that seems low i think maybe a little naive >> but maybe they are more into experiences and they -- >> save the money for a nice honeymoon. >> exactly >> nothing wrong with that >> to each his own thank you for watching "power lunch. >> and "closing bell" begins right now. we're going to ring the bell welcome, everyone, to "closing bell. i'm sara eisen stocks are rallying again today after posting their best week of the year last week i'm here at the raytheon post. stock story of the day, the stock is higher. one of the biggest mergers of 2019 an all-stock deal with united technologies we'll have everything you need to know about that deal. who could be next. and of course all the other big stories investors need to know as we head into the close. and i'm wilfred frost. good afternoon to you. let's look at what's driving the market action today. tariffs on mexico were avoided and investors hopeful of a deal with china treasury yields are rising and the return of merger monday

with the raytheon-united technologies deal and salesforce buying tableau software has us up by 145 points on the dow. joining us for the first full hour of the show j.j. kin ahan from td ameritrade we mentioned yields there. that's playing into one sector as well. >> it absolutely is. the financials overall one stock that reflects it has been citigroup the stock's up almost 2 1/2% today. and i think financials in general, wilf, are a good summary of the last six days even though rates have been kind of beaten up, they've actually done okay because there's been a pent-up demand for stocks overall. >> financials up 1.2%. only one sector higher still, consumer discretionary tech also up more than 1%. a risk-on day for sure big stories we're watching today. bob pisani's covering the big stock movers kayla tausche. morgan brennan has the latest aerospace deal and josh lipton on the salesforce deal. >> hopefully the fed's going to cut rates in the next five or

six months but it's the trade-related names moving again. semiconductors, transports, retail, bank stocks, industrials all moving today got a nice cross-section of new highs. a lot of them on friday. we hit 20% of the s&p almost american express, microsoft, walmart, visa, all 52-week highs as well. ae aerospace names on the united tech raytheon deal lockheed martin, l-3 also 52-week highs. stocks are right near new highs. 2900 2945 is the old highs. the problem is it's pricey now 17 times forward earnings. that's where we were about a month and a half ago so we are pricing in a china deal, even though we don't have one. and we're pricing in a couple of rate hikes a lot has to go right now for the stock market to stay up here guys, back to you. >> all right, bob, thank you president trump making some new comments on trade in an interview this morning with cnbc kayla tausche with all the details in washington. kayla. >> sara, making a lot of comments on trade. president trump thanking tariffs for producing that deal with mexico in a matter of days despite objections from the

business community and from republican lawmakers and president trump says tariffs will secure a deal with china too. he says beiging is having lower prices to american importers so they will still buy its products but that american companies have been so far left unscathed >> you haven't seen any or virtually any price increase because what china does, it's basically their companies, they subsidize their companies because they want to keep people working, they want to stay competitive. we have another 300 billion to go with china. i haven't done that because it's a very big thing for them. not for us for us it's not going to matter because we'll be able to buy the product in other countries that don't have the tariffs so it's not going to have an effect >> that will not be true if trump does press forward with that last tranche of tariffs on $300 billion in goods. he says he has no problem with doing it he says there won't be an effect on the u.s but the treasury secretary has said the opposite. he said that group of products by design includes the majority of products that consumers buy here in the u.s. from china,

wilf, and that they had been saving for those last in hopes they would not get to them back to you. >> but kayla, nonetheless a positive tone as to whether g20 meeting will take place and whether a deal is plausible this year at some point >> yes and he specifically said that he still expects to meet with china's president xi jinping at the g20 on the sidelines there there had been some state media reports in china that potentially china was reconsidering that meeting they were weighing whether or not to put their president face to face with president trump and risk a potential deal falling apart in any political humiliation that would result from that. but president trump says nothing's changed on his end >> kayla, thanks very much for that let's turn to the first of two big merger deals today raytheon and united technologies morgan has the details for us. >> hey, wilf the combo of raytheon and united technologies, ex otis, ex carrier work create an aerospace

and defense giant second only to boeing in sales. about $74 billion annually the new raytheon technologies, as it will be called, expects a billion dollars in cost synergies in year four but it's really about the tech when i sat down with the ceos, greg hayes of utc, raytheon's tom kennedy, they talked about leveraging applications across commercial and defense platforms. >> i think about artificial intelligence and autonomy in the cockpit, for instance. there's a need for 500,000 pilots in the next ten years around the world tough to solve that problem, but we can get there because of autonomy and machine learning. a lot of the things that tom has. >> now, kennedy as well also talked about hypersonic missiles which raytheon is developing and which produce a lot of heat. that's an issue pratt & whitney knows how to counter with its own jet engines as well. and guys, one of the key questions here is going to be looking forward this is a major deal it's going to create a company that is valued at more than $100

billion. could we actually see more consolidation, more m&a in the space moving forward >> it's such a big deal and so transformative, morgan, when i hear you talk about it are you surprised to see the somewhat muted stock price reaction >> i actually am a little surprised. i think some of that probably has to do with the comments from president trump on "squawk box" this morning saying that he wanted to take a look at this and he was a little skeptical about what this does to competition. that being said, keep in mind both of these companies actually, the sector more broadly are up double digits since the start of the year. we've seen a big run-up and valuations have once again for many of the names more broadly across aerospace and defense been getting a bit expensive based on some metrics. so perhaps not that surprising also, it's a merger of equals. so there's no premium being paid here either. >> good point. morgan, thanks we are also watching deal news today in the tech space. salesforce buying tableau software for just over $15 billion. josh lipton has more on that deal from san francisco.

josh >> sar ara, salesforce will buy tableau software for $15.7 billion. an all stock transaction expected to completed in the fourth quarter steve koenig of wedbush calls it transformative for mark benioff's company because it means he can offer his business customers something they desperately want, more ways to gather, order, and analyze the data they collect. he also calls it a shos across the bow at microsoft, extending their rivalry in sales tracking software to the analytics market wilf, back to you. >> josh, thank you very much for that and don't miss jim cramer's exclusive interview with salesforce ceo mark benioff tonight on "mad money" 6:00 p.m. we have 53 minutes left of trade. we're up 141 points on the dow the high of the session was up 226. the low down 70. so about half a percent of grains for the dow nasdaq leads the charge 1.4% higher and the small caps the russell taking part today up 0.8%. let's bring in laurie from rbc

capital markets. j.j. kinnahan still with us. do you think the change in sentiment we got from the fed and the slightly improving news on trade justifies the bounceback we've seen in markets in the last week >> you know, i do think that hopes run easier fed and some cuts down the road is a good thing for markets. it's certainly a good thing for risk assets. we usually see small caps outperform large caps. regardless of what's going on in the broader market when the fed is in easing mode. the problem is we're just not there quite yet. and i do worry a little bit that markets have been a little bit too aggressive in the timing of the cuts >> what's going on, j.j., with the small caps lagging behind? >> i think part of it in what we saw, if you look at this last sell-off, sara, i think part of the sell-off was not that people wanted to sell so much as that there were a lack of buyers. part of the lack of buyers in my opinion was people turning to fixed income rather than turning to the small caps as a hedge against tariffs. and i think that's been a little bit of the change that's gone on right now. and then of course if rates do go lower many people that turned

to those u.s. banks before, they don't look quite as attractive so i think there are some sectors in the russell that maybe just don't look as attractive as they once did. >> lori, what's your view on that and the type of banks that make up the russell and the regional. >> when you look at small cap you've got regional banks. they tend to be pure plays on the u.s. economy so they really should have got then benefit from the trade war, especially when the mexican issues were coming up. i would actually say small caps lagged recently for a very good reason, which is that investors are starting to question again are we late cycle in this economic expansion-s there a recession around the bend. we've seen very consistently that when you are seeing a slowdown in economic data broadly, small caps tend to underperform and that is what we are starting to see economic surprises in the u.s. have also been disappointing that really triggered this last batch of small cap o outperformance i think you have to ask yourself the reason for the underperformance is it telling us something about the broader market, is it telling us something about the broader economy going forward.

>> one thing i guess i would say is i agree with much of what you said but i think if tariffs do at some point get some resolution, no matter which way you want it, that will actually help overall i think the fact that tariffs continue to weigh on people's decision-making is part of the -- >> i would actually argue that we have already seen this. so we just did our big deep dive into small cap and large cap and we have basically final stats on capex trend, on buybacks trend in q1. data's a little bit dated but it's a great glimpse of what was going on before the trade issues blew up. we basically already were starting to see capex go flat, both the growth part of the market and the value -- >> are you saying the market's expensive? the market is unbelievably dppsive. it's unbelievably crowded. i think what the small cap underperformance is telling you is the market and economy are starting to get a little bit sick people are cheering the medicine and forgetting about the fact that we have an illness that's starting to -- >> but you like utilities, which is one of the most overvalued sectors. >> so we actually -- we noticed that it's overvalued highly in small cap but frankly valuations

there don't tend to dictate forward performance. in large cap we actually find it's a little bit overvalued it's not back to peak multiples relative to the s&p. so we do think there is room there. >> lori calvasina, great to see you as always. j.j. here for the full hour. beyond meat rocketing up nearly 600% from its ipo price. we'll take a look at how retail investors are playing that name. >> plus president trump taking a shot at one of his favorite targets today. >> we have people on the fed that really weren't -- you know, they're not my people. but they certainly didn't listen to me because they made a big mistake. they raised interest rates far too fast >> ahead we will get reaction to the president's fed criticism from former treasury secretary lay mms.rrsuer [ sitar music playing ]

chloe, why is there a lamp shade on your head? shhh. my owner might have given me a little bit of cat nip. uh. [ laughing ] it's great, listen. it is great, gidget. everything is grand. [ meow ] [ purring ] [ growl ] are you finished? [ cooing ] that was weird. oh sister it's gonna get way weirder. hi, wilf thank you very much. running through real quick what

we're going to look at killing it software. i'll elaborate on that in a second row row row the boat is risk on risk off rotation. crowded at the top lots of new highs. we'll detail that. and then corporate coupling or really almost the lack thereof on the m&a slate these days. killing it softly. had a big software merger today obviously announces salesforce.com buying tableau. pretty big, 15 or so billion dollars but it really ratifies the strength of software as a leadership group crm part of that leadership and some of the smaller ones have participated the software etf the igv handily outperforming the overall tech sector and then semiconductors it has been mr. platforms, networks, software, enterprise spending, not at all about hard rair, really apple has done fine but it's not helping out the overall hardware group so the question is can that continue, are we going to see another kind of deal spate to have maybe another leg of this

move or not. but i think unless otherwise proven software seems to be the leadership within tech and then tech the leadership within the markets, guys. >> and semis somewhat of a by-product of the latest trade headline >> noh absolutely. no doubt about it. and software, relatively insulated. by the way, microsoft back over a trillion dollars in market cap. that's helping out too >> mike, thanks. we'll see you in a bit shares of beyond meat up more than 600% since its ipo. the market cap of this company is now bigger than those of mylan pharmaceuticals, whirlpool, macy's, and trip advisor. it's one of the top names that td ameritrade investors bought in may j.j. kinnahan has a read on how they've been reading this stock and other high-flying ipos of the year so retail investors bought into beyond meat? >> they did buy into beyond meat it was one of our top traded stocks last month. it's kind of interesting as you look at the imx overall. the imx measures people who engage with the market at least

once in the month and measures their exposure to the market it was up almost 7% in the month of may compared to april when i was here talking to you guys about the april one and we talked about how people had gone a lot more toward mfixed income and not as much toward equities. in may they switched that around beyond meat and uber two of the bigger names they went to. beyond meat you want to warn people, hey, this has really gone up fast you might want to be careful but it's been an incredible move. >> gauge for us the level of interest in beyond meat for retail investors for a company that's only -- we're saying how big the market cap is for its sales but it's only a $10 billion market cap was it bigger than -- >> it wasn't nearly to those levels it's interesting as it traded more it started to get more interest. actually, we had more interest in uber originally than we did in beyond meat because i think more people were familiar and had used the products in uber than beyond

meat >> the other question it raise is is it some sort of bubble when you have some sort of hype around something like a bitcoin. i remember when taxi drivers a few years ago were asking whether they should buy brazil as an equity before the bubble popped but then that was a warning sign >> i think it's a great question, sara, and i think one of the things you have to be careful of all the time is again, when something goes straight up like this has without any sort of pullback whatsoever, it would make me very cautious. i do think you try to educate everybody, et cetera, and the one thing i'm happy to see is we have a broad base of clients going into it and they're not going in with 50% of their portfolio, et cetera most people are going into it with a smaller percentage of their portfolio. sow like to see that so at least it's part of their portfolio that's more speculative. >> you said your investors were buying uber during the last month as well. were they price sensitive? was there -- >> yes, p absolutely there were two stocks that are were very price sensitive, uber and tesla.

as those stocks started to sell off -- >> what were the price levels? >> on tesla i know it was the 190 level for sure soon as it touches 190 on the down side. uber every since'll week of the month of may as it went lower prices we just saw more people coming in to buy it. they definitely wanted to buy it overall. and one interesting sell i wanted to mention, we talked about it before, is facebook for the seventh month in a row was a sale you have to remember, this is one of our top five holdings two years in a row but as facebook as a company has come into more of the government's crosshairs, if you will, our clients are just a little bit more cautious with holding on to the stock longer term >> and netflix, another fang -- >> they sold netflix, bought disney i think that could be a play on disney plus. >> j.j., thank you we've got 40 minutes left to go before the close take a look at the dow there's netflix down 2 1/2%. dow's up, though, 136 points we're building on the gains we saw last week. best week of the year. nasdaq doing the best, up 1.3%

the leaders today in this market are consumer stocks and technology still to come, hot stock tilray has fallen off a cliff from its highs of last year but seeing a nice pop today. we'll tell you what behind that move straight ahead. >> and up next a double upgrade for a real estate firm and a bearish note on beer we'll get that and much more still to come on "closing bell." oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this?

it's your piano. hold this for a sec. we don't have a piano. no.. but the neighbors do. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing.

the flexible class schedules d me tremendously. allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through.

welcome back under 40 minutes to go before the close. dow's up 122 time now for "word on the street." redfin got a double upgrade today to overweight from underweight from stevens the firm raising its price target to $23 a share from $18 saying that company's laying the groundwork for more e-commerce type offering in the real estate space. meantime, credit suisse initiating on moulson coors wan underperform rating and a $50 price target the firm cites changes in the u.s. beer market and that coors has the highest exposure to segments declining the quickest. credit suisse also upgrading

sirius xm to outperform from neutral. it says with the pandora acquisition behind it the satellite radio company has an attractive risk-reward j.j., your clients are active in sirius >> yeah, our more active clients really like sirius it's an inexpensive stock. i won't say it's cheap but it's inexpensive in terms of pure price. you know, at $5.43 basically traders like it because it does move around a lot. they have had a lot of issues with the pandora acquisition i think it's very interesting to say the risk-reward may be there because first of all it is $5 but ithas been hit pretty hard much more than the overall market since, you know, late last fall with the pandora news. >> the credit suisse note very much pointing to an attractive entry point, down 50% since the pandora -- >> trading at 26 times next year's earnings. >> s&p up in that time >> yeah, that is -- >> go ahead. it's much more about exposure to the u.s. beer market and the fact it hasn't diversified into more premium areas is that something that you think

they're missing a point on at all? >> no, i think that that is a concern for them the interesting thing about moulson coors is if you look at their p/e ratio it's actually much lower than historically right down here. it's one of those things where you look at it and say okay, 134g has to give and there has been some negatives there for the last six months or a year or so the price of canning their goods has gone up even without tariffs necessarily. the price of canning their goods has gone up. in terms of aluminum so overall they have a few things working against them. >> 4% off the back of the credit suisse note. we have overall 35 minutes left of trade and we are up 118 points on the dow. just slipping a little bit in this final hour of trade but certainly a possession after of course what came off the back of a very positive week last week still ahead we'll discuss which other defense names could be in play on the back of the massive merger of raytheon and united technologies after the break, china trade taking center stage once again after the trump administration reaches a deal with mexico we'll discuss the odds of a

china agreement with the council on foreign relatio psintnsrede richard haass after this mexico deal coming up

the return of merger monday today with the raytheon-united technologies deal and salesforce buying tableau software. two mega deals time to get a news update. cnbc news update with sue herera hi, sue. >> hello, sara hello, everyone. here's what's happening at this hour one person is dead the pilot of a helicopter that crashed into the roof of a 54-story officing about building at 787 7th avenue in manhattan no indications yet as to what caused the herniate to hit the building so far officials say there is no indication of terrorism but questions remain about why that helicopter was flying in such bad weather and in the no-fly zone of midtown manhattan. russian police have broken up a criminal ring recovering roughly $3 million worth of diamonds and 2.5 million in

cash the gems and money were stolen from state-controlled diamond producer alrosa. three suspects including one alrosa employee have been taken into custody dallas, texas recovering from a major storm that killed at least one person and injured five others. skyscraper windows were blown out by 70-mile-per-hour winds. officials are working today to move downed trees and repair traffic signals. and take a look at this. that's a rare look at the bambino in baltimore a unique photo of babe ruth taken in 1914 has been sold at auction for just over $190,000 the photo shows the baseball legend at 19 years old and a rookie in the baltimore orioles organization you are up o'date. that's the news update at this hour wilf, i'll send it back downtown to you >> okay, sue, thank you very much we'll see you next hour. meantime, let's send it to mike santoli for his second market dashboard. >> calling this one row, row, row the boat

risk on, risk off. that pendulum is swinging. and then we have rotation under the suvs of this little rally we have today take a look at the s&p high beta and s&p low volatility etfs. we look at this a lot as a little bit of a tell on exactly whether the market is embracing risk or running away from it very, very clear picture today the high beta, the more aggressive portfolio here, outperforming by about a percentage point and a half throughout the day this is obviously a comeback trade. you had those defensive stocks outperforming for much of may and i do think this shows the market is relatively in gear, trying to help out, get those cyclical groups up as treasury yields are rising. also take a look at a little bit of a sector breakdown, offense versus defense very similar picture you see the banks, has the kbe and the iyt is the transports. banks and transports handily outperforming utilities and real estate which had been the safe outperformers for a while. one thing to keep in mind we've been talking about how treasury yields got so kind of oversold so to speak, so low on the

charts and so compressed that they have a good room to lift just to get back really to their trend. and as long as that's going on you might have a little bit of support for this kind of risk on rotation even if the overall indexes maybe don't make too much headway now that the s&p is not too far from its highs, guys >> mike, was this not the theme last week? this is a fresh theme for this week's rally >> i think it's become more pronounced when treasury yields were making new lows you really did not have for example the banks released transports still were not outperforming. today it seems like there was a little bit more of a green light for this type of action. >> okay, mike. >> want to stick with the comeback trade, j.j. >> a little bit of the trend is your friend. but actually i must say as we get to 2900 in the s&ps it does seem a little bit tough to stay will as i said at the start of the show i really think the tariffs have actually artificially kept us in a range and as we go down it's a little bit of the fomo trade full that in case tariffs are settled people don't want to

be short but as we get higher people have a tough time to commit when you're within 1% of all-time highs it's very difficult to commit new money to this market. >> all right mike, thanks see you in a bit president trump calling in to "squawk box" this morning for a wide-ranging interview here's what he this to say about u.s.-china trade negotiations at the moment >> china deal's going to work out. you know why because of tariffs because right now china is getting absolutely december mai decimated by companies that are leaving china going to other countries including our own because they don't want to pay the tariffs. and china will in my opinion based on a lot of facts and a lot of knowledge, china's going to make a deal because they're going to have to make a deal >> let's bring in richard haass, president of the council on foreign relations. richard, does china have to make a deal >> china wants to make a deal in principle. but have to make a deal? no china has politics too and they're not going to, for example, sara, totally change their economic model simply to get a deal

>> will they therefore suffer significantly? do you think the president would therefore go through with the next leg of elevated tariffs >> if he does, they will pay a price, as will we. you know, trade wars, there are no winners, as the cliche goes contrary to what the president predicted. they're not easy to fight. they're not easy to win. china will pay a price we will pay a price. the world economy will pay a price. >> is there any lesson from what happened with the mexico tariff threat, the fact that he didn't follow through with it, the fact that he seemed to get the concessions that he wanted on immigrations as it relates to the china scenario or not >> i don't think it helps the president because what he got from mexico, it's not clear how much was new and then also we have to see whether it's actually implemented. mexico doesn't really have the national guard up to speed to place on its southern border we'll see what happens with the processing of asylum claims and so forth and the fact it was walked back against pressure from the congress i'm not sure that really

strengthens his hands. plus the fact that it was introduced right at the same time we're trying to get this new agreement through the congress it raises questions about how -- whether we're a reliable negotiating partner when it comes to trade >> does the president have a point whether he's talking about imposing tariffs on mexico or china or even on the eu, even if there is a price to be paid by the u.s., as you've already suggested, that the price in a relative sense is going to be less than any one of those competitors? >> again, i'm not sure how that helps us even if others might pay more of a price on occasion happen we do if they're willing to pay that price, i don't see how that leaves us better off again, what we're seeing is the overuse of certain tools in american foreign policy. tariffs as well as sanctions and i think there's as well the question of long-term consequences of doing this but i don't see us for the most part emerging stronger as a

result >> what do you mean long-term consequences >> well, i think this is going to increase the tendency for others in the trade area to try to find certain ways of avoiding the united states. i think at some point it will raise interest in finding alternatives to the dollar as the world's global reserve currency if the united states is so willing to weaponize the tools of international economics, others are going to want to try to find ways to reduce their vulnerability. >> where do you stand ultimately, though, on the big headline trade issue of the u.s. and china and whether there is going to be a deal before the next election or whether both sides are just going to stubborn each other out >> i think there can be a deal, but we would have to slightly lower our sights we're not going get china to cut out most of its subsidies. but if we're willing to take something less than, that then yes, i think we can get a deal and then the real question is how well china implements it again, i think both sides would

like a deal in principle but neither side now can be seen for political reasons to be caving in to the other. >> just quickly, richld, where do you think the tariff and trade issue goes into the election it seems like democrats are pretty much in agreement with president trump on these hard-line tactics. >> you're absolutely right in some areas it's very hard to see a lot of light between trumpism and what several of the democrats, particularly those on the left, are saying it might even, sara, be one of the reasons the president's being so muscular in this area he doesn't want to get outtariffed by the democratic challengers, particularly in some of the midwestern states, being tough on trade has got to be good politics >> i haven't heard any candidate talk about good economics on tariffs. richard haass, thank you >> thanks. >> council on foreign relations. it's merger monday up next we're going to dive into the new deal between united technologies and raytheon. what other companies could be in play in that sector. >> plus, shares of prevention bio soaring 250% in today's

market session yes, 250%. we'll break down what's driving that move, coming up on "closing bell." this is not a bed...

it's a revolution in sleep. the sleep number 360 smart bed now from $899... senses your movement and automatically adjusts on each side to keep you both comfortable. and snoring? how smart is that? smarter sleep. so you can come out swinging, maintain your inner focus, and wake up rested and ready for anything. only at a sleep number store, the queen sleep number 360 c2 smart bed is now only $899. plus, 0% interest for 48 months on most beds. only for a limited time.

welcome back president trump expressing concern over the united technologies and raytheon merger this morning the combined company would xwk the second largest aerospace and defense company in the u.s. behind boeing. joining us now to discuss is josh sullivan, managing director and senior analyst at seaport global josh, very good afternoon to you. thanks for joining us. >> good afternoon. thanks for having me >> is there legitimate concern about this merger? how much overlap is there on their products >> i think that the president's comments were really just about the defense industry consolidation. and some of the programs have been a limited number of bidders on it. so if you do have a large consolidation of the defense base, then arguably the war fighter and the department of defense aren't going to get

truly efficient bidding. so there is a reasonable worry about too much consolidation in the industry that being said, looking at united technologies and looking at raytheon's portfolio, you know, there's only about 1% of overlap and it is really more about bringing in a commercial mindset. we view the combination of united technologies and raytheon, you know, largely getting around those problems. but as an industry theme, yes, it is a concern. >> is it a concern enough that other companies that might feel the urge to merge after this wouldn't do so because of the president sort of throwing some skepticism around? >> i think it's going to come down to the pentagon needs if the pentagon feels they're seeing more commercial-like competition, they're seeing better faster cycle times on the innovation from some of these combinations, then i think they can continue and i think that was part of the argument for the united

technology raytheon combination. is that you're going to see more innovation you're goingto see rockwell, collins quasi-commercial model combined with some of the efforts at raytheon to help bring more innovation, faster cycles of products at more efficient cost >> josh, does this kick any other potential mergers into action who are you focused on as potential targets? >> in the past the other large primes you look at northrop and its technology portfolio and obviously it's got some attractive assets in uavs and technology you look at general dynamics and clearly they have a strong portfolio there that could see some strategic action over time. again, it's really going to come down to does the pentagon believe that these combinations are creating more value, creating more innovation at a cost-effective price i think that's really what it comes down to. >> j.j., if your clients come to you and say how do we play this

consolidation in aerospace and defense, what do you tell them >> i would think that overall low interest rates you may continue to see some more of this obviously, this one as josh just said, does a great job of combining some businesses that weren't particularly efficient before now you're putting efficiencies. so longer term it seems to be i would think good for both companies. >> so you say buy utx? >> there is one element i do wonder about if josh is still there and that is otis elevators is 21% of utx's revenue right now. how does this fit into the whole plan >> josh, your take on that >> i think if you look at potential plans to ipo there was reportedly some bids from another participant in the elevator market who found value and really helped set the valuation expectations in that market so i think that bid really does help the otis argument and where it fits into the overall kind of some of the parts analysis on

united technologies. >> josh sullivan, thanks for joining us >> absolutely. thank you for having me. >> the dow is on pace for its longest win streak in over a year, gaining 107 points as we speak. just off the highs, which was 226 points but nonetheless a possession across all four of the major indices. up next we've got your last chance trade >> later former treasury secretary larry summers will tell us whether he thinks the president's criticism of the fed jtied we'll be right back. forced camaraderie.hould t and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

you guys be good. i'llshe's gone.ter. it's a dangerous world. [ screaming ] [ grunting ] woo hoo! [ screaming ] pops are your friends gonna die? pickles don't be so dramatic. but yes probably.

there they are. aww! welcome back secretary of state mike pompeo just making some comments about the mexico deal to avert tariffs. let's have a listen. >> on the border you saw that the announcement was that the president would indefinitely suspend the tariffs. that means if it's the case that we're not making sufficient progress, that there's risk that those tariffs will go back in place. and as we had these conversations -- >> mike pompeo just there. no real reaction in the markets. it's confirmation of course that tone of what we got over the weekend in the comments from president trump this morning and a more positive tone in general on trade has helped markets but no further moves >> i think the more positive tone on trade but let's not forget an administration that i think you just heard the

secretary make clear there isn't afraid to use tariffs when it comes to threats if it's not getting what it needs on deal terms like immigration from mexico >> yeah. >> still a risk for investors? >> yes until this is settled it's a risk the market hates things that run settling and unsettled this continues to be unsettling and unsettled. >> yeah. mexican peso still with a nice 2% move up meanwhile, let's check in on some individual market movers today. kraft heinz getting a pop after the company says it did complete its terminal next vin its acting practices. though the company says an s.e.c. investigation is still ongoing, stock up more than 5% still down 30% this year down more than 50% from its 52-week highs. check out shares of tilray also getting a boost today after the company reached a deal with its majority shareholder privateer holdings to sell the fund's stake over the past two years. privateer currently holds about 77% of tilray's outstanding shares so at 12% move up. those stocks, though, have been sort of not the best in the eyes

of the market. >> tilray had been up as much as 20% earlier. 11% for tilray of course not as much as it is for others because it's quite a volatile stock. privateeers you said own 77% some people were short tilray because they thought this liquidity event would be sooner faster sharper it's a two-year managed and that's why it's up despite news of getting out up 12% as we speak it is time for your last chance trade. 10 minutes left to go of the session. j.j., what are you going for >> i think one of the most interesting stocks is cisco systems. and for a few reasons. number one, now, first of all, there is a risk there in that it is only about a dollar off its 52-week high so when you see something like that you have to be a little careful. but longer term they have. >> really interesting things going on first of all, they are not one of the top five companies anymore in sitting on cash with the tax rules last year they have started to use some of their cash for buyback for

dividends. one of the other things is we just got done talking about a day that's a merger monday sitting on a lot of cash, low isht rates, are they out looking at other sninthings it will be interesting to see if they're out dogging some there plus every assessment i've seen about china tariffs if they do go into effect and the companies that seem to from the tech space have the most resiliency to it, cisco systems is always in that list so there are a cull of things from a protective i guess you would say viewpoint that could be going for them longer term. >> j.j.kinahan from td ameritrade thanks for joining us. >> thanks for having me, guys. always a pleasure. >> after the bell expecting to get guidance from slacks financials let's get to deidra bosa with what we can expect hi, deirdre. >> this is slacks' first quarter earnings as it gets ready to become a public company through a direct listing on june 20th. we did already get the financials and it's updated 1:00-1, the q1 financials that is pp they showed narrowing losses and nearly 70% retch growth. what we are looking for after the bell today is guidance

can it continue to narrow those losses and importantly show investors a path to profitability as we've seen with other money-losing unicorns? lyft and uber. that is critical for public market investors at 5:00 p.m. eastern the slack team will be holding a conference call with the prub and we'll be on it guys >> deirdre, thanks very much we look forward to those details when they come up next on "the closing bell" we'll be covering all angles of the market close in the closing countdown. >> as we head to break here are the winners and losers in the dow. which is up 86 points. we're losing some steam here going into the close eight minutes to go. clbl clnl will "closing bell" will be right back causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish.

in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

don't get mad. get e*trade, dawg. five minutes left to go. time for the closing countdown dow losing a bit of steam here, still up 91 points let's trade the close first with mike lewis from barclays mike, you've been looking at the relationship between bond yields and stocks how does that look today >> i mean, it's the same story so as we continue to get rhetoric from the fed where it looks like we're going to be having some rate cuts coming up in the future, bond rates are under pressure global rates in particular with germany and japan. the yield on the s&p and just the opportunity on the s&p continues to look attractive the issue that we're seeing,

though, is that until we get real clarity out of the trade wars and the things that are really going to materially move the markets we're not going to be able to get a move up or down out of this range. so we continue to believe you have to trade the range. so as we're up here and you're seeing the dow lose a little bit of steam into the close i think it makes sense you're going to see people looking to protect the portfolios a little bit. i still think 2750 to 2900 is a fair range to trade. and you really have to keep your eyes on the headlines. >> mike, but given -- since where we were this time last week we've seen quite significant gains. what do you think are some of the factors that have driven that >> heading into the beginning of last week there was some evidence of unwinds and some systematic portfolios. so there's a lot of funny stuff going on with positioning on the back end and we've seen some big moves in the factor baskets as well i think at the end of the day like i said, until you get real clarification on what the trade is going to look like, trade war is going to look like, you're not going to be able to have

investors. right now you have a lot of traders. when the market is dominated by traders you tend to get a lot of whippy moves this 6 1/2% move off the low has been more of a short covering, a reversion from the unwinds we saw heading into the beginning of last week, and again, we're not seeing a ton of fundamental people moving and changing their portfolios because quite frankly they don't have the information they need to do that >> mike lewis, thanks for joining us >> thank you >> let's send it over to mike santoli for his third market dashboard. we've got 30 minutes left to trade. >> thursday, friday last week started pointing out there was an expansion in the number of 52-week highs. today the new york stock exchange had over 200 again. that's positive but generally supports the idea that this rally is broadening out. here is the trend in 52-week highs among the s&p 500 companies. and what you see here is a spike late last week that was friday. it was well over 100 and it's the highest number since right in here, which was january of 2018.

that was that real high momentum that was the real peak we saw before a big sell-off. right now you'll say that's good news, it's good when a lot of stocks are making new highs. it tends to mean that you're having some people find a broader set of ideas however, it can also mean a rally's going to run its course if it gets too extreme finally look at this table showing the median stock in different indexes and how far they are from 52-week highs. here we go the median stock coming into today down 9% from its high. but as you go down into mid-caps, small caps a lot of damage, a lot of those stocks well off their highs. that could mean they even have comeback potential or that really the market is just sort of neglecting a lot of those more cyclical aggressive type sectors. let's take another look at the nasdaq which has been the outperformer with bertha hi, bertha >> it certainly has. we were talking about the nasdaq going oin correction now it's well within its all-time highs for may analog devices today is the leader on a double upgrade over at goldman from a sell to a buy.

they say there's a potential increase in valuation there. wynn and kraft heinz which you talked about also among the gainers moving to the outside. chips it's interesting had a strong week over the last week they're up about 9% but they still have not recovered those big losses they saw in may and speaking of highs, microsoft once again on the all-time high list but there are a number of other tech names joining there too including mercado libre. let's head over to bob >> bertha, the dow is up 226 points at its height earlier in the day. but we've shaved 2/3 of that off. only up about 80 points. we did have most of the defense -- the trade names do very well throughout the day so semiconductors were wr a leader bank stocks generally on the upside, all off their highs, though emerging markets had a great day. mexico of course was up. no surprise there. but even turkey and some of the smaller emerging stocks did well

china, south africa all on the up side. finally not a great day for the defensive names. utilities, real estate investment trusts, consumer staples all flat to slightly down there's the closing bell the dow jones industrial average closing the day up 86 points shaving off about 2/3 of its gains today. welcome to "closing bell." i'm sara eisen >> and i'm wilfred frost along with mike santoli cnbc senior markets commentator let's check in on how the marketsed finished today the dow higher by 0.45%. s&p -- sorry, 0.3% the s&p higher by 0.45%. the russell did take part today. has lagged lately more than the dow, less than the nasdaq in terms of sector performance, consumer discretionary tech and financials, real estate and utilities at the bottom. a risk-on tone there to today's markets despite slipping from

the highs. >> tough a question how risk on tone this market is, just look at beyond meat shares settling higher 21% actually 21 1/4% today and that's not an anomaly. it's had days like this. this is the recent ipo that has soared more than 600%. i don't know if it's a sign of risk taking or hunger for strong growing ipos, the company came out with earnings, $40 million in sales $10 billion company. maybe it's just the alternative meat craze whatever it is people watching it it's like when we had the bitcoin when it was going up every day to 20,000. this company is -- >> hunger for fake meat as well it seems also two big mergers that's encouraged activity in the banks as have yields i'd just point out we came off the highs. oil as well, which is positive for most of the morning took a leg down around lunchtime. closing down 1.2%. that's an important gauge of risk sentiment to keep an eye. >> coming up this hour we're

going o'sit down with former treasury secretary larry summers, get his take on trade, tariffs, and president trump's comments this morning on cnbc about the federal reserve. coming up later in the hour. joinin the market today, tony crecenzi is here portfolio manager market strategist at pimco. welcome. also with us is michael nemeroff, ceo of better price. we'll talk a little m&a with him. first, though, mike. we had a strong week was it reassuring to see the follow-through today >> i think it was reassuring you had a kind of further tension release. i think most of the mexico tariff news was probably getting into the market on friday so today was all about treasury yields relaxing a little bit allowing some of the more cyclical stocks that have been beaten up to work a little bit yes you saw some fatigue toward the end of the day had a six-day sprint higher in the markets. it wasn't a major failure but you did have the s&p kind of test above 2900 again, go up into that upper range of its year and a half sideways range and pullback i don't think it's decisive.

but it's totally understandable that after this run you might flatten out a little >> and the treasury curve yield moved today as well. not just helping banks but risk sentiment in general took away that fear we're about to head for a recession. >> there's a lot of room for yields to continue to go higher before they really become an issue for anything i think the big question is the message from yields about the fed because when you get the s&p to 2900 it can't be either we get a trade deal or the fed's going to be okay or earnings -- you probably have to have a lot more coming through. >> keep in mind we're 2% off record highs >> less than 2%. 2945 >> tony, what's the message in the bond market with yields at what are we, 214 >> i was looking at the tally of global bond yields 12 trillion of bonds globally, sovereign bonds, with negative yields so the message regardless of what you think about the next six weeks, the next six months, we're probably going to be, we investors, in a low interest rate climate for many years to come in fact, we would project that the european central bank the

high crest the policy rate will go at any time in the next five years is zero. and same for the bank of japan so the federal reserve perhaps it will lower interest rates as insurance against some of the risks associated with trade uncertainties, et cetera, et cetera >> perhaps doesn't it have to with the bond market this way? >> the odds have increased but there are events at the end of the month, as you know, in osaka, japan, the g20, hosts its first ever meeting of the g20 in japan. the 28th and the 29th, that could well hold the keys to what's next with the fed it's not a done deal and markets are priced for a lot of rate cuts, four in the next year may not get them but regardless, the rate climate will stay low most likely. >> let's dive into that. when are they expecting them to come the equity market may be disappointed if it doesn't come until much later >> the market has greater than 50% odds there will be a rate cut in july. almost three rate cuts priced in for this year and four over the next year. there's a lot of weight put on the fed's shoulders. it's a herculean task.

atlas in terms of lifting markets up based on that view. but if it turns out as mike said some other factor perhaps that drives rates higher there's a little room for rates to go up without unnerving equity investors. it just depends on what causes it >> dare we ask, because it's been wrong every time we've asked before, have we seen the bottom for yields in the u.s.? >> u.s. interest rates could collapse toward zero percent in the next recession very fast because what you'll likely see is the federal reserve commit to keeping its interest rate low untilthe jobless rate falls back toward full employment when the unemployment rate rises. the markets will presumably be four to five years at least for that to happen and that means most yields out to five years we pin near zero just like you see in europe, just like in japan. but that's -- that's the lesson for investors. they should not look away from bonds simply because yields are low because as a hedge against riskier assets, equities and credit there's still a lot of potential for yields to drop beer not saying to make a bet on that but if you want protection

against that there is a potential for a big drop in yields when that time occurs >> what happened to credit today and what happened to the vix today? >> credit was well bid today sow did have -- that fit right in with the equity markets rallying interestingly the volatility index was very stubborn. it only went down to a little above 16 it seems as if the options traders are going to believe the new highs when they see them and not going to buy into this move necessarily being an up, up and away type of event it could just mean there's event risk out there you have a fed meeting you have obviously the g20 maybe no need to kind of drain away all that protection >> the other big story today, merger monday. united technologies and raytheon to merge in an all stock deal. the combined company to be named raytheon technologies. it would create the nation's second largest aerospace and defense company behind boeing. plus salesforce set to buy tableau software in a deal valued at $15.7 billion.

salesforce ceo mark benioff will be on "mad money" tonight with jim cramer, 6:00 p.m. eastern, don't want to miss that. let's discuss these deals. michael of course is with us as well michael, is there a common theme behind both of these otherwise pretty different deals or are they just stock specifics? >> well, i think there's a common theme that the merger mania is approaching the markets again because top line revenue growth is hard to come by without mergers for one thing and then on the other hand you've got active investors and analysts who are pushing companies to make moves to grow, particularly in a stock market where there's no assurance of being able to grow stock price without making major moves >> do you have to look when you're looking for the merger activity in places where tariffs aren't a big overhang, or is it not affecting companies and ceos' plans? >> i don't think tariffs are a big overhang in lots of

industries i think the tariffs overhang the market confidence but i think if you're in the steel business or another business where tariffs directly impact you certainly there's an overhang. but in the types of transactions you're talking about today that are about buying growth and buying more share of company wallet while they're in vastly different industries, same theme of getting more share of every customer, even defense, aerospace or technology. >> michael, why is united's stock down it's an all stock deal there's no new daet. there's plenty of cost savings people are talking about why is the stock down? >> i don't think that's uncommon when a large m&a deal is announced. i don't think it's a wildly uncommon theme fort for one or the other to go down to me that's not surprising. the fact that the market hasn't wildly accepted the theme. it also could be possibly due to a little bit of concern about antitrust. the president came out and mentioned something about the transaction shortly after it and we all know the antitrust authorities have been a little active in m&a as of late

>> when you guys assess at pimco the corporate confidence levels and sort of the outlook for the economy, capex, do these mega mergers factor in? >> it's one of the factors we're considering of course. and uncertainty is probably the biggest factor you think about uncertainties have been driving investors nervous for quite some time >> it has affected business confidence lately. you see this in some indices it has not impacted consumer sentiment indices. but it could spill over. because once the businesses become less confident they hire fewer people as we saw in the last jobs report then it starts to affect rural america and urban america. so there is a spillover effect that lurks out there because we know that businesses are getting a little bit leery about the uncertainties in the world >> mike, this has been more of a quarter for ecm deals and vcm deals, for ipo deals and m&a but whether that's pent-up demand or where valuations are

it does suggest a lot more economic activity than some of the sentiment indicators we've had. >> i think you have the potential for it the ingredients are there. i don't see this as a highly active deal frenzy it relate is kind of a taedy steam of deals you could argue that for where the markets are and for how i guess akomgd the credit markets are you would expect to see more but i don't think you necessarily have -- if you think about it's ethic for companies has been stay lean, buy back stock with some exceptions that doesn't always fit into let's go make a splashy acquisition. i think there's more potential for more to happen if the attitudes come together. >> so michael, where would you be looking give us the sectors that are hottest and most ripe for deal making >> i think tech companies will be ripe because i think companies will have a domino effect with what's happening recently with the transactions

with salesforce and with alphabet's recent transactions you can expect that looking for growth there will be some reaction in the aerospace and defense business to what just happened today as well. i think those will be sectors to look at. and pharma knz looking to buy growth as well always is the future of the market >> michael, are there any sectors where you feel like they are ripe for some m&a but for some reason or not it just doesn't take place >> i don't really feel that there's any particular sector that has that feature right now. i think that you have industries that lag it and i think that's industries that are subject to tariffs, subject to market uncertainties and i think that's going to continue until there's firm resolution on trade and some of the trade wars that are going on >> okay. thank you very much, tony and michael for joining us to discuss bond markets >> thank you >> and m&a slack, meantime, issuing guidance ahead of its upcoming

direct listing and deirdre bosa has more on that for us. hi, dee. >> hey, wilf we're just going through those numbers and remember we already did get first quarter numbers with its s-1 in terms of what we're looking at for the second quarter and the full year doesn't look great. slowing revenue growth that's what we're expecting. and also widening losses so slack saying that in the second quarter they're expecting 139 to 141 million dollars in revenue growth, representing growth of 51% to 53% so that compares to q1 growth of nearly 70% so that is a significant slowdown losses, and this is what's really important for public market investors as we have seen with uber and lyft, other loss-making unicorns slack is identifying losses of 75 to $77 million. 4e say this includes $32 million in one-time direct listing expenses if you take that out that is still 45 to 43 million dollars in losses and that is widening

from the first quarter in the first quarter it was $31.8 million. also looking at the fiscal year, the full year, 590 to 600 million dollars in revenue that would represent growth of 47 to 50 percent that is also a significant slowdown from what this company saw in 2008. losses in the range of 192 to 182 million dollars including that $34 million in direct listing expenses but basically, guys, you're seeing sort of what we saw from uber and lyft, which is slowing revenue growth and widening losses so yes, this is an enterprise cloud company which has been received very well this year the likes of zoom and pager duty, but this company is losing money and investors are really going to want to know about that path to profitability which we're hoping to hear more about on that call kicking off in about 45 minutes guys >> zdee, thanks very much for that mike, as dee says, that slowing top line and widening bottom line loss is not something investors want to see. i wonder whether the fact that uber is now back aboifts -- or

in and around its -- >> it's down again >> down again but back near it whether that's something that people can look past or the fact that slack's a younger company -- >> slack's a younger company i think what it's going to trade on is the story about the stickiness of their corporate relationships and how they're able to kind of upsell those companies, get more revenue-producing connections or users. and i think it's a story that like dropbox, as dee and i have spoken about before, is probably not going to be about today's numbers. it's about what's the size of this market, have they become an entrenched piece of this corporate infrastructure i think that's the hurdle they have to get, over not so much these loss, which again, $180 million annual run rate of losses on $600 million in revenues it's not great but it doesn't seem crippling at this stage >> okay. still ahead on "the closing bell" president trump today taking on the federal reserve again in an exclusive interview this morning on "squawk box. we'll have reaction from the former treasury secretary larry

u n'suer yodot want to miss that. we're back in a couple of minutes. [ sitar music playing ]

chloe, why is there a lamp shade on your head? shhh. my owner might have given me a little bit of cat nip. uh. [ laughing ] it's great, listen. it is great, gidget. everything is grand. [ meow ] [ purring ] [ growl ] are you finished? [ cooing ] that was weird. oh sister it's gonna get way weirder. time now to get our closing market roundup bob pisani here at the nyse with today's biggest movers bertha coombs standing by at the

nasdaq frank holland watching the transports nice comeback today. and kayla tausche's in d.c. with what's next for the china trade battle bob, let's start with you here at the big board >> good news is six straight days of gains. but bad news is ran out of steam here late in the day here up 80 points but we were up more than 200 points the big trade sectors all moved today. we saw semis, transports, retail and industrials. all of these were much higher, though, earlier in the day i just want tot to point out some sectors that have been notably weak recently. we saw, for example, natural gas stocks, three-year low in natural gas today. and again all of these names in the natural gas space like cabot, range, southwest energy, concho all weaker. gold hay huge run in the last few weeks, maybe 15% all these stocks have been up 10%, 12% the last few weeks like ymana and heckla, all moving down >> bertha at the nasdaq. what's been moving there >> take a look at the amazing

week art hogan at fp riley says it's like we took the elevator up after having been dragged down the stairs tech, particularly apple's chart going down to may 3rd when we started all of the concerns on china tariffs. you see that we've had a really nice recovery here over the last week but there's still a lot of ground to be made up on the tech names. among the big movers, analog devices among the big chip names. but they are still in bear market territory or in correction amazon is one of the few names in fang that is not in correction, and it's actually up 10%. over the last two months back to you. >> thanks, bertha. let's get a check on how the transports did today frank holland has been tracking that move. >> we're seeing a relief rally in the transport and the shipping sectors after the mexico tariffs were called off all the major players in the green. xpo up just about 3 1/2% fedex up almost 3% swift the nation's largest trucker rising nearly 4%

off their highs of the day schneider national and saia also rallying you have to remember trucks deliver more than 70% of mexico imports. those new tariffs were expected to be devastating to industry margins. rates have already fallen over 16% in the past year in part due to china tariffs and export declines wilf, over to you. >> frank holland, thank you very much for that. meanti meantime, president trump speaking to cnbc this morning saying china has made a trade deal with the u.s. so what's next in the tariff deal kayla, over to you sorry. >> has to make a deal. has what the president said. tariffs he believes are the mvp in these trade battles both he and secretary of state mike pompeo credit tariffs with bringing mexico to the table and trump says they could reintroduce them if the deal doesn't pan out with mexico. but with beijing trump says the tariffs are biting, causing china to give heavy subsidies toyotas companies to offset the effect and that china is now itching for a deal

>> a deal's going to work out. you know why because of tariffs because right now china is getting absolutely decimated by companies that are leaving china, going to other countries including our own because they don't want to pay the tariffs. and china will in my opinion, based on a lot of facts and a lot of knowledge, china's going to make a deal because they're going to have to make a deal >> still trying to get more on what that knowledge and what those facts are. but president trump says he expects he will meet president xi at the g20 and if that meeting falls through expect that next tranche of tariffs on $300 billion in chinese imports to take place. sara >> kayla, thank you. let's bring in andy rothman, investment strategist at matthews asia, and start right there, andy, on what your expectations are for whether president trump will go through with the extra $300 million of imports that come to this country and put tariffs on them. >> well, my base case is that there will be a deal in the near future because the chinese certainly want a deal.

they want to avoid a trade war and i think that president trump has already concluded that a deal is better for his re-election prospects than no deal but let's also keep in mind that the tariffs might not give us in the united states as much leverage as we think china's no longer an export-led economy. last year net exports, that's the value of a country's exports minus their imports. less than 1% of china's gdp. the u.s. only took 19% of total chinese exports. china's economy is a domestic demand-driven economy. just like ours last year 3/46 growth came from domestic consumption the impact of a trade war not as big as some people here might think it would be. >> but still bigger than it is on the u.s.? is that fair to say, andy? >> i think if we go to a full-blown trade war the impact will be greater on the united states than on china and the main reason for that is the chinese government has more resources, more tools, and more

political will to put in place a stimulus program both fiscal and monetary policy which would mitigate most of the impact. and here as you go it's really hard to get something like that going. so it's going to be bad all the way around pain on both sides but probably more in the united states >> so matthews, your firm, has a specialty in asia and expertise. how are you guys actually positioning yourself for all of this >> well, we're looking at two things first of all, as i said, my base case is that there will be a trade deal but what we're looking at is that deal or no deal there will still be a really strong domestic demand story. the world's best consumption story in china retail sales growing at over 6% in real terms. so we're focused on finding chinese companies selling goods and services to chinese consumers. and then we're also scrubbing our portfolios to make sure we're not going to be exposed to anybody who might get hit if things get even worse. for example, if the united

states was to start restricting the export of american semiconductors or technology, i.p., equipment. we want to be really focused on the chinese domestic demand story. and it's also important to remember that china drives global growth right now. china every year for thelast ten years on average has accounted for 1/3 of global economic growth. that's a greater share of global growth than from the u.s., europe, and japan combined we want to have a trade war with that driver of global economic growth >> apparently we do. andy rothman, thank you. two big merger deals to talk about today. up next mike santoli has the final dashboard with a look at m&a and the markets. when "closing bell" comes back carvana is six years old this year

and is the fastest growing place to buy a car in the nation. it's because we have thousands of people working hard to make our customers' experiences the best. it's because we have tens of thousands of cars ready to be delivered to your doorstep. and it's why hundreds of thousands of happy customers have ditched the dealership and bought their car online,

earning us an average 4.7 stars in the process. so if you didn't know about us before, you do now. we're carvana, and we want to give you the car buying experience you deserve.

we got a flurry of merger news today look at the overall trend, though, in m&a volume. this is global m&a volume by quarter. so you see right here this was the first quarter of this year not that impressive. kind of trailed off from last year right around the levels of the second half of 2016, when total market cap was down by a third from where we are right now. so as a percentage of market value we should be a lot higher. why? we had a tremendous market panic fourth quarter that kind of stayed in the psychology i don't know if there's a

valuation mismatch between what buyers want and what sellers can offer. but we have the potential for this to go up. we really do have the ingredients for this to move higher companies looking for growth in capital markets in relatively decent shape >> i think one of the questions, guys, is which impacts corporate confidence and m&a decisions more, a fed cut or a potential trade deal with china? because we're getting priced in one but not the other. maybe that heaps the stock market but not necessarily deal making >> the other point i was going to say is you could find it as the fact that 2018 and 2019 have stayed relatively high when market prices are high so you have to pay off m&a is quite encourage because at this stage of the cycle you really expect more ipos to come and they are indeed coming hrough. >> sure. although late in a bull market you should have both happening, actually it's not one or the other. i don't mean should. but typically you would see a lot more deals, a lot more transformative deals you're really not seeing that right now. it's kind of bolt on, very strategic. kind of very logical deals as posed to -- and that's probably

good it's rational. it's just not something that gives the overall market a huge boost. >> either way a big pickup in ipos would be good news for the investment banks this quarter. is it a one quarter catch-up after push from q1 into q2 mike as always thank you very much time for a cnbc news update with sue herera hi, sue. >> hello, wilf hello, everyone. here's what's happening at this hour the pilot of the helicopter that crashed into a 54-foot office high-rise in midtown manhattan has died no indications yet as to what caused the helicopter to hit the building, but a mechanical issue is suspected questions remain, however, about why the helicopter was flying in such bad weather and in a no-fly zone officials say there is no indication of terrorism. former red sox slugger david ortiz suffered serious internal injuries after he was shot in his native dominican republic. doctors removed ortiz's gallbladder and part of his intestine. his liver was also damaged he will be flown to boston one his condition improves

a rare earthquake rocking northeast ohio today the 4.0 earthquake was centered near the city of eastlake, which is about 18 miles northeast of cleveland. there were no reports of major damage or injuries and check this out a road in north carolina washed out due to heavy recent rains. the crews responded before anybody was hurt, but the transportation department says that that extensive damage could take weeks to repair you are up to date that's the news update this hour, guys i will send it back downtown to you. >> thank you very much up next, former treasury secretary larry summers joins us esent ke on trade, tariffs, and pridtrump's comments to cnbc on the federal reserve. that's next on "closing bell." (osamah) cancer is... the ugliest disease mankind has ever faced. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer.

(osamah) successfully treating it still remains one of the most enormous challenges facing us today. we realized that, if we developed the technology that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. when we first started, we felt like this might just not be possible because computing power just wasn't there, but verizon 5g ultra wideband will give us the ability to do this. we won't rest until we see this technology being able to change lives.

- (phone ringing)a phones offers - big button,ecialized phones... and volume-enhanced phones., get details on this state program. call or visit monitor their blood glucose every day. which means they have to stop. and stick their fingers. repeatedly. today, life-changing technology from abbott

makes it possible to track glucose levels. without drawing a drop of blood, again and again. the most personal technology, is technology with the power to change your life. life. to the fullest. and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit up next on the show, big biotech pop. shares of prevention bio soaring today. we'll show you what's behind that major move straight ahead and later uber's elevate summit kicking off tomorrow. whatinvestors should expect from ceo dara khosrowshahi when

"closing bell" returns

man: stand up if you are a first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent. but it doesn't equally distribute opportunity,

and paths are not always the same. i'm so proud of you, dad! man: i will tell you this, southern new hampshire university can change the whole trajectory of your life. news alert now on shutterfly seema mody with the details. seema. >> hello, sara 37 private equity firm apollo global is acquiring shutterfly at $51 a share in cash the deal's enterprise value of $2.7 billion it comes after shutterfly announced in february it was evaluating strategic options, hiring morgan stanley, after being approached by a third party. shares are halted and will resume trade at 5:00 p.m.

eastern although they had a good day in regular trade, up 2.6 trade. wilf, sending it back to you >> seema, thanks very much the shares, mike, were as high as -- close to 100 last summer so -- >> i was going to say. it's sort of a managed exit from the public markets this is sort of internet 1.0 type sensation for a while but private equity -- >> don't they still make calendars -- >> exactly but i think it's a more steady business now it's not some kind of huge growth platform. it's a pretty steady business and entrenched player and i think some other people thought it would be a google or something like that. >> meantime, shares of prevention bio skyrocketing today, up well over 200% 217% to be precise that thanks to positive data on its type 1 diabetes drug meg tirrell has the details for us >> prevention bio has an immuno therapy drug in trials we typically associate the drugs that target with the immune system most recently with

treatment of cancer but in tr trial reported over the weekend prevention's drug was reported to delay onset of type 1 diabetes it's thought the disease is caused by the immune system attack the cells that make insulin. so this drug called tuplizimad looks like it might interfere with that attack those taking the drug developed the disease a median two years later than those on placebo guys people saying it's very exciting results in type 1 diabetes >> meg, thank you very much for that big move in that stock price to say the least. now, president trump calling in to "squawk box" earlier today expressing frustration with the fed for raising interest rates too quickly and accusing them of giving china a leg up in the trade war. let's take a listen. >> they haven't listened to me and you know, we have people, it's more than just jay powell we have people on the fed that really weren't -- you know, they're not my people. but they certainly didn't listen to me because they made a big mistake. they raised interest rates far too fast that's number one. number two, they did quantitative tightening.

they were taking in $50 billion a month. 50 billion a month and they've now eased that but it's still 25 billion a month, which is ridiculous. china's doing just the opposite. they're pumping money in so i'm not -- i'm not winning but i'm not winning on a level table. if i had a table -- don't forget, the head of the fed in china is president xi. he's the president of china. he also is the head of the fed he can do whatever he wants. they devalue, they loosen or you would just say they pump a lot of money into china. and it nullifies to an extent, not fully, it nullifies the tariffs. >> let's bring in larry summers, former treasury secretary under president clinton, for his take on the president's comments. i don't know where to begin, secretary summers. how about with the idea that the federal reserve according to president trump has made a mistake in tightening too much

too fast do you agree with that argument at all >> look, i found the president's comments just now very disturbing i think there's something depraved about his degree of dictator envy, his idea that somehow the fact that we have an independent central bank, one of the stronger financial traditions that the country has had and that free countries all over the world have moved to, the idea that that's some kind of impediment i think is really a very, very dangerous idea. i think the president's efforts to politicize the fed actually make it more difficult for the fed to pursue easy policy because if they do there will inevitably be the sense that they're sacrificing their institutional independence to the wishes of the president. it's no secret, i have felt that fed policy should be easier for

a long time and recently wrote that the fed should be moving towards easing quite quickly but the grounds that the president offers i think are entirely misguided this kind of public pressure coming from a president is likely to be counterproductive the impact of it is likely to be to reduce the credibility of the fed as an institution. that over time will mean higher capital costs for american businesses across the board. so i can't say i was surprised, but i was saddened by the president's comments today >> but secretary summers, i guess the president does have a point simply in the fact that he states that president xi can do whatever he wants when it comes to monetary policy and it is indeed pumping money in. and at the same time you're saying that you agree with the president that the fed should have slightly looser policy than

it does. >> i think on balance given the risks in the economy and given the absence of inflation pressures that the fed should be tilting towards easing in coming months yes, i think that kind of expectation that the market has for significant rate cutting over the next while is a -- represents an appropriate policy and it's the market's judgment that that's the policy that the fed will adopt but no, i don't think that china's economy is somehow being rescued by the pumping in of money by its central bank. i think yes, president xi has lots of powers that president trump doesn't have president xi can censor the press. president xi can throw his

political opponents into jail. president xi has very substantial authorities that president trump lacks. but that's not an argument for giving those authorities to president trump. the fact that we are a nation of law, not a nation of rule by a single political party dominated by a single individual, is one of the great and immense strengths of the united states and for the president of the united states to suggest that that is somehow a weakness is undercutting what is our greatest asset, the power of our example around the world it makes me very sad >> secretary summers, i know we've talked to you many times throughout the trade fights between the u.s. and china things have only escalated how then do you interpret a

market that is sitting less than 2% from record highs when things have only gone from bad to worse between the u.s. and china >> i think that the market right now is more optimistic about there being a deal than it has been at some points in the recent past. i think that the market has recognized unfortunately that the american strategy seems to be huff and puff and concede that's the strategy we have just adopted with respect to mexico, where the great ballyhooed agreement turns out to comprise things that were mostly agreed months ago along with some fantasy agreements in agriculture that mexicans don't recognize actually exist and so part of the market's

strength is that they recognize that for the near term this is a lot of screaming and then there's a fair-sized chance that we'll just concede i think the markets also recognize that for the vast majority of u.s. companies they're not actually affected that much by entry into the chinese market and they're not actually affected that much by the tariffs that are placed. i also think that what's noteworthy in a way is not so much the market's strength but that in order to generate the market's strength, in order to keep the market stable it's been necessary for the fed to signal that interest rates are going to fall well below 2% in a healthy, in an otherwise healthy economy. and so the markets' performance is in addition to discounting

the fact that the president won't likely do the things he bluffs about, is also a reflection of the fact that given all the uncertainties we've come to rely on a liquidity-driven economy, which is really quite ironic given the president's commitment to a -- to working people into supporting the heartland of america. in fact, what we're having is an economy that's supported by low interest rates pumping up asset prices and the expectation of low interest rates pumping up asset prices >> secretary summers, i just wanted to go back to the point you said earlier about the fact that the president should be celebrating the rule of law in the u.s., its democratic institutions, and not opining about the positives of an authoritarian leadership in china. i'm not actually sure that's quite what he was doing in the sound bite we listened to

earlier. anyway but that aside, isn't his whole approach over the last two years on taking on china trying to challenge them for the way that they do operate outside of the laws and rules of international trade? >> i don't think so. he's had essentially nothing to say about internal suppression of human rights in china he's had much less to say about that than any other president has had. he's accused them of all kinds of violations of international law. but in fact it's his tariffs that are a clear violation of wto rules. and it's much less clear on what dimensions china is violating an international law as distinct from a desire that the president

has. so no, i don't think at all that the president is innocent of the charge of supporting authorityians around the world you can see a pattern. what he's doing with respect to president xi isn't thatch different from what he's doing with respect to president putin. what he's doing when he calls the head of north korea a close friend with whom he has a great relationship what he's doing with the president of brazil, who shows authoritarian tendencies what's tragic is we've got a president who reaches out, admires, envies, celebrates, and seeks to foster closer relationships with dictators while at the same time dissing,

disregarding, abrogating agreements and failing to build relationships with america's traditional allies and you know, sometimes you can get your way in the short run with threats and extortion but the ill will you leave behind ill serves you and ill serves the nation you lead >> on fire today thank you for joining us larry summers, former treasury secretary of the united states still ahead, cracking down on tech fang favorites facebook and google coming under regulatory scrutiny we'll hear from a former employee of both companies the inside story on the culture. that's next. ooo! ♪ ♪ and protect it all. customer records, our financials, they better be secured. but i also need easy access, to manage data across my clouds - no matter where it lives. ♪ ♪ so if an auditor shows up, i can be a step ahead.

that's the cloud i want. is that to much to ask? expect more from your cloud. ibm cloud. the ♪exus es... ...every curve, every innovation, every feeling... ...a product of mastery. lease the 2019 es 350 for $379/month for 36 months. experience amazing at your lexus dealer.

president trump calling out the european union's regulatory approach to u.s. tech giants >> every week you see them going after facebook and apple and all of these companies, these, you know, great companies. but there is something going on. but i will say, the european union is suing them all the time we're going to maybe look at it differently. we have a great attorney general. we're going to look at it differently. >> marissa orr, former manager for both companies joins us to discuss the future the tech giants and gender gap in silicon valley which she takes on in "lean out: the truth about women, power, and the workplace. welcome, marissa nice to see you. >> thank you great to be here >> how much do you think the sort of cultural issues that you faced personally and professionally at these companies has to do with the fact that they are under scrutiny right now by the highe highe highest levels of government >> i think very little,

actually so the culture i experienced at google is several years ago. and for the most part, i had grate experience and i loved my time at google there were problems with that culture like any large organization but for the most part, i really enjoyed my experience and i loved the culture this at facebook, it was more -- my experience there is more to do with -- it was my own personal experience i had a couple run ins with managers who did not have the best intentions for me but ultimately it was a gift because it put me on this path to helping women and writing this book. >> the book "lean out" is a provocative title for a book that aims to help women in the workplace. an aim that was shared by the author of "lean in" who is one of your former managers. so why that title? you directly going against her advice >> she wasn't exactly my former manager. i did meet her at facebook the title represents that it's a counter argument to lean in. if our intentions are to help

women, she sees doing that best way in her perspective i have a different perspective the title represents it's a counter argument and it's sort of goes against the conventional wisdom on women at work. >> what is your bottom line perspective if you had to sum it up about what is wrong and what women should be doing to get ahead? >> "lean in" pins it on culture and stereotypes and prescriptions for success herointh on womhinge more on women acting like men. i think men and women want different things at work and that's okay. instead of dismissing women's needs as a product of culture oppression, we should listen to them, take them seriously and see what it is about our corporate structures that need to change in order to better meet the needs of women? i mean what makes more sense, rewiring women's personalities to better conform to the system or rewiring the system to better meet their needs >> rewiring the system >> yes

>> exactly >> and i would agree >> thank you very much come back. marissa orr, author of "lean out. up next, your wall street look ahead. key things you need to watch when "closing bell" comes right back what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence.

before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. don't get mad. get e*trade, dawg. oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this? it's your piano. hold this for a sec. we don't have a piano. no.. but the neighbors do. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network

according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

time for walt look ahead we're watching uber ahead of the elevate summit let's start with you and the big tech companies on the hill >> this is the first step in the house judiciary committee's wide-ranging antitrust investigation. lawmakers have already put amazon, facebook, google and apple on alert top democrats say they expect executives to be engaged in their discussions and are prepared to issue subpoenas. republicans say they didn't agree to all of that they're trying to walk back some of the rhetoric but still this is being billed as a bipartisan effort tomorrow's hearing will stick to common ground. the impact on tech on local news after that, things can get a lot more complicated >> thank you switching gears to uber's elevate summit, we have a look at what investors want to hear from the ceo >> sarah, this is uber's first elevate summit as a public company. it comes as shares are trading below the ipo price and as

investors question the profitability. so uber will argue and they will argue that flying taxis are critical to the goal of becoming the amazon of transportation but investors they might be looking for a clearer payoff they will certainly want to know how uber plans to navigate all the regulatory and economic hurdles as it expects to make aerial travel commercially available to riders in 2023. guys >> thank you very much my final thoughts, a minute left in the show, clearly risk on rally today. off the highs. constructive given the gains >> a tack on rally i think you put a lot of additions between what seemed like, you know, pretty precarious levels a couple weeks ago. up 6% or 7% if the lows. we'll get the macro numbers tomorrow and then cpi the next day. doesn't seem like the market's current view or the fed is up to is dislodged by the numbers. but it's worth watching. i do think right now fed is in a blackout period. we have a meeting next week. and to the extent that that is

really underpinning where we are in terms of levels of the stock market, keep an eye. >> is that big risk over the next few weeks we want to see if their change their language >> i think it's fed meeting and then g-20. >> sit down. face-to-face >> we are out of time. thank you very much for watching "closing bell". >> "fast money" begins right now. >> fast "money starts right now. i'm melissa lee. traders on the desk join us. stocks surging again today one strategist says the fed cut euphoria has gone too far. julian emanuel will be here to explain. plus, it's the biggest defense deal ever, raytheon and united technologies merging for a value of $150 billion. the chart master will tell us what means for the rest of the group. first we start off with a rally rolling on it seems like