seema mody is watching that sector today seema. >> earnings from major retailers have sent the broader sector down 9% for the month. saying tariffs at 25% will result in price increases and it will be felt by the consumer that's back down nearly 6% other companies like carnival, rite aid and jcpenney all down 5% to 7% worth noting there are a number of companies within the retail space that are sitting on big stock drops. gap, tiffany, even crowinger down 30% from their respective highs. and that's why again one of the big losers in today's trade. guys, back to you. >> seema, thank you so much. stephanie, it's been a hard week for the retailers. where do you want exposure >> i want them in the big boxes. i don't want them traditional. either sector leaders like costco i still think that -- >> diehard costco fan. >> anytime i -- >> shareholder as well as stockholder. >> yes i am a shareholder i definitely frequently go there. i would say every time i try to trim a position in costco i regret it because the stock continues to be a compounder such a great story because of the revenue and

we've got a news alert on fox sports seema modi has the details seema? announcing a sports wagering partnership. fox will be buying a 5% stake in starzz and it was up 14% about being halted and it's offerings in the global gaming industries including a number of poker games and it hiels tghlights th we're seeing in online betting >> mike, the very interesting thing about this and fox sports is no longer in any way partnered with sky, but there might be know how and sports betting in the uk, and it's been legal for a long time and sky sports had most of the sports' rights and they launched sky bet which is one of the sky betting companies and i imagine it is very, very much integrated it makes sense to have that one of the more bullish cases on the continuing popularity of sports programming is the fact that you'll be able to slice and dice the betting data and you'll have to watch in real time in theory it's narrowed down and it's news it's the fox broadcast network in the sports and they're looking for further growth areas. >> you know a lot about sport

seema mody has been watching this all day >> the widely watched u.s. yield curve has generated an active discussion here on the trading floor. does it spell out deeper economic troubles, or is this simply a flight to quality one economically sensitive sector that's traded down consistently throughout the day is energy. down today and down on the month as oil prices continue to slide down another percent it coincides with data that shows u.s. stockpiles are climbing at their quickest pace since 2016 pull up a list of the biggest dow losers it's the energy producers. chevron and exxonmobil down 1% to 2%. are lower yields helping the dividend-paying sectors? well, not today. they are -- those three sectors are lower as well. all of these factors have created a waeaker technical picture. art cashin says 2632 is the next level to watch back to you. >> seema, thank you. retail stocks among the hardest hit today. courtney reagan is covering the movers for us. >> so shares are coppery holdings down more than 9% on weak current quarter guidance, despite reaffir

seema mody >>> restoration hardwares reversing course after falling 2% in the session after presidenttic about striking a trade deal with china. we're going to look at why the home fniinurshgs industry stands to get hit hard by a trade war next feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. i'm workin♪ to make each day a little sweeter. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for. has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are goo

seema, starting with baidu, 15.5% drop for the google of china.s this tell us about what's going on with the chi? >> it's interesting because the data out of china is not always that reliable, the market tends to put a lot of importance into these chinese tech companies that have such large penetration across the country it is the largest provider a company that misses expectations is a big concern. the company also talked about in their earnings call which i had to read this morning because it started at 9:30 p.m. for us in new york, but talked about how they're scaling back on investment until the second half of the year when they expect china and the government to unveil new efforts everyone is waiting to see what the government will unveil, whether it's an interest rate cup or a tax >> this has been the faang trade. is baidu alone in this stumble >> baidu down significantly today but it's brought down a number of its peers, all significantly down today they've had a good run except baidu has been the big underperformer government restrictions

seema. >> it's a bond market. we're seeing there driving stocks lower the inversion of the yield curve as it relates to the three-month and 10-year yield continuing now at its deepest since august of 2007 so yet another sign of growing concerns around the trajectory of the economy and also the impact of this protracted trade dispute. take a look at the s&p 500 sector you'll see that typically lower yields leads to interest rate-sensitive sectors like utilities and real estate to outperform but that's certainly not the case today utilities leading us lower down about 1.6% the biggest movers on the dow currently intel, exxonmobil, proktder & gamble. we started with these three names higher but as you can see leading us lower with intel down 2.4% guys, back to you. >> seema, thank you. interesting that some of the bond proxies like utilities and staples which usually dowell when the yields go down are also getting dragged into today's sell-off right now it really is kind of turning into an ugly session >> sure. the o

for nightly business report, i'm seema modi. >> so you have these concerns about the economy becausef trade tensions and theve issues created wild days on wall street this month. is there a way to protect your portfolio from all of the volatility? joining us tonight is jimmy lee, ceo of the wealth consulting group. good to e you again. >> clearly, owning treasury bonds would have been a good hedge over this month. as stocks went down, they've been going up pushing rates down and is it too late to protect your portfolio in that way, do you think? >> i don't think it'r a good idea for the average investor. that's never really worked. i think what's most important is to be calm and not panic and actually for long-term investors it is probably a great buying opportunity because as you said most of the concerns about the trade issue and yes, it is causing some other economic tential data that looks like the economy might be slowing and when the trade deal is i done think if the stock market could set new highs. >> you made the mmint, that you can harness this volatility if you do what's c

seema, thanks. seema mody. >>> adding to today's sell-off to an already rocky month, dow and s&p down nearly 6% in may. nasdaq down 7% all of this as that yield on the ten-year hits a 20-month low bring in senior global market strategist at wells fargo invest institute and brian roeynolds strategy welcome to you both. brian ask you first, you've watched bond markets closely a long time. are you as concerned as everybody else about the recession signal it may be sending? >> no. i was on your show in january, january 10th, talking how the shields dropped precipitously calling for the fed to cut rates. now the rest of the markets, the treasury market and other markets around the world are following the yield of eurodollars, followed libor. the message sent to the fed five months ago and other markets, investors, are catching on. >> but is the fed? in order to get out of this situation, do we need them to come out and at least say they're going to cut rates >> no. because the fed usually lags the market

. >>> good morning, i'm seema seema mody.ome of your co-workers may be suffering from the "game of thrones" blues today. a study predicts more than 27 million viewers will miss work, arrive light, work from home, or be less productive. the watchers have spent an hour a week talking, reading, or posting about the show since the premiere last month. the loss of productivity has cost employers an estimated $3.3 million in revenue. with the morning business report, i'm seema mody.ig > we'll be rht back.>> >>> good morning, everyone. coming up on 6:00 a.m. i'm aaron gilchrist. >> i'm eun yang. let's begin with a t check of forecast and commute. boy did summer come in weekend. >> fast and furious. >> yes. melissa molt has the first 4 traffic. >> we'll begin with storm team 4 meteorologist chuck beot and see howit's going to get today. >> yeah. it is another one in the 80s today for sure. here we are coming up at0 a.m. in the morning. tery died.-- by b >> man -- >> chuck was going to say it's just about 6:00 a.m. and we've t already

seema, i can't thank you very much. >>> now to sports.the pga championship a little bit brooks koepka had a seven stroke lead before some nerves set in he had four straight bogeys on the back nine letting dustin johnson get within one shot. he helds him off finishing eight under par. koepka is the first wire to wire winner since 1983. it's his third straight year winning a major. something achieved by only seven others since the masters began in 1934. that list includes some pretty good golfers tiger woods, phil mickelson, tom watson, jack nicklaus and arnold palmer. >>> we are setting you up for a big weekend. all of the things on your radar. new numbers from texting and driving. wait until you hear how people are, well, lying their pants off. we're back after this. one-millionth order. millionth order. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering. ♪ ♪ ♪ ♪ ♪ ♪ applebee's new loaded fa

seema mody watching the movers at the big board phil lebeau has a look at the fallout specifically in the auto sector kayla tausche has what comes next on the trade front. seema, though, let's start with you. >> hey, sara the market reaction really tells you how investors have been trying to position themselves. pulling back on mexico-related stocks, sectors, the etfs. even the peso as i know you've been following has been trading consistently lower across the board. and down 2.6% against the dollar outside of autos it's the rail stocks that have come under pressure the concern is that these tariffs will constrict or limit the flow of goods in and out of mexico and kansas city southern the big name to watch p. with direct revenue exposure to mexico shares are down nearly 5%. this flight to quality is also evident in today's market action as yields move own lower utilities, real estate, the only two sectors that are trading higher and even the japanese yen gold often seen as a safe haven getting back above $1300 highest level in seven weeks >> we'll check back with you on the floor thr

seema mody has more on may's meltdown hi, seema. >> reporter: hi, tyler what the market is trying to do is quantify the impact of the mexico tariffs on the u.s. economy and the state of the consumer, but that is proving to be a challenge mexico is an intermediate and assembler in the production of certain goods and products with today's move to the downside, we are sitting on some big losses for the month the two worst performing sectors, energy and tech some of the defensive sectors also got caught up in the sell-off utilities on track to close down for the month, but real estate is higher by 1%. and with the exception of mylan, combination of disappointing earnings, discussion around tariffs and saying we'll have to raise prices at some point due to the added cost of tariffs bucking the downward trend for the month, not a lot of them but a number in the health care space. big pharma, you see pfizer there up about 3%. kelly, down 273 points and off the lows back to you. >> seema, thanks how big of an impact could these tariffs have on the u.s. economy? and is a potential trade war w

seema? >> kelly, we're off the highs. and tech, interestingly enough, holding up relatively well, despite growing concerns about the sector's exposure to china analysts at citi slashing their apple iphones sales in half for fiscal 2020 to 16.8 million units over worries that desire for apple iphones could be hurt pie china's nationalist tone apple on track for its worst month this year down nearly 11%. and there are a couple of consumer driven companies that view china as a growth market, including canada goose getting set to report tomorrow investors want to know if the trade dispute and concerns of a boycott have changed the company's aggressive push into china which kicked off last summer back to you. >> goose will definitely be one to watch seema, thanks. >>> the headlines aren't just in the stock market lately. check out bond yields. the ten-year yield is at 19-month lows. and maybe more so by the time we add things up. rick santelli is at the cme. what's going on here >> i'll tell you what isn't going on you brought

not a lot. >> seema is calling for it the gold rush.ng them to market we'll buy them all here's a troubling trend the total fertility rate in america is at an all-time low. this is data from the cdc that says the birthvia rate is so lo. how are we to beat china if we're shrinking. >> i've done my part i have two kids. >> considered replacement -- >> replacement population. >> she's above the average, which is 1.7 >> i thought 2.1 or 2.1, to maintain -- >> it's probably going higher if it's shrinking overall >> the question is how important it is to have immigration to help fill out that workforce and that's going to be really interesting as the conversation shifts to the value of immigration as people have fewer babies >> look at japan low birth rate and very little immigration. combine those two with low productivity and it's hard to see gdp grow >> which could be a case study if this continues with japan, prime minister abe put out womanomics to encourage working women to have kids >> the birth rate among teens was down over 70%. so t

. >> your portfolio we also called the seema mody lunchbox around here you've got things like hip peas, buy, kettle and fire which is a bone broth soup, pet food, cold brood coffee, vital pro feens for people who eat collagen these days there are a lot of up and comers here and we will see especially if today accelerates their move into the public markets. thank you all. appreciate it very much. those shares up about 130% we will continue to watch them. >>> here is what else is coming up on "the exchange." >> announcer: ahead. tesla has a plan to recharge its battery and the market thinks it could work why one economist says the robot overlords have arrived, at least for one class of workers. >>> and believe it or not your company actually pays you on tuesdays but you don't see it until friday now one bank is hoping to change all that >> announcer: this is "the exchange" on cnbc. woman: my reputation was trashed online, i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack

seema mody is uptown with a look at the biggest movers so far today. seema. >> april jobs report underscored a healthy labor market and that's really helped lift stocks across the board as it pertains to the nasdaq a number of companies' specific stories amazon higher by 3%. after warren buffett told cnbc that berkshire has been buying shares of amazon and then there's upbeat results from monster beverage, gilead science as mong others one sector to highlight is online travel. positive comments from deutsche bank this morning regarding trip adviser and its attractions and restaurants business growing rapidly for the next several years, which they say will help drive topline growth that certainly has been a source of strength for the company in recent quarters and we'll have to see if that continues the company reports earnings next week on may 8th now, one stock not joining in on the rally we're seeing in the space is expedia earnings last night showed revenue in its home sharing business slowed for the second consecutive quarter. guys, back to you. >>

seema? >> kelly, higher yields, lower volatility and upbeat comments from president trump on trade and the dow up triple digits, about 100 points 25,589 a broader rebound for industrials, tech, financials which closed down in yesterday's trade. also take a look at utilities. another record high, now up 2% for the week let's dig in a little further because 16 out of the 35 companies on the s&p 500 that have hit 52 week highs today are the utilities. names like american electric power and southern companies that is an electric and gas utility firm based out of atlanta. check out their dividend it shows you how investors continue to value companies that are higher quality and dividend paying 5% dividend for southern american electric power at 3% and the question, whether there's further upside left in the sector price attorneyinto earnings rat. it is trading at a premium to its historical average. >> we have a rapid update right now on the american economy. steve liesman with the details, plus

kelly, back to you >> amazing stuff we'll have more on that soon, seema. >>> welcome to "the exchange." i'm kelly evans. the philly fed index surprisingly strong in may hitting a four-month high, the jobs market looking strong with claims dropping 16,000 to 212,000. today's rally with bob pisani at the new york stock exchange. do we have a short-term memory what's going on? >> reporter: this has been a stunning rally in the last 24 hours. take a look at the futures s&p futures rallied 70 points. dow futures rallied 600 points exactly on what? the traders want to believe after the dow's 600-point loss president trump got the message and suddenly all sorts of happy talk rumors on all three trade fronts talk of a delay in european auto tariffs. hopes for nafta and removal of steal and aluminum on china, the toughest of all, hopes mnuchin might return to talks. notice there's nothing definitive here. the market is buying into this hope on all three fronts it's broad, very broad uber is up three days in a row that price of $41. finally getting some action on the upside >> it's had almost a

seema: the u.s.ecause manufacturing costs will go up. you still have freight costs. tom: let's say the yankees lose. the yankees lose, ok? $890. they are not even what they wear. seema: no, they are not. francine: it is what we wear on "surveillance." ritchie, -- tom: ben thank you so much. another hour, we will do it again. ♪ ♪ tom: this morning, it is a digital iron curtain. "--ing should just's resolve."unwavering while weight is not cte -- or is it?not zte all of the president's lawyers defend on multiple fronts and will appeal. deutsche bank from 91 to six euros per share, the chairman under siege. this is bloomberg "surveillance," tom keene and francine lacqua. i do not know if there is a home depot by you in london, but in america it is a big deal, and the idea is that they reaffirmed 2019 guidance. you call as it what bellwether of the american economy? when it comes to housing? what else? tom: a 5.7 percent increase. this idea of organic revenue shah with us. they are moving to digital but t

back to you. >> seema, thank you. when we return, a beat on the top and bottom lines for fitbit.ck is down. ceo james park joins us exclusively on the other side of the break. we are inching closer to beyond meat's debut you can see the indicative price of $44 the ceo joins us after the open. >> announcer: the cnbc trend tracker live board is brought to you by the cme group >>> fitbit growing more active users and getting a boost from strong smartwatch sales. those sales up more than 100% year over year joining us in a cnbc exclusive is james park. good morning >> good morning. >> so some questions perhaps about the selling prices for fitbit hardware down more than some people expected how much of that has to do with you trying to seed the user base for the services you have coming >> that was the strategy for q-1. we launched products to address a broader segment of users and to hit a better price point. that strategy worked we grew our active users in the first quarter. that's in advance of the launch of a premium health service we plan on launching in the second half of the ye

mody with big movers and kayla tausche is following the latest on those trade tensions seema? >> reporter: hi, kelly fed chair downplaying concerns over tin verted yield curve and a rate cut could be under discussion if the economic outlook worsens. no real mention of trade and we are higher across the board. what's also helping lift markets today or balance markets, 10 year yields stabilizing around 2.24%, plus, among other econ experts, talking about how, yes, the yield curve is inverted but doesn't necessarily mean we're on the edge of a recession one specifically are rebounding across the board by 1% to 2% chinese down 4%, copper prices a proxy for growth as well as emerging markets down 7.5% and tonight, the china pmi down in focus. back to you. >> washington now for the latest on trade with kayla tausche. hi, kayla. >> reporter: tyler, as china lobs new threats at the u.s., the trump administration is planning its own censure on china's religious freedom and human rights records, according to two sources familiar with the matter vice president mike pence is planning a sp

seema mody following results from nvidia and applied materials.re bosa standing by for bai baidu's numbers. lucky coffee, breaking news as soon as it comes out >> let's go back to the post-game panel to talk about markets. chief global investment strategist at charles schwab savita maranian at bank of america merrill lynch. and back with us at the start of this hour stephanie link, global equities director and portfolio manager from nuveen, a tiaa company. you guys have long company names. and mike santoli is with us as always mike, your take on the day a little slippage. >> the market is incrementally relaxing the past three days to me it's about the absence of fresh headlines about tariffs, about trade war. the market always wishes for this issue to be put aside i think it's been possible to do that for 48 hours. definitely trading as if it's still a slow growth story. the big nasdaq stocks. yields dip a little today. i go back to the fact that triple b rated, below 4% yield again. hasn't been there since mid february that's just supportive of t

back to you. >> thank you very much seema mody. >>> stocks down on the trade worries but a dow up about 13% so far in 2019 so is today's little dip a buying opportunity with the dow industrials, look at how far they've come back. down 133 points. a chief investment officer with whittier trust and chief investment strategist. for u.s. stocks, let's just say global stocks but particularly, u.s. stocks, do you see green lights, red lights, yellow lights >> green lights, the fundamentals are very strong think back to december what were the big fears in the market it was that the global slowdown would result in impending recession and the fed would be on its way to committing a costly policy mistake. those fears have receded dramatically, today notwithstanding. come back to the tariffs in just a moment but first quarter gdp growth in excess of 3% jobs growth has been nothing short of remarkable. we added 263,000 jobs. >> been good. >> corporate procfits have been good the fundamentals of the u.s. economy are stellar and they don't signal any recession on the horizon. in fact, it is this very

seema mody thank you let's get over to sue herera for an update. >> good morning everybody.what is happening secretary of state mike pompeo speaking in finland today warning of the dangers of russian militarization in the arctic area. monday appears to have bruning a cease-fire to gaza at least 26 people are thought to have died after more than 600 projectiles were shot at southern israel in the past two days the tentative truce comes at the start of the muslim holy month of ramadan and it was brokered by egypt and the u.n.an. >>> 1 million species for 1/8 of those on earth are threatened with extinction because of mums according to a new report by the united nations the evidence was collected over the past five decades from roughly 15,000 scientific and governmental studies. >>> the owner of maximum security says the horse will not race in the preakness stakes and he plans to file an appeal after maximum security became the first horse in history to be disqualified from the kentucky derby for a rules infraction >>> what a derby it was. that's the news update this hour i wil

. >> seema, thank you. seema moby for more on the chip stocks, equity research analyst at rbc capital markets. nice to speak with you again you take a look across the chip sector in every single name that seems to be getting hit today. how do you think about the damage done on this sector right now and what warrants the damage versus what's being thrown out with the bath water? >> two dynamics here first, the huawei piece, i think pretty structural. especially if you can't sell anything to huawei i mean, that's going to impact adi and broadcom, all of these smartphone players and the other side on the actual china/u.s. trade tensions, i think that sets up a lot better for high-tech. essentially, if you really think about it, a $30 billion tax, right? less than 0.1% of federal income and so when you look at that number, it's really small. so hopefully that gets fixed because essentially, trump does have kind of the, i guess, the royal flush, you call it if he says you cannot buy gpus, the entire infrastructu

i'm seema mody at cnbc headquarte headquarters. wall street set to start the week lower shrugging off president trump's tweets on iran that could ratchet tensions in the middle east. a negative day friday snapping a three-day winning streak. on the watch list reports on home sales and durable goods and president trump minutes from last month's federal reserve meeting. the price of meat could be on the rise. china expected to import pork, beef and poultry. it is the world's top pork market. usda estimates china could import 33% more pork to meet demand. analysts say while it will probably take months to feel the full impact as companies lock in prices with suppliers, meat could rise by 15%. and some of your co-workers may be suffering from "game of thrones" blues today. the report says 36 million "game of thrones" watchers have spent at least one hour week talking, reading or posting about the show since the premiere lastmonth. this loss of productivity has cost employers an estimated $3.3 billion in revenue. guys, back to you. >> t

after the bell we'll also hear from bookings holdings seema mody, what can we expect there?xpecting earnings to decline 6% year over year the focus will be on booking holdings growth in the home sharing market, which brought in nearly $3 billion in 2018. representing 20% of the company's overall revenue for the year but it is becoming a more crowded market marriott with its expansion plans. airbnb trying to grab more market share ahead of its ipo. it's also not an easy market to win it booking sees competitor expedia -- for the second consecutive quarter. so far it's been a tough quarter in general for online travel operators. expedia shares dropped about 5% after releasing earnings trip advisor fell 11% yesterday after reporting earnings we'll see if booking holdings can buck the downward trend. guys, back to you. >> thanks very much. we'll see you all at the top of the hour when the stories break. jason, back to the broader market clearly we're going to close nearer the highs of the session than the lows. do you think the market is looking to look past the trade daeltds of

seema mody has activision. jul julia, let's start with you. streaming, how fast are consumers subscribing to its cbs all access and showtime app? and what will the company say about coming competition from a slew of new streaming services second, scale. can cbs continue to grow its ad revenue in the face of consolidation with consolidated, competition with consolidated jiejts like disney and at&t? we'll be listening for any hunts about a potential merger between cbs and viacom also looking for the company to report 14% revenue growth on about 1 1/2% increase -- percentage increase in earnings per share. sara, back to you. >> julia, thank you. let's go to seema mody for a preview of expedia >> the focus will be on home away, expedia's home rental service after earnings showed growth in home away slowed analysts say competition from airbnb and new players like marriott mean competition could become more challenging going forward. on the call analysts will also be looking on commentary on the macro environment after the ceo last quarter reference

guys, back to you. >> seema, thanks for that one. now, stocks staging a major comeback intraday after the initial plunge following president trump's tweet. the tariffs on $200 billion worth of chinese goods could rise to 25% by friday. mike santoli looked at how previous trade threats have impacted the market and whether investors should be concerned. mike >> there's no absolute consistent pattern but today's action was not really unusual. if you look at these prior instances, when there was a presidential tweet of a threatening nature toward china about trade, and see what the market did april 4th 2018 was an interesting one. the market opened a good deal lower, almost 1% lower this was one of the early aggressive threats out there, saying we have to do something to close the trade deficit with china and making those bold statements of what it would take the market was down 1% but then actually came back to close green similar to today that was pretty close to a trading low. we were already in correction mode for the overall market.

melissa, for now, back to you. >> thanks very much, seema modi. >> i think amat is pretty interestingause they make the equipment that makes chip, and i think that that commentary seemed pretty good and it traded 11 times next year's earnings and they sound cautiously optimistic and that's the tone that you want to hear especially when one of the customers like intel sounded so horrible and to me it seemed like it was likely to have legs here. >> some of the concerns that we heard to your point, i was pretty worried about this going to nvidia and amat and the very calm sound of what amat said was, hey, look, we're not calling a bottom and things seemed to be improving and there will be new areas of demand and those are pretty positive things and because of that and the inexpensiveness of the stock and amat's space i don't know why you wouldn't want to own them here nvidia looks like it was caught in the downdraft and the semis delivering on gpu revenue and the pc touring demand is very much there and this is even without crypto and that was the big reason the stock fell under pressure

seema has more >> for now european stocks in the red led lower by the german dax down 2%.. infineon has reportedly suspended shims to huawei even though a majority of its chips are not subject to u.s. restrictions while french based sd micro plans to hold meetings to discuss its next move a sign washington's crackdown is being felt outside the u.s a report being published today showing 20% of eurozone businesses say they have felt compelled to transfer technology to maintain market access. that's up from 10% just two years ago. >>> meantime, travel and leisure stocks under pressure today. ryanair posting its weakest profit in four years and said earnings could fall further next year citing overcapacity issues, brexit and delays in the delivery of boeing 737 max jets. that stock down about 5% let's pivot to india where markets posting their best performance in three years after exit polls phi cast prime minister mody to stay in power for the next five years. up 3% to 4%. if modi is declared the winner he'll have to figure out how to work with trump. unemployment at a 45-yea

seema moody joins us with a breakdown. >> sort of a mixed picture across europe, germany and the uk highern the day. banks dragging the markets lower. the stock 600 bank index sitting roughly 4% below its december low, but sharply over the last couple weeks amid growth concerns across europe the italian bank index falling below its 200-day moving average and down today pivot to tech too. the sector is higher but the huawei fallout continues as the u.s. is considering black listing more chinese firms two of britain's wireless carriers are halting the launch of huawei phones on their 5g networks softbank owned armed holdings is reportedly suspending business and two japanese firms softbank's y mobile, kddi, have said that they're postponing the release of huawei's newest phone scheduled to launch later this month. there are some potential winners which i don't think we're discussing enough. since the trump administration first announced these plans to crack down on huawei, european telecom providers that are working on 5g are up substantially. you can see ericsson up about 10% and nokia up n

>> seema modi back in the newsroom guy adami. >> you have a sock puppet?> i often shop at the etsy. the one down the street on sixth avenue i'll say this. the quarter was fine user growth and active buyers are up and active sellers are there, and the problem is valuation and apparently they care now i think they're running in the competition and the market cares about valuation and i think there's more room to the downside despite the fact it's lower on the after market. >> the stock has been on a heroic run and it's up 25% over the last year and the valuation is difficult, but they are giving you 30 to 33% top line growth and the margins have been accretive. this is not a stock that i would want to own here, but i understand where people are chasing growth and multiple indiscriminate and here we go. >> does that something about where we are in this market facing growth? >> everyone said it was abindividual and amazon couldn't compete with it and that's coming to an end >> that's the problem. i think people are looking at this now saying okay, we've allowe

prisoners and all 11 s&p groups down, and even utilities and those had been considered havens and seemaodi is breaking it down from the new york stock exchange. >> brian, that's what was so interesting about today's price action the sell-off on wall street was widespread leaving no sectors behind and yes, even the interest rate-sensitive sectors that tend to outperform when yields fall. utilities, real estate and consumer staples all caught up in the market downturn, but with trade fears rising, investors have been buying up dividend-paying sectors and check out utilities up about 5% in the past six months outperforming the broader mark, but some traders say that the sector's valuation is becoming a bit rich, now trading at 19 times forward-looking earnings and much higher than the historical average of 15 times and it's trading at a premium of s&p 500 trading 16 times the russell 2000 and the small cap index seen insulated from the u.s.-china trade war as it generates a large percentage of the revenue war right here in the u.s. and this hasn't stopped investors from hitting the sell bu

seema mo seema mody joins us with a break down. >> good setup from rick with a look at the german bundsituation is in europe, staging rebound across the board. italy is the exception amid this ongoing budget tussle with the eu axle springer, that is the best performer on the broader stock it is in talks with private equity firm kkr about a strategic investment stock up 22% for the month of may. european stocks are down over 4%, almost 5%, slightly better than the s&p 500 for the month of may again, this tariff backdrop, these economic concerns still permeating across the nation figures out of the u.k. show april car production plunging 44% year-over-year that's the largest annual drop since 2009, some movement in the british pound today, but still trading at the worst levels of the year against the u.s. dollar let's also turn to the ipo market we have an ipo in europe, watches of switzerland, and it is up about 13% on its first day of trade in london after pricing at the highest end of its expected range this is europe's luxury watch retailer it has plans to further expand into the u.s

markets are taking that in stride seema? >> retail is a big topic of discussion, how they deal with the tariffs, eat the cost associated with the 25% tariff or pass it on to the consumer? this week a growing number of retailers said the 25% tariff will push them to raise prices still, the big retailers, wal marpt and target over the special names like kohl's and jcpenney, their diverse product portfolio, more flexible pricing and slowly improving digital strategy comps have been better at big retail up 4.8% for target versus a 5.5% drop at jocpenney. shares of target and walmart outperformed the broader retail sector, target up about 14% just this week. kelly, back to you >> seema, thanks very much it has been a big week for retail and we're beginning to get forecasts and studying gauging the impact of the new tariffs on the u.s. economy. a lot of them aren't pretty. you must be so relieved. we have our forecasts, our analyses, steve. >> i am never relieved when the forecasts are downward first, kelly, many economists have d

kelly >> seema, thanks >>> for more on retail, let's met bring in morgan stanley's retail analyst and worldwide enterprise ceo and cnbc contributor. great to have you both here. jana, and i will just start with you. we talked about separating the winners and losers in retail is that the theme today? what is target getting right when they're supposed to be one of the most impacted by tariffs? >> the tariffs are really not hitting hard yet what they've done right is basically retailing 101. they've gone back to being the target they tried to be in 2006 when i thought they were the best retailer in the country and they're getting that consumer they're doing things like buying collections and it's working they're doing a great job. i would not avoid, they, amazon and walmart can all be great at the same time. >> and you had just upgraded them to equal wait on monday after a five-year underweight call, is that right? what gave you the confidence to do it then and what are you seeing today? >> as jan said, i think they recaptured the cheap chic. they got their merchandising back and rebrand

seema: absolutely.the data role in have the job numbers we have just showed. what is the incentive for the fed to cut rates? it is more interesting to say what would trigger those fed rate cuts coming through. one thing i will see is if china fails it does not lift up the global economy. you continue to see negative earnings numbers for large u.s. multinationals. maybe that would be something. if the inflation pressure continues, there is no reason for the fed to move. the other thing is if growth continued as it does and you do eventually see inflation pressures pickup, i would point to earlier this week that we had christine lagarde talking. why isn't inflation picking up? she said it is a mystery. you have the head of the imf saying it is a mystery. at some point inflation pressures may come through. at that point, what does the fed do? does the fed come under pressure to raise rates? alix: it is a mystery. great to see you both. david: coming up, reading the u.s. economy through the railroads. we wi

seema mody is down at the new york stock exchange. >> the market is starting to quantify the effect of higher tariffs. we have earnings from the second quarter showing wall street sees profits growing by less than 1%, down from the 2.8% estimate in early april. why have that come down so much? three major factors. the dollar is getting stronger, right around the two-year high which makes goods more expensive for customers overseas that could weigh on sales growth as will higher import duties, especially the retail and comer names that produce goods in china. don't forget, wages have been on the rise in 2019 the most exposed sectors as we've been discussing, and costco, ulta are getting set to report after the bell. those stocks have had a very strong 2019. costco up about 2019 this year we'll see if they can maintain those gains. >> that's one to watch seema mody, thanks >>> to the latest in the trade war where china is making the next move. let's get to kayla tausche in washington. >> u.s. soy bean farmers hit from multiple forces, delaying and stockpiling crops. china halting good wi

the other big geopolitical story right now to focus in on seema moody, thank you. >>> let's get oversue herera for a news update. >> good morning, morgan, everyone here's what's happening at this hour president trump asserting executive privilege over special counsel robert mueller's report escalating a battle with the democrats on the house jur hushry committee the move announced in a letter to gerald nadler minutes before they were poised to hold attorney general barr in contempt for defying a subpoena. >>> secretary of state mike pompeo meeting with theresa may to discuss ties amid tensions with iran and he arrived in london after abruptly canceling a trip to germany to make an unannounced visit to baghdad. >>> the taliban attacked the offices of an international aid group in kabul setting off a huge explosion battling afghan security forces. at least nine afghans were wounded in those attacks >>> and severe storms whipped through texas, leaving behind major flooding in the houston region some areas reported up to ten inches of rain and other regions received 76 inches in a 12-hou

seema mody is back at hq with the breakdown. >> we'll get to that in just a second european markets down2% across the board led by italy. tech and auto stocks leading the way lower as is basic resources. a lot of attention as you just said focused on the u.k. today as prime minister may faces mounting pressure to step down after one of her key cabinet ministers resigned yesterday that marks the 36th ministerial resignation during may's tenure. may could announce her resignation in the next few days analysts expect a more hard line replacement. in response the british pound down and trading at its lowest levels since january, now down 14 straight days versus the euro >>> amid those brexit concerns a fresh batch of european data suggests an economic rebound to start 2019 could be short lived. the euro's own pmi missing estimates but what we saw was particular weakness in germ anyplace the country there pointing to weaker export demand germany is china's largest trading partner. meantime, a key measure of business confidence in germany unexpectedly dropping to a four-year low underscoring w

. >>> let's jump over to seema month moudy now looking at the cried owl. >> stocks moving down sharply lower now, down 5% on its worse day in six months as stock prices rise and demand flows starting with you, we plunged through the $60 level today. fears of slowing growth are not new so why is oil trading down >> i think oil is trading down because there's way too much oil here in storage. that was really the catalyst to get us going and oil is one of the most risk-on assets in the world and it looks like nobody wants to own anything that's risk on. particularly if the trade tenses with china are going to stretch out over at least a month. so i think anybody who is involved in crude oil sees there's too much of it, we're going to use less of it. let's sell it. >> jim, what's the important information to watch on crude? >> you saw monday and tuesday looked like it was breaking oust of the consolidation part pattern on the upside. to me that was a powerful signal we will know it's afoot when it breaks out of the recent fewer hour consolidations. when it's 57.90, we know it's game on. >>

guys, thanks, and huawei fred kemp, seema mody, appreciate it.ock has doubled this year and is on a record winning streak we'll tell you that, plus the red hot ipo that's having its rsdaev, wot y erand a look at today's big movers and shakers today's big movers and shakers right after this. man: stand up if you are a first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world which we live equally distributes talent. but it doesn't equally distribute opportunity, and paths are not always the same. i'm so proud of you, dad! man: i will tell you this, southern new hampshire university can change the whole trajectory of your life. southern new hampshire university through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the powe

seema modi at the stock exchange let's trade the close.uise from td ameritrade how are you trading apple after the tough week for the giant. >> a lot of are saying about apple and the other names the pullback if you have the longer investing horizon can be an interesting entry point. for apple one thing nanlt notes that i wanted to question a little bit was there that there is not much impact in the supply chain for apple for the trade discussions. until we get more charity on the outcome of the discussions it's hard to say whether the impact to the supply mcmahon and the expense side of apple's income statement will be hurt a lot or if it's going to be a little bit more of a not much of an impact to their bottom line. >> you know you are also watching amazon and facebook they've opinion momentum leaders of the market over the last few years. what's the action telling you about where the mechanic is right now? >> well, it looks like for amazon they are back off the highs. if you think about it it was up at 2000 not long ago and north of 1,

seema could attach a has this report. golden sands and bright lights.ttentions and rumours. rumours that romanian migrants are trying to steal children. and they're not true, but they've left some in the community very upset. at least 4,000 people from eastern europe to live here. many of the romanians don't speak english, so we hired a translator. the rumours started on facebook earlier this year. thousands shared this post alleging so—called "gypsy foreigners" have been trying to steal children, along with this plea... it quickly generated hundreds of inflammatory comments. the police contacted those suspected of being behind the false messages to try and make them stop posting them. we've done a lot of work within hate crime in great yarmouth. we sensed pre—and post brexit that there was this tension, and we felt we needed to address that. so we've put things in place to make sure that we are constantly reviewing community tension. from the dozens of people we've spoken to here in recent weeks, there's a real sense that even though different communit

seema. >> this is an interesting one.connection with the qualcomm-apple patent settlement, a number of executives at qualcomm have been granted generous shares in the company. steven mollenkopf, the ceo, getting around 40 million shares, which equates to about $35 million. we're not sure what price they were granted at. excuse me, 40,000 shares 40,794 shares for steven mollenkopf, the ceo of qualcomm. a couple other executives also being granted shares remember, qualcomm was expected to get at least 4.5 to 4.7 billion dollars from apple as far as its patent settlement guys, back to you. >> seema, thank you very much for that 40,000 shares equates to about $3.4 million pretty sizable for -- clearly that's a huge move in their share. >> i guess it shows you the height of the stakes for qualcomm with regard to this the whole strategy was essentially playing hardball on these matters and therefore it was sort of a bountdy for having, you know, won at least financially in this settlement >> odd that it's just five, six people

seema verma, she's the administrator. it's not just her. i want to quote from the trump administration's statement of policy. if h.r. 986 were presented to the president, his advisors would recommend he veto it, wrote the trump administration's statement of administrative policy. the president has repeatedly made clear this president will protarrant county, texas people with pre-existing conditions. 2018 guidance -- will protect people with pre-existing conditions. 2018 guidance would not allow the administration to waive the requirements in place around pre-existing conditions. the title of this legislation gives the misleading impression that it will enhance americans with pre-existing conditions, closed quote. put simply, mr. chair, this cynically titled messaging bill is all about scoring political points and not legislating, which is what we should be doing. you see, if democratic members actually cared about individuals living with pre-existing conditions, they'd govern and lock in these important safeguards. but since democratic lead

guys, send it back to you. >> seema, thank you so much. get to rick santelli >> good morning, rick. >> rates continue to aim lower, this is despite the fact that even though our economy is not fully horsepower as it was in 2018 it is certainly doing well especially if you are considering employment down they go none the less let's look at a february 2018 two-year note, they're at 2.15 it goes back to february, that's steadily lower, 10-year right now is down three. they traded as close as 227 getting close to 2.25. a l interest rates get low, alternatives are much more possible and a lot of substitution is taken place. that's the etf, dollar index, you know it jumped up 98.40 intraday last uniqweek it has done many times shooting in the 98. that's really been ever since, we keep on moving higher finally the euro verses the dollar, many people are looking at it based on the election in the eu and some volatility take you back all the way to may of 2017. carl, david, jim, back to you. >> we'll you see you in a little while. jeff bezos have j

. >> seema, you sound like you've been drinking bill barr's kool-aid!treet and ask is he going to get away with this? is the president of the united states going to get away with all of this that has been exposed, the last words of the mueller report are that no person is above the law with regard to donald trump. that remains to be seen. >> we love having you guys on together. come back. >> oh, god. >> you know you love it, seema. love you guys. thank you very much for being here, paul butler. this has been a fun show. we will have a little more after the break. the break. - [narrator] do you remember that day? that day you met your hero? - ms. bird, do you think i could be a champion like you? - of course you can. and you can call me sue. - [jibber] jibber jabber, coming through! salutations, famous female of orange round ball. - would you like an autograph? - [jabber] excuse me. (crowd muttering) - [woman] is that paper mache? - it's you. - [woman] wow. - [narrator] jibber jabber ruins everything. - is it? - [woman] i am confused. - [narrator] at sym

i'm seema moody., still seeing some relative weakness in financials and industrials the second best performing group so far this year behind tech stocks also want to draw your attention to individual video game makers, activision blizzard all up about 2% sending it to you downtown >> i will take it. thank you, seema >>> well, time to turn to sara and ask, what else is coming up? what will be coming up will you be talking about beyond me on the "closing bell" >> insane. more than 60 times sales now. >> yes. >> highest valued food company maybe ever we'll check the close for beyond meat and the entire market and talk to mark thompson, ceo of the "new york times," the stock up, exclusive interview for "closing bell. gary locke, former u.s. ambassador to china will talk about the latest flare-up and tensions between the u.s. and china and whether we're working toward a deal. cisco earnings after the bell today. currently the top performer on the dow. >> very big day shaping up we'll see you on the "closin