we'll talk to you soon kevin, o'leary, my thanks to you as well. we'll see you back here shortly. do you want to make a point? >> yeah, i can never fault anybody, kevin made a lot of money, the trade is great. i would say in front of new products you've got some time to sell it's going to get crushed until between and end of the september. i would have hung on to it let's not forget a lot of product sales are driven by financing from the bellcos, right, the telephone companies if they change their plan, then apple sales will suffer undoubtedly. >> remember when they did and stopped the substantiation -- >> well, they changed the plan >> yeah, changed the plan significantly. and now look where they are. they're the one financing the phone. >> historic day as apple becomes the first company ever to traus trillion dollar. er is herrera with the headlines. >> i do. here's what's happening at this hour, everyone the white house said president trump received a new letter from north korean leader kim jong-un. trump tweeting his thanks to kim for the nice letter. >>> a senior turkish offic

that's more of a pete trade. >> kevin o'leary, what about this trade it doesn't get as much pub as the marquee sectors if you want to refer to tech and financials, even though financials haven't performed, but they're the ones that are always talked about what about these left alone biotechs, health care. thishas been the place to be. >> well, i'm long in pharma big-time because it has all the things i love. tremendous cash flow, fantastic balance sheets, big, succulent dividends, but i would also add to that that there's some really good opportunity in the european pharma, because they're getting bashed every time trump takes a shot at the eu some of them are swiss companies like roche and glaxo and all the rest of these trade at a discount because of the trump bashing so i loaded up on those too. biotech is a different gig i've learned the hard way through all the trials and errors, every time a drug fails if you own that heavy, you get slaughtered. so i use the ibb now i started buying ibb in the hillary bashing days every time she'd take a shot at it, it would trade down, it was a

. >>> and from first to worst, defending stock draft champion kevin o'leary is currently in last placethis year's contest. >> what? >> a little humble pie we will ask him if we can turn it around or should he just hand ov t tpherheroy right now? i don't think he is going to do that the second hour of power begins after this kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. (music) maybe i'm a division 1 athlete. or a father of two. maybe i run marathons. or a startup. or nothing at all. maybe what i do doesn't matter. maybe all that matters...is what i do next. peloton. here's what's on the menu, the unfriending trend. the latest results from facebook and snap showing that less people are joining, and many are leaving. have we hit peak social media? >>> plus, is elon musk's desire to go private a sign that it's not worth being a public company and being under constant scrutiny we will speak with kev o'leary. >>> with the midterm elections just 90 days away we will look at how re

one of baron's and forbes advisers lindsey bell, cfra also with us from lake joseph, canada, is kevin o'learychairman o

he is our teacher and you know kevin o'leary from "shark tank."bout money. you're all parents. we'll give you questions and answer true or false. okay, and your kids range from elementary school to high school. you're going to give answers and then mr. wonderful will tell us >>ou a little nervous. >> i am nervous. >> your relationship with your kids depends on this, okay? all right. here's number one. the first question, give your kids an allowance if they get good grades, what do you think? false. >> very interesting. professor wonderful says it's true and i'll tell you why. >> professor wonderful, yes. >> you want to tie hard work with economic outcome. that is what life is about. that's what you're going to be doing when you're working. you want to work hard and make more. >> i got a dollar for every "a." >> look at you now. >> you're trying to play both sides. it doesn't work, man. i like that answer. here's the next question getting rt job should not be a priority while your kid is in school, what do you- >> 4-4. >> the answer is false. they

the russell hit agnew high kevin o'leary has been a big believer in small caps and joins to us discusstrade and throw in tesla as well kevin, good to see. >> you great to be here melissa. >> small caps caught a bid this year on the thinking that they're more shielded from some of the international macrofactors, the trade issues if the trade issues seem to come to an end or if things become better on the trade front, does that spell the end of the small cap trade? >> no. i'm going to bet and i have continued to stay on this trade, that for the next two years the full impact of tax reform will play out in enhanced cash flows in small caps. because what we have seen now is primarily driven by a deregulatory -- deregulation removal because a lot of the states that were in with california, texas be, florida, new york where the small businesses operator headquartered have had relief of regulations we never talk small things like restaurants and like restaurants in the back and frosted glass that never get on the radar that cost a lot of money. they are moving. and that's why you see the mome

kevin o'leary, thanks to you, as well. >> he has had a good call on small caps. >>> up next, michaeln his guilty plea of violating campaign finance laws. we'll look at whether history says this scandal will impact the market and the economy overall. >>> casino executives are making a big bet on the future of their industry by purchasing their own stock at a rather furious pace. the fast money traders tell us etr u should follow their lead later on "closing bell." , to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud. tdesigned to save you money. buiwireless network siness. whether you use your phone to get fit. to find meaningful, thoughtful, slightly-weird gifts. or just to know which way you're facing right now. however you use it, your wireless bill is about to cost a whole lot less. ask how you g

historically rough month for the markets, here to debate, jim, jon, j.j., and from lake joseph, canada, kevin o'learyn with the markets this the final trading day of what's been a good month for

extraordinary base to start from >> let me ask you, last night on "fast money," we talked with kevin o'learyand he was annoyed they were not giving a higher dividend. he wanted more cash, despite them buying back more stock. you're an owner of apple are you happy with how they're using their cash >> my colleague and i talk about all the time >> you need better things to talk about >> yes, you're right we prefer companies that deploy it into other productive assets. taking a dollar, turning it into 1.25 and taking that 1.25 and compounding it from there. returning capital in the form of dividends is a component of the overall return of the stock, but we would like to see them allocate them to other productive assets. the company can walk and chew gum at the same time with the extraordinary cash flow generating activity. >> active stock management is coming back, isn't it? >> it's been happening all year. we've had an easier time beating the benchmarks i see that trend continuing. it won't be so easy as throwing the lever. >> give us some ideas going forward. what are some things, themes, comp

what's so interesting about this, and i heard kevin o'leary talk about it yesterday. and pete and i talked about it, is that this can be resolved in silicon valley easily. technology giants should be clamoring right now and calling up elon musk, we're behind you and but elon musk has a responsibility and truthfulness and credibility issue to reveal that and that's something he should have done. >> i would think you may be betting that the stock be going the other way? >> why would the stock go the other way, the ceo told me it was 420. funding secured, pete. >> yeah, but the argument there how many times have we had real concrete takeovers, given the price, and the stock is over that >> pete, you have to file within eight days >> i understand that >> listen, we're not changing the rules as we go along >> no, but the market in some respects is placing its vote upon what happened yesterday >> i said this yesterday, the market is saying, elon musk, if you have a full house, show us the cards. do you have the funding or not >> you're also betting to some extent -- >> i'm

one of baron's and forbes advisers lindsey bell, cfra also with us from lake joseph, canada, is kevin o'leary, the chairman of o shares etfs, a cnbc contributor s&p entered this friday on pace for its sixth straight week of gains, now enter these fresh concerns and has us wondering what may happen if things get worse. jim, it's always something you don't eck pecht and here we find ourselves talking ant turkey today as we thought we were onh. >> always something. kind of like my xwofl swing. >> which you dmefr seement zpl how concerned should we bo >> i don't think very concerned. >> it's a really economy, okay but this does feel a little bit more like italy two months ago it feels like any -- just where i was going. if this gets really, really bad, the powers that be, the ecb, eu, imf, everybody steps in and exerts pressure. >> that's great, but there could be market upset between now and that happening it's like the summer of '15. we're worried about china, what the impact is going to be on our stock market now we're in the summer of '18 and here we are focused on everything outside the unit

set this is the strongest earnings performance since fact set began tracking this data in 2008 kevin o'leary do you think? this is one of their explanations why we've seen the s&p 500 move higher here as you've pointed out >> yeah, the earnings have been excellent. everyone's been talking about peak earnings. earnings have been really good, even beyond my expectations. and it makes me think in allocating capital every day, waiting for that ten-year to breach 3% and stay above it. everyone else is thinking where do i go in triple bs there is no reason do that yet the market is toning to grow at the end of the back year with one exception with financials which has been the biggest disappointment in my view because you've got about 7,000 banks and the backlog is they're all going to be merged together and this is wonderful. or rates are going to go up 3% on the ten-year, boosting the optimism in these names. and oats a really interesting situation. >> you're not alone, right it was consensus banks are all going to move hire >> but they killed it in 2016 and 2017 meek, what's your view on the ba

. >> kevin o'leary did a major diatribe on cnbc, hates them he thinks it's a waste for the companies,back to him, he'd rather invest it himself. do you take any position, squall tate tifly on whether or not they are good or bad >> well, i'll leave the moral issues to theolog ians, but different industries may lend itself to more buybacks than other industries from an analytical perspective, companies have a high quality problem which is margins are at record high levels therefore what does one do with the use of cash? most companies the number one use of cash is capital spending and that is a good thing from a -- >> investment, et cetera. >> part of that is of course, dealing with depreciation, but it's also an active sense of where the best investment opportunities. we have capital spending and then you have research and development. so a lot of companies focus in health care and technology, that's more of an emphasis for those companies. then you have some cash m and a, which is david's favorite topic. if we think about uses of cash for growing, more than half of the cash is being s

. >> kevin o'leary still polishing his trophy. >> why do you have a banana in your ear >> happy anniversary paris france. >> havana, cuba. >> athens, greece. for cnbc in new york. >> where are you going >> applause in the news room, by the way. >> can we show the newsroom? everybody is clapping here. >> thank you, guys. thanks. i promised myself i wouldn't cry. i am going into the world of corporate governance. i will join the board of directors in a company in texas. tom hicks is on the board, well known investor, former head of dallas reserve. i thought it was a good company to be in. we talk so much about corporate governance. we criticize it a lot. i have thought the next step maybe should be corporate governance because boards need help. i think they need help with messaging. and how does whatever they are going to do play in the media and how it will be received. >> this board will get a -- the conversation is not going to air. what was your favorite story or the one you are most proud of? >> the greek financial crisis was an incredible challenge to try to explain. economists will alw