for "nightly business report," i'm bob pisani at the new york stock exchange. >>> christina hooper is here with us now for more on the fed, the economy, and the stock market. she's the global strategist at invesco. welcome, christina, good to see you. >> great to see you. >> we'll start with the fed and work our way through the economy. this is pretty much, as i recall, what you were forecasting, correct? >> that's correct. we expected a rate hike. we also expected that we would get more information on balance sheet normalization, which is really the 800-pound gorilla. >> that's what the fed has on its balance sheet that it's trying to put back into the market, right? >> sure. we saw this historic increase in the fed's balance sheet through what was called qe-1, qe-2, and qe-3. there was always this question mark about how exactly will the fed get back to normal. we're starting to get some pretty significant details on that plan. >> had an abowhat about the eco? as i mentioned in my introduction to bob pisani's piece, the fed watches inflation closely, and the economy and economic sta

bob pisani explains. >> it was anything but a breezy summer day for the stock market. the dow plumets as much as 257 points before ending down 167 points. largely weighed down by apple. but for the moment, this sunt look so much like the start of a broad eer sell off as a healthy rotation. investors are moving over big tech names like microsoft and apple and google. there's some reason for that. bank stocks for example bounced the cap a tall plans of all 34 banks under review in the second round of the bank stress hasn't happen td since 2008. they're raising all of the dif depds. chevron traded higher because crude oil price started drifting back up and beyond that, the price of copper, a key industrial precious metal is within about 3% this week and bond yields are also up 5% to levels not seen since may. for "nightly business report," i'm bob pisani at the new york stock exchange. >> it looks like a slam dunk quarter for nike. the world's largest sportswear maker reported better than expected earnings. even in the face of increasing competition. the dow component ear

as bob pisani reports, that is a big concern for some investors and it prompted blue apron to cut its ipo price range. >> blue apron is in the business of delivering meal, but it's chan easily get into business. here's the good news, there's decent growth. revenues are likely to hit $1 billion this year and gross margins are healthy. they've got a lot of orders that accounts for about 90% of their revenue and it's reasonably priced compared to competitors. here's the bad news. they're losing money because they're spending a lot on marketing. they lost 50 million in the first quarter because costs to get new customers are rising and competition is ramping up, so you have hello fresh which is really to do you believe in germany. it's already in the u.s. home chef, but the big white shark is amazon. fresh is just a grocery delivery, but has not as strong as amazon, you can be sure home delivery is a big reason for the whole foods purchase i. spells major competition for blue ap n apron. it's good news for everybody who wants to buy blue apron. for "nightly business report," i'm bob pisan

bob pisani h >> reporter: the markets are back in record territory after snapping a two-day tech slump. beyond tech, a broader debate is emerging over whether equities overall are overvalued. bank of america released the results of a survey today and 44% of respondents said they think the stock market is expensive. it's the highest level ever. rougy 50% believe global profits will continue to improve. that's good news, but it suggests the markets are vulnerable to profit weakness down the road. you might think the biggest risk in investors' minds is for a potential selloff in tech, a big mover. but china's credit problem is the biggest risk, managers believe, followed by a risk in the bond market and then a delay in tax reform in the u.s. it might be surprising to see tax reform delay s assigned suc a low number on the risk scale. with tech stocks, the big winners this year, no surprise, fund managers say the tech-heavy nasdaq is the most crowded trade followed by european equities. finally, what would it take to kill the equity rally? equity traders are still worried about a sudden ri

bob pisani at the new york stock exchange. >>> as pob just mentioned, the british election on thursday is on the minds of investors here and across the globe. it follows the horrific terror attacks over the weekend. the country's third in as many months. we have the report tonight from london. >> a vigil on the banks of the river thames to remember those lost in saturday's terrorist attack in london. this as campaigning for the country's general election once again heats up after taking a brief pause out of respect for the victims. >> while it was right that we should pause to show our respect to those we have lost, and responding to the immediate aftermath of those events, it is also right that our way of life and our democratic process should go on. >> it's no surprise that security has remained top of the agenda, with just three days left until polling day. prime minister theresa may has tried to frame her opponent as being soft on police powers in the past, while he's hit back for her cutting police numbers when she was home secretary from 2010 to 2016. >> you cannot protect the pu

bob pisani takes a look at the hit the tech stocks took. >> reporter: finally we got a little volatility as some traders came forward to begin to question the valuation of some of these big tech names. facebook and amazon and apple and microsoft and alphabet were down about 3 to 5% today. goldman sachs, in a note this morning, made a very simple but important point. these big tech names are traditionally cyclical growth stocks. in other words, they're volatile. but everyone has been acting like they're boring consumer staple stocks, usually not volatile, and everybody bought them aggressively assuming they would go up with no risk at all. they warned the stocks have gone up so much the trend could quickly reverse. they're right, it's a good point. and that's exactly what happened today, with the big names, as well as the semiconductor names for example nvidia and advanced micro. what does all this mean? it means kind of what it always means on wall street. when you have stocks that keep going up, it attracts a whole other class of buyers. we call them momentum players. and essentially th

bob pisani describes why global investors are paying close attention. >> reporter: this is a big deal because indexes like msci rule the world since they determine what goes into all these etfs that we're buying. right now, only hong kong-listed stocks are included in the indexes. there are no mainland china stocks in it right now. mainland china's stock market is worth $6 trillion. that's the same essentially as the hong kong stock market. $6 trillion is almost one-tenth of the total stock market capitalization in the world and it's not in those indexe key issues with mainland china stocks, a couple of them, first, it's too easy for companies to hold trading in their stocks. chinese regulators now instituted new rules that limit under what circumstances and for how long chinese companies can both trade. there's been another issue. limits on how much that could be taken in and out of the market at any one time. but the creation of direct stock links between shanghai and hong kong and shenzhen and hong kong, the two big exchanges in mainland china, now make it far easier to get money i

so we asked bob pisani to lay out both sides of that debate. >> this sudden movement is generating a lot of healthy debate about whether the great technology run of 2017 is over. tech, of course, has been the big mover this year, up 17% and far outperforming the 8% gain for the s&p 500. there are arguments on both the bull and bear side on this. the bears argue tech is overall oversaturated or crowded trade. it's all true. particularly the so-called faang names. but the big tech names are better capitalized and have more stable profits than their old counterparts during the dotcom boon. these are traditionally cyclical stocks, which means they can be volatile. investors are treating them more like old-fashioned safety stocks with no volatility. that's a mistake. we saw that on friday. the bulls' main argument is this, valuations of big names is not excessive. true, some of the big names, facebook and amazon, they have priced earnings ratios way above the s&p norm of about 18. that's because the market is assuming very strong revenue growth for these companies, which is not proven to

bob pisani looks ahead. >> reporter: it will be a busy week for the markets on economic news, earnings and fed officials. fed chair janet yellen speaks tomorrow on london on global economic issues. it's been rough for economic news recently. the news in the second quarter has not been much more positive than the first quarter. goods today were weaker than expected for may. look at consumer confidence for june tomorrow. confidence has been climbing all ye though it did slip a bit in may. we'll also get personal income and spending more may. income has been flat. spending has been trending up this year. the health care industry from insurers to hospitals will be watching what happens in washington, a vote by the senate on its health care bill may become thursday. general mills, nike, early in the second quarter for earnings on the 11 companies on the s&p 8 of the 11 have beaten the estimates. that's higher than normal. more importantly, analysts seem encouraged by what they're hearing from early reporters. only 4 of the 11 companies reporting have seen earnings estimates for the third qu

something the industry is alrewith bob b pisani has more for us tonight. >> today, it was retail stocks that took a dive as the amazon juggernaut rolled on. they rolled out amazon wardrobe where they tackle some of the biggest problems with buying clothes. the time it takes to shop and hassle for finding the right size and returning stuff you don't want. big retail names like nordstrom, j.c. penny's and discounters all down 3 to 8% or more. that's a lot. the it's a simple idea. try before you buy. pay for what you keep. pick out three items or more, get shipping for free and you have seven days to try the stuff on and decide what to keep. trz simple idea. real genius is the return policy. you get 10% off if you keep three or four items. 20% off if you keep five or more. the more wryou keep, the more y save. don't ooefb even need to be home when they come by to pick it up. in theory, this is not a retail apocalypse. they will support brands outsidn and others. that may be true, but the market didn't act that way. every large shoe maker was down 2 to 3% including deckers and sketchers and

some energy names didn't farewell bob pisani looked at the first half performance in the u.s. >> we're halfway through 2017, everything is up the s&p is up 8% long bonds up 7% gold up 8% why doesn't anyone want to sell anything i think the reason is there's a lot of contradictory data confusing to everyone. gold guys have been rewarded the bond guys think the economic data is going to get worse they've been rewarded. the stock guys who think the earnings have been included, they've been right as well there are other contradictions out there. despite the uncertainty, volatility is at historic lows then the trump trade and the fed. we knows there some premium in the market for the trump trade of lower taxes we don't know how big it is but the main platform of lower taxes is further down the road but the markets have been calm and stable as for the fed, it faces the tricky task of talking about higher rate while trying to reduce the balance sheet all it means is less liquidity so my question is shouldn't there be a fear of a lack of liquidity now as there was joy and happiness when the fe

our own bob pisani sat down with citadel's ken griffin earlier today. among the topics they discussed is where mr. griffin sees the stock market heading. >> i think this business cycle has further to go. i think the stock market is going to go with that. but what's worrisome is the firepower that we have to address the next downturn somewhat constrained. that should worry all of us. the growth of regulation has stopped. that trend over the last eight years has ended. and that's really good for american businesses and for american entrepreneurs. they've already changed the course of regulatory burdens in america. no ifs, no ands, no buts. big win for the administration right out of the gate. >> all right, so he's giving us a lot to think about and talk about it, among other things. let's get to our "closing bell" exchange today with the dow up 37 points right now. oliver portia from brewedman brothers is with us at post 9 sitting next to jonathan corpina from polina equity partners and jack joins us today from chicago, he's with ucx. good to see you all.

bob pisani reports on a few other concerns hanging over the market. >> reporter: stocks were in the red with notable weakness in technology which had been our market leader. however, tech leaders like facebook, amazon, apple, and microsoft cut losses by more than half in the late afternoon. two events are weighing on the markets today. first, overnight "the washington post" reported that robert mueller, the special counsel overseeing the investigation into russia's role in the 2016 election, was expanding the probe to determine whether president trump attempted to obstruct justice. the market's last notable drop, remember this, was on may 17th when the dow plummeted on reports that former fbi director james comey had recorded his conversations with president trump in memos. investors are sensitive to allegations that president trump's behavior could create a sustained investigation. investors clearly do not believe the trump agenda is dead. there is ongoing fallout from the federal reserve's aggressive position on interest rates. the fed raised rates and indicated they still expected to

a great piece by bob pisani. >>> sterling, a look at cable. 1.2682 a bit of rebound off the lows. but it's been steady around the 1.27 mark. we're just below the mean of that i think 1.28 is the mean there a longer term level on sterling, five-year high was 2014 where it hit 171. then, of course, before brexit vote, the brexit vote it was trading around 146, 145. but 127. very split opinions. everyone was bearish on sterling and where it goes over the longer term. now i'm hearing a few balls on "squawk box" yesterday, a couple analysts saying they think there could be sterling appreciation out there in the market. >>> we'll take a short break check out world markets live, our blog which runs throughout the european trading day [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. di

ten-year yield, bob pisani, we've got rick santelli pointing out 226 is a key level for him to watchabove that, it could mean higher yields down the road and then a story i think was undercovered today, walgreens falling off the acquisition of rite-aid >> didn't get the 180 stores they had >> and not going to sell rite-aid stores, down 20 plus percent today. >> i see a bit of a reflation trade, your yields have been moving up. that helps bank stocks oil stabilized that's helping energy stocks the overowned semiconductor and fang names have been having problems in the last couple of weeks. i think this is the end of the first half event but i think it's overall still very healthy i noticed the s&p was down 34 points it's almost in half. that shows you there's an underlying bid to the market still looking to buy lower that's the key point. >> going out with a decline of 165 points yes, alrin, coming up. see you tomorrow, kel. >>> thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. a tough session across wall street today, especially in the nasdaq let's look how

we'll watch that let get to bob pisani on the floor. >> good morning.gh here and a high in europe europe is still ongoing. hong kong is right near a 52-week high, germany at an historic high. macron is trying to to get france to think more like a startup. sectors leading today. being j which are a lagger group recently have been reinserting themselves industrials, health care, lagging. telecom is lagging these have been problems rotation has been the story. today tech is leading a little bit but so far the last week and a half, the story have opinion rotating into banks, small caps, and transports big technical is up today. note the names we talk about all day long, apple, netflix, alp alphab alphabet, facebook, even amazon was down trafractionally let talk a little bit about natural gas. nat gas is down 4% today you heard the guys talk abouting about the but this meant a terrible year for anything natural gas related. southwest is down 50%, sw energy right there. range resources probably down 30 or 40% so consolidation is necessary but so far any kind

let's check back in with bob pisani only the financials stand between us and a much more violent downd energy is holding up pretty well i'm sticking with my theme that so far this is a healthy rotation let's remember, moving away from the semiconductors and energy sectors. there you see it we all know what it's like in the first five months of the year some of them up 20, 30% and now we're seeing a little bit of resistance is that surprising after we have those kinds of moves same with the f.a.n.g. names as we went into june, we saw resistance every one of these stocks are now down for the month of june it's not surprising when you see 30% moves and some of the big cap names. at the same time, underowned banks, yields bottomed and banks are is rairaising dividends. this makes perfect sense as for energy stocks, we stabilize around $45 who knows if that will happen in the long term. >> it's been hard to call. they've been up this week. finally, i want to call your attention to one thing it's a little early but are we starting to see the signs of another reflation trade? crude is up 4%

. >>> dow is down 19 let's check in with bob pisani on the floor good morning, bob. >> good morning, carl. asia was not bad overnight let's take a look at europe here it's all about dragi, talking about reflation coming back. markets are slightly weaker on that banks have done well euro at the highest level since november here. european buying, particularly the german ten-year and french ten-year rallied on that news. european banks, higher yields helping them, deutsche bank, bnp paribas all moving up. china up fractionally overnight. the big indexer moving to include china mainland stocks into its indexes next year, starting with 222 large ones overnight the ceo said he may add another 195 mid-size companies here the effect of all of this, you're going to be owning a lot more china stocks in the coming years in the major indexes, which is what these etfs are based on een, emergencying market index, chinese stocks, mostly hong kong listed, with full inclusion of mainland china this could take several years. a lot more china stocks in everybody's future here in the u.s., banks up yiel

carl, back to you. >> thank you for that, bob pisani. rick santelli? >> hi, carl. operative word, much research says rates will go up, eventually. guess what? today is not eventually. look at a one-week of tens, clearly a drift there, and we've been drifting for a while. we've been out to sea. look at october 1st start to tens last time we were down here and you can see as carl pointed out earlier we're getting into that kind of post election trade preelection, could you argue we were 170s to 180s. we had a wild november as many markets did. let's hold everything as a year-to-date, shall we, look at year-to-date. bunds, settled at 244, we settled at 22 in bunds. we're above it. gilts hovering at the lowest since october like the u.s. ten-year, under 100. the year-to-date chart looks much like the u.s. chart and gives you a framework for how they continue to go down. they're making low yields in nt from of the election it's hard to say the election jumps out at you because it looks like so many others. there's a lot of issues with banks in europe, the story in "the

in the dow since about 3:30 yesterday right now up 44 points since the open guys back to you >> bob pisaniick santelli at the bond pits at the cme in chicago, good morning. >> good morning, carl. fed meetings, whether the fed or any central bank really has a good grasp on the manipulation that they've cornered themselves into or not almost doesn't matter, because markets get changed in the leadup toward the meeting and affected and changed after the meeting's over last meeting was may 2nd and 3rd. let's start all of our charts today rite at the end of february, so the first thing you see on the left side of the chart is kind of the reaction going in, and the reaction going out of that fed meeting. look at two-year note yields, that is easy it jumps out at you. up to 1.37 basically we're getting close. it was what the fed was going to do, may do, will do. the ten-year a different picture. yes rates were up but look at how they dropped as we diminished the effect coming out of the fed meeting what i find interesting is how the boom looks in the same period the relative value trade right at t

bob pisani saying finally investors are getting lower prices for ipos, post-snap. >>> private equityore partners will buy staples for $10.25 a share the news sending shares of stap ms s staples higher >> nuts, strange, weird a few words martin shkreli's own lawyer used to describe him. let's get to meg tirrell live in brooklyn with more we've seen some of the action this morning about you cornering his lawyer on the lady gaga lyrics that w >> reporter: that's right. that was his defense attorney. we got a jury for the martin shkreli trial. they moved into opening arguments in the afternoon the prosecution started by laying out its case, running through the indictment and then shkreli's defense attorney ben brafman took to the floor saying is he strange? yes, will you find him weird yes. martin shkreli is brilliant beyond words, saying geniuses are just on the other side of crazy. and "as lady gaga said, he was born this way. we caught up with brafman yesterday. >> can you tell us about the lady gaga defense in there >> i think i said what i wanted to say in the courtroom. >> why quot

that's where bob pisani is right now. tom of interactive brokers. bob? >> hello, scotty and of course, the heads of all the exchanges and the brokerage firms here to talk about what's going on in the brokerage and trading world. thomas, well-known to all of us. good to see you. thanks for being with us. the topic here is volatility. all anybody is talking about. we have stock market at record high and volatility at a record low and volume isn't doing much either. what's going on? >> so, who made the most amount of o money in the last year or two? the people who bought the big tech stocks. and sold out of the money co options against them, right? that drove down the prices of the options which forecast very low. right? so, this has been a successful strategy, keep doing it and keep making money. keeps on track. other folks buy those cheap options and they trade against them, right? so, they buy stocks when the stocks drop. they sell stocks when the stocks go up and that contracts the movement in the market. >> so, you seem to be implying that the options

bob pisani?ken griffin, ceo of citadel, biggest hedge funds, and started talking what he felt there might be storm clouds on the horizon and what investors should be watching. surprisingly he signaled out inflation and what he had to say about that inflation worry. >> looking forward, inflation i think is the big issue that we are all very complacent about. because we're now at a point in the business cycle where as unemployment is hitting the low 4s, it's becoming harder and harder to find new workers, if we look at recent payroll data. we need to start talking about inflation raising its head. not saying it's going to happen, but the complacency about inflation is really, i think, the one area investors should be most worried about. >> we've been talking about -- then talking a lot about regulatory reform saying dodd/frank was a burden to society. those are his words. he gave the trump administration credit for at least stopping what he called the ever-increasing spiral of regulations. and glas

bob pisani showed us earlier the index that tracks ipos are doing well names like broadcom got hammered among the chips and technology companies, these have been the winners for the year and for the month. and we're approaching the end of the month. so you could have some sort of profit taking going on but for now, back in rally mode, pretty strong. >> nasdaq once again positive for the month of june, which would bring its monthly win streak to 8. speaking of technology, one thing on apple here, legendary music executive jimmy ioveen was asked why he decided to partner with apple to lead apple music >> i wanted to get apple into streaming. and i wanted them to come into the business to help the business because there's -- they are the only company that can truly blend technology and liberal arts they were founded on that premise. and i wanted to do streaming there, and so we needed everything to be in one place. >> talking a lot about apple as a streaming service. of course, apple just hired those two executives from sony to get their original content television program kick started. >>

so quite a rebound i think apple is a prime example at the heart of this i take the point, bob pisanias saying earlier he doesn't understand why people say apple is overvalued. there's this valley of doubt on apple that usually happens right around late august to late january people start saying oh, this iphone, this next one isn't going good enough. there's never been an iphone as good enough as far as investors are concerned. this time they are expecting a big cycle. >> the point is more the consensus doesn't have a lot of upside, right? people are excited about this phone. >> that hardly ever happens. when people are excited now they are almost sure to feel let down when they get the news sometime in mid-september what happened to the stock because investors feel let down doesn't mean the phone will be let down we won't get the numbers until january. >> when you talk about the sell off in tech which is now going on you have to talk about the outperformance of this group so far this year and the fact people thought it was right. the market up until friday was up 9%. facebook and ama

. >> let's get to bob pisani quickly.bout eight minutes until we expect whole foods to resume trade. >> we have our eye on that the primary reason we're see seeing weakness even today is because of the amazon effect put up the grocers again walmart's $220 billion market cap. you have walmart down big that weighs on the s&p, costco is probably a $72 billion market cap. when you have the two together down that much, you get weakness in the s&p just want to point out some of the smaller grocers are getting hit rather noticeably. supervalu. all the names. sprouts. weis, they'll have a harder time competing. i want to give a shout-out to anthony declemente, he had raised the price target on amazon to $1,100 and he was trying to justify that he had 975 it would be faster than walmart and costco, but the primary reason he thought they were going to get faster growth was the amazon was going into the grocery industry he noted it remains one of the largest and most underpenetrated markets for amazon nice shout-out to anthony decle

. >> let's get to bob pisani hey, bob. >> good morning, guys.3-1, declining to advancing stocks we improved, about to go positive energy is an issue here. take a look at the sectors tech, a lot of the semis on the upside new highs there. health care has been a market leader industrials as well. lot of new highs in industrials. caterpillar is a new high. honeywell, 3m. there's the weak link, energy stocks we haven't had anything at all this year. the big thing right now is a lot of new lows. we've been hitting this a lot. we'll hear a lot again today transocean, hess all at 52-week lows good and bad news about all of this earnings estimates will have to come down on all these big names and that was a big part of the whole oil recovery story good news is that energy stocks are a lot smaller or part of the global markets s&p 500 right now. the impact will not be good lowering the numbers it will be a lot less than it would have been two or three years ago. number two, it's a big help to consumers. finally, you noticed we stopped sayingoil is a prox

the markets have bounced back a little bit but then seemed to fall as we got that news bob pisani is wn at the nyc. is there a connection, bob >> yes, there is as well as with oil. this is a partial ban that was allowed to go forwards there was an effect on the market here. may be harder to explain why tech stocks when negative. look at the xlk. this is the etf. i think concerns are with regard to the h 1 b visa program. perhaps there are broader implications on investments of a more closed united states, more philosophical types of questions. the key is it didn't last very long here. oil has dropped at the same time as you can see intraday here and then oil started recovering as well the same story we've been seeing all year nothing drops the stock market look at the s&p. we see a drift now even now, if you look at the vix, we're now once again below ten and sitting near record lows yes, i think there was a relationship but, no, it didn't have a big long-term impact, at least not yet. guys, back to you. >> thank you, bob. let's go to elon for an update. >> there are individuals who a

i would have rather had a course on -- >> is bob pisani ready let's get to him we've got the altice ipo bob. >> we were just talking here they have 1200 employees from altice here. it's always nice to talk and see what's going on. i just want to remind everyone we are talking about, what, 46 million shares > >>>. >>> that's the dutch capable company, fourth largest capable provider i want to highlight the float. maybe this is not a new low, but typically the billing story, trying to float 10 to 15%, so you limit the amount of shares, 8% for a nearly $2 bill quote-unquote offer. that's a very small float. i don't have any indications for you yet. the value is in the broadband. you still need broadband, and they've got that that's why there's a lot of interest in this stock another ipo, right over here, this is a reit it's a commercial reit, and they a acquire ground leases, they own land underlying commercial real estate, and then get a ground lease to the companies that are actually developing the properties, which are in charge of taking care of everything essentially. keep an eye in t

. >> are your bags packed, janet [ laughter ] >>> stock reaction, get to bob pisani from the new yorkb. >> it's obvious that the fed and the market, very much aligned. i agree with steve's position. looking around for some indication of acknowledgement of the recent economic choppiness, we've talked about particularly today, cp high and retail sales, it's not here. modest upgrade to the economic outlook. economic activity rising moderately so far this year. modest upgrade there we have seen household spending picked up in recent months modest upgrade business fixed investment continued to expand. also modest upgrade. they did acknowledge a slippage in inflation but talking about 12 moss basis expected to remain below 2% but stabilize around 2% objective over the median term and basically sticking with this is a short-term if a knoll nophn basically still there, a little off, towards the neutral area. bank stocks move, outward look or interest rates scenarios also on the flat side pretty much the key point will janet yellen be non-committal on a rate hike and what will she say if anyth

almost a 5% move let's get to bob pisani. y monday, everybody let's split open -- i want to show you what's going on in europe where we're not surprisingly getting some follow through to the second sell-off that we saw in the united states some of the big chip names that are down there asml one of the big chip machine manufacturers is down. these all trade over in europe and obviously you can see some follow through on the down side. here in the u.s. we're seeing what we saw on friday which is rotations into values. so energy stocks strong again. today as they were on friday banks up fractionally. tech down. consumer discretionary down. two of the big market leaders on the year -- tech and consumer discretionary. what's stronger market losers, energy and banks that's rotation. of course your f.a.n.g., whatever you want to call them now, follow through is down. so the debate is over growth versus value this is what everyone was talking about over the weekend is it time to go and finally buy into value so if you look at the -- t

bob pisani is on the floor of the nyse hi, bob. >> reporter: there doesn't seem to be anything in the way of the market ramp. let's look at the internals right now. we open 5 to 1 that's a good open it stayed that way throughout the whole open the volume is moderate lifting quietly and volatility keeps dropping we know that story, too. sector, it's this rotation again. oil service names, bank names and retail names, whatsectors are trading for the upside oil service names, bank names and retail they are leading as well here and how about the banks starting to see the move forward. we've been telling you about the results this afternoon who will be able to buy back more stock citigroup on many people's list for increasing the dividend as well stabilization with the ten-year is helping as well and to look at oxlf, even in europe you see the europe banks strong again from an ecb banking forum. some may get the green light to buy back capital or buying back a return capital michelle, wouldn't that be something to see something happen with the european banks as well? again, remember, 2 1/2

. >> let's get to bob pisani. seema mody on the floor. coke is lagging. >> good morning, carl.itive session so far for u.s. market. the nasdaq also higher. we are setting ourselves up for what some are calling the most important day of the thursday. ecb meeting and former fbi director comey testifying this as president trump nominates a new director. i want to point your attention to the dollar. slightly higher right now. continuing to weaken against the japanese yen as the flight to safety theme has helped them to strengthen. 1.09 is the key level. overnight, china reporting that its reserves rose for a fourth consecutive month in april suggesting to some that beijing is now able to control its capital outflow. shanghai composite, closing up by 1% and now up around 7% over the past 12 months. the other big talk of this morning is the drop in yields, not just here in the united states but around the world. the near term catalyst will be the ecb meeting that mario draghi will end the quantitative easing, but black box accepting a dovish tone from the president. keep an eye on th

let's get to bob pisani. >> mixed open today. i want to show you what's going on in england. uk benchmarks are sort of going in different directions. but the ftse 100 is up. most of the time when sterling goes down, they earn most of their revenues abroad so they do better on a weak sterling. if you look at the ftse 250 that's domestic focused, it's to the downside. a little bit of bifurcation if you're export oriented. these are most domestic companies. associated foods for example. they're all to the downside. that's because you underperform on the weaker pound. concerns about inflation, for example. then you look at the export oriented companies. rolls royce, the big copper company. burberry the clothing company, they're all to the upside because they're export oriented. you see the differences here. banks are on the weak side. rbs. there's some concern that the labor party is taking a new approach to publicly owned companies. rbs is a big example. maybe having a consultation on breaking up the banks. you see royal bank of scotland to the downside. here i see vie very impo

let's get to bob pisani on the floor. >> good to be back after a week in charleston. despite the weak jobs report. let's look at the sectors right now. only thing really in the green are the financials. you see the bank stocks up, of course they have been terrible performers all year. tech also on the upside. industrials down a little bit. the energy stocks no energy at all. nothing really happening with them. what's happened, if you take a look here, is the market's become unusually bifurcated. so the major sectors look at that. technology stocks up 8%. this is an unusual leadership group. the technologies and consumer staples you don't see that very often. banks and energy, no movement at all. it's unusual to see a 15 percentage point spread between the leadership and the bottom sector after six or seven weeks so the market is very bifurcated right now. particularly regarding banks and energy. a lot of people over the weekend i heard arguments we need to resolve this contradiction between the stock and the bond market. we hit historic highs on friday. we closed at 2

putting it in record territory it's pulled back today and so has the s&p out of its own record and bob pisanifedex tonight. >> two things important. first, we're hating 52-week lows right across the oil names exxon, marathon, 52-woke lows and i'm starting to see 52-week lows in retail stocks. amazon rolled out a new product called wardrobe. check it out a lot of retailers down. they are constructing the whole retail space a big story today. >> something we'll talk about among other things coming up, we'll have the earnings and a lot more in the second half of the "closing bell" with the dow down 62 points on the close. >>> and welcome, everybody, to "closing bell. i'm sara eisen here for kelly evans today. here's how we're finishing up. a down day on wall street. first decline for s&p and dow looking like it's having its worst session and same is true for the s&p 500. nasdaq heavy performing. and the russell 1000 along with transforts also underperformed the broader market oil is a big part of the story as well following a bear market. we'll discuss it we've also got earnings from fedex and a

let's get to bob pisani to see what's move tong floor. >> downside, today, carl, particularly in techat the sectors. technology down led by semiconductors that's the highest beta group that's out there so that's down bank stocks a bit weak telecom is down fractionally a slightly more defensive tone to the market. let's put up the dow for the last month i think the reports that mueller is investigating trump for possible obstruction of justice, remember that may 17th, there big drop, 373 points that was when reports came out that the former fbi director mr. comey had written a memo implying that trump asked him to stop the investigation of michael flynn the markets are concerned about anything that would interrupt the trump agenda i think that's a factor today. and the fed tightened aggressively yesterday i think it caught some people by surprise the hawkish tone after people listened to the press conference i think there may be some residual effect on that as well. let's move on and talk about things that are moving jim had a very good point this morning. he mentioned the home builder

look at that, bob pisani that looks a lot like what has gone on this year so far, right?there was oil dropped earlier in the day, an i think there was a little concern about the supreme court allowing some aspects of the trump travel ban to comein about the impact you saw some of the airlines come down and general impact on that, but overall this is one of those days i want to remind everyone. we're only 12 or 13 points from another historic high on the s&p, so i know it's not terribly exciting, but we keep greepg up towards it your bid just popped to 13,5. >> i understand, and we're thrilled keep it coming it goes until 4:45 p.m. eastern time tomorrow, and we'll see who wins that bid there. thank you, bob. >> again, thank you for those bids still coming in the dow up 14. stay tuned for the second hour of "closing bell" with kelly evans and company. see you tomorrow, kell >>> thank you, bill. thank everybody for those kids which are incredible welcome to "closing bell," everybody. i'm kelly evans. here's how we're fir inning up the day on wall street the dow with a gain o

selling of various stocks in that -- in that indeck, and it will be very heavy volume, and then bob pisanibell bed bath & beyond, and after all of these years i've still never eaten at a sonic have you >> no. >> i here the lime ade slushy is to die for. >> speaking of retail, you were talking b.tomorrow the russell rebalancing. it's always fun to see the stocks that are going out of the 1000, the big cap and into the small cap. it's kind of a morbid curesity a lot of retail names. jc penney getting kicked out of the 1,000 into the 2,000 a little more than $1 billion market cap and dillard's is getting kicked out, and some former darlings, groupon, fitbit getting kicked out watch one big name going into the 1000 and amd has had a great year that's been a big, big mover >> sometimes reality hurts speaking of reality, the bank stress tests coming up in about 30 minutes stay tuned for that. sheila bair will react to that on the second hour of the "closing bell" with kelly evans, and i'll see you on there as well momentarily see you in a bit, kell >>> thank you, bill. welcome to "closing bell,"