confident that adult smokers will not be left without a viabled a ter in viabled a alternative. and juul is working on an alternate plan >> all right thanks >> can't sell them in the city wonder if you can use them in the city >> i don't think so, but they sell cigarettes. thanks for watching. "closing bell" starts right now. good afternoon allergan is up 26% broader markets near session lows some down 0.7% 59 minutes left to trade everything you need to know coming up. >> and let's get straight to what is driving the action dow down 143 just off session lows. st. louis president says no need for half a point rate cut. disappointing to hear. and technology is under pressure

and small caps are outperforming. joining us for the hour is steve grasso taken by semis, is is that ahead of micron, g-20? >> i think that it is a bit of both bullard was not bullish. market was expecting one thing, not the other. and micron is after the bell, so people are getting ahead of that people so either earnings or semis, chicken or the egg there, but that took us down. >> something the bears point to, semiconductors are traditionally a tell on the economy and they are not at record highs. i think that they are still in correction >> so if you had to poll everyone now within the marketplace, people are going to err on the side of growth is slowing. can't find anyone that says growth is ratcheting up. so these have been the bull's-eye for growthand they have been your cautionary tale

thus far within the marketplace and with g-20 and with china and everything all encompassing. >> microsoft also suffering. ten year back below 2% all factoring into the selloff let's drill into the big stories. we are dom, bob pisani, rick santelli and diana olick, and meg tirrell. and leslie picker has more on why this time should be different for allergan dom, let's start with you. >> so jerome powell speaking today saying that the federal reserve will act as appropriate to sustain the economic expansion. he says uncertainty over trade and global growth has increased, but he says whether the uncertainties will continue adding that policy should not overreact to any one today i

ta data point and hinting at the potential for an insurance rate cut. >> i think in a world of lower interest rates, research seems to show that it is better to act pre-emgt differen preemptively >> and this is after james bullard said that now seems like a good time for an insurance cut, but that 50 basis point cut may be over done but he does still see 50 total basis points of cuts by the end of the year. >> and let's get to bob pisani on the floor >> and bottom line is the market did not get any kind of assurance that there will be any 50 basis rate cut next month a little bit of a hissy fit, but visa has had a grit quartgreat ,

nike, boeing, all down today you look what is holding up, the same leaders that we've had throughout the quarter defensive names, insurance stocks have done well like travellers and the consumer stap willi stapers names have done well and finally one with the big names, a tremendous stock, walt disney look at this, $140 a 25% gain and this is one of the main reasons that the s&p 500 is up nearly 4% this quarter guys, back to you. >> and meantime the nasdaq lags the major indices. let's get up to bettrtha coombs. >> it is a tech story. we are seeing a bit of a move up in health care names biotech right now just inching into positive territory. as far as tech though, we're seeing some of the biggest

winners this quarter giving back at this hour adobe, coupa, microsoft, are giving back. and chips as you mentioned are the big drag ahead of micron's earnings but not forget that chips have also been the best performer month to date up about 8%. having rebounded but of course a lot of caution ahead of g-20 and whether we'll see those tariffs resolved or some sort of peace with regard to them. back to you. >> turning now to the bond market, yields on the move falling below the 2% level rick santelli has more >> you know, this chart starts the of the day fed meeting last week and you can see the day after we spend time at 197 today at 198 but we have not closed under 2% since november of 2016 still time left in the market place. we had an auction today of two

year notes, the most sensitive to what the fed may or may not do. solid. at the end of the day, minus 333 basis points quite a bit of demand along with a 20 month low on consumer confidence really pressured the ten year note yields >> and let's focus in on a sector tied to the bond moves. new housing data >> yeah, a rough day for the builders overall sales of newly built homes fell unexpectedly hard in may, down 7.8%, down close to 4% annually. and the supply rose sharply to a 6.4 month supply the expectation was actually for a bump higher in sales given that big drop we saw in mortgage rates during may, down more than a quarter of a percentage point. home builder stewart miller credited lower rates for its

better thanexpected q2 earnings, but then the stock tanked during the investor call when lennar's president talked about higher labor costs and pivot to lower priced homes. back to you. >> steve, what is your take on lennar >> i do think that they have spurred some activity. >> new orders are flat though. new home sales data. >> so they beat on deliveries, orders were in line. and when you start to blame tariffs when it is an average cost of 500 per home, it sounds iffy to me i don't want to say they are kitchen sinking it, but i think that they are using it as a convenient excuse. i do think that there is a lot of noise this there around the consumer not feeling as confident. maybe worried about trade. maybe worried about whatever else and not buying homes. i do think that they rebound from here and margins start to

recover. >> you'd be buying today >> i always have a three day rule i'd see where it flattens out, but start to nibble when the stock is overly bearish amongst news that was pretty much out there. >> quite the intra day reversal there. turning now to the bid deal news of the day, allergen being bought for more than $60 billion. per ter ril h m meg tirrell has more. >> i spoke with abbvie's mvp and he said he wasn't surprised by the stock's reaction he is convinced that he will be able to win them over. he says this deal makes sense because the company loses exclusivity on its largest drug in 2023. it is the largest drug in the world. and he sees allergen botox as the answer he also told me he did look at

other potential targets and speculation around more similar m&a is already brewing bio again is down 20% year to date >> and of course it is not the first time allergen has been involved in a high profile deal. but will this one fine apple get ov finally get over the line? >> that is the question question especially after allergen has had several deal situations that didn't pan out back into 14, a hostile bid for allergen which proved unsuccessful and '2015, a merger was called off after a treasury department changed the tax rules. pfizer was hoping to change to ireland by acquiring allergen

but scrapped the deal. >> yeah, a big blow. and let's bring in jared the fact is that they will redomicile here to the u.s seems like a win for the trump administration after the tax changes last year. >> seems like it so far. i really don't know how much the taxes ultimately played in to this decision. but you stopped one in-virgen and now this is sort of the antithesis so potentially it is debatable whether the trump administration or the obama administration is responsible for the inversion decisions that have been made. but this certainly goes against that >> does the share price move that you see make sense to you >> i feel like i'm the only

person who foeels like this dea is not a disaster. the company is losing a big piece of its business. and so i'm not sure what else they were going to do. could you stand still and do nothing, you can comeyou do a sf pearl which is they tried. or you can do this which solves the top and bottom line growth problem. so i think that the stock move makes sense. this is typically what happens there is a big arc component but i think time will tell and i think the stop will rebound a bit. and for allergan, yes -- >> you recalled it a home run. >> it is a home run for shareholders i don't know how you could wake up today with this on the table and not be super happy about this outcome >> in general do you think it does make sense for the big phrma names to take on more debt in order to bring on the top line and bottom line growth. >> you are doing at a. deal w dh

rates at all-time lows so maybe there haven't been too many examples that have been overly successful you could point to merck that worked out well. we'll have to see. i think that it makes sense if you have a long term time horizon. you are looking past the next couple years with all the botox competition. if you can look out to a five year time horizon, probably not a bad deal >> and this is the third mega deal in the far inphrma space. how do you splay the trend >> you can't pick one stock. if you want to go, you go where the beta is, this way if you get a hit or a miss in one name or another, it will lift all boats. but that is up 11% year to date. i think ibb is a little safer

than going with the individual play >> anything stand out to you >> i agree with bio gen. what you have is still a lot of uncertainty over a key drug from a patent perspective but that sort of fits the bill you could argue insight is an interesting deal but you've seen big time value oriented mergers this year and so maybe this is start of a trend. >> and so what do people hate about this deal? you think it makes sense on both sides. what is the biggest issue? >> i don't love it, i just again don't know what else investors expect abbvie to do. what are the other options i think the reason why investors don't like it is because it is still -- you're acquiring a

company that had fallen out of grace. very low sentiment >> it decreases reliance but not enough >> i think that is true. i think if you look at the portfolio of the constitution post the deal, definitely better so i think that if you allow some time to elapse and people go back and look at their models and cash flow and look at how this will look in three to five years, not so bad. >> thanks for joining us good to see you. still ahead, much more on today's mega phrma deal when we speak with fred hassan. >> and investors are closely watching iran developments and the energy market. we'll speak with an oil expert who says a different event could actually have a major impact on crude. he will explain next and here is our data tracker consumer confidence weak in june reading of 121.1

well below estimates and the case smaller home index rose 3.5% in april dow down 181 heading toward the lows which were down 199 ♪ as your life grows, so do your needs. ♪ and with bank of america and merrill, the benefits you get can grow, too. as a preferred rewards member, you can enjoy priority service and exclusive discounts... so your growing life can be more rewarding, too. ♪ what would you like the power to do? ♪ what would you like the power to do? is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things

that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪

we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment,

even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. we have about 42 minutes left of trade. dow down 184 points. nasdaq down 1.5% mike santelli has the market dashboard. >> pay attention, here are the four things that we will look at this howling for deals, more m&a is needed and doggy bag delivered, a look at the food on demand on business and some stock dogs that have been neglected and whether they might get rescued. and rollover in banks, investors federal government the fed for

relief and of course the caesars entertainment deal so big headline deals are hitting the tape these are the stock 3r50prices though the xbd is the overall sector index for brokered deals you see weakness not enough activity for these guys to really necessarily be cashing in even though we've had some good headline deals it seems like the general flow has not been that great. and there is skepticism i think among wall street? general about the long term franchise value of some of these firms. so what you see not telling you that you this is a ripe environment where the market is pricing the stocks for continued deal activity. so whether that is right or not, clearly the investment bankers are not cashing in and the stock reaction has not

been positive. so don't know if that will disturnlg di discourage or encourage similar moves. >> could it be that the bigger guys have taken more market share? >> it could be usually in an active deal environment, there is plenty to around and it spills over to everybody. so i don't know what the lead tables would show you. but these firms, especially if you have a lot of global deal activity, they shouuld reap something good from that so it tells you it is not such a busy environment that everybody is managing to feed off of it. >> all right thanks very much >> prop for the theme. his titles are so good, but so disconnected >> wow you're right great dog theme. look forward to the next one

extensions between iran and the united states escalating today with iran's president calling new sanctions outrageous and idiotic and president trump calling iran's statement ignorant and insulting despite the war of words, oil prices relatively steady joining us to discuss, stris chairman of ihs market dan, thanks for joining us are you surprised that the tensions haven't pushed oil prices higher? >> no, because the other side of it is the demand side. and the most important meeting is the g-20 for the oil are market, not the opec meeting because the question is there is a china/u.s. trade deal and that i think will actually be more significant for oil prices right now. but obviously if the tension increases, you will see an oil market that will start to react. >> why do you think that trade and demand is more of a factor than iran which is such a major producer

i know that it is largely not shipping oil after the sanction, but what about -- traditionally that would have been a huge mover. >> iran as you say is a major produc producer, but fairly a minor producer if you look at what is happening to world demand, this year we see supply increasing by about 1.5 million barrels a day just from the united states and demand has really decelebrated and only will grow about 1.1 million barrels a day. so that is holding things steady >> in terms of iran tensions, have we learned about the importance still of the straits of hormuz, whether there are any alternatives or whether that will remain as crucial to oil trade? >> for many decades, it has been a key point. things have somewhat changed with the growth of u.s. supply

and elsewhere. but you about 17 million to 20 million barrels a day of crude oil, another 3 million of product move through it, so you are talking 20%, 25% of global supply and if it were disruptive, which is hard to do, but if it were disrupted, you only have 7 million barrels a day to move oil. so the strait of hormuz has been a choke point as it has been for decades because of the volumes that pass through it >> and grasso, where are you on energy stocks? >> if you look at xle, we're talking large intake gralegrate, they are up 11% year to date but if i asked you up or down in five years, they are down 6% they have done nothing forever the u.s. is outproducing russia and the saudis it is not about oil anymore. iran is about nuclear weapons, it is not about oil. that is why the market doesn't move on it anymore we're not dependent on foreign

oil anymore. >> well, we are somewhat dependent on foreign oil but imports are down from 60% to about 15%. but it is striking as you say that it is like 4 million barrels a day of oil out of the markets from iran and venezuela and look at prices lower than they were a year ago >> and what is your year end forecast >> we're using as an average price for this year and of course it fluctuates around 67 for brent and 59 for wti. >> dan, thank you for joining us good to see you. 36 minutes before the closing bell take a look at the major averages dow down 161, energy is part of the losing members before actually only positives are industrials and consumer staples. after the break, a feast of analystcalls in the food space

today. we'll tell you which restaurant stocks to buy and which to stay away from. and fedex and my krmicron gearing up for earnings. and here is a look at the biggest laggards in these turbulent times, do you focus on today's headwinds? or plan for tomorrow? at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. kpmg through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business.

from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. whai 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. time for word on the street.

33 minutes left of trade kellogg got a down grade today firm says the company is taking the right steps, but they see headwinds from rising xwrgrain prices >> and also in the food space, credit suisse out with a number of restaurant initiations. jeffries raising its price target on microsoft to $90 from $80. it keeps its underperform rating jeffries says that szure will probability never see margins. about 20 percentage points behind aqs.azure will probability never see margins. about 20 percentage points behind aqs.zure will probability never see margins. about 20 percentage points behind aqs.zure will probability never see margins. about 20 percentage points behind aqs.azure will probability never see margins. about 20 percentage points behind aqs people foe cut

people focus on the top line >> you will never compete with amazon when you look at aws. >> google, microsoft and amazon are the three competitive. >> they are the three, but when you look at the bigger names or different names that were there before amazon, aws kind of knocked the cover off the ball and they went by a different 34e9 tric metric and their margins will always beat their competition for whatever reason. so i think if you are comparing them on an apples to apples on mash begi margin, amazon will always win when you look at the environment that we're in, amazon has been your riskier name and sob totol that they were going on an a investment spree they could turn that on and off whenever you choose. they have chosen to turn it off and microsoft has been your save i did bet along with a host of other names and i think that is

why you sue people ree people r there. if you look at all the names as a multiple of ebitda, they have basically doubled. you look at mcdonald's, trading at 18 times basically now ebitda so something has to give either it is not the safety bet that we august thought or all t having a bigger mental illne ege >> and session low done 200. james bullard saying that no need for a half point rate cut tech is under pressure and small caps with outperforming. rous down a third of one percent. >> and courtney reagan has an update and in bahrain, jared kushner appealing to the

panhand palestinians to-his criticized economic support plan. >> this is about creating opportunity for the palestinian people this is about creating opportunity for the people throughout the middle east if implemented correctly and competently, the economic plan i will go through now will lead to growth and better lives. >> fwrarance's foreign minister saying that any breach in the nuclear deal would be a grave error. he praised president trump and president rouhani for saying that they are still open to possible talks bill cosby has filed a lengthy appeal of the sexual assault conviction claim thagt judge allowed testimony from other female accusers that wasn't relevance the 81-year-old cosby has been serving a 3 to 10 year prison term that is the news update at this

hour back to you. let's send it over to mike for the second market dashboard of the day >> and this is called doggy bag delivered. we got an update today this is of grub hub at citigroup, they like the stock the stock is moving on this. based in part on the ability they say of glub hrub hub to ins market share and this is since its ipo, you see this great excitement about them really hitting their stride and getting adoption of other food delivery services and then you fell off a bit with the overall market and there is an active bear case 20% of the stock is short. people think that the business

will be great but it won't be high margin. uber eats and door dash is well funded restaurants don't want to part with a lot of margin so i thought that it would be good to look at open table gentlemen, they are signing up a lot of restaurants, but can they do it profitably here what you you see is since its ipo in 2009, huge entuesday yac enthusiasm and then it fell off. the end is when it got acquired by what was then priceline now booking holdings so arguable whether grub hub is as good a business as open table. so that is where we are with grub hub >> mike, thank you very much so much price competition from these players. doesn't hook lilook like it is away >> and isn't this where uber was

supposed to have a lever to pull so grub hub down or flat let's say year to date, but it is on a relative strength index broaching overbought so very close to that level at this point i would stay away from this for all those reasons. i think grub hub had a monopoly on the space and i know longer think that that is the case and i also think that whatever they can gain back is going to be at a lower margin, so sounds like a lose/lose to me >> well, strong ca strong call gras grasso 25 minutes left in the trade nasdaq is bottom down 1.5% coming up, gold prices climbing to their highest level since 2013 what is driving that move and how long it could last and later a special report from our very own kacarl quintanilla in vietnam

we'll find out how the u.s.hi tdear/cnara w impacting their manufacturing boom

gold hitting multi year highs on pace for its best month since 2016 how long can the move last let's bring in jim steele, precious metals analyst. what a name for a guy who covers precious metals. so after three years of gold going nowhere, it shoots up now. what is the main driver? >> i think it is a kcombination. the shift in central bank polling i is, but you globally as well as a healthy mix of trade and geopolitical risks if you put all those three things together, then i think that it is a nice cocktail for gold to go higher. >> but i guess aspects of that cocktail have been around for the three years. so why hasn't gold had more momentum before the last couple months does it show that in general people are getting more as a safe that haven?

>> last couple years we've had weakish bar and coin demand. jewelry dewasnmand wasn't especy good but i suppose the big change has been the big shift in policy you can't say that the december issues on the last year were particularly conducive for gold, but they have moved now. >> the way i see it, it is part of a bigger move you have a lot of thieves no yielding assets, gold negative interest rates in europe, bitcoin, all making a move here. and the dollar is weakening. and to me that seem like it is part of the same story and i'm not quite sure what it says about risk sentiment >> i think very much so. and if you consider that the dollar is the world's supreme paper asset and gold is the world's supreme hard asset, then it has a normal inverse correlation. and that is true over many

years. there are periods where sometimes gold and the dollar will move together, but that is relatively rare and it didn't send to last for more than a few months abouten so t months so the weakest dollar has been propelled the gold and market higher >> is crypto a rival? >> no, i don't think so. gold is physical and you can take it, it is portable, it also has marvelous longevity which so far the cryptocurrencies haven' been able to rival >> how much exposure should you have to gold depends depend. >> depends on the year you could have as little as 2 3rs,2%, 5% but you tell a millennial to buy gold over bitcoin and the conversation is a short one. >> do you think this is a bearish traders used to look

a lot more at it a lot of the contributing factors have been out there. that gold lost its safety quality. and i do think that there is actually the bitcoin element to it where you to getta an invers relationship to currencies so it is perplexing because they are both running at the same time and i think people are coming back to gold. but there is a bar, there is a coin, let me have something substantive in my hand >> what is it your target? >> it will be difficult for the market to go too much higher because a lot of things happen on the physical side that you don't see immediately. one is that the bulk of gold jewelry -- bulk of gold period is purchased in the emerging

world. and so if you look at gold in cmi terms and inr terms, it is quite expensive. also recycling which is about a third of the physical market on the supply side will increase. very tempting to liquidate bouillon and recycle it at these levels >> jim steele, thank you for joining us pup und here is where we stand in the markets. low again today. second day in a row. nasdaq down 1.4%, technology hardest hit. dow down 162 some consolidation until the g-20 up next, your last chance trade. > and later fred hassan will weigh in on the big drug company merger i consulted with your grandmother's doctor. we can do the screening at her house.

hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

wake up! there's a lot that needs to get done today. small things. big things.

too hard to do alone things. day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness. so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right last chance trade? >> a nice boring one lennar you don't have to buy it today, but if you think this is you overdone, maybe yyou buy it, ply

it out see where it stabilize and then add more as the stock price increases. i do think that margins will get better you can't complain household formation is going up but millennials are paying less for homes. you will make it up in the quantities of homes that you sell >> crucial is what the fed does to this stock? >> the whole used of rates moving up or down, these are at historic low rates in-perception is reality so we know one thing, rates are either staying static or go lower. and that will be bullish >> is it a broader call on the home builders? >> you have to look at what the reaction was across the entire space because a lot of times what we see is that everyone throws on ultimate everything based on one stock that has reported and for the rest of the group, it might not be as wbad at lenna

reported so it be could be a buying opportunity on the back of lennar for the rest of the space. >> thanks. good to see you. back toward the session lows down 160 for the dow, but as you see 1.5% of declines for the nasdaq and s&p we await results from fedex and micron we'll give you a review of those coming up. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge

is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. like... a business borrowing solution to help get a little more space with a lot less mom. or home insight, to search for a new house within your budget. because, they really need their space. pnc - make today the day.

checking in on the market movers faang stacks all participating in the selloff with netflix lagging the most but still up more than 30% year to date. meantime small caps outbrchli pr

market regionals outperforming big caps no real move in yields back below 2%. got through tstress test. >> and small cap move is notable because they have been such and underperformer even for the month of june. investors are waiting a pair of big earnings after the bell today. frank holland tells us what to expect from fedex. >> good afternoon. fedex is expected to report an 18% decline in epa, 3% decline in revenue, but its forward guy answ guidance will be the most watched numbers.

we'll be watching the lawsuit it filed. and also reports that it is cutting prices to at traskts tr customers. back to you. >> and let's get to josh lipton for a preview of micron. >> so micron is expected to report q3 eps of 79 cents on revenue of 4.69 billion. stock down hard from its intra day high rbc mitch steves puts it much on huawei huawei does represent some 13% of micron's revenue. steve remains positive on the stock though and he sos nan pricing potentially bombing as soon as q4 >> and dow on pace to close near the lows of the session. down 197 up next, we're covering all the angles of the market >> and here are the winners and

losers in the dow. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. (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.

you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. 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.

kevin you have weak economic data, powell oig on the tape, what are you watch something. >> yeah, this was spoked to be the quiet day ahead of busy rest of the week.are you watch somet. >> yeah, this was spoked to be the quiet day ahead of busy rest of the week. consumer confidence number was a little disappointing that softened up the market. and then jerome powell and james bullard made big headlines with their discussion on where they think that rates should be and then a 50 basis point cut is basically off the table. shame on the market for thinking that they would cut by half a basis point. >> we have two earnings in fedex and micron what are you expecting >> we're expecting in micron

about a $2.40 move that is important because it is very near a technical part on the down side. but in fedex, we're looking foroff an $8 move expected that is up or down. so a little bigger move pernlgts wi percentage-wise in micron. a lot to talk about. suing the federal government we'll talk about if that is a good business model. >> kevin, thanks and over to mike >> we got effectneglected puppi. investors are grabbing for difference tend yield stocks as a way to play the bond proxy, but into the strictly true to say that they want it. this is essentially the five highest dividend yielding stocks in each sector weighted in to an

etf. and that is the bad line bradley underperformed blue is the utilities. and the orange is staples. they are also decent yield stocks, but also more stafbl cash flows are reliable. this one yields 3.6%, a lot of cyclical stocks in there and whereas these are more around 3%. staples 2.7. so if we had more confident, relative yield story would work. and my favorite example, ford yielding 6%. >> and uncertainty on chips, down near the lows today biotech is the relative outperformer along with small caps. in fact the biotech index had gotten positive just over the last few minutes, but we're

ending on the lows of the day. not able to sustain any movement at all biotechs are the outperformer. a birth of hope there with the big deal in the phrma space. >> weak data, not going to give a 50 basis rate cut in june. transportation ports has been ugly we'll see what fedex said. they will give fiscal 2020 gi 20 guidance after the close it has been the defensive johns mcdonald's disney is a monster. and builders, poor data and tariffs impacting home sale in the united states. $500 per home due to the chinese

tariffs. closing essentially at the lows of the day but there is the closing bell. dow jones industrial average closing down the day down 175 points still up nicely though for the month. there is the bell. welcome to "closing bell." >> still with us mike santoli. the dow down by 0.7% s&p down about 1%. and nasdaq down 1 p.5% clear profit taking. microsoft stands out price target was upgraded, but it reiterated its underperform

rati rating >> and i went to check on some of the moves of the recent ipos because yesterday we saw a big move lower and people were wondering is this a sign of risk aversion there 1 stiis still demand and continue to watch it >> consumer confidence in new homes sales, saw yields slip off the back of that another riskoff sentiment. the ten year did close below 2%, 1.9972, first time that has happened since november 2016 >> and we're in earnings watch results from both fedex and micron set to hit any minute pl we'll bring you the results. and first off let's talk about the market day

mike, first to you on the groups and action that stood out most >> it was pretty clear that this new high we made in stocks was contingent on pretty specific things at least in the very short term which is reassurance that the fed will be fairly aggressive on the easing side. that the economy could at least hold together. you mentioned the numbers that were a little bit soft and then also the white houtampn expectations for what might happen on trade. i don't think that that is a surprise, but it seemed as if it was good excuses to sell some names that people owned because they were safer. and i think that was interesting today. you had the big tech stocks, people kind of in hiding in that did get sold off that to me in a way is much more a sentiment than anything else not the worse thing in the world.

>> and the data, consumer confidence, does that make you concerned about the outlook? >> not really. it is not surprising to see consumers start to get a little bit nervous when they hear the news media start to get nerve nervous about the economy. so sentiment does change when you start to hear the macro data change as well so not too big of a surprise and didn't make me too concerned >> any concerned about earnings at august 1234. >> august? >> expect takss went down tremendously at the end of q4.a. >> august? >> expect takss went down tremendously at the end of q4.l >> august? >> expect takss went down tremendously at the end of q4.l >> august? >> expect takss went down tremendously at the end of q4.u >> august? >> expect takss went down tremendously at the end of q4.t >> august? >> expect takss went down tremendously at the end of q4.3 >> august? >> expect takss went down tremendously at the end of q4.4. >> august? >> expect takss went down tremendously at the end of q4.. >> august? >> expect takss went down tremendously at the end of q4. >> august? >> expect takss went down tremendously at the end of q4.>? >> expect takss went down tremuslythe end of q4.>>ugus xpect takss went dow >> expect takss nt d4. at?

tremendously at the of qgust >> expect s weown tremendously ? >> expect s weown tremendoust thd of q4.gust >> et tawentown tremenuslythe of q4.ust? exptaksnt down >>ect s we down of q4.st tremdoust thd of q4.t? exptant down tremendously at the end of q4. >> expect takss went down tremendously at the end of q4. so i think that we are still set up in pretty good shape. but clearly with more trade uncertainty that began in may, i don't think companies will be too optimistic about the forward projections either >> and the below 2%, what do you make of that >> i think that it is just more of an example of the leveraged trade where people are buying stocks and bobnds as well. it tells me that are you continuing to march towards negative rates even here in the u.s. over the next 18 months >> i know we are all looking ahead to the g-20. takes huge event feels very binary the waythat we are setting it up it is also that friday end of the first half of the year, end of the quarter, end of the months and so a lot of positioning and portfolios performance will be determined by what happens in the next few days. it has been a very strong year

so far >> and i think that right now it means sit and wait because you don't necessarily want a big move before the end of the quarter and micron reporting at a buck 05 revenue 4.79 the street looking for 4.69. so beats there on the bottom and the top. statement here from the ceo saying that the improved competitive position strong execution helps us deliver solid results despite a challenging environment. and says while we see early signs of demand improvement, we do plan to reduce capital expenditures to help improve industry supply. we'll be on the kaucall >> and is the beat down to the

fact that maybe huawei individual didn't affect as much as people expected >> yeah, i think that certainly on this -- you will be look position for any commentary on huawei specifically because that is an important part of the story. as well as how trade tensions are impacting them i think that you will get more on the call. >> all those factors moving this one. josh, thank you. mitch, on the surface it looks strong the stock up more than 4% there were low expectations, lower at least, going into this. how do the numbers look to you >> i think these numbers are very good. i think the big issue is justex. the recovery memory my not be a step function, maybe a bit of a u shape. so i think that is why the stock answer reacting more positively. but he is say has gone demand is

coming back off 1e9ing tsetting capex. so i will look for is he able to maintain profitability number two, how bad is the capex going to be. minus 10% or minus 30% a big range. and last one is just the overall demand, is he seeing it on the smartphone side or on the server side and finally, an up side driver is if they can actually shift some of their chips to huawei. because my understanding is that some is japan based. so those are the big items >> and for the stock to really take off medium term, do we need to see prices for the entire market bottom and start to rise again? >> i think that's right. you need to see sequentially quarter a quarter flat or d ram

prices i'm interested to see what he says about demand coming back if that is d ram. so if it is nan related, it would snap up higher >> we have seeing a nice move up almost 7%. is this the kind of move that will take up the entire segment which has been under so much pressure lately? >> it will take up the segment and it will also take up western digital. but if he says that d ram is getting better, that will be better for micron, not western digital. >> why would it take up sechl a accept any cnany semi cap because demand would be coming back so nobody will care.

>> and semiconductors off about 15% from their highs so firmly in correction mode >> mitch, thank you for joining us mike, to the broader sector, just need a bit of good news here >> a bit of relief bhp looks like a big beat. but four months ago the quarter was supposed to be 1.36.looks la big beat but four months ago the quarter was supposed to be 1.36. micron had a bit of a rescue here because it really was not up much from the december lows. >> off 40% from the 52 week high fedex results are out. frank holland has that for us. >> trading up more than half a percent. 15 cents over estimates and revenues that were in line of course this company has made a lot of headlines announcing a lawsuit against the commerce

department earnings call at 5:30, we'll be listening. and also commentary on its breaking its contract with amazon and more about its express business again, fedex shares up 0.65% back to you ha >> and key things to look for? >> another one where it is just really relief because expectations had only gone in one direction. so again, seven months ago supposed to be $6 earnings this quarter. >> two guidance. >> guidance has been coming in on gentlemen, certainly a net win based on expectations. and also based on where the stock had gone to. just obviously in collapse mode for a while. so understandably you get some relief but yeah, you have to hear their commentary on everything whether it is the kind of friction with china, and just global freight volel ll ll ll ls

>> and i think micron is specific use think that they are cutting capex. i think they are trying to control the supply side. and as far as fedex, you have to see what they say on the call, but hard to see how the stock rallies even from the levels in front of a g-20 where it is unlick likely that they will get anything great so i don't think that it is going much higher.ick likely th anything great so i don't think that it is going much higher.likely that t anything great so i don't think that it is going much higher.unlikely that anything great so i don't think that it is going much higher.ikely that tht anything great so i don't think that it is going much higher.likely that t anything great so i don't think that it is going much higher. >> all very campily indicatompld clearly a headwind performance negatively affected by continued weakness and global trade and industrial production. this has been the poster child for weakness there >> and they will go into it on a

conservative posture they won't promise any kind of a quick turnaround so i think that you have to watch the stock for what is already priced in. pretty close to 20 year lows in terms of forward valuation on fede fedex stock. >> and what is your screw on the transports and hopes for the g-20 >> transports has been impacted. but there is transcript port pr transport space. but you are getting discounts that you have not seen before. so there will be levels. cyclical side will improve and

investors will get attracted back to that space as far as the g-20, look, i think that the expectation of the market is that talks will continue the negative surprise would be if the meeting got called off by surprise or if the talks ended badly. so i think that the market just wants to see that this relationship will continue, that the stocks can continue working toward a positive development sometime in the near future. >> thank you both to joining us. still ahead, a mega phrma deal for more than $60 billion fred hassan will weigh in. >> and shares of fedex moving alone the flat line. lower by about 1%. we'll bring you instant reaction to the report.

your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

mno kidding.rd. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. welcome back two big names repoin reporting r

the bell micron and fedex frank holland has more >> fedex shave shares trading dn about a percent. we're taking a closer look at the numbers. we're seeing that fedex says it cannot report an actual guidance, a number of guidance for eps for 2020, but it say that its express business will be hurt by not to renew amazon and saying that its operating income will be impacted by that and also trade weakness around the globe. we'll continue to look at these numbers. its call is at 5:30. time to get a market closing round june bob pisani has the biggest movers >> frank talking about fedex and it has been an ugly quarter for the ship ertz and logistics companies in general

airlines have generally done better for the quarter the big movers besides tech stocks this quarter have been the consumer staples names and they held up better than anyone else. so we saw mcdonald's and johnson and johnson holding up travelers has done well. and walt adisney up 25%. >> thank you very much let's have a look at what has been moving in the nasdaq. >> some of the big gainers so far were the ones that we saw profit taking in today mike cry soft ha crow so microsoft at an all-time highs. chip stocks remain firmly in correction they were poised to come out of

correction after the nice move up we've seen. but they started positive and closed near the loeft sessiw ofe session. final and he will consum finally coupler stocks, interesting especially since we have the weak consumer numbers >> and let's shift to the big phrma deal of the day. abbvie buying allergan what does it mean for the industry fred hassan is here with us. nice too s see you is this a good deal? >> so one should always be very careful about looking at the reaction even if it were normal kind of a deal where you have an overlap of shareholders. you normally see a selloff of 5%

to 10% this time the selloff was a little larger on the first day because you've got two different kinds of owners and they are not sure if they want to own the other stock. so there is rearrangement going on, called transactional noise and it is probably going to go on for another 10 days or as to. the underlying logic of the deal is very good.s to. the underlying logic of the deal is very good.to. the underlying logic of the deal is very good.o the underlying logic of the deal is very good >> do you think this deal will get over the line? >> i think there is a very good chance that this will goi ovwilr the line for three major reasons. number withone, no real major overlaps secondly, minimal 34ri9 rispoli risk if you remember the aller x elet derailed because there was an emotional reaction at the idea of pfizer becoming an irish

company. in this kay cacase an irish coms becoming a u.s. company. so i would like the president would like this deal a lot of people will like this deal this is the right political drift. and the third very important thing is that some of the parts valuation seems to be very close to the number that we are looking at so seems like it deal should go through. >> tell us about your history with brent shau brent saubd dnders. and what do you think of the whole pairing. >> yeah, so mr. gonzalez is a very courageous person this spinoff that occurred was a very important move that abbott made because they wanted to put the risk in a separate company

mr. gonzalez took the risk but he had to do what he had to do in this case this product is already lost its eslui exclusive sifisif. and so mr. saunders who i know well, i watched grow, has deny a fantastic job.ie sif and so mr. saunders who i know well, i watched grow, has deny a fantastic job.te sif. and so mr. saunders who i know well, i watched grow, has deny a fantastic job.and so mr. saundew well, i watched grow, has deny a fantastic job. so this is a win/win >> any other potential targets

you are watch something. >> i think so mid size companies are always in play the key is to have r&d more than a billion dollar a years and it is still risky. and if one is in that zone where you don't have enough money, then it is much better to be part of a much larger enterprise so there are so many company that one can look at for takeovers. very important rare disease company got bought for $62 billion by japanese company last year and i think that there will be more of those takeouts >> fred, thank you for joining us >> thank you very much >> and mike, we good see a move of almost 4% in mylan, are those looked at? >> yes, a bit of traders saying let's not get negative on some of the smaller size companies.

they could be acquired still ahead, we'breaking do the charts investors look ahead to the fed's next move. fed's next move. might have been is an to what do advisors look for in an etf? fed's next move. might have been is an to don't just track an index, plan to black list huawei could backfire l or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this.

...when a plan stops being a plan and gets set into motion. today's merrill can help you get there with the people, tools, and personalized advice to help turn your ambitions into action. what would you like the power to do?

>> final dashboard of the day. >> only way to regret the theme is to play that song the movie killed that song but roll over and beg is what i'll call it some of the cyclical data series make look like that they are rolling over in a cones agasequl way. what you will see, it looks like it is kind of a top, maybe we've seen the best numbers that we will see for kirm confidence and what you will see, typically this has rolled over ahead of rescissions.confidence and what you will see, typically this has rolled over ahead of rescissions.

but 2015 it looked similar and did not in fankts lect leada recession. so something else here, let's look at the two year treasury note this is back to 1994 of the year '94, big tightening cycle and here you have a mike rollover can. not a recession. this was the rate cut in 1995 that did not coincide with the recession. had lots of good going for it. but that was the early 2000s and then of course 2007. and so that is the concern here, if the two year note is saying that it is heading south at a pretty steady way, it is not necessarily a bullish sign mean that the fed will be pushed to keep cutting. but again, this is the scenario that the bulls have r. hoare hor chicago fed, financial

conditions index, this is meant to show that you have had an initial easing move, this is when the fed first cut rates and there again 1995 when the number is low, financialen conditi financial financialen conditions are loose. so why ease right now? this shois that the if i had has had this habit once at least of on doing so. >> in factual of these is about the levels are not a worry, only if they continue in that direction. >> and if it really is about trade, if in is some sort of a deal or truce -- >> if you either get the rate

cut or trade improves. that will rescue the whole story. >> mike, thank you very much tike for a cnbc news update. >> hi here is what is happening. washington will stop turkish forces from flying and developing its f 35 stealth jet s if they purchase a russia air defense system they urged not to install the system >> it is so important in our alliance that there not be a new russian defense put in the middle of our alliance there will be a disassociation with the f 35s turkey been an important part any. >> and illinois governor delivering on a campaign promise

to dell l legalize small amounts of marijuana. it takes effect january 1. and san francisco to be the first city to ban the sale and distribution of ecigarettes. the city slated to pass the measure later today. that is the cnbc news update back to you. up next, fedex shares turning lower here after posting results just moments ago the shipping company toppings headlines not just for the numbers, but also suing the u.s. government over export rules is the stock a buy we'll discuss. tr your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

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.

...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

. micron shares are higher, the stock rocketing higher after hours. fedex also reporting stronger than expected profit they did warn that trade uncertainty will hurt its results. >> to drill down on the numbers, don, reading through your notes you can you were more optimistic than the tone that we've got from the result. >> well, i would say that i'm mid range long term optimistic you have to understand who this company is and what it is that they come. and the short term, they are facing some stiff macroeconomic head winds, and they are the brunt of a lot of the trade dispute. certainly not responsibility, but bearing the brunt up to the point that they are suing department of commerce for it. and so they face those

headwinds. but those are all resolvable controversies. they have state in the art technology so best airplane fleet out there. and so best this class service at lower than anyone else out there. yeah, short term, they have headwinds, but they are all resolvable controversies >> are they macro? don't they also have issue with the breakup of amazon and intake grag integration of the tn dchltn dt? >> there are company specific issues but the breakup with amazon is make tactically a little painful. but the right thing to do. fred smith and his team have been things that were painful,

but what was necessary to take the hill again and again and again. they are continuing to grow market share on ground and express and freight. and so yeah, there is some challenges, but over time they overcome the challenges and that is the point >> so short term challenges, medium long term, you like the stock 37 does that stock. does that apply to fedex's rivals or are they the standout? >> we think that it is the stand out. you got to look at fedex's cost flat form to delivplatform to d package. better service, yes. less expensively answer is yes. so if you are providing better service at a lower cost, you will win over time

will there be challenges, yes. but a better job at a lower cost, shareholders will be the beneficiary. >> and we've talked about how the stock is trading on a forward multiple basis as it has. so if you look back to the prior times when it was this kind of key pressed washed out valuation, was it simply that the macro cycle started to become friendlier again? what will it take for the street to believe the 2020 fiscal year numbers are achievable >> it is simply a matter of one of the greatest stock pickers analysts was lucky enough to mentor under decades ago spo preached that he wouldn'ted resolvable controversy the controversy of the trade dispute needs to be resolve pd

this too will pass maybe we're headed in to a recession, but that will pass.dd this too will pass maybe we're headed in to a recession, but that will pass.pd this too will pass maybe we're headed in to a recession, but that will pass. this too will pass maybe we're headed in to a recession, but that will pass. all the issues are resolvablrese when the controversies are resolved, guess what, stock won't be setting for the current valuation it is selling for. >> don, thanks for joining us. >> always a pleasure still ahead, headed to vietnam and a special report from that nation ranked 69th among the economies in ease of doing business how the u.s./china trade is impacting production

welcome back vietnam has emerged as an alternative to chinese manufacturing. and carl quintanilla got a look at a textile factory take a listen. >> it starts with raw materials which still heavily reliant on china. close to 90% once the material is inspected, it is spread out using automation and then cut into smaller pieces where it will get ready to get sewed this will he had up 46-this will end up in a kid's hoodie

they want nothing to go to waste. less than 1% will eventually get recycle. and it all leads to this the production room. 34 different lines each with their own product and real time targets. 1800 workers under this one roof alone. this sign reads question love t fact other a factory and our children workers here about making $220 a month. and when done, they hit a green button you famous triple stripe, that scissors a adidas this gets boxed and screened and ready for shipping here the finished product is

getting screened for pieces of metal. small needles, anything that got into the clothes during production this factory screiy screens it e there is a 35 day trip on a boat and a country now trying to make its move in global production. >> carl reporting from vietnam guys, the numbers tell the story. if you look at some of the recent economic data, vietnam is the 12th biggest import country from the u.s just behind france but our imports from vietnam grew 40% in the first quarter. china is you're number one source of imports. but they fell 14% in the first quarter. so vietnam is climbing those ranks very quickly as companies production >> and there have been questions about how much capacity vietnam

has to be a sosh be absorb the production. and it is kind of a combination 6 l of low cost and skill. and the entire industry is suited to supply it. >> and long term is xwchlgdp pe capita as well when it is lower, it suits better for the simple manufacturing jobs and why less of that sort of work in a takes place in terms of new investment. >> still pretty slow >> yeah. sticking with the broader china trade issue, hank paulson penning an op-ed titled that technology will backfire on the u.s. he says china will benefit if america forces the board to choose between them writing that the huawei supply ban will

reverberate well beyond the u.s. a line stood out to me saying some wealthy democracies may follow the u.s. and seek to strip chinese equipment out of their back bone isnsystems. i think that that is a an important point. will other chinese tech companies by cutting the cost with what they offer to other emerging economy, you won't just see the u.s. and rest of the world versus china, you will see china grab a lot of the growing economies in terms of who picks china companies and who picks u.s. companies interesting that this is hank paulson writing on tech as opposed to tie in an b finance

but searchen a certainly an edu individual >> and interesting to hear him shay that we will lose this. coming up, colorado surpassing a billion dlaolrs in marijuana sales. we'll hear from the state's governor next. your growing busi. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. 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.

illinois becoming the 1 state to legalize marijuana as colorado's state rev you news surpassed $1 billion co colorado governor is joining us. how does that stack up to your sxefrkts tap expectations

>> we were one of the first states, so that billion dollars goes to capital. has built youth centers, school crux money it has been terrific but more importantly in the public revenue has been the tens of of jobs that have been created it helped support tens of thousands of workers, created quite a bit of value in our state. and we look forward to continuing to be a leader in the cannabis economy >> to sara's question, 3.5 years to get the first 500 million of revenue and then only two years for the second 500 million so five years or so for the first billion total. how long for the next billion? is it growing at a fast pace >> yes, so we started five years ago and, of course, it took a while for, you know, retailers and dispensaries to get permitted. this industry is here to stay. we're excited that not only of course is colorado a leader, but we recently passed bills that allow for capital formation, private and public in the

industry we're looking to lead the way on a lot of different new technologies and really power the industry nationally in terms of point of sales systems and chemistry. and especially as more and more states come online, we want to make sure that colorado companies are in the forefront of powering the growing cannabis industry. >> governor, what about the costs? and i wanted to mention in particular one study in a very respected journal of medicine, university of colorado school of medicine researchers looking at 10,000 patients and showing in more than three fold increase in emergency room visits associated with cannabis related issues like anxiety, acute psychosis, uncontrollable vomiting. is it too early to call victory here >> well, in colorado this is a matter of personal responsibility obviously the number of emergency room visits pale in comparison to alcohol, which is fully legal in our state and obviously a lot more deadly when taken to excess. tragically we lose people every

year, even college students to alcohol poisoning. adults in colorado and across the country need to be responsible with your use of alcohol, of marijuana, of cigarettes, whatever you choose to do with your own life and your own health. do it responsibly. and that's important message we have in our state where voters overwhelmingly chose to treat marijuana like alcohol. >> do you see other states legalizing cannabis or does it legitimize the whole industry more or concern you might lose your advantage that you have >> we have a first mover advantage in colorado. we know that years from now we're not going to be as large as other states in terms of sales. that's why we're focused on making sure that we really have a lot of the know how, and the technology that powers the industry nationally based here in colorado. so we welcome both national and international companies that are working in areas like point of sale systems, like technology, like the chemistry piece to really help make sure as the industry goes on both coasts and

elsewhere in the country that that's also creating the continued economic prosperity here in colorado and that we're leveraging our first mover advantage into a sustainable advantage in powering a growing industry >> speaking of economic prosperity, governor, china is a big trading partner for you, number three, $8 billion worth of commodities and finished goods in the last year went to china. how is the trade war impacting the farmers in your state, you have a huge beef production industry, computers, and others. >> you know, it is really awful. i wish we would stop this brinksmanship and work closely with china, mexico and canada, our nation's three biggest trading partners, colorado's three biggest trading partners last week we had the outdoor retailer trade show here in denver, colorado and almost every company i visited, those located in colorado and elsewhere, were really worried about the impact of tariffs impact on their bottom line, destroying jobs here in colorado and across the country, and ultimately costing consumers a lot of money this huge trump tax increase in

the form of tariffs is having devastating consequences already. not only on consumers, but also on job growth. >> you mentioned that voters voted overwhelmingly to legalize cannabis and talked about the economic benefits it brought talk us through why you passed laws restricting oil and gas drilling given that it could have brought similar economic benefit and the views of your voters as well. >> we have a lot of great jobs in the extraction industry, oil and gas and mining our goal has been to provide additional stability around those opportunities, obviously they tie in directly to commodities, pricing which we have no direct control over when prices are high. it is a great source of economic activity in our state, when prices are low, that activity stops. what we did is we moved to a form of local control around that we had a lot of lawsuits flying, we had a lot of conflicts between different jurisdictions. we basically now allow our county commissioners, our city counsels if it is in a city to work directly with the operators to provide the stability we need

to create good jobs and, of course, protect our health and safety. >> governor, thank you for joining us >> thank you up next, your wall street look at the key earnings reports that every investor edtones watch as we head to the new trading day when we come back. . with licensed agents available 24/7. it's not just easy. it's having-a-walrus-in-goal easy! roooaaaar! it's a walrus! ridiculous! yes! nice save, big guy! good job duncan! way to go! [chanting] it's not just easy. it's geico easy. oh, duncan. stay up. no sleepies.

there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪

♪ as your life grows, so do your needs. ♪ and with bank of america and merrill, the benefits you get can grow, too. as a preferred rewards member, you can enjoy priority service and exclusive discounts... so your growing life can be more rewarding, too. ♪ what would you like the power to do? ♪

we're back time for our wall street look at kb homes and general mills let's start with a preview of kb homes. diana olick has that for us. >> all eyes on kb tomorrow after its bigger colleague lennar blamed tariffs for pricing pressure and new home sales showed an unexpectedly large drop in may despite plunging mortgage rates the street is expecting an annual decline in earnings for kb on lower revenue. kb was also downgraded along with lennar last week by raymond james. its analyst buck horn said he was concerned about declining earnings estimates and on cnbc earlier today he said it was an awfully sluggish start to this year's spring selling season, so just clawing back to break even. back to you. >> diana, thank you very much. i would love to ask you three follow-up questions, but my co-anchor would have some strong words for me if i did because she has a preview of general mills. which we have to get to. >> thank you for letting me do

this general mills had a great year the stock is up 40%. it has an attractive dividend that helps in this low yield environment, 4%. and doing better than other food companies like kellogg and kraft heinz. cereal and pet food. cereal, general mills has a 30% market share in the u.s., key as a category cereal is not growing. but general mills is taking share. so it is doing well here, especially from top competitor kellogg. watch the north american retail segment and any rise past 1% or so for organic sales to see progress on that front the standout brand is actually cinnamon toast crunch doing especially well. pet food, general mills made a big bet buying blue buffalo in 2018, $8 billion deal, a bright spot for a sleepy food portfolio. that's what investors need to see. 30% growth or so as the company is still integrating this big deal and trying to take blue buffalo mainstream >> before the bell, after the bell tomorrow?

>> before the bell >> general mills, keep an eye on that back to today's earnings they could restart shipments to huawei if they wanted. we'll have to find out if they will or not. that stock is up nicely, 10% higher we're out of time that does it for "closing bell. "fast money" begins right now. that's right, it does. "fast money" starts right now. live as always from the nasdaq market site. i'm brian sullivan in for melissa lee. your lineup tonight, pete najarian, tim seymour, rebecca patterson and guy adami. micron and fedex, both names have been stuck right in the middle of the trade fight fracas we'll hear what they said and how they're doing. >> fracas. >> fracas, fracas. >> energy, finding some energy, oil and gas, one of the best performing sectors this month. crude making a comeback, but how much higher can it go? a top oil expert is here it weigh in all that and more ahead. as always, let us begin with the