on prices going higher >> a couple of others doing well especially when it comes to taxes. >> nike is underperforming because of the monster run >> toss it over to michelle caruso-cabrera and mike. happy fourth >> time for the closing bell facebook falling the probe is is widening we've got a big investor >> i'm diana oleic in washington new numbers are pointing to a surge in demand. >> your prescriptions may get more pricey as pfizer raises prices on dozens of drugs. what's behind the move and the drugs impacted ahead >> and questions b about

corruption and money laundering se senning shares of glencore crashing today we'll have the details closing bell starts now. >> welcome to the closing bell we're quoigoing to get to those stories in a moment. dow was up 137 points, finishing up about 27 points nasdaq is the underperforming today. negative territory >> upward drift yesterday. downward today kind of starting or ending where we started the week and yes, it feels like we're in california closing bell at noon >> in one hour 1:00 p.m. eastern time let's kick things off today. phil lebeau has the in your opinions hey, phil. >> it's a strong june when you

look at the numbers. let's show you the largest auto headachers and all were up for june chrysler up 8% toyota, 3.6% ford up 1.t2% these were at or above expectatio expectations the price was up in june for gm, for ford $35,500. part of that increases due to the fact people are buying bigger, more expensive vehicles. we continue to see trucks and suvs being pulling people into the showrooms and the vehicles they want now. for general motors t second quarter sales were up 4.6% look at what they did with the silverado. sales up 15.7% in the second quarter. again, truck, suvs, what people are wanting right now. one other auto stock we want to highlight real quick, take a look at shares of tesla. remember a kouchl days ago when

it was at $360 a share as they said look, we hit the production target. for the model three. $316 as you see analysts on wall street, bringing up the question of the quality of the vehicles that were made tesla shares down more than 5.7% today. guys, back to you. >> earlier numbers related to electric cars. >> sales were down 22% in the second quarter general motors says we were production constrained because of the battery that's and been increased. we'll see that filter through in the second half this year. at same time, the company was shipping more to south korea, so

globally, singles were up. >> i want to underline, we should not see that decline in sales as a change in consumer taste. simply that they didn't have enough to put on the dealer's parking lots and therefore couldn't be sold >> correct >> thanks. turn to the broader markets ch s&p 500 is uparound %, but some sectors have seen much bigger gains, so as we head into the second half, should you stick with whatst been working dom chu is back at headquarters. a look at whether the trend is your friend. dom. >> all right, so michelle, that's what we want to try to focus on here. whether or not the trends we've seen are going to play out for the second half of the year, we see markets higher and over the course of the past almost 30 years since 1990, if you look at the overall picture for the russ egg el 2000, it's up 3%. the s&p up by 3.5.

dow up by four and nasdaq up by 5.5% tas positive trade nasdaq already pacing market gains now. it does so again historically seeking. health care and consumer staples, the two standouts there and their positive trade rates ones to watch. materials and energy the two laggards ones to watch here with regard to the momentum. staples and health care. staples beaten up badly. technology another big one and one to focus on more broader picture was, if you look at when the nasdaq 100, the largest cap nasdaq stocks gained 10% in the first half of the year back to 1990, the and a half averages a 21% gain that's a positive trade. when the consumer discretionary sector, one that's gained ten plus percent, the second half of the year doubles that as well. it's a positive trade. 90% of the time. so as we talk about some of the

seasonal factor, yes, not the gospel so to speak of markets. we're not going to go in these direction, but it provides direction for will we could see moves happen ng the second half of the year. back to you. >> "today", we have michael. and of course rick santelli at the cme in chicago welcome. michael, start here. growth stocks winning here over value stocks and just over a general kind of range bound feel >> i feel like the market took it as an excuse. you saw financials go through

the 200 day. sector growth like tech continue to do well and health care, staples begin to outperform a little bit so i think that probably continues and aggregate, i think a lot of the weakness we saw in cyclical was somewhat driven by the strong dollar. we had such stronger growth relative to the rest of the world in the second quarter. i think that was the bigger surprise if we get a little bit of a w k weaker dollar as that growth abates in the second half, we could see the rest of the world and the other markets catch up a bit. >> are you worried about the narrowness of the breath when you see these reports that 90% of gains are coming from ten or five stocks. reminds me of 1998 >> it i think people need look, tech's a very crowded trade we know it people who are either directly invested in tech or they're not sure they own.

the fear is i think if they use tech as an atm, if the market turns sour or there's a sense of earnings are slow and whatever, they start using atm, the move is that -- >> if they sell their winners and those are tonl winners. you're going to see them if you start to get that broader data maybe other sectors that have underp underperred. also all these global capital flow issues, i heard your discussion about the yield curve.narrowed

what does it tell you at this moment zbr it's telling me it's hard for the economy to leverage enough to overcompensate for some of the less than stellar growth outside the u.s. when it comes to the impact of sovereign securities on our interest rates. our long end represents the cumulative underperformance and the pressures and the respective countries and how it affects their interest rates this presents a real dlim ma for the fed. so what jay is going to have to try my guest in that piece was harris, larry summers, they agree in my world because they want the fed to slow down and i

understand it. it's counterintuitive. our country's economy is doipg better we've never been in a situation like this. that may be the bigger story >> ultimately, the effect is you choose different sectors in the market be f you're going to have a flat curve financials have not been able the to get the tail wind swrus not happening. >> you want to have an exposure to the cycle you want to be more defensive here we know how sustainable it is we're seeing the strength.

the question is, what's the durability whether it's rest of world catching up a little bit, u.s. is slowing down a little bit i think you want to down play the cyclicality and have some just sort of kind of ownership >> i think the question is does that mean it's game over for the cycle if we're going to trend toward defense or if it's going to be just a little bit of a stutter step >>. >> i think more of a stutter step i don't think it's game over although you may start to get depending on how these talks go, on what happens with u.s. and china and trade and european trade and all that stuff, i think you tend to be more defensive. if it calms down, then we're restarting it. >> the defensive stocks really underperformed for a number of reasons. but i mean, this is is p if you think that's what's going happen, a great time for rotation

you would have to see the tech stocks not convinceded that's going to happen the late 90s was the rest of the world looked messy a huge, huge transition to text spending it doesn't mean there's speculation, but it's a powerful, powerful trend >> protect today is different than it was in '88, '89. technology is different. it is a different story. as much it feels like '98, '99, it's a different story except for the agreements of trade on those products.

>> thanks, rick. we are revisiting this, thanks very much as well as michael and kenny. the market's come off a lit. down down eight points s&p 500 just below the flat line shares of facebook taking a hit today on reports that more federal agencies are joining the cambridge analytica probe. we'll speak with the state treasu treasurer. the u.s. chamber of commerce praised the president's tax cut last year. now the group has taken a stand against trump's trade agenda an expert will join us after the break to discuss and we want to hear from you. reach out to the show on twitter, facebook or send us an e-mail you can see the addresses there on the screen or handles or whatever they're called. closing bell is back after this.

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shift some work overseas trump tweeting quote now that harley davidson is moving out of the u.s., my administration is working with other motorcycle companies who want to move in. harley customers are not happy sales are down in 2017 the u.s. is where the action is is shares of harley today actually up a little bit. about 1.6% at the moment. of course the stock got really hit hard when they announce d th idea they were going to move some production to the eu for motorcycles they're selling in europe to try to get around these. >> 16% increase, right >> and then they're look iing at the increase in cost because of steel and the rest of it so kintd d of a noisy situation the market saying look, it's not clear if there's going to be a replacement product for harley but it's interesting and of course, 2017 sales decline before this happened shows you they were struggling >> they were having other issues before this. the u.s. chamber of commerce

announcing a new policy. the group says the president's policies are increasing the chances of a global trade war. eamon javers asked sarah huckabee sanders at the campaign yesterday. here's how she responded >> the president is focused on he willing protect american workers and american industries and create a fair playing feed that's what he wants to do and is hope ting to achieve and we'e confident he will. >> joining us now is john murphy good to have you here. tell us about this campaign. why are you doing it and how are you doing it you going to roll out commercials in key states? what does it mean? >> well, we think trade works for the american economy and tariffs don't. there is as a consequence of the r tariffs that the united states is putting in place, a wave retaliation comes against the american exports

about $75 billion worth are going to be facing these this week canada acted on sunday on the 5th and 6th, we'll see mexico and china respond we believe this is going to deal a real set back to the american economy which really is firing on all cylinders right now tax reform regulatory reform. have delivered benefits for the economy. we're worried that could be put at risk by these tariffs >> and tell me, but the how is what in? are you ruling out commercials in states where products are going to see imp sigss of tariffs? just lobbying the white house? what does it mean to have a campaign cow coming on cnbc, is that it >> we've put out a new analysis, a website. you can go to the wrong approach com and you'll see that for every state in the union, you can click on and see what are the goods that you expert out of that state that are facing retaliatory tariffs from abroad.

whether it's soybeans from one state. whether it's auto parts from another. every state in the union is feel ing a local impact from this global trade war and we're working with our federation of 2000 state and local chambers of commerce and reaching out to the congress to drive home those very real impacts for consumers who will pay much more. they could pay thousands of dollars more for a new car and to show the real costs of these actions. >> john, obviously i would assume r there are some members that would like to see other markets open have greater access to the export of their own good s. is there a way you should approach just the idea there might be retall area torre -- >> as a general rule in business, you take care of your

customers. especially your best it so happens that american allies like canada, europe, mexico, these are our largest markets in the world and for us to initiate a trade war against them is not good for american companies that depend on exports. about 40 million american jobs depend on trade and it's principally with those markets now china's different. china is engaged in industrial policies and theft of i intellectual property that merritt a response, but across the business community, we feel that tariffs are not the answer. rather, we should be working with our allies to form a common front to push china into a direction of reform that will open up its markets and allow a more, more progress towards open trade with china >> we hear that recommendation a lot, but not sure that's where the white house is going at this point. mr. murphy, thank you. >> from the u.s. chamber of commerce joining us here on the

closing bell still ahead, just as home prices were starting to ease, there's a thu report that say demand is surging in key areas going to praek down numbers and tell you what's causing the uptick >> plus, shares of rku okyu. why a firm thinks there's much more upside ahead.

welcome back about 35 minutes before the early holiday close. the market is off its highs.

modest rallies russell 200 in a little bit of a continuation trend is up almost half a percent nasdaq down a little bit more than a third of a percent. let's check individual market movers today roku getting an upgrade from oppenheimer to outperform. the firm says a rapid adoption of the channel gives them confidence in the company's able toy garner new viewership. that stock up 5.8% >> so roku is a physical product i can buy. it's a device. i attach it to my can computer they have gotten into the content creation and providing business not just a distribution. >> they have a channel i don't know if it's all third party programming. >> they have a way for you to organize your other streaming p apps it can be a cable box when you

might have hulu and netflix and your interface to watch internet tv >> kids these days all right. shares of commodities glencore are under pressure today in nigeria, congo and venezuela from 2007 to the present stock off the lows down 8%, but it had been down as much 12% all three countries, high risk areas. >> no doubt. this stock a few years ago, more of a balance issue >> with the liquidity concerns in the market. this is going to be hurdle for them to get through at this point. once you have a foreign corruption practices, boy, they become exhaustive and extensive. and they demand a lot of legal

work at minimum >> up next, amid a new data scandal, the state treasurer of illinois joins us to tell us why he's pushing for mark zuckerberg a step down >>nd three trends that could move stocks in the coming quarters whoooo. when it comes to travel, i sweat the details.

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we have news on micron >> specifically from a micron rival. united micro electronics united micro electronics is saying that a court in china has now issued a preliminary injunction against micron. umc filed these enfringement lawsuits with the mainland china courts back in january it now says with today's ruling, micron's puckeroducts face

injunction for violating its patent right there is in china it is trade iing lower. down about 10% in the past mobt month. still up u around 30% year to date other chipmakers are under pressure, too. intel, nvidia. we have reached out to micron, we'll bring that to you. >> the intermediate people's court of fuzu has ordered to cease the sale of certain products are the headlines crossing now thank you very much, josh. wonder if this is not really a real patent case but actually something related to a trade war >> you have these disputes all over the semiconductor industries, but yes, you don't know the other stocks are down, i wonder what the market is is saying about whether it's a different environment. those companies in xhin. we'll see. hey, sue >> here's what's happening at this hour, everyone. a delegation of gop senators led by richard he will she willby meeting with lavrov in moscow.

this ahead of the summit between prufrt and putin he is hope iing for better relations. >> we're here to realizing that we have a strained relationship. we could have a better relationship because we -- there's some common interests around the world that we could hopefully work together on >> amazon announcing its annual prime day shopping event will start july 16th on 3:00 p.m. it's 36 hours, six hours longer than last year it will include deals at whole foods. and the lack of an american team this year causing a big viewership decline in the u.s. nielsen report iing a 42% drop ratings from four years ago and 15% drop from eight years ago. also hurting ratings, the kickoff times. starting in the morning eastern time, some as early as 6:00 a.m.

my household was up for it that's the news update this hour guy, back to you >> coffee and soccer >> what could be better? >> thanks. facebook shares are sliding today as "the washington post" reports multiple federal agencies including the fbi, sec and federal trade commission have join ed the department of justice ice gags into the giant's b handling of the cambridge analytica scandal. telli ining cnbc it's cooperati. we provided public testimony, answered questions and pledge to continue our stance as their work continues >> our next guest is a facebook shareholder and has been call for changes for more than a year now. specifically pushing for the company to nominate new independent directors of the board and to separate the chairman and ceo positions nice to have you here.

>> so, your fund is a shareholder and facebook and as a general principle, you put forward these ideas that governance should be changed essentially have less trocontron the hands of mark zuckerberg or is it in response to the behavior as facebook with record to user data >> we've been consistent with other companies as well. wells fargo. good practice to separate the ceo, the chairman of the board we think good to have independent directors. and we're also very leery of shareholder voting that xwifs the votes to the owner >> you knew, do you make the chase or are you in charge of a committee? are you the chief investment officer? or is it by default other, you farm it out to different organizations and hence you own

it >> we yauz other investment managers we want to make sure facebook remains a good long-term investment if you look at the constant drip, drip of news out there yesterday, the news that expansion of investigations. the justice department the e we realize there's real problems we'd like facebook to get out in front of. >> back to my original question then why do you own it then zm tell your investment managers you don't like the fact mark zuckerberg controls the company with his voting shares then don't own it. >> we try to take the approach of divestment of companies we think there is strong fund talls there that we can improve. facebook can improve that will be good for our investors. for our investments in the company. if they get ahead of us. make some change, still a strong investment >> have you also, i see here you also own alphabet. a company that's worked to try

and maintain the founder's sway over the voting rights snap as well so this is something that seems like this generation of technology companies is kind of run this way for better or worse. have you actually had any kind of uptick of your point by facebook formal means that you're pursuing to try to get these changes through? >> we are working as far as shareholder process to make changes. we have been writingcommunicati told us they were in a quiet period, so couldn't be in discussions with us. this is the same thing we did with wells fargo and we have participate d in the shareholder process with alphabet as well. we just think it makes sense and more independent dense >> how long have you own id it >> oh, we've been shareholders in facebook for several years

now. we've seen good growth in the company. you've seen all kinds of scandals fake new, selling user information to cambridge analytica. eventually, these pile up and what you see is facebook utahses decreasing their time. that's going to result in less ad revenue even mark zuckerberg has admitted things are going to change for facebook. but it's not going remain the monopoly it has opinion much longer we think we want to see them take proactive steps to maintain their profitability. >> they're making the case that the control and the corporate structure is directly related to you know, whether it was the nondisclosure of some of the privacy braeeaches we now know b about. i guess trying to reconstruct how things might have been different if there was more independent representation of

the board and other things >> right now, mark zuckerberg controls that company. he has grown a tremendous company over time, b but when it's reached a certain size, we think you should have more independent directors on the board. people with expertise in privacy and data and we think that would potentially have helped avoid some of these pitfalls >> what if he keeps ignoring you? >> well, we're going to keep communicating. reaching out to other investors. we've worked with the state of new york we reached out to other institutional investors and hoping to build a consensus here and make some change because this is a company that's had explosive growth but we think now is the time to bring in some other voices we think that more representation, more independence will be better for the company in the long run. >> at some point, if your questions don't actually turn into anything, i mean at some point, if facebook ever going to change, it's going to be because he believes it's really hurting

the share point, share price at this point that we are having investors leave because they don't like the structure. at what point do you draw a line in the sand and say enough is enough, we're going to sell these shares because we're unhappy with the governance? >> we've seen other stock pickers dumping their facebook stock. we have not reached that point yet ch but we're constantly looking at news. constantly checking third party researchers. and whether he make a decision sometime in the future >> what do you think zuckerberg's next step is? obviously short of rejiggering all the struckture, but in the response of the news of this widened inquiry, what should he be doing now in terms of testimony to congress and things like that? >> i think the answer is more transparency a lot of the reason there's uncertainty is because they've been a very closed company wen whef reached out, we've been met with stone walls

we'll keep knocking on the door. trying to get in, get nor information because we think that if there is more transparen transparency, more disclosure, that would be beneficial, but our patients will eventually reach a limit. >> all right michael, thank you very much for laying it out. illinois state treasurerer and you saw facebook shares down about 2% today we have about 20 minutes left before the closing bell here on this holiday shortened day dow down 71 points and they've been up almost 140 earlier the russell is still positive, but nasdaq leaning to the downside with the chip stoms >> do you think the micron news may have something to do with this it's pret it startling from -- >> tech was weak in the morning and did add some pressure once we got the headlines home prices seeing their biggest jump in four year, but many sellers are choosing to stay put rather than profit we'll explain why. >> and dan lobe making a play to

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take a look at the airline stocks delta down the most and this is with some deutsche bank downgrades of those companies. american, delta and united went up from hold to buy i think they were upgraded to buy and despite that, the stocks are down a little bit. we have fuel costs are a concern as well. maybe i don't have the moves straight on the analysts, but obviously this has been a weak group within the transports and remains weak now also saying global partners could be an issue in the industry have all those global -- >> with all the trade issues >> and if you thought home prices were starting to ease, think again. according to new data. home prices have made their big e jump in four years head lett's hoed down to diana oleic. >> hey, diana. >> hey, michelle and as hot as it is out here today, home prices are even hotter values in may jumped 7.1% compare today a year ago

the biggest annual jump in four years according to core logic t. supply of homes has been b shrinking for three years and it's not all the homebuilder's fault. they are increasing protection, although slowly. part of the shortage is being caused by quurcurrent homeowners about a quarter of buyers who own home said they will not move in the rate they get on their next mortgage is one percentage point higher than they have now. >> half of all homeowners a mortgage today have a rate of three and three quarter percent or lower and so when they're looking at a 4.6% rate, they say maybe i'll stay put a bit longer. that's constraining some of the supply coming fre ing xising iny >> during the recession, the rate fell below 4% and it's now inching close tore 5%. millions of homeowners refinanced to those rock bottom rates and the idea of not just a higher rate, but a competitive

pricey house hunt doesn't give a lot of owners a push out the r door we've seen applications drop throughout june, suggesting fewer sales this summer. more on cnbc.com back to you guys >> bottom line, diana, there's a bugler down here, so if it's loud, i apologize. macy's fireworks tomorrow. the bottom line is there's constrained supply >> absolutely. lean supply. you have people who don't want to put their homes up for sale you have homebuilders only build ng move up and higher end market and you have all of those lower priced homes that we saw during the foreclosure prices they are bought up by investors and turned them into single family rentals, so really, really a supply crisis causing these prices to jump higher. >> all right we konlt continue to see these. thank you very much. and be sure to check out diana's latest article on cnbc.com with just about 13 minutes left

before the bell, you see the dow trading down to its lows for the day. down 73 points nasdaq down more than half a percent now. russell 2000 still clinging to a small gain when we come back, this restaurant chain is up about 55% this year. we'll reveal the mystery stock and discuss the outlook for the second half of the year. >> later on, we're heading outside. we're going to play a round of what's calling corn hole yep. how the american corn hole league is trying put this sport on the map i'm going to teach santolli a lesson or two. you ready? >> yep the world is full of more possibilities than ever before. and american express has your back every step of the way- whether it's the comfort of knowing help is just a call away with global assist. or getting financing to fund your business. no one has your back like american express. so where ever you go. we're right there with you.

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zbliefrmt welcome back to the closing bell we're seeing a selloff here in the last hour. the dow jones industrial average is now off triple digits just happened a few moments ago. it's the lows much the settings. the big drag mike san tolly pierce off by 1 %. still the majority of the sectors are in the green maybe because of this there's something coming out of china.

essentially you've had a little bit of an almost round trip, but not quite in the past two days shares of campbell soup on the rise they're up a few percent earlier. there's some activist news the new york post off 2% now, the new york post is saying that activist investor dan lobe of third point wants to shake things up at the country's biggest soup maker hedge fund is reportedly in talks with family members who own approximately 41% of the shares this has been an issue for a bit here the company was kind of reviewing strategic options. obviously, they recently parted with their ceo the market has viewed campbell as a potential seller. not clear if there's anything truly in the works, and the family has held fast for really decades now when many people thought campbell should be a

seller >> you used to work at dow jones. >> yes >> there are so many different politics when the family is the owner. wow. only a $1 billion market value right now. a lot of family owners might feel like that's low a lot of debt on top of that as well we'll see how that plays >> speaking of food, here's a check on how some of the restaurant stocks have been performing and performed this year red robin, it's down, though, 14%. what can we expect for the second half of the year. cnbc's kate rogers has the second half restaurant playbook. hey, kate. >> hi, michelle. well, here are three predictions for the second half of 2018. delivery will continue to play an important role. you can expect more integration

like from chipolte bringing delivery to the mobile app later had summer, and domino's, now allowing customers to choose hot spots where they can have items delivered in unique locations like sports arenas, beaches, park, and more every day value at olive garden, as is dine brands with appleby's. coffee giants like dunkin' donuts and starbucks are offering discounts in the afternoon. number three, innovation is key. analysts say innovation in two big areas. marketing and menu we've seen a lot of buzzy ad campaigns, including one from i hop, changing its name for the time being to ihob to debut a burger, but beyond just getting a lot of play on the internet, those menu changes matter to the consumer we've also seen it from mcdonald's this year with their fresh beef quarterpounders and

more recently dunkin' donuts brought donut fries, including a mexican chocolate shake and. >> united and microelectronics, which issued that release, which saying a court in china had issued these preliminary injunction well, micron is now responding in a statement to cnbc, let me bring that to you, saying that, in fact, it has not been served with this preliminary injunction referred to in these statements by its competitor, united microelectronics further, micron saying it will not be commenting further until the company has had a chance here to receive and review documentation from the people's

court in china united microelectronics filed its patent i object fringement lawsuits against micron with the courts in china in january this year, but now some back and forth between these two. guys, back to you. >> yeah. it's raised all kinds of concerns if we don't know the details, as you are pointing out yet, because we haven't heard directly from the company. when i look at the midday selloff here, the last hour selloff, and when you look at the members of the dow that are getting hit the hardest, nike, caterpillar, apple, you wonder if people are wonder -- anybody who has a heavy china exposure, are they worried this is some kiech signal from the chinese government >> thanks very much, josh. we have news alert on tesla. we're going to actually go to the break. we're going to have the closing countdown when we come back whoooo. looking for a hotel that fits... ...your budget?

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everyone likes them. you like them. but you'd like them better if you made more money than they do. don't get mad at your well-liked neighbors. get e*trade. >> i'm phil lebeau with breaking news regarding tesla take a look at shares of tesla a break and roll test as it was manufacturing the model three and the final days of june now, the break and roll test is a standard test within the auto industry where at the end of the production process they are testing the alignment of the brakes in relationship to the rest of the vehicle.

to be extremely clear, we drive every model three on our test track to verify braking, torque, squeal, and rattle there are no exceptions. this is why you're seeing shares of tesla down more than 7% guys, back to you. >> thank you very much adding to the pressure on the nasdaq, you look at the dow. down about 127 a real air pocket has opened up in about the last hour downward drift tech was weak all day. facebook had trouble in the morning. those reports of a widening probe of its data scam in general, what we're seeing is an unwind of yesterday's trade yesterday we had a weak open we gained steam to the up side through the course of the day, today it's been the reverse. i do see the dow at 24 1 73 it's still above where it was yesterday morning. >> at the lows of the session, nike, caterpillar, the big layingers on the dow the big topic of discussion on

the floor is china trading we're working towards friday, and the u.s. administration, $74 billion of tariffs on china. >> that remains -- heading to friday thank you very much. ringing the bell here at the big board is macy's. ahead of the fourth of july fireworks display at the nasdaq. it is ing. the biomedical company, and michelle has a second hour of the closing bell right now >> welcome to the closing bill i'm michelle caruso cabrera. i'm told those were cold pier pyrotechnics far worse than the way it started. dow jones industrial average finishing off by triple digit. selloff coming in the last 45 minutes of the session 24,195 below the 24,200 level s&p 500 at 2714. the nasdaq getting hit the

worst. we'll talk a lot more about that in terms of percentages at 7,502, and the russell 2,000, the small caps continue to outperform with these concerns about trade, which we think hit the technology selctor today we'll talk in our ebs change at the top here shares of facebook dropping on more fallout from the cambridge bill smeed super smeed capital management the biggest winner, hi, ladies and gentlemen, the biggest winner on the dow today was johnson & johnson. the nike was the biggest loser over in the s&p scanna corp. was the biggest winner micron the biggest loser that's exactly where we're going to start mick micron technology off by more than 5% when josh lipton broke in with word that there was a court ruling in china. not confirmed by micron at this point. there had been an injunction

against the sale of the products and gary firestone, we look at this and wonder,okay, maybe it's really a pat ebt infringement case like the headlines say, or do you worry that it's a big broader push by china in what we expect will be retaliation from them as a result of our tariffs? how much do you worry about that >> well, michelle, that's obviously a risk in this type of geopolitical environment when we've got concerns about a trade war, you have to expect if you are in the administration that if you put sanctions and tariffs on products from china, that china is going to do something that hurts the united states. this is not that surprising. it's unfortunate for the chip companies, and micron, you see what happened today. what people are going to worry about over the next few days is whether this is going to spread to other companies in the tech sect or or other industries. >> bill, what do you think we're showing people that so far micron says they haven't been

served with a ruling blocking their chip sales in china, but just those headlines tell you just how much risk there is in the market when people are concerned that the trade war is going to escalate. are you investing around those concerns or ignoring them? >> well, the first thing is that it pretty much ties it for the end of 1999, and, therefore, that sector has got the positive psychology of the market completely invested in it. when your kblglass is completel full there's never just -- you go from zero cockroaches a month or so ago and when the sector goes completely out of favor all people will see is cockroaches.

>> where are we as we head into earnings season with regard to those dynamics >> sure. well, that's a very good point we've had so many mini kricrisis this year, and you can look at the ebola virus going back a way. you can have so many incidents and event that is can cause a lot have fear in the market and then two or three days later, you know, we're fine remember, the market sells for less than 16 times earnings right now. it's essentially flat for the year in terms of technology being too high, a percent for the s&p, you know, i really challenge that,

and i'm not a big tech officianado. if you look at technology across the board, the biggest companies in many sectors, if you look at consumer discretionary, netflix and amazon, they're tech companies. we cannot help but be drawn to the growth industries and platforms that are dominating the world. not just the united states i have less of a problem with that than valuation, and we don't have particularly high valuation right now if you look at the pe of the market. some of the sectors have been miserable. >> mike. >> well, your last point about technology is exactly where bill smeed had left off where he seems to suggest that he is worried about the breadth of the market here. that it's way too narrow >> mike's point is really well taken. one of the biggest political problems in the united states is that so much of the success of the united states economy is going to so few people right? that's a theme we hear over and

over again one of the reasons is that mike is right the united states economy could do really, really well for the next three to five years without a great deal of success for the employees of the seven or eight companies that have dominate the stock market right? they're not buying that many houses they're not living that many lives. they're not having that many children to where if they cooled off for a while, mike is right you could build a lot of homes you could do a lot of banking. you can do a lot of living without this just total unequivocal fixation on all things technology-oriented. he has more news on tesla, phil.

>> mike, take a look at shares of tesla this stock was selling off for most of the morning, but the selloff really accelerated once there was a report, oh, about an hour and a half ago that tesla eliminated part of the production process a park called break and roll we're not going to get too technical with you here. essentially, the break and roll part of manufacturing a vehicle is where the vehicle towards the end of the assembly process is put through a series of tests, some with a diagnostic machine to make sure that the vehicle meets not only that the brakes are working, the vehicles, the wheels are in alignment, but that it's meeting specifications tesla has confirmed that it eliminated this break and roll test as it was doing the production surge of the model three. now, tesla says it did this because the test is redundant, and also, it does check the braking of all model threes and did for all model threes that were built in the last week of june the company issuing a statement to us within the last hour

saying every tire we build goes through rig husband rugs quality checks and must meet exacting specifications, including brake test to be clear, extremely clear, we drive every model three on our test track to verify braking, torque, squeal, and rattle there are no exceptions. what tesla is saying here, yeah, we eliminated the brake and roll test as we were manufacturing these vehicles, but that did not compromise the safety of the vehicles, nor the quality of the vehicles we considered the test redund t redundant, and that's why as we were doing this production surge, we eliminated it for the model three. by the way, half -- we have followed up to ask tesla if it's going to bring back the brake and roll test as it resumes -- guys, rough day for shareholders of tesla as that stock down more than 7%. >> and, phil, obviously, you know, you sort of take tesla's comments about how they insure the safety as they complete these cars

on one hand. on the other, of course, the market has taken this in the context of, you know, it seemed like the company had to so to speak empty the tank just to get to their production target, and, of course, you saw all these high level departures of executives that might or might not have something to do with this >> that's why the stock was under pressure once they announced that they hit their production target of building 5,000 model threes per week, and many people said, well, look, we're going to sew a relief rally because they hit that target. well, look at the analyst notes that have come out since then, mike almost all of them have said we're a little bit suspicious about the quality of the production surge they're not saying that these vehicles are unsafe. what they're saying is this a sustainable way of manufacturing the model three going forward from here? that's why we saw pressure on shares of tesla yesterday, and it really accelerated today. >> certainly has.

>> he finds out the church needs to be repainted, so he puts a real aggressive bid in, and he gets partway through painting it and realizes he is way underbid the job and starts cutting corners. six months after he gets done painting it, he gets a call in the middle of the night during a rain storm from the pastor and he says you got to come down here he comes down here, and all his paint job is running off the church building, and the pastor says go into the church and do your business with god he says, god, forgive me god says repaint and thin no more it looks like elan musk needs to repaint and thin no more here.

charles schwab lowering their etf trading fees this year carrie, it's just getting cheaper and cheaper to do this automatically and not have actual managed portfolios anymore. >> well, there's been this move, obviously, to index funds for years now. i think the most interesting aspect here is that etf's have been no commission at many of the firm's offering them for years. now they're offering no commission on other people's funds. therefore, i don't think they make any money on it at all. they must be gathering assets. it's about a market share gathering game, and fidelity and schwab are doing it, and so van garde has to do it, and i don't

think that there's a big profit motivation i think it's a competitive strategy and, you know, there are successful companies, good luck to them, and i can't think smaller firms are going to be able to follow it. this is very different from whether active managers can compete with index funds you know, we've established that there are many places for index funds in portfolios, for institutions, that doesn't remove the importance in some places of active managers for a different use and different style. >> i mean, some people have made the case that chasing the lowest fees is the new performance chasing. i don't know if that's really the way it's going, but it's amazing how this race to the bottom led by a not for profit van garde has gone let's stay with, yeah, carrie. sorry. >> not for profit. i mean, i was just going to say that's the point there van garde, we know it's a wonderful company. a nonprofit. this is definitely nonprofit >> yes

mutually owned staying in financial services. a new report from the "wall street journal" says goldman sachs and morgan stanley received a helping hand from the fed on this year's stress test fed officials offered the banks the option of freezing their pay-outs at recent levels in order to keep from kpleegcompley paying the test. the first deal of et cetera kind since the start of its annual test is this a sign the regulate overs are easing up on the banks? bill, i guess there's two ways to sort of view this one is, in fact, that regulators are going a little bit easier or taking some other kind of mitigating factors into consideration, or, two, that morgan stanley and goldman stacks are running closer to the line than we thought >> well, i always think of this as a household standpoint. how many people do you know have organized their finances around what it will be like in the next depression i mean, it's one thing to be a good steward of your financial resources, but these folks stress test are organized around

the most horrendous unemployment and the most horrendous economic circumstances. the fact they're easing off a little bit is like, okay, you have had your boot on their throat for eight years we'll back off a little bit. >> my grandparents went through the depression, and they lived the rest have their lives as if they were worried about the depression carrie, you know, i look at this i look at this news. i think back to the financial crisis i say, you know, we predicted these guys were going to be regulated like utilities here we are. they're regulated like utilities. they kind of act like utilities. they're not very interesting anymore. >> well, it's amazing that we have had people predict across the sort of expertise front of cable news that financials are going to be the big group of the year they certainly haven't been. they've been under performers and both goldman and morgan stanley are each down over 10%

for the year. not the interest rates that are not going up the way people had expected, and so i think that it's a disappointment in financial services across the board and the big banks and big investment banks are suffering because of this. >> she's right it got to be a crowded trade at the end of

january. i don't agree about the profitability of these organizations. virtually 1 00% of the profit they make to their shrls because of the overcapitalization of the bank these -- these banks -- in many ways they're overcapitalized now, in the scheme of a ten-year run, everybody goes through these corrections. the stocks were hotter than a pistol last year through january. they correct correct for a year. you know, that just shows you the mentality of the stock market right now almost everybody invests on three to six-month time frames, and the truth of it is wealth is created over ten years >> point taken lady and gentlemen, thank you so much gary firestone and bill sneed, good to have you on. >> happy 4th >> happy 4th yes. >> absolutely. >> micron, now denying a report that has been temporarily banned from selling chips in china. coming up, we'll look at whether

there's still trouble ahead for the tech sector nonetheless. zr >> plus, president trump has promised bring down drug costs pfizer just became the latest drug maker to raise prices coming up, we will discuss whether it continue to be business as usual for the industry as e despite president trump's threats.i have s save up to 15% when you book early at hollidayinn.com with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates.

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>> pfizer shares higher today after the company raised prices on dozens of drugs meg terrell has the details. hi, meg. >> hey, michael. remember when donald trump remembered drug prices come down drug makers didn't appear to get that memo with the number of companies raising prices on their medicine to kick offer the second half of the year. it was less than two months ago that trump unveiled its blueprint to lower drug prices you may remember biotech and pharma stocks jumped that day. then have since continued to appreciate well, then the president made another promise about drug prices >> we're seeing a big tremendous improvement, and you're going to have some big news i think we're going to have some big -- some of the big drug companies in two weeks, and they're going to announce because of what we did they're going to announce voluntary massive drops in prices. >> that was may 30th rather than a voluntary massive drop in drug prices, what we've seen is basically business as

usual. just this week in the first two days of july according to wells fargo, there are 104 price increases on medicines a number of those came from pfizer, which raised the list prices of about 40 of its drugs by as much as 9% the hikes were on drugs including chantix and zo lot of the. that's the second 9% increase for that drug this year, following one in january pfizer also poins out, though, it did lower the price of five drugs. >> all right thank you very much. meg terrell. >> meanwhile, the ibb, that's the nasdaq biotech etf climbing 4% so far this year. keep in mind, monster run in 2017 biotech, is it going to pick up the steam in the second half of the year >> let's before in les at e squared capital management senior analyst at bernstein. both here at post nine good to see you. >> thank you pleasure

>> we talked to -- we heard about the pfizer move here drug pricing does it tell you anything about the environment in terms of whether, in fact, more companies will feel like they had clearance to do so or -- >> there's no mechanism by which the government can lower prices. unless the companies do it themselves, it's not going to happen this is our view and as you can see, nobody has done it, so i -- we would say it's price increases as far as the eye can see. that may be wrong philosophically, but it is the case >> it's so funny when politicians think they can wave a magic wand and capital will move in ways that they just declare unto themselves. >> obviously, short of negotiating drug prices, there are all these other things that nobody has you made a run at ronny, how is the group -- let's say the biotech group for the second half of the year? it actually always strikes me, despite the fact that we talk about the etf, that it's in a particularly difficult sector to own as a basket.

just because of idiocincratic things going on, individual products each company how are things in general? >> that's why there's so much long-short money no matter if the drug ticket sector is doing wrl, there's a mile to be made because of individual drugs and the individual drug markets. overall the large caps are fairly cheap they're mostly eight to ten times ebida. they're all facing a first generation pat ebt expiring in the -- they're suffering from that >> gillead amgen. cellgen, regeneron >> the pipelines are good internally and in terms of what they can source from the midcaps coming up, and there's a good level of ini don't he vegas. we think there is going to be some uh-huh mpf. the big question is the level of rhetoric come into the november elections. in a way the president hugging this issue of drug price and

takes away a weapon from the democrats. if everybody is agreeing, there's not much to debate my take is that we'll see some appreciation, but still enough discussion about this that we're not going to see a massive step-up. >> that raises an interesting question what do you do with the sector do you wait until after the midterms because of the rhetoric on both sides? or do you buy now? >> we wait we think second half is -- it's a little frothy. at least on the ipo side we're going to rotate a little bit into med tech. >> more on the closing bell. don't move >> mike rob plunging on a report

that it had been served with a temporary ruling wloking its chs hina what that means for chip stocks coming up. ♪

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fomc minutes they are due out on thursday it's been a rough go for gold. retreating from the 1,300 level earlier in the june. it's not the safe haven it used to be. the market hasn't been overly risk off an inflation hedge, sure, that could be one way to play this trade, and it's why the fed minutes are key as well. despite today's gain, gold is lower on the week, on the month, the three-month mark as well it's seeing more than 4% losses for the year even though it's a loser, it's outperform the other medals like silver and platinum. guys >> jackie deangeles on what's going on with the metals >> athletes take a look at how we finish on wall street dow at nearly every major average. it was a sell-off literally within the last hour the dow jones industrial average had been higher by triple digits it finished off by triple digits at the lows of the session lower by 132 points. this is a decline by half a percent. intraday, it made a similar move, and the nasdaq which had been negative, because we had really seen a little bit of the

gas come out of the fang trade, et cetera, really seemed to get hit very hard on this report coming out of micron technologies, which we're going to talk more about in a second, which raised concerns across the entire market about china trade war fears. >> there's got to be less liquidity on the day tienl for a cnbc news update for sue herrera. >> here's what's happening at this hour. the trump administration is rescinding obama era guidance that had encouraged schools to take a person's race into account to encourage diversity in admissions. that's according to an administration official. a formal announcement is expected later today >> thai navy seals say all 13 people trapped in a cave in southern thailand are healthy and are being looked after by medics, but heavy rains are forecast in the coming days. possibly forcing authorities to

have them swim out through a dangerously narrow underwater passage. zbliefrmt a south korean delegation arriving in north korea ahead of inter-korean basketball games that will take place in pyongyang tomorrow and thursday the delegation consists of about 100 people, including male and female players as well as government officials and the massive lebron james banner hanging in downtown cleveland, it is coming down this after james signed a four-year $154 million contract with the los angeles lakers. the ten-story billboard has become a city landmark, but it will take several days to take it down. you're up-to-date. that's the news update this hour guys, i will send it back downtown to you. >> you know, even though that banner is coming down, certainly it seems like there's less bitterness with cleveland fans this time. >> i think a little about the. >> they got their championship out of him, and -- >> yeah. >> maybe it's time >> i think they should put it in storage because even though he is going to be with the lakers for a little while, he always

seems to go back home. thank you need a very big storage bin for that, but nevertheless ploo big warehouse >> good idea thank you, sue >> you got it, guys. >> let's get to some of the other big stories of today in our rapid recap. >> it is a half day and it closes at 1:00 p.m. eastern time closed tomorrow for the independence day holiday >> the federal investigation into facebook's data sharing has reportedly broadened according to the washington post the fbi, s.e.c., and a federal trade commission have joined justice department's probe into cambridge analytica.

>> it plunged earlier on a report that chip sales had been temporarily banned >> micron is now responding in a statement to cnbc. let me bring it up to you. saying that, in fact, it has not been served with this preliminary injunction >> take a look at shares of tesla. the company has confirmed an earlier report that it eliminated what's known as a break and roll test as it was manufacturing the model three. >> trade still dominates the discussion every day. every day. >> it kind of touches on so many parts of the market, and then, of course, tesla is a perpetual. this is basically a battleground with every side of it -- >> wouldn't you be sad with a day without tesla news >> pretty much, yeah >> the stock is down something like $50 or $60 off the high yesterday morning. interesting. >> let's talk about one of the stories that was referred to in

the hapt recap shares of micron tumbling on the heels of a report that a chinese court has plokd the sale of their memory chips from the chip maker in china microhas said it has not been served with the preliminary injunction and will not be commenting further >> a report comes amid rising trade tensions between the u.s. and china. joining us on the phone to discuss what it means for micron and the chip sector is hans mosman what do we make of this? the initial news coming from a micron competitor. was this a longstanding dispute? does it have business relevance going forward for micron >> well, there's lots of moving parts that are going on here first of all, i think we're in the midst of a very good memory cycle. there's a shortage of de-ram if the chinese were concerned, the government was concerned about higher prices since last month, they're going to get higher if they start to halt the sale of micron memories within china. i think when you look at the

details and they're a little murky yet, umc and micron have an ongoing trade secret dispute. we think on the fundamentals micron has a superior position on that, but neither here nor there. this is probably at a higher level a trade kind of tit for tat between china and the u.s. government we don't think it's longlasting. i think smart investors knowing what's going on here will be buying micron today on the weakness >> hans, so you hinted this a little bit the details are murky. i'm trying to make sense of their statement, which is microns they haven't been served with this injunction, but i'm not clear if that means that they -- it's not true or they're just waiting for the paperwork at this point, so one, number one, if you can clarify that two, if are, indeed, your point is taken, i mean, what if this is a bigger signal about trade in general i mean, that's why i think we saw some of the big names that are exposed to china really sell off hard in the last hour of the day. whether it's caterpillar,

whether it's boeing, whether it's apple, nike where, for exa. >> right i think to your first question, i don't think that they physically ree received anything if you look at the timing here, in the fourth of july weekend in the u.s., it's kind of curious that they would time it that way. i don't think they physically ever received anything, and they may not receive anything we'll have to wait and see what happens. i think that on the merits, if you look at the chip kind of global supply and demand dynamic, says this move by a chinese court to halt sales of micron in china would be adverse and negative for the chinese, but because this is a commodity, and if micron can't sell product in china, they'll sell it someplace else i think there is a win-win by

halting chip technology that would savor china and the u.s. it's an interesting industry and china is not quite yet independent enough on the semi-conductor side of things to make this work in their favor. >> so you suggest it would be counter productive and really kind of hurting china itself to ban these sales, and also, you say smart investors will be buying micron here, but, yet, the market did take 5.5% out of micron, seemingly on this news do you think it's just because investors are skiddish on this overall issue here >> absolutely. they're skiddish about the cycle. it's going to stop china they're skiddish about a lot of trading -- a lot of traders that are away on vacation this is an afternoon on the 3rd of july. it's just a very interesting or planetary alignment here that's skiddish going into a long weekend. i don't think that this situationthe competition is

threatening to get even tougher. those details coming up. >> speaking of competitions, are cornhole, it's a staple at tailgates and barbecues across the country. you're watching me try my hand outside the new york stock exchange we're going to talk with the founder of a professional league, get some tips before tomorrow's parties, and i'm going to show mike san tolly a thing or two thing or two coming up.

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yeah. hey, uh... what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30 plus channels of live tv, and your choice of things like hbo or pandora premium. more for your thing. that's our thing. visit att dot com. snoo shares of tesla tanked today afternoon earlier reports that a company had stopped doing a brake test on the model 3s to hit their production targets >> company confirming to cnbc that it did eliminate a so-called brake and roll test, but said every car we build goes through rigorous quality checks and must meet exacting

specifications, including brake tests. let's bring in gene munster from -- to talk about what this news might mean for tests. gene, thanks for calling in. so this comes obviously after tesla seemed to have to stretch to make their self-imposed production goal. we've heard about some major senior engineering talent leaving. what do you make of the news today about these tests? >> today's news is a total non-event. i think whatever you put the words tesla and stop or tesla brake and stop together, it's just going to sew some seeds of concern for investors. it is actually a positive sign that the company feels that they don't need that test to get these model threes safely on the road i do want to take a step back and just quickly talk about the bigger picture of why on this great -- supposedly great 5,000 run rate news, the stock is down effectively 10 % since they hit that 5,000 number. in my conversations with investors, they're really

looking at the run rate of the tesla -- the model three manufacturing. it's effectively on a week to week basis unchanged to where it exited in march and separately the amount of work that they had to throw in to get to this 5,000 target the extra labor that went into it extra production costs it's not this brake test stopping news. >> one, if i get one of these model threes, just come off the line, i don't have to worry about my brakes, gene? you think they're completely safe two, though, to your point, if -- they're doing all kinds of things the tent out in the yard, et cetera, to get to the number it raises questions questions about the sustainability of their ability to hit the number, which, and they got to hit the number in order to not have to risk capital >> right i want to be clear that i'm a

believer in the story. i think that tesla will, in fact, cross the profitability and will be one of the most successful tech stories over the next five years. that said, i just want to acknowledge that the bear case on this did have some meat after this call. that's, like you said, that they are -- they are throwing everything they can. i think what is most important, the key take-away is that they are improving the pace of manufacturing. whether or not they get to profitability a little spoiler alert here on the june quarter, they'll probably get to profitability, but they're probably going to have to sell what's called these tax credits. essentially, they sell another car manufacturers. the bears will probably -- or will understandably talk about that being the negative when they report the september quarter and say they're profitable you really have to start as someone who believes in the tesla story like myself. you are really thinking about the ramp in the december quarter. >> i didn't know those were

tradeable assets, those credits. >> gene, the broader point would seem to be that we keep deferring true profitability, and i guess it also raises the question of why elan musk felt it was so important to say they were going to do 5,000 a week at the end of this quarter, and to basically pull out every stop and stretch the organization as much as possible to get there if it wasn't to try and preserve access to the capital markets where he thought he might have it otherwise. i think that was less of an issue. he was trying to inspire and show what tesla could do i do want to acknowledge that this is the -- kind of the

unpredictability around musk is one of the -- it's one of the negative factors around the story, and it's someone who believes in it, i wish that he wouldn't set these big targets, that they have to really stretch to get to. >> all right gene, thanks very much we'll watch the bull bears seesaw continue on thursday, i'm sure gene from -- >> on-line shoppers better get their digital wall lets ready. amazon announcing the date for prime day and ebay vowing to beat its deals those details are next (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event. with tripadvisor, finding your perfect hotel

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oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. >> amazon announcing the date for its annual prime day courtney reagan has the details. >> hi, michelle. amazon today confirming a speculated dates its fourth prime day will start on july 16th at 3:00 eastern time it's going to run through the day on july 17th the event will go for 36 hours that's six hours longer than last year's with a million deals. twice as many deals this year on amazon devices it's just for prime members, remember, in 17 countries on-line. four more than last year for the first time at whole foods other deals will enable an alexa enabled faucet, and a number of fingerlings toys amazon will break its own

records again, it's predicted, making the prime day, on top of sales worth of 60ers approximate last year. j paul ryan morgan and cowan company estimates that it brings in $30 billion in rm zblon and $the real goal is acquiring new prime members. the company revealing in april for the first time it has more than 100 million prime members around the world consumer intelligence research partners estimate that prime member sships have a first year renewal rate of 85% and that in general prime members spend $600 more per year on the site than non-members do. >> for macy's, that was almost as much as amazon's web traffic spike.

>> we'll talk to the commissioner of the american corn hole league >> yes, it has a commissioner. ♪

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>> many americans will fire up their barbecues and light off fireworks, and some heigmight en play a game of corn hole >> the bags used to have corn in them in the old days that's why they call it a corn hole to the american corn hole league, corn hole is much more than a leisurely backyard game it is a professional sport stacy moore is founder and commissioner of the american corn hole league, and he joins us now >> a professional sport? come on. is it really >> it's absolutely become a professional sport we're handing out real prize

money. these guys are playing all around the country to win as much money they can in the season >> what kind of prize money? >> this year we're going to give out $250,000 >> really? >> yeah. and we're looking to increase it next year, and we're hoping that we're going to hit $1 million prize pool here real soon. >> you are kind of going up against the hot dog eating contest. what other -- >> we're actually following the hot dog eating contest tomorrow in coney island. we're really trying to -- >> that's fantastic. >> we're really excited about that >> and so obviously this game has been around a long time. when did it develop into something more serious as a competition? >> so we started it as a sport about three years ago. we developed a lot of technology to capture scores and stats because you can't have a sport without scores and stats >> right >> and then we started selling sponsors around the game and around our events. >> who sponsor uz? >> johnsonville is our primary sponsor. we also have mex grill and raging bull join uz as sponsors for this conyes island event it's really exciting

>> that's your standard training menu, then >> power brats the power brats is a good training meal. >> so when i was out there practicing, i didn't realize there was that much prize money involved in this now that i -- now that there is, i'm going to actually be far more interested. >> that was michelle on the -- >> you see this? does i -- have you shown the great shot when i got it in there? okay you can just play that over and over again should we give san tolly a lesson here? can we do that can the camera come off? i don't know i'm just making this up as we go let's go okay mike is going to try it. >> toesupposed to try to swish . can you knock the other one in >> this is -- this is not pool you can't knock another one in, can you? >> yeah, you can >> oh, you can

>> look at this. >> let me show you how it's done >> go ahead. hold on. here we go here we go >> yeah, michelle. >> yes >> first try >> we have about 200 directors all over the united states we do over 5,000 tournaments a year right now >> have you talked to nbc about broadcast live you know, live broadcast rights? >> well, we are currently on espn we have a three-year deal with espn we're showing our national events as well as we also do college corn hole where kids can earn scholarship money >> does anybody ever miss. >> it's into more and more that goes it's 2118, 2117.

>> this has been so great having on you commissioner of the corn hole league this is so fantastic isn't it great, mike >> kpleexcellent. thanks, guys >> thanks for watching the closing bell it's tankfarm. it's really high quality. lemonis: ...the tie that binds is about to unravel completely. mike: you want to be my boss sometimes, where i'm like, "dude, we're partners." john: no, you want to talk real? let's talk real. lemonis: brothers mike and john found early success selling to big stores like nordstrom and urban outfitters. but after they opened up two locations of their own, profitability never followed. mike: is it the product? is it a merchandising? why doesn't this store make money? lemonis: now the brothers are clashing more by the day. john: so it's all my fault the stores didn't make as much money? mike: you sometimes act like you know best.