun. it was terrible. >> this is actually the perfect song for this story. >> i don't know if we could super-impose rupert murdoch's picture on >> welcome to "the closing bell," everybody we'll get to all of these stories in a moment. fox is the big news today. we'll show you what's happening with the shares. but here's a check on the broader markets. the dow which we'll be talking a lot about today swinging more than 170 points. down about 47. i'm going to keep going. >> let's get right to that top story. julia boorstin on the latest for the fight for fox. julia? >> that's right, wilf. fox and disney agreed to a new deal disney now paying $10 more per share which adds up to $71

billion for the fox entertainment assets disney's current bid is now a 50/50 split between cash and stock. that's about $6 billion more than comcast all cash offer made last week. bob iger saying on an investor call today that the company is more committed than ever to fox's assets more committed than it was when the deal was announced six months ago it also -- iger also saying they will get a meaningful head start to comcast in fact, shares of comcast and disney shot higher today after a bloomberg report that the doj could approve the deal in as little as two weeks. >> we've been working with regulatory authorities not only in the united states but in jurisdictions across the world now for six months and we've made a lot of progress toward obtaining the regulatory approvals that are necessary >> now, disney saying this deal does not change their plans to invest in their other disney

businesses but they plan a more conservative approach and will not complete the repurchase announced in december. now, no comment from comcast which is of course cnbc's parent company, on its next plans though there are reports that the comcast bankers have already reached out to fox there is, of course, plenty of speculation about comcast putting in another bid for those fox assets quite soon. back over to you >> our parent company, we'll talk more about it thank you, julia joining us now, ross gerber who owns disney and fox. also teague who own disney and comcast this may not be true if we put the stocks up again, but last check, they were all rallying today. how the heck does that make sense? >> well, i think for comcast shareholders, not being the most indebted company in the history of american business is probably a positive for comcast paying all cash and borrowing

all this money, i don't think is a great move for them financially. >> so you think the market is saying that disney wins today and so why is disney rallying? >> well, they're rallying because this makes disney the most powerful company in hollywood and it gives them all the ip they need to have a killer streaming service to compete with netflix and bring the company into the dij ta era in a robust manner >> last week, shares were rallying when it looked like comcast might win. it seems the investors are saying we love every possibility right now. with any of the companies. >> i don't know if disney was rallying because of the comcast bid. you know, i'm not sure all the media stocks were rallying last week which i was fine with. but i think, you know, disney's incredibly undervalued as a stock. and i think what comcast now needs to come up with another $10 billion to beat the bid and has to make up for being an all cash offer because we assume that disney

stocks worth $125 to $140 in our valuation. if i'm a fox shareholder which i am, i want my 50% in at least disney stock because in the end when we look back in a couple years, there's a lot more value going to be created by disney being a steward of these assets than comcast. >> teague, what's your take on what happens from here do you think it's fair to say this deal overall makes more sense to disney than it does to comcast. and therefore comcast shouldn't bid too much higher? >> it's interesting right now. as a comcast and disney shareholder, it's like watching our two kids fight over the same toy. it's like trevor, nicole, stop it but it validates the idea that the media conglomerate has changed so much. and content is really king and content is very valuable so if you think about disney in their ability to monetize intellectual property over a wide platform, it does make more sense to bring these assets in house at disney. think about it disney has a pandora or avatar world in disney world, they're already using spider-man and the

avenge avengers they've proved the ability to monetize these better than fox can. probably a better home overall for them because of that broad platform and their history of being able to monetize ip over changing media over the course of time. >> as a comcast shareholder, would you be shocked if they up their bids significantly and maintained it as being all cash? was italready suggesting they were going to be too endebted with the last bid? >> i was surprised they didn't put a portion of it in stock i would not be surprised if they did bid above the disney bid it's a realization from comcast's standpoint they need to evolve with the times so much of the revenue comes from internet service providing. they need more of a content library and be able to monetize across multiple platforms like disney comcast has a bit of a mouse envy so this move brings them closer to what a disney company looks like >> they tried to trap the mouse

a decade ago going back to how you'd rather own disney shares. comcast would say we've outperformed disney. and they want the international assets and think those would be a better business model. is that option not something that looks remotely attractive to you >> first of all, i don't think comcast has outperformed disney over the last ten years. i'm not sure the numbers, but disney's had a great run the bigger issues, comcast's if they use stock, it's even cheaper than disney's, it's very detrimental to the roberts' family owner stake that's why they're using cash here i think if i'm the murdoch family, why would i want cash when i want to maintain some power and control in hollywood and i can do that by having disney shares and a board seat so i really see the offer as a detriment to comcast i feel i'm kind of getting

screwed. you want to own this combined deal but there's no question that disney will be the better steward of the assets. it will be better for everybody. comcast is just a desperate lover. it's like my ex-girlfriend from ten years ago who won't leave me alone, you know? >> so we've been called your kids, a desperate lover. we get the message, guys >> teague, a final thought is rupert murdoch the big winner here >> absolutely. he either gets more money, more stock, control in the future of enterprise rupert murdoch is a big winner although iger is not too far behind they're both going to sleep well tonight. >> great stuff thanks for joining us tonight. what's the song called again what's the fox say let's get to "the closing bell" exchange today joining us michael zim, steve grasso, and our own rick santelli let's start with you, steve. in terms of the price action

we're seeing today, clearly a decent little bounceback in general is it still trade fears driving the action i know you're still surprised we're not seeing more selloff. >> i figure all of the above i do think it's still trade. i think that will dictate the near term motion in the markets whether it's higher or lower but if you look at past performance of every time we talk about trade, it's always a buy the dip opportunity. it's always load up, back up the truck. haven't seen anything that makes me change my mind. the market right now is up five handles. i think we should be up more than this. because i do believe when you saw daca today and you saw president trump have a little bit more of a pragmatic approach to it, i think that's the same scenario that's going to take place when it comes to trade i think that the congressmen on the hill are going to tell him this trade issue could be a problem for us in the midterm elections and you'll see him soften his stance.

that's good for the overall market >> sign an executive order to keep families together at the border the dow is to the underperformer look at the nasdaq today we have facebook at record highs once again the components yesterday like amazon and netflix are doing well even when the market was selling off. is that a place you still want to be? >> i think you want to be there. i think that tech has been the driver this year along with the fed. and i think value investors have issued stocks and gone to the safe pick. i agree with steve i think trade talk is mostly political theater. it could get worse before it gets better. but these have been buying opportunity. the only thing i would say on tech is there's been a -- the change from last year to this year has been much more emphasis on growth and not just growth in profitability. but straight growth. outperforming tech >> how do you see that >> if you look at some of the companies you named or don't have profit, just have 30% or

40% growth revenue nose are the ones being bought those are the ones being bit up. >> even though gdp is growing -- you don't have to look hard to find growth anymore. still people are paying big for it >> look how flat the yield curve is the sustainability of gdp is a question so maybe tech is the invasive species that is eating up all of the other industries which aren't prospering. tech is grabbing a lot of that growth >> rick, steve said moments ago all these trade fear days have been buying opportunities for equities are they selling opportuniti for the treasury market? because clearly we saw yields bid down yesterday but they're back up again today. >> i would think so. as a matter of fact, not only or even maybe it's one of the main characters being trade trade is a big deal because other countries markets yesterday were routed. and i think the contagion of that wasn't so much as investors

in u.s. market don't have confidence that it won't turn out not to be a negative in the markets. but i think they were responding to the flows of overseas markets like china that were hit extremely hard i'd personally look at interest rates. if i wasn't aware of all the news, yesterday is the first day of this month, first day of june we didn't settle at $22.9% yesterday we did my point is interest rates are just holding firm. the dollar index holding nice ground still darn close to the 95 handle i still see nothing in those markets that would suggest we're not going to have a good delivery on the final second quarter numbers, the first quarter numbers not bad either i think we're going to see a wave of growth and i do think the rest of the globe will be carried along but not to the extent that they have thought to be participating in the past >> yeah.

michael, do people really think it's over? you know, just yes the yield curve is flattening. sure cycles don't last forever they'll say great. we got to 4% gdp i'm pulling out on the sidelines. this isn't sustainable >> yeah. i think on the tech side, it's a bit priced for perfection. if you have a stumble, that could be the case. i mean, there's -- the fed i think is looking for 2020 to sort of wrap things up so i think we probably have another year and a half or so to go before we get more dicey. >> i also believe that corporate tax cuts, we've talked about this i think everyone thought it was front loaded and discounted completely in the marketplace. i would say that's not the case. it's still going to be a tail wind >> look at fedex. >> exactly for eps, for growth, for revenues overall don't discount the opportunity for another tax cut on the individual side before midterm elections. >> you think they're going to squeeze that through in the next couple months? >> i think they're going to do -- even if it's a headline risk, i would never discount anything from this

administration to keep this -- this is president trump's barometer of success it used to be homeownership. now it's the stock market value. >> that's dangerous. >> okay, gents we'll leave it there thanks still to come, tesla suing a former employee for hacking and a chinese car company opening an assembly plant in america. we've got the details on two autotories for you >> and later on amc entertainment is looking to rival movie pass adam aron is going to join us. we'll tell you about the pricing. and we want to hear from you reach out to the show and share your thoughts with us. you've got twitter, facebook, or send us an e-mail. we're ba itw ckn o.

-- while at the same time make sure we have a very powerful, very strong border and border security will be equal if not greater than previously.

so we're going to have strong, going to keep the families're together i didn't like the sight or the feeling of families being separated. there's a problem that's gone on for many years as you know with many administrations and we're working very hard on immigration. it's been left out in the cold people haven't dealt with it and we are dealing with it step by step like we dealt with north korea, we dealt with iran, we dealt with an economy heading in the wrong direction. we dealt with a lot of different problems this is one that's gone on for many decades so we're keeping families together and this will solve that problem at the same time we are keeping a very powerful border and it continues to be a zero tolerance. we have zero tolerance for people that enter our country illegally. with that, i'd ask mike pence,

vice president, if he'd like to say anything >> thank you, mr. president. i think what the president's made clear is we believe it's a false choice whether we're a country of law and order with borders and that demonstrates compassion and the heart of the american people for families by taking this action, the president will make it possible for us to continue to engage in enforcing the law against individual who is violated our law, come into our country illegally, but now we'll be able in that prosecution in the immediate days forward to keep families together as that goes forward. but we are calling on congress to change the laws in this regard and then a broad range of areas that will secure our borders and give us strength and confidence that we are once again going to take the steps necessary to end the crisis of illegal immigration in america >> i think the word compassion comes into it, but it's still

equally as tough if not tougher. secretary nielsen? >> i just thank you for your leadership, sir. we look forward and expect the house to act this week we ask them to do their job. the laws need to be changed. this is a problem president after president has dealt with for decades. this one is willing to stand up and fix it we ask congress to do their part thank you for your leadership. >> thank you very much great job. okay going to have a lot of happy people. it's been going on for 60 years. 60 years, nobody's taken care of it nobody's had the political courage to take care of it, but we're going to take care of it it's been going on for a long time [ inaudible question ] no, no, the border is just as

tough. but we do want to keep families together this is a problem. if you look at some of those horrible scenes from a few years ago, to me they were horrible scenes they were just terrible. and that was during the obama administration other administrations have had the same thing we're keeping the family together so this is it. also there may be some litigation we're also wanting to go through congress we will be going through congress we're working on a much more comprehensive bill a lot of good things are happening toward proper immigration. ultimately we want to see it done right and it will be done right. but what we have done today is we are keeping families together they can come in through an entry point. that's a whole different

process. thank you so much. thank you very much, everybody we'll the wall done. we'll get the wall done. yes? >> -- the photos of the children >> ivanka feels strongly about it my wife feels strongly about it. i feel strongly about it i think anybody with a heart would feel very strongly about it we don't like to see families separated. at the same time, we don't want people coming into our country illegally. this takes care of the problem thank you very much, everybody >> that was president trump who just signed an executive orders to keep migrant families together while saying there will continue to be a zero tolerance policy down at the border. an interesting angle today that after reports some of the migrant children were

transported on airlines away from their families, american, united, and frontier all asked the government today not to use their aircraft for that purpose even though they had no evidence that that had happened and the homeland security department responding quite strongly to that request as well go ahead, wilf >> i was going to say the president framing it as something showing he has compassion but keeps a tough stance on the border let's get reaction from eamon javers who's at the white house for us >> you heard the president say this is about compassion he said anybody with a heart would have a problem with those images of families being separated. he said his daughter and wife encouraged him to take the step he's taking today. he's signing an executive order here we don't know exactly what the text of this executive order actually is. our expectation is what it will do is allow families to remain together while they're in detention. and possibly one element of it would be to move those families ahead in line so they can get their court proceedings over

with quickly before they kick into a 20-day limit in terms of keeping children detained in those facilities near the border so we'll wait and see what the legislation or what the executive order actually says here this is the president asked if he was backing down said no, no, i'm not backing down we're just as tough on the border but politically effectively he is backing down here the administration said as recently as yesterday they didn't even have the authority to do what you just saw the president do there they said only congress could undo this measure. now the president's taking steps to undo it himself at least temporarily we'll wait and see whether there's a larger piece on capitol hill in terms of long-term legislation that can be brought in to fix this. not a whole lot of hope from long-time observers of capitol hill that they'll be able to do that in an election year this received a tremendous amount of attention. so politically maybe anything is possible here. >> yeah. as he said, he wanted to get the wall done. that remains a sticking point when they try to come to some kind of deal thank you for now, eamon javers.

>> you bet >> let's turn the focus back to the markets and to trade and of course u.s./china relations have been front and center chinese-owned auto maker volvo is opening its first u.s. final assembly plant in north carolina phil lebeau is there for us. >> right now they're doing some preproduction work here's why this plant is a big deal not only for south carolina but for the auto industry. this is volvo's first final assembly plant in the united states they will be exporting some of the vehicles here to other markets around the world and speaking of auto exports, the ceo of volvo would like to see tariffs on exported autos lowered. >> we believe in free trade. that's good for the consumer i think the harmonizization should be on a low level i don't understand why we need any duties at all. >> german automakers also in the news as the ceos of german automakers are now pushing for an elimination of a 10% tariff

on u.s.-built vehicles shipped to germany why? because they're concerned that president trump will institute a 25% tariff and that is 3% of the u.s. market as you look at shares of the german auto stocks, remember germany has basically a $22 billion auto trade surplus with the united states, guys. they want to protect that as much as possible if they can convince the president not to slap a 25% tariff on their vehicles, they will consider that a win >> yeah. phil, while we have you, also want to ask you about this news this afternoon this lawsuit by tesla now against a former employee. it seems we're learning more and more about not just some manipulation that they might have been up to in the actual plant, but stealing files and that sort of thing >> right according to this lawsuit filed against tesla by a former employee, they're accusing him of hacking into their

proprietary systems. leaking some of the information. also giving misleading reports to the media they would like access to tripp's computers as well as they're seeking unspecified damages. this is the employee thunnamed employee when he sents out an e-mail sunday night in which he said, look there might be a saboteur in our midst. he said be extremely vigilant especially over the next few weeks as we ramp up the production rate to 5,000 per week talking about the model 3. this is when outside forces have the strongest motivation to stop us shares of tesla moving up today after really kind of vacillating fairly dramatically over the last week. but guys, we have a lawsuit from tesla against a former employee. >> yeah. pretty shocking. it seems like based on the allegations anyway phil, thank you very much. phil lebeau. >> those german automakers have a similar view when it comes to brexit as well

they want free trade to be maintained they don't want tariffs to go up they export a lot to the uk. >> does that mean they're baxing brexit >> not so much backing brexit, they're backing a soft deal to be made. as it were >> a win/win for everybody still ahead, it's the end of an era after 110 consecutive years, ge has been booted from the dow we'll speak about that disecion and why walgreens is the one replacing ge for your heart...

your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. whai tell clients, etfs can follow an index,

but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

welcome back take a look at shars of starbucks. they're plunging nearly 10% today after the coffee giant gave weak third quarter guidance yesterday. announced it was closing 150 u.s. cafes along with some other steps it's taking under the new ceo jim cramer asked that ceo about all this on "squawk on the street." listen >> there have been four quarters that you have been presiding over on three of those four quarters, you have cut your forecast you're from juniper. you understand technology. you know this isn't right. how could you be down three out of four? you would be furious at yourself i don't even hear you being upset. >> jim, i said yesterday, you know, clearly the performance we've delivered has not met my expectations it has not met our shareholder expectations and i'm accountable

to fix it. now, i said that yesterday and i believe in that. i believe the plan we put out yesterday and shared with our investors is the right plan for the company. now, starbucks has been through these ebbs andflows before and we always get through them and we'll get through this one as well. >> the shars yesterday are down only 2%, 3% after this announcement jim saying he's surprised they're not down more. >> howard shultz always seems to leave at about the right time, doesn't he >> you know, they've been through this before to your point. if this is the plan, you know, to kind of say reset expectations, that's one thing maybe he'll have to come back again after all. >> his share price performance is much better >> yeah. that's true. >> anyway, switching focus, it's time for a cnbc news update. contessa brewer has that for us. >> here's what's happening right now. president trump just signed an executive order that would end the process of separating children from their families after they're detained crossing

the border illegally but the president says the zero tolerance prosecution policy will continue. >> it's about keeping families together while at the same time being sure we have a very powerful, very strong border, and border security will be equal if not greater than previously so we're going to have strong, very strong borders. but we're going to keep the families together. >> tainted melons are making people sick. the cdc says 70 people have gotten sick after eating precut melons linked to a salmonella outbreak no deaths have been reported the tsa will step up screening of powdered substances on international flights starting june 30th, passengers heading to the united states could have their carry-ons searched the substances they'll look more closely at include spices, ground coffee, protein mix, and cosmetic items that's the cnbc news update at

this hour. kelly, let me send it back to you. >> yeah. i carry some of those cosmetic items. don't know about the protein powder contessa, thank you. we'll see you later. contessa brewer there. shares of walgreens moving higher today after yesterday's big announcement that company will replace general electric in the dow. ge's got 111-year reign and it will come to an end prior to next tuesday's open. th's when the change is set to take place joining us now, david blitzer of the index committee at s&p dow jones indices. thank you for joining us >> good afternoon. good to be here. >> so what is the headline reason, mr. blitzer for this change over? why walgreens? >> as we looked at the overall index and its objective which is to be a good guide to the u.s. market, the economy is going we realize that we were somewhat

overweight in the industrial sector and underweight in consumer staples underweight in health care and we wanted a company that was well respected, well known that would fill that position and walgreens looked very good they are nationally known. in fact, internationally known because their boots alliance they're clearly a large drugstore chain. prescription and non-prescription drugs a lot of other goods and they're also doing a lot of health care or well being efforts as well. it's a broad i did based company. we feel it fits what the dow needs to continue to improve its positioning. >> obviously plenty of people in -- this has been met with sort of a shrug of the shoulders. people going, okay i guess walgreens works. they want to know why not another big tech name.

why not amazon or anything like that is amazon going to be part of the dow? >> amazon's never been part of the dow. the dow has a calculation method that's maybe not unique, but certainly not that comn in that the stocks are weighted by their price. i haven't b looked at amazon's price recently >> it's north of 1750. >> all right so it's even farther up there. if you were to put amazon in a price pointed index with 29 other stocks, it would become the amazon index >> why will they not cease as having the price change. why keep it price weighted >> first we dealt with this issue on and off certainly ever since i've been involved with the dow that goes back

the dow right now has the longest data series in financial markets anybody in the world has. we go back to 1896, we have a reasonable good idea what it's been telling us. and i don't think we want to quite throw that away without really thinking about it >> it ain't broken look at it against the s&p >> you still have -- >> the thing about the price index for the dow is it shouldn't work and yet it does if you compare it long-term in the s&p, they are the same it makes no sense. and yet it persists. >> it doesn't make any sense mathematically it makes no sense. and it's preventing you from using amazon or apple. >> when running an index, you shouldn't build an index for one stock.

every quarter there's some other stock that absolutely has to be in an index whatever the index is and you wait two, three quarters and you're relieved it's not in there. it's not the way we do it. >> the price of all these stocks are getting so high now. that to me is an interesting quandary if the dow is made up of historical companies whose prices aren't so high per share, but these days there's many companies up in several hundred-dollar share range you know, that rules out a large swath of companies for you, doesn't it >> well, what you want is the range for the highest and lowest shouldn't be incredibly extreme. it should be reasonable. and so if one puts amazon in, you're going to eliminate any stock $300 a share you're just pulling out a number or something like that it's an interesting puzzle wihih

people don't research. almost any stock that had a good period, the company would split it and for no apparent reason after the split it would go up even though it made no sense >> yeah. they say it's because retail investors -- yeah. they don't buy shares. they buy etfs and the etf price is lower that's what they say i don't know i don't know we like hearing a little bit about the reasoning anyhow >> david, we thank you for your time this afternoon. much appreciated >> thank you have a good afternoon. >> my final point, kelly what if they had put amazon in a decade ago think how distorted the dow would be today because of it highlights very clearly you shouldn't have price -- >> even though it's picked by people and it's price weighted, it still kind of works it's bizarre but i respect that. >> you're just saying it kind of works because it has closely matched the s&p. which many people say it's the superior one, the right one.

>> you do think it's the superior one >> if people are right about the s&p, then the dow -- >> mathematically, though, it's not a good gauge of performance on any given day. >> it is. >> it's not. it's not anyway i enjoyed that interview thank you to david for joining us for more on how stocks have performed after leaving the dow, check out cnbc.com interestingly, an indicator. worth the read on cnbc.com still ahead, amc movie theaters saying its model is not in the best interest of moviegoers theaters or studios. but today amc have followed suit announcing their own subscription service adam aron will joins us coming up don't go anywhere. whoooo.

when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a

sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

welcome back to "the closing bell." only 20 minutes left until the close. we are well off the session highs at this stage. the dow is down about 18 points.

going for the dow first. >> yes, you have because it's the best. >> s&p 500 up 0.25%. nasdaq and russell still on pace to hit record levels >> amc announcing a subscription plan to get moviegoers to eithr theaters answers to that when adam aron joins us next.

so, my portfolio did pretty well last year. that's great. but the market was up nearly twice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool

it lets you see how etfs measure up to one another. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full education curriculum to help you improve your skills. that is cool. and if you still have any questions you can always chat with us on facebook or call our experienced service team, 24/7. yep. just because you're doing it yourself doesn't mean you're on your own. that's great. you're still up. alright. you're still up. if i knew you were gonna run the table i wouldn't have invited you over. call (866) 296-7451. act now to take advantage of commission-free trades for 90 days, plus get up to an $800 cash bonus when you open and fund a new account. ♪

welcome back amc entertainment has jumped on board the movie subscription train announcing today it will offer a monthly plan to allow guests to see three movies a week for under 20 bucks a month. joins us is adam aron, the president and ceo of amc entertainment. >> nice to be with you, of course >> is this a if you can't beat them join them kind of thing >> you know, we've had one of these programs in place for three years in the united kingdom and germany. it's been very successful for us there. we've been looking at this for about two years. we did think now is the time to launch just prior to the summer movie season in july and august. so here we are >> adam, there's ban lot of talk

about media consolidation at the moment in particular, of course, for fox assets should some companies like yourselves be included in that consolidation? >> well, let's see for giving what people are paying for fox, we look pretty cheap by compare ston. -- comparison. but right now we're focused on running movie theaters in the movie business as an independent stand alone company. >> adam, a couple of features here the analysts like about this they say people can see the same movie multiple times, no waiting period you don't need the debit card. you can buy ahead of time. do you think you could out-movie pass movie pass here we know the company's been losing money the share price of the owner has been whacked can this work for you and can the economics work >> well, we're sure the economics are going to work for us because our economics are very different than that of some of

our competitors. we made sure that we loaded up our program with features. so you can see movies in imax, you can see them in dolby cinema you can see them in 3d you can book your tickets on line in advance. you can reserve seats. it has all the benefits of our loyalty program. so if there's a lot here in addition to being able to see up to three movies here for incredible price of under $20 a month. but the difference, the critical difference and i guess why we've been so critical of what others have been doing for the last ten months is we're priced at $19.95 and they're priced at $9.95 a month. while the lower price may sound tempting for a consumer, sometimes when it's too good to be true, it's too good to be true there's just not enough money at $9.95 a month to fund people going to see 10, 20, 30 movies a

month. and our program, admittedly it's more expensive, but there's a lot more features to it that are consumer appealing and our program is going to be profitable for us. >> adam, you know what would be too good to be true, if you add all you can eat popcorn in this. >> are you going to jack up the popcorn because of thus even more >> it's reasonably priced popcorn. >> no way. >> you get a lot of it, too, by the way. it tastes very good. >> it's a bucket >> the butter is free. no, but seriously. our program does come with lots of benefits in the food and beverage area. free refills and size upgrades we do give a 10% credit on all money spent with us good towards future purchases so there's a lot of value even in the concession side of amc stubs a-list >> best of luck with it. thank you for coming on to tell us about it on the big

announcement day adam aron is the president and ceo of amc entertainment >> we would both go for the all you can eat popcorn. >> i don't even need to see the movie. i may pay 20 bucks a month just for the popcorn. change is coming to your instagram feed what you need to know and why google could be worried about a urw feate. that's coming up on "closing bell." don't go anywhere. i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about mouthfeel. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase. in the 2018 lexus es safetand es hybrid.dard lease the 2018 es 350 for $339 a month for 36 months. experience amazing at your lexus dealer. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed

to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

welcome back as we mentioned the nasdaq having another nice session today. bertha coombs has more on what's driving that for us. >> pretty muchvething. large caps, small caps, nasdaq, nasdaq 100, and russell 2000 all set to close at record highs today. the fangs are among the stocks adding all of them at record highs today. facebook, amazon having named a new ceoto that venture with berkshire hathaway and jpmorgan chase. bioteches a second day really leading the move to the upside the strongest sector in terms of performance here and walgreens today with its best one-day gain in about five years. about the best volume we have seen for the stock in about four years after being added to the dow jones industrial average

and wilf, the back of the envelope math from robert is if walgreens were in the dow today, it would be wiping out the losses right now >> there we go >> and you know what then it would line up with the other averages so the point is proved >> there you go. somehow the math works out >> she's proving my point. >> no, no. she's proving mine i think. >> i think i win were bertha what do you think? >> i think it kind of somehow works out in your favor. it would be even with everything else today >> bertha. >> we love you, bertha >> i can't disagree with bertha. i disagree with you still. but i don't disagree with bertha >> thank you, miss coombs. bertha coombs watching the nasdaq action for us instagram hosting a media day today announcing a new milestone. josh lipton has the details. josh, which side are you on? >> he'll say the nasdaq is the one to watch >> let's start with what

instagram had to say here today at this big event right behind me here. took the stage and made a big announcement take a listen. >> i have some really big news the big news is that we are now a global community of a billion monthly actives on instagram >> facebook owned instagram. they have a sizable jump you can see here how that 1 billion number stacks up against some of the competition. now, instagram also did announce some serious product news today too. they're going to be pushing into long form videos so they announce this new app they're going to be calling ig tv brands, content creators, and regular users will be able to post videos for up to one hour nap is a big change. currently on instagram, you can post videos up to one minute the audience for original digital video that has been surging among u.s. adults, it's

jumped 60% in the past five years. instagram's move we know puts it in more direct competition with some of those rivals like youtube and snap so how is instagram going to be making money on all this no ads on ig tv at least right away but kevin talking to some reporters after the event said that's not an unreasonable place for them to end up back to you. >> josh, thank you very much for that josh lipton there. up next, we're coming back with the closing countdown. five minutes to the bell ♪

introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding]

welcome back to "the closing bell." we have two minutes to the close. let's look at the russell. again it continues its recent relative out performance to close at a record. we got a year to date chart there. you see how it -- trade fears don't effect it. let's have a look at all four of the indices. the nasdaq had similar performance today as well. it is up 0.7%. we've got the dow down to 0.2% and the s&p up slightly. let's have a good look at oil, of course, as we move into the later part of the week opec will come into focus. having a nice bounce today year to date oil has been strong but the bounce today kind of offsetting some weakness we've seen end of may, start of june

up about a percent as we approach that opec meeting half screen look at fascinating news of the merger business continuing they're all up today netflix we've thrown in for good measure because it's outperforming either way as it has done for awhile. they're going to come up as we begin to talk. what's the story of the day been for you? >> the important thing is s&p broke a three-day losing streak. industrials continue to underperform that's the overhang from the whole tariff issue i don't know if you notice, we had a mini rally when the president signed that bill to end the family separation. some saying maybe it's a new pragmatism on his part maybe that will spill over to the tariff debate. we did see a mini rally on that. hopefully. here's the important point too i think you're right on the russ e russell. remember, friday russell

reconstitution >> okeydoke. it was a good session for asia and europe today which we haven't had most of this week. all in all a dent session. s&p is higher. nasdaq and russell up the best part of 1% ringing the bell here at the new york stock exchange, energy corporation. and nasdaq, marine money kelly's got the second thank you, wilf. welcome to "the closing bell," everybody. i'm kel live evans dow dropping 41 points today the only average in the red today. the s&p added about five the russell 2000 and the nasdaq had much stronger sessions both up about 0.75% today. and both closing at records. 7,781 for the nasdaq 1,707 for the russell.

those are some headlines for you. we've also got two big names reporting earnings after the bell today results from micron. coming up the chief executive of iac joey levin joining me on set is tony dwyer and rob cox. mike is off today. welcome to you guys. thanks for being here. the big winner on the dow was disney today with all the fox stuff we'll get into in a couple of minutes traveleres the big decliner 21st century fox big today on the news and starbucks down 9%. that's a huge drop for a company that told us yesterday after the close, much worse throughout the session today. let me ask you what you think about the markets overall here >> kelly, i'm still pretty excited.

i jumped my target i think i'm the highest on the street now i'm looking for 13%. >> you think the s&p has gone up 500 points from here >> no, no, no. 3200 is my target. so it's 15% from here. yeah it should, actually. the fundamental backdrop is there. so many people are saying that the value weighs, the market's discounting the positives. i would say the opposite i think it's discounting the slowdown in the 12% drop here's why i say that. you would need some kind of financial and economic armageddon from my 160 number for 2018 earnings to be too high which means you're trading -- if you're trading at the end of the year with 160 in earnings, you're only at 17 times a earnings >> and you go 20 multiple which is how we came into this year. >> do you think a 20 multiple on the index is -- >> i do. >> is that a fair number or does that mean this whole thing has lost its mind and gone crazy and

off to the races >> if i get my target right, it's luck. what the valuation is, you got to go by the trend of the valuation. i think it ends higher >> is that a sign that everything has gone crazy? is that a bubble >> no. i went back and you know me, i'm a nerd i went back and look at valuations i called it guess the date quote on the website i found a quote from april 1st of 1996 talking about an 18.8 times valuation. how it was too extreme and too high >> all right and we know -- >> the whole nine yards. >> what say you? >> i'm like tony i kind of plan for the apom lips i have in my view -- >> y have a nker at home >> not quite but if it happens, i'm the firs one out. you know, i tend to internalize, i guess, these trade

discussions. i don't think they have to go into some horrific trade war but i don't see an end game. that worries me. i probably spend a little too much time talking to chief executives and people who are just sitting there worrying about what's going to go wrong and what's going to -- what their board is going to fire them for >> that's what's great about the market you hear on cnbc all the time, markets don't like uncertainty that's what creates opportunity. >> there's never been a certain -- yeah. >> we're a vacuum of news which makes every tweet and comment from a world leader have an o outsized impact. >> what do you think of the trade situation with all of the tariffs this week being discussed? >> much bigger sums. >> the amount of money that was burnt trying to figure out how to do a border adjustment tax and never happened earlier this year, i think the worst thing we could do is manage their money on something that hasn't put into effect yet. >> fair enough but if you own boeing right now you feel like you got to pay attention.

>> but it's not new news. >> if you own boeing and you have no idea and it happens tomorrow, then you've got a much bigger reaction. >> doesn't that come down to stock selection? if you think that's the case, you don't need to go overweight. okay, maybe not starbucks but something that's more domestically focused >> last thing to ask on this do you think that china's economy is more precarious i mean, could that turn out to be why -- >> of course i'm going to ayes because i'm the gloomy guy i would say this xi jingping has got to-- he's premier for life, president for life we're going to see some corrective measures, i think, over the next few years. you'll start to see recognition of the entire credit system. you're already seeing certain crackdowns on business in china. >> what if they have to bag out the economy? >> they could do more than you think. they can do a fair amount.

i think you'll start to -- it's less of a concern now that he's leader for life. >> if you look -- to be a nurd again, if you look at the leading indicator for the top asian five economies and obviously china and india are in there, they're actually on a sequential basis improving dramatically this is not an emerging economy that's small this is a middle class economy this is a secondary economy which is a service-based economy at 52% so i think we have to be careful to say that it's all tied to copper prices. or other manufacturers >> i just wonder how much room -- bargaining space they have how much wiggle room they'll have for the talks with the u.s. shares of 21st century fox best in the s&p big rally after disney did increase its offer for the assets that they're spinning out. it's heating up a bidding war with comcast our parent company. david faber has details.

>> somewhat surprising to a certain extent that fox was up as much as it was given we've been talking about what would be a bidding war for weeks now and the expectation that disney would come back and in fact add cash to its bid. the one surprise would be perhaps the timing as i've been reporting at least, there's a process they were expected to perhaps follow where the fox board would meet they might engage negotiations with comcast our parent company. and then go to disney and say this looks superior. what do you got? disney chose to get out in front of it. not allow the board to meet. not allow the negotiations to occur with this bid that is on the high end of the expectations of those advising comcast would have expected. but certainly perhaps within the range. but again at that high end 38 bucks a share a number of things to talk about here in the bid itself because it does differ from the previous one disney was right around $29 or so in an all-stock offer. now the new offer is half cash

and half stock so they've really effectively decreased the amount of stock that they're offering under the new deal but vastly increase the overall price and the value of the deal as you see there $71.3 billion. also a couple of other new permutations they've added a collar which has the effect of saying if disney stock declined by 10% or less, we'll conserve you that value. we'll give you more shares to make up for it and if we go up by as as much as 1 10%, you're not going to get more as well they also added to the antitrust protections adding another $250 million worth of businesses that is $250 million of ebitda that will be produced by businesses they are willing to spin off or sell should there be any trust objections all in all, a very significant bid from disney to counter the $35 all cash offer that comcast made late last week for the same

assets and the question now, of course, is what is comcast going to do the indications i'm getting are certainly that comcast is going to continue. we're going to have perhaps another round here it has the balance sheet capacity to do that. you know when they have put this down on paper in front of them weeks ago as to how this would go, they fully expected disney to come back and the question now is what will the number be from comcast, how high will it be, and will there be another round after this those are the key questions here including, of course, what comcast is willing to offer on antitrust. because we're not expecting to see the kinds of incremental increases we have recently the 35 over 28 that we got from comcast. and the 38 over 35 that we got from disney. it may get a bit more concentrated here. so one area that can be improved certainly is also on the antitrust front if comcast is willing to go even further there. so exciting times. no doubt about it. as they battle as we knew they would for this very important as

they both see it generational asset. finally, timing weiss i can tell you some questions on the comcast side will they wait to see a record date set or a proxy. or do they want to move more quickly? one would argue they want to move quickly to counter here because they also have sky in play the quicker they can sort of figure out are we going to win or lose on fox, well, the quicker they can make a decision as to how hard they want to play on sky where they already have a significantly above fox's bid for the 61% that is currently out there in the marketplace >> yeah. and exciting times for sure if you're a fox shareholder right now. rob, what's your takeaway from all of this? >> you know, it's ultimately going to come down to some degree on who's stock and who's management you want to be aligned with you can also choose cash but ultimately in this case you're getting stock

do you want to be part of bob iger's team? and i've been wrong every time i've diagnosed one of their deals. so i think of lucas film, marvel, pir. all over paid, terrible. and they completely blow it out of the water every time -- so i'm not sure -- so would i want to be part of that team and the murdochs are going to have to decide that do they want to be, perhaps, i guess the largest shareholder in the new company. and do they want to not have to pay a bunch of taxes which they'd have to do if they go out for cash then that's also going to come down to how leveraged this thing is going to be as david said, it looks like disney, this bid they're going to be at something likethree times ebitda >> that's a big number. >> but it's not as high as comcast already would be so i think it'll come down to that and rating agencies will have their view on this. ultimately shareholders are going to have to decide if this gets overheated.

>> that's a fair point >> you know what's interesting about this let me broaden it out. >> quickly >> i'm going to outthink david and rob on this deal the amount of credit that's being raised to finance all these m&as tell you the market's okay that doesn't happen. you don't get these deals done on credit. >> that sounds like something brian reynolds would say. >> exactly. >> he's very sharp on those saying it's permissive of these kinds of deals >> when these get upsized based on cash from the credit side, the game is still on >> david since we still have you here, want to ask about starbucks. the share is one of the worst performan performers on the s&p. kevin johnson says they're going to close 150 stores. revised guidance saying they're only doing a 1% u.s. comp. take a listen to some of this interview from today >> i wonder whether -- would you have been able to make the announcement you did yesterday without howard shultz planning to leave the company in ten

days is it drawing a line is it saying even though you've been ceo over a year, this is the kevin johnson era? >> this is where i'm taking the company. and, you know, whether howard's here or not, i'm the ceo and i'm accountable for that >> well, howard's not here anymore. you're in charge he's not going to be next to you anymore doing these interviews he's gone. i don't know what he's going to do does it change the way you operate? >> well, not necessarily i'm accountable for making the decisions in the best interest of starbucks d i've been doing that since day one. but this is an inflection point. >> david, how much pressure is on him now after the share performance today? >> yeah, listen. it's an inflection point not necessarily a good one i think a lot of the battle that certainly has been waged amongst investors right now seems to be is this a more mature business can they really aspire to the growth rates they've had in the past they came in last night, of course, and said we're going to have 1% same store sales growth.

you guys were reporting it on your show. also china same store sales didn't look as strong. they're going to close more stores than they anticipated in the u.s. but this larger issue seems to be about the maturity of a business and whether or not you really need to sort of change the expectations of your investor base. they're increasing the dividend, increasing the buyback but he is committed, mr. johnson, to also sticking with those growth targets longer term and saying we can revitalize we've done a few things wrong. we can get more people in the membership program from the 15 million we have now. we can get more people digitally connecting with us every single day. we can revitalize the afternoons and we can keep growing for many years to come in china and hope that on a per capita basis they start drinking a lot more coffee there. so it's an interesting inflection point and it is his company now, kelly, to sort of either sink or swim with.

>> final comment to you guys before we go on this, rob. >> i think it's a dilemma of growth on one hand china could be a fascinating and amazing place for them but at the same time clearly they've hit a maturity point here you almost think of yum brands and the way they ended up splitting kfc off. there are analogs to that. but there's this other weird overlay which we've been trying to get my head around with digital. this is drinks so how do you do that? i think that requires some sort of retooling of your whole operations, the layout, all that stuff. it's going to cost money and you can get it wrong so the fact that it's trading at like a mcdonald's pe either means you got a great opportunity in this thing or the market's completely ripe >> no, i agree 9% drop today. thank you. all day, david faber on starbucks and fox deal for us.

it's a slight beat on the top and bottom lines for micron. shares right now are down about 1.5% a little bit more than that. let's go over the numbers. revenue coming in at $7.8 billion versus $7.7 billion estimates. so a slight beat there and eps, $3.15 app penny over the $3.14 that analysts had predicted the company said its gross margins for the quarter were 60.6%. that's down slightly from a year ago but up from last quarter and the company's also made $2.1 billion in investments in capital expenditures be listening tr any color on the chips and the revenue coming from that. as you know that's been going through a boom also be looking for any guidance of course that's critical because that can speak to demand which can as we all know in this business be so volatile. back to you. >> yeah. we've been watching the chips closely on that. shares down about 1.5% tony and rob, thank you very much for joining us here

up next, we've got much more on the massive bidding war over 21st century fox assets. plus the controlling shareholder of match group w, iac, he's goi to talk about how the entry is going. and we want to hear from you "the closing bell" is back in a moment with the new chase ink business unlimited card i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about the details. fine, i obsess over the details. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase.

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.

hi! fidelity. are you two getting along? oh, yeah, yeah. [ hiss ] [ gasps ] [ birds chirping] ♪ no matter what you are they're a perfect match. the new ipad and xfinity stream app. hey guys, i'm home! surprise! i got a puppy. add an ipad to select packages for just $5 a month for 24 months. upgrade online now.

welcome back to "closing bell." we have earnings from american outdoor brands this is the company formerly known as smith and weston. earnings coming in at 24 cents thap beats analysts' expectations at 10 cents looking at the guidance, first quarter guidance for both earnings and revenue is strong however, the full year guidance for both earnings and revenue is quite weak compared to what analysts were expecting. you can see the shares have fallen back down but certainly off their highs in the aftersession hours kelly, back to you >> all right

thank you. courtney reagan. meantime, shares of disney, 21st century fox, and comcast all closing higher today fox in particular up 7.5%. this after disney today raised its bids for some of fox's assets to over $71 billion from $52 billion in the prior offer it comes a week after comcast offered $65 billion all cash for these assets joining us now to discuss which company he thinks will come out victorious in this fight is jonathan chaplin welcome to you what's your best guess right now? >> i think it's really difficult for comcast to beat disney for fox. but that doesn't mean that they're a loser in the situation at all what comcast is likely to do is push disney to their absolute limit on fox >> that was a big raise already. their price today, that's a big number >> i think it can still go higher i think -- >> how much higher do you think? >> comcast can probably go up to a limit of around $45. they committed to only using

cash they won't issue equity. if that's the case, the limit of balance sheet capacity to them would put the bid at about $45 disney can go $45.01 there's no limit to how high they can effectively bid and i think in a tie, disney wins because they're able to use cash and stock >> why is fox trading at $48 right now? >> you've got to take the $48, subtract $10 for the assets that aren't purchased >> the new company >> exactly >> this is something people need to understand. this is not for the whole company and not the news piece of it. it's just basically kind of the scripted, entertainment business, regional sports network, that kind of thing. big piece of it. then they're going to spin the other stuff to new fox >> that's right. the other piece of the story that's really interesting is once disney has bid the most they can bid for fox, it leaves sky wide open for comcast. so they're going to be sitting there having lost the bid for

fox with a boat load of resources that will make it almost impossible for them to lose the bid for sky that was the thing they started bidding on first they went after sky. they've since put in a bid for fox. it could -- they might end up winning the asset that they wanted most at a price cheaper than they otherwise would have >> comcast will say we want the india growth story as well there's star india there's over the top streaming service there. they want to be strong in all international markets. and that this is the best way of doing that if they don't get this, if comcast doesn't get fox, then what >> if you look at fox's international assets, the biggest piece of that is the 40% stake they have in sky star india is a fantastic asset. the fox international channel is decent and the minority stakes in the other assets are interesting as well really the biggest piece of sky followed by star india, if there's one thing they can walk

away from this whole process with and be happy, it would be sky. >> and you'd be happy as a shareholder -- not as a shareholder but from the shareholder's point of view, you'd be happy with that outcome? >> so comcast has already lost $32 billion in value since they started the process. >> it's amazing. the market has hammered them for this >> that's right. there's no way to destroy that amount of value in anything they do in this context and they still wouldn't destroy $32 billion of value so what we're saying is own comcast here however this comes out, comcast is going to be undervalued whether they win or lose >> wow jonathan, thank you. won't be the last time we touch base on it, i have a feeling jonathan chaplin from news street research. we have a news alert on the german automaker alert phil lebeau by phone with details. >> we just got this information

from stuttgart daimler is saying for all of 2018 earnings for mercedes-benz cars will be slightly below last year significantly below last year for the mercedes van what's the reason for this they cite a number of factors. the one that's going to get the most attention is suv sales in china. we are talking about suvs built in alabama and then exported from the u.s. into china the costs have gone up there and sales have gone down the costs have gone up they're citing because of costs into china from the united states in addition, they're seeing slower sales in the number one market in the world including for suvs so this is why daimler is issuing an earnings guidance lower than expected earnings for

the company overall and specifically for mercedes-benz cars kelly, back to you >> yeah. this is significant. is it why you think there's also reports that the german automakers want to work with the u.s. now to eliminate tariffs back and forth between at least the u.s. and europe right now. it sounds like these tariffs are having a big hit >> well, it certainly is weighing on their minds that they're concerned that the trump administration which is looking to reduce the trade deficit when it comes to autos with germany which is about $23 billion, that they might say we're slapping 25% tariffs on any vehicles imported from germany. and that hits a high dollar, high value, high profit mercedes-benz sedan. not the suvs because they're built here in the u.s. it's the sedan that's what their worried about. >> thank you, phil phil bringing that word that daimler is warning on earnings shares of iac meanwhile have

soared more than 30% this year up next, ceo joey levin explains what he's doing to increase competition including from the likes of facebook d azanamon your thing. v nr get all the good stuff about tv without all the bad stuff. yes! you can still stream your favorite shows... yes! ...with no annual contract. wait, what? it's live tv. yes! with no satellites. what? and no bulky hardware. no bulky hardware! isn't that great news? yes! noooooo! no! noooo. try directv now for $10 a month for 3 months. more for your thing. that's our thing. visit directvnow.com

welcome back shares of internet company iac are over 30% higher for the year and have recovered those losses after facebook announced it would launch a dating feature in may. that was to compete with match and tinder which iac owns.

iac is purchasing a stake in hinge. it's not just dating i ac's list includes angie's list and home adds visor they continue to battle it out with youtube how is the company fairing joining us from cnbc's exclusive talent at work event in new york city is joey levin the ceo of iac welcome. >> thanks, kelly thanks for having me >> want to ask you about hinge, first of all do you think you can survive in the dating world against facebook >> oh, for sure. this is as my colleague described it yesterday, right now we're chasing ghosts which means we don't really know what they have or what they're going to launch. what we're focused on is our products, our brands which cover a pretty wide ranged of the dating categories and so long as we're delivering great products for our users and delighting our users, i feel confident in our ability to

compete. >> what makes online dating or frankly online hooking up in the case of tinder such a good business >> well, first of all, tinder is dating it's hooking up. it's marriage. it's all of those things but love and relationships is important to everybody it's a fundamental part of life. it's a fundamental part of everybody's life so you think about the addressable markets of singles, there's hundreds of people worldwide. and for people to have tools which we provide to make that process better, more efficient, easier to get together, find the person that's right for you. that's something that we found people are willing to pay for. if you deliver that service. >> that's exactly what i was wondering. how much they are willing to pay for that versus it being free. when you look across your platforms, does it have to be pay? can you be free online and exist anymore and advertise without types of models? or does the customer have to pay up

>> look, i think there's a mix we generally bias towards pay models i think both of them work. the key to what you're doing is you have to be able to offer a compelling product to your users. i think that what we found in our dating products and all our products is you have a free layer which brings in lots of audience then you have tools on top of that which users or certain users are willing to pay for that helped subsidize the product for the broader audience of the free users. >> i want to ask you as the ceo, what do you do when you get a tweet like the one from david hogg where he says here are the advertisers on the laura ingraham shows and these companies you should boycott he named you guys and others what is the response how do you deal with those situations which are becoming increasingly common? you have to monitor social media and the customers, employees,

audience if you're looking at that feedback and you're responding and reacting to that fooed back appropriately, i think that's the right way to handle. that's what we did in this situation. >> do you think you can respond using social media then and not feel forced into making a decision one way or another. trying to stay politically neutral is hard when there are online campaigns now >> staying politically neutral is a hard thing to do, but i think it's an important thing to do imagine a world where every product built had to service only one side of the political aisle. and advertise only one side of the political aisle. imagine the divisiveness that would accelerate in our country. that's a scary thought that doesn't mean that when we see things that where our ads are things are being said that we're not happy with we won't pull them. which is the case of that particular show. >> all right joey, thank you for joining us >> thank you, kelly. >> joey levin is the ceo of iac.

let's look at how we finished the day on wall street today. dow down 42. the other averages positive. the nasdaq 7781 and the russell over 1700 i think for the first time here are some of the other big stories of the day now in our rapid recap. >> general electric gets the boot after more than a century in the dow ge's being replaced by walgreens >> disney raising its offer for assets at $38 a share. >> over $71 billion. now the offer now is a 50/50 split between cash and stock >> we've been working with regulatory authorities not just in the united states but in jurisdictions across the world now for six months and we've made a lot of progress >> starbucks shares getting roasted after the company lowered guidance and announced a slew of store closures >> how could you be three out of

four cutting your forecast, you would be furious at yourself i don't hear you even being upset. >> jim, i said yesterday, you know, clearly the performance we delivered has not met my expectations >> i think cutting 150 underperforming stores, they normally have done 50. 150. makes sense. >> president trump says he's going to sign an executive order to stop separating families trying to cross the border >> we're keeping families together, but we have to keep our borders strong >> and starbucks shares were down nearly 10% on the close time now for a cnbc news update >> here's what's happening right now. prime minister theresa may's government wins a key vote on brexit on the legislation there by a 319-303 vote it defeated an amendment that would have required a final vote in parliament on any divorce deal from the european union. demonstrators protested at a chicago walmart store over the company's selling of a building in texas that's being used as a detention center for immigrants

crossing the border. walmart says it was surprised over the store's use but the protesters claim the company knew what was going on a company in india has created a wearable air conditioner for motorcycle hes. it helps the rider to stay cool on their bikes it's called blue snap. it's battery powered it turns on and off by pressing a button i bet you it also helps with air pollution. phil mickelson has apologized for hitting a moving ball on the u.s. open. he claims the frustration got the better of him. he says he's disappointed by his own ctions says it was not his finest moment wait a minute, kelly that's the rules >> should have said that from the get go >> i had no idea i do that all the time >> i do too. that's just in mini golf but he came out and was trying to say i wanted the two-stroke penalty. anyway, it was pretty clear that he just got frustrated as we all do

>> occasionally it happens to the best of us >> contessa, thanks very much. contessa brewer at headquarters. still to come here, should you let -- vould you bshould yoh banks? we'll get the "fast money" trade on thiunrpfoingrp.s deerrmg ou this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets

and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

welcome back citigroup was higher today about 1% after deutsche bank upgraded the shares to buy. here to discuss with us is karen fi finerman and pete najarian from "fast money. if we can get through this without saying sea car, i would be happy >> you just said it. it's over. >> so do you buy a group like this do you wait until the results come out what are you doing here? >> well, i'll tell you what i'm doing. i've owned them for a long, long time so this not to be named voldemort test coming out tomorrow, i think doesn't really have a big difference. it'll be next week to see how much capital they can bring back so i think they're -- you know, they've traded like dogs over

the last couple of months. i think they're relative to the market great value and i think all of the things driving the market, a growing economy, you know, lower regulatory environment that's favorable, taxes that are favorable. all that helps the banks but i think there's value there and people are going to be looking for value. i'm hanging onto all three of them >> pete, what about you? >> i agree with karen. we've been in these trades together for a long time both citi and bank of america. she's got jp and i've got wells fargo. what i like is the idea with the stress test nap will give them an opportunity for buying back more stock and obviously some of them are going to actually probably up their dividends a bit. i think when it comes out, they have the most upside it trades $4 under book value right now, kelly that says something. i think sooner or later they're going to normalize

now, i've been waiting for a long time, but it's been worthwhile because people want to look at just this year how the banks have traded. how about looking at 12 months 52 weeks then all of a sudden you look at a bank of america 20-some-odd percent. citi still lagging it's all relative and i think we're at a pause right now >> we'll see if we get through these tests and everything looks better, then you're right. maybe they do trade them better. thank you both very much >> thanks. >> there's much more coming up on "fast money" at 5:00 p.m. tonight. the founder of light coin is going to tell them cryptos are about to soar. oil prices in the past month. brent is down 5% idti cinupn eengomg o fray duncan just protected his family

with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.

is the world's main exporters of crude oil are set to meet on friday in vienna to decide whether or not to increase output. here to talk about the potential output is the ceo of liberty oil field services >> glad to be here >> the u.s. -- the permian basin creates as much oil as iraq or iran >> it does >> how important is friday's meeting? >> well, it matters in that the only spare capacity in the world resides in opec. a little bit in russia

in our businesses we're producing all the oil we can right now. >> you operate in the permian and a couple other places. when you're saying we're pumping as much as we can, does that mean you've done all the exploration, you're at max capacity now and if the oil price went up, you're running full on right now? >> well, the shale revolution, every time you drill a new well, you're adding production the rate of new production being put on is tied to the rig count. it absolutely could go up. there's no wells that are in reserve that are choke back. saudi arabia has existing oil wells. they just open a tap and oil comes on in a day. for us there's a few month lag to get new wells online. >> and what about transporting it as i understand, there's a lot of oil trading at a discount in the u.s. because it's just sitting there and can't get where it needs to go >> exactly shale revolution a victim of its own success. the production, the permian's grown faster than the infrastructure can catch up. so there'll be a little

constraint in permian oil getting out for the next 12 or 15 months. it'll still grow, but not as fast as it naturally would grow. >> around $66 a barrel right now. what are your expectations for this meeting are they going to say, okay, you can produce a little bit more, push the price down or vice versa. what do you think is going to happen there >> i don't know. you know, i think the worry is that if they don't increase production, the oil market might get too tight and oil prices might go up a lot. i think saudi arabia or a long-term will worry about that. >> are we that tight now if it takes a couple months to get the supply on line, do we need more? >> when the market was super loose or 17 when it's crazy tight. the interesting thing, kelly, is most of the opec producers aren't even producing at their agreed limit because they kbt.

-- can't you have these weird dynamics where uae could produce a little bit. venezuela and nigeria and libya are way below their quotas. >> if they go ahead and say this weekend yes we're going to put more oil out there into the market, what do you think the price does it's at $66 now. does it drop below $60 then? how much relief might there be >> i think if they add a half million barrels of oil, that's what e the market expects. if they add a million and a half that russia requested, oil probably goes to the high 50s. >> all right, chris. thank you very much. chris wright with some perspective there on what we might expect out of this meeting. president trump reversing course this afternoon and signing an executive order to end family separations at the southern border. but some companies are facing internal and external strife due

to their contracts those details are next be sure to tune into "squawk box" tomorrow. wilbur ross will join the crew at 7:00 a.m. eastern time to talk trade and tariffs don't miss it. still a chance here. it's willingham, edge of the box, willingham shoots... goooooooaaaaaaaallllllll! that...was...magic. willingham tucks it in and puts the championship to bed. sweet dreams, nighty night. as long as soccer players celebrate with a slide, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance. pressure, what pressure? the players on the...

pressure, what pressure? and i am a senior public safety my namspecialist for pg&e.

my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. president trump signs an executive order this afternoon to end family separations at the u.s./mexico border that comes in the wake of several companies being forced to answer questions about their ties to immigrations and customs enforcement. eamon javers has been tracking that for us. eamon? >> yeah, that's right. after days of the administration suggesting that it simply wasn't possible for the administration to take action to stop that separation of families at the southern border you're talking about, today the president did

take unilateral action signing an executive order this afternoon that will allow detained families to remain together for the period of time their immigration proceedings are going on also encouraging that detained families be moved to the head of the line in terms of those core proceedings. there dwrou see the president signing that executive order along side the secretary of homeland security and the vice president today. a number of companies have been drawn into this controversy after reports that their services or producting were being used in some of this activity by the federal government a number of them putting out statements sharply critical of the white house's policy microsoft said that it's not, in fact, working with the federal government on this and would not work with the federal government on it. united and a number of the other airlines here all putting out statements united saying that the policy conflicts with their values. american saying that it's not aligned with their values. frontier saying they would not

knowingly allow the government to use frontier airlines to transport children who had been separated from their families. all the airlines don't want to be involved in the process of transporting any children that have been separated from their families you see the statements there delta's statement came out after the news about the president's executive order. they added a statement saying they did applaud the administration's executive order today. and then that last company on the end of the wall there you see mvm is a defense and intelligence contractor privately held but they do work in the transportation of immigrants for the federal government as a defense contractor they said they're removing job postings relating to this forced separation issue they don't want to be associated with that either they said their contract they had predated the so-called zero tolerance policy and haven't had anything to do with it a lot of companies here very sensitive about the perception that they would in any way be involved in some cases their unions are pressuring them to put out these public statements and take a

public stand here. the white house dealing with that blowback. >> in the case of a company like microsoft which presumably could be involved in just providing competing for these agencies, are they going to say we're not going to do that anymore you know, what did they say about it we're not going to deal with i.c.e. look at the revolt among google employees a couple months ago? >> sure. they said they had looked into reports. they don't see their azure service being used in this federal government effort. but a lot of the companies want to suggest they don't approve of this policy just generally that the government isn't using their services to carry it out >> yes in case of the airlines, little more straightforward eamon, thanks very much. eamon javers at the white house. if you're in the market for a different kind of house, say a nantucket one, you better act fast

diana olick is out there for us >> you better bring a lot of cash because home price records here are falling fast. we will take you inside a $24 million teardown coming up next on "the closing bell ." ." (birds tweeting) this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for smarter business. ♪ ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave.

♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. 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 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.

nantucket is just 14 miles long, but it's home to a booming luxury real estate market. diana olick is there with that story. >> well, kelly, the numbers here are more than a little impressive they are breaking records. in fact, in the first quarter of this year alone, the dollar volume of sales was up 50% compared to a year ago that according to great point properties great point showed us this water front house. it's 60 years old but it's on a double lot the owner said he absolutely expects it to be a teardown. yes, a teardown. yet it's listed at $24 million that's just how valuable the limited land here is and part of the value here is that deep water dock nantucket no longer allows you to build docks anywhere ever in fact, an existing dock here sold recently for almost $5 million to the former ceo of google and his wife and that's why of course they call it the

google dock. sorry, i had to do that. there are more homes here listed for sale over $10 million than there are listed for under $1 million. what's driving all this demand agents say it's the economy. the booming stock market it also doesn't hurt that property taxes here are incredibly low compare that to the hamptons where property tax is incredibly high nap gives them an advantage. they expect home sales to top out over a billion dollars just this year. kelly? come on, bring your wallet, checkbook. i'm ready. go halfsies. >> i liked the google dock i don't think i've been to nantucket. am i missing anything? >> oh, my god. you're missing everything. i don't want to have a commercial, but let's say i come here a lot truth be told i'm actually on vacation because working today because i couldn't resist. >> see now you're working on the vacation it's like the lose/lose. but it does look beautiful

there. diana, thank you for joining us. diana olick. just so you know, hp ink c.e getting a little bit of a pop. the company higher on a stock buyback. just keeping an eye on that one. thanks for tuning into "closing bell," everybody "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's time square, i'm melissa lee. tonight on "fast," bitcoin showing signs of life despite a cryptoclash. founder of light coin will be here to see why the crypto-universe is about to moon plus the bid and who will the loser buy instead. the traders play a special game of match maker we start off with fang gone wild these stocks