what about bond etf's?aw what happened in the global market last week in the last couple of weeks. them -- i see a work atlows who to valuation levels. normally the people who go at the top of the market might be spooked very soon. a 5% selloff to see these move. mark: in the last 14 years, every year he has one. emerging markets, at the current it with emf is assets? >> i don't know. happy.ou are it has to be a relationship between maybe football and emerging-market debt possibly. , come back with that's that. good to see you. black rock head of emerging-market fixed income. vonnie: coming up, another white house controversy overshadowing reforms to health care. .ho he holds responsible this is bloomberg. ♪ mark: live from london in new york -- and new york, i'm mark artan and i'm with -- mark barton and i am with vonnie quinn. vonnie: issues of interest as the battle continues over health care reform. today, we're looking at drug rices. americans spend more on prescription drugs than anyone else in the en

. >> etf's have become very popular with investors. 15 years ago today, the first bond etf was offered. how far have they come and how far will they still go? >> a new division of bonds called i shares, they called it an exchange traded fund. even though only 4 funds were launched that day, it changed the way bonds are traded. the assets oefrn $700 billion, and most of it in the united states. that's a success by any measure. and the business is only going to get bigger. you keep more of what you earn. despite complaints that the etf business has grown too fast. they're really a small part of the u.s. equity and bond business. it's only 1% of the whole bond market and 8% of the whole market. it could get to 50% of the u.s. stock market, that could take many years, the bond business could double in the next five years. despite the attention etf's have attracted. there's a larger audience that the biggest etf providers have set their sights on. like professional asset managers. more pros will be putting more money into bond etf's in the future, as the whole bond moves toward electronic t

twokrock is starting smart-beta etf's coming next week. some funds that already at the -- already exist, but smaller than stocks. >> the fact they came out with the two smart-beta bond etf's last week, we have a particular hyd be, and also investment grade high-yield etf's. value andaking quality and applying it to the debt market. defenses are going down as well. we are looking at bonds that might be slightly less risky. on the other side, we have ige looking at the return portion of that. they are looking at bonds, that are a higher yield, black rock's investment grade market etf's. , generally, know -- difference can be them the difference between them can be a hair's breadth. >> the interesting thing about the funds is how they compare to blackrock etf's. the blackrock etf's go with self indexing rather than paying an external index provider, that means blackrock has all of the control over the process the beginning to the end. they come up with the methodology, they do all the rebalancing. there is a cost saving there, not having to p

short etf, that adds to their long driven etf, and you look at goldman, already all filed, they are covering whole gamut. i call it a clone army because it is not a real hedge fund but it kind of is. they will be managed like real hedge funds. but their trying to do is tw thinko -- two things, they want to get access to a goldman hedge fund manager bit anyone can invest because it is an etf. it will be have the cost of an actual hedge fund and it will not be capital gains, so more tax efficient. the second is, can be peeled off any investors unhappy with actual hedge funds? that remains to be seen. i do think it is a good retail product. the other thing is this category recall alternatives has not been that popular, only 2 billion in assets so far in this area. two reasons, one, the equity market has done well. the second reason is because you have not had big issuers. nobody with the name and size and stature of goldman sachs and jpmorgan has gone in happy. as far as etf categories, the alternative space is wide open and we will see if they can make this space a hits. julie: maybe there is

why keep buying etf? the boj thinking that -- for them toifficult get the elements that are similar. also the distortion that might be perceivable he in the market is still manageable. that is the idea of the boj. they could tweak the composition of etf down the road, but i think it is difficult for them to decide, completely reduce the amount of the etf in the future. bankeen: european central also wrapping up its two-day meeting, no change expected. people are wondering if mario draghi will tilt hawkish, not signaling he is ready to slow down bond buying, or even more hawkish. what you expect and what does it mean for bank of japan? >> in june, mario draghi already changed the communication. i think this time around, mario draghi will stick to the current tone of communication. also, it depends on the development of inflation in the euro area and the many people in the ecb, they're going to see over there as well if the inflation is very slow to improve. i think in the immediate future, the ecb might be

etfs for our tuesday segment.ie: it has been a pretty quiet summer for the market but that has not stopped the etf momentum from doubling its stellar run. with me is eric balchunas who covers etf's at bloomberg intelligence. at smart into flows beta etf's this summer and found a shift toward momentum. is this a matter of stocks going up so people are trying to chase it? eric: performance chasing is really what smart beta etf flows are about except the vanguard value is like a cash vacuum cleaner that will take in money regardless. up 20% this year, double the s&p. here's the thing, when you take a look back under the hood, it is not exactly the academic definition of momentum. lowballalmost like a version of momentum -- low vol version of momentum. ,hat you end up with is stocks a lot of large caps and large caps have been outperforming small caps, and it rebounds semiannually, not monthly. the devil is in the details. when it works, it works. if the thing is up, the formula is working but it is not exactly techni

time for etf friday. can etf's get any lower? a recent filing shows there may be a zero feet etf.to discuss why this could be a game changer, here is our bloomberg analyst. is what's driving demand now but no fee is another matter. what is this etf and how can they make money? at the filing, it's not out yet. it's the schwab 1000 index fund. what struck me is they already have a large cap etf and a broad market. why would they file a new fund question mark if you look, the index will track the schwab 1000 index. when you sell index, then illuminates a cost. their other large cap ones charges three basis points. do itly reason they would to compete against themselves is to be the first with zero. it has been going this direction and it would make sense they will do it. 2 or lowerdefinitely but it will definitely happen eventually. how they make money is fascinating. generally, half of their revenue comes from interest income. they are looking to get all the money they can and put it in a short-term treasury and then make money. schwab ande covers he says schwab stock will move with

the big bit of etfs, the industry has swelled with more than 2,000 etfs trading in the u.s. be a bubble brewing. we'll talk to the head of i shares, that and much more coming up on power i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ >>> you knee it well

grains make up 40% of this etf. we've seen very large optums going into this etf. days there's been a total of 47,000 in this etf. on a notional exposure basis, that's quite large. and that's a very unusual flow for this etf, which is usually quite illiquid and sees little volume trade in the etf itself, let alone the options. julia: what do you think is going on there and how do you capitalize on that activity? >> that's a weird thing. you would expect if you want exposure to agriculture you would treat underlying futures, or options on the futures. the reason for that is because the correlation between agricultural commodities tends to be very low. whatever live cattle is doing tends to have little to do with whatever wheat is doing. hard to make all agricultural commodities move in the same direction. as such, this etf tends not to move too much. such, we like actually selling options on this etf. there's a chart we want to bring up that basically shows the volatility premium, or expected into thesebaked options. it's very high compared to how much this etf move

it's time for etf friday.ie: well the etf business was built around the index business, it looks like we might see some of these etf brands superseding the indices they were based on. ericaltunas is here to talk about this. you have written analysis about this? what is the competition if that's the right word and why is it a problem? >> you would think the growth would be best for index makers and it has been. the stocks are double the s&p 500. black rock and vanguard have been taking it on the chin for having to lower fees. while passive is good for the in next maker, what is coming could be a big challenge. when money goes too passive, it's not just going to passive, it's going to be ultra dirt cheap absolute nearest to zero passive. there is a chart showing flows of all funds over the last year. if i did that for three years, you would see the same trend. basis pointss 0-10 in a goes down. managers are only going to incur these costs for so long. they will do all they can to passive downstream and i think t

we saw this happen several times to the stronger companies in hack, the cyber security etf, and withand biotech etfs all you want is a company that has the best prospects there's a place for these exchange traded funds. owning fiscal gold bullion is too expensive and the gold miners often leave you out in the gold but the price of gold is tracked as closely as possible but i'm against etfs because they create enormous distortions that can obliterate the best of stocks you can find yourself caught in a stock that's pushed up or pushed down by one of these leverage entities that should have never been approved by the government you have to accept more risk if you own a stock that's hostage to a given etf my final words to the wise, accept the fact that at any given time the rules can change. when the fed raises interest rates, people pay less for stocks all stocks it's been ages since bonds have offered much competition to stocks if it's corporates, they may yield more, but you can be taking on more risks think about all the billions lost in municipal bonds. watch the debates in states

i mentioned you're trying to launch this etf, essential 40.ow did you compile the list, first and foremost >> my staff and i spent about a year and a half trying to figure out a new concept for ets based on essentiality. if i had to define that, it's without these -- without the specific companies or best in breed of a certain class, right? your life is, how shall we say this nicely, materially impaired we didn't look at dividends, we didn't look at return of equity. we looked at what companies we felt materially without them would materially affect the way normal people live every day. >> facebook, amazon, alphabet, apple, not surprising on that list exxon, duke energy. >> right. >> enterprise products. >> think about what happens if enterprise products gets out of business what does that mean? if that company doesn't make it. what does that mean to the way the infrastructure of this company is built in terms of nat gas and distributorship. think about if -- talk about the tech stocks. think about if waste management. waste management people

the xlf, etf attract bank stocks super.hile the big banks boosted dividends after passing the stress test our next guest says there's a reason not to love the bank stocks. jason, welcome banks are up today kbe, highest level since march but you have pulled back on your bank holdings. why? >> we're concerned really that banks are going to follow the yield curve and that's what we're seeing with banks moving higher as bonds curve deepen but we don't think this is sustainable. we think the yield curve will stabilize. with bond yields is around inflation, inflation has been persistently low so many factors coming together beginning with wireless carriers and the pharmaceutical sector drug prices are being held back -- >> lower inflation or less robust world inflation means the fed doesn't have the ability to raise rates lifting the yield curve. >> that's right. not only does it put pressure on the long term bonds making the yelled curve flat but it will be hard for the fed if inflation continues to be low. or raise rates at the

just today, the etf that invested real estate investment trust fe its largest drop since early march. diana oleic has more. >> the amazon whole foods deal story, but the value of strip mall centers with a whole foods just shot up. >> if you have a whole foods center in place, more likely to see increased foot traffic and we would expect retailers would want to be around those. >> increased foot traffic will come from those who may have stayed away before because of higher prices. now, they have a reason to go. if prices are and maybe theye picking up some bedding they ordered on amazon. other centers with competing grocers are likely to see less foot traffic, which will hit the grocers, connect its stores and the real estate underneath even harder. >> you might see a degradation, situations where rent growth stagnates and at the end of the day, that's not happening because the best retailers are like ly to desire being near th whole fo center. >> these centers are owned by publicly traded real estate investment trusts, which could take a big rit. regency and wine garden are the most e

i do worry about market structure insofar as there are more etfs than individual stocks. if you ever get some reason some headline that forces people to dump etfs, they will unduly pressure the stocks in the baskets that they buy. you could have one of those kind of shocking days that comes out of the blue, but right now wall street is shrugging off washington. earnings as bob said are doing pretty well as they did in the first quarter. you have a variety of supports for this market. i don't love the market in this environment, but it's also hard to fight it given that it continues to win. >> so quickly. what would turn you against this market? is there any -- >> everything that's happened in washington thus far would have turned me under any other scenario in my experience. the headlines that we've seen from washington would have caused 10, 15, 20% direction. it hasn't. you never sell a dull market short they say. i'm still cautious, but if you pick the right stocks, you're winning. >> ron, thank you very much. great to see you. >>> goldman sachs was the worst performing

as well as from semiconductor etfs. what about this argument that there is too much money going into these kinds of massive investmen investme most are not concerned about that because etfs are of all u.s. equities. that's a small number compared to 401(k) plans. i'm bob pisani at the new york stock exchange. >>he for t second? here's what history tells us. the average return for the past 20 years for the final six months of the year shows a gain of about 2.5% for all three of the major indexes. a little higher than that for nasdaq as you see. brad mcmillan, chief investment officer at commonwealth financial joins us now to discuss. brad, i see in your forecast that you have the s&p 500 moving up to about 2500. that's about what? 20% from here, right? >> just about there. and i think that's going to be about par for the course. >> what do you think drives it to that level and what are your worries? >> well, where we are right now, we've seen the market come back on fundamentals. and i think the fundamentals, the earning

now, they have shifted to lower-cost etf's.he downside is that people are trading them a lot more. in the advantage they are gaining to lower costs, they are giving up by trading more. in the s&p stocks 500, the turnover is 120%, meaning how much they traded share. the biggest etf's turn over 900% each year. people are trading them a lot. they probably lose a lot of their advantage by over trading, because i have so much easy access. they are liquidity providers. how many do you need to keep the market appropriately liquid? ben: well, the old joke i heard dentistsou need two having lunch in lubbock. but that is a little tiny. thes still a majority of assets, something like 66% active. is even, the number higher. we look at all global assets, indexing is only 5%, if you look at bonds, commodities, and stocks. the growth has been spectacular in etf's and index fund. i think there is a way to go. i think active investors are needed, but i do not think they are going anywhere, because it pays to well. people make lots of money acti

that's real etf innovation. flexshares. built by investors, for investors.e investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. >>> welcome back bill miller is back on top again. his flagship fund is outperforming the competition by nearly six percentage points has this come down to one or two stocks >> it's a handful of them, but they are deeper value plays in some people's minds. bill miller's year-to-date performance for his fund, his opportunity trust, is 20%. that's just year-to-date beats the s&p 500's 8% here. the one year, the last 12 months, is up 48%, a considerable margin there in terms of the s&p 500's 14% gain. we took a look at some of the heavier weighted stocks. some of them have done really well over the past 12 months way fair, a 3% weighting in his funds, up 111% year-to-date. restoration hardware, one of the stocks picked eed up on the ch up 104%. amazon, we know that stock is up 31%. and american airlines, delta as well, th

brush like a pro. >>> welcome back etf provider pro shares, new etfs they've just filed for. >> yes >inst the shopping malls >> right >> by shorting traditional retail so the comment when this first came up. >> the knee jerk contrarian in all of us wants to say look at this, they're launching an etf to go short. this has to be close to a bottom but then like the rest of me says no, it's too easy >> just filed. >> they're going to do a one x, a two x, meaning double, which has that negative compounding each day the third version, they're going to go long on the online retailers and short their traditional brick and mortar we'll watch. >> that's going to be interesting. pete, your final trade >> yeah, pepsi coming out tomorrow i think it's going to be strong. we know that they have that incredible international presence, scott, but the fact that they got 22 brands that will annually have sales over $1 billion, there's a bot of good things going on at pepsi >> jim, you're up next >> sony is one that we don't talk about and when we do, we give it shade because it's not in the electronics

>> it's going into etfs and index funds. large part of it particularly for the domestic market, but we're also seeing a lot of money going into stock funds that invest overseas. both etfs and for mutual funds. we're seeing a lot of money. nearly $190 billion has gone into bond funds this year. >> can you identify who's doing the buying and selling or not? >> well, in many ways it's really financial advisers who re help if you're in a 401(k) like a target date fund, it's automatically putting that money to work for you. and so it's -- there's -- it's not the individual investor running after these trends so much as someone helping create a portfolio and directing that money. >> not so much the individuals who are jumping in at what later may turn out to be a top. you just let something drop in there that's very interesting. bond funds, lots of inflows. >> right. >> why is that at a time when interest rates seem to be going up, is it that same sort of mechanistic investing, the target date fund that says, okay, 40% has to go i

the etf gained about 10% last month for the best month since july of last year, this of course will be a sector to watch as we head into the second half of the trading year. michelle, we're seeing more biotech ipos finally after a big drought from that sector >> yeah, watershed moment for them time for "street talk. first stock is buffalo wild wings. stevens downgrading the stock, citing the uncertainty about future leadership. analyst says buffalo wild wings is one of our favorite casual dining names, however they lowered the pry target from 145 to 195, so a far less bigger move than what they're expecting. >> it's been a tough year for buffalo wild wings investors, stock's down 20%, even with the so-called activist inside there. >>> stock number two, pandora.

the s&p tech sector etf is up double digits. stocks like facebook, amazon, netflix, apple led the charge gain iing about 20% or more. a survey showed ha strategists believe the sector will outperform in the neblgs six just a few minutes, we'llom have some money managers for their top tech pick for the second half of the year. >> well, 2017 could be remembered as the year of the retail wreck. the sector has been a mess. sales are most sto closing, but will the rest of the year be more of the same? courtney reagan has more. >> the second half of the year is always the most is year, ther lost a lot of ground to make up. back to school inventory is hitting store shefls in the next couple of weeks, that is if it's not already out. when every year marking a time when everything has to be bo back to school items like computers and backpacks. since last year was a big spending year, look for back to school sales to be below last year's levels. there are also a few companies to watch. if no other bidders emerge for whole foods, a major r

which etf's are these? you look how they reach the big time and then go to the poor house, not many do, but the good grouping you could classify as living by the performance and a dying by it because a lot of them are just used in the form of -- some examples as you can see, this is one of the best for the agri business. it has less than a billion dollars now. it really died with green performance. 18% in the past year, but investors are not coming back. moo lost those investors who cannot stomach the year after year downturn. fxy, people forget that the yen was a hot plate before abe was elected. but had a billion dollars, not it is down to one million. that one lost money. whendx, the indonesian -- the bubble is kicked to a country the assets come back. was hot for some time. abigail: the next group? eric: this group is competitive. you have imp, this is the india etn. it was the first india product. india you do have their market open to foreign investors, so everybody came into this because you do not a

here to break down the biggest junk-bond etf's are senior etf analysts at bloomberg intelligence.'s take a step back and talk about howard marks and others. he is not the only one that is concerned. what's the validity that they have? >> there is logic in the criticism. how can something be more liquid than underlying assets. ? i refer to it as the dressing arc dilemma. you're trying to bring ancient beasts. are they going to eat the patrons and have a huge crisis were no one can get out question mismatche is liquidity that he is identifying. interesting. this is the charge of the debt market relative to hyg. they only own 3.5% of the total junk debt market. mutual funds own 25%. chat -- are's are a a tiny owner of the market. when you think about the liquidity mismatch the hyg holds the debt and the only trade 20% of the debt trades every day and really 15% trades on any given day. that is the worry that they have. it has been around for 10 years. it only makes up 2% or 3% of the market it makes up 13 to 15% of the trading every day. people trade the heck out of it that it is not

the decline in banks is putting the spider bank etf under pressure etf is down more than 1% and on tracknearly three weeks now i'll send it back downtown for the start of "squawk alley." >> thanks, leslie. it is 8:00 a.m. at amazon headquarters in seattle and "squall alley is live. ♪ >>> good friday morning. welcome to "squawk alley," john fort here at post 9 on this interesting market day dow up is 18 points or so. shares of snap are under pressure yet again this time it's cowen downgrading the stock to market perform citing digital advertising the second downgrade this week

today is the 15th anniversary of the very first bond etf it's about 1,000 bond etf's worldwide. that's small compared to stock etf but it's growing fast. people complained about the growth of etf but there's a fairly small part of the overall business so etf as a percentage of the stock market only 8% so there's a lot of room to potentially grow here. we'll have the head on power lunch. there's the four that were the originals. >> let's get to rick at the bond pitts in the chicago good morning to you rick. >> good morning, carl and happy fed day everybody. you know if you look at it we clearly jumped a bit we're up about 20 basis points and maybe a more important designation. that's when we made the close of the year around 2:12 bunds drifted a little bit but maybe the real thing to pay the most attention to can be seen rather clearly on this year to date chart of bunds. just look at that 50 line. 50 basis points and then the recent activity on the right hand side. we're currently trading in a crown over 50. which means if you start to get back under 50, that crown will turn int

the stocks etf now tracking for its best week of the year. the move has been underscored by one stock that continues to seem to defy gravity. nvidia, up more than 4% today on the heels of yet another analyst upgrade, this time from sun trust. that's fifth in just the past month. wall street just cant seem to get enough of this stock, so will chips keep grinding higher? >> i think so. pete's been on dancing with this for some time, so i think the answer is yes. i think intel sort of sideways to lower for quite some time i don't think you're going to get killed owning it, but inv nvidia, to your point, i know it can be painful on the days where somebody says i'm shorting the stock, but the story is in tech. i still think it has a chance to trade $200 a share if not hire i'll name one more i think pete cut out today amd, quietly, right back above this $14 level i think they report on july 25th big short interest of 20%. >> and these are two brian kelly name, he's been liking these names for a bit. the interesting things that the analyst directly

>> more etf than jgb's is my first comment.n , we need inequities culture again. people need to believe in and buy anticapitalism. the most effective way of doing that, if you will, is to buy an etf. you have broadly supported topics. that seems totally appropriate given the goals of prime minister abe. how do you get to a reflationary trade. there are a number of ways we can go about trying to solve the problem. pushing up equities or buying equities does seem appropriate. you mentioned prime minister abe would need some kind of win now. how would that help ring growth in japan? >> there is a long list of structural reform items. and some are being pursued. .pp we were big supporters of tpp and disappointed when the united states dropped out of it. japan and prime minister abe have shown a great deal of this processking alive. making the agricultural sector more efficient. opening up the hospitality sector. all of these things of been happening under his watch. enough think he's gotten credit. yvonne: ed rogers, joining us the

etfs the last few weeks which is surprising. and also the largest outflow from commodity, etfs, in quite a while. mostly due to oil. even though oil prices have been going up in the last couple of weeks, we've seen 14 out of 15 days worth of outflows >> all right you know, when it comes to commodities in particular, and oil to some extent being a subset therein, the dollar index is down almost 8% on the year. and the crb is down 6% on the year a bit difficult to square. give me your observation >> well, not really, consider that ecb is printing 60 billion u.s. or 50 billion euros. >> i'm looking at it the wrong way. looking at all of this in terms of euro. continue, charles. >> and also consider that with all the money going into like i said before, there's a huge amount of new capacity going on and all kmadties since zero interest rates means it doesn't cost anything to add capacity as long as the current market price is higher than the break even price. and everybody always believes that like gravity, kmadty prices have to go

etf's have expenses lower than its competitor. our bloomberg intelligence etf analyst. why are they doing this? it is not helping them in the meantime. they are not helping them shelves -- themselves. getting into playing shape. a lot of asset managers are cutting these to get prepared for what will be a low fee or even no thief you chirp. -- no-fee future. you swing out of active into passive, that is double any other start to a year. more than that, the bigger trend is what i call the great cost migration. investors are so cost of access that if you look at mutual funds , you will see a huge rush into products that are zero to 10 basis points. then it goes down to about 40 and then the outflows begin. fidelity is just giving investors what they want. they are utterly and complete cost of test to the point where blackrock has a chart that shows that cost is the first criteria people look at when picking a fund even ahead of exposure. julie: what do we know if whether the strategy will work for fidelity? everyone seems to be lower

the etf could play that. >> chairwoman. >> event stock, rent a center.apital activist who has members on the board and says the company is not exploring alternatives which they agreed to do. i think we'll see a deal eventually. >> steve grasso. >> if this rotation continues, you want to see exit out of f.a.n.g. and into energy stocks, financials, go with the xle, energy etf, xle. >> rich ross gave you a jethro's -- tim knew obviously >> that was the reference. >> anyway, do you have a trade, guy? >> i do. i think snap is destined for nail year. i think in the short we'temple we' term we'll see a significant bounce. ielsa lee.ching "mad money" with jim cramer starts right now >>> my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and te

your first pick is the spider etf. xbi. >> right. there's about 90 companies. they're equally weighted. small, mid and large companies. space by the idb, but we see the action in the small an co we just saw a big cystic fibrosis discovery, xvi moved up on that. it was a holding. there's a lot of future in bio tech and it's going to be the future and that's where we want to go. we want to go to the future. they dropped significantly last year, so there was an opportunity starting around january to get in here. it's got a long way to go. >> let's move the to your second pick, google. tell me about why yo we just heard from meg about verily. google's in a lot of businesses. you think about it. android, youtube. youtube, downloads 300 hours of video per hour. they are the future. they're into artificial intelligence, machine learning, they're smart management. we've got to look to the future. google's part of that future. >> it's a good >> and your third pick is bah bah. alibaba and you said it is amazon on steroids. tell me why. >> full disclosure, we were down fo

those moves have the options market in a frenzy both the gld etf and silver etf saw two times their average daily options volume sellers plan to be buying the dip. buyers were at the july 116 calls. they were at the july 14-15 expiration calls >> thanks for setting that up for us, jackie what do you make of the moves in gold and silver? >> they're extraordinary overnight in silver, you had a flash crash. everybody thought it was because of a fat finger. over the course of the day when the markets opened up and you had bigger traders in there, you see it going down. what's going on with silver? twofold. it has industrial uses if we have a flattish economy, it won't be as much. secondarily, it has the inflation hedge element to it. we're not seeing any inflation we're not seeing a lot of reason to own silver in this environment. >> why didn't it come back after the jobs report today? >> why didn't it >> yeah. >> there wasn't any sign of wage growth or exploding inflation. no reason to come back. >> it would suggest theeconomy isn't weakening. >> yes, but it doesn't necessarily suggest the eco

in white we have the s&p 500 etf. we see something interesting that we have not seen since the taper tantrum in 2013. big losses for bonds and stocks at the same time. typically you see stocks rally as bonds selloff, or the inverse. today, stocks are higher as bonds are off a little bit, the 10-year is off little bit, but behind that, tech stocks, faang stocks all nicely higher after the selloff we have been seeing recently. investors are liking the job report, a bullish tone for stocks. vonnie: thank you for all of that. and joining us now to dive into the monetary report as well as the june jobs report, what clues they give us about the federal reserve's next move, omair sharif. you have not had much time to get through the report, but you more or less know what it says more than likely. what are the points that congressmen and women should be bringing up next week? number of points, productivity, mike talked about that. generally what you find in these testimonies with respect to the q&a, democrats are focused on w

spread $1.50 is what you would have paid sell the other at 70 cents that's $1.20 the current value etf. every now and again you do need to decide that there is asymmetric risk/reward n. this particular case the options trade is worth that. you're risz being $1.20. if it drifts a little lower it's not going to give up its volume immediately. >> i like the trade idea if you agree with carter's technical call risking 1.20 is okay one of the things that's interesting to me, look at the xle. it looks like it has a little more room to the down side this trade may take a little time if you believe the correlation to the dollar, that sort of thing. i think this is a pretty reasonable way to play it. the thing underlying it's not been moving a lot which is why options premiums are cheap it feels like it has a little capitulation. >> it's also interesting because that was the s&p 500 energy sector which is down in that straight seven period about 20%. s&p midcap 400 is down 42 and the s&p 600 is down 46 we have had a decimation as everyone knows it's anecdotal and no way to model it people who w

there is 38% market share and etf business which is unbelievable. >> dan loeb calls blackrock an asset gathering machine. >> no doubt. >> he mentioned the statistics that you just said as he lays out why it's such -- has such tremendous earnings power and that's why he likes this stock. >> and in the traditional asset manager business, labor is a very high cost when you have an etf business and it's growing organically, you don't have the margin pressure that the traditional asset manager might have there's tremendous growth there and analytics which they have started to roll out which i think is a big growth area we like the stock. >> if you've ever sat by somebody from blackrock, which i have, the culture is absolutely incredible and the people are incredible that's what you've got to judge companies by, in my opinion, the culture. so clearly it's done a great job. in terms of business, though, i just don't know. it's a low-margin business >> what i like about baba the most, it stands out to me because look the at growth, scott. when you feel like it's too late to jump into some of t

the power of an etf. the power of qqq. the thinking we put in, clients get out. your client's portfolio at powershares.com/qqq. fore investing,ur client's consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. yeah, and i can watch theetion. bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. . >>> welcome back united airlines sinking despite an earnings beat phil lebeau has all the details. why is the stock moving lower? >> you look at a couple of things some people will focus on the passenger revenue for available seat mile. guidance is between negative 1% and positive 1%. many people believe once they swing to positive for the second quarter we would start to see things grow

i think the rise of etfs has really helped out. of move towards indexing, it creates a more diversified approach for most investors. i think, you know, mutual funds haven't had that real solid track record in terms of performance. many active mutual funds have underperformed just passive indexes, and et fs have really benefited from that. i think the big advantage for investors is not only do they get diversification, but they tend to be lower cost. and fees matter in the long run. charles: they certainly do. i can tell you, you're in the right business right now. christian, thanks for sharing your insight this morning. >> thanks, charles. charles: well, more chaos in venezuela. president maduro's supporters storming that country's congress yesterday, but, e. mac, you've got breaking news right now. >> yeah. reuters is finding there's some military officials including captains, lieutenants and sergeants, 123 of them have been detained in prisons for a possible treason and rebellion. so this looks like there's unrest in the military

two of the major etfs. year to date they have had tremendous runs. >> do you know why because everyone knows this is an industry that is very good at playing politics. number two, the democrats' plan even if they had something remotely close to the votes which they never will, they don't know how to sell this to the public at all to get the house of reps. but they don't know how to draw this line from this is what the drugs cost. this is why your premiums are what they are. they are unable to communicate that. that is why we are talking about premiums instead of cost. >> you have to give credit to the fundamentals. johnson & johnson is a -- >> health care is off the chart. >> just got downgraded to sell last week by two different places. >> silly given that the results were quite good and numbers were going higher. stock is not exactly expensive. abbott labs just beat and raised. hmos will post very good numbers. medtech in general, as well. maybe there are some question marks regarding pharmaceutical compa

i was looking at the uso, the long oil etf that runs in conjunction with the wti contract and if youbought, actually, the august 10th $10 put and sold the $9.50 put so it's a little bit moreau below where the market is right now. so you risk 15 ticks, 15 cents as you call them in the non-futures market to make a potential 35 so the most you risk is the money you put in >> it doesn't seem like a very wide spread, but maybe that's normal -- >> that's a -- >> on a percentage -- i think the best way to think about it is on a percentage basis, in terms of the underlying -- >> dollar value on a percentage basis. >> that's right. obviously, this is a fraction of a price of a barrel of crude, instead of trading 50 bucks, you're looking at a $10 instrument one thing you would say, because i think there is limited upside to crude, i almost wonder why we wouldn't take a look at selling some upside premium in it. i don't see it spiking higher. this does have to make a move -- >> jim -- by the way -- >> no, i see it as range bound situation -- >> what would be the ideal outcome for you with the p

these, discuss a few of etf specialist.ds is to bet amazon will dismantle the retailers and the mall is about to die, when we look at the ways to play this, it is an active way to play this. 100% -- up 140%. fascinating.is it only has $150 million in assets. it trades $200 million a day. that is weird for an etf that is not fix related. related -- vix related. a lot of people are using xrt in place of high borrowing costs. it's a surrogate way too short those stocks. everyone is talking about it, and incredible moneymaker. that is shorting volatility. i have a chart here on the terminal, the white line, you can't quite appreciate this. it is up eight fold. it is up fourfold in the last year. shorting volatility is such a moneymaker. >> everybody complains about the vix. x iv makes money off of that same issue. it is an invert. vix is only down 50% in the past five years. x iv is at 1300%. all of that money is basically making money off of the role costs. >> one of the dangers here is you can have huge drawdowns. what would

flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. 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. or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. >>> calling something a huge win for wisconsin used to mean talking about a football upset over ohio state and columbus not anymore. now the stake in claim title to an expe

how do you do that by buying an etf. on the other side of the corner state street and larry fink's company. >> vanguard. >> they buy a company in hawaii. they don't put anybody on the phone. it's okay. the markets will sort through. >> all right we have a lot more with mario gabelli, including your questions, a lot more on "the halftime report. >> next today, a big blow for a former high flying apple supplier what's bringing the stock to its knees? and can it break out of the slump. >>> plus, pete najarian seeing aggressive chip buying in a company. it's a stock that's about to make a big run "the halftime report" with scott wapner and the traders is back in two minutes let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim

wonderful, kevin o'leary, chair of oshares etf investments. somehow he brought a billboard to a lake. the sector is well off its lows but a rough session for jpmorgan, citigroup, and wells fargo. pnc and first republic also reporting this morning, guys it is a big bank day the overall market is up, sirott, the banks are down is this a buying opportunity for banks or wait, because they're going to go even lower >> i think wait a little bit they're great opportunities. i want to own the banks down road i'm pretty fully invested. i think going forward, if you believe that our economy is going to have steady, slow growth, you believe that interest rates will slowly move up over time, these are great management teams they're going to underpromise and overdeliver. and i think the expectations going forward are not as good as what we think -- >> i hear you, but jon najarian, that doesn't look like it's the case today it looks like they're overpromising and underdelivering. >> well, jpmorgan, you look at the numbers they put up, they were fantastic --

anna: the other thing they are buying is etf's.ith the booing see we've seen in global stock, a difficult is it becoming to explain the involvement of the central bank in the japanese stock market? i think the stance of bank of japan is very clear that buying thek is a part of conference of effort to raise the price. the more the bank of japan buys anything, the price should go up. we should take the stop per is -- purchases part of the company to plan for boj to keep printing notes and stock is just one of them. manus: let's go back to the dollar in come the possibility of another carry trade reemerging. if i look at the dollar weakness, is the yen risk that donald trump does not deliver ay second half of the year on fiscal plan and the dollar remains under pressure? that is the real risk, or part of the risk, isn't it? takuji: i wouldn't say that. riskarry trade could cause if it becomes excessive too fast. but the bank of japan's primary is to get things that are not above anything. it's great opportunity to let the end we can.

. >> and on the heels of aaron judge's home run derby win last night, a new etf is hitting the market and involves baseball and the three other major league sports, too. we'll talk about tips makeup and the sports rhett van behind it ceokh out to the show on fabo, twitter or on facebook what do you think about all of this you're watching cnbc, first in business worldwide look at me... you used to be the "yes" guy. what happened to that guy? legacy technology can handcuff any company. but "yes" is here. so, you're saying we can cut delivery time? yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. >>> more than 23 million people in rural america have no hack ses toss broadband and micro

scarlet: you looking at a broader sector etf, one that narrows it down a bit. xli has a lot of different industrial companies, including some of the transportation companies. then you get much more specific with the xpn, which just focuses on transportation. it's down 3.4% today, in large part because of earnings from a host of different types of companies within the transportation industry that were disappointing. let's look at some of them trait it is spread out between the airlines and different other types of transportation companies. hubgroup, it's earnings missing, a trucking company, allegiant travel and forward air, each of them airlines on the smaller sites. all of these companies either missing with her last quarter or their guidance for the current quarter coming up short, for a lot of concerns about the industry. then there is spirit airlines, the worst performing airline or transportation stock, for that matter, and today session. spirit airlines, the low-cost airline, coming out with numbers that miss, but also there's a lot of concern with this a

they are going in opposite directions etfs are winning the day right now.me that people are going to be talking about. whether or not this kind of herd mentality investing ultimately ends poorly for some of those investors out there, guys. back over to you. >> dom, in fact, it reminds me of the op-ed in the journal a couple weeks back, had a couple of professors from the university of chicago law school, they were urging to take a step back from governance and even abstaining all together and this, of course, after some of them had a hard time whether to back activist campaigns or not and today's vanguard's ceo bill mcnabb was responding in had a letter to "the journal" when he said they care about good governance more than anyone else, the ultimate long-term investors before they own stocks forever. therefore, our voice on governance is the most important asset we have in terms of protecting client interests. does this blog of active funds stand in the way of trying to push for better performance, or should their voices be herd as well >> they obviously ha

reasons why it remained at low levels and has nothing to do with risk attitude, more of the role of etfs, role of central banks. role of systemic trading taking place on a daily basis i think going forward market time is very difficult to find the actual spikes in volatility, but going forward for those investors don't feel comfortable with directional trade should start looking at the market and look at strategies and ideas to mitigate that risk. >> we are nearly out oftime. let me get your call on your favorite asset class. >> favorite asset class are the european equities on the bond market that's the best buy for investors going forward. >> terrific. thank you very much indeed the chief investment officer from dolfen joining us now. >>> norsk hydro is giving the business value of over 2.5 billion euros. it was formed in 2013 as a 50/50 joint venture between the two firms. they will now be fully integrated giving the norwegian firm an exclusive foot hold in the market and finished products >>> carillion plujed in early trade. the company issued profit warning and suspended dividends.