have straws anymore, and they said we are switching to paper straws and paper straws are back ordered. they can't get straws. >> buy paper straws. >> give me a paper straw for my martini and i'll be a happy boy. >> good to be with you >> thank you for watching power lunch. >> "the closing bell" right now. it's time for "the closing bell." investors shrugging off trade fears. markets are ral aelg wrrg but lots of head winds remain. we'll talk to one market strategist who says now is the time to sell trade wars are heating up. more companies applying for tariff waivers, but few are getting approved i'll have the details. i'm scott cohn all day long i've been dropping diabolical hints about this year's top state for business. and in for kelly evanerize, facebook shares hitting an all-time high. we'll discuss whether the data scandal is officially in the

rearview mirror. "the closing bell" starts right now. good afternoon, everyone welcome to "the closing bell." we'll get to all of othothose stories in a moment, but first of all welcome back. >> very relaxing i was cheering on your team the whole time >> i'm not sure you were that enthusiastic >> our baby has an outfit. >> i know. >> an england outfit >> as does kelly's everyone's well supplied. the s&p is up 0.8%, the nasdaq up 0.7%. we'll start this final hour of trade with stocks at those session highs as we said, 330 points the high for the dow. the s&p hitting its highest level in more than three weeks >> trade is our top story again

today. in washington with the very latest for us. hi, kayla. >> reporter: there's a process in place for companies to raise their hand or opt out or attempt to occupant out from those tariffs. the u.s. trade representative just announced that process last week for those 818 product lines. the problem the kraeccompanies s the process can take several months and in the meantime there's uncertainty and oftentimes cost increases. just look at the way it's gone for the commerce department. commerce opened the process four months ago and has gotten applications for more than 20,000 product lines by mid-june fewer than 100 applications had been processed that grant exclusions to just 7 steel companies and 42 products. and as of today just one aluminum company has gotten an exemption. so clearly a lot of work to do the irony here is that the

length of these processes for these companies to get excluded from the tariffs could end up being longer than the tariffs will be in place we don't know how long these tariffs will be in place this morning the chief economist said its his expectation that now tariffs have been instituted that what follows now is a process of deal making >> finding an equilibrium where all sides win, i think, will be easy once the first deal is out there. and i think once people see the first deal then that'll be a framework for everyone else to follow. >> reporter: so the ambassador lighthizer is working on a number of options. no word, though, on with whom that deal is being negotiated and over what specific topic guys, back to you. >> kayla, thank you very much for that joining us now for his take on trade and the broader markets, jeremy segall, university of

pennsylvania finance professor good afternoon to you. thank you for joining us first of all, your thoughts on the fact that the markets have been so positive and resilient whether it's last week or today despite some of these negative trade headlines. >> well, i think this was a wonderful labor market report we got friday and that was a blockbuster, strong job growth, rise in the participation rate, less pressure on unemployment i think the big rally we had friday and today is mostly due to that great labor market report that we had it really means that there's a chance that that is not going to raise four times this year and we're not going to squeeze on labor supply again, just a chance because it's only one month of data. but i think that's what we're teeing off of the last few days. >> how did the narrative change? it was better economic reports,

signs of inflation meant that that was going to continue marching along, raising interest rates and that could stand as a headwind to this market. >> yeah, you know, the key -- i know on cnbc they all guess what is the jobs increase going to be actually perhaps the most important number to guess is what is the participation rate going to be, how many people are going to be entering that labor report we know even producing a dammed for labor, between 225,000 for the last year, and yet supply from populations is only 100,000. we node those people who have not been involved in the labor force to come in and take that pressure off we can go quickly then without the fed raising rates too much again, we've got one month -- i remember back in february we had a 0.3 jump in the participation rate, but it is certainly a move in the right direction we got 0.2 of an increase.

let's hope for the best here >> professor, how are evaluations at the moment as we approach earning season? >> 2018 operating range we're about 17.5, and in a low interest rate world, and we're in it even though the fed is increasing, that's a very reasonable rate. i don't think we're going to get quite the increase in earnings that some people think in 2019 but certainly can't say we're anything like wildly overpriced at these levels for today's market >> so last time we talked or one time we taked in april on trading nation you made some headlines by saying the market is going to be flat this year, going to struggle this year and the good earnings are going toy offset by higher interest rates. you sound a lot more positive today. have you changed your mind >> well, friday gave me hope but if you would ask, you're absolutely right right i still think it's a 0% to 10%

increase if we have more breathing room while the market's up 10% more, if we end-all this talk of trade war, the market's up 10% more. i don't know if that's going to happen right away. so i'm still very, very cautious but i was encouraged by friday, but i would like to see another month of that rise to say maybe the fed is really going to raise three times. because i still think interest rates are going to be the most important factor that are going to impact the market and i still think four is going to happen, but i like what i saw on friday. >> professor, whether it's trade or other issues this week like a nato meeting, a meeting to the u.k., a meeting with president putin, could those become more important in the short-term interest rates >> well, certainly trade that is a big factor

the market thinks trade -- trade war probability i think is less than 10%, and that's what the market thinks. if it heats up, wow. that's a lot of down side. i wish i had the inside plug to the trump administration to say i think he will bring us to the brink or won't bring us to the brink. but i do know no president has had more tweets about enjoying a good stock market than donald trump. well, if he wants to continue to enjoy a good stock market, he cannot bring this trade war, you know, upon us all. it's very clear how the market thinks about trade interpretations. so my feel is he's going to stop short of making this a real problem for the world economy. but certainly, you know, i don't think there's anything to bet your life that that is going to happen >> very quickly ahead of the numbers this week, do you think earnings are peaking out

>> i think that -- well, i think numbers are going to be good we're starting earnings season this quarter, i think the disappointments are going to be a bit on the guiding side particularly looking towards 2018 don't forget that big corporate tax cut allowed for expensing of capital goods in the first year. that's a big boost to earnings but that means you're taking away depreciationation in those future years that's a reduction in earnings am i don't think we're going to get as much growth as high i think it's current earnings versus guidance will drive a lot of the individual stocks this week and next week >> professor segall, thank you very much for joining us this afternoon. a pleasure as always to see you. >> thanks for having me. let's get to our closing bell exchange and talk about the action today

so quincy, what do you think about the market taking this half glass full approach to trade? >> well, i think the market gets bored with the same headlines. so the market was able to discount what they already knew, and that was the first crunch of the tariffs were going to be imposed. there was no chatter out of washington that suggested otherwise. the market absorbed that money went into areas in which they were still safe and i think that the market is basically looking at and saying, well, and we get new information we'll move accordingly so that's the market's job to discount what it knows if there were more talk about more tariffs, deeper tariffs beyond the second crunch that we expect in august, i think the market is going to get nervous and the market will probably a catalyst to pull back. but, again, the market just absorbs what it knows. that's the market's job and that's what we're seeing and the trade talk has now moved into the back burner and we're

in the earning season. that becomes the main focus for the market and then things should be fairly stable. >> banks and industrials are really leading the charge today. what do you think of that and can it be sustained? >> you're going to see that risk on trade coming back to quincy's point, we had a lack of trade negative headlines over the weekend, negative headlines today this morning so you're going to see that risk on trade, the industrials rally. and the banks now, the banks have been oversold you and i talked about this on-air it has been oversold at a historic level into basically the c card now we have earnings coming out at the forefront at the end of the week 25% of the xlf will report pre-market on friday you better cover your shorts if you're still betting against the banks. >> we are expecting good earnings, right? >> we're expecting good earnings, but i think probably slightly tougher this quarter than last quarter.

jack, in terms of what we've seen in the rates today but particularly the dollar, is that what we'd expect i guess there's some other factors like u.k. specific factors that are affect things more than just the dollar side today. >> wolf, there are a couple of things one is i think people are starting to understand something we've all known here for a while, and that is new yorkers can be as subtle at as sludge hammer and this as sludge hammer diplomacy. it's been factored in, and discounted in. one thing to keep in mind, over the course of the first quarte of the year we saw more than $3 $300 billion were repatriated. if that's just a quarter imagine what's going to happen through the rest of the year we're going to see upside pressure, which is probably going to keep the hands of the fed tied, and that in itself is a problem. but something that happened a couple of days ago is even more important, and the only person

who hit on it today is bob, and bless his soul and that is the fact that all four nominees for the supreme court are business friendly. it does not matter which one of the four ends up getting nominated. if any one of those four is next supreme court justice what happens is there are five justices that are business friendly that is huge boost for the market >> you agree, quincy >> yeah, absolutely. first of all, most of the republican candidates from the republican party that are put forth are probably business conservatives, and they are going to be friendly to business we already started to see that on the court decisions over the last couple of months. they are business friendly so as far as the market is concerned, that's a major plus >> 21% of the people who voted for donald trump said they voted for him because he was going to be nominating supreme court justices and when you hear that from a republican president you're always going to get a

pro-business nomination. >> steve, just quickly coming back to the market moves both last week and today, yeah, we know volumes are low can this continue all summer a week or two we were going to say volumes dropping off, that's going to lead to more volatility, but this has been encouraging. >> sure. and for the bares you've had that weave, that thread entering into that earning season while earnings have been great everyone's expecting that bar to be somewhat in the middle now. i don't think the bar is lifted. i think everyone has ratcheted them down enough that we can maybe not jump over but step over it. as long as they get something better than fair when earnings hit, the market is going to move higher in the absence of any negative trade bomb that you see hit the headlines. >> in other words, expect asians are low enough >> expectations are low enough that's been the story. we've had that buy out blackout

period you have never tail end to the economy and to market. >> we'll leave it there. thank you all. still to come, how trade tensions are impacting the luxury retail space as we head into the second half of the year the former president of tiffany will give us his read on that topic when he joins us next here and check out shares of facebook hitting an all-time high today so has the social media company actually made a full recovery from his big data scandal? and of course we want to hear from you you can reach on twitter, facebook or send us an e-mail. >> or direct >> "closing bell" back after the break. ♪

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as trade war fears heat up, some retailers are actually worried that apparel and electronics could be the next industries to feel the impact. >> joining us now is jim quinn, set during the "closing bell" at the top of the hour to celebrate the national anniversary congratulations to that. i bet you're looking forward to ringing the bell >> thank you i am looking forward to ringing the bell >> we can get into some of your former concurrent companies. we were just talking about the jobs number on friday. are you encouraged that the consumer can remain strong throughout the year despite any trade concerns >> yeah, it does seem that this expansion, which is going on every nine years now, continues to be very positive. interest rates are low consumer confidence is high. jobs are continuing to added and

more people entering the work force. so i certainly think there's a good deal of momentum behind retail purchasing and consumer confidence >> we just came off a quarter for retailers where there were some real standout performers and all in all things looked a lot better was that a report card on the state of retail, on the state of the consumer or just expectations were lowered so much >> well, i do think retailers and brands have been going through a radical transformation and will continue to do that there's going to be winners and losers in that transformation. and i think what you're seeing now is many of the retailers and brands have dramatically addressed their business model and i think that's improved their service delivery to customers. >> are you talking about your former employer, tiffany a nice come back >> and the brands as well, ugg

and others have a much better handle on understanding the consumer the consumer is offering a lot more input into decisions that brands make around product development and service. and those companies that do the best job of taking all that data, analyzing it, understanding the trends are the ones that are going to be the most successful. >> when we consider this trade war, a lot of people say that ultimately it's going to hurt the consumer, it will lead to prices going up. i guess we haven't really seen that pain hit the consumer yet do you think it's inevitable that we will see it, or is it all just sort of talk? >> well, it depends on how coherent this strategy is. if it's a long-term trade war, it becomes a tax on the consumer and those costs would pass along to the consumer, and it will certainly hurt you know, purchases at the retail level because things will become more expensive. it's not clear yet whether this is simply an opening gambit in

some kind of yet to be outlined, ov overall strategy or if it's just going to be something that is a start of negotiations. >> so so far the trump administration has not put apparel or sneakers or phones, any consumer goods, right, as far as tariffs from china. but if this were to escalate and he were to talk about $400 billion worth of imports from china, how much clothing and sneakers and retail are manufactured in china these day s s? >> a great deal. inevitably if that's going to be a long-term addition to cost, it's going to show up in consumer prices. we've had a grand bargain with china for 20 years we've imported a lot of product and a much lower price and the consumers have benefitted from that and we haven't played real hardball yet with the trade violations in china.

if this is an opening gambit to address those things, then it could be a very positive outcome. but it's not clear at least not to me there's an overall strategy for addressing the real straight conflict. >> congratulations on the anniversary as well. jim quinn. >> and for more on the state of retail including why nordstrom is opening more stores with no inventory, head over to cnbc.com for that we have 36 minutes to go -- 37 minutes to go before the closing bell, and it's a pretty robust rally here. your session high up 315 on the dow. coming up we're going to talk about retail investor trends the most popular names bought and sold so far this year. and later bank stock is lower for the year and now reportedly setting it sights on a new app to help lure more custerom deposits. we'll reveal the stock and the story coming up on "closing

bell."

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welcome back to "the closing bell," kicking off the week on a very positive footing here for the s&p, dow and nasdaq composits. the dow that's the real winner, up 324 points. grips like financials and energy going strong >> tv ameritrade index is out. and it shows retailers reduced

equity exposure during the year, but have since increased exposure to stocks >> how will those continued trade tensions impact for the rest of 2018 first of all, talk about this sentiment because what we've seen from some of the fund lows is increasing pessimism. >> this measures people who have made a trade at least once during the month and so people who are engaging with the market. and what we're seeing is people are stepping up the last two months now, not like last year. last year every single month people increased their exposure to the market. this year we actually started off on a negative month inlast four months. the one stock that's been consistent so far this year has been netflix there have been buyers of netflix almost every single month. it's worked out well, i'm happy to report. but i think that's been really interesting.

and another stock that's gotten a lot of interest has been at&t. >> positive interest >> very positive interest, which i think is kind of interesting given all that they were going through before now that you're talking about a 6% yield basically, i think part of it may be a yield play as we've considered to see a flattening -- >> but after the time warner decision -- >> this month it was one of our top but for six months it has been on and off the list for different months for june absolutely throughout the month there were buyers of at&t >> talk about the sentiments of declines on that yield point we've been wondering as we get close to 3% does that take away the attraction away from stock, and it seems like it's not >> it's not at all we'll say in the energy stocks they often have nice yields, but this month we saw sellers of exxonmobil, which is what people in the past had gone not just

for crude oil but for yield. and i think it got too great inmany people to handle. >> people following the bank field and -- >> not between an abnormal level. >> are you surprised to see the buyer step in at a time where trade tensions and headlines appear to be getting worse >> what's interesting to me is one of the other stocks they bought was gm. and i found that to be quite surprising considering all that the auto makers had gone through in june. and actually for the first six months ford had been a stock that people had bought so, again, i find that very interesting that during this time people are willing to go in and buy some stocks like that. as i said for the first six months as i look back, netflix buying perhaps what's going on with at&t, because what's going on with disney and fox -- >> what about the other things >> well, facebook has been -- and apple have been two of our

biggest sales in six months. apple is number one of our holding overall. but facebook has been a consistent sale five out of six months of the year our millennial clients actually last month it was the biggest difference between them and our regular clients. our millennial clients were net buyers a bigger percentage than they've ever been and they didn't sell facebook as aggressively our overall clients have been selling facebook has it continues to hit a high. >> great stuff j.j. of tv ameritrade. >> to tee off that facebook point because it continues to hit new highs, but our next guest says you can expect to see the fcc slap a fine. >> will this matter in the stock price? joining us is stephanie from height analytics

talk us through this point in terms we haven't seen any serious regulation or punishment hit facebook yet, but you think the fines are on the way >> yeah, i think the ftc is likely to conclude its investigation we know it began four months ago, probably late third quart. and i would expect a record setting fine for the ftc now, whether that is viewed as record setting or even meaningful to the facebook, $5 million is my prediction here. face look has around $40 million cash on hand, so they should be able to cut that check to washington no problem. >> we got that report from "the washington post" last week that the fcc is now looking into its public disclosures you've got the justice department involved. are you factoring in those as well in. >> i would add a little more on top of that $5 billion for what i think a total fine that facebook could face. i think the fec, the securities

and exchange commission, is sort of rightfully looking into what facebook owed investors from a public disclosure perspective. the "the new york times" story that broke this march and we all saw the stock price get decimated shortly transfer, was a similar story to one that broke a career earlier in march 2017 and even that story about cambridge analytica, facebook and what its involvement in the republican and trump race was is similar to a story that first broke in a similar publication back in december of 2015 so facebook knew, and some of the public knew. but facebook wasn't making any disclosures to investors and we think the fcc probably has a case to bring against facebook obviously the stock has completely recovered and that loss in capital market has been completely recovered but for those investors that took a loss around that march,

april time frame that probably have a reasonable reason to be upset with facebook executives >> what do you think about the likelihood they move more meaningfully into paying for video content? do you think they are going to start to compete with the likes of netflix more meaningfully >> i think they should i think that video content tends to be much more meaningful to users than the statx of the text it's part of why it was so smart of facebook to acquire instagram. anything that continues to move them into that richer content seems the right direction for the company to be headed >> and very quickly, how are you getting these specific numbers are you basing it on historical numbers we've seen with these types of things? >> because this industry is so new, we don't have a lot of past precedent. but for the ftc we looked at

what they did against life lock, obviously getting up to $5 billion is multiples of that but because of the percentage of facebook's revenue we think we could see something with a billion dollar handle. >> all right, stephanie miller, thank you very much. and that's probably why the stock is at all-time highs because facebook is a sales machine. if it's just fines and not enforcement action like a breakup, then can handle it. >> and as j.j. was saying beforehand millennials buying a lot of it or not selling as much time now for a cnbc update hey, sue >> here's what's happening at this hour, everyone. harvey weinstein pleading not guilty to a sexual assault in a third criminal case against him. he's seen leaving the courtroom thereafter being released on bail with his attorney but the lawyer for the still anonymous accuser had this to

say. >> my client will testify under oath at the trial. mr. brothman are you ready to state unequivocally that mr. weinstein is ready to take the witness stand and testify as well >> del monte is recalling fresh produce. a parasite known as cyclospora is linked to those trays more than 200 people have been sickened in parts of the midwest. a passenger's french bull dog was saved by a jet blue flight crew on a flight from florida to massachusetts last week the dog apparently was having trouble breathing. two flight attendants brought an oxygen mask, you can see it there, for the little guy. and they saved the day the grateful owner publicly thanking the flight attendants that little bull dog's name is

darcy and she's doing very well. back to you guys >> they have breathing troubles because their noses are so squished sue, thank you >> you got it, guys. all righty, 25 minutes to go here before the closing bell, and we've got a pretty solid rally. the industrials are really adding the most. boeing adding 51 points. goldman sachs, though, adding 31 points by itself u.k. secretary boris johnson resigned this morning. we'll discuss what this means for the future of the united kingdom, for prime minister theresa may and brexit "the closing bell" back in just a cup of minutes don't go anywhere. ...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.

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welcome back to "the closing bell." markets up 326 points on the dow. the high of the day was 330 points higher. 1.4% that equates to the nasdaq up 0.8% as well let's check on some individual market movers. citi group is reportedly working workin' on deposits without having to open new branches. according to s&p global it only

has 40% debecausets compared to 11% at chase, bank of america and wells fargo. the stock up very nicely today as the whole banking sector is indeed and interesting potential new employer bank of america, for example, is the gulioliath with the biggest stickiest base kind of a modern approach to fight back >> always interesting to distinguish between the bangs, but they're all up today it was expected to be a very strong earnings season punctuated by lending growth, business lending is higher >> that could be one of the positive surprises but i think the potential relative surprise is that volatility and volume in markets -- you know key one with those pull backs ipjanuary we saw was a perfect environment for some of those investment banks. we'll see how it comes out, but i think there's potential for

some -- >> disappointment on the trading side >> maybe we don't peak so significantly. >> one loser in the session is proctor and gamble the firm says the consumer product shine is facing a number of challenges right now including slow market growth they also cited slow markets, volatility, a slow dollar. it operates a humongous business overseas not to mention trade tensions, even with consumer products being targeted. they've got an activist who's now sitting on the board with a very clear mandate >> just sitting on the board >> right from shareholders, a very powerful huge market cap company to make change and so the question is how amenable is the board going to be and the more they suffer market share decline and market weakness, could we see a catalyst for some sort of

reorganization within the busines business >> it's going to be interesting to see who does better on that trade versus the trade with nestle >> very similar arguments. >> and it does seem slightly amenable >> it just shows you that this industry is dealing with slow growth, big changes in buying patterns and habits and how we consume. and not to mention the retail grocery fights and online shopping >> pg up 2%. markets up in the u.k. following the announcement of boris johnson's resignation. a full report on what his departure means coming up here on "closing bell." ♪ it is such a good time to kiss ♪

♪ it is such a good time to dance ♪ ♪ it is such a good time to [ laughing ] ♪ scoobidoo doobidoo ♪ scoobidoo doobidoo [ goose honking ] ♪ [ laughing ] a bad day on the road still beats a good one off it. ♪ progressive helps keep you out there. welcome back to "the closing bell," a pretty strong start to week here.

financials industrials and energy leading the group here today. it's ufiltilities, telecom and l estate -- >> meantime brexit hanging in the balance following two high profile resignations as we've already reported the pound did fall on that news. the remarkable thing, though, since we discussed this early this morning on various morning shows is that theresa may has managed to continue her day as usual. she replaced her brexit secretary davis and meeting with jeremy hunt, thought to be potentially offering him the former secretary job she was in parliament, took questions and most important of all the 1922 committee has met

and not called for a vote of confidence in the prime minister so today she has got through relatively speaking unscathed. and that means two prominent brexit ears and brexiteera and a couple of less prominent have left the cabinet. >> and that's positive for the markets. >> the pound has fallen net net over the last trading sessions but again we have to see if the eu agrees to the plan she outlined on friday it is seen as a softer brexit plan so if it's not totally adhered to by the eu, if the eu pushes back and wants it even softer still i think you'd see more resignations yet again >> and then you be european leaders like donald tusk who is tweeting a lot lately, suggesting that maybe others --

brexit will go away. almost proposing a new referendum >> he only regrets the idea brexit has not left with david and johnson. but this is the key thing thereat the eu side must be thinking, is dare they push theresa may any further? they know she is not in a very strong position domestically if they come back to ther latest proposal which the brexit already thinks is too soft they know they could lose her as the person they negotiate with her government, her stance as the person they negotiate with and in terms of what's happening in the conservative party right now, 48 of the 326 mps, so 15% is all that's needed to cause a vote of confidence and that hasn't happened one would think after these high profile resignations this morning just to get 48, only 15% would happen why hasn't it happened because people have wondered, if they fear if her replacement could be a boris johnson

>> very complicated british politics but president trump of all weeks is paying a visit. >> and he has said he continues to look forward to his trip. that statement came out a couple of hours ago he flies to nato first, and then the u.k. and then to helsinki to see president putin. >> when she makes demands like exempt us from steel and aluminum tariff and she's facing a political crisis at home >> i think she probably has a lot to focus on this week, yes don't forget to go online to cnbc.com prime minister theresa may says parliament and brexit could be different outcomes to that as analyzed online. cnbc.com when we come back a new world order in media, forcing some changes at hbo. comments from a warner media executive about what he wants to see happen that's next on "the closing bell." stay with us across web and tablet?

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welcome back to "the closing bell." we've got 7 1/2 minutes left of trade, and we are nicely high. let's look at individual market movers soaring today on the heels of an earnings and revenue beat. that stock up 13.5%.

>> taking off earnings strong. must be all the curling irons. that's their big product time now for the quote of the day. he now oversees hbo as chief executive of warner media. according to a transcript obtained by "the new york times," he spoke about the time viewers spend watching hbo programs quote, we need hours a day, it's not hours a week and not hours a month. we need hours a day. you are competing with devices that sit in people's hands that capture their attention every 15 minutes. didn't name netflix by name, but clearly trying to reposition hbo, which is interesting because at&t just did this big deal you might say congrats-on our million emmys, go about your business but nope, pressure's on >> and hbo is meant to be one of pprotected areas and one of the

protect protected executives because they've clearly done such a good job. one of the interesting dialogue, he says we've got to make money at the end of the day, right, and he replies you do but not enough and hbo known for its longer forum high cooperatequantity stf can it really taylor >> it's also interesting the clash of the cultures. we were always watching at&t going into hollywood, a telecommunications giant that's dealt with cellphone service and how these two cultures would marry, and this is an interesting snapshot of the corporate overlords now that hbo is going to have to face >> i've said it before and i'll say it again let the current team finish "game of thrones." >> i think that's being done >> i know. don't aderail that.

nothing shortened at all up next we've got six minutes -- five and a half minutes left of trade. and starbucks announcing plans to ditch plastic straws. whathe t stores are replacing them with. that's coming up on "the closing bell." you always pay your insurance on time.

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bell." a couple of minutes left of trade. it's been a great day here on wall street. let's have a look at the dow we opened positive and rallied throughout it day. right near the highs of the day. the high was about 340, but over 1% on the dow. we look at the other indices newt quite as positive, but best up the sthap and nasdaq. the goldman sachs, it is the fascials, the banks performing best also the industrials, industrials largely because of lack of negative trade headlines. but both industrials and finances up higher because they underperformed recently and rallied today. over 2% fascials utilities 3% just show the british pound as well over the last two days. good news on friday we saw the

pound strengthen as theresa may announced her sort of soft brexit deal. but today we had a couple of high profile resignations, but that hasn't derailed >> and who would have thought the lack of a negative headline is actually the catalyst but it really is true, and you can just see it. and wolf was mentioning the stocks that are moving industrials and banks, your boeings, your caterpillars, your j jp morgans we've been waiting for that for amgs, and you can see all the consumer staples and defensive names that have done well in the last few weeks, they sold off today. i think that's important but the markets have been a lot calmer over lesser concerns over trade headlines. i think the key thing is how much are those marginal issues we've been talking about, how much are the potential for

higher rates, the stronger dollar higher inflation, higher input costs. >> and potentially a business friendly supreme court judge you mentioned earlier. bob, there goes the bell higher by 315 points of the dow, 0.8% for the s&p and nasdaq. ringing the big bell here. that does it for the first hour of "the closing bell." and welcome to the second hour of "the closing bell. wilford will be in back in just a moment let's take a look how we are finishing the day on wall street strong kick off to the week. s&p 500 going to close up almost a full percentage point. really the dow that shined all session long 321 points higher. nasdaq did well as well.

0.9, this is coming off a weekly gain for all three russell underperformed a little bit but still closed higher by 0.6% coming up we're going to talk to a ceo of food service product company who predicts a 700% increase in paper straws this year as more restaurants go for paper alternatives michael santoli, and welcome sandy, and vice-chairman and head of investment group as well and biggest caterpillar, and twitter was the biggest loser. mike, it continues to climb the wall of trade worries this

market teeing off the trade number, or this idea that maybe the trade war won't get worse. >> it's all of that, i think, sara and also you had such a crescendo of a trade war building up. so people got very defensive over the last week or three or four weeks actually. buying bonds, buying defensive groups and i think that allowed for some tension release the last two days the s&p we didn't have one of these late day sell-offs we've had for a while. but i will say the index just got back up to the level, almost to the tick of what it was in mid-june for the highs, which is little bit below the march highs. so a good day, a good trend. i still think it has something to prove getting back towards the old highs in january, though >> i know you like some interesting names that we don't talk about enough, verizon as

well you've been talking advantage of some of the weak days around the trade fears to load up >> you notice some opportunity being crated by the weaker markets. we buy convertitable bonds as part of our income and equity strategy and it's really allowed us to buy bonds that would normally be too expensive. and we have good yield so it's an excellent strategy for us that's what the markets allowed us >> is that the start of a significant rally in those recently underperforming sectors? >> i wouldn't say so much. i think people are anticipating a good earnings season for the banks. but they've been a soft sector for a while. if you look at portfolio of regional and even new york banks they're down 5%, 6% this year.

so the answer is no. and industrials it's very much a case by case basis there's some wonderful auto parts suppliers who have beaten up over trade fears. but there's some other industrials that frankly look pretty expensive i'll say there are some big opportunities in some industrials, not so much in banks. >> we're seeing some real strength, actually the s&p looking a like it's closing at its highest level since june back breaching technical levels. how much of this has to do with earnings >> i think earnings have been the one thing you didn't have to worry about this year. so the fact that estimates have held up going into the reporting season, almost everyone expects that typical 70% of companies to be earnings. now, the question is how much is reflected in stock prices already? i think we'll get the typical, you know, some conspicuous sell in the news action >> mike, why are we approaching

this earnings season with people thinking i can beat -- maybe evaluations are more attractive. but that simple pass or fail in terms of whether companies beat is fairly trickle, a big hurdle. >> usually you get an indicator of that in the preannouncement season, which is very calm typically it means that the numbers are in the bag and honestly i think analysts play along, theydon't raise their estimates too aggressive and i think that's something we can pretty much bank on. that doesn't mean the market is going to say, fine, now we're going to buy the stocks at the levels going in. >> sandy, how do you think about this market? s earnings driven, trade tensions >> probably all of a little bit above. now it's time for their earnings to deliver i think we're entering into this

period in the market where you actually have multiple expansion going up as much as it's going to if we don't get the beats that mike is talking about, that could actually portend some choppier markets going forward i think that's why after a great bull run we've had in 2009 investors should be looking at strategies that offer income protection >> i think the market is expected to see quite a lot of volatility volumes, of course, a bit lower. does that create some opportunity, certain stocks or sectors you think are going to have buying opportunities over the summer >> the vix as you know has come down a lot the markets have not been volatile at all. we are predicting that earnings, in fact, are going to be better than people expect in the first quarter people thought earnings were going to be up 17%. they come up at 25%. one of best documented trends in

all of behavior finance is called angering. people are slow to uh-uh just. and it's having a bigger impact than people think. >> i will say it's trinterestin from the day the tax law passed the s&p 500 is up 3.5% the market started to get it, earnings have come in much better than expect but unbalance has strongly been neutralized by these factors >> the president tweeting, quote, fisa and others should be ashamed that they have raised drug prices for no reason. they're merely taking advantage of the poor and others unable to defend themselves. we will respond. shares slightly higher by the end of the session, but

certainly down from where they -- close to where they closed on friday mike, you've seen lots of tweets targeted at companies. the bites i guess not too painful anymore. >> certainly an underperformer i think we kind of have calluses against this to some degree. people have not really been flocking to fapharma because th thought pricing power was part of the strategy. i think it's tactic. not just make it democratic issue. >> fisa just reacted to the president's tweet. lesly pickler has had statement. >> as you mentioned the president of course tweeting about fisa specifically. and fisa has just issued a response in terms of the president's comments with regard to drug prices they say the list price remains

unchanged. we are modifying prices for approximately 10% of these including some instances where we're decreasing the price importantly list prices do not reflect what most patients or insurance companies pay. now, of course, this isn't the first time the president has come out against pharmaceutical companies with regard to raising drug prices. he's been a long time critic of pharmaceutical companies but it's clear now pfizer is trying to get the message out they're not actually raising drug prices. >> heading into the mid-terms whether we see actual policy result out of this or not, just the fact the pressure is on, do you stay away from some of the drug manufacturers and the bio tech companies >> this is an interesting one like a lot of things with our current president, his tweets are often strange. but there is some real truth to

what he's talking about here in drugs the average american would probably be surprised the degree in which we subsidize drug prices. drug prices are sold at 10% of that or 20% of that overseas it really i would say unfair that the american consumer is subsidizing the rest of the world, particularly europe and the developed world. this is a place where he's got something to complain about. and if people could push this issue, i think it could be a decent issue for him politically. >> or you could say, mike, so what the president has tweeted about this issue a number of times, investors shrugged, the stock ended higher -- >> you're complaining about drug prices being lower in countries where they're either being regulated or negotiated. you just want to call out the companies for raising prices where they can >> it's like a shaming strategy. but they already laid out their

plan and drug companies rallied on that news meantime financials for to point out a big outperformer today. this move coming ahead of the earning season from wells fargo. wi you've got a lot to digest there. >> the 1% he was saying at the close there the loan growth could finally have picked up trading revenues perhaps disappointed a little bit. but there could be a few individual winners that have been on some of those big deals. mike, i guess the big question is whether the bank share prices have come back enough. i don't think it'll be necessarily a tough earnings quarter, but i don't think it's as easy as a couple of we've had last year. >> probably not as easy. the stocks definitely have been beaten up or at least been

restrained and they've gotten compressed in their evaluation the worst performing sectors of the last month were industrials and finances they were the leaders today. i wonder the extent to which you had some talk today out of the atlanta fed president saying we should be conscious of not inverting the yield curve to a monetary policy. i think y wonder if the fed is not going to be running into -- even though i don't think you should think about bank profit marges in terms of two years versus ten years at all. it's just a psychological thing. >> sandy, when we look at the two rounds of stress test, a lot of the banks on dividend yeelz close to 8%. you include buy backs about 10%. this is attractive, is it not? >> it is totally attractive.

we think there are going to be more capital returns out of the banks. they also have the benefit of being anti-bonds they actually do well when interest rates go up when you have an equity income portfolio it's naturally interest sensitive it's a great asset class for us. >> want to break some news in the u.k. we said at the end of the last hour the fact the prime minister has sort of gone on business as usual after those high profile eza relati resignations he was a prominent remainor during the remain camp, albeit has switched -- he said in the last few months or so this is something we do need to carry out and claims if the referendum

now came again he would vote to leave. but certainly not a true brexiteer in the mold of boris johnson. but the prime minister continues and tries to reunite her government -- >> but is the take away from all the walk outs and drama today that the hard line brexiters are no longer running the show, and that's positive for the market, right? >> i think the take away if there's not a vote of confidence, which there hasn't been today, and the longer the time passes since the resignation, theresa may's outline she gave on friday is being supported. if the eu doesn't agree to it, of course she's back under the pressure again but jeremy hunt is the new secretary of state for foreign affairs. we will leave the opening exchange there >> we've only got how many hours to plan for trump's arrival? >> exactly the foreign secretary will be

the main man welcoming him along with the prime minister and the head of state and her majesty the queen. as we mentioned stocks staging a big rally today despite ongoing trade war fears. but our next guest says investors are crazy to ignore the risks of a trade war and lays out his case. plus retail has been on a roll this year coming up the fast money traders tell us whether it's too late to shop for retail stocks and we always want to hear from you itr,can reach out to the show on twte facebook, or send us an e-mail "the closing bell" back after a break.

welcome back to "the closing bell." the chief investment officer warning investors today they may want to get out of the market, tweeting, quote, markets are crazy to ignore the risks and consequences of a trade war. this rally in stocks is the last hurrah and speculates investors

may do better in august. >> stocks seemingly ignoring the battle today we are joined by phone so, scott, what are you so worried about here that other investors don't appear to be at least with u.s. stock ss? >> when you start to consider what's going on, this is trade war and the impact it potentially has the u.s. economy, i think investors are just ignoring the consequences of what's going to have to be done in terms of federal reserve policy to offset the inflationary pressure that's going to come out of tariffs >> so you're worried about higher interest rates from the fed as a result of rising inflation, as a result of tariffs, correct >> that's right. i mean, to take an example -- back in january when we put a tariff on washing machines, that was a 15% tariff the price of washing machines

subsequently rose by 17%, the largest jump on record for washing machines and i think what is happening is that people are being confused by the idea that if you place a tariff on a foreign good that somehow that doesn't pass through to the domestic consumer so let's take, for instance, automobiles. if there's a 25% tariff on automobiles, autos make up about 6% of cpi. if we got 100% pass through of that 25%, which we saw on washington machines, that would add 1.5% percentage points even if we only got 15 ers, that means a 1% inflation from automobiles. obviously the federal reserve has a dual mandate and the fed is going to have to

continue to tighten or actually pick up the pace >> scott, you said this could be the last hurrah in your tweet how long could that hurrah continue if you end up being right? >> that's a great question markets, as i remind people, tend to react slowly to change and obviously we're in the season of strong time for the market i think that this could go on through the rest of the summer before we start to see some sort of a correction occur in september, october >> the scenario you lay out there, it seems like you have to have things get to a certain extreme. in other words, you have to go down a few steps before this filters into measured inflation, before the fed perhaps reacts to it and doesn't overlook it if we get there. is that something the market is going to panic or advance, or do we have to see further

intensifying of these trade measures before the market takes notice >> i think the market has sort of cognizant dissonance, and that is it doesn't want to recognize how bad the consequences to current policy could be and so there's a willingness to just ignore the worst case outcomes or the harsh outcomes and to say everything looks fine and we see it currently. we see earnings extremely strong as a result of the tax cuts. all the positive benefits we have been discounting or talking about since last fall or december are now passing through, and the market is following through. ultimately i think they're going to have to be basically confronted with cold-water in the face and see, wow, these imports are actually starting to drive up inflation and then have the federal reserve have to react. >> so just to play devil's advocate, so far what we have

seen just represents a small chunk of the economy and the overall consumer price basket. washing machines are tiny. if we're talking about autos, that's something completely different. so an optimist would say that's a small fraction of the economy and that might actually bring countries like europe and china to eliminate trade barriers. and the market will show it has less to lose than countries like chaina a china and this will all work out? >> i think that's a great argument and that's an argument agreed to by the market or pre-presumed. i do believe that now president trump and chairman xi has basically shown us that we are not going to back down the united states will not back down, china won't back down. so, you know, i would be completely proven wrong if suddenly, you know, the u.s.

policy makers in washington and in china completely reverse course but what i'm seeing is just the opposite i'm seeing a willingness to dig in the other thing that's interesting to note here is when you look at evaluations on equities in general, on oo forward basis our work shows we would expect a return of about 1% per month on equities based upon historical evaluations. we're not having this event occur at a time when stocks are cheap. we're having it occur at a time when stocks are rich, and that makes stocks all that more vulnerable to the bad news scenario >> we'll see if it pans out. scott, thanks for jumping on the phone. the job market is boonling and coming up we'll look at the war for workers and how it could be a determining factor in this year's top state for business.

plus pretty soon you might not be able to get a plastic st ltet th your icedat a arbucks. find out what the company is replacing those straws with when we come back on "the closing bell." are you done yet? does it look like i'm done? shouldn't you be at work? [ mockingly ] "shouldn't you be at work?" todd. hold on. [ engine revs ] arcade game: fist pump! your real bike's all fixed. man, you guys are good! well, we are the number-one motorcycle insurer in the country. -wait. you have a real motorcycle? and real insurance, with 24-hour customer support. arcade game: wipeout! oh! well...

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taking a stand on social or political issues and nothing new for starbucks. now the coffee chain is looking to lead the way on an environmental issue as well.

kate rogers joins us with the plan >> starbucks making the big announcement this morning it will be eliminating single use plastic straws from its stores around the globe if you wind up ordering a cold beverage or ice beverage you will get one of these. this is recyclable strawless plastic lid they've designed and put out onto the market. straws made from an alternative material will be available if you order a frappucino or you want to request one for your coffee the company said a major reason for this change is the fact that cold beverages are so popular here in the u.s. they now account for more than 50% of the beverage starbucks mix in the country. that is up more than 35% from five yieears ago we caught up with some customers here at times square to see what they had to say.

>> they're convenient and useful i think for a brand like that taking a stand it can only be helpful and better for the environment. >> it's much more convenient, but it's going to be such a mess without the straws >> i think that'll actually be cooler to have a like a sippy cup. i think it'll be cooler than a straw. >> in doing this starbucks now becomes the largest food and beverage company to take a stand on straws. mcdonald's, of course, began the process of phasing them out in the u.k. and ireland they expect that to be completed in 2019. hyatt hotels said this morning they will also eliminate plastic straws and stirs and don't forget seattle hotels put that ban on plastic straws >> starbucks not expected to be the last company to make a change on plastic straws joining us now to discuss the demand his company is receiving,

the packing distributor among other products adam, i have to say i'm not usually a fan of these because they get too soggy we'll put it to the est at the end of the interview talk us through some of the numbers so far clearly a lot of companies have started to make the move but it's not been widely spreadly picked up by companies as strong as starbucks >> it has been been a challenge in the beginning in the eight years we started the company and seeing that change is absolutely amazing because, you know, seeing companies going green this way is really a great -- a great advancement for the country. >> how much does it cost for your customers versus if they struck with plastic straws is it a lot more expensive >> i would say a lot more.

you're looking at ten times the cost if you buy a paper straw it's about 2 cents a and a half from my perspective you go from something very, very cheap to something that's cheap >> so who are your clients and where are you getting calls from >> it goes from small food operators to coffee shops to stadiums like the madison square garden or bakery stores in new york city to some of the maker las vegas casinos. and everyone is looking for an alternative to go green. it's amazing >> home of the cronut. >> that's right. i knew you were going to put that in context for us but you see starbucks, of course, going without straws there's a work around they're going with these kind of sip tops do you think it's going to be a more general solution? can basically they avoid a straw together >> i think it's also a great solution it's a good solution

at the end of the day i'm in the green business, so a strawless solution is a good solution. but as we all know it's not always possible. so the paper straws is the great alternative. but we also started looking at developing an alternative like reusable straws, bring your own straw and clean it home and bring it back the same way you would bring your mug >> so adam, i'm going to say it's a big soggy already it's soft in like five minutes >> yeah, just about. >> so typically would you expect these to hold up for the course of the male, and then last half more than half an hour or so is that fair or not? >> it depends on what you drink. yeah, i think it should hold for about the time for you to drink. it's going to become a little soggy, but you can still drink from it. it's not perfect, but it does

the job. >> i should mention this is in the telemundo cup. adam, thanks for joining us and good luck. i'll tell you what, 4:30, so it's actually time we could switch out the water matt, let's have a look at the markets, how we finished today on wall street a very positive session. the dow up 1% or 320 points shy of the high today. the nasdaq and s&p up 0.9% financials and industrials led the charge with utilities the sector that lagged most of all let's get to some of the big individual stories today in our rapid recap. >> back to the rally that the s&p hits its highest level in three weeks. >> the world's number four smart

phone maker made its debut on the hong kong stock exchange today. and was the day's most actively str traded stock >> starbucks announcing today it's going to be eliminating plastic straws from its store globally by the year 2020. >> the brexit secretary david davis is out the late night resignation comes as a big blow to prime minister theresa may. >> boris johnson who's of course a prominent brexit campaigner two years ago has resigned from the british gufrovernment. >> it is a bold proposal we will setout more fully on thursday. i expect the eu to intensify negotiations over the summer so we can get the future relationship i firmly believe is in all our interests this is the right brexit leaving the european union on the 29th of march 2019 a complete -- a complete end to free movement taking back control of our borders

>> i love the heckling inside british parliament >> i know. but the amazing thing as we mentioned earlier she's already replaced boris johnson and david davis, new secretary in place. and hasn't faced the vote of confidence she could have faced. and tomorrow i think there's a chance of that type of thing materializing. she's preparing for president trump's arrival. >> the pound slightly weaker time now for a cnbc news update. here's what's happening at this hour, everyone. florida's governor rick scott issuing a state of emergency after an overbloom of algae along the river. he made the announcement after touring that river >> it's frustrating to see this in the water so at the state level we're going to continue to do everything we can. i've already asked dep to do

some monitoring so we'll have a better idea. you're trying to figure out what exactly is causing the problems. the man accused of planning a july 4th terror attack in downtown cleveland appearing in court today. facing a federal judge after the fbi said he planned to launch the attack at the city's holiday parade for a fireworks show. and a generic drug used to slow blood pressure might help slow type 1 diabetes that disease can often be found during childhood but adults can also be diagnosed. over a year they needed less insulin than other on a placebo pill you are up-to-date that's the news update this hour i'll send it back down to you. >> thank you very much sue herrera back at hq kroger announcing today it plans

to get back into the retail space. >> known from club monaco, pink tartan and others. this comes on the heels of michael korz, saying the stock's evaluation is quote, too low to ignore joining us to discuss cnbc fast money traders tim seymor >> did you know the background of the designer because i did. >> i think you're running right down to kroger to buy your next soon, right? >> all of my clothes, no doubt about it >> this fall they're coming to kroger what's the sentiment down there on retail in general obviously there are winners and losers in the group but it's been outperforming >> let me jump on the staples retailers. i think the 45% move up is

really just a catch-up trade, and i would leave these things for dead i think whether we're in a rising rate environment or not i think these peaked a couple years ago. whole foods kind of encroachment on the consumerable space means i don't want to be kroger right now. >> i like the rebound this had the fact it's back to where it was i think actually shows you there are companies out there beating and winning. and i think the ones that are really winning are names like target, tj maxx, macies. if they're doing the right thing and attacking where they need to and focusing on where are they getting their sales from, i think those are the ones that are winning. and obviously you've got to have a presence in e-commerce

if you can compete you can do well look at target right now, still trading at a 13 pe the stock trading at still 52-week highs. i think there are names outright now in specific retailers that can win. >> i don't want to be there. meanwhile korz, i think it's a different story. i think they're much better in terms of inventory they're not overpromoting. management has been very disciplined in maintaining margins. >> that update today sounded very temporary it looked like they were looking very short-term. hey, we think right now evaluations are there. i think short-term you can be in a michael kors do you want to be there

long-term? i'm not so sure. >> tim and pete, thank you very much and we look forward to fast money, the chief economic advisor gives us three market prediction just before we leave this discussion coming into earning season, staples discretionary -- >> it's been the clear leader and i think you've been in this sort of zone where the retailers have gotten so cheap with a tail wind of a strong consumer and a little bit of pricing and clothing coming back a little bit that they've run a lot and they're still not expensive because you have gap and khols i still think the secular concerns are going to be there so they've been able to perform without necessarily being expensive yet. >> up next find out whether americans are taking advantage of the surge in their tapable

home equity. >> plus the 12th annual top state business will be revealed tomorrow at squawk box coming up we'll get a hint on which state could be taking home the crown and find out why skilled empleewa toys nto move to that particular state

home owners are getting more equity rich these days but they're not necessarily taking advantage of it. diana? >> well, sara, it seems more people are getting more conservative with their home values even as their values skyrocketing the so-called tapable equity moved by 7% in the first quarter this year according to black knight that is the single largest quarterly growth since they began tracking it in 2005. home owners have a collective $5.8 trillion in tapable equity. that is the highest ever reported so what does that mean to average homeowner with a mortgage, he or she gained $14,700 in the past year, but

fewer people are doing that. home ectie lines of credit were flat at the start of this year and for those using them the amount cashed out was as a two-year low interest rates are higher today so they're losing that rocket bottom rate, and they also are not taking much money out. so why refight to a higher rate, because those first loans are generally fixed rate home owners today do not want to gamble on that monthly payment again, very conservative back to you guys >> thank you and for more on the surge in home equity you can always go to cnbc.com cnbc reveal this state for top business tomorrow. and scott cohn is in that mystery state right now. trying to take a look. give us a tease. >> well, a mystery it's going to remain just a little while

longer the way we come up with america's top state for business is primarily data, but we also go out around the country trying to test some of that data. coming up we'll look at one of the studies for our travels. it involves thhee lp wanted signs. that's coming up on "the closing bell." originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

welcome back to "the closing bell." harvey weinstein back in court

ipnew york city pleading not guilty to more sexual assault charge hey, contessa. >> hi there. so harvey weinstein is facing more charges the former studio head 66 years old walked into court. the most searerous are felonies of predatory sexual assault plus another count of criminal sex act for allegedly forcing himself on a woman in 2006 so this means there are six charges against him total. and his attorney expects there will be more charges coming down the pipe though weinstein is out on a million dollars bail, today a prosecutor asked he should be on house arrest and the judge decided to keep the bail conditions the same weinstein was fired from his own company last october and then last friday the

weinstein company made a deal with creditors that allow a sale to go through to lantern capital. weinstein continues to insist all of these allegations are against him. he says he expects to be vindicated. very muc for that, outside that particular courthouse. when we come back, we'll get another hint about this year's top state for business on the closing bell

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welcome back to the closing bell, it's that time again america's top states for business is back a closer look at a problem plaguing employers across the country and a hint for us before he reveals the stull odds tomorrow.

>> this state, all of the states are doing with this. it's a serious battleground. for the fourth year in a row, workforce is talking about the study. we found that states are in a war for workers. >>. >> it's dinnertime at the four quarter restaurant 37. >> the most important meal of the day, because it's the only meal when they're open many. >> the only thing that's holding you back is not being able to find people? >> absolutely. the idea of trying to open more services here, it's not even -- we can't even barely staff our dinner service >> the four quarter is in madison, wisconsin the labor department reports 6.7 million job openings nationwide, more openings than there are unemployed fell to fill them >> in especially short supply,

skilled workers whether on computers or kitchens. it's really bad in wisconsin, with unemployment at historic lows, and that's before the giant foxcom plant that's supposed to earn 13,000 jobs wisconsin is targeting chicago millennials. >> in wisconsin, the average commute is less than 22 minutes. >> health care executive patrick cunningham and his wife made the move three years ago >> beer and cheese, that's farming, maybe, that's all people think of. >> it will take more than flashy ads. trying to eliminate the skills gap. >> i grew up in the chicago area i don't know why beer and cheese

is a problem how did wisconsin do with the workers shortages, how does your state rank we'll tell you all of that tomorrow one more diabolical hint, that is hot hot hot what does that mean? put it together with others, the #topstates guys, tomorrow, here on the closing bell we will talk about the most improved state. which is one of the big surprises in this year's study >> i have a question for you are you on a sand dune just over the hill >> i'm on sand, i am on sand, that you caught, that was good >> i think you're trying to trick us >> of course i'm trying to trick you. >> mike claims to have predicted it correctly every year.

>> the past two years. i haven't had time to feed the algorithm. so i -- you know, i'm hesitant to actually go ahead without -- >> give us your top two. >> i'm leaning toward coal kohl, georgia may be in the mix, so. >> we know you're not going to tell us. >> that's too good to -- >> georgia, i think you said on a hothousing market in denver. >> we look forward to the actual answer tomorrow live on sidewalk box if you make it three years out of flee, that's pretty good. >> you'll make your official call on sidewalk box >> it was washington and utah the last few years >> nobel prize was one of the. >> noble that was the pun >> very encouraging --

>> this is three days in a row i think it's a little bit of a make or break, we have to see if we can crack above this range. they can have a little bit of an opening here >> we'll get his prediction then >> pepsi earnings are out tomorrow. >> that does it for closing bell enjoy fast money which begins right now. >> fast money starts right now >> i'm melissa lee, tonight on fast, it is a twitter takedown, the stock getting crushed today as the social media giant admits there's a lot of fake accounts out there, but the expulsion of fake accounts could lead to real money. >> thil tell us how much -- >> apple lagging behind, the chart master sees something that has him pressing the buy button. why he's calling for an apple turnover we start off with a market rally. the do