for "nightly business report," i'm mike santoli. >> time to take a look n at some of today's upgradesnd downgrades. we begin with video game take two interactive which was downgraded from outperform at bmo capital markets. the analysts there cites higor expectationsn up coming video game release which it ys uld disappoint. price point, $116. the stock fell a fraction to $113.26. >>> meanwhile, first solar shares were downgraded to neutral from buy at bank of americly the a cites china's decision to suspend construction of new solar farms and to cut subsidies. price target now63 and that stock fell more than 5.5% to $58.24. >>> and bank of america is also making a call on weight watchers,pa rating the c a buy in new coverage. theou analyst says the stock rise another 20% from current levels. the price target is $95. the stock was up 8% to $85.93. petroleum ccidental were upgraded to buy from neutral at citi. the analyst cites rising oilpr eds.to the closed up a fraction. >>> the woman who created an iconic accessories empire that made her name synonymous with trendy handbags was found

tly business report," i'm mike santoli. >>> can a quintessential american brand ride out a political storm? >>> in kansas city, missouri, i'm morgan brennan. in the american icon cross hairs of the bigger global trade debate. we look athe rough road for harley-davidson coming up on "nightly business report." >>> listen to this. a s figure salary in san francisco is now considered low me. that's according to new figures from the department of housing and urban the threshold to qualify for low income assistance for a family of four is now $117,000. the highest in the nation and in may the median homerice in the bay area hit a record $935,000. >>> lyft is beefing up to bitter competethe likes of uber. the ride hailing company has now rais $600 million in new money from investors and get this, that now value that's company at $15 billion. that is double the value from just a year ago. uber plans to go public sometime next year, but lyft's ideal plans are less certain right now. >>> harley-davidson has come under fire from presidentterump announcing plans to move some production overseas.

. >> i'm mike santoli. brian sullivan is on assignment today. >> we're looking for a big historic moment this morning this is a live shot in singapore where, as we said, we're waiting for the secretary of state mike pompeo to come out and talk to reporters about what's on tap for this day an historic meeting between president trump and kim jong-un of north korea the first time that the leaders of these two nations will have met. a lot on the table it seems like at this time that the united states is somewhat downplaying expectations i think the president set the tone this morning and saying that he is expecting a lot of excitement in the air. >> exactly high expectations because of this one on one meeting. the results are that we're not expecting breakthroughs but coming also on top of a lot of news over the weekends for markets to catch up on the world is kind of watching. the u.s. markets and vice versa right now. meantime, let's get a look at the setup of markets ahead of the historic summit. futures actu

we're going to go back to pricing in is my point >> so we want to take a look we want to bring mike santoli back in with us, who has an interesting take today on some things you should be watching. three things to watch, which could be next on wall street's worry list mike is back with us from the stock exchange mike >> and scott, i want to emphasize that i'm not suggesting that these are imminent concerns, that these are risks that are going to present themselves quickly as a matter of fact, i look at the market right now, and i don't really think it's all that complacent relative to what we know right now, relative to the fundamentals however, when the vix is at 12, and things have been going right for a couple months and the story lines have turned a certain way, as a matter of discipline, you want to sigh what could the next scare be caused by. i think a few things one is that this goldilocks feel starts to turn goldilocks really for the last two months, with the april employment report, has been the rule very good u.s. growth, but a little bit of instability overseas let yields come do

i'm carl quintanilla with sara eisen and mike santoli markets are going to close the quarter on an upw. dow up 223 led by nike but also good action in banks, industrials and oil. >> our road map for the hour begins with the markets on this final trading day of the first half of the year look at laggards and leaders and what to expect for the rest of 2018 >> nike beats the street off the back of stronger growth in the north american market for the first time in years. we'll look at the company's surge as it leads the dow this morning. >>> and finally, financials surging and snapping a 13-day losing streak. why banks are feeling less stressed in today's session. >> first up, more economic data to chew on rick santelli for breaking consumer sentiment rick >> yes, june mid-month read gets tossed and our june final read the university of michigan sentiment read is 98.2 now our midmonth read was 99.3 so it looks like a bit of a disappointment, and it is. but in the record books, it's actually higher because our final read for the month of may was 98 even. so 98, now 98.2 is a bit lower than

off the worst levels but still a decline of 1%. >> joins us is mike santoli. supposed to make of all this >> the messages were mixed as michelle detailed there. one thing that was clear is the white house was not seeing the market panic on a given day. they wanted to down plai the immediacy of these threats the thing with the markets is it's not necessarily about trade. yes, the trade tension incremental news yesterday did seem to trigger the downside look where it settled out. if you look at the chart, the s&p stopped going down around this 2,700 level we have a line through that level. so far this year the market has really not been able to get much distance for any length of time away from this level there's no magic to it what's behind this trading range is really the familiar push/pull that has been driving the markets all year very strong corporate fundamentals strong economic data on the positive side. the negative side, fed tightening and the idea other trader issues might slow down global growth as trade flows are threatened and some of the u.s. econo

i'm andrew ross sorkin with michelle caruso-cabrera and mike santoli.it would open off 168 points down. nasdaq about 68 points down. s&p 500 down about 15 points we've got some headlines affecting the market this week the vote had been scheduled friday for immigration bill. also, amazon is going to be offering discounts nationwide at whole foods for members of its prime program. it will roll out nationwide, that's going to happen tomorrow. >>> take a look at shares of campbell soup. follows a report in the new york post saying that kraft heinz may be interested in buying the company. they've been interested in that for some time. everyone said talk to the hand they believe campbells will look at options also says general mills could be an interested buyer as well. >> there have been changes at campbell soup. >>> general electric is close to a deal to sell its business to advent for about $3 billion. the sale could help streamline ge's power division which saw profits fall 45% last year >>> intel being downgraded this morning do neutral at nomura price t

mike santoli on the floor for us the nasdaq sees its biggest drop in nearly two months managing partner, obviously long-term focus on china and mike mchugh, co-founder and ceo, former twitter board member. good to see you both. >> good morning. >> impact on tech. where do we feel it first, semis, cross border, m & a, something else we haven't considered yet >> during the recent development, you see zte stock in hong kong drop down a lot when there's a trade war going on, it will be affected. you can't produce any equipment. you don't have the chips across the board in m & a, you see they tried to invest and buy companies in the u.s and both the chinese government and the u.s. government is putting a hold on that for different reasons. we see slowdown in both areas for sure. >> do you think by a certain point this year, u.s. says china, you may not buy a u.s. company, at all? >> that could happen but with the current administration, you never know and i think the impact on tech stocks is limited, in general. you look at the e-commerce company, amazon or alibaba, they're not as affected b

mike santoli with that mike >> still trapped in this trading range environment.on cnbc.com that looks at the mid point of the year and a very unusual path to what looks like a fairly routine total year return. what's unusual about it? we had the best january every. best start in 31 years then the sharpest decline, fastest 10% or more drop from a record high in 90 years, followed by an unusually prolonged process of repair, recovery and you see right there, slumping right back down toward the middle of the year-to-date range. what does it actually mean coming into today we were on track for an 8% total of the year now on track for 6, 6.5% return, which wouldn't be bad. here is why it feels nerve-racking. it's a push/pull between the corporate. & financial tightening uneven market. many more are under performing than you have out performing on even geographically to the rest of the world is really in correction mode. the u.s. is trying to buck that trend. i think the bulls -- the uptrend is intact but by a thread. you're kind of holding on to the longer-term uptren

"squawk on the street" will be right back >>> dow down 306 mike santoli looking at how trade war fearshe u.s. and china continue to push both markets lower. >> pushing both markets lower but the chinese market going a lot lower than the u.s. market for right now. some could interpret the u.s. market weakness as a little catch down move towards what's been happening in the emerging markets, specifically china. a lot of different ways to cut the equity market. look at the etfs the mchi is basically the msci china index is going to be your -- which line is that that's the orange line it's right in the middle the two largest holdings are ten cent and alibaba. it's really much more a tracker of the mainland chinese economy. yes, ten cent is in there but a chinese construction bank. it's the banks, insurance companies, oil companies that's been where you've really seen the pain. and kweb which is the crane shares chinese internet stock index just as a comparison because that's what's holding up the broader chinese market that green line is the chinese version of faang it's performing okay up

mike santoli is on the floor looking at the recent rally outside of the usual faang names. >> softwarenternet companies. they basically have been a little undernoticed because faang dominates. here are a handful of etfs giving faang a run for the money. faang is mostly so strong because of amazon and netflix. here's strength elgs where the invesco dynamics fund. this is a quantitative model for selecting software stocks. it's up some 25% year to date just behind the collective faang returns. biggest names here, adobe, sales force, intuit. those together, 25% of this. so you see that real acceleration toward the right of the chart shows you the momentum there. also other internet outside of faang. the spdr internet is equal weighted this tells you it's not just those very dominant big tech platforms driving it this is an equal-weighted portfolio. mule soft has been -- that's being acquired by sales force. about 40% is software and services also owns box, etsy and the like small caps have not been able to keep up in the technology area but look at s&p 600 technology sector fund. it's 30%

let's bring in john, chief investment officer with peoples united, also cnbc's mike santoli and mr.an staying rig here is it bluekies for stocks through -- to the of the year, even as interest rates move up >> we would agree with his assessment that stocks can do well and if rates ll move up this year, i hope he's not correct on 150 basis points. that might be dramatic what he's talking about is just rates returning to normal. we think that will take time that will take time for the fed to get there we're in the four raise camp this year. but we think financial markets >> four raises this year, steve. >> he's on the oefrther side of that debate. the 3.5 gives us that some are at 4, some are at 3. first of all i'd like to say that paul tudor jones is almost certainly right because he is a well known fly fisherman and great conservationist, honored recently by the bone fish and trust. >> not to mention a classmate of mine -- is there a macro-link between >> i'm about to make it. no, seriously, the idea that we would have higher interest rates will be fine for the market if it comes al

here on the panel, mike santoli, nancy, chief investment officer at heartland financial, and mark lehmanident of jmp securities biggest winner today chevron and intel the biggest loser. in the s&p, cimarex the winner and biogen the loser mike, we start with you. today's action >> the market has a pattern going that the rest of the world is in a bad mood our markets marked down lower starting in the morning and just slow grind of buying nasdaq up all day, and small caps up all day, and you can talk about that as a trade story or how the rest of the world growth softened up more than the u.s. has, but in general, it's -- we're stalled out here, pausing in the rally, but, really, there's not a lot of selling pressure so far, i still don't think it feels like a market to run away on a wholesale level, but you have to say it's constructive how we closed in the past few sessions >> the constructive tone even though we did see markets lower, s&p's not down too much at the close. >> i'm thrilled given the rhetoric great earnings season, multiples, clearly, but i think even with slowing growth an

i'm carl quintanilla with morgan brennan and mike santoli ceo of business insider and recode's executiveditor, kara swisher. shares of 20th century fox hitting all-time highs, comcast sets up a possible bidding war for the bulk of the company, offering $65 billion, 35 a share for those assets, which includes fox's movie studio, fx, net geo. it it does represent a 19% premium to disney's offer made in december. brian roberts talked about all of this on a conference call last night. >> when i think about fox, it's rupert murdoch, his family and what they've built, one of the world's great media and entertainment companies. their work as strong entrepreneurs and prudent acquirers bears significant similarities with comcast's own history. >> let's start with you, kara. how interesting is this setup here do you have a road map to where you think this ends? >> seems as if comcast is the big bid. it's a lot of money. i don't know if rupert murdoch comes with the deal. you get him when you come in it will be tough for disney to compete with it in terms of money and power to do it that said, rupe

the prompter is back and mike santoli >> great to have you here today. amazing.we came up. >> they fixed it or they told you it wouldn't going to be there. >> was i looking down a lot? >> i wasn't looking at you, i was looking at my scripts. >> if we didn't have a prompter -- >> we would have no words. >> i think the show would be two

brent bill, managing director of the jeffries internet team and our own cnbc commentator mike santolient, why are these particular stocks not just in faang, i would include microsoft as having a nice run, apple has done better than many expected with the iphone slowdown is this the case of the strong getting stronger or is there a particular dynamic at work >> thanks for having me. i think the fundamentals remain exceptionally strong you're talking 20 to 30% growth rates across many of the names in internet that we cover. you also look at some of the traditional sectors that have weakened and tech has picked up the slack. lative valuations on facebook and google are at 12 times, a discount to the internet pee group. there's still room between 10% to 20% outside in many of these names, even considering the run so, overall, i think there's a combination of factors that are at work between tech inflows, which was a record last month, $7 billion of inflows, $26 billion flows in most of that wasn there are multiple factors that are at work right now. then you look at m & a you look at micr

. >>> ancoming up with tech stocks hitting all-time highs mike santoli will bring us back down to earthith a look at what's worrying wallt. the state that's suingacebook, washington attorney general bob ferguson will join us in a few minutes. ayitush we started making wine in 1948... [sfx: bottle sounds on conveyor] today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. >>> tech continues to climb as the nasdaq looks for its fourth positive session in a row. what is wall street worried about? mike santelli is with us on sets >> at the moment not worried about anything much. look

we are trying to put all of it into context what the tech run means for this rally mike santoli has been looking at it >> s&p up 8% in two weeks. a week ago you could look at to this week and say there are some obstacles ahead central meetings bank of japan and north korean summit and, of course, this kind of deadline on the china tariff measures and the market held up really well today when i do think, honestly, it was set up for a rest or reset. what are the things we're telling you that might be the case aside from the fact that we're up quite a lot the leadership was stretched in terms of big cap tech and ratios and traders were looking complacent or overbullish. here we have the trade and tariff concerns. i think serving the same purpose they've served all year which is to provide a little bit of an excuse to keep sentiment in check and to kind of have certain areas pull back a little bit. a distraction and annoyance to investors. it's not a game changer for how this market is going to proceed months ahead or probably how the economy does it. i do think right now the market trend is

. >> i mentioned mike santoli waiting in the wings to join us with an interesting perspective on where we stand right now. he's ourmarkets commentator from the new york stock exchangeyou look at the ma more broad basis, but also this tech revival, if you want to call it that, can be pretty substantial to where maybe yout. >> yeah, i mean, scott, first of all, what it tells you is the leadership groups of the market are intact and they have basically fully recovered. tech, and i wouldn't just say tech i would say orgganic growth, secular long-term grth companies are leading. they led into january. they didn't have as big of a decle, and now they're back to the high you can say on some level, that's posive. obviously, small caps, i don't think there are any particular special bellwether, but the fact they're at a new high is nothing but a net bullish sign as i alss defensiveness and why people are owning tech, because they can find hair on almost every other part of the market whether it's trade, cost inflation, crimping margins. even yields going up, all of these things seem to affect o

mike santoli is down at the new york stock exchange for us >> the context matters a lot here in terms of what news was prevailing at the time when we got this new little escalation of the tariff wars and i do think joe just hit on it, the backdrop is you have the overlay concern about the rest of the world slowing down, just softening up quite a bit, and also u.s. stock market outperformance versus the rest of the world is pretty profound. if you look at the s&p 500 against either the developing or emerging markets, it really has looked like there was a divergence it is coming together a little bit on that. i do think the fed matters her as well. so if you have a fed that seems very resolute in this country, not wanting to give a lot of allowances for saying if there's stress in emerging markets or nervousness overseas, that's really not going to affect our plans. so that maybe seems to exacerbate things. most of all, though, is just the field position of the u.s. market going into this week. we talked about it on friday that we had kind of gone up about 8% in ten weeks, right up to t

mike santoli hasore morning. >> yeah. maybe related to trade i thought we'd look at a few themes over the past month which seem to be restraining the market on a one-month basis, e s&p 500 is almost exy flat have given it up and then yesterday tried to hold our ground near the early month lows but look at the u.s. market, the s&p 500 against the rest of the developed world markets. the efa is basically the rest of the world markets. see how it diverged with that white line, the s&p 500 has been holding up better than the rest of the world it seems it's one of the things that's suppressing risk appetites in the u.s. markets. you do have the rest of the world growing more slowly and maybe more susceptible to trade issues banks underperformance also seems a global story european banks have struggled a lot. deutsche bank also hitting new lows recently. that's something that at least sentimentwise is causing people to wonder about the risk taking environment. i think the takeaway is that it's kind of a sideways market until we

earnings may not be enough to lead the market higher mike santoli has the argument. o, mike. >> it might not be enough for an increase in stock prices we're talking about a dynamic going on all year, which is the multiple compression of stocks in other words, we went from a pe multiple at the beginning of the year of 18.6 we're down to about 16.5 right n now. you see the sharp break in january, and sharp break in prices and rapid increase in earnings goldman sachs suggested this trend will likely continue what goldman did raised earnings forecast for 2018 to a full 19% for the calendar year, but still see only 3% upside for stocks. why is that? the fed is tightening, generally financial conditions are tightening, and markets see huge increases in earnings and say, well, that has to be decelerating from here might be getting to the peak of earnings what's this mean for 2019? here's the deal. we dealt with earnings compression for a certain amount of time. goldman does not see it going further, but there's a push-pull in earnings growth and rates going higher also, stoc

let's kick things off today with mike santoli a look at the tech stocks that have been left behind during the sector's rally mike >> you know, there haven't been that many of them. this tech rally has been pretty well inclusive the nasdaq as a whole is up 11% year to date the s&p sector up nearly 12% and of course those fang stocks have been getting all the attention. even software is a group up 25%. however, you can find some isolated larger tech stocks that have not at all participated in fact, some of them down on the year to date i collected a few of them. and really there's no particular theme except they are mature tech companies that do not have a lot of earnings growth expected this year so whether they are cheap on that basis or not, i think you have to make the determination so this would be corning is down 10% year to date it's not a good looking chart as you might imagine. qualcomm, a lot of issues we know in terms of mergers and licensing revenues and the rest of it. these are all trading at a discount to the overall nasdaq which is at 22 times earnings. the question you have

find out what that is on tradingnation.cnbc.com >>> time for our etf spotlight mike santoli looking at stocks stocks. >> all in play what's interesting about the etf space there is no single fund that really captures everything that's converging here, telecom, communications and media one that is probably the close toast wh we think of as old and new media combined is the invesco dynamic media portfolio. it is up today a lot of these stocks are moving to the upside. these would be more like the sellers. twitter, alphabet, sirius, fox and facebook, are the top five holdings here. i think when you look at the performance year to date it's up 4.3%, it really is twitter and alphabet google's parent that has probably been driving. you want to go somewhere else it's going to be more looking like the traditional telecom area, the vanguard communications services sector fund verizon and at&t just dominated. it's just about alst half of the fund that's going to be the case for a when we still have the telecommunications services sector of the s&p. another one that basically captures that with c

mike santoli >>> more trouble for facebook. talking about growth stocks.under scrutiny for a series of partnerships allowing phone or other devicemakers to access user data julian boorstin has the details. explain this complicated story to us, julia >> "the new york times" reporting that facebook shared data with 60 devicemakers include i including sam zon asung and appe facebook saying the data was simply shared to give users access to their facebook accounts on these devices. facebook's vp of partnerships telling us contrary to the claims by "the new york times," friends' information like photos was only accessible on devices when people made a decision to share that information by friends. this report and the question it raises about whether facebook violated its commitment to -- it made to the ftc to protect user information. and it comes amid potential election manipulation. "the new york times" highlighting political ads masquerading as news stories aiming to influence the california congressional primary election, ads that ran at the beginning of ap

, director of international economics and author of "the marshal plan," ben steele, along with mike santoliiday new yorker today says the most contentious g7 since '79. >> unprecedented this summit is really shaping up to be more a g6 tribunal it's not surprising the president has not been looking forward to it. >> where does -- when macron makes these threats about signing an agreement ex-u.s., if that were to happen, what would it mean? what are the first consequences? >> we are moving in the direction of a trade war, carl it's really quite remarkable, despite the fact the advisers as the villain. trump's tariffs hit america's g7 allies canada will be hit on tariffs with $12 billion of its trade. >> biggest steel exporter. >> absolutely. the eu, $8 billion china is at $4 billion >> mike, you talk to big and small invfteestorinvestors. it's going to work out this is a negotiating tactic it's not in anybody's interest to have a trade war, especially president trump's. is that the prevailing wisdom on wall street? why are they so confident with that outcome >> we are not going to panic about

trade war worries are not the only thing impacting markets, and mike santoli has another look at the six day losing street >> trade at a market wide basis, nuance for the market, intermitten effect, but one of the reasons it has a little resonance is it feeds the other big fears, the slowdown in economic growth or a soft patch in non-u.s. economies, in europe, china, in emerging markets. this is why the market is inclined to be cautious, and i think that the stresses we're seeing in particular in the emerging markets with profound underperformance in the stock markets, currencies also flairing up down there is one of the reasons that i think we're a little bit twitchier when it comes to the trade headlines, but, also, the markets' own field positions coming into the week contributed to the fact we were prime for a backing off we basically had stalled out in a level that we had seen only back in march. you were up almost 8% in ften weeks in the s&p 500 i look right now, if i see the s&p down .4% of 1%, you didn't need trade headlines to get the s&p down .4% of 1% after a three-month h

slow growth >>> let's talk more about what is moving the markets right now with bob pisani and mike santoli i think the bulls should be very happy right now the important thing is we saw the last half hour, we moved up a little bit i think that's partly in response to the news on the tariffs, 800 to 900 instead of 1,300. that's generally better. but more importantly, the fed yesterday, all right, mildly hawkish, four rate hikes instead of three and a very, very modest reaction i think this would have happened six or nine months ago, you would have had a much more negative reaction overall. >> i think it's fair that the market definitely is kind of won by hanging around the flatline for this week, essentially absorbing these messages that generous monetary policy is not going to be around forever you're seeing a dollar rally you're seeing the treasury yield curve flatten even more today. so far, stocks okay with it. banks a little bit weak. i just wonder really if it's more about the position we're in got up 7 % or 8% in 10 weeks, not too far below the march highs and now it's a logical time

mike santoli, you wouldn't think markets are worried about a single thing >> yeah, that's right.nd i would not make the case that at this very moment based on what we see in front of us the markets aren't particularly worried and that is probably okay i do think that markets have shown some stability, they have come to terms with some of the trade issues and some of the other known challenges that have been out there for a few months. but i've decided to look at three potential things that become ae and maybe causes another excuse for a little bit of a setback or a gut check for markets in months to come one of these is what if gold goldilocks goes missing. we've had a run of data with good economic growth but not necessarily the same overheating risk we saw in january is that changingight now we're talking about labor shortages and bottlenecks in logistics. and number two, if the fed decides to look at t tightness inonditions in the united states andaye still have a potential fourth rate like this year on the table, the market o pric o ia hurry last week,aybe price out third, th

what is behind the slump let's ask bob pisani and mike santoli. >> i think the big thing here, second half of the year, clarity is not quite as great as it was say on january 1 so five things that i'm identifying for the future that is a little bit of a worry one is clearly the trade impact on earnings particularly in materials and industrials and technology and then we've got the flatter yield curve that is essentially taking out banks as a leadership group for the last several week. and then we have the dollar index up 6%, it is killing emerging market stocks and then we have the slower global growth first in europe where earnings are in the mid single digits. 5% in europe right now slower growth. and of course we've seen the slower growth in china and we've been talking about that, china down 20% this year off of its highs. >> to me the big explanation for why we've seen pressure is mostly it's come from overseas currency pressures as well it actually feels slightly as a milder version of the second half of march. that was toward the end of a quarter, the fed that just raised rates

joining me on the panel to talk about all this, we have -- well, we have mike santoli, denn berman, andere. let's go to leslie picker because we have news crossing the wire at this moment. it involves our parent company as well. what's going on with comcast >> that's right. this is a highly anticipated announcement from comcast. officially throwing its hat in the ring for those fox assets. now, comcast the parent company for cnbc writing in a release that it's bidding $65 billion in cash for fox's film and tv studios regional sports networks and movie networks comcast is looking to outbid disney who has cited its own stock deal for the same assets they say this bid is $35 a share. about a 19% premium to that of disney's offer a court decision paved the way for today's move by comcast. the judge's approval of such a large vertical mover particularly in the media world. gave more confidence that an acquisition of fox's assets would also pass antitrust muster back over to you >> okay. thank you ve muc again, just crossing the wire at this moment, comcast as was expected is going to make a

what trade fears the market's coming back today as investors focus on economic data mike santoli joins the new york stock exchange. i think we're tempted to say that but you take a look at industrials and financials, they're still down sharply over the week >> it's not a comprehensive recovery although i would make the case that even yesterday's declines in the market were muted relative to the prior times we've had one of these shocks of fresh new trade tensions in fact, i think we have a chart showing -- that compares the drops on march 1st, which is the president first floated this deal on aluminum tariffs and then april 6th, the aggression against chinese trade restrictions both of them saw sharper drops of 1.3% to 2.3%. this goes along with the idea that over time, the trade issue loses its power to surprise investors and i think over time, the market has an ability to just kind of digest the potential implications and put them into context. it seems like more of a distraction and a bit of an annoyance than it is a big factor the pattern has been you have one of these volleys out

the prompter is back and mike santoli >> great to have you here today. amazing.hey fixed it as we came up. >> they fixed it or they told you it wouldn't going to be there. >> was i looking down a lot? >> i wasn't looking at you, i was looking at my scripts. >> if we didn't have a prompter -- >> we would have no words. >> i think the show would be two hours and 50 minutes >> or 4 hours and 27 minutes >> exactly there it is. >> we have not had a prompter all morning. they got it fixed just in the nick of time >> and the printer is fixed. and the new york phonebook is coming out what is -- >> earnings report sorry. u.s. equity futures, nasdaq looks like it will be down by 1 points it did close up yesterday. dow futures are indicated down by 95 points the dow has seen seven sessions in a row that it has closed lower. that's a long losing streak. >> why did we say the nasdaq was going to open higher >> maybe earlier this morning it was looking like that. fang sto f.a.n.g. stocks have been on fire s&p futures down by 17 1/2 points let's look at what happened overnight

mike santoli joins us with more to explain what he sees. >> well, what i see is a market that was a littlerimed to look for an excuse to back off, right? yes, obviously this was an incrementally negative news about the additional products, chinese imports. also the context matters which is we're a little bit worried about a global soft patch not really in the u.s. but elsewhere. so it feeds a little bit into those fears we already had moving out there the other part of it is, the rally had kind of stalled. even though you had good intra-day rallies the past two days and also this trade measure is not discernibly part of an explicit negotiation that's what we've heard all along. this is actually atactic we went from one set of products without an negotiating to let's look at more so if it looks like kind of raw, kind of aggressive moves, i think the market doesn't like it a lu little bit more. >> i look at the situation where it's harder and harder for both sides to emerge saving face. when you ratchet things up like this, someone is going to be perceived as a winner and someone perceived a

mike santoli joins us right now. >> becky, good morning i think make a rest makes sense here it's kind level we haven't been above since march. as you said, just 3% below that high in the history of the world, we've only been above this level for two weeks which is the last two weeks of january so i think a lot of indicators say a pause makes sense. but i think the key message is all the obstacles that the gain saying wow we got the fed stacked up this perhaps a tariff announcement and the market has held together i think that tells you the longer term uptrend has really remained intact through this whole period multiple months. i think it's uneven. off 4% year to date gain in the s&p 500. the best sector is tech. it's up 14%. only four out of eleven are up year to date it's a selective market. so maybe it still feels like a summer range but i think it resolves most likely to the upside >> still willing to do this to try to call the market on a short-term basis >> oh. i don't think it -- you know, i don't think -- >> who would ask you to do this? >> no. nobody asked me. somebody asked

rising yields also fed tightening what other challenges could be facing markets in the near future mike santoliore. >> good morning. yeah those fears of course could flair up again but the markets have assimilated those in large measure i do think that, obviously, it's not going to come as a surprise if we get more trade aggression or if the fed tightens again but here's a list of things with the market feeling more comfortable, obviously, perhaps today getting to a three-month high in the s&p 500. what you might look out for that isn't quite as obvious one of those things, i call it goldilocks goes awol also without a lot of interest rates coming down a little bit in terms of bond yields. if we actually see a bit of a flare-up in this idea that the economy is running tight and labor markets, logistics, look at the ism reports all that stuff would lead to potential risk number two which is the fed is perfectly happy to keep a fourth fed rate hike. that would perhaps get a signal next week about that the ecb is also meeting next week so a lot of things are out in front of us. then a global finan

focused on the long term instead of the short term joining us is cnbc seniors market commentator mike santoli and our guest host, steve grasso, a cnbc market analyst and director of institutional sales at stewart frankel joe, first i want to talk to you. because we were joking around about this off air you made the point of course, ceos don't want to be held to quarterly guidance. >> they would like to be running the private companies and not dealing with the shareholders, but the shareholders want to know as soon as possible and we always talk -- we want as much information as we can get as much transparency as we can get. i'm not sure whether -- i mean, why do quarterly numbers at all? why not report results twice a year instead of just saying don't do forecasts to hit them, why ev even -- if you take this to the logical conclusion maybe report earnings once a year so you can do everything you need to do but i can see why ceos with the hat they're wearing with the public company, like i can definitely understand where they're coming from. it does make sense but you also - >> to be skimping

army chorus >>> and the nasdaq scoring a record close first time in awhile mike santoli is joining usdow theory to be the nasdaq because i -- >> maybe the semiconductors. i've heard the argument of those with industrials >> because the transportation is still important things need to move technology is important too. i'm wondering whether this means that the other averages, we loo. >> i think pointing in that direction, one thing is the leadership of the market is intact obviously the nasdaq had a shallower pullback it held up better. if you look at the chart that got you back to 7,000, it shows you it's the same large growth stocks also leading us right now. i will point out it means it's a more selective market. it doesn't mean it's too narrow. but only tech have outperforme the market sincearch when e nasdaq last made a new high. the top five stocks in the s&p 500 are also the biggest five 15% of the s&pnasdaq right now 25% of the nasdaq composite. i think it also means for the broad market, the s&p 500 is right up at this level 2,750. a lot of people have been watching for awhile.

business joining me now, our market commenta commentator, michael santoli topping the dow, dupont, macy's on s&p, and carnival lagged. mikeagain, with an incredibly strony. overall, what's the theme here >> well, the overall market paused at exactly where you might expect it to s&p 500, mentioned 2750 level. we were right there march 15th, closing there, fell very hard, and we've not been ablto retain it. market up 6% in nine weeks close to 3% year to date, so it's a question of, can we get just past the technical hurdle, but underlying that, you mentioned retail anything leverage to the consumer or technology is working well economic data domestically is very, very strong at the moment, and so we had this weird little lull, and now it's all coming back when it comes to the retailers, it's just enough to go around. >> and they got so bad, so beaten down. on that note, the bureau labor statistics found for the second month in a row, number of job openings in this country exceeds number of available workers. 6.7 million openings, 6.4 million workers available. what do you think of that? >> i think the economy's very strong

we have michael santoli, and john augustine from huntington private bank, and sandy vallier from the vallier balanced fund, and, mikey, there was a lot of end of quarter -- >> a little bit of noise >> yeah. >> quirks in there, and not a lot of noise on the trade front. that helped. >> right that was clear it was more relief than enthusiasm that was driving us, even at the highs of the day we basically had a little of pressure release from the emerging markets they were very stretched to the downside the dollar came off, all the areas including the banks stretched down as well, got relief, and then the markets kind of took some part in that, but not necessarily. >> mike, when it comes to the last half hour of trade, look at the intraday chart, the picture is not attractive, we lost momentum going into a week where volumes are down, and any slight negative sentiment we get next week is accented >> it probably will. i think because it's the last day of the quarter and you have a major index rebalancing going on -- i don't want to excuse it, obviously, shows there's not enough buying interest to keep market above the le

poi 8 points michael santoli is here, stephanie is here, and paul from the spoke investment group welcome to all of you. mikeis was concurrent with the close, did not move markets too much one way or another. is everything on pause until we learn what happens tuesday >> not just on pause for the markets until this occurs on tuesday. i think part of a very busy week next week. we have the fed and central banks meeting, north korea summit, we have on paper the deadline of the position of tariffs, all coming next week. so i do think there's a little bit of a sense of let's see how it sorts itself out in the next few days, but i don't think north korea proper is a big market the market does not know what to price in better to talk than not talk >> trade stuff, stephanie, seems, talking about concrete, you know, goods and services, talking about tradeable industry, hearing about the effects every day. try to learn what that means to companies, but what do you do about north korea and prospect of denuclearization. >> i don't want to sound glib, but ignore it as an investor, otherwise you're caught up in the moves.

. >>> sticking with the markets, michael santoli taking a look at financials on pace for the worst day since may. can't catch a break, mikepicuous under performer for a while. you look at big names down three to five percent. the xlf is down year to date 4.5%, down 11 days in a row coming into today. this would make 12. only down 4.5% but a consistent amount of pressure. the yield curve flattening does not help. european financials down a lot more than u.s. financials. obviously, that sort of bumps up against larger components. burkesure hathaway is tied with jp morgan as largest holding in the financial specter at 11%. it has been a significant under performer. you see the large banks and regional banks that held up well. banks are okay. huge railroad is exposed to trade. consumer staple stocks have been weak, insurance is not really shining. basically burkeshire may be weighing down financials a little more than the core banking business but not a leadership group at all for this market. >> thank you for that. we are definitely watching the xlf today. let's get over to sue herera for a news update. >> it is a busy news

joining me now is michael santoli, and evan newmark, welcome back, and sandy vilari topping the week is mcdonalds, intel the decliner s&p 500, underarmour led the way. mikewe put a pretty nice session together here at the end. nice for the dow in general, and underperformance of technology and nasdaq >> yes, so a percent and a half gain for the broad market, s&p 500 for the week, upward drift feel today it was dead flat at noon, and just because we've been in kind of mildly bull mode, the market drifted higher going into the weekend. you know, i think we're at the stage in the rally, though, you talk about the tech underperformance where stocks are 15% from the lows. they are up 7.5% in nine weeks that's exactly when you start to see the spread between the winners and losers get a little bit of life. that's why we have a rotation. it's not a big economic signal that says there's trade wars we have to get out of something and into another thing or something's wrong with tech. i think it's really just a function of inaggregate portfolio rebalancing by investo investors. >> energy had a runup and a pullback now it's kind of getting its footing? >> treading

santoli is here, and rebecca patterson, and jj. welcome to all of you. a nice day for retail, and ge there, again, down nearly -- look, mike what's the low for ge now? >> low is -- was under $13 >> all right not there yet, but just can't climb back underarmour the leader in the s&p with a 6% gain nektar therapeutic, a disappointment, dropping 41% we talked trade issues it does not feele anything macro weighed on the markets today. >> not much, but i think last week showed you that sometimes when the market is grinding awaysideways, it needs a little bit of a slingshot and needs something to set it back, get a little bit of fear in there, and what doesn't really hurt, what doesn't really create a lasting mark makes you feel like, fine, we absorbed that, can go ahead, and i think that's what you are seeing right here. treasury yields came off the highs, so it seems like, okay, liquidity is looking better. credit markets look good and then let's buy large cap growth because that works in a slow and steady world. >> look at the 10-year like you said. >> exactly some of us remember the '90s, global concern keeping the fed patie