vulnerable, in my view, to headlines, and that's going to be consistent this fall. >> at least for today, a close at the market, session highs for technology, lost leadership there, and we'll see if they hold the gains into this closing bell thank you for watching power lunch. closing bell starts right now. it is time for the "closing bell," i'm in for kelly evans, financials on track to break the 13-day losing streak as we await key stress tests after the bell. >> i'm kate rogers at cnbc headquarters, the ceo of chipotle restructures. why investors may lose an appetite for the stock >> reporter: amazon delivered a plan to deliver more packages. we have the details coming up. are we in a scooter bubble bird valued at $2 billion in the latest funding round, we got one

of the company's top investors joining us, and "closing bell" starts now ♪ >> they were fun they were fun. >> even i got on a scooter >> welcome, everyone at home, and wac sara eisen >> how was the walk? >> put mine to shame my scooter was better. >> i heard it took you two tries. >> more interviews and top stories we mentioned in the headlines, but to the markets, a volatile session on wall street, looking pretty this afternoon been very encouraging, 0.6% on the dow, more than that on the s&p, nasdaq up a full percent in the last couple hours, momentum now behind the markets trading major averages reversed those earlier declines that we saw >> big rally in financials

banks ahead of the stress tests. more on the markets in a moment, but, first, trade, taking center stage in wisconsin today where president trump just toured a new plant, and kayla has all the details. >> in remarks moment ago, we saw a cameo from wisconsin's governor scott walker and the founder and ceo of soft bank who introduced president trump to foxconn chairman who is responsible for the plant that is being broken ground today in mt. pleasant, wisconsin, the site of the president's speech the speech was a proclamation that the u.s. is open for business, touting tax reform and deregulation, although, trade, of course, the unknown variable there. he says that the tariffs for the steel industry have caused that business to be through the roof, and that even though europe is not happy about it, it's brought them to the negotiating table. he did also have a warning shot for harley davidson who tariffs

and retaliation from europe would drive some of its production overseas. this is how the president responded in harley's hometown >> harley davidson, please build those beautiful motorcycles in the usa, please, okay? don't get cute with us don't get cute they don't realize the taxes are coming way down. they don't realize that. spent a lot of time with them. build them in the usa. your customers won't be happy if you don't. >> of course, harley davidson was the corporate poster child for tax reform visiting the white house, pledging to manufacture its motorcycles in the u.s. because of the tax rate coming down, the president seems to take that personally, and we are not expecting him to make a visit to the company's offices despite being just about a half hour away. guys, back to you. >> okay, thank you very much for that, in washington, and let's continue the discussion. joining us is john rutledge and

chris lou. gentlem gentlemen, good afternoon to you. overall, good news perhaps the headlines being overexaggerated a bit? >> bringing in new business is always, in general, a good thing to do, they advertise 13,000 jobs, going to cost $4 billion in government concessions, that's $53,000 -- no, $300,000 a job, sorry the interest on workers is $15,000 a year hard to compute, but all in all, call it good news when somebody moves in bringing capital into the country is a good thing to do, and to some degree, the tax policy helped some of that, and they know the further details are above my pay grade, but that's my theory >> i thought it interesting, chris, that the president

actually mentioned harley davidson i believe the headquarters was just 30 miles away on the interstate there in wisconsin where he is, where they just announced, of course, they have to move production to deal with the european tariffs does president trump have a point that they need to wait for tax cuts before making those decisions to relocate production or not >> well, look, it is interesting that this decree is a positive economic announcement today, but it's seen in the backdrop, not just of harley davidson, but broadly how tariffs affect people in wisconsin. it's the beer industry, dairy farmers, small manufacturers, soybean farmers. i mean, specifically with regard to harley davidson, they understand what the tax law means for them they are making what would be a rational business decision based on inputs of their vehicles as well as cost of shipping them overseas, and so it is a rationale business decision and, obviously, the president took this personally given the visit

that harley davidson paid them last year. if i were him, go to harley davidson, that would have been a fascinating photo opportunity to go there and have that conversation >> when considering this foxconn deal, relations are not bad as they can be, lasted 48 hours, president softened tones towards china. where do you see this ending up, ultimately >> remember, foxconn assembles in china, but they have taiwan roots. this is a global story, not just a china-u.s. story the harley davidson story is a disaster this is a great company. one of the top ten brands in the world. it's hard to run a global business the people inside it know more than about it than trump does. ignorant about the fact it imprings on decisions. that said, he should, irresponsible for him to single him outs and attack them, and

it's, i think, probably, illegal for him to threaten them with targeted tax increases, but all that said, tax policy that encourages capital to come in is a good thing it's let's quit the show, stop having the photo opportunities, and help the companies make decisions they have to make to run their lives. >> well, i think, i mean, i think the administration would agree with you on the last one, and, chris, say president trump would say that that's what he's doing, and, in fact, this to tout the american manufacturing revival and the america first open for business -- >> no, no, no. >> how much potential is there really to go american manufacturing at this point? it's what, 12% of the economy right now? >> i mean, look, it is important to grow manufacturing jobs and, you know, i applaud any administration that does this, the challenges this raises is foxconn is a company with taiwan roots, manufacturing products in china with components shipped from all around the world, and,

so, yes, we need to bring products, manufacturing back to the united states, but highlights how interrelate td t u.s. with the other countries, and this one-off policy of imposing tariffs on our allies and china i think is ultimately going to be detrimental to the economy of the economy, and so i hope this is a negotiating tact tactic, but i don't see a way for the president to get out of the box he's in right now, and, ultimately, the harm is to american workers and american businesses >> okay. thank you very much for joining us, much appreciated, john and chris. >> thank you the market impact of this, joining the closing bell exchange, we have sadif, cnbc market analyst, steve grasso, and rick santelli in chicago all in all, is there a softening on trade we heard from the president and the rally, hammering away at the points, and as far as the policy action, have thinged calmed down >> we have not seen any policy

action yesterday, so, yes, i think that the rhetoric is always going to be outfront, markets react to rhetoric versus reality of the trade, and when you look at what moves the markets on monday, it was the china investment or blocking of the china investment here. that's what moved around the technology space ahead of the rotation tomorrow, month end, quarter end. he preloaded with the marketplace, right now, you see us up 20 handles, and s&p cash, and so if people started to get ahead of that rotation where you sold tech and tech was to be for sale because hedge funds and funds want that profitability and good trades and get rid of those, show the profit, and buy the laggards, that's why you see that reversal or reation taking place this week, but, also, remember buybacks are blacked out right now. so that is a huge tail wind for

the market place as they ramp into earnings season if that eps guidance, revenues are there with earnings, the market can still lev state back to or around old highs or the selloff is presumptuous. >> are you a buyer of the technology sector as the opportunities present themselves >> look, the most powerful secular growth story is unfolding in tech. so to be underweight tech at a time like this is like being underweight manufacturing during the strip revolution we think valuations have been still reasonable in this space this is not like the late 90s, and these valuations look more attractive given growth rates the companies have produced, and the fact it is secular trends supporting within the absence of cycles and swings of ups and

downs of earnings. >> what do you include when you say "technology" and you have to own it, like technology stocks hit hard on trade concerns, revenue exposures in china in such a globally interdependent kind of industry >> so semiconductors, industrials, those hit hard with what we view are exaggerated trade fears would make for a nice tactical play for a rebound in the near term, but the things we like on a long term basis, look, we think that the best way to maximize long term intergenerational tax wealth is through the ownership of high quality growth companies, and alphab alphabet, for example, falls in that category, a company growing sales and earnings in the mid-20s, digital ad business is strong, autonomous driving is spunoff. android is gaining market share,

additional drivers of growth, and it's growing at a pe multiple of 24 times >> rick, the dollar today is calm, but found positive imptous in the rally behind it what's the issue >> there's a lot, not the least of which china creating their sixth fix in a row putting the dollar stronger against their currency i think the fundamentals of the u.s. are better than the rest of the globe, and i think the investment capital will find its way to the u.s. after we get through the quarter and half year issues and get past the holiday next week. i really do think that the dollar index surprises us and do better i thought at 95 it slows down a bit, and for a while, it did, but i like the resurgence, and i know that there's going to be the litany of conventional wisdom that the strong dollar, of course, is a real head wind

for multinationals, i've always thought that that was a really rotten reason to hope for a a soft currency. >> well, there's also exports and, i mean, there's a lot of other ways it can reek havoc best trade was to buy the dollar when larry kudlow went into the white house. he was on "closing bell," and -- remember i do, indeed >> dollar straight up steve, before we wrap up, the second round of stress tests come out, banks weak as of late. is this drawing a line under the weakness >> so when the marketplaces this bounce late in the day and see tech performing a little bit better and see pretty much financials are performing better, people push that short so aggressively because we had 12 or 13 straight down days in the xlf and ahead of the c card after the bell, they scramble to cover. let's see what the results are

>> we'll watch that, gentlemen, thank you very much. thank you. news alert on facebook josh lipton has the details, josh >> reporter: here at facebook headquarters in menlow park where facebook owned instagram made big news saying they have 400 million people daily on instagram stories and just to put that in context, you know, in november, they said 300 million, so that's a big jump up for instagram stories there, and they said they'll add a new feature to stories, specifically music. this is how it works capture your photo or your video, and you can pick music by tapping a button search for a specific song, mood, whatever is popular. it's in a second number of countries like the u.s. today and rolling out globally in the near future. instagram had a big event last week in san francisco when they announced that big push into

reform, and said instagram now has 1 billion monthly active users, guys, back to you >> josh, thank you very much for that josh lipton for us i think stories is too much to it now it's too complicated, i think. >> you use it. >> not anymore gave up stories. >> i don't think so. i think -- >> just regular posts for me now. gets too intrusive >> just the wilfies. >> none of those either. new year's resolution. >> you're really modest. >> touche. 45 minutes left of trade, and as we already said, we had a great afternoon of trade, banks playing catchup under that result coming at 4:30, up 4% on the nasdaq up next, a double dose of amazon news is rattling the shipping and farm industries today. we'll break down the ways amazon is taking on two major american industries plus, we got a chance to test out one of the most talked about unicorns coming out of california ha -- oh we had a race

who won? >> uphill was not fair i was too heavy. >> looks like you fell behind there. >> that's the one take you won >> we'll talk about why bet on the e-scooter buzz that's hot right now. we want to hear from you, of course, reach out to the show on twitter, facebook, or e-mail us. twitter, fac♪book, or e-mail us. you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia.

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welcome back, s&p up 0.9%, and dow up 0.7%. we continued the improvement, only energy is fractionally low ere. over 2.5% gain for the telco sector, technology behind, and utilities. >> after month of speculation whether amazon would break into the health care space, the e-commerce giant announced today they are acquiring online pharmacy pill pack in a deal reported worth close to $1 billion. all other stocks tumbled on that

announce we bring in christina farr all over the story, christina, and really the back story here of walmart also wanting pillpack. how did the deal come to be? >> absolutely, sarah it was a battle here between walmart and amazon who were both interested in this asset you can see why. pillpack is an online pharmacy startup with licenses in 49 states other than hawaii so buying a company like that from amazon's perspective could spee -- speed up the process of getting into the pharmacy space by years because they the infrastructure now they have a great team of experts. if the goal, i expect is this, sell prescription drugs on amaz amazon.com through prime >> christina, we've seen your ongoing reporting on this and latest tweets say added implications for express scripps

potentially. >> yes, they are the largest benefits manager, pbm, had a big dustup with pillpack a year and a half over a contract dispute that ended in pillpack's favor i'm very interested with amazon now on board to see how the relationships between those three companies play out i suspect that by acquiring pillpack, amazon is now going to have to have deep discussions with express whether they plan to work with these drug supply middleman or disrupt them. >> and, i mean, do we have any sense of amazon's broader ambitions in health care this is first -- i remember, what, drugstore.com, a long time ago, and berkshire and jpmorgan. how do the pieces fit together >> yeah. that was all the way back in the '90s when they were interested in making a play, and drugstores, i think, the reason we did not see them getting back into health care for so long was because he got burned by that experience

so amazon tends to lie in wait until it's the right time, and now it seems like a good time given all the interest in, you know, bringing down the cost of drugs at the big policy topics right now, and so amazon was lying in wait thinking when do we make a big play now they decided to, and they have acquired pillpack, get in online prescriptions, selling pharmaceuticals, but seeing them move in other areas. the partnership with jpmorgan and berkshire, a total of one day on board, could get into primary care, delivery of care, and i wouldn't put anything past amazon the third area is true, amazon business, already selling into hospitals, doctor's office, dental office, giving them the key medical supplies they need from gauze to bandages amazon plays big in health care in the coming years, and this is one to watch >> christina, thank you very much for that, christina farr

there, and don't forget, read much more of the coverage on cnbc.com and in other amazon news, the company has a new plan to deliver more packages without the help of the major shipping companies. we are in seattle with more on that angle, courtney >> reporter: that's right. so if you are fedex, ups, dhl, one of your major customers became a competitor. today, amazon announced the beginning of delivery service partners they are going to have individual small business owners run their own business that will be delivering amazon orders the last mile, that final most expensive leg of the journey they are going to start by leasing up to 40 logo vehicles, each small business gets training and technology to be able to run these, and they'll start their deliveries at a delivery station right now, amazon has 75 of these in the u.s that's where they get their packages and roots, and amazon algorithms ultimately determine where the package goes go to a delivery station or does

that package go to a fedex or to the postal service >> this is all about scaling cost effectively if you think about the growth of e-commerce, growth of parcel delivery in general, we have to meet the growth. it's outpacing the growth of our core providers >> reporter: so amazon is not ending its relationships with fedex, ups, or any of the others, but, remember, they spent $22 billion on shipping in 2017 that's almost double what it's spent just two years before, so the hope is that this new program will help amazon get a little of that cost in customer service back under its control for that final last mile we reached out to the delivery companies. we heard back from some of them. ups says in part they closely monitors its customer announcements, but we do not speculate on the likelihood of the success or impact on ups's

business, and usps needs to earn customers' businesses every day. back over to you >> so, court, on the surface, is this bad for fedex, ups, and the like >> reporter: what's interesting is you'd think it is, and the stock performance is lower today for both of those two companies. however, one analyst has an interesting take she said, you know, actually, for ups and fedex, that last mile delivery is expensive and lowest margin. in many cases for ups, they actually have the u.s. postal service take care of that. maybe it's not such a bad thing for ups. that's at least the view of helene becker. interesting take >> absolutely. >> also, the usps fights with maybe fights with amazon or president trump pitted them against each other a little. >> amazon again in the news all over the place all right, we got just under

40 minutes to go before the closing bell, and a nice rally on our hands >> that math calculating is tough. >> it's been awhile. dow down, and s&p up .8%, and nasdaq and tk ech coming back strong today russell is a big outperformer. when we come back, chipotle stock on a roll, but fresh headlines about a restructuring plan spook investors we'll break down those ahead another starbucks' executive leave the company weeks after howard schultz steps down. the latest on the c-suite shakeup. that's coming up next. don't go anywhere. (birds tweeting) this is not a cloud. this is a tomato tracked from farm to table on a blockchain,

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welcome back to the "closing bell, everyone, i'm sue with breaking news, all too familiar scene, again, we have reports of an active shooter at the capital gazette newspaper building

located in annapolis, maryland, still an active situation. we have seen employees leaving that building with their hands up law enforcement, obviously, on the scene in a fairly heavy presence there's conflicting reports about whether or not there are injuries we are going to wait to report that until nbc news can confirm it these shots are being taken by our affiliates in the washington, d.c. and maryland area right now, what we know is there is an active shooter situation in the capital gazette newspaper building in annapolis, maryland with conflicting reports of a number of injuries we'll keep you posted on that, cz sara, backowowto dntn you >> much more on the market and rally we are seeing when we're back

welcome back, the rally lost a little steam, off a percent, and now the dow up half a percent. let's look at two stocks to watch on the move today, first off, shares of bj's whole sale rocketing higher they were taken private in 2011. priced ipo at the upper end of

the indicated range and now soaring in the early trading here we asked the ceo about competing with amazon. listen >> any retailer who says they don't compete with amazon is not being truthful there's no doubt the consumer gets value and convenience, but in the world we live in today, value retail works, and membership on top of retailers, we feel great about, and investors encourage us >> friendly investors feel well about it as well market cap of almost 3 billion dollars, 2.7 billion they had more than 200 in wholesale warehouse changes, and they offer groceries at 25% below the cost of some of their competitors. that's not with the membership fee, of course, that you have to pay. >> he said they compete with amson, but the online guys or discount retailers, and the others doing well as well. >> on the groceries. >> you want to be in that area >> they got a partnership with

instacart that delivers groceries. they have the warehouses he was open, i think, to e-commerce partnerships as they continue to expand across the u.s. another stock today, starbucks falling as another executive leaves the company's cfo retires in november, news weeks after the ceo stepped down shares down 3% quite significant. not as big moves we saw when howard schultz left, but still significant, a bad run for them, and you have to say johnson is feeling pressure changing things more >> i think he's already felt pressure down 13% for the year, and never a good sign when you see a cfo leave, but one analyst who covers wells fargo said it's a good sign they look externally for candidates for fresh ideas >> he's been at the company since 2011 all right. let's move on. it's been called the uber of

electric scooters. california based startup, bird, grew from a $300 million valuation to worth over $2 billion in less than six months. now, we tested two of these scooters for ourselves outside the new york stock exchange today. you're pushing yourself there. you know there's a motor >> you have to kick start it to get it going >> there we go the real pro >> you're too tall you need an xl >> it was, and it was hot outside today, and i have to say it's meant to take any energy use away, but i found it tiring. >> no, not at all. >> i did d >> it's electric >> i had to, like, bend my knees and lean over. >> it's growing like crazy >> it is growing fast. there's us on them making them not looking expert as we could discussing further, joining us, the co-founder of t, thank you y much for joining us to shed light. i guess the first question on this is how well does it work

rolled out across cities, how much does it cost, and where do you pick them up and drop them off? >> thanks for having me on the show excited to be on you know, the reason we're excited about bird is because we've seen it from the beginning, the adoption and enthusiasm customers show for it, extremely affordable, $1 to pick one up, and we charge by the minute, and they can be found in areas they are launched in they are dockless. they really do actually get cars off the street, which is something that car sharing has not been ail to do yet >> but there's ubers, lyfts, pedestrians, bikes, is there room for bird? >> i think there is. when you ride them, and i saw you ride them making them look easy, when you - >> i know.

>> when you ride on one of these, you truly see how easy they are to ride, operate in bike lanes, and cities are increasing bike lanes, and cities should create spaces for scooter parking. it's affordable. it's eco-friendly. it's community centric transportation >> i'm not sure if it's that safe, so who picks up the tab for insurance or injuries? is that down to the user or is that down to bird? >> you know, safety is a key concern for bird, and since the company started, they've always given away free helmets, 30,000 free helmets, only scooter company that requires the driver to have a driver's license, and they worked extremely collaboratively with cities, and so safety's absolutely paramount in something that is taking very seriously by the company >> wilfred's making sure i have

a drlgs. -- driver's license. i do, but a terrible driver. the valuation, 300 million in march, and now over 2 billion. what's the story there >> you know, valuations are determined by a number of factors. as we looked at the company, we looked at the adoption it's, frankly, something that we've rarely seen manager been investors for a long time. we think that this is just the start of a big new market, and that clean energy, electric vehicle sharing is a space we've been investing in in five years, bird is the next evolution of this, and really excited that the company chose us to be one of their capital partners in this round >> so as you mentioned, you're invested in bird saz oppo if uber was first, bird next, what's the transport phase that comes afterwards >> i think transportation is a space five years ago when we started investing in it, tech

investors say it's not a real tech space transportation's a huge space. it's one that we are really excited about. we really think that multimode transportation electric vehicle sharing is the future. as we, you know, said it, it does take cars off the road. it's clean energy. it's affordable. it's just the start with bird they introduce other modes of electric vehicle sharing, and, you know, beyond bird, you know, we continue to look at the space. we are looking at space inspiration, travel broadly, and movement of goods. these are huge injuries going through change >> quickly, i'm interested in how much you are having to fight local authorities. i've read a lot of headlines every time you enter a new city, it seems like they are trying to get you out of town. how do you deal with that, the company? >> at bird, we are trying to work collaboratively with cities sharing our data with traffic in

cities, we do not introduce scooters if they are not utilized three times per day, and we look forward to working with cities like we have in santa monica, memphis, and i think the team did a great job partnering with cities >> thank you very much for joining us co-founder bee capital i'd represent one for fun on vacation or something, but not on a day-to-day transport. >> not in heels. >> you did >> no, i put on sneakers dresses are okay >> anyway, good fun, and a very interesting interview as well. we got 19 minutes left of trade, and we are higher, but we slipped a little in the last ten minutes, but higher than we were around midday. we're up a half percent on the dow, and more on the s&p, and nasdaq up 0.9% the second round of stress tests out in less than an hour find out if the results help give the banks trading lower presently a much needed boost.

first, chipotle, worst performer in the s&p 500 after the restaurant chain announced they are closing stores. that's not all that's driving tae stock lower. deils when we come right back.

welcome back, 15 minutes until the close, losing steam a little, but a nice rally it was high as 190 in the session, and down more than 100 points, all over the map here. walgreens shaved 40 points off the average, newest member of the dow. goldman and ibm added the most points >> 15 minutes, good math there >> hard to count on the clock. chipotle has a turn around plan, and kate rogers has the details for us kate >> a special investor call yesterday afternoon hearing from the new ceo in what he called a state of the union of sorts. now the company said it'll be closing between 55 and 65 underperforming stores in coming quarters as part of a previously announced strategic review this costs between $115 and $135 million in restructuring charges.

they preachesly guided they are opening between 130 and 150 new stores this year they also talked about digital and innovation the company says delivery is coming to its app this summer, which is interesting, because they partner with door dash. this is not done internally the way panera does. digital is now 9% of sales approaching roughly half of a billion dollars and sees this as a multibillion dollar opportunity in the future. they are also testing a mobile order pickup window and wall in some of the locations in denver, really piloting this, saying sales increased double digits on digital. they are testing a loyalty program for 2019 the stock on pace, though, for the worst day since february 7th. there was a lot of analysts and investors going into the call, and while announcing a slew of promotions, the store closure news got a lot of play and investors looked for more in terms of detail and execution. back to you. >> okay. kate, thank you very much.

>> i was going to say the honeymoon's over for him >> now, we've been monitoring an active shooter situation in annapolis, maryland, and sue has the latest for us, ue? >> yes, i do, wilf, indeed, it is a still developing story. this is what we can tell you there was an active shooter situation a bit earlier occurring at the capital gazette in annapolis, maryland, still underway we've seen people leaving the building now we are hearing from a reporter that multiple people have been shot police have not immediately responded to request for further information. that is according to a reporter who was on site and possibly in the vicinity of where the shooter was. we don't have a status as to whether or not anyone has been apprehe apprehended. it's considered an active shooter incident at that particular building. they have managed to get people

out of the building. we have been seeing live pictures that came in moments ago from our affiliates down in that area, wbal and wrc so what we know now is there are injuries, multiple people shot, and nbc news is going to try to confirm the number and extent of the injuries, but it is still a developing situation as you see, i believe, those are ems workers or medics transporting some people to helicopters just off-site there's a shopping mall down the street from the building, and they have -- that is the relocation point, right outside a lord and taylor's, but the field adjacent to that is where the helicopters have been responding too so we have multiple injuries reported, and an active shooter situation. we will keep you posted. back to you, sara and wilf >> capital gazette owned by the baltimore sun too, thank you >> yep >> much more on the story and details as they come in.

we'll bring them to you. we'll keep you up to speed on e market heading into the close. close. right back on "closing bell. $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. 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.

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welcome back, fed stress

test results due out in the next hour focusing on wells fargo and deutsche bank not because of quantitative fears, but quali qualitative. that means that 40% of investors surveyed by goldman sachs think they will fair, however, the goldman analysts say with $47 billion in stress capital, the risk is minimal. on deutsche bank's side, the u.s. branch, all tested by the fed, was reported troubled by the fed a month ago, hence the question mark for them on the qualitative part that said, both passed last year in similar situations. the focus is on morgan stanley and goldman sachs, but they released statements to suggest they remain confident themselves, and investors are following their statements all bank share prices underperforming as of late down 5% in the last month. could today be the catalyst to

turn that around one says the share price move recently probably expecting poor performance if we get consensus results to expect a jump >> what about wells fargo? any sense they are punished for bad behavior >> last year, they pass the the qualitative part of the test when four months later, there was a big punishment on them it's almost as if the fed is separating punishment from the stress tests, and they have plenty of capital, in fact, because of this, they kept back buybacks and dividends compared to the others, and they have plenty of capital. it's hard to engage expectations the goldman sachs analyst think they'll pass both easily >> buybacks are preferred over dividends? >> they have been premp eprefert of the last decade, but cheap. starting to come up as a question mark whether they have to do dividends instead, but, still, the percentage balance tilted towards buybacks, but for

most of the banks, particularly, the investment banks with more flexibility. >> the key thing will be the performance, right it's been so ugly coming off of down days. >> absolutely right. kbw down 5%. six minutes left of trade. up 96 points, slipping a little bit on the dow as we approach the close, we'll have the closing countdown when we come back after the bell, hear from a congressman and former harley davidson dealer about why he agrees with the tough stance on the motorcycle makerment that's the congressman riding that hog in the fore ground wow. you're watching cnbc first in business worldwide

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1, 2, 3, go. e*trade. the original place to invest online. welcome back to the "closing bell," three minutes lefts of trade, starting with the kpw banks today. stocks down sharply over the last month here's the performance today, afternoon rally in the banks which could be an expectation of good results at 4:30 we don't know. that afternoon rally halted markets generally. if we switch now and see the dow intraday, you can see that shape of the bank performance is matched by the broader index the dow, low of the day, down 120, high 140. just off the high, as you can see, but up about 90 points as

we approach the close. half screen of the indexes, nasdaq outperformed today. up 0.9%. s&p up 0.6%. sector performance today, banks enjoying a decent rebound, also, the tech sector, but really, the telcos that are way ahead, up over 2% in terms of the laggards we only got energy at the bottom in negative territory, energies had a great couple days. bringing in bob pisani to look at oil as we bring in bob. the last couple days, wgi up 3%. >> $73 who thought the week as a whole, but up again today >> energy with a good couple days now the negative sector >> all over the stress tests when they come out in the next half hour. the dividend yes aields are get better >> absolutely. >> wells fargo at 3.

other local banks at 2.2 only 2% dividend yield we used to look forward to the day, finally let them go, pay some dividends no doubt they'll raise the dividends a bit, but they already up there the other observation on the banks, never seen them this oversold look at relative strength indicators that indicates how they perform against other sectors, there's oversold as the financial crisis ten years ago simply put, in a technical basis, those are screaming buys right now, i don't do that thing, but i tell you the way the technical looks. >> other thing to see the performance. up there for us. that's fascinating likes of morgan stanley, struggling last week, up 2% approaching this decision. >> again, look what happened to the stocks down 20%, at new lows from the year the other thing i want to talk about is while the industrials are up today, we -- there are many that are on the new low lists today, and, in fact, look at some of the big names, you can see american airlines, general di nynamics, 52 week lo, don't kid yourself, there's been

damage around the trade issue. >> dollar we can say not doing much today, but a strong week, up nicely before it. there goes the bell, though, we are up bang on 100 points on the dow at the close 0.65% or so on the s&p, nasdaq leads the pack up the best of 1% republic services ringing here, and neuronics at the nasdaq. that's the first hour, and sara continues on the other side. >> i'm sara eisen in for kelly evans. wall street swung between gains and losses we are settling higher for the dow, s&p, nasdaq, and russell 2,000. off the highs, but dow eked out a .4% gain, and tech with the star today, coming back, nasdaq composite closing up.8%, and this is the worst weekly

performance for the s&p and nasdaq since march we'll see what happens tomorrow. banks finished higher for a change ahead of the second round of the fed stress test results due out in a half hour we'll bring them to you as soon as they're out and we'll talk about it with bank investors here joining us on the panel, michael santoli, bill snead is with us in person, and tiaa company. leading on the dow today was verizon, walgreens a laggard shaving 42 points off the index, and on the s&p, mccormick, the spice maker. walgreens trailed that as well today. mike, a better tone today. >> definitely relief, but multiple things bounced where they had to, riekght, bob talke about oversold banks, overseas markets, and, again, just a little bit of a lift, if that did not happen, you would have questioned exactly why so much

downside momentum. maybe the month end worked through before today, and so, you know, good although the dow is really just picking up a quarter of what it lost in the previous three days of the week. we are still in a mode of learning if this level is anything like a floor. >> the nasdaq outperforming the other two indexes today. i guess tech had been hit hard over the last couple days. >> oh, for sure. tech is all over the place, actually, in the last week i think people are trying to digest, do they want to own growth, and do they want to own the secular winners in tech or want to try to find deep value, cyclical names that have lagged, and so they can't all work at the same time, and that's what's been happening this year, and it's been this push-pull between strong fundamentals versus macro, not just trade, but what's happening to the dollar, and what's happening, you know, to interest rates, the fed, a lot of uncertainty, and that because we don't have earnings season or company specific things happening, that's why we are so focused on it that's going to change in a

couple weeks >> risks are piling up, and, bill, gets to the question as to why are investors so kaurcautios this week. is it good face of the trade concerns is it the yield curve flattening, or is it just end of the quarter stuff? >> what stephanie pension menti. the fed is buying rates and bond tightening unwound at the same time there's not as much money to go around as there was. that's where you get this "some got to win, some got to lose, and good time charlie has the blues", and good time charlie is the overall market that's the first die nam dynamic second is vote for me, all your wildest dreams come true will this -- >> what a weird reference. >> how much longer can the stock market operate on pedro

sanchez's wildest dreams net flex has pedro's wildest dreams, tesla has the wildest dreams they are the dominant stocks with the wildest dreams. cover the history of the markets, there's not a single time in five years that if you got the wildest dreams attached to you, that you did not get tortured and asked cisco and intel what that feels like, and they tell you all about it >> mike, the other side of it? >> the other side -- >> last hour, and he said it's, like, not owning a manufacturing company in the industrial revolution >> right the other side is that just as economic entities, the companies at the top of the nasdaq and largest market tech companies are massive rety ivive relativ saw, five years from the peak, you never failed to get smoked if you were three years before the peak, you had tremendous upside and then the downside happened >> funny you mentioned that.

i ran into robert schiller at the airport in france, and i asked him, who better to ask, if we're close to the bubble in the fangs? he said, you don't know. it might be 97, your point, but what i tell people is you can't hold your breath until this thing breaks i will say this, i don't care where amazon peaks whether it's 2,000, 2200, 2500, 3,000 it will go down to the 200 mark when it breaks regardless of what the peak ends up being ask cisco, largest cap company march 27th, 2000, and they dropped 92%. >> wow >> that would be a big slide if that happens >> that's a big prediction >> big prediction. >> says the man who owns walgreens. >> i'll sell you the amazon 500 puts right now pharmacy hit today because ammon azon is buying pillpack f1 billion. cnbc reported walmart was also interested in that company

yet another company, stephanie, that just another set of sub sector taken on, but share prices reactions down to 7%, 8% to the likes of walgreens, could we see more? >> i have a double whammy because i own federal express and amazonis going after the last mile there too. i had a fun day, but i actually think some of the pharmacy companies -- i think they are down a lot and get the initial reaction, but i go back to last year when whole foods was bought by amazon and costco lost 30 points straight in two weeks time, and then - >> that was a buy. >> fast forward a year, and the stock is actually higher than what it was. i'm not saying that the dust is settled by any means on cvs or the pharmaciepharmacies, but the positioned better than wall greens because of the transaction, and i think when a company is yielding cash flow of 15%, real cash flow generation, you have to pick that. >> do people want service when they buy drugs

that interaction in a physical store? >> a combination it all depends on what people want some want that hand holding, but other people want the convenience, and that's why this company is going to do well, but it's a $100 million company in sales in an industry that's $500 billion. so this is very, very small. i'm not saying amazon's not going to do a great job scaling up, but it's going to take a long time. >> they also, by the way, have their own mail-order prescription >> yes sure >> i know there's another dynamic here jeff besos told people i'm going to grow my revenues 20% to 25%, and if i do that, capitalize me, okay so what he's looking at are these large pools of revenue in american society he is taking his turns trying to get at another 30 billion or 50 billion in revenue by the way, look a year later, his grocery thing is possibly his invasion of russia for nazi

germany, okay? in other words it's going to be winter in the grocery business and be rough because kroger and these people had a chance to answer if you notice kroger's report, they are doing well. what you have to understand is you're running a revenue growth stream, nothing's more attractive than analysts with nothing left to do but raise price targets to open up another potential stream now, there are no plans to make any money in either stream, and the profit margins in the grocery business are tiny. >> i'll argue that it's possible that this is a brilliant move for amazon, and they need to access that huge pool of revenue out there in this market, and the stocks of the incumbents like walgreens got punished too much they are big enough for the things to be true, and the speed in which you have to scale this thing for it to really start to infect numbers, the issue in the analogy with retail makes sense last year, but the difference is

you also got a tail wind from the consumer in the back half of the year, early part of this year >> yes >> nothing's going to necessarily artificially or come along to boost health care >> amazon bought whole foods because there's beta tests ongoing fresh died for six months in seattle. nobody went to amazon go we have to do something here >> the question i have, stephanie, investor in the companies, does it put a cap on the valuations the fact you have amazon in the space now? mike say there's room for everybody, not bulldozing everybody at this moment is there always a worry that's built into the valuation >> there's been this worry all yearlong that's why cvs before today traded at ten times forward estimate the, now nine times forward estimates. now numbers come down, but i don't know that they do, frankly, and, yes, you're not going to see multiple expansions >> it'll take time >> let's see

with cvs, there's the aetna transaction, 50 arms spread. get the deal done, there's 16% then we can address where we are in the cycle, where we are in pharma pharmacy, but, again, a $500 billion market, quite frankly, that's big these two players are very, very big, walgreens and cvs it will take time for this all to play out. >> is the fact they do the tie-up with jpmorgan and be berkshow what a threat it is because they are linked? >> trying to sort the if any this is the place to look, just given where the spending is in the economy for amazon it's also the place you have to look if you want to rationalize delivery of health care. maybe they philosophically fit together, but i don't think that means there's a turn i think the threat to the kind of food chain of pharmaceutical delivery was going to be there anyway because there's a lot of suspicion about friction and how many toll takers are in the middle of it >> this company will not have

lower prices they are going to have the same prices as the pharmacy so you're not getting a price discount if you're doing it for the convenience. back to your point of people are going to want that or not. >> i think we have to move on to financials, but no question, there's a lot to talk about here and the share loss concerns are out there. evercorp. called it a scene out of "game of thrones" today they finished higher, longest losing streak on record snapped ahead of the fed stress test results out today. financials up quite a bit. >> there in the end. goldman sachs and morgan stanley the two in most focus in terms of capital return. last week, there was an interesting situation they did not do well, but they came out and said the fed has it wrong. >> this is a test that was a lot harder this year, a lot of disagreement with a lot of different companies. they just happened to make their peace with it right away >> right >> i think that's the why, what we're looking for. goldman and morgan upside could

surprise we'll see, just based on the interpretation of the results. >> mike, the stocks themselves, given the sort of 5% decline in the last month >> i mean, they've obviously kind of collapsed into the announcement you'd think they are ripe to have some relief i don't think that they are declining because the market's anticipating bad news, so, yeah, you think if it's going to be a spark, it would be to the upside >> we'll have to stop for breaking news. apologies. thank you for joining us this afternoon. we'll have them back when the results of the stress tests are out. meantime, though, we've been monit monitoring the active shooter situation in annapolis, maryland, and sue has the latest sue? >> i do. here's what we know. this took place earlier this afternoon at about 2:30, 2:45 eastern time at the newspaper, capital newspaper in annapolis, maryland a reporter at the capital has -- named philadelphia dav ed phil s

politics for the newspaper, the gunman shot through the glass door to the office and opened fire on multiple employees this was his second tweet. there is nothing more terrifying than hearing multiple people get shot while you're under your desk and then hear the gunman reload he basically has been putting out information about the situation. wrc is reporting that a suspect is in custody. that's the nbc affiliate in washington, d.c. we're trying to get a second source on that we know there's multiple injuries we don't know how many at this time we do not have word on fatalities, however, we are hearing that a number of those injuries are very serious. now, in terms of how many? there are varying reports. some say it's double digits. others disagree with that. we're just going to go with multiple injuries. that's what we know right now.

we apparently have a suspect in custody, although, the sheriff down in that area just held a short news conference and called it a still active situation. they could be looking to see whether there's another shooter or devices in a building they frequently do that after situations like this we know there's multiple injuries at this point at that shooting at that newspaper back to you guys >> all right, terrifying tweets, sue, thank you very much for the update >> it is >> of course, we'll continue to look for you for more updates as we receive them on the unfolding situation. we'll keep you posted on market action seen toy,da nike earnings due out any minute stay with us here on "closing stay with us here on "closing bell." the light beer you've been waiting for has arrived. corona premier.

welcome back to the "closing bell," nike earnings are hitting about now. are we ready >> yes a beat, nike earnings, 69 cents per share, better than expected. revenue a beat at 9.7 billion as they looked for revenues at 9.4 billion. that shows increase in revenues, better than expected everyone watched north america here because investors bullish on the stock wanted to see

growth they got it. north american revenues up 3%. better than expected gross mar gygins higher at 44.7 seen as a positive, and nike, interestingly, announcing a $15 billion share buyback program, perhaps, also reflected in the after hours session. bar was set high for nike coming into the report, best performers in the dow so far this year, up more than 14%, and so they looked for the beat in north america, which they seem to have gotten a reminder, futures orders, indication of what nike expects from geographies going out forward comes out in the call now. that's a change. they want to emphasize they do more direct to consumer rather than to the stores, and also the guidance comes out in the fall sam is with us, covering nike, and what do you think of the results soofr? lo -- so far? looks like a good reporter and a good buyback >> saving a lot of money from the taxes, 6.4% tax rate

we need color on that and how much it added to the earnings, but, clearly, benefitting from the tax program, and they are using that money for buybacks. i mean, i still want to hear what they have to say about long term growth in north america, if they can drive it up, which is what we need to see, and as we look for more details on the direct to consumer and wholesale business in north america, that's going to be telling as to how that balance is going to work >> converse is small, revenues down 14% i think the other interesting thing for the call will be the commentary around china which continues to grow double digit has not been in the trade wars, but footwear and apparel not a focus for tariffs on either side, but if things escalate, that's a concern, and that's a growth spot for nike, now more than 10% of revenues >> yeah. i mean, look, i think that the fact we've had a lot of conversations as of late about the tariffs, footwear's taxed, or the tariffs are average

around 11%, and while if you look at some of the more tech items, they are taxed at 0 laying on a tariff on top of that would be quite something and majority of the tariff conversation is focusing on ip more than, you know, shoes >> greater china revenues, 35% growth >> mike, to what extent is nike rooting out itself this year versus consumers fighting back >> if you look back to october, the stock is up some 40% off the lows, and it seems like investors just bought into the program. they felt like there was an inflection point coming with regard to north america, and to the point where the valuations rebuilt itself too sam, i wonder what you think it builds in in terms of future years growth they have to return in the coming fiscal year to a double earnings growth rate >> yeah, i mean, look, they could do that. i think we'll hear what they have to say about the head winds

that could put some chi bosh on that, and they gave a preliminary look how they anticipated earnings growth, but that's going to change on the earnings call. >> sam, how important is soccer world cup? we have graphic here - >> the basketball companies. >> sure. but world cup back to business they started with ten teams in the tournament they already lost five of them, and adidas 11, but losing the world cup. does it matter germany's out. >> look, i think that, you now they do a good grassroots marketing campaign at the world cup and olympics, and adidas is a banner sponsor for the world cup. depends where you think the focus is closer to the consumers are, the better we've seen that from the

nigerian jerseys and stuff >> that's so cool. here's my take germany's already -- adidas discounted germany uniforms. adidas is on the soccer balls, official sponsor of the world cup. nike, though, apparently saw less discounts, according to ro rioters analytics. >> beating england too >> it's a shame. both teams remain in it. england and nike could win it. we'll see. >> thank you for being here. >> my pleasure >> nike up over 4% after hours kb homes out with earnings, and meg has those now. >> well, looks like a beat in the second quarter for the home builder, earnings per share at 57 cents versus 48 cents a share. revenue at $1.1 billion versus estimate of $1.04 billion. stock up there 4.4%. deliveries rose 5% coming in ahead of expectations at 2017

homes versus their expectation a good quarter for kb homes. back to you. >> big reaction, popped 5% almost meg, thank you second round of the fed stress tests results are due in moments. we'll bring them to you live as soon as they are out >> first, apple could take a big step to challenge amazon prime those details coming up in those details coming up in today's take away.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. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back, music is the main subscription, they bought the right to tv shows and amping up the news content. mike, enough to take on prime yet? clearly, building the video content, music's been a decent success. >> the idea is to try essentially be that key that unlocks, you know, all of your digital subscriptions. i think the, you know, there's demand for that idea with third party subscriptions, but more, like, news, to bundle that in with music and television, there's some appeal to it. i just wonder if they can assemble the scale of video. if it becomes anything that's compelling >> working with oprah now. >> yeah. they are doing pieces here and there, right >> interesting thing to me, right, prime on amazon started as free delivery >> correct >> oh, you get some of the videos for free initially, and now it's a reason in itself to subscri subscribe. i mean, music and free phone upgrades or whatever it could

be, could be how it starts, and they can sort of test out how much people are watching those >> i doubt apple has that in its dna to create this all you can eat, keep forcing new forces and products through prime or their version through prime because they are a curator, pacemaker, and careful about paying the creature >> great stuff second round of the fed's stress tests for banks, the results are out in a few minutes. we'll bring those to you just on the other side of the short the other side of the short break.e that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud.

welcome back the second round of the fed's stress test results are out. and leslie picker has the results. >> wilf, sara, deutsche bank unite failed to receive approval from the federal reserve to move forward with the capital plan. the remaining 34 banks tested by the fed were approved. goldman sachs and morgan stanley will be required to maintain their payout to levels for recent years, so-called conditional nonobjection to the capital plan this result was somewhat of a surprise after the firms issued statements hinting the capital is better.

that was bank's down, and the fed issued a conditional nonobjection from state street over the management of counterparty exposure under stress no firms' plans rejected on quantitative grounds deutsche bank u.s. unit built to receive approval on qualitative grounds based on what the fed determined to be material weaknesses in capital planning that will limit the distribution that the usa can pay to the german company, and they have to get approval from any payout from the fed morgan, sachs, and they already announced plans to raise dividends by 8% to 41 cents, and also announce the a 1.7 billion dollar buyback we'll be looking for more of these dividends and buyback announcements following the results. back over to you >> and, leslie, we're seeing the 2% decline after hours in after

hours, and the surprise is the statements issued last week did not really tally with the results that we are seeing today, but they have not failed. >> they have not failed based on the technicalities of the way the fed defines failures according to senior fed officials, this decision to make this a conditional nonobjection is basically saying we recognize that this is a one time tax, that you all were not prepared for given the time frame by which these tests were undertaken, given that the tax plan was announced in december, and so, therefore, we don't want to give you that black mark saying that you have received an objection from us for your plan. they just created this middle ground area for goldman sachs and morgan stanley based on the impact from the tax kit. >> leslie, thank you very much for that leslie picker this, we have to stress, of course, the deutsche

bank's qualitative failure, not quantitative failure, is in their u.s. unit only, less than 10% of the total assets. >> saw the adr that trades here, and in the after hours, now coming back a bit. >> nothing too significant there, but nonetheless, the only outright failure wells fargo focussed on qualitative grounds got through nicely >> nice pass >> focus on state street, and morgan sachs and stanley down in the after hours, and deutsche bank >> learning to see what the payouts are. >> exactly we continue the discussion, david ellisson is here, and on set, stephanie and bill as well. stephan stephanie, we discussed this topic earlier, morgan stanley and sachs a surprise here given statements last week it's a small surprise as it were because share prices are down. >> for sure, we thought that maybe the conversation with the fed would have changed the outcome. that is disappointing. i don't think this is devastating by any means they won't be able to buy back what they did in the past

anyway they were not able to buy back anything in the second quarter, so back to anything is a positive, i think, and the stock lagged dramatically year to date, it appears, that i don't think it goes down much. it's not good news, but it's not terribly -- it's not terrible. >> mike, your take on this >> yeah. it tells investors there's buy the book strictness going on with regard the way the tests are treated, so, again, it does not change the overall stories of what people expected, maybe slightly slower than some hoped in terms of buyback. >> the tests, of course, over the two weeks harder than they were last year, and let's go to david ellison joining us as well in terms of immediate reaction, david? >> well, as you said, wilfred, this was the toughest test they had in four, five years, and now, obviously, they passed it i think it also says to me that, you know, the fed is still serious about being a significant regulator here, meaning they are not backing off at all and lightening up on what they are doing or saying, especially publicly, so i think

that's a good thing. i think the other thing we have to discuss or we should discuss is whether this is really a valuable thing to have in the system on the annual basis, and that is a discussion going on at the fed. >> bill, your stake as an owner of some of the banks, jpm, bank of america, wells fargo? >> i feel better than i did. i now know their capital plans are enacted, but i think there's a little theme here. the ones mainly in the investment world, gotman and morgan stanley, right, mainly investment people, didn't do as well, and the commercial banking ones, ones that are in the entire economy, deposits all over the country, they seem to have been treated a lot better than the ones that are primarily an investment born company >> how significant is it that the u.s. unit of deutsche bank had a qualitative failure? >> i don't think it was a giant

surprise if you think about how much deutsche has been in the news lately and capital plans and changes in management, you know, i think to the fact it was not quantitative is important so i think they have to get their house in order they are working on it i don't think that's horribly significant. some people are worried about how it fails quantitatively. this is good news for deutsche >> to review, for morgan and sachs, they did not get the black eye of failing the test, but there's a limit. they can't increase limits now >> but can apply for the chance to change it within the quarter of the next 12 months rather than waiting until next year: it is a disappointment, significant disappointment, but not the ultimate black mark of a fail on your test results of the future, but particularly given that those statements last week, that suggested the fed got it wrong, pursuing normal results last

week have no implications. well, clearly, there was something to sort out once again. >> that would be a surprise, i think, to investors in an overall picture of a banking system that we should say is in very good health >> exactly >> post crisisicrisis >> interesting thing to investors and the firms themselves to take the change related to the tax law in their capital as relatively insignificant. this was basically noncash, right, and certainly deferred tax, they had to write down, wilf, so that's -- >> the tax law with a big impact >> cosmetic effects, in their mind - >> remember, they are drunk with capital. they have -- these entities have way more capital than they really like to have. so from a mathematical standpoint, bank of america could use their profits every year for the next five years to buy back stock and raise dividends because they don't need the money the primary problem with the stocks is that everybody worries about what something's going to do in 60 days. just close your eyes and leave them alone, leave bank of

america stock alone for five years, you'll wake up and be happy. >> goldman sachs already pulled back on their capital return plans after last quarter's earnings is that why they are back in the green after being down 2% when the headlines hit? >> it's been the worst of the big five, right, and i mean, i think, wells is just close, they have wells as some issues, but goldman has had such a essential performance over the last several years, and i think that because of a lot of reasons, a lot is because their business model did not change with the times like morgan stanley getting into global wealth management i think there's changes, real changes happening at the company. i think capital markets, m&a will be strong for the quarter, and i think expectations are low enough and valuation is low enough that is it a reason to rush out and buy the stock on valuation? i own it, not selling it, but wouldn't rush to buy it. bank of america and citi group on a comparison basis look a lot better >> on citi group, breaking news on their capital returnplans,

lesli leslie >> that's right. liking what they see, announcing payouts, dividends increasing to 41% to 45 cents with a 17.6 billion buyback after, of course, the results from the fed today. also, huntington bank shares raised dividends by 27% to 14 cents announcing a 1.07 billion buyback program. we'll continue to monitor these as they come over the wire, guys >> leslie, thank you for that. if we look at 45 cents per share dividen dividends, consensus was for 16.3 that's why you are seeing, you know, 0.8% after hours move in that stock phil, i mean, overall, we talked about could this be a catalyst y but citi, unexpected, there's a

couple of those -- >> there's a long term dynamic we talked about upstairs, and that is, these banks were the most hated stocks from the bottom of 2009 until trump got elected a year ago in november so they had fantastic run from 2016 to end of january, and they've been in correction correction comes because too many people pile on. value guys, only way to make money for the value guys and gals, and hedge fund guys were piling in there, and so it takes time to correct the excess of temporary enthusiasm, but these statistics today are a sign that the health of the organizations over the next three, five years, it is good, and there's a bright future if the united states' economy is strong >> leslie, you got another one for us as well

maybe not. we'll come back to leslie -- >> there she is. >> go for it >> news released from jp morgan to raise dividends from 43% to 80 cents a share, announcing a 20.7 billion buyback program american express raising its dividend by 11% to 39 cents a share, announcing a 3.4 billion buyback program. guys >> leslie, thank you very much >> 3% dividend yield at the current stock price. citi's new dividend, 2.6% yield before after hour moves. nudging back up to above broad market dividends yield >> that was a lot more than jpmorgan predicted >> it was on the dividend buyback fractionally below >> yeah. jamie dimon hinted at higher prices he was not as anxious to buy the stock. >> right >> he came through with a lot of cash return so that makes his 3450 he paid after the whale

trade in '12 and $53 on the jamie dimon bottom, getting a lot better dividends >> these numbers we see coming through in terms of citi, jp morgan yields, that put together the fears for sachs and stanley? >> just shows the industry's healthy, and, you know, they have a lot to pay out. i think this is a goldman thing that will be resolved, morgan thing resolved, and does not need to be done in public like this like high school never ended or something, but end of the day, economy's healthy, and that's why the economy's healthy, and one is leading the other, i think the banks -- this -- i come back to the comment before about is this something that has been good or bad for the economy since '08? fed came in, quasi-nationalized the companies, they continue to do it, it's helping the economy, keeping wall street open, rates low, money is flowing, unemployment -- and because of that, unemployment is low,

market's doing well, and so i think it's helped. we just have a tremendous amount of fear now in the stocks in the market about rates and trade and all the other stuff, but that will be sorted out meantime, there's nothing like making a lot of money in paying a a nice dividend. >> yeah, antwan, going into this, citi group was seen as one potential with the most upside is that how you are seeing it so far? >> well, clearly, i mean, it's been touted a lot here to date on a a llot of exposures aroundh world, the stock is cheap, and it's cheaper than it was going into the analyst day last year, and so i think there's a fair bit of upside in citi, and i think there's a lot of upside in the group. the group was down 13 days in a row, and it's never happened before in the history, even in the crisis it did not do this. so, i mean, what a great time to be a bank. you know - >> well, i mean -- >> over -- are the concerns valid flattening to levels not seen in years? that's a direct hit to profitability in terms of the

outlook. >> it isn't. i think everybody's looking at the 2 to 10 spread, and banks don't fund off two years most report higher earnings for the quarter and extrapolating the yield curve to stay here forever. we have extraal nalities that he to buy, putting pressures on yields i expect yields to normalize, fed take rates up, economy's good, strong gdp, capital in the banking system, and m&a will be turned loose good time to own the banks >> there's the bull argument >> we had a 2% move after hours as well. bigger buybacks than people expected exact numbers on that coming up after the break. everybody here on the banks will stay with us as we keep monitoring these ongoing news about dividends and picatal return plans return plans we're back in a couple minutes to the hospital with good results. we call that the golden hour.

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announcing a buyback program, and u.s. bank corp. with a dividend of 23% to 37 cents a share, announcing a 3 billion dollar buyback program, and these things keep coming in. we'll keep you posted on as they come out, guys

>> leslie, thank you very much, a nice move, particularly in the wells fargo share price up over 2% we bring back in stephan and bill as well. they passed quantitatively and qualitatively. what's the fed doing three, four months ago with the extraordinary punishment to limit their ability to grow their asset base it does not line up, does it >> no, i mean, it doesn't. i mean, i think it's a positive, i think it obviously takes steps to reduce their balance sheet. they have already announced one branch sale, and they are working hard to restore their ima image, so this is a positive that the fed is really relying to return that to shareholders in a sense, capital is trapped because they cannot grow the balance sheet yet. that's a prudent way of handling things, and good news for wells fargo. >> bill's an owner >> we're app owner, and i just

think of the berkshire hathaway meeting, and he defended it, saying they did the wrong incentives very well so where we are now is they -- that's probably the best scrubbed place in town right now. if you go back to a year and a half ago, what -- these businesses were scrubbed and scrubbed and scrubbed, and wells fargo invited themselves in for a year and a half of scrubbing, so mr. clean thinks his stock is cheap. that's effectively what this big buyback is saying is we think we are well-cleaned and ready for the future >> this is a 3% dividend yield buyback surprises the upside, but there's a slight increase already on 3% yield. mike - >> 3.2 >> broader index here as well after hours is up. >> yeah. >> in general, this is sort of that drawing under a line people hoped for. >> it would seem, coming off basically the lows for the year. sort of matched the lows from march, broad index for the bank, so, yes, primed for relief move,

and that's what we are seeing, seeing if it carries over from here we'll get beyond this, reprice dividend yields and buyback plans, and it's a matter of fed outlook. >> wondering, you're monitoring dividend and broader market >> yes, they're slightly above the largest banks are kind of -- >> pretty generous >> for years after the crisis, the line was, well, banks are being kind of utilities now, being regulated like utilities the problem was, they were utilities not paying dividends now quasiutilities paying healthier dividends. >> there are certain dividend income oriented income funds and rising difl denied equity funds and etfs that have not been able to get into bank america i think going into this announcement, it was 48 cents. suddenly, you'll start to pay these companies in dividend and rising dividend etfs and funds

that had not been there and that's a knnew source of buyers >> jpmorgan shifted more of this away from capital buyback towards dividend partly perhaps because the share price is up. wells fargo is not doing that. david, coming to you on this wells fargo, does this now draw a line under things for them does this increase the buyback is this the start of the positive upswing to them over the next 12 months >> well, certainly, i think it draws a line under all of them in terms of, you know, it's another year where we've seen the test and now we can say we're good wells fargo has been in the penalty box. they've done obviously a lot of disappointing things if one of your people said, you know, it's a scrub clean, so it's really now they've got to, you know, they've got to execute on the new management plan and get things cleaned up. i think they'll do that. just like city did it four or five years ago and everybody else who has problems gets over it. i think they've got the resource to do it

they've got the capitol hial and they'll be fine, just got to be patient. >> morgan stanley now i believe. >> that's right, one of three banks that received conditional nonapproval ans from the fed to increase payouts they are saying they're raising their dividend by 20% to 30 cents a share. but in totality, that capital return is maintained from previous years also, ali financial plans to raise its dividend by 15% to 15 cents a share and announcing a $1 billion buyback and suntrustbanks is raising its dividend by 25% to 50 cents a share and announcing a $2 billion buyback, guys. >> thank you very much the buyback, a little earlier than expected, but the very fact after that set of results that they are doing, matching their dividend, and keeping a significant buyback in place is why that stock having fallen has rallied after hours.

>> this has been fun, thank you, guys, for all being here david allison and antoine shutz. how are we going to beat this? >> earnings and this all in one day. i mean, it's -- well, we will, we'll beat it every single day. >> a republican congressman from ohio and former harley davidson dealer is now speaking out against harley's potential overseas production move and is siding with the president. that is him, riding his harley in the foreground. we're going to talk to him next. 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. receive up to a $1,250 summer event bonus on select suvs. mercedes-benz. the best or nothing.

officials just wrapping up a briefing on the shooting that we've been following all hour in annapolis, maryland. sue herera with the latest

>> sadly, the acting police chief just announced that there are at least five fatalities in this incident which took place at about 2:30 p.m. eastern time this afternoon when a gunman, at the gazette media, part of the baltimore sun system, came in and shot through the glass doors. came in and opened fire they believe with a shotgun and multiple people were hit we have five fatalities. we also have several injuries. some of those are considered grave. officials say they do expect the death toll to increase and go up that is a multiple use office building the gazette, capital gazette, on the bottom floor basically, a lot of other businesses in that building, and they evacuated the entire building they have a suspect in custody he's currently being interrogated by police as you know, we're kind of in a charged anti-media environment

and as a result of that, out of an abundance of caution, in new york city, the nypd is sending officers to all the major news organizations around the city and all the major television stations around the city, just out of an abundance of caution there's no known motive in this particular incident. but as i mentioned, they're interrogating the suspect. they'll have another briefing between 30 to 45 minutes from now. but we now have confirmation of at least five fatalities and several injuries a number of those are grave injuries at this point i will send it back downtown to you guys >> sue, thank you very much for that, sue herera meantime, some more capital returns coming out from the banks. lesley has more from us. >> goldman sachs planning to raise its dividend by 6% to 85 cents a share. also announcing a $5 billion buyback. if you recall, one of the three banks that the fed said could not distribute more capital this year than in years prior, so it should be expected in totality,

that capital return plan does not supersede those in prior years. of other banks that did approve the fed's plans, bank of america planning to raise its dividend by 25% to 15 cents a share announcing a $20.6 billion biback plan. you can see shares there were higher intraday. also pnc financial raising its dividend by 27% to 95 cents a share and announcing a $2 billion buyback, guys. >> thank you for that over the last half hour, that work. that bank of america increase in particular, mike, going down the buy back route rather than the dividend route but, again, it's a beat, and with goldman sachs and morgan stanley, they're up after market as well as a broad sector this is -- >> ready to maybe take something as an upside surprise. i think bank of america, they think the stock remains relatively cheap a lot of capital if you think about it, a lot of

capital, kind of getting liberated from the banking system into the hands of investors in one form or another. i think it's going to be a good test tomorrow if the stocks can't rally on this news, something else is going on. >> we've got a news alert now. not done on fox. now the details. >> both disney and fox appear to have set dates for shareholder votes on that major acquisition offer. that is july 27th for both disney and fox for these shareholder votes, guys. so that is the latest we're hearing both on the same day having those shareholder votes for both disney on july 2th. >> a little bit of time left for someone else >> i think they needed to get it under the wire remember, by july 28th to get the votes in and sort of hasten the process. >> nike earning, the call's going to start everyone wants to know about china. how sustainable is this uptick

we're starting to see in north america. speaking of buybacks, along with the banks. >> despite the wobble, all those shares are up. and of course some of the others like wells fargo up sharply. >> key test tomorrow >> if they can hold those after hours. great to have you back with us quest fast money" begins right now. >> "fast money" live from the nasdaq, i'm melissa lee. our traders on the desk. tonight on "fast," check out shares of nike, one of the best performing dow stocks this year, soaring after hours. the conference call kicking off right now. we'll bring you the latest headlines as they break. plus, pharmacy stocks just got am amazoned if history's any guide, these beaten down stocks could be primed to buy. we've got those details. first, we start off with a bank. it's a mixed bag at first. but check out some of the biggest players.