nervous. >> and when you've got so many people owning these same stocks indirectly through etfs. >> right, and don't know it. >> and don't know it, the unwind may be something you've never seen before. >> absolutely. thank you for watching power line "closing bell" starts right now. in for wilford frost, and trade fears sending stocks on a wild ride. we've got your play book as uncertainty spreads. a volatile day for tesla shares as the company hits model 3 production targets but can it keep up production at a much faster pace in fremont, ohio, where a catch-up plan has become a focal point in america's trade battle with canada. i'll break down the winners and losers ahead president trump asking saudi arabia's ruler to help push down oil prices

we'll debate whether that strategy could actually ease pain at the pump "the closing bell" starts right now. and welcome to "closing b l bell." we'll get to those stories in a moment welcome brian sullivan >> i believe you're another gland slammer. you going do leave me hanging? >> let's check in on brian's first ever grand slam. it's now down about a 0.25%. dow coming off toot that negative start to year s&p and nasdaq both still positive for the year. >> let's us begin with increasing trade tensions and the latest from the white house. in washington with more on

trade, trade, eamon >> reporter: he was asked about the wto, so much speculation whether the president wants to withdraw the united states from the world trade organization or not. take a listen to what he said. tell me if you think this was a veiled threat from the president. >> wto treated the united states very badly, and i hope they change their ways. that's why we were at a big disadvantage with the wto. and we're not planning anything now, but if they don't treat us properly we will be doing something. >> reporter: the president there saying we're not planning anything now, but if they don't treat us properly we will be doing something. when you talk to people behind the scenes here at the white house they do say the president has mentioned again and again privately he would like to withdraw from the wto. and that would probably be a complicated and political

maneuver just there you heard the president signify if the wto doesn't start behaving in his view, the united states might start doing something. unclear what that something might be >> we'll stick with trade here because the results of the mexican election could have a big impact on nafta negotiations as the country elects a left leaning populous candidate as president. more on what it could mean >> hey there, sara he's pledged to eradicate corruption and poverty and also increase social spending despite being someone who believes in a mump larger rule for state in the economy he's vowed not to raise taxes, not to seize property and raise the central bank president trump tweeting late last night, saying

congratulations to andres manuel lopez obrador. some experts say entment about nafta, however, may be different in mexico. >> what we saw over the last few months is a growing belief in mexico city and in ottawa that there actually might not be a deal to be had, that the white house its demands are so onerous and so unacceptable to the canadians and the mexicans that there is not a deal. now they've appointmented and nominated a reasonable person to serve as their nafta negotiator. but at the end of the day if the mexicans feel they are being pushed too hard, they will feel they need to push back >> and we learned from both presidents actually, we've spoken with him in the last hour, the president of mexico saying they spoke in the last half-hour, saying the tone was respectful and they're talking about a comprehensive deal job that would help reduce

migration. >> before you go, the big mexico etf down 2.5%, so the market responding negatively. however, have you spoken to anybody that hopes this is kind of a lua desylva type situation where the market fears the with us and over time maybe we fear it's not quite as bad as from a business per spectch >> he had a market analysis live from london and we put that question to him. is this a guy and chavez or a lula in the past obrador has been called a hugo chavez, and that's also why he moved towards the center during this election. >> michelle, thank you very much we appreciate it great insight as always. be sure to check out michelle's latest article on cnbc.com

it's a big story and she's been all over it. >> i love that show, the best show one of the best. trade war fears hitting many different parts of the global markets but perhaps none as much as the emerging markets, the eem down 8% over a month let's bring in a guy who's gotten more on the emerging markets than most of us ever knew that is great suit, my friend. listen, i don't like the eem because it's mostly an asian based etf any. but do you feel like the market is reacting fairly on the emerging side to all the trade talk, to all the trade war and currency moves as well >> yes, because the currencies have come down dramatically in emerging markets the emerging market index is down about 30%, so i can agree

there is concern about these markets and what's happening but what a lot of people forget is that this opens up opportunities. because the 30% decline is time to be looking at evaluations and some of these currencies are looking very, very cheap >> like? >> i was in istanbul just a week ago and things were so cheap the hotel was so cheap >> because it was a rather unusual election where a guy effectively elected himself for a lifetime appointment >> basically one of the positive things ability turkey there didn't have to be a runoff he got 52% if he got less than that, there'd have to be a runoff and that would create a lot of uncertainty. i think now you'll probably see a lot of stability >> what about mexico >> the thing is people forget mexico is not the problem, canada is not the problem, china is the problem

$3 $300 billion trade deficit with the u.s. it's more than any other country by far >> do you think that's a problem, china has a big trade de deficit? that's what the president has been saying. >> i agree with him completely the u.s. has been taken for a ride for last 20, 30 years and it's time to say there has to be some reciprocity between these two countries because it's just crazy to have this kind of deficit. >> i am old enough to remember, mark, even as a kid they were screams that mexico was stealing all the american jobs. china took a lot of jobs from mexico do you think there's a chance that china's labor force and their costs go up enough, that we actually see some of that return to mexico >> that's beginning to happen, but they've moved up the ladder in terms of technology so they're exporting more and more very sophisticated equipment. i go around and world and i see

the company, they're outselling erikson and everybody's else by a mile so this a big, big change taking place with china >> so things escalate from mere and we're expecting $34 billion of chinese goods to be taxed going into the u.s. starting friday and retaliatory tariffs back from china. who wins and who loses in the trade bar? >> i think at the end of the day the u.s. will win this one because the u.s. is the biggest importer in the world and china needs the u.s. >> define winning? >> of course winning means -- >> less economic damage. >> reporter: getting some reductions in the trade deficit. >> so do you buy u.s. assets, u.s. dollar, u.s. stocks on that view >> what i would buy now is those countries that are going to be exported to the u.s. instead of china, like bangladesh, vietnam, turkey these are all big producers of

garments and shoes >> one thing that's happening with china and this goes right to your area of expertise. the world cup is apparently on behind us. >> no, no, it's because you were about to talk about emerging market >> that was the cheer when we were talking about currencies. >> one of the things about emerging markets, i've got to say emerging markets are winning the world cup again. >> i like your piece about the african nations. we'll get to that in a second. let's get back to the markets now because you've got this viewpoint, which is little bit unusual, to your point as well here's the thing about china, they have what i called last week the economic bazooka. do you think china, because that's the howitzer, man, do you think they'll pull out >> yes >> but doesn't that degrade them

as a nation? >> they'll have to set themselves up for trade war with the u.s. what does that mean? they'll have to create other trade markets as well. that's why you have one belt, one road because they know at the end of the day this trade war with the u.s. could be very serious. >> i don't know if there's a bangladeshi etf. but it's an interesting idea mark, good to see you in person for a change mark moebeus from moebeus capital partners >> david is with guide stone capital management, kenny with us and rick santelli kenny, it looked like a pretty

ugly open. there were a lot of trade concerns all over the world hitting the markets. and then things have improved. >> you know what, we traded right now to 2,700, which is kind of the intermediate trade support. and it was really important that the market found some support there, that the buyers actually defend fd that position. and we traded just below 2699, held in. one of the other, the fact we did hold 2,700 when we had every reason this morning to pierce down through it, i would take that as a positive but, look, tomorrow is only half a day. a lot could happen this week but in the end i think the markets really telling you there's going to be this 11th hour deal and this imposition of tariffs is not going to be the war they think it is i think that's kind of in my gut

what the market is telling you >> almost halfway through the year, if you listen to people you would have thought the ten year bond deal, and instead we are under 3% and appear to be going nowhere anytime soon what is the bond market telling us >> i think the bond market is telling us there are a lot of global economies that aren't lifting their weight from a global perspective now inmarket in the u.s. is definitely affected by not only policy infractions when you think of central banks but reform infractions as well i think that's really an important point. because if i like our gdp we expect in three weeks or even the quarter we're in, there's already a pencil on the paper that the second quarter is going to be higher than the third

quarter. it's still going to effect the yield curve in a way that fed policy have to deal with, and therein lieathis the rub. >> let's talk about how the yield curb effects the market. how long have you expected them to rally with such a consensus trade going into the year? >> yeah, we're really kind of looking at this as a bar bell approach if we do get some economic momentum in the second half. however, if that doesn't happen we want to own some more defensive sectors like health care got the good earnings visibility, and we feel like it's well-positioned from a regulatory perspective so we would want to know own both of those sectors today. it's so difficult to know which way the markets going to go. i think the bond market is telling us, there's more weakness out there, globally we don't have the strengthen we

thought we had and that's going to create some uncertainty and volatility as we move into the second half. >> volatility is not necessarily a bad thing. but what are you calling up telling your clients i'm nervous, we've got all this stuff, the tweets, we don't know what's going to come out so how do you protect yourself >> we would say do not all go all the cash long-term investments should never go all the cash. you can own low volatility equity strategies, liquid alternative strategies, different strategies that perform better in volatile environments i think what's important to note we're probably an inflection point now. we're nine years into the cycle. there's a ton of unsernlt ocertu there. we've got trade, politics, fed policy, all of this creating a situation that's not nearly as comfortable for investors that need to be prepared for

volatility and well diversified to manage through it >> guys, thank you so much can the dow make a pretty remarkable come back today we've got les than an hour to go, so that means you have to stay tuned to find out and what happened to tesla shares are now lower despite a lot of optimism around the model 3. and president trump reaching out to saudi arabia in an effort to bring down oil prices as the u.s. puts more pressuren iran. we're going to debate where that strategy could be headed next. and you can always reach out to us on twitter, facebook or send us an e-mail. back after a break whoooo. looking for a hotel that fits... ...your budget? tripadvisor now searches over... ...200 sites to find you the... ...hotel you want at the lowest price. grazi, gino! find a price that fits. tripadvisor.

all right, welcome back to "the closing bell. just about 3:20 here on a monday the dow trying to make a come back we're down just 0.2% today the first trading day of july, rather bizarrely, it's historically one of the best if

not the best trading day of the year yeah, why? >> what's up with that >> i have no idea. your buddy jeff hirsch through that one out the other day on the heat map side you can see it's broken down economically. >> technology the best performing sector right now. in the s&p oil prices have climbed more than 12% in the last month the president is hoping saudi arabia will step in. pretty unusual tweet to get over the weekend. >> that's right. it was a big oil tweet weekend, the president saying he spoke to the king of saudi arabia and saying that the turmoil ipvenezuela were causing him to ask the saudi to quote, increase, and then the white house then backed off a bit saying the saudis have $2 million a day in spare capacity.

they can prudently use that if and when necessary to balance the market so not pulling the trigger oil market closed just under $74 million today. especially going into the inholiday when a record amount of travels, more than 45 million people, according to aaa are going to hit the road. the president is probably thinking about the mid-term elections here with that tweet gas prices, how people feel about the economy, those are reasons that he wants oil prices to retreat but right now the average $2.86, up 53 cents from this time last year a lot of folks are saying, you know, things will fizzle off after the fireworks on wednesday, guys. we'll see. >> yeah, we'll see if they fizzle out or heat back up maybe there's some fireworks to come, jackie >> we'll be watching >> yes, you will as we all will be joining us now to talk about all of this, pablo

you're an economy guy, too here's the problem i think the market may be missing. the president can call the saudis all he wants, but the saudis pushed for and got a hard won deal at opec meeting last week so even if the saudis wanted to and were able to pump more oil, they would effectively have to break their own deal to do it, something some iranians remeeine them of in a letter two days ago. do you see them doing it >> let's take a step back. saudi arabia is influenced by a lot of factors in how much it produces i don't think comments out of the white house play a particularly relevant role in their thinking as you noted there was an opec deal less than a week ago to boost supply and saudi arabia and russian will be, you know, the two countries that will provide some supply uplift over the next six

months you know, there's no question about that -- >> are you talking about the deal they've already made, tow, when you say supply uplift, is that part of the opec deal to increase gross up lift that will probably net out probably close to 6 million barrels or do you see another supply >> no, just the opec deal from two weeks ago. let's remember opec has been deliberately curtailing supply for the past 18 months those supply cuts are going -- going away they're being unwound over the next six months. to the extent that saudi has some ability to boost production beyond what they've promised to do two weeks ago, number one it's nowhere near 2 million barrels a day. and number two, they're not going to, you know, fire that

bullet unless they absolutely have to. and for example, if there were to be a war with iran or some other scenario that really disrupts the global oil market barring that, saudi is not going to pull the triggeroon maxing out their production there's really no need for it. >> i don't know understand why you don't think that the white house would hold sway in a decision by saudi arabia by all accounts we've seen king solomon and president trump have a pretty friendly relationship, and the u.s. withdraw from the u.n. nuclear deal. by all accounts it seems like saudi arabia wanted us to do that why wouldn't the saudis work with trump to do what he wants to lower prices at the pump? >> it's not a matter of any individual at any given moment, right? but saudi thinks about the oil market on a very long-term basis. let's remember they fought a price war against u.s. shale and other nonopec suppliers between

2014 and 2016, right that price work decimated a lot of oil companies in a lot of countries elsewhere. and they've been refocusing on rebalancing the market, and to a large extent they've succeeded in rebalancing the market. now they're pulling back on no supply cuts by -- it's not a matter of u.s. politics. it's fundamentally a question of how the saudi envisioned a stable, sustainable oil price that's not too high, doesn't kill demand, not too low either because we know if prices are too low, you know, we get into a point where companies are not able to invest and inventories fall that's what we've seen for the past year and a half >> the market is tight the market is telling us it is tight. all of a sudden we went from too

much oil to is suddenly not enough oil i mean how did that happen i understand libya is still off a couple hundred thousand barrels a day, iran is going to come off but the u.s. theoretically could makeover $11 million a day we could be the swing producer if we clear up some of these bottlenecks. how tight do you see this oil market getting in the next three to six months? >> so the oil market is tight. and as i said one of the reasons is because saudi and russia have deliberately cut production over the mast 18 months that's not the only reason but that's an important one. another reason why the market's tight is global demand we're now in the fourth consecutive year where global oil demand is growing above trend. long-term average is 1.4% global oil demand growth. we've got four consecutive years where we're growing above that, right? close to 2%. so you put those two things

together, opec discipline and very strong demand four straight years, inventories fall. simple as that even with as you said u.s. supply being as strong as it has been >> pablo, thank you for joining us as we see oil prices declining today. up next a big wall street call and nordstrom setting that stock lower today. and later on after five years the private company computer giant dell.

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welcome back to "the closing bell," as we head into the final half-hour of trade, let's check in with some of the individual market movers today. nordstrom is one falling down on a downgrade to market perform. cowen, also expressed some under performance of its outlet. >> i know you're big in the consumer space is there concern when you look at -- are you cannibalizing yourself at all? is nordstrom cannibalizing it's higher margin higher profit sales by having the off rack

i wonder if we're going to get to that discussion >> maybe or just broadening out its consumer base, getting prices at a discount i think it's a good point, and that is at what cost to the overall retailer in terms of spending your resources and your space and your real estate >> if you're bringing in a new buyer who would not go to regular nordstrom because they can't buy it or afford it, that's good. >> it's harder to go online and find those great deals on designer digs that you can do at some of the outlets. it's been that way in retail >> i'm going to amazon that. wynn resorts, on pace for its worst daily performance since january. wynn shares sliding after gaining revenue from macao in china. it's not only the worst performing stock in the s&p 500 -- belgium just tied the

game, i believe. it is the worst -- what happened belgium just tied the game wynn is down 8%, the worst performing stock you have to acknowledge it there's a lot of cheering going on down here >> it's "the closing bell," brian. >> bearish numbers, down almost twice as much as the next worst performing stock time now for an cnbc news update >> hello wraev everyone here's what's happening at this hour senator lindsey graham paying a surprise visit to syria, telling syrian allies it is important american troops remain in the area president trump wants u.s. troops to return home. >> i will tell president trump it's important that we stay here, help you you're friends of the united

states and believe it would be terrible new york state police say a state trooper was shot and killed by a suicidal suspect barricaded in his home near the pennsylvania state line. the suspect was later identified as 29-year-old nicholas clark, the suspect a 43-year-old school principal was found dead in his home of an apparent gunshot wound. a commission studying what to do with some of the most prominent confederate monuments is recommending the removal of one jefferson davis. the panel spent a year soliciting public input on the statues on the city's historic monument avenue. i will send it back downtown to you guys >> all right, sue herrera, we'll see you next hour. coming up heinz catch-up ke found itself in a middle of a

trade battle elon musk telling tesla employees, quote, i think we just became a real car company we'll talk tesla after the break.

tesla releasing production figures for the second quarter they had some good news, but they had some disappointing news to some as well. let's get right now over to phil lebeau >> we'll talk about deliveries and then we'll talk about production and this will give you an indication why the stock is moving lower. came in just over 43,000 vehicles it model 3 component of that was 18,440 the consensus most on wall street were expecting them to deliver a little closer to

26,000, 26,500 this comes with the news over the weekend that they didn't hit their target delivering 5,000 model 3s during the week of june there's a picture when he said hey, look, it looks like we're finally becoming a real car company. overall production 63,339 vehicles that's roughly in line with what analysts were expecting. the model 3 production in addition the company says it will be at 6,000 per week by the end of august. good news, right ual, not all analysts are buying it they see this tent, this burst of production at the end of the quarter and they're saying i'm not sure this is sustainable cfra downgraded this stock today. saying, we do not see this production rate as operationally or financely stable. the company says they believe they can sustain this rate, and

they will increase model 3 production the company also reaffirming it expects to not only be profitable but cash flow positive in the third and fourth quarter. guys, back to you. >> quite a turn around there phil, thank you. and be sure to check out phil's article on tesla up right now on cnbc.com gave hoffman and ross gerber gabe actually has a short on the stock. ross, why are you impressed with these numbers, and do you think it can be to phil's point in question, sustainable? >> of course it's sustainable. it's a ramp up curve and really the way the facility was built is without the third production line it was able to get up to that 5,000 a week was really the original goal. they sped up the process, and we expect them to actually succeed production goals in the next six months we think they're now trying to guide conservatively so they don't make the same mistake

again with expectations. just this weekend i had four or five people contact me and the excitement among the users of the vehicle is just off the charts so we're very excited about the future of tesla, and this was the moment we've been waiting for. >> yeah, that's the thing, gabe, all site the off the charts demand and they say the production can't meet that demand, and if they start to put out numbers like this, then what's your case >> well, gaslighting is a form of psychological manipulation. it involves repeated lying, and the object is to distract you from what's importantto what the person doing the gaslighting wants you to focus on. elon musk is master alt gaslighting. specifically he sets an arbitrary target of how many cars he can make in one week to get you to focus on that instead of the things that are important, like the balance sheet, like the cash flow, like the fact their financial ratios

are equal to general motors right before they declared bankruptcy and many, many other important factors. >> ross, do you have a counter. >> yeah, i have a counter because gabe is gaslighting for the coal company he owns and the fact that gabe has 50% of his assets in a coal company and he's short the clean energy future is very disingenuous because the fact of the matter is tesla is trying to solve an incredibly important goal for our society. it's not just about making money which is important and building cars it's about creating an ev infrastructure and future for all transportation companies and tesla has been successful at this instead of just being this guy who hates elon musk, you've got to focus on the real company and company has to achieve huge numbers over the next few months we expect them reaching all of their financial goals. $20 billion in the next few months, $1.5 billion, and we

expect $100 billion market cap in the next few months and elon getting his stock award. i think gabe should really just stop moonlighting for the coal companies. >> gabe, are you long coal, short tesla? >> i do have some -- >> it's 50% of the fund. you just disclosed it in a public filing. >> ross, how many car companies do you know power with coal? i thought so >> how about coal is the biggest contributor to climate change of any -- >> guys, we're getting off topic. i mind say, ross, it seems like you won coal because maybe it takes coal to run the tesla, but -- >> it does not -- >> we're not going to get into the electric grid. i'm not agreeing or disagreeing. >> gabe has an agenda. i get his agenda, but we're here trying to make the world a better place that's all i'm saying.

>> let's talk about the balance sheet. ross, does it bother you at all that tesla is asking people for $2,500 to confirm their orders and customize their car? do you think that worrisome in anyway >> the way it works is you put a $2,500 deposit and when they deliver the car you have to pay for the full amount of the car the fact they've opened up all reservations to all reservation holders and yet the reservation orders continue to increase and getting just as man new reservation, i think that is something people should consider here >> it continues to be such a battle ground, guys. we've run out of time. thank you for joining us, though, and stating your case. up next, we're going to dive

into a sector play book for the second half of the year. why it may be time to dump something we just talked about, sara, energy, and put your money into health care stocks. and later canada slapping a 10% tariff on ketchup headed to the u.s.

the second half of the year kicking off today. joining us now to discuss what sectors he thinks could come out on top, david bionco, nice to see you. the emerging markets have been hammered lately. >> emerging market asia, particularly tech stocks, china tech stocks, particularly the big cap ones that are no so sensitive to trade >> like alibaba? >> names like that >> you're not saying the names your compliance people are fine. i'm saying them. you're just nodding. >> i'm nodding >> thank you >> and then our view is emerging market asia actually is it's not just emerging markets, it's growth stocks.

think that when you think of emerging market asia think tech, consumer, think health care. what we like about emerging markets is not the economy is growing well but their economies is finally generating economic profit growth. >> when you look at some of the winners and loser, loser china and winner strong dollar, weak emerging markets i mean are those concerns going to change in the second half of the career >> we expect something to stay the same, which is growth stocks in the emerging market asia or even small cap growth stocks in the united states, we expect growth stocks to continue to out perform for the rest of year and probably for the rest of the cycle. when it comes to change when it comes to region and by size i think things will turn upside down again i think emerging markets will be on top the end of the year and u.s. banks and even european value stocks

>> you don'twerry about investing in a country, china that's really that the tussle of a trade war, trade fight >> and we are worried about trade. i think the markets are going to be very dicy the next couple of weeks. i think when this soccer game is over i think people are going to do some selling right into the yep. >> is there a soccer game on >> yeah, i think so. >> you might have heard some yelling. >> we're looking for companies that can do well beyond the trade issues >> and you see it in growth names in china david, thank you for joining us. >> just a couple minutes now before the bell. the dow jones industrial average trying >> no, it just went positive >> if you were down 180 or whatever points earlier today. >> 93. >> thank you >> dow is going public again when we come back we'll have some comments from michael dell on this network about the reason

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all right, welcome back to "the closing bell. i think we can say the dow has just pulled the belgium. what i mean is this morning the

dow features were down i believe you said 143 points, the markets have hoopened up low. belgium won 3-2 in soccer. by the way, if i just spoiled the game for somebody, i'm sorry. this is "the closing bell" not world cup tonight. the closing bell, small but mighty, my people the belgiums >> you like belgiums, huh? >> why not, like waffles >> big story today, dow earlier on squawk on the street we spoke with michael dell about the company's decision to return to the public market. here's the reason he told us for the move listen >> the last five years a lot has changed. we've completely transformed the business, become the essential infrastructure company, really changed the profile nature of the company in terms of our capabilities, a broad set of capabilities this was about simplifying our

capit capital structure and exposing the value to our shareholders. >> he also cite an investment boom in technology why this is good time to go public clearly the stocks are up. it's an unusual kind of structure we're tracking and we've got a great piece on cnbc.com by alex sherman how he actually wanted all of the m ware, but didn't get that deal >> i think if you're the new york stock exchange you're wondering it's good to have them relested, but probably the way they did it lot of investment bankers are not happy today. for more of that exclusive interview you can go to cnbc.com up next, we are coming right back we have your closing count down on what has been what are we going to call it a come back monday >> after the bell we'll take a look at the bank stocks, what you need to know for the second half of the year after an

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introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding] welcome back to "the closing bell." i'm phil lebeau with breaking news on tesla. chief engineer dig field has left the auto maker. field who has been with tesla

almost five years with the chief engineer in may. he was still in that title but in may he stepped back as chief engineer as the company was struggling with the production of the model 3 well, now, he has decided to leave the company. a tesla spokesperson says tesla thanks doug field for his nearly five years of service at the auto maker again, chief engineer doug field has left tesla now to brian sullivan with the closing count down >> thanks very much. certainly a lot of pressure on these guys either way, let's talk about the u.s. markets today is interesting the first trading day of july is actually one of if not the best trading day of the year going back 50 years, according to the stock traders almanac. this morning, all of a sudden we open up down and throughout the day we're just kind of clawing, kicking, screaming economic back and indeed the dow closing higher no big gains, but a pretty big

come back. american multinationals, american express, nike, doing its way best to keep the dow down nike one of the worst performing as well as along with wal-mart courtney reagan, it's amazing how we ran into each other how are you? >> good. what a day, right? we start one trend in the morning and by the afternoon it's different >> we start bad and end good, is that what you're saying? >> not necessarily it goes the other way, too we saw both today tech lead the way higher, small caps a little more insulated from those trade fears. really started to make a nice move higher. and tech all the bay turned around up about 1% after the session. >> it's been incredible. some big name stocks certainly

in the market. wal-mart has been out there. i believe you may know something. not a great day for wal-mart >> it's not. a number of retail stocks actually moving in opposite directions so the entire second half moving together today >> all right there is the closing bell we've got win wild, women enlisted derivatives ringing the closing bell for nasdaq which is always a great cause and the second hour of "the closing bell" begins right now >> welcome everyone to "the closing bell." i'm sarah eisen in today a reversal day as curtny said. at 1 point the dow was down as much as 140 points for session lows looks like we were going to

start off negative, and then a complete turn around s&p 500 about 03%, and the russell 2,000 index building on its gains. s&p and nasdaq falling for the past two weeks joining the panel we've got cnbc panelists. welcome to all of you. biggest winner in the dow today was walgreens while wal-mart was the biggest loser and wynn resorts the biggest loser. global stocks were fearful of the tariffs we were about to see this week and then this reversal for the u.s. >> it's been pretty consistent that it's been soft overseas the dollar has an upside bias.

all these macro seeds feeding in it was really an upward drift but still positive because i think the s&p 500 has been sort of testing these levels 2,700, we stay there we bounce that's been happening a lot in the past ten days and few months so all good and i think the picture is pretty similar. people want -- they're eager to get to learning season and they're eager to sort of try to absorb the trade rhetoric without having to worry about the true economic impact potentially of getting there >> it's not a ferocious reversal but an upside drift. >> it was quite the comeback it was better than the other way. if we opened up higher and ended down 190, we would call that a ferocious reversal >> barb, how do you feel going into the second half of the

year >> against all odds this trade overhang is very serious and very real. but you can't handy cap it we're heading into what should be a very strong earning season with corporate earnings strong, consumer confidence looks good and trump is capable of sending this market down, i think it's going to be okay the second half >> if you have kids you know when you have a child, you say if you do that again you're going to get punished. but you don't get punished yet and i feel like that's where we are in trade i bring that up for a reason you make a very important point. nothing has really happened with trade. you've got a little bit of tariffs from the canadians, ketchup, whiskey, etsetera we've had a lot of talk but not a lot of action. >> we know perfectly well the president does care about that

when you look at the talk and the actual action is going after probably 20% of our imports, that invites serious retaliation. but when you look at u.s. companies and their exports you are talking, you know, one third is ag and energy and it's very easy to find substitutes from those so i think there's a lot of talk from executives saying you cannot do this and one thing that i think is underappreciated and that is the global supply chain. something like $6 mill wherein in sales that go through abroad. so this a major impact if he continues to go through with this the mid-terms are not so far away and the countries are targeting his base >> michael dell said very similar things today on-air. john, do you agree with the sentiment on desk from barb that calmer heads will prevail? and so far we haven't seen

anything from a macro economic threat on trade. we do have the auto imports and that could be a different story. >> the pmis from a lot of countries came out today europe, china including the united states they're all very positive that's a forward indicator not only is the uncertainty not hitting yet, it's probably not going to hit for a couple of months that's making a flat market. but if you look into the dow, it kind of fluttered down, only got up.2%. the big stocks in the economy, this is glancing blow. this is balancing blow from amazon, chip stocks. the government kind of got this 20 years ago but it won't take out what is the u.s. economy right now, and i think that's the good news is the subtext >> we should talk about trade, right? it was the big winner today, has

been all year. i mean, tech, sorry. >> tech, absolutely. it's almost kind of the harbor people sail into >> is it too much of a harbor? there was a report last week where they noted 122%, more than 100% of the s&p 500's gain this year has been about ten stocks >> and that's in market value. they've more than compensated for -- >> which is great when they keep doing well but when the big man in the center goes down with an ankle injury, do you worry >> i think you would be a little more concerned if all the other stocks were outright down. in other words, if there were so few stocks that were in the positive column for half the year, i think that would be an issue. >> you referenced the stock market know the president likes to look at it. if it starts to slide ahead of the mid-terms you referenced, do

you believe there's an element to the white house that may try to help out? >> i think trump has been very clear when it comes to appealing to his base he will do whatever it takes i think there may be a bit of miscalculation this is now july mid-terms are not so far away, and i think their calculus is probably we can get all this out, we've got a big margin for error. with all corporate earnings they anticipate they're going to be up, but if this goes on much longer you're going to be running into mid-terms and all the upset farmers and everyone else gettinghea hurt by trade sections >> let's talk about the u.s. dollar up nearly 6% what does a strong dollar mean for trade, and what does it mean for investors, mike, who are looking for 20% plus earnings growth >> it blunts the earnings -- what it does is represent

another little incremental financial tightening this is globally, and i do think this is why you have a two speed world at least the equity markets and currencies are suffering and the u.s. seems like it's kind of opening up more of a gap in terms of growth and stock market value i don't know if it gets stretched too tight and you have to have something break there, but i think that's what the market has been on edge about, the idea you have the potential for global financial accidents when you have this dynamic in play right now i don't think the dollar is screaming in a way that's going to make it too high yet. >> it's not a furoegsierocious reversal >> do you have to adjust your po portfolio with stocks overseas because of the strength of the u.s. dollar? >> sara, i don't think so. i think really when you think about an exchange rate, you're thinking about the street rates hugging that capital flow and

beneath that the gdp rates for the economies. the u.s. in 2017 grew in 2.17% it's a halfway tick up, where and europe's going from basically 2.6% last year down to 2.2% japan's going from 1.7% down to 1.1% so that's the dynamic of revenue growth and international and u.s. is saying this is good and bullish u.s., and that's the subtext of basically the exchange story i would put in play. >> you're bringing up an important, john, which is europe i don't think we've talked enough about europe. china is getting all the headlines on trade we expect the same amount of headlines to chima as the same gdp to maryland. europe, though, that's a real market more than a trillion dollars exported in goods and services to europe. we talked about auto tariffs is the market focusing enough on trade with europe and currency

with europe? >> you know, brian, we're going to find out. that's a really good point i don't know of a market stock that's through enough. i think the chinese stock market, and those trade flows are front and center in the market's mind. but you bring up a good point. i think down the road it might figure out europe matters a little more than they think. >> also biggest trading partners of the u.s. and china gets firmly caught in the cross hairs. i wonder if it's a reflection of the investors around the world looking at these escalating trade tensions and saying the u.s. is the winner it's in the relatively best shape economically to withstand all of these tariffs and these pressures? >> well, i think that's an interesting point. i see it more -- because actually if we escalate, we're going to hurt ourselves as well. the way it's going we might.

our earnings are still accelerating you've got the fed committed to raising interest rates, and our ten-year yield is now very attractive visa vi european companies. and our stock market is relatively undervalued compared to others. i think that's the reason capital is starting to flow here because of the strong dollar >> even if you didn't have a lot of the trade always what you would have is an unusual stimulus with tax cuts and the fiscal spending. you have a fed seize clearance to raise rates the whole deferential -- >> the interest rate risk is a super tanker that turns slowly it affects everything in its wake it's boring but super important. all we're talking about trade every single day when the fed is raising rates. >> some people talk about the increase in bond yields and interest rates >> global debt levels have never

been higher. >> it's a little bit of an offset that's going on >> and brian, it's really about the rate of change we're still not seeing the inflationary pressures one would expect we would expect every economic cycle and it's globalization it's online shopping, all these things keeping price in advance. even with oil prices going up and going to the pumps inflation continuing to creep up and the feds continuing to creep up rates in a way that's not effective. >> guys, thank you all for joining us good discussion there. barbara durant and john blank. still more to come on "the closing bell." the banks have largely underperformed inbroader market in the first half of the year. up next we'll talk about the banks will have a ferocio ferocs reversal in the second half of

the year plus ketchup becoming one of the front lines in the trade wars ketchup. we'll look at the potential fall out from business said and consumers coming up. and of course we want to hear from you you can reach out to us on twitter or facebook or send us an e-mail. "the closing bell" will be right back 240 floors in the air.

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okay, largely most bank stocks have had a pretty rocky start to 2018. here now to talk about what the next six months might hold for the banks. ed, you're on. >> thank you very much >> two ways to look at the bank story because everybody said it was a no-brainer a year ago. the interest rates are going up, you've got to bide the bank. that has not played out. how come >> there's a lot of uncertainty that came into the markets tax reform was the best thing for the banks. and no sooner that was in place than we started these trade issues and everything stalled. >> okay, i hear you. but ed, combine trade war and soybean tariffs with why midcap

banks in arkansas are down >> that's right. i don't agree. i am very bullish on the banks you've got interest margins going up because the feds are raising rates. all we need it loan growth to kick in and this sector is going to fly specifically midcap and regional banks. >> and they have done well, right? so the domestic stuff has looked good i think one of the biggest concerns is the biggest markky names in the banking sektder ha have lagged a little bit is it the global issues affecting them more and what do you see for them now >> really we called this in january because there are several things each year that pull the banks down relative to the market if you look at '16 they under performed notice first half of the year and outperformed in the back half of the year. now we've got it setup in '18.

what happens the first part of the year where season earnings are weak, and until just last week we were really out so they couldn't support their stocks at all. they kicks back in as we get past the july earnings and then in the second half of the year when earnings start to go back up, they look more favorable. we start to see the back half of the year they on the perform at least 10 percentage points than we've seen in the last two years. >> there's this lively debate about how much the yield curve actually matters the yield curve flattens and the banks go down and then you have all the bulls saying that's not even the right metrics to look at for profitability, and also the yield curve doesn't necessarily reflect the fundamentals of the u.s. economy. >> that's right. you really need to be looking at the shortest side of the yield curve. we need to be looking at the fed. they're raising rates. and what we're seeing is a lot

of those rate moves are not flowing in through department costs. it will change, but right now as the feds raising rates our revenue is falling straight to it bottom line >> i wonder when it changes, if it does. >> and you said if and when loan growth grows these things are going to take off. but how confident are you loan growth is going to take off? if we are peak economy, anybody who is going to take a business loan has already done so >> you could make that argument. we're now talking about 3% plus gdp growth you're seeing investment whether it's productivity, ism, all the metrics are up loan growth is going to follow along. i think we're going to wind up having 3% to 5% loan growth, not 2% to 3% >> and finally we've got the second round of the stress test, banks returning capital. which names are you buying based on the health, the results, the

pay outs, the overall picture? >> if you look at the capital, the key thing you get there is underneath they're being able to increase dividend yields at 25%, been able to increase their share repurchase 25% plus. the super regional banks had the most benefit so we like banks like sun trust, we like banks like regions you've got huntington as ones producing double digits as well. they're winning on both fronts, and those are the ones that should really get the most fraction going forward >> guys, we appreciate it. we appreciate your view. important segment. up next the condiment industry in the cross hairs of a new trade war. next find out why the ketchup business could be one of the biggest casualties energy the worst sector on wall street today. coming up the fast money traders will tell you whether this trade

is out of energy stick around

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at ketchup specifically craft heinz ketchup. i'm here at one of the largest plants that produces about 2 million bottles daily. not only does craft heinz dominate about 76% of the ketchup market, but ohio where most of the ketchup is produced is a politically sensitive state. it almost always determines who wins the presidency. we spoke to this small working town who says this ketchup plant is a big source of jobs for those who live here. >> craft heinz is a very big impact on this economy in fremont, ohio. >> heinz is staple in fremont. they've been here for years and years as long as i can remember and i'm pretty old. >> reporter: experts say craft heinz now has to make a decision soon on how to respond to

canada's tariffs on ketchup. either absorb the cost or pass it onto consumers. currently it's the market leader in canada but it's facing rising competition from france's ketchup who has built its product as the canadian alternative to u.s. brand heinz. back to you. >> fremont, ohio, so what will this mean for u.s. companies and consumers? scott joining us now he has a special focus on the restaurant and food industry and again, scott, it's one of those stories you kind of listen and you go ketchup, who cares? these kind of input costs, they matter to restaurants, do they not? >> oh, they definitely matter to restaurants. look, i think the biggest impact is not going to be the ketchup that's in the big squeeze container. you actually have to pay for ketchup packets. here in the united states if you go to a drive-thru in mcdonald's

or burger king they just scoop up a handful of those packets and toss it in the bag and off you drive. i have a feeling because this is going to happen because there's going to be a slight rise in cost that the american restaurant industry is going to be a little bit more disturbing in terms of how they hand out those packets. but i think also what we have to understand is that a 10% tariff is not a tremendous amount really a company like heinz, their biggest exposure is to the input costs. and if you look at the cost of tomatoes, which is the largest input cost in ketchup, that has been steadily on the rise now for years. so they really need to find a way to cut back on their input costs to absorb any potential impact of tariffs. >> so tomato-flation may be worse than tariff nation >> i think that's a great way of

putting it i'll let you get a trademark on that >> that's why we pay him the big bucks here so scott, canada is a huge market maybe this isn't the most economically significant, but what if this happens for china what if this starts to go more global, at what point does this become a higher expense for restaurants and we start paying more >> like i said before, then restaurants are going to have to figure out how do they cut back on those cost snz do they cut back on how many ketchup packets they give out? do they look for alternative sources of ketchup for instance, you can go to restaurant depot if you operate a restaurant and there you can get big boxes of ketchup, which is generic brand of ketchup and maybe some of these companies will start going in that direction it's really hard to tell

and you're right, if the ketchup war begins to spread outside of the united states and canada, maybe it'll become a lot bigger and maybe all of a sudden of the people in washington are going to get -- you know, take notice of what's going on here. i think the big concern when you start getting into tariff wars are the higher cost ticket items like automobiles or airplanes. that's really what's going to affect people. the story here with heinz today is kind of the impact in a small town and that's the kind of thing that hits home with everybody. because you feel bad for the people who will -- you know, whose town is being generated off of ketchup and you don't want to see jobs lost because of this spat that's taking place between the u.s. and canada >> you bring up an interesting point when it comes to the tomato input cost as being more significant. you can actually go down the line and say, you know, we've

had other countries put or threaten tariffs on pork, on soybeans, even steel these markets, commodity markets swing so widely on a routine basis even on tariffs that maybe people who use them and use them for their own refined products, they're used to this idea that these costs can kind of jump >> you're spot on there. i agree with you a 10% move in the price of coffee or the price of tomatoes or the price of cotton isn't a significant amount i think the big concern is on the higher ticket durable goods. i don't see kind of this ketchup war extending to a putin war where all of a sudden the united states starts to put tariffs on gravy and cheese again, it's a great human interest story if you look at that at heinz stock today, it really wasn't

impacted tremendously by the news and i don't think it will be impacted and a company as large as heinz will be a able to absorb the cost and maybe spread it out through other products >> well, they're hoping for a miracle so they can whip up a solution >> very good, brian. i was going to say it's why company guise like campbells soup are more effective. they're also getting taxed now on soup going to canada. thank you, scott wave got an earnings alert here. >> hey, sara investors are liking what they're seeing, top quarter and bottom line results that have allowed the company to increase their quarterly dividend from 10% to about 20 cents per share. let me get you the numbers on the earnings side. eps reported 6 cents on an adjusted basis in terms of an

estimate of 58 cents on the revenue they reported $618 million versus consensus of $601 million now, in terms of what contributed to this solid quarter the company says that largely it's helped fight a lower tax basis thank tuesday the law which was passed at theened of the year which provided some relief as well as their consumer business. so, you know, as you can see they're up about 12% of on those earnings guys, back over to you >> leslie, thank you very much let's get now a cnbc news update. here's what's haeng at this hour, everyone president trump says he interviewed four supreme court candidates this morning and will meet with a few more this during his photo-op with the dutch prime minister at the white house a bit earlier today. >> very interesting, my four meetings i'll be meeting with two or

three more and we'll make a decision on the united states supreme court, the new justice that will made over the next few days and we'll be announcing it on monday rescuers finding 12 boys and their soccer coach alive nine days after they went missing in a flooded cave in northern thailand this is smome of the first footage released you can see that group basically inside the cave. they are alive it looks like they're in pretty good shape they had taken shelter up on that higher ground, but they still need to get out of that cave and heavy rain and flash floods caused a section of a state highway to collapse in northwest china and it was all caught on tape drivers realizing the high wau was falling apart and causing traffic to stop on the road. crews worked today to restore parts of that highway. that's the news update this hour >> all right, sue, thank you very much. let's take a look how the day

was finished on wall street. if you just tuned in now, shame on you but if you just tuned in you're thinking wasn't much of a day, the dow finished up 35, nothing happened couldn't be further from the truth. we opened up down nearly 200 i think sarah was 143 points, not to be precise or anything. the nasdaq did a little bit better all day long as well. so the big three index is really called the big four. small caps continued their performance finishing up.75% of 1% let's finish up today called our rapid recap. stocks selling off around the world. >> ineuropean union has issued a warning to the u.s. over the possible imposition of tariffs over european cars and car parts. >> wto needs some reforms are needed

so i think there really is a need to update and synchronize its activities >> tesla shares up sharply after elon musk said the company did in fact hit its production target for the model 3 >> there were reports there were plenty of cheering and celebrating when they finally completed the 5,000 model 3. >> computer maker dell going public once again. it is buying out the tracking stock in its software unit vm ware >> this is about simplifying our capital structure that we created to shareholders. >> macao growing in the month of june >> overwhelmingly winning the mexico's presidential election >> we just spoke with president's elect of mekxico we talked about border security,

trade, we talked about nafta the energy sector getting a shock today and trying to drag the market down. up next, though, the fast money trader will tell us whether that is buying opportunity for you. and only thing more scorching than the weather in new york right now, the summer box office thanks in large part to the new jurassic world movie. coming up we're going to take a look at what studios are on track to be the big winners and losers of the season -here comes the rain. [ horn honking ] [ engine revving ] what's that, girl? [ engine revving ] flo needs help?! [ engine revving ] take me to her! ♪

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brent crude prices fell today as the prices from russia and saudi arabia increased is this a buying opportunity wants the trade on energy? it's coming off a pretty spectacular quarter here and even since opec reached that deal increase production >> they continue to out perform for a couple of reason better price negotiations, but you also have companies that i think are running much more shareholder friendly in terms of capital. i think a lot of these guys will be offering share buy backs to support a share price that's

already run. >> dan >> yeah, one thing that really caught me with those announcements over the weekend and the president's tweeting is how resilient oil prices were. you would have thought maybe you would have had a little bit of a downdraft here but i think lot of people realized this is something kind of necessary based on some of the foreign policy moves the president has made i just mention one thing, go back to 2013, 2014 when oil topped out it really topped out coincident with the end of qe and we had a dollar that's obviously been strengthening with interest rates going up at some point i would expect that to have an effect on oil a little bit at some point earlier this year oil stocks were kind of stuck in the mud before we had this kind of recent move i actually am skeptical of the oil trade here special if you see oil indices are reacting >> the emerging market world,

some are reliant on commodity revenues i think this is actually an incredible growth story. but i still think it's how the sector is being run. you talk about russia and saudi arabia i think opec, non-opec still have more cohesion than they've had in decades, really and i think what's good for both sides is actually working. putting more barrels online ten days ago was actually good for markets. energy is defensive in this take >> good discussion, guys up 13% the energy sector in the last three months. dan, thank you be sure to catch fast money beginning 5:00 p.m. eastern time one top tesla watcher has a big prediction for the auto maker, and he will reveal what they are on that show now we've got some news coming out of the white house. >> reporter: that's right. the white house press briefing

broke up, and i had the opportunity to ask the press secretary, sarah huckabee sanders here, putting out a statement today say the president continues to undermine the economic progress that he'd made with these tariffs and trade action and here's what sarah huckabee sanders had to say when i asked her that question. >> the president is focused on protecting american workers and industries and creating a fair playing field. that's what he's hoping to do and achieve and we're confident that he will. >> reporter: i also asked sar aa huckabee sanders why steven h harper, the canadian prime minister was here yesterday. we don't know exactly what the two discussed here obviously this comes right at the point where there are tensions between the united states at canada at the briefing the sarah sanders said the united states has been nice to canada for years and canada has taken advantage of that. so it's possible there are some back channel communications

here not clear exactly what harper's role is in all of that >> it would be interesting to find out thank you for bringing us those headlines. a lot of talk of trade in those briefings. well, there are 175 shopping days until christmas never too early to talk retail we'll look at what's on tap for the sector which does include the all important holiday season and the incredibles family could not save the day at the box office their latest jurassic park movie. and up next we're going to look at disney's battle at the box office and the boardroom in its attempt to buy 21st century fox. help you with that. n jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you lr ir skoo

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. it was dinosaurs versus super heroes for a second straight week at the box office as jurassic park once again bested the incredibles sequel. >> as disney and our parent company comcast also duke it out for entertainment access for 21st century fox let's discuss now. first off, i mean okay the incredibles got second place, but they're both winning, right? i mean they're still both putting up incredible numbers.

"jurassic world" is really close already to a billion dollars, is it not >> that's right. and they are both winning. because "jurassic world, fallen kingdom" has been out for two weekends and both have contributed over a billion dollars to a record breaking june at the box office. the year to date according to our com score data is running 9.3% ahead of last year. the summer is up 15.3% we had it biggest quarter in box office history april, may, and june of this year generated $3.3 billion that's the biggest movie quarter ever so this is great place to be >> i thought the movie theater was dead, everybody's netflixing, and that's a verb now. is it maybe because the movies weren't good >> look, this all rises and falls on the quality of the

movies so last summer they didn't do so well the movies were generally not well reviewed and not well received by audiences. this year pretty much every film out of it gate, and let's put it this way if there are more hits than misses, then that's a good year with the fact like you just said with all the streaming and all these options for entertainment, the fact the movie business is booming right now shows it's not going anywhere it's an incredible form of entertainment people love, but they'll also go home and watch streaming, too people don't live by just one platform alone or just the movie theater or just staying at home. people like to do all of that and everybody's benefitting. >> brian, just to put it into the context of what works, not just good or bad movies, we're talking about sequels, huge franchises, computer animated kind of block bester spectacles. and if you want to bring fox

into it, deadpool 2 is their big release of the half year so far. what does it say about the strategy of disney or comcast if you can consolidate the studios and basically place your bets in these high probability areas >> managing the talent associated in the entire film production and development process is going to be so critical to this because to paul's point it is the quality of the output that will matter to the box office and the business of the box office but i think at the end of the day disney certainly has a good track record of supporting the talent and you could expect they will continue to have good solid output the same is probably true with universal. the bigger picture, too, if disney ends with fox will they end up with a sufficiently large

portfolio content they don't need to invest say $10 billion a year in streaming content if they do not end up with the fox assets >> thank you for weighing in on what has been a successful period here. all right, retail has been on a roll during the first half of the year. and certainly up next we're going to look at whether any kind of a trade war could trip up the retail industry during the rest of the year 's> next find out how lebron move to l.a. is for merchandisers already. we're back in a moment let's begin.

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with the second half of the year underway, we've been looking at various sectors 37

courtney reagan has a look at retail >> a strong economic backdrop is one outlook for retail in the second half. the three biggest online shopping holidays, amazon's prime day which is typically in july analysts predict amazon prime day will play a big part in back to school sales for many parents. the expectation is that the prolonged school spending season will continue a strong retail cycle that began just after last year's back to school season ended. >> next, it's time for retailers to deck the halls. last year's holiday spending was stronger than expected as president trump, change in a, europe and canada threaten tariffs, holiday sales could end up trade war casualty.

of americans do pay more for goods in the second half of the year tariffs could be the grinch that steals christmas. back over to you >> let's hope not, on the retail side, courtney, thank you vefrn. in the meantime, in sports, lebron james cashing in on his move to play with the lakers up next we'll speak to the president of one company who's seeing a merchandise sesal surge from that decision that's next on the closing bell. ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

the lebron effect already being felt by fanatics, me order sales of his new lakers jersey surging. up more than 600% last night, versus when he joined the cavaliers several years ago. joining me on the phone, jack boyle. jack, pretty quick, reaction is this all about the fact that he's moving to a bigger market >> yeah, i think we have a superstar in the nba who's making a change to a team that has a natural presence

the number one market we've sold jerseys into is l.a., we see strong sales into new york, the bay area and even cleveland. it's a big national event for one of the most significant players in the league. >> who's on top now, is it lebron or steph curry. >> as of today, it's lebron. it's the single largest we've seen, it's a top ten day all time for a single nba player that includes championships, the holiday season as well, so the demand has been much higher than we anticipated >> jack, you say cleveland we're seeing number 4, that would suggest there's not going to be a similar backlash, the way there was when he first left

cleveland when he left to go to miami. did you have a comparison for how that went in terms of sales? >> yeah, we saw when he came back from miami, sales are up over 600%. in fact, we've got a program called jersey assurance, and i fan who brought a lebron james jersey over the next 40 days can exchange it for any player on the cleveland roster as well we're excited about bringing this new program to the fans >> i was just going to ask about that you launched this in november, i guess this is the first test of how you really have to do it how much money do you lose in such a program in other words, how many people are coming in and exchanging those jerseys. >> we take a long approach to our fan base >> we think this is great for the fans, and we'll get pay back 10 times over. there's a lot of uncertainty in

sports, and we're excited to be able to offer this new jersey assurance to our fans. >> when that news broke. do you like start dancing around your house cheering. because you knew >> yeah, it was a pretty exciting time. we were prepared for several teams, we looked at all the current information over the weekend? >> you had lebron jerseys for the other teams? the rockets? the 76ers? who did you make lebron jerseys for. >> we were prepared with several teams, definitely the sixers, houston, san antonio, even but with our vertical manufacturing rights we have, we had everything cued up in blanks, as soon as we got word from the league that the signing was official, we were able to go to work right away on the lebron jerseys. we were prepared for all outcomes >> thank you for joining us. great color. president direct for consumer retail at fanatics >> i guess they were sure he was going to win number 23

>> that's the one thing we did know it's not surprising he within to the lakers, but it's surprising it was a four-year deal. >> he really wanted to be in l.a. >> absolutely. he's owned a home there for some time. >> i knew the one year versus four year. that's it for closing bell, fast money starts right now fast money starts right now overlooking times square, i'm melissa lee. tonight on fast, bitcoin is back, maybe. the crypto currency having a bullish weekend. is the worst really over we have the details, tesla flailing down its numbers. but investors took the stock to the wood shed, why gene munster has some answers. first, we start with a plagi