>> control over the short end but not control on the long end. that's been the problem with the yield curve. >> and what are bond investors seeing on the horizon making them worried >> inflation inflation, i think, is what they're seeing >> yeah. >> recession maybe >> maybe maybe. >> we'll see thanks for watchi ining "power". >> "closing bell" starts right now. it's time for "the closing bell." i'm wilfred frost. analysts trying to understand the president's latest announcement on trade. i'm leslie picker in washington is corporate america being held hostage? congress is looking into that issue. we'll have all the details i'm bob pisani at the new york stock exchange. eight ipos expected after the bell i'll drill down the names you need to watch. and i'm kelly evans, automakers saying trump's tariff plans could raise car prices by $6 million the trade balance needs to be

addressed, says bob lutz he'll join us live with his take "the closing bell" starts right now. ♪ >> there's a lot happening this afternoon. we'll get to all of the stories in a minute. but first a check on the markets. it was a rally this morning after that news about the president maybe backing off some of the harsher measures. but that has evaporated. gains down 106 right now s&p down about 15. small caps are lower by a percent and a half and the nasdaq down by 1%. >> michelle caruso-cabrera has the details on the latest trade moves by president trump it's been confusing. break it down for us >> hi. the white house made clear today they are satisfied a piece of legislation moving through congress will give them enough tools to restrict chinese investment in a way they believe

protects national security there had been concerns they would do something even more draconian. this amplifies the mandate of an organization called cfius. that stands for the committee on foreign investments in the united states. up until now cfius was very narrowly focused on foreign buyers of u.s. companies and was designed to protect u.s. technology now among other things, the administration will also be able to look at joint ventures both here in the united states but also any joint ventures american companies want to do overseas in china. the treasury secretary is always the head of cfius. and current treasury secretary steven mnuchin appeared on cnbc earlier today. >> we are going to signal out china in the fact we have a large trade deficit with china and we told them we want them to take down structural barriers so we can have fair trade with them and our companies can do fairly. so that is still our objective and we should be very clear on that as it relates to investments, the president was very clear

we're going to treat china the way we treat other people. and to the extent that we -- we're worried about transactions, we will block them but we are not going to discriminate against china as part of a negotiation. >> there's wide bipartisan support for this legislation about cfius. yesterday the house voted 400-2 in its favor back to you. >> wow yeah it remains to be seen just what impact this is going to a have you can tell the markets are trying to figure that out as well thank you, michelle caruso-cabrera so for more on what the real world impact will be, we have roger mcnamee joins us alongside t.j. rogers. welcome to the both. there's a lot of focus on tech obviously the nasdaq in particular is weak here today. but what do you think is the outcome of these announcements or the announcements we did not

get from the white house so far this week? >> so the ones we haven't got are the ones i want to focus on. there is a growing sentiment that data is the new oil which means that it's going to be the place where nation states compete. and it'll be something that, you know, the united states has some catch-up to do we are the world's leader in technology but i think we weren't paying attention when the idea of day is -- data took hold i think they took advantage of our coordination for the country to have a coherent strategy that covers all aspects of technology and above all not try to do it from the really weakened position of a country involved in a trade war, that i think just makes everything a lot more complicated. >> t.j., to what extent is the u.s. still the global leader when it comes to innovation and

technology and is that defensible >> we are by far the global leader the position is defensible and it's also to continue on under attack and we focus on china today because china has an active effort to get ahold of american technologies i'll give you one example. if you want to make things and sell them in china, you have to make them in many cases -- in many cases, you have to make them in a chinese joint factory. and you have to transfer your technology to that factory you have to give up your technology that's not okay. so we have to prevent stuff like that happening by the way, i heard about korea. i heard about samsung and apple. same thing samsung is a copier of cell phone chips and other things >> t.j., if that's the case, what you're saying, then we need to be mindful of the importance of this technology is the white house -- is washington going far enough?

is this posture the right way to get after that is cfius the right committee >> i think the effort is at about the right level. the downside of all this is once you have these committees, they're unyielding and they are slow and they prevent american companies from doing business. it takes months, quarters, sometimes a year to get something through. so i think president trump's methodology of banging on the table and threatening certain things in order to get reasonable solutions is about the right level right now. >> roger, is this much more of a national security issue than, say, steel or aluminum should the president just have focused on these really core nationally important areas and not perhaps ruffled as many futers as he might have done with things that are less important? >> well, i'm not terribly clear on exactly how important steel and aluminum are to us today what i can tell you, wilfred, is both china and russia are

behaving as though data is the new oil and technology is the most important strategic thing in the world and at a minimum, we need to respond to that. as t.j. just said and i think this is a really important point, there are a lot of aspects of this problem. the chinese policy of requiring you to essentially license to them whatever technology that you're selling into their country, that -- there's nothing about the announcement we have today that goes after that problem. and in fact, even restricting investment doesn't prevent them from getting access to u.s. technology because we have lots of people who work at our companies and in the past there have been cases of other countries and even china getting to employees and getting the very trade secrets out. this is a really complicated issue. i don't think there is a simple solution >> roger -- >> go ahead. >> i'm listening to what you're saying and thinking about, again, the effort for the u.s. committee to review these deals. refers in most cases to the chinese wanting to make

investments here whereas what you're talking about is more when an american company wants to make investments over there they say great but you can't own the whole dhi thing and we're going to take your technology. can be done to get at that problem? is the u.s. now going to use this committee and others to say to american companies, no, you can't pursue opportunities in china if those strings are attached >> i think the problem here is as a country at the national level, we haven't thought through the issues well enough to know what our priorities ought to be. and so i'm with t.j. very strongly on this notion that the goal should be to allow american companies to remain at the forefront of innovation. in order to do that, you have to have the proper incentives but you also have to protect the things likely to be stolen from them and you have to first understand what are all the ways that could happen what are all the ways technology could be used against us and we just have to be really thoughtful the point is we're not going to do this one piece at a time. we should step back and make

sure the people like t.j. are looking at the whole thing and sitting there going, wait a minute there's 75 different things you have to worry about. let's have a plan that takes the ten most important ones and have those buttoned down. as a technology investor, that alarms me. >> t.j., how many countries outside of china -- you mentioned korea -- perhaps do threaten the national security with technology? is it only some of those nations we mentioned >> i say number one is china and the mechanism of having to give up technology to seller is one mechanism. the other mechanism is investing and acquisitions they have american front companies funded by the chinese government that try to buy high-tech companies. cfius has been good at sniffing those out and preventing it. the koreans are a little bit different. those companies independently

copy stuff i've seen copies of chips we made coming from korea >> okay. gents, thanks very much for joining us we'll leave it there for now interesting conversation let's continue the discussion, what this means for the markets. randy frederick, steve grasso, and rick santelli. randy, i'll start with you there's been a lot of back and forth from the administration this week particularly on this issue. how do you interpret it and do you think the selloff we've seen in the nasdaq is justified >> i think a little of it. what i hear from clients is they largely support the end game here which is we need to protect our sblintellectual property. it's the process by which we get there. they support the end, they just don't necessarily like the means we're using to get to that end i think that's indicative of the general investor population out there. >> there's going to be a lot of

argument about how much the market's weakness has to do with the trade policies today, what do you say >> so today feels to me as if it's a month end, half year end sort of dynamic where you sell the winners, buy the losers. we've seen energy spike a little bit here so this is reminiscent of monday's action. >> which by the way -- >> middle of the day which feeds into the trade issue because people want to lock in on their profits in the semiconductor space. >> look at the caps and how weak they've been if trade concerns are at the forefront, that should still be the place everybody is going >> agreed. and i think this is just a lot of rotation that we're seeing for everything that i just discussed. and when you start to see that take place, we've already had a selloff. so maybe that kind of tweaked the numbers just a bit because people don't wait for the event to sell or to rejigger their books or their balance sheets but i think today you're just

seeing that where it's people just aligning their books going into this quarter end. they're trying to adjust what they really want exposed to the marketplace. what they want to be in fixed income rick will talk about that. but when you look at the overall scheme, growth is still there. but people don't care because when you look backward and you have an inverted yield curve, potential inverted yield curve still it gives you 18 months to sort of take action on it. but every time we've been there before, we've seen where it goes >> rick, are we starting to see some more meaningful retaliation from the chinese through their currency >> you know, i don't think so. i think i would phrase it as purely being on the defensive. now, you might not read that in the words that come out of the press, but that's what it seems to me. this is a country that shouldn't be easy, shouldn't be selling dollars to need to support their currency they don't want it to fall too

fast they don't want an exodus of capital. they're going to reload loans they're trying to get under control. no that doesn't sound like they're trying to be a tit for tat it's trying to survive and put on a face of strength. that's the way i read it as a matter of fact, look at all emerging markets today the dollar popping so nicely and believe me, steve has it nailed half year, quarter, month end. you know, this is wednesday. things are going to settle down. we have a holiday. even the fixed income markets are responding in kind so you have a one-year high virtually on the dollar. and you have a one-month low virtually on yields. we see this compression. and the yield curve is a big deal i get it looking at what? low to mid-20s on 30s minus 5s but the problem is threefold okay our central bank is going to really start ramping up his balance sheet exodus soon. ecb may begin at year end.

i'm not sure i believe it. while all that's going on, you truly have a mobile of growth outside of the u.s you have this divergence going and all this when mr. powell is trying to do his job now, i'm not saying that inverted curve isn't going to ultimately make people nervous yes, it's difficult to see where you're going to fit these in but at the end of the day, i don't see it as the cause of a fundamental of our own economy i see it globally. the real key is, does it matter? if the globe starts to slip into a recession, even with divergence, how can we be the least affected andstill not se a reversal on some of the good numbers? these are what the issues investors need to think about. >> okay, gents we have to leave it there this afternoon. thank you to all of you. we have got 45 minutes left to trade we are right at the session lows dow down 147 points. so this -- luittle bit of a

selloff is proliferating 1.4% down on the nasdaq. coming up, automakers sending a warning to the trump administration saying tariffs on foreign cars could cost consumers thousands of dollars we've got those details coming up plus the justice department making a major announcement today in the battle for the fox assets it could signal a deal is imminent "closing bell" back after this greatness of an suv? is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now.

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welcome back to "the closing bell." we're down about 0.5% on the dow. 0.7% on the s&p. the nasdaq down 1.25%. and russell down 1.5%. in terms of the sector performance, energy's holding onto more than 1% of gains oil continues its recent rally financials, consumers, tech at the bottom >> the oil pop is -- we were at four-year highs. now we're over $72. >> 2%, 3% moves up in wti two days in a row. >> going to feel it at the pump.

this morning automakers warning the president the tariffs on foreign car manufacturers could turn into more pain for consumers. phil lebeau has the latest for this out of chicago. >> we also just got word that toyota has issued a statement to the commerce department about its concerns over the potential for tariffs of 25% on imported automobiles. it says basically this is a tax on all american consumers. the price of every vehicle would go up. even those made in the united states specifically toyota says that the camry which is made in georgetown, kentucky, the price would go up at least $1,800. that's a taste of what we're hearing not only from toyota but other automakeser. both domestic and international. the alliance of automanufacturers out with really a lengthy statement to the commerce department about what kind of an impact it expects to see if there are 20% or 25% tariffs levied on millions of vehicles here's what the alliance for auto manufacturers are saying.

the price of autos, what you and i pay in a dealership would go up $5,800 on average the average price right now is a little over $32,000. that would mean 1 million to 2 million fewer vehicles sold in the united states and 195,000 jobs would potentially be lost as they're cut at auto plants. remember, the auto industry is going through the longest period of success and profitability that it's seen in a number of years. look at the jobs that have come to this industry here's the autonation ceo mike jackson. >> automotive tariffs will make steel tariffs look like a company picnic where everybody's kissing and hugging. this will unleash, if it comes about, a real trade war. because the numbers are just so much bigger. >> mike jackson has a number of

dealerships and he is not the only dealer that's worried it's automakers, parts suppliers, dealers everybody in the industry is worried. take a look specifically at the german automakers. they imported last year just under a half million vehicles. you slap a 25% tariff on those autos coming from germany, guys, and you have the potential there to see a real drop in sales. that's why shares of daimler, bmw, volkswagen are all lower. >> i know why the german car makers got hit after the tweet but why is a japanese automaker saying it's going to cost american consumers to buy one of those cars built in the u.s. as a result of this >> overall costs overall costs. the global supply chain would be altered and thrown into disruption you're going to see costs go up across the board and remember, toyota even though

the $1,800 just for that vehicle built in kentucky, toyota imports a lot of vehicles from canada what happens if you start putting a tariff, a border tax on those vehicles? it might be much higher than $1,800 overall, the industry believes that you're looking at a tax here roughly speaking that people would have to pay if it went through of just under $6,000 remember the average price we pay in dealerships right now is a little over $32,000. you think people want to pay over $38,000 that's the conundrum for the auto industry right now. >> great stuff thanks, phil lebeau. we'll continue the discussion. joining us on the phone is former general motors vice chairman bob lutz. good afternoon to you. phil has maintained one theme through his coverage of all this in saying to us again today and yesterday that there's nobody high up in the industry that he talks to that thinks these tariffs are a good idea. what's your take is there some method behind the

madness in your eyes >> i think the domestic producers are going along with the majority because they don't want to seem -- they don't want to kind of hit their foreign colleagues when they appear to be down. but the thing we have to remember is, first of all, the 25% is typical trump it's a negotiating position. it's not going to remain -- we will not have a 25% tariff this is his going in position. as usual, walk in, threaten the maximum, then settle for less. but what trump is trying to do is resolve an inequity that's been present for the last 30 or 40 years that nobody has dealt with the united states is a 2.5% tariff on imported cars. every other country has multiples of that. the european community has a 10% external tariff. that's four times ours >> yeah.

>> plus once the vehicle is -- has paid the duty, it's subject to a 20% european value added tax. so after -- >> but bob, it's fair to say that the tariff is four times at 10% to 2.5%. the v.a.t. is different here because that, too, is applied to a german car made in germany >> true, but german cars that are exported do not pay the value added tax. so they come to the united states with half a tax load. when they get to the u.s., they pay whatever state tax is applicable which is 5%, 6%, 7%. whereas u.s. tax load embedded in them. then they get a europe and pay another 20%. >> but that's comparing apples and oranges. it's like arguing -- >> no, not at all. not at all >> it's fair to say that the tariffs are four sometimes

bigger, absolutely but v.a.t. is not applicable in this argument. >> wait, wait, wait, wait. the german cars carry almost no tax load and the u.s. cars carry the u.s. tax load plus a european v.a.t so why is it then that it's almost impossible to sell american-made cars in europe they cost about 150% to 160% of what they cost here. whereas german cars if you do the currency translation are cheaper in the u.s. than they are in germany that makes -- >> bob, i'm just wondering going back -- yeah, and i take your point on that. so do you think that ultimately -- and it was really interesting to see the german and european car makers float this idea of what if we all go to zero tariffs. the big asterisk was the u.s. has to go to zero tariffs on trucks is that worth doing so we can get to zero here no matter what the threats and headlines are right now? >> well, i don't think it'll go

to zero. but the eu may well scrap their 10% tax. that still leaves the v.a.t. issue, however you could argue that's the u.s.'s fault >> no. i want to hear what you think of the pickup trucks. is it time to do away with it if it gets everybody to zero? >> i think the u.s. pickup truck industry would survive nicely with 0% tariffs. because the u.s. auto industry today is highly competitive. if the dollar rises, continues to rise, then once again due to exchange rates, it might become difficult again. but what we have to remember is this is a negotiating posture. and what it'll ultimately result in is that the u.s. goes to 10% like europe. china goes from 25% to 10% there will be a solution here. but --

>> that's the glass half full point of view. it could work. >> trump is trying to get american industrial jobs back, and you can't do that if other people have four times the duties on american cars than we have on theirs >> we got to go, bob >> okay. >> no, i agree and maybe in a weird way this does get them lower across the board. but you're right we got to be ready to give up ours too thanks so much appreciate your time >> important to have that perspective. as phil has continued to report, current executives, few support this idea. but bob is very much speaking his mind there >> pickup trucks are the bread and butter right now so the idea of getting rid of our tariffs on them scares, but you got to be willing to put it all on the table just over half an hour to go dow making a comeback. only down 80 right now nasdaq down 1% same with the russell. up next, a key announcement

could pave the way for the comcast/disney deal. the battle heats up once again we're back in a couple of minutes.

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kayak. search one and done. ♪ welcome back to "closing bell." time now for cnbc news update with suze herrera. >> here's what's happening at

this hour. president trump encouraging 100 millennial and generation z individuals from across the country to never quit or give up as they go through life. his remarks came during the face-to-face with our future event at the white house >> each of you represent the future of this nation. you aren't afraid to speak the truth and the truth as you know it and to stand up for what you know even if it means being politically incorrect on occasion i've been politically incorrect a lot so it's okay i guess anthony kennedy says he plans to retire after three decades as a pivotal vote on the supreme court. this will give president trump the opportunity to move the court to the right his retirement takes effect on july 31st. and boeing has unveiled a rendering of a hypersonic passenger plane. look at that now, in theory, it could fly as

fast as mach 5 or just under 3900 miles per hour. a flight from new york to london could be cut from seven down to two hours. unfortunately, it is likely decades from being built but you got to start somewhere that's the news update at this hour >> i love the sound of that. >> i know. i bet you do >> time for a lot more cricket >> i bet you do. you could actually basically commute. >> exactly >> oh, gosh. you know, i can imagine. give it a couple of generations, and you're right it's crazy to think about. what we're doing today is crazy 75 years ago >> amazing >> i never got a chance to fly on the concorde. i wish i had >> i was lucky enough to sneak on right at the end, sue. >> excellent >> anyway, sue herera -- >> you must have been a teenager i guess you'd remember that. >> yeah.

you can't remember your teenage years? >> trying to block them out. >> on the bottle a little early, perhaps. >> no. just traumatizing. we've got 28 minutes left before the close we were at session lows 15 minutes ago which for the dow was down 347 points. but we're back to down 60 points it's been a bit of a roller coaster ride we'll keep an eye on those markets. still to come, the latest details in the battle for fox plus the ceo of imax joins us to weigh in on media con sall dags. that -- consolidation we'll get you the ipo names to watch including b.j.'s the wholesaler it's coming up on "the closing bell."

welcome back important story today. congress taking aim at advisory services for what some say are moves to hold corporate america hostage. leslie picker has more for us. >> that's right. proxy advisers issuing reports that help shareholders decide how to vote on issues like takeovers and board directors. and after some adverse

recommendations, hundreds of companies are fighting back against what they see to be conflicts of interest. now, ceo bill klopp says the largest proxy adviser recommended shareholders vote against some of his directors ahead of his last two annual meetings and then iss turned around to him afterward and told him to pay $30,000 a year to become a member to better understand their requirements that would enable favorable ratings >> it's not a secret society, by any means, but if you're not a member how do you know >> basically they hold corporations hostage and make them buy their services. it's like, you know, vinny down the street who says listen, i'll protect your store and if you don't pay, you know, we're going to come in at night and you know what happens. >> now, that's representative sean duffy who passed a bill last year and will be a focus of a senate hearing here tomorrow

on capitol hill. it requires proxy advisory firms to register with the s.e.c and it also giving companies the ability to fact check research before it's distributed. now, iss which opposes the bill says that will be harmful to investors by depriving them of independent advice and slowing down the time they can receive research >> yeah. i don't know if it advances or not, but just the fact this has now been raising their focus on it tells you a lot about how important these companies are and the checks people want on them so leslie, thank you very much we've got a news alert on some news from the fed >> st. louis federal reserve president james boller telling "the wall street journal" he's concerned rates could be raised too far too fast

misunderstand or misinterpret what the rate is this is not especially news for bullard. but i'll explain in just a minute bullard has been a dove for awhile here now. he is probably projecting an under 2% funds rate for the next two years. he sees the funds rate at probably 1.875%. while the median is higher this dovish rhetoric when the yield curve is down to 31 basis points, you start to wonder whether or not more fed officials are starting to wonder whether or not it's too far too fast whether that might push the spread down to zero and whether or not there's a reason for cautious in that we watch the outliers for a reason sometimes an outlier can lead you astrie but sometimes they lead the way. this may be one time to take a look at that >> that was like a little poem in there. >> a little fed poetry.

>> they lead you astray or lead you away >> lead the way. >> lead the way. thank you very much, steve leisman. we've got 20 minutes left of trade. the low of the dow for the day was 155. we're up a bit now we're down 77 points but all three of the indices very much in the red russell down 1.3%. ceo of imax joins us after brk to talk whether trade tensions will hurt china's business bi we'll be right back. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step

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welcome back the department of justice making a big announcement today in the closely watched battle of 21st century fox. david faber joins us with the latest >> yeah. and of course this is a big deal for disney getting the doj approval agreeing to devest all of the regional networks. let's go through it a bit. it gives them a timing advantage in its continuing battle against our parent company comcast for control of those fox assets. disney has a deal 38 bucks a share. while comcast obviously does not

have the deal in hand. from the doj's perspective, perhaps it's not that hard to imagine why this took a very short amount of time at least in recent anti-trust history. just to put it in perspective. this really took six months and thirteen days from the announcement of the deal why? most of the assets are international. you do have two studios coming together and many people made a lot of the fact that market sharewise, the fox and disney studios represent a lot of the box office but the doj apparently looking ate it from the perspective of, hey, there are eight or seven current players. we're either going to seven or six. the barriers to entry don't seem that difficult a la netflix and hulu being original content makers at this point. then you move onto the cable networks well, nat g trkt geo and fx, do

really change with the contributors the staff believe that was not the case and in hulu once again given disney is not a distributor, it was not seen as a potential issue. and so disney gets this significant leg up yet again on comcast in terms of timing time value of money. the uncertainty that comes along with a potential comcast bid the question is when would it get approved doj has begun the review of comcast potential purchase of those fox assets they have had one meeting so far. it can move fast and of course in this case it moved fast for disney because they were willing to say we'll get rid of all the rsns. there was not that much of a conversation around it they didn't try to keep some and so that did have the effect from doj's perspective saying, okay that was going to be where our main objections might have been.

and therefore if you're eliminating that, you've eliminated a lot of what we might have spent a lot of time reviewing and talking about. comcast could do the same. rsns could say it wants to get rid of hulu and so it could move quite fast. but we will have to wait and see. as well, we'll have to wait and see what comcast decides to do in terms of a bid to bid higher than the disney bid right now. >> thank you very much, david faber. for more let's bring in the ceo of imax. welcome to you >> nice to be here >> what does it mean to you if we see this consolidation on the studios? >> i think it's inevitable in fact, the way the movie business has gone is towards more and more blockbusters and the middle companies will compete with the streaming companies. companies like lionsgate i wouldn't be surprised to see some of them get sold.

i think on the high end, you're definitely going to see netflix and amazon and hulu and apple go towards creating big blockbuster content. and i think inevitably the merger of fox with disney or comcast will also lead to more blockbusters in the last several years, blockbusters were only about 25% of the box office three years ago. now they're 35% of the box office so i think rupert had it right as you kind of have to go big to compete. >> you mentioned those new media companys, streaming companies going big to compete do you think the netflix of this world would want their films, their exclusive movies to come to your theaters before they go to their platforms or not? >> there's no question they will, in my mind in fact, we tried an experiment with netflix a few years ago about -- the exhibition community wants a window or hold back it's an essential part of it

look at "avengers. merchandises, sequels, theme park rides i think the netflix model is likely to change in the long run. amazon respects windowing as does hulu. and we'll see about apple. but i think there's no question they're all going to provide blockbuster content and i think in a windowed way. >> rich, you have some 40% of your theaters in china are you concerned by the escalating trade disputes? >> obviously no one likes to see that on the other hand, we're a canadian company our chinese theaters are all on the hong kong stock exchange and public company there i don't think it's really going to have an impact. there's been some question of do the chinese retaliate against hollywood movies in some way but from our word on the ground, because the chinese consumers love these movies, i don't really think that's going to happen it's not a concern of mine >> rich, we'll have to leave it tlp thank you so much for joining us this afternoon.

>> i didn't know you could rent out a private imax experience. but we're learning about it anyway >> maybe for world cup >> it's a pretty penny. >> yeah, no. you have to get a lot of people together for that. 20 minutes to the close. we are down less than a hundred a few moments ago. now the s&p is down 17 again the nasdaq and russell both down more than 1%. coming up the "fast money" traders will tell us whether there's a buying opportunity for the home building sector back in a couple minutes 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.

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welcome back there are $2 billion to sell on the bell today that's a huge number may help explain why markets have moved lower again he even said if all the 2 billion is for real, the dow would be down 200 points right now. we'll see what happens on the close. we're down 118 right now let's look at two stocks to watch. today conagra brands bidding for pinnacle foods the deal would create the country's second largest frozen foods provider and the shares of conagra are down 7% on this news

and pinnacle down 4% >> the expectation was coming in the price was surprising people a bit. another stock to watch wwe. world wrestling entertainment signing deals with comcast owned usa networks and fox sports. shares surging today on the deal which will more than triple the fees it was receiving in its current agreement. up 6%. >> so now you'll be dvr'ing monday night raw >> kelly, as we approach the close on this your final show before you go on maternity leave, we want to say all of us here at the new york stock exchange and "closing bell" are going to miss you is a lot and wish you the best of luck. i separately got you a gift which you might hate >> probably. >> but here it comes >> tell me it doesn't have a british -- >> for the little one when he or she arrives. >> thank you. >> we're going to miss you a

lot. do come back but all the best. >> that's sweet. if i dwell for a moment it's going to be water works. don't have too much fun without me and don't do too much world cup stuff either or soccer in general football >> i agree and we look forward to your return but best of luck in your absence. we're coming back here with the closing countdown. seven minutes left of trade. >> we have ipos on the way including b.j.'s wholesale club. they're coming back to wall street you're watching cnbc, first in business worldwide 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.

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welcome back to "the closing bell." three minutes left of trade. we start with an intraday chart of the dow what a roller coaster ride it's been the dow was almost 300 points higher at the high sold off significantly throughout the session the low of the day came at the start of "closing bell" about an hour ago we've rallied a little bit from there but not by much now. looking at all the indices, you can see even if it was trade affected in sentiment, the domestic russell 2000 smaller caps selling off, the tech names selling off as well. the dow down 0.5%. s&p down 0.7%. the energy sector is the real

outperformer that's propped up the energy sector kind of fairly broad a couple of them holding onto utilities. i'm going to bring in bob pisani now. we can have a quick look at the dollar as bob joins me >> 5% up for the quarter we've been talking about in the impact of the companies. there's a couple things going on today. obviously the message of the markets is cfius was a good development early on but it's not sufficient and the whole tariff issue still floats out there. number one number two, if you look at the big movers that are down today, semiconductors, biotech, consumer discretionary all of these had a great quarter until a few days ago what i'm saying -- yes there's -- often there is end of

the quarter machinations you have companies like pension funds out there that have to rebalance. unfortunately, they don't publish any numbers to us. it's a little bit of reading the tea leaves here. i think there's a little bit of that going on here it's unusual to see consumer discretionary weak all of a sudden biotech's been down for several days in a row here not necessarily impacted by trade concerns the russell is another good example. it's been a fantastic quarter for the russell overall. and we have seen that underperforming on a day when trade concerns move the market up and down at the same time so i would avoid making a lot of grand pronouncements about where the stock market is going until the quarter is over. i want to just emphasis that point. >> and regional banks had outperformed bigger banks. and have continued to sell off

all have been affected >> exactly 30 basis points between the 2 and 10 year. that yield will invert and that's got the banks all worried. >> right at the lows, we're down 150 on the dow ringing the bell here at the big board is transdigm group that does it for the first hour of "the closing bell." kelly, farewell. good luck. we look forward to your return up and down session on wall street today thought we were going to have a big rally. and these chinese investment restrictions were less than expected but that rally evaporated mid-day. the dow closed lower by 160 points that's the lowest we've had since early may. how about the nasdaq and russell down more than 1.5% today

and the dow giving up 160. we're going to talk about the tech sector in particular after the trump administration said it will use the foreign investment in companies up next we'll talk about whether the policy will stick or if the president will still yet take a more hard lined stance it's what the market is trying to figure out today. we're also waiting on ipos including b.j.'s wholesale club. b.j. returning to the market we have michael santoli. the vice chair and head of the investment group at ariel investments. and kevin o'leary. welcome to all of you. big winner on the dow today was chevr chevron. wti over $72 a barrel now. mcdonald's the big decliner down 2% over on the s&p, cohncho leading

the way. and conagra, a price issue with that one >> i think everyone says the strategic logic is fine. but they had to pay up it came down to what is the president trying to do when it calm down to skremt. >> the news this morning i think was perceived as benign as it relates to the whole trade policy uncertainty. the problem is i think the traders are overplaying the significance in the short-term of all the trade stuff in both directions i think the rally today was very effort full. let's bid boeing up. and there was not a lot behind it you still had banks down and tech under profit taking really it's not swinging the overall debate or the economy. so there was enough soft durable

goods orders a lot of noise and the basic story is still global markets are unsteady. oil in total momentum mode to the upside the dollar rallying. and emerging markets still stretched to the downside. so i think in all that movement, stocks just got shaken loose which is not great >> and that's exactly what some of the traders around here are watching so they're not going to be heartened by that. charlie, on tech in particular, is the decline in the nasdaq today specifically because tech will be affected by a crackdown on chinese investment? or is that making way too much of it? >> yeah, i think tech as we know has had a wonderful run here it has come to the end of the quarter. there is some rebalancing going on out of tech because it's had so much strength and frankly it has benefitted more from trade than other parts. but i think this is more technical than part of the big trade picture. >> and so if that's the case, people would go, oh, you know, we're selling this

you know, we're concerned about these headlines. does that make you a buyer do you have any interest there or not yet >> in value tech, it won't be surprising we're going to look for value names. our favorite in large cap is oracle which is going to have double digit earnings growth they still have wonderful motes around their data base business. yet trading at about 12 times earnings there are big tech names that make sense but netflix and twitter up 100% each not so much. >> all right kechb, what about you? are there places you would be a buyer of are you concerned that there are prospects that will be affected if the chinese market is less of an opportunity >> yeah, i didn't like that news today. i'll tell you why. a tariff is measurable when you go into trade wars and slap tariffs on different groups and sectors, you know right down to the cent what's being applied. this cfius stuff is a process.

what i don't like about it is the u.s. market is always the number one place to bring capital to investor. always was and now when you start to think about companies, for example, and they want to buy companies or get kboeld ak weizations, they don't know the outcome of the process. it's not like a tariff you have to go into it with an uncertain outcome. china's graduates over 250,000 engineers a year now they're getting very competitive in what they're doing in data mining and technologies. and i think we're scaring capital away from those we want to invest in that kind of thing in the u.s i prefer tariff wars that can be turned on and off. this is just more government getting in the way of capital flows. to me, that's negative >> i wonder if there's even more to come on that front. i guess it's up to the administration at this point it was another tough day for financials, too. the xlf, we talked about this yesterday. that's the etf that represents

the financials yesterday it was down for 12 straight sessions. today it added a 13th. it was the longest on record yesterday. of course it's the longest on record now again bank stocks closing lower included citi, bank b of america, jpmorgan. they're going to talk about capital they're returning to shareholders then you have james bullard this afternoon coming out and in an interview talking about how maybe the fed shouldn't move too quickly. >> well, i think that a little bit of that doubt in terms of what the fed should and will do. i don't think, again, it's a matter of the market not thinking it can handle two more rate increases this year but when you look at the financial stocks, it almost seems like there's two ways they can lose which is one, the fed keeps raising on the short end and the curve kind of gets squeezed a little bit more if long-term yields don't go up or there's going to be fewer rate hikes over closer to the end of the cycle or neutral rate that's not great for them

either so i wouldn't extrapolate too much european financial stocks is really where the pain is deutsche bank had another rough day. that's why it's the big global new york banks that have mostly been sagging >> and do you k, charlie i feel have moved from a bank booster to what's the opposite of that where do you fall on these large financials >> thanks for remembering that, kelly. yeah these banks got expensive in february the reason why they've had lousy performance is they got overpriced everybody was a crowded trade. everybody thought higher interest rates were good for banks. and so banks were overpriced you had regional banks getting close to two times book. it doesn't even make much sense so they have come down now they're much more appropriately priced there's some financials doing very well. the alternative management officers is continuing to hit new highs. so there's some dispersions. >> every time i hear kkr i think

about brinscoy >> thank you they become a c corp. next monday then everybody can own kkr for the first time ever. >> i know that was a big part of your case. was to kind of look outside the big guys, the big indexes for now. kevin what about on the financials just before we move on how do you feel about the banks these days >> i'm favoring the regionals. you don't see in regional banks. they tend to be more tied to local economies. and frankly, you know, when i look at my portfolio private companies, they're having the best quarter they've ever had in the last ten years so domestic economy is very strong hasn't been affected at all by these trade issues at least i can see the cash flows. and regional bank service, that sector of the economy.

in putting more money to work, i'm staying in the russell 2000. it's been less volatile and they're starting to increase their dividends even it's great >> we thought it was weird today the russell was down again this has been a theme this week even though purportedly the market is scared about trade are they taking a break here they had been at record highs. >> you're right. but i think everything is getting hit by the whip sawing around politics. but i added positions to my small cap. and i also put on some dollars into asia which has just been slammed. i don't think i caught the bottom it's getting very attractive i love it when there's blood in the streets and it's the end of the free world as we know it conversation but it takes down big indices. you know, asia and europe are starting to look very attractive on a value basis vis-a-vis the u.s. because we're fighting a dollar increase that's going to hurt the s&p. i think in the quarters ahead.

so new money into asia, new money to europe, and new money to small cap domestic. >> i know you're talking metaphor you don't love blood in the street, kevin. you know, just in the market setting the sentiment. anyway, there's eight ipos set to price tonight bob pisani has a preview. >> eight ipos pricing tonight. it's been a busy month for ipos. two leveraged ibos particularly in focus first, b.j.'s wholesale club this is a well known warehouse club hain. they operate 250 stores in the east coast it's the biggest deal of the week they're seeking to raise $600 million. this is a well known, well regarded company here's the bad news. low growth and a lot of debt and a lot of competition another fatherly large deal is bright view. this is the largest provider of commercial landscaping businesses in the u.s. it's going to price tonight as

well there's also four biotech firms online there's also an online shopping firm called ever quote and finally there's a leading international owner and operator of dry bulk vessels. these are big ships designed to carry coal, iron ore and other commodities. this caps the busiest week of the year for the market. 13 ipos likely will go public and will end with 27 to 29 ipos for the month. that would make it if we hit that level, the busiest month for ipos since 2015, june 2015 why so many ipos the returns have been good recently the average return from the ipo initial price, 32% and that's enough to get people jumping back in. kelly, back to you >> a lot of remarkable stats in there. thank you. mike, it's been a stealth move you know, it hasn't been about uber or airbnb or the big names. that's still to come obviously but it's been a strong market.

>> it was hitting new highs when the overall market was not -- i do think there's a craving for new ideas, but there has to be a pretty specific good story to tell it's not a shotgun blast of deals and they'll all get received well. they have to get it out there. we'll see what the valuation ends up being. the reason we're having eight tonight, school's out for summer after this, probably not a lot of deals happen until after labor day. >> not all are new tech apps freight costs by the way, 30% more expensive >> we talked today on "squawk box" went public on the nasdaq. >> wow would you be buying into any ipos >> who are ipos good for private equity firms that they have companies they're going to take public. so kkr is going to love this as are the investment banks the investment banks are

profiting from this environment. i wouldn't play in some of these names which i do think are overpriced >> kevin, final word to you. >> ipos, i'd look at them after at least four quarters a year's worth of results and earnings in cash flows i found it very difficult to play that game 50% of the time you get it wrong. and your portfolio gets slammed. i don't trust an ipo until it showed me its colors that takes a few quarters. >> it does you're absolutely right. great stuff. thank you very much. coming up, stocks close at the lows today even though there was a softer stance on chinese investment from the white house. we at one point had a 300 point rally. we'll break down that policy talk about how it's impacting stocks and the supreme court dealing a major blow to labor unions today. what that means for businesses we want to hear from you reach out to the show. we're back after this. hey, want the fastest internet?

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this is after he took on china >> we told them we want them to take down structural barriers so we can have fair trade with them and our companies can do fairly. so that is still our objective and we should be very clear on that as it relates to investments, the president was clear. we're going to treat china the way we're going to treat other people to the extent that we're worried about transactions, we will block them but we are not going to on a wholesale basis discriminate against china as part of a negotiation. >> now, our steve leisman has a look at how all these trade talks have impacted markets all along the way, steve >> kelly, if you have a pain right here in the back of your neck, you're not alone when it comes to trading and following the effects of the trade policies from the administration on the market. cnbc looked at all of the 1%

moves. let's look at the negative days when we were down 1% or more there have been 17 this year looking at the headlines on those days, eight of them were trade related creating a loss in the dow of 3,258 points. today would not count, by the way. but now let's look at the positive days of which there have been 19 1% or more moves this year of which 5 were trade related costing 2,122 points so net negative on this and by the way after i did my report this morning i got an e-mail from the folks at renaissance mac macro. look at what they had to say scrubbing macro-news headlines, we estimate that absent trade tensions the s&p 500 would be about 70 points higher this year so there's some up and some down but ultimately trade is leading to a negative when it comes to the markets here >> steve, stay right there with us let's bring in cnbc contributor jimmy pathakukis for more on

this jimmy, it does seem after what happened this year the white house is paying attention to the market and reacting. you know, maybe tweaking its policy after we've had these big selloffs you think every point here matters in terms of that outcome? >> mnuchin speaks and good things happen. he's been silent on this issue he's been sort of a free trader. the fact he's talking is probably meaning the administration has backed off. i think directionally expect more of this you still have -- the president seems to be all over the map he listens to navarro who makes a per swsuasive case the president obviously would prefer to get tougher. and more importantly, congress is somewhat you nieted on wanting to get a lot tougher on china with trade not necessarily tariffs. they're very worried about them stealing technology. so directionally, there are going to be more limits in the futurer. not fewer. >> so is the president going to

just take the tough line on china? because that's what he campaigned on and that's is a winning issue for him and there have been abuses or is he going to take cues from the market >> listen. listen, the president has tweeted a lot about the market i'm sure he would prefer to be talking about record dow highs than talk about some other things i think he'd like to get back in that he's sensitive to the market zte was an obvious one now we see with the trade restrictions navarro will keep pushing him. lighthizer will keep pushing him. more important we will be congress is going to keep pushing him. and this new cfius bill is pretty tough it's not going to mean more investment from china. >> mike, what do you think >> i mean, i think the market is struggling with not just the

substance of what's floating out there. sometimes it seems as if the white house prefers to just seem like it's throwing more out there to stay on offense on the issue opposed to follow a process where we're going to get to a targeted end. i also, you know, feel as if there's an impression at times when there's a hard line out there when the hawkish stance seems to be in front that the administration is willing to take all the assets of this economy basically of this acceleration into the new year, the tax cut, the repatriation, the low unemployment, and view it as ammunition to use to fight a trade war. and that's not something i would bargain for. also if the s&p is down 70 points from where it otherwise would be, it's still more than a hundred points from its january high it's not the whole story of what's going on in this market >> you can't have both things. you can't have a trade war and a rising market. we've seen -- that is a perpetual conundrum for this white house. >> i just -- >> that's what you were saying, steve. >> i think this is a west side

store in the white house you've got your sharks, jets, lighthizer on one side off the extreme version of protecting u.s. technology now that larry kudlow returned to the white house on monday. i think that's probably not a coincidence. i think some of that was walked back the trouble here is this i'm interested in what jimmy and mike have to say along with you, kelly. there's been a trade here. and the trade has been that extreme measures are announced and then people say, oh, it's just negotiating it's just negotiating. i feel like that's wearing a little thin at this point. and people think the intention is for the market -- for the president to put these things in place. i remember goldman sachs research paper just a week or so ago that said their base case now is the july 6th tariffs go into place where before they might have said we think they come off at

the last minute. >> jimmy, you'll get the last word >> if the president merely wanted to cut a deal, they could have already done that they haven't which meant some of this stuff is sticking >> jimmy, are we going to lose you, too, to larry kudlow? every contributor we love to have great discussions with and then they disappear and he takes all our -- you know? anything you want to tell us now? break our hearts now instead of later? >> listen. when they picked powell for the fed, i knew it at that point, i was just going to stay at aei >> all right >> i think kevin brought over about a dozen of your folks from there. that whole office must be empty now. >> it's quieter, but it's still lively >> thanks to you, guys

bed bath & beyond with earnings seema mody with the numbers. >> the stock is dropping reporting earnings of 32 cents a share. it does include a couple of items. it is not comparable to the estimate revenue in line with expectations at $2.75 billion. but here is the real story comp sales so comps are down 0.6%. they were homing for 0.1%. morgan stanley recently putting out a note that had the 20 plst coupon is becoming less of an appeal i should point out moving on heavy volume we'll get on the conference call and get you more details back to you. >> thank you very much mike, i was just looking at the sort of year to date performance here for this company. it's not horrible. >> not year to date, no. you have to look back a couple of years this is trading at an eight or

nine forward pe multiple the market is pricing it as one of the deeply disrupted retailers out there. also the fact they missed comps. when you had a tail wind of general retail spending in the past quarter is probably the issue. >> yeah. it's going to look even starker by comparison. chipotle also finished the day lower. it's getting ready to hold a special investor call in just a couple of minutes. we'll look at what announcements they have coming up. but first, home builders dropping for the fifth straight month now. the trade on whether you should buy this dip after this. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it.

nasdaq. rewrite tomorrow.

the home construction etf was lower by about a percent and a half today after pending home sales data dropped for the fifth straight month joining us to talk about the housing stocks are "fast money" traders guy adami and pete najarian who are the "dancing with the stars" duo. >> no. we're just talking off air i'm sorry. but pete was commenting on that brad our camera man got a hair cut, i got a hair cut. pete said he got a hair cut. he said he took the number two to the top of his head i looked at him like it was the craziest thing >> it's not that funny >> i'd like to see brad's hair cut. >> you can't he's the camera man. >> you know who's taking a cut the home builders. tell me if i'm wrong here. is all this declining impending home sales because there's not enough to buy? because everything else in the housing market is so bullish >> that's exactly right.

i think the inventory out there, i mean, there's not a supply for people to buy. but if you're buying home builders on the back of that, the back of valuation in this environment, you're making a mistake. i think home builders overshot to the upside late last year they're correcting now they overshoot to the upside, they'll overshoot to the downside if you're looking to buy valuation because inventories are low in my opinion at least, you're making a mistake. >> what do you think, pete >> i think the trade this whole way through as we talk about the housing market, it's always been the derivatives trade for me i like these home builders we've traded them at times but it's tjx, home goods, wall mart, burlington you've got all these different places, even home depot. there's a lot of different ways to play the housing world. >> we got to go. pete, would you be a buyer of b.j.'s if that one -- it's going, you know, going back public >> i probably would.

early on i'd probably want to be a piece of that. because what's going on in that specific world right now has been nothing but strong. and i would expect that to be true >> we really got to go listen, quickly. on behalf of everybody as "fast money," we wish you nothing but the best we're going to miss you. have a great leave >> we will miss you. >> i enjoy this too much it's like, i get paid for this to chat with you guys. anyway, that was kind. i'll take all the luck i can get. we'll see you at the top of the hour guy adami and pete najarian. coming up on "fast money," they do have the chief investment officer of one of the top firms to talk what all the trade war talk does mean rebecca patterson will join the gain dow dropped 165 today on the bell that went out on the lows after being up more than 300 earlier the s&p down 23. a lot of people watching these levels here. traders not too happy about that nasdaq down more than 1.5% today. time for a cnbc news update.

let's bget back to sue herera >> house democrats still processing the shock felt by many when 28-year-old political newcomer alexand anandria ocasio-cortez won. >> our campaign was focused on just a laser focused message of economic, social, and racial dignity for working class americans. especially those in the queens and the bronx. we're very clear about our message were our prierptoritiesd the fact that even if you never voted before, we are talking to you. vice president pence and his wife arriving in brazil where he is set to visit a shelter for venezuelan immigrants. this is the second and final stop of his two-day visit to that country and prince william visiting a refugee camp in the west bank.

run by a united nations agency that visit took place under heavy security the prince is the first official british royal to visit the palestinian territories. that is the news update this hour kelly, i will send it back to you. best of luck we love you. >> thank you you've given me some very good advice >> and i'll babysit. >> even better all right. i'll see you, sue. thank you. sue herera back at headquarters. we have a news alert at ge >> the financial times is reporting athene holdings has shown interest in buying all or parts of general electric's troubled long-term care flurns business now, it is a business that ceo john flannery recently said on a conference call on tuesday that the company is aggressively working on actions and alternatives to mitigate and reduce or eliminate exposure to this business. general electric shares up

fractionally by around 0.4%. back to you. >> thank you seema mody and a big day at the supreme court. dealing a blow in the latest decision and then just as anthony kennedy announcing his retirement just a few hours ago. eamon javers joins us with more. eamon? >> yeah, kelly that's right it caught a lot of us by surprise we were at the supreme court this morning for the janice versus afscme ruling which was that blow to unions. the decision from the supreme court siding with mark janice, the plaintiff in that case who said he didn't want to pay union dues as a municipal employee even though afscme was allowed to collect them from non-union members who were employees there. the supreme courts now saying that ultimate public employee unions will not have the ability to collect dues from non-union members. that is seen as a blow to unions across the country meanwhile after that announcement came out, the

supreme court gave some indication there might be some news we stood by for news they said it's just retirement of staffers. no justices retiring today that's the news we got then hours later anthony kennedy did announce as a justice he would be retiring from the supreme court. it's a huge political opportunity now for president donald trump the president will have the opportunity to name his second justice to the supreme court after neil gorsuch he's going to have an opportunity to fill a swing seat held by anthony kennedy who often voted for the liberals even though he was nominated for that job by ronald reagan back in the 1980s, he had been seen by some conservatives as a bit of a disappointment because he was a swing voter. they want somebody who's going to be reliably conservative. the president in the oval office today along with the president of portugal praised anthony kennedy. here's what he said. >> he's displayed tremendous vision and tremendous heart. and he will be missed, but he will be retiring

and we will begin our search for a new justice of the united states supreme court that will begin immediately. and hopefully we're going to pick somebody who will be as outstanding. >> and kelly, importantly the president said here he's going to pick somebody from a list of 25 judges that he's publicly released those are judges who have been vetted by conservatives that meet their standards so that gives us some indication of the direction the president wants to go in replacing justice anthony kennedy. kelly, back to you >> all right eamon, thank you hugely consequential day joining us now on a first on cnbc to discuss the decision is mary kay henry she's from the sciu. welcome to you i wonder what recourse you guys think you have now in light of this blow. >> well, we've been recommitting millions of members to stick with their union

we're throwing the doors of our union open to make sure that millions more workers who want to join together raise wages, and create good jobs across the service and economy get a chance to do so and we want to hold selected officials accountable to make it possible for workers to join unions in light of the supreme court decision, i think we're seeing a level of energy today on social media where our members and non-union workers are holding up posters that say #unions they're being joined by the naacp, black lives matter, the dreamers, the environmental movement, and even some elected officials who understand that when people have the ability to join together, they can raise wages not just for union members, but actually impact wage stagnation across the whole economy. >> so it was a double whammy, though it was first the janice decision then the retirement of justice

kenne kennedy. what will that retirement mean for your organization? >> it means we're going to join together with partners from across the justice fight on immigration, environment and make sure none of the 25 people that is on president trump list, we need other choices as a nation to make sure that the court has fair minded justices that are willing to look at the law and not make a calculation based on the politics of the nation at this moment. and so -- >> well, senator schumer said the same thing i don't know what power there is to do that look, it's up to the president he's got, you know, they've said -- mcconnell has said he's going to put this forward and they're probably going to move on it quickly by the fall. >> well, it's -- that's true but it was also true that the supreme court case was delayed

around the president obama's nomination so we think if we can build public pressure and work with the democratic senate that we can make it possible for the nation to have a supreme court justice that represents fairness >> makes the polling all the more interesting along the way mary kay henry, thank you very joining us >> thank you >> mary kay henry president of the seiu still to come on "the closing bell," the nba feeling 'sakute. about its fur it ming a big bet on staying in power that's coming u.

now the boss is unveiling his plans for chipotle and the special call for investors underway right now we have highlights from that call coming up and lyft picking up a new investor and increasing its market valuation that story is straight ahead in today's takeaway [phone ringing]

need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. welcome back it's time now for the takeaway we begin with elon musk saying a rude awakening is coming for the analyst who believes production will be shy of expectation he's got just a couple of days until the end of the quarter will he hit the production numbers and how much does it matter >> the fact he wassaying this now, a couple days before the

end of the quarter when there was a one-week target of 5,000 new vehicles, it would be in the bag. with musk, you never know. there's a huge bluster factor involved here. and also does it matter in reality if they get to 5,000 this week or two weeks no but it does matter they're that close to whether they do it or not. whether they can manufacture properly when they have a $58 billion valuation. >> also to get the cash coming in >> exactly >> i'm excited to see what happens. there's a lot of scrutiny on this one it's like the lebron decision. like, can they make it we'll find out lyft the ride sharing service is now worth $15 billion after its latest fund raising round. it says the biggest mistake uber made was not buying lyft when it was much smaller like google scooped up youtube did uber miss its chance for market domination? >> i guess it assumes that lyft would have been a willing seller and this was doable. i'm also persuaded this is a

market that probably logically has a big number one and number two. and a somewhat smaller number two. it's not a winner take all market and it's just starting right? it's not like there's this incumbent -- >> except overseas it felt like uber had to be the number one or almost exit the market >> it depends how much you want to spend and how much your investors will let you spend when uber goes public, does it mean game over for the subsidies when investors start demand pg. >> and for users, won't they say uber used to be so cheap and facebook, they're testing a snooze feature to stop spoiling things before you watch them to me the real facebook news this week goes back to what we were saying. reports that instagram which facebook bought for a billion dollars is now worth a hundred billion dollars. it almost seems more important they made that acquisition.

>> pretty much in terms of one valuation moment, that's probably true i do think the usage is kind of trending right no parity in terms of time spent instagram versus facebook proper so it's no doubt. >> and snapchat was the next in line snapchat went public by itself there's no one coming afterwards unless i'm out of touch. >> they would need an entirely new thing. >> social, it's matured. >> phones are finished >> i don't know if we're there yet. last week's nba draft delivered a new set of multimillionaires to pro hoops and to pay some of those salaries, league owners are taking a page out of the big business playbook. that story straight ahead. ♪

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which league is more valuable in 15 years' time nba or nfl >> i would say at this current pace, the nba. say at this currt pace, the nba. >> that was greg at goldman sachs discussing the valuation of pro hoops and the nba seems to be agreeing seeking a big bet on its future success. eric chemicali has those details for it. >> league health seems to be strong and you can measure that in a couple of different ways. the nba just announce aid few minutes ago, adam silver got a contract negotiation taking him through the 2023, '24 season. that's completely drama-free. another sign of league health. it was report this had week that the nba improved an increase in the debt limits for each team. it's now 325 million, that's up from 250 million. it's the first increase in four

years and every sports deal maker i spoke with, this is due to better financial health. the league is always conservative even with this increase, 325 million, not that much compared to teams that are worth a billion dollars. the league are trying to get ahead of rising interest rates the interesting thing is the owners. they can use the debt for anything they want. if you want to pay lebron james a ton of money, you want to get a new stadium or renovated, you can do that. a lot of infrastructure. a lot of teams are investing in their minor leagues. the owners can just pocket the money and take some personal liquidity. and more borrowing. if you're buying a house, more borrowing from other people could help push up future valuations of the team because they could take on more debt and raise the price of what they're going to pay. $325 million, they could've gone even higher given how big the revenues and valuations right now. >> i can't believe they can use it for personal reasons.

that's like -- putting that aside -- >> instead of selling a stake, they're simply just take on some debt, you got cash flow. >> it's like a home equity line of credit. are you saying that they could basically -- if the lakers, which they're trying to get -- can they just get now we can borrow more and pay him more and get around, you know -- get some room that way, because isn't he literally deciding in the next couple of days where he's going to go? >> he'll decide probably my sunday or monday. the individual players have an individual max contract so it'll be more about do you want, one, two and three people like lebron all making these max contracts and the more you pay, you have to pay a tax when you go over the cap of the so taking out a loan like this could help you pay some of that tax if you are not in a big market and you need more money than the money you get coming in from your regional tv deal. >> mike, there's always a way to get around. >> always an angle. when you have asset values that are high, someone will always lend you money.

>> so do you think -- does he go to the lakers, eric? best guess right now. >> i thought now it's cleveland, but now -- it's like picking stocks. mike knows this better than anybody. there's all these transactions it's like corporate m & a. if you think something's going to happen, you don't really know. >> i think you should do another show about it. >> one man's decision is pretty hard to handicap it's all in his head. >> it is. it's like the president. eric, thank you. up next, we'll take a look at the stocks making move after hour. "closing bell" is back in two. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. 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.

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more for your thing. that's our thing. visit att dot com. the market hit a record high but you were really wondering why? >> wherever you go. >> the dow hitting record highs. welcome back. bed, bath & beyond still down about 5.5%. under pressure after presenting disappointing saelds zillow is lower. class c shares in zillow moving lower. ge moving higher after a report that atheen has expressed interest in buying all or part of the company's long-term care insurance business. the ge breakup story continues. >> it does. it's had a couple days life to

it. you had two days of gains in the stock. people may be anticipating this could be possible but now it's accelerated. >> big pop yesterday. flannery came out and talked to us about it, obviously, and said we're down to the three core units now and that's it. >> yeah. >> how many more of these headlines should we expect >> not a lot of the it's much more about execution and how the market receives that story and actually what the financial results will be. if they can cap the liabilities, it's probably a big win. >> right. david asked him, okay, flannery said we're also going to have half a billion dollars of cost savings come out of our corporate headquarters and he says, so are you still moving to boston >> right. >> or -- >> just taking less space there when they move or something like that. >> right. he said, we want to decentralize the company. >> the message is clear. we have to shrink it down and empower the business. >> right and put the power -- which is the berkshire model. is it the conglomerate model

make sense period today? >> it can make sense if the market allows you to do it. if you can make the numbers and there's logic behind how you can manage it, 3m is the best example of. you would never create that business today as it stands. but because they execute well and have some kind of throughline of innovation and technology. >> would you create any of them today or when you look at the tech sector and say, if you think about an -- the number of acquisitions that have been made by platform companies, we talk about their major business line or two, no. it's actually a ton of different businesses. are we going to look back on that -- >> that is true. we might look back, especially amazon. amazon's the one i think you'll look back at facebook or even alphabet that was a hodge podge. >> or amazon right now much like ge then, everything seems to be coming up roses until the market slows, and cloud doesn't make sense along with retail. >> that's long-term stuff. we're talking about other long-term stuff because they asked me to give my parenting

away. >> yes, all right. >> which, by the way, i don't think you'll need that much of it. >> stories about your daughter's are my favorite. >> my first rule is, parent is not really a verb. people tell you to parent a certain way. there aren't any rules. nobody has it figured out. don't feel like you're supposed to have it figured out. listen. meet your kid and kind of know what he or she might be up for. there's no hack or super power is my point and that's why parenting is a verb is no good. dirt is organic is another one of my rules. >> it's okay to eat it. >> take a little bit of risk. don't worry about being a pure environment. >> i don't want baby in a bubble. >> walk and talk. make walking and activity, walk with the baby over at the small kid and that's something you're doing and talk the entire time. i remember those times when they're in the toddler. >> in the little carrier. >> were you guys just walking around the city? >> we were. i know the suburban thing is a little different but bring them to the park. >> that's exactly what i'll do.

>> i'll tell you my secret for making sure you're the favorite parent, but i don't want do that publicly. >> very important. i also think the world needs to know about nap chat. when you're ready, michael -- >> school lunch napkin note is going to get out there. >> thank you. >> we will miss you and please don't miss us. thank you for tuning in. see you in five months. "fast money" starts now. "fast money" starts right now. live from the nasdaq marketside overlooking times square. i'm melissa lee. tonight on "fast," financials posting their longest losing streak ever and its make or break time for the group as they head into a crucial test tomorrow. could it be a no win situation we'll explain. it's a "fast money" first, the man, the myth the legend, william shatner will join us and get this, he's exploring the new financial