get the santelli exchange. >> unbelievable morning.chanchange we're down several basis points on the week. when you consider we had a settlement this week of 2.78%, it's a rather incredible week. may jobs report was solid. if we look at it, 223,000 jobs, much more than anybody is expecting. if we look at the unemployment rate, 3.8, average all the earnings, they were pretty good. what bothered me was that the pool of workers that are not counted anymore -- we'll call those the permanently unemployed they have the ability to work but they're not working. that reached 95.9 million. if you look at the unemployment rate of 3.8%, that implies 6.1 million unemployed which means we have 102 million people that we need to work along with to create better opportunity. now, i talked with ed lazear today. everything about this report is good i don't mean to besmirch the report in this regard. this administration is not looking at entitlements. we're all looking at debt. we have options every other week that have grown in size. these people need a

rick santelli and the santelli exchange good morning, rick. >> good morning, carl.the next eight days, there are so many major policy meetings going on in so many different areas and all roads lead to potential market moving outcomes consider this friday and saturday up in the great north in canada, we'll have g7 parades for the president's team as they go to canada we know all the issues going on there. then, of course, we transition into the 12th. singapore, north korea, huge potential implications how could that have a transition into the market? remember when things weren't going as well on north korea, how all the talk was supposedly being a downward force in the markets? one would only think that should it go in a better direction, having a meeting at all at least gets you aiming in that direction that that could possibly be a positive, potentially a bigger positive, depending on the outcome and, finally, oh, my gosh, wednesday, thursday, friday. so wednesday we have the second day of our meeting, and a presser and a rate decision, potentially. ecb, presser th

is there with the santelli exchange.>> hi, mike. it seems so incongrunt to look up and see twos are unchanged, tens are down one, 30s are down three. this is after maybe not stratospheric but up 4.6 to 4.8 for gdp. maybe it won't come out at 4.8 but others that try to handicap the gdp number for q2 are all crossing that 4% threshold there's some time left maybe we can snatch victory from the jaws of defeat but it still seems like solid growth so what's up with the markets? to me, it's an ongoing story that isn't going away. matter of fact it's going to get much more difficult to my opinion to handicap. okay it's domestic versus global economies impact on the markets. you look at what we're talking about with regard to our gdp then look at what's going on in europe, in japan and it just doesn't fit. so, it's very difficult for the u.s. to leverage up its growth in a global fashion the way many thought we did for a while when it was synchronized growth i remember being on record saying that the u.s. turned the market many

where rick san telly has the santelli exchange. >> thank you, jon.the trader favorites. let's start with the ism this series started in july of '97. i would like to throw up on the reen a chart of how all that time has fared with regard to what these numbers have been released at, what levels what i want to draw your attention to is the fact that on that chart, going back to the very beginning, there's only three reads 60 or higher and the last, i believe, it's been a while the last is probably around '05, i'm guessing the point is that we've been very close january was only a couple of decimal points away. and today's number was 58.6. so even though that isn't at 60, these very lofty reads there was one asterisk on this report let's throw it up on the screen. supply shuttering because of lack of drivers and equipment causing delays in multiple modes of transportation. the activity to adjust to this is not causing stockouts yet and we are increasing inventory levels in anticipation of worsening conditions there's a number of market moving potential i

rick santelli.. >>> when we come back, we're on triple crown watch at the belmont stakes live at the track next more "squawk" after the break. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com save up to 15% when you book early it's pretty amazing out there. the world is full of more possibilities than ever before. and american express has your back every step of the way- whether it's the comfort of knowing help is just a call away with global assist. or getting financing to fund your business. no one has your back like american express. so where ever you go. we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it. but we're keeping a close eye on the g-7 summit kayla tausche is in quebec city. ameamon javers in washington how is the schedule shaping up this morning >> there has been, carl, a postponement of the

and get the santelli exchange. >> good morning, carl. we have a lot of central bank meetings and every one of them is going to important fovestors and potentially modifying their investing strategies, but there's one that stands out and today's market reflects that it's the eand why does it stand? well, not many times do we get such a good glimpse into the psyche of investors as we have the last couple weeks and i guess a thank you to italy is in order, not for their misfortune or their debt or some of the complex issues they face but for how their markets have behaved and wh other markets did because of that. as their rates started to fly, and the thumb on the scale started to lose its downward pressure and, of course, i'm referring to how the ecb - when they lend against it and give the bank of italy money timately there'ses a problem out aren'predetermined.and the and once that happens, a variety of things start to happen. we see investors run towards safety, pushing yields and u.s. treasures and bunds down thatn't happen today as the

with a special santelli exchange.g >> thank you, carl yes, i would like to welcome dr. jason furman, former chief economic adviser to the president. of course, president barack obama. dr. furman, thank you for joining me this morning. >> thank you for having me, rick. >> triple crown has been a big topic this weekend and i think as a market person, we have the triple crown of central banking this wednesday, thursday and friday with the fomc, the ecb and the bank of japan. doctor, thiss a time where central banks have to recalibrate away from crisis-era policies, but that recalibration could be one of the biggest fundamentals to affect capital on the planet. your thoughts? >> these central banks are all really good at never surprising anyone and they do their jobs well. they let you know in advance what is going to happen. i'm not expecting any surprises this week. the fed will raise rates none of them will indicate much of a change in response to italy, much of a change in response to red hot jobs numbers we have here

and the santelli exchange.ing, carl. you know, investors making a profit is pretty high a priority politics is important to everybody. we can tell because everything is so political. but investors seem to always find that magic place where they can be cognizant of what's going on in politics and even have veg opinions but when it comes to their investments, they need to kind of clip away all of the peripheral issues and concentrate on the reality they can touch, not the possibilities they can't i think trade figures prominently in that. before we can get into that discussion let's look at the facts that we do know. the ecb has some statistics i find interesting if you look at goods and services with respect to its relationship to gdp, the eurozone, about 27% of their gdp is goods and services. if you look at china it's about 21% goods and services you look at the u.s., it's about 12% with respect to the interdependency issues so, obviously, we have a higher tolerance for pain just look at the generics we've bee

we'll talk to top anti-trust lawy lawyers in a few moments rick santelli, flattish action market dayhat are you watching? >> yeah. no i was watching that data, cpi headline, year over year up 2.8 the biggest since 2012 japan had a big headline read at 2.7. central banks, this could be a big week e eal talk about a tt te llhaafr thbrk. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sur at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade >>> top of the hour, famed investor paul tudor jones that stocks could go crazy at the end of the year even if rates continue to move higher. plus, st

go long™. ♪ >>> let's go over to the cme group and check in with rick santelli and the santelli exchangemorning. i'm going to have some fun on a topic that's been on my mind for a long time and on many viewers' minds as well. what do internet sales and china have in common a lot more than you think. a lot in common with tesla acres lot in common with ethanol, ride sharing, uber, lyft. what subsidies gone wild. now you can call them any other names, but they are subsidies. the fact that we're going to charge tack taxes on the intert sales. let's think about how all these things started many of the issues, even china and its relationship with the advanced economies, they wanted to welcome china in. world trade organization help them establish the type of economy that could take care of its well over 1 billion population with regard to the internet targeted temporary assistance to get the internet to grab on, to take hold, to create a wonderful new industry electric cars, ethanol government's heart, for the most part, is always in the right place. the problem is that temporary, targeted ass

but first rick santelli, away are you watching today >> i'm watching how the markets in general haveed to all et three of the big central bank meetings this week and some issues that need to be discussed. we'll discuss them right after the break. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you shall lgsd ♪ there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wai

experience amazing at your lexus dealer. >>> time to join rick santelli who has the santelli exchangeelcome my guest. always great to see you. thanks for joining me. >> you know, the italian volatility is coming back but not in the same type of dosage. we see upticks in yield in aly. maybe some of us should give a big thank you to italy because that big sell off pushed a lot of of the negative securities in italy particularly the two year and three year back in positive territory. as a matter of fact, a recent reuters article and others have pointed out the newest info shows in the euro zone 36% of securities are negative versus in may and april current amount to 2.6 trillion euros so we call it $3 trillion. your thoughts on what that means, who takes the hit and will the ecb still give full collateral value to their paper. >> i do like to see positive interest rates. i wish it was more of the nature of the ecb getting out of negative deposit rate rather than a market hissy fit getting us out of negative interest rates. i think it is a precursor of a lot more volatility in the europea

the lowest prices. >>> busy fed day let's check in with rick santelli and get the santelli exchange hey good morning, carl. you know, it should all be so easy we see inflation ramp up, we look at a good deal of the rate structure on the curve below what many perceived the rate of inflation to be, and, of course, our currency, albeit off where it settled last year, higher on the year, settled around 92, not up by much, especially when one considers how far down the rate increase and, of course, balance sheet reversal route we are on versus other central banks and we know we live in a globalized central banking world where policy washes ashore of other countries, even if it is unwelcome to some extent. let's take yesterday a today you know, yesterday we had hotter cpi, especially some of the year over year numbers today, pretty much everything from top to bottom on ppi was hot, from the month over month changes, headlining out to the year over year numbers but yet, it looks to be the ninth day in a row we will set until the 290s we had a stretch in february and march where we had a long s

appreciate that, rick santelli. let's get to sue herera. >> good morning everyone.is happening at this hour. president trump departing singapore following his histor summit with kim jong-un saying he was leaving early because there was nothing more than could be done. while details are vague about the de-nuclearization on the peninsula the president did say he intended to end joint military exercises with south korea. >>> here at home a nearly 24-hour hostage standoff with police in florida coming to a tragic end. orlando police say all four children being held and the suspect are all dead. 35-year-old gary lindsay jr. shot an orlando officer sunday night before barricading himself and the children in his apartment. those kids ranged in age from 1 to 11. > a prescribed brush fire in utah that got out of control over the weekend and destroyed two buildings continues to spread. the trail mountain fire has burned more than 2,600 acres. it's only ten percent contained. >>> and it is former president george h.w. bush's 94th birthday eight days after he was released from

rick santelli here i'd like to welcome my last guest of the week, dr.anks for joining me. >> my pleasure >> the big topic on this trading floor and a lot of the pieces that you've written is about global growth. at one point synchronized. now it seemed to be reversing. synchronized shrinkage, so to speak. my question and the discussions revolve around are bad policies and lack of reforms whether in europe, japan, china, are they just destined to roll up on our shores or can there be some divergence in the growth metric from a global perspective? >> well, i think if you go back to the end of last year, there was a view we'd have a synchronized recovery this year. n that's just not happening. europe is slowed rather abruptly and unexpectedly so. japan has contracted china's been very weak the u.s. has had decent growth the second quarter was certainly a good quarter overall, but i think it's the peak rate of growth for the year and we'll see the u.s. growth trail off as we move into the second half and that means by very short order we're going to have a

carl and jim, back to you. >> rick santelli in chicago.e back, eli lilly's david ricks with big pharma. dow holding at 76 and the s&p 2784 with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com >>> i'm not going to get tel you there's not friction in the system there's a lot of friction in the trading system right now but ultimately i think the goal that the united states wants is is clear and i think it is the right ultimate goal. the right ultimate goal is that every country should lower their trade tariffs, lower their barriers, get rid of tariffs, get rid of barriers. >> that's gary cohn talking this morning. also commented on whether or not tariffs could offset tax reforms. and on the president's tweet on that jobs frida

rick santelli thismorning. >> we're watching the selloff today.quite to session lows. the dow has gone negative for the month, and bob pisani has been keeping us honest >> they're selling trade names and momentum names double whammy. take a look alt the big material names. mosaic, all the big names in that sector, dow dupont, a dow compone component, also down noticeably. with the big industrial names the other group moves to the downside, freeport newcore the industrials, logistics names like c.h. robinson as well as caterpillar and boeing to the down side. fang plus, high momentum stocks you look at, baidu, alibaba, twitter, nvidia, all also to the downside finally, one of the worst day yz have seen in months of the semi-conductors. probably going back to late march, early april, declines of 2%, 3%, even 4%. back to you. >> thank you very much we'll keep our eye on all of this with the dow showing pronounced weakness. s&p down 40. not quite to session lows. >> sometimes it's hard to figure out what people are selling for what reason. it's intere

dow down 249 let's get to rick santelli with the santelli exchange.. >> good morning, carl. rick. >> good morning, carl. thank you. i would like to welcome my guest from newberger berman. what we just heard was breaking news, maybe reports of exactly how much the u.s. will contest sharing or allowing companies to invest in certain strategic areas, maybe a fake news story you know, it's very difficult, even the news we know to be true coming from the president and administration, it must be very difficult to service investors at this time. >> the trade issue is a challenge. july 6th deadline for the 50 billion. our volatility will keep rising over the next week we have the mexico election coming up over that period of time, too. the introduction of the threats, $250 billion tariffs, car maker tariffs, it's a risk that's been there but it's percolating more into the market. we're reaching a deadline where we can punt on it but we think something is going to end up happening one way or another. >> so hard to get bearings i see them quoting chinese news s

rick santelli.d morning, rick. >> good morning, carl. another very, verynteresting day in the fixed income and fx space. look at one week of tens you can see we have moved back into a zone. that's pretty good resistance. and today, in particular, what was most interesting is the data wasn't good today and rates are up and yesterday the data was solid and rates weren't. granted we did see that easing of the trade balance, but truly something else is going on and maybe what is going on is looking at two day of bunds. they're up seven basis points. when bunds are up, you would think that things going on in the rest of southern europe like italy would see their rates moving in a particular direction. most likely the downside that is not the case as a matter of fact, what we're seeing is rates are moving up in italy. now bunds are up 7 look at the italian two-year it shot up look a longer chart of the italian 10-year. it starts around the third week in may the reason i picked it, it gives you a nice grap

rick santelli with breaking economic data. yes, good morning, sara our april read on factory orders expecting down 0.5% to 1%. we were down 0.8%. last month revised up by 0.1% to 1.7. now we can tell that aircraft and transportation may have weighed on that number because extransportation factory orders is up 0.4% let's look at our financial april read on durable goods. the midmonth read was minus 1.7. what did we end up with? minus 1.6. that's now in its place and the weakest number since january's minus 4.2. so the second weakest of the year let's strip out transportation and it also improves up to 0.9%. if we look at capital goods orders, nondefense aurcraft, a proxy for business spend, it's up 1%. if you look at shipments versus orders, they're up 0.9%. we are up a basis point at 292 in tens. dollar index down more than 0.3 cent >> still up 200. rick, thank you. >>> our road map begins with microsoft m&a. the company announcing its plan to acquire github and microsoft's ceo satya nadella will join us first on cnbc >>> plus

rick santelli with the santelli exchange happy friday >> happy friday. thank you.'d like to welcome dr. william poole, former st. louis fed president and ceo. bill, thanks for joining me. first time >> great, rick i see you often on cnbc. thank you. i enjoy it you always have something good to say >> well, that's a great compliment coming from you i had everything outlined i thought we'd talk about and right before we went on you said you had a topic that would be very interesting to discuss. nonmonetary policy bill, tell me what your thinking on nonmonetary policy that our viewers should be aware of >> think about the ecb and the problems in europe can the ecb fix the crazy italian politics no think about the problems in japan, an actual decline in the workforce and the inefficient regulations in japan can the bank of japan fix those things no and now we've got, in the news very much today the trade restrictions so can the federal reserve do anything about the trade restrictions just announced? for example, the restrictions will put a big tariff on imported diesel

save up to 15% when you book early at hollidayinn.com >>> let's get over to rick santelli for the santelli, rick >> good morning, carl. i'd like to welcome dr. john silvia thank you for joining me today >> sure. >> listen, i'm going to throw a curveball at you i love cars. i love everything cars and phil lebeau's great at giving us news on cars he just said that one of the groups, one of the auto groups, car alliance of automobile manufactures thinks 5,000 to 6,000 additional, for american cars, should all these tariffs and everything happen, god, that seemke a bigber. you probably haven't read the study but jennerically, is this just the auto association trying to negotiate the negotiator? >> well, i think, again, as we've learned over the last year and a half, trump is a negotiator he throws something out. talks about it and expects some response from thside also, i think there has to be, again, pick up on phil's comment. a lot of the suvs sold by foreign manufacturers are actually manufactured in the united states to the u.s. market there should be some margin in terms of profit margin

save up to 15% when you book early at hollidayinn.com >>> let's get to rick santelli for the santellierybody we have so many things to talk about. the first thing to discuss is is when it comes to china and europe and trade deals, we can get into the nitty-gritty of what's going on. but if you take a step back, the battle is almost over in my mind because the slow growth in europe and the issues in china, what they are doing to their currency, things like soy beans, there's no contest here >> i agree with you. i think you have to remember what does trump want i'd prefer no trade barriers that's his goal. he's using tariffs as a tool to get there. what are we find iing? the rest of the world is slowing down the stock market is under tremendous pressure. they are under the gun to come to a deal. i think he knows it and they know it too. and that's ultimately why i think the markets are wobbling a little bit are not really on fire because in the end they might wind up with a better deal >> here's what i hear. the conventional line. everything from the tail wind perspective for tax reform

can't wait see you, scott >>> cme group, rick santelli has the santelli exchange.ood morning, jerome schneider. >> good morning. >> jerome, so many things out there are right in your wheelhouse one is a topic near and dear to my heart that doesn't get much air time interest on reserves ior. it's now picy tool that's melted away into the shadows until now. we should have a chart up there, but why is interest on reserves something important and why is it now being recalibrated? >> simply being recalibrated that we're past the financial crisis. >> a good ways past it. >> a good ways past but more importantly what we're doing is making small, minutiscule steps it was meant to be a floor, not a ceiling rate it's been the past few years j. powell is looking to normalize that and bring it down what does that mean for investors? >> let's make this even more plain spoken interest on reserves is a nice treat for those th can get t now they're taking away a little of the sugar out of the recipe why are they making it less tasty is what i really want to dmoe. >> simply less re

. >> thank you let's check in with rick santelli good morning, rick. >> happy friday.ually founded in substance the problem is too many conclusions are drawn and we tend to get a little lazy on big, conventional wisdoms. several of them actually have come into play regarding trade i've heard several times over the last couple of days, experts from all over the world on trade. and many disagree with this current administration's style and effective program to accomplish what it's trying to accomplish now i'm not saying i agree or disagree one thing i can make an observation on, all the experts in many areas have never brought home the bacon, as smart as they may be think north korea. think some of the cracks that have developed in long-term agreements, whether on trade or other issues with other countries. just the very structure of globalism. think of another conventionalism. multinationals and the u.s. greenback. suffer greatly when the dollar improves and imports get cheaper. we always concentrate on the export side. here is my issue really, really, it's the path and

. >> a lot to get to melissa, thank you >>> rick santelli is at the cme. rick >> thanks, carl.w that investors need to try to get a handle on to keep their positions profitable, to limit risk, to potentially neutralize some positions in the face of uncertainty. boy, that's really a tough one nowadays one thing i can tell you is if you look at what's going on in the u.s. economy, present and future against what we know now about europe, china and japan, and even forgetting all the trade issues out there, it really is quite a teeter totter with respect to the u.s. holding up so much better and all the other large economies really sliding in a variety of ways let's take europe, for example now today's an important day in europe in brussels, they have a big eu summit and in the summit there's a lot of unhappy campers let's start with one deputy secretary of italy, salvini. he grabs a reporter and starts talking to a german newspaper -- magazine actually. and his comments -- i'm paraphrasing -- he wonders what the longevity of the entire framework of the countries that formed the eu

rick santelli of the cme group, what was demand like, rick >> demand was about average.e auction a c minus, charlie minus for demand straight up or straight down, i should say, at 11:30 eastern $32 billion three-year notes, to september 2010 when it was $33 billion. and today total of 54 billion in supply in 76 minutes we'll have 22 billion ten-years. the data 2.664 was the yield at auction pretty much right there in the wi, one-issue market offer spread if you continue to look through everything, everything was basically average to a little light. 2.83 to2.9 ten auction average. 51.4 on indirection. 52 is the ten auction average. everything a little light. but i do think that the next couple auctions are going to be huge to give us some insight into investors because we have two auctions today, wrapping up by tomorrow because the big rate announcement by the fed comes on wednesday. back to you. >> that's right. all waiting for that thank you, rick santelli as we go to break, take a quick check on the markets dow up close to session highs. 37 points. s&p, 2726. and thenh

in some ways it's shuffling from one pocket to the other. >> i would say santelli.uch about baseball i can't bring myself to argue with him. >> we have more breaking news. sue? >> reporter: indeed. the founder and former chiefi operator are being charged with wire fraud schemes this indictment was handed down in california from the department of justice and basically they are now saying that the tehranos founder elizabeth holmes are charged with two counts of conspiracy to commit wire fraud, nine counts of wire fraud. according to the indictment returned an unsealed today, the charges stem from allegations that holmes engaged in a multimillion dollar scheme to defraud investors a separate scheme to defraud doctors and patients both schemes involved efforts to promote the palo alto, california-based theranos. it comes on the management transition we told you about a short while ago. they have been indicted and they're being charged with multiple counts of wire fraud and conspiracy to defraud investors and doctors and patients kelley, back to you. >> all right and, su

with the santelli exchange.nd thank you i'd like to welcome my guest, ed lazear it's jobs friday >> hey, rick good to see you again. >> all right very quickly, let's go through the unternals. up 0.3, average internal earnings up 2.7 year over year. 2.6 has been running pretty wild in january we had 2.8 it's still really isn't breakout material workweek, 34.5 six out of the last seven months have been 34.5 with the exception of one month and that was january at 34.4. and 3.8% i had to go back to december of 1969 to find a lower rate. we've had 3.8 many times, but to find a lower, 1969 233,000 jobs your take, ed. >> okay, well, good summary, rick i think the important point to take from this is that the unemployment rate that we've been looking at for over a year now is not a very good summary of where we are in the labor market if you think back six months or so, we had an unemployment rate that everybody thought was just signaling a labor market drum tight. low 3.2, 3.4%. it's a half a percent below that now. we

we will keep our eye on that dow is down 37 let's get the santelli exchange. >> i will tell you what. this guy is special. literally, the father of financial futures. he wrote the first interest rate futures contract it changes into a security delivered bond contract. i was lucky enough 34 years ago and one month to be hired by richard. eventually running the drexel bond it's a pleasure. you started so many businesses what i want to start with is you have a new book out. i know you are not as young as you were 34 years ago and a month -- >> i'm 700 >> i will tell you, always amaze me, you steer yourself you are hot on block chain >> i think it's going to be a total revolution as important as electronic trading. one of the chapters in the book was written by donald wilson don describes from the pit to electronic trading i think block chain, pre trade and post trade will revolutionize and drive down costs for exchanges. >> donald trump is going to be in canada for g7 he has to boogie early for the summit not only did he do everything i mentioned, he is the first person to start a climat

rick santelli. >>> good tuesday morning. welcome back to "squawk on the street".ments g.e.'s john flannery will join us in an exclusive you don't want to miss. first we will look at the s. dow trying to hang on to early gains after being down nine of ten. s&p up almost eight. >> trade is certainly the focus. our road map begins with the after math of a sell off. stocks modestly high following dramatic losses but have fears cooled off >> the president taking on harley davidson over twitter following the statement that it will shift some production overseas. why the president is saying they will be taxed like never before. >>> and finally john flannery will sit down with us about 30 minutes from now and talk about today's big news. >>> g.e. is the story of the day. the shares are up sharply as the company announces plans to monetize about 20% and will distribute the remainder and saying it will exit the baker hughes stake on the first day the dow trades without g.e. as a member. it has been over 100 years. let's bring in michael santoli joining us here. that is tert

rick santelli. >> all you need to do is look at fed fund futures december that spike there was may 29th the height of the italian votility before that, may and 2nd meeting we were lower than we are now. unusual because lower is usually less tightening and higher more tightening it's drifting lower as the curve continues to flatten the dollar index is hovering around 9360. off about a fifth of a cent. like said, melissa, we are in tight ranges. let's head east. d.c. to be specific. sarah. >> rick, thank you the president is back home today but etary of stae eo is still in south korea putting a time line on innings we will tell what you he said. >>> the g interview with house ways and means chairman kevin brady to talk taxes, trade, north korea, and the economy and jns more. heoi us here in washington that's next on "power lunch. >>> president trump is back at the white house today. secretary of state mike pompeo stayed behind in asia to put a time line on north korea's denuclearization house with the detailshe white hi. >> hi, tyler a couple of off camera developments to bring you up to

rick santelli. intel's brian krzanich is out.wk on the street" is back after this dow is below 100 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. >>> 103 in less than a decade. olivgaene rd up. we'll get stock trading in a minute starting a business is expensive. that's why many entrepreneurs rely on their own personal property, like their car or home computer, to help them do their work. but they might not know that those items may need special insurance to protect against costly damage, theft, or liability on the job. trusted choice independent insurance agents represent multiple insurance companies and customize coverage so business owners can focus on business. announcer: to find an agent, visit trustedchoice.com anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep ra

. >>> let's get to the santelli exchange with rick good morning, rick >> good morning. i would like to welcome my guest. matthew, thank you for taking the time well, you know, i'm holding your book magic bean, the rise of soy in america. and i'll tell you what, i read it this weekend. really enjoyed it. i have enjoyed a lot of beans at my time here at the board of trade. but the real issue today, in my opinion is, how will the 25% tariffs and how escalation on both sides ultimately arrives at various percentages of tariffs, how will it affect farmers and soybeans i would like to have your answer to that, matt. >> well, i mean, it is hard to predict fast-moving current events, but there are parallels in history most obviously, the 1980 embargo or boycott of grain to the soviet union, which i describe in the book, ultimately as being a game of musical chairs by that time, brazil had emerged as a major soy producer. so they basically sold to the soviets and we took up the slack with their customers so it was kind of a game of musical chairs with plenty of chairs to go arou

. >> rick santelli is tracking the action at the cme group as always, hi rick. >> you look at how muche down and some of the runs we had especially of the dow. it does not seem equitable when you look at how little impact. you are looking at two-days of tens you open the chart up to january 2011, you can see 3% has not been an easy trade we never seem to pop through we have everything in place and we have big issuance and we have a fed that's tightening and best economy in the world other forces are keeping it down like equities and dollar index, if you look at that since the beginning of 2017, you clearly see the 95 level, we are starting to back away and everyone though it is down a fifth of a percent and small increments of dropping price of the last week or so, it is starting to add up a little bit. if you look at what's going on in china with all the trade talks, maybe we should be paying more close attention to their currency the dollar verse of what you want it has been drifting higher as a matter of fact, we are trading at the highest levels of the year on the dollar side of th

we'll get to the bond pits, as well rick santelli at the cme good morning, rick >> reporter: good morning, carl. obviously, equities had an interesting run. softest in the dow and the nasdaq big issues there there's not a big issue in the fixed income space most treasury rates are close to unchanged on the week. there is a bit of a curve bias look at a one week of tens and if you pick 290 to be your support, and just under 3% to be your resistance, the month of june has been kind to you. let's look at tens minus twos. there's a year to date chart we're not on the flat lows going back to '07. but we're close as we hoover around 36 basis points you know, a lot of attention bait paid to italy and some lesser extent greece is the quiet little deal they made to extend, of course, the game plan, i think, in certain ways with regard to how the european union treats the greek economy but you can see that when it gets crazy over there the inverse relationship pressures the higher quality bund yields down maybe less and less. maybe it's something to pay attention to remember the ecb and mario an dr

. >>> let's get to the cme group and check in with rick santelli for the santelli exchange. >> good morningthis administration does things different. north korea offers many lessons. the president dealing one on one with the north korean leader unprecedented. lots of things are unprecedented. i was a bit shocked this morning reading a great article in "the wall street journal. kudos. it's entitled german's largest automakers back abolition of eu/u.s. car import tariffs boy, that's a blockbuster headline a great article. and it brings up some very fascinating issues especially today considering what's going on, not only with the markets, but what's going on with global economy. we all know that there's been a bit of a mogul in the synchronized growth story. albeit not necessarily as much, if hardly any, for the united states of course, what's currently going on with regard to trade issues could catch up with the marketplace. but as we dig down, something important is going on. populism probably is the most overused, maybe misunderstood word of the last last several years, but a simple defini

k kayla, thank you very much joining us today is james, frederick newman, steve grasso, and rick santelliin chicago. steve, beginning with you. markets don't have a care in the world, lack of progress on trade with china, i mean why do you think that is? >> just doesn't -- i would think you have to look back to what are the tail winds for the economy? we have that great jobs number friday i think people are putting it into perspective that we still are economically in tact with growth if you look at it from that standpoint, how do you worry about europe how do you worry about everything else? you can worry about it, but i think they take a backseat to the growth questions, and you stick with our economy here and what was shocking to me last week was that large cap tech was defensive, so you go to that for growth >> did all right when the markets sold off, yeah >> right when you say it's shaking off the trade issues, look at large cap tech from china, look at those names, those names are blasting though names are making historic highs, so the market, to your point, shrugged off a whole lot

rick santelli here live on the floor with breaking news, jobless claims, initial, 227,000 up from anised 218,000 we'll call it up 9,000, continuing claims moved from 1.726 to 1.75 million and the money number our last look at first quarter gdp. a bit of a disappointment. 2% our last look was 2.2, that's what we were expecting down 2%. that's a tenth white if we look at the gdp price index. that's actually a little bit heavy. move from 1.9 to 2.2 and finally personal consumption expenditure quarter over quarter many like to look at this number it stays at 2.3. we can argue a little hotter on pricing. a little cooler on headline. it is an older number, especially when in front of us is a number that could be in the high 3s, even the 4% handle according to atlanta fed, so it's going to be very fascinating to see about one month from today interest rates hovering about a one month low yield in the low 2k3wr0r9z 10z. sulli, good to see you back to you. >> rick, thank you very much back to you. joining us is randy anderson chief economist at griffin capital. all right, number 230ir7x 23rs,

>> let's continue the discussion, and joining us today iss is ernest and steve grasso, and rick santelliwe expect volatility given the month. >> absolutely. it is a day we waited for. this is the third date in june we expect a lot more volatility. i think depending on the activity that we already have seen in previous sessions, a lots been priced in already. might see or continue to see window dressing as we get towards the enof the day >> what's been a struggling couple weeks with various negative headlines and market declines, is it important today we end roughly where we are 200 points on the dow? >> i think so. the volatility adds 1% move to the markets, and investors are not used to that ending up in the green, getting the dow back positive for the year, financials stopping their downturn would be important and understand this is a vacation, holiday mode next week, shortened trading sessions, so buying will drop dramatically. >> anything fundamentally change over the last two sessions that led to the better tone and big rally we've seen versus earlier in the week where there was a l

the famous rick santelli >>> now there are worries about worker shortages steve leisman will tell usthe productivity is a charge it probably will snap back in the second quarter but one of the greatest challenges we face economically, getting to those 3%, possibly 4% growth numbers is bringing up the productivity number in the efficiency of the nation which is why some of the tax cut ideas make a lot of sense which is to incentivize some of the productivity and capital equipment pressures out there. >> you hadn't thought about the lack of capex being part of the reason >> it's a huge issue but if we get accelerating economic growth, we're going to be using the resources of the economy. >> that's what we were holding out for. >> it's what you got >> you just said -- did you say possibly 4%? is th did that come out of your mouth? you said it. >> yeah. 3%, 4% 4% is a good number. who'd you have on yesterday that was talking about 4% >> howard shultz >> yeah. anyway, those are difficult. but i do want to talk about this other thing, joe the government reported yesterday there are now mor

we'll get to rick santelli. >> jay powell is going to be greeted by steeper inflation and a flatter curved potentially, as you look u twos, threes, fives. they're unchanged. ten are up one 30 are minus one look at two day of twos. you can see the upward to it interest rates don't have as big a bias leading into a fed meeting as they normally do. maybe that's the attention being paid to over central banks or the notion this is sbuilt into the cake if y look at what going on with ten year, considering we have hot inflation, it doesn't seem to be rnding very much. as a matter of fact, i know you mentioned, carl, the yield curve tens minus two there it is.ptember '07 the lase wet 41 we've flatt tn that today at 40 basis points if you open the ten year chart to february, and this is very important, because markets tend to kind of learn their trading patterns questionable with central bank policy as this year. so you see in february we had many sessions in a row we talked about that closed in the 280s. now this could be the ninth session, depending on where it closes that's in the 290s. ife loo

it off last quarter let's discuss it further kevin from riverpoint is here, tim, and our own rick santelli good afternoon to you all. tim, starting with you today, we, of course, saw a negative open and morning. encouraging afternoon. what are your conclusions from that, in particular? >> well, certainly, the upside seems to be the path of least resistance for the market. i think that after europe closed, maybe that got some of the selling pressure on the morning out of the way, and closing down half a percent, and i think it was also very constructive to get rotational actions back into the consumer staple stocks and the stocks because tech is clearly taking a breather after nasdaq closed at an all-time high wednesday >> it's. interesting. >> big pharma has not been in a leadership position in quite a while, highest levels in three months the s&p pushes resistance at 2800, which was hit like a brick wall in early march before a sharp selloff, and so it'll be very intrigues to see is as we approach 2800 on the zcs&p, how the market reacts. >> 2776 with events con fronting us next week wher

rick santelli is at the cme, what do you see for demand >> nine i gave the great b as iy not a bad optionnd we auns that reopenings are not quite the same as the first time let's go through it. 2.962 was the rate of the auction right in the middle of the one issue market just like the last one here is where it is stronger than three years 2.59 bit to cover, that's the best since january it means it is the second best of the year. the light part is in direct 56 verses 10 options here is a highlight. 16.3% on direct. best levels since may of 2015. you know that represents government pension funds and mutual funds and insures this is a big deal to have that category excel so tomorrow we'll have our last leg in the form of 30-year bonds as all eyes looking at the first meeting. >> tyler, back to you. >> the president is over in singapore for major consideration from kim jung-ill. >> the s&p 500 is touching a three-month high today, "power lunch" returns after this. >>> welcome back to "power lunch. let's head down to bob pisani. >> awfully close we are doing it without the leaderships of the

. >> thank you, michelle rick santelli, i hope you are staying cool there i hear it is hot there >> we like it hot in chicago if you look at 10-yr, the trade is not really hot. sideways day we are at 292 highly unchanged to michelle caruso-cabrera's topic, there is one week of the bund they were down at base point of 39 last week we were flirting with 50 bases point there is another coalition that's under duress and that's prime minister theresa may and we'll take a look at that in a minute everyone though on friday we dipped down into 35 and today we spent a lot of time on 36. this chart is really is something that jay powell, the feds got to pay attention to global growth is taking a toll on the long end. back to the story, prime minister may, there is the one week of the pound verses the dollar i has had a pretty big drop. 355 and 235 house of lords voted the mps a.p.s the brexit and the pro-eu groups are not getting along. >> tyler back to you. >> the fang stocks, pretty big over the past months so will fang fever continue on puch "power lunch." that's coming up next. with tripadvi

we'll get to the bond pits important story over there rick santelli at the cme good morning, rick. >> variety of important stories this morning, carl let's start with one that is real time. from 8:30 this morning we saw our may housing start and permits. permits were a bit lacking remember the talk about interest rates. the first increase was december of 2015. let's start a june 1st, 2007, housing start. today is 1.35 million adjusted annualized units is the best since july of 2007 but there's always a but isn't there? zoom it back to year 2000 and you can see our high water mark is still way up there at 2.27 million units from june of '06. now let's look at one week of tens today going to be the day we dropped with regard to the closing range? it would be the 13th day, if we close in the 129 -- 290s i think we will. i understand the flight to safety the topic all day has been timing think about what bob said about the stock market and the deterioration in china think about the leverage in china. think about what emerging markets are how they're being affected by the big run up in the

. >> let's get to rick santelli this morning at the cme group in chicago.morning, carl. if you look at treasury, and they're highly unchanged however, we came that close to 3% ten-year as you see on the two-day chart and if you open up to the third week in may you will see the last time we closed at 3% was the 22nd and what's even more interesting is all of the yields i see as being unchanged are unchanged basically at levels that we closed at about two weeks ago and yesterday. so these are lofty levels. we continue to hold them and stick. one of the impetuses are what's going on overseas and a lot of central banks next week, but look at bund yields and look at the tens and they've also been moving higher. right there you're scratching your head. no flight to safety. and they're getting close to 3%. what's interesting about the italian yields they surged off and they resurged in the last 30 hours the low yield yield has bn 2.5 and the high yield has been 2.94 that's a heck of a range et want to continue to pay attention. the big. day is coming with regard t

this, joining the closing bell exchange, we have sadif, cnbc market analyst, steve grasso, and rick santellin chicago all in all, is there a softening on trade we heard from the president and the rally, hammering away at the points, and as far as the policy action, have thinged calmed down >> we have not seen any policy action yesterday, so, yes, i think that the rhetoric is always going to be outfront, markets react to rhetoric versus reality of the trade, and when you look at what moves the markets on monday, it was the china investment or blocking of the china investment here. that's what moved around the technology space ahead of the rotation tomorrow, month end, quarter end. he preloaded with the marketplace, right now, you see us up 20 handles, and s&p cash, and so if people started to get ahead of that rotation where you sold tech and tech was to be for sale because hedge funds and funds want that profitability and good trades and get rid of those, show the profit, and buy the laggards, that's why you see that reversal or reation taking place this week, but, also, remember buybacks ar

. >> to the bond market and rick santelli at the cme. >> that was an interesting discussion we will geto something similar in a second. midway was when a lot of things occurred if you look at the ten year note yield. lots of volatility the high and low on your left established a midpoint of 295. we have kind of been hovering closer trying to get back to it. the pattern is same as bund's. 253 basis points separates them. it keeps getting wider and wider. it's like a boiling frog we hardly notice we look at the pattern, acknowledge the relative value trade but the larts is astounding add in the dollar index which the guest was talking about. i agree, except for one thing. do you see the pop on the right-hand side? that was last week, june 13h do you know what happened on june 13th? graggi disappointed those thinking the euro would be underpinned by more normalizing a. i think that's going to give a tail wind to the dollar. one week of the beans hovering at $9.12 up a penny, hovering on the next turn around at a two year low many say there might be a good buying opportunity they are all wa

randy frederick, steve grasso, and rick santelli.andy, i'll start with you there's been a lot of back and forth from the administration this week particularly on this issue. how do you interpret it and do you think the selloff we've seen in the nasdaq is justified >> i think a little of it. what i hear from clients is they largely support the end game here which is we need to protect our sblintellectual property. it's the process by which we get there. they support the end, they just don't necessarily like the means we're using to get to that end i think that's indicative of the general investor population out there. >> there's going to be a lot of argument about how much the market's weakness has to do with the trade policies today, what do you say >> so today feels to me as if it's a month end, half year end sort of dynamic where you sell the winners, buy the losers. we've seen energy spike a little bit here so this is reminiscent of monday's action. >> which by the way -- >> middle of the day which feeds into the trade issue becau