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tv   Closing Bell  CNBC  June 3, 2016 3:00pm-5:01pm EDT

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michelle and twul auchlt it's been great. thanks so much. >> thanks for the gummy bear. >> thanks for watching "power lunch." "closing bell" started right now. . . hi, everybody. welcome to the "closing bell." i'm kelly evans with the new york stock exchange. >> and that makes me bill griffeth. stocks well off their lous. the dow down 148 after that really surprising jobs report showing growth of only 38,000 jobs for the month of may. the smallest gain we've seen since 2010. on monday, wouldn't you know, fed chair janet yellen gives a monetary policy speech. is she rewriting the whole thing right now? is she making plans for summer vacation for herself and her federal officials? we'll tell you what to expect
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coming up here. >> the former ceo of mcdonald's says the number may look bad but the current employee picture looks even worse. he'll explain why coming up. >> and donald trump calling that jobs report in his word a bombshell. larry kudlow and barney frank will be along. >> and joel greenblatt gives us a peek into his strategy and why people should own a bucket of stocks like apple. he explains coming up. >> so much more. we've got a lot of things planned, coming up. let's talk about the things that cattalized the jobs rohrs. steve liesman, what in the world happened here? >> you know, it was a week number. no sidestepping it was well below what the street was expecting and now everybody turns to the fed chair janet yellen who steps up monday and will have to react to this
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dismal jobs report. remember she said she thought it was moving in way to hike it in the coming months but now says steven stanley, i expect that chair yellen speech writers were told to clear their calendars for the weekend and a new speech outline is this morning. over at rbs they may think yellen may pull a kevin bacon/"animal house," all is well. what do you think she'll take a page and that waiting is the smarter move right now until things clarify. we'll keep it on the table. kelly, there is a little bit of evidence that it could well be an outlier just in march 20615
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we printed an 84,000 jobs report that was 100,000 or more below what the street estimated. came back the next month with a 251. there is some precedence for this kind of volatility, kelly. >> hope springs eternal. thank you. let's move. bob pisani is moving the action. bob? >> hello. some surprises but something's fairly typical. something happens when you have a big miss. bond yields drop. of course, that hurts spanx. we're having that kind of reaction. look at morgan stanley. same with citigroup. then take a look at citigroup down 3.25%. another typical reaction, the dollar sometimes drops. it did drop noticeably on the weak jobs report. that means the commodities tend to move up. here's freeport-mcmoran, look at
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that. up 3.4%. all of the steel stocks, u.s. steel up 2%, 3%, 4%. in terms of the sectors, fairly typical of what you would think might happen. take look. the more cyclical sectors like retailers are weak where the more defensive sectors like consumer staples tend to be a little bit stronger and utilities, anything that's interest rate sensitive because they compete against bond yields. doing well. where is the market going now? what's next? you know the bear arguments. they've been out there several months. they're arguing that earnings and revenue growth is negative. they're saying there's a lot of mackerel risks out there. all of it is true, but, folks, have you watched the stockmarket today? look at this. we're about to go positive here. in fact, the vancouver canucks has turned negative a short while ago. why is this happening? some who are buying protection
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against the fed rate hike don't need the protection or don't feel they do. that's helping the market a little bit but remember what's going on here. tina, most people feel there's not a lot of alternatives to owning stocks. bill and kelly, if that turns out to be that they think the banks are toothless tigers and that nothing will help them, that may change and suddenly hash may become more attractive. that's not going to happen with one-day events. watch this market for a positive close. >> all right. bob. thank you very much. we'll see you on the close. as a matter of fact, with the dow down. let's get to the "closing bell" exchange. jamie cox from harrah's's financial group, bill lease, and rick santelli has recouperated
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enough. he joins us from chicago. john, the question we were talking about yesterday is would good news on the jobs be good news for the stockmarket. here we got bad news this morning, but the market's taking it in stride. how do you read the market's response? >> we clearly are taking it in stride. investors were waiting for something to happen, waiting for something to occur. it was very hopeful. if you looked at the trading activity on wednesday, thursday, friday, the market opened low, closed higher. were ooh seeing it today. i think what we got today clearly was bad news, but what it's done to investors, it's bumped that fed rate hike out to at least july and now we know what we're going to hear in jup and the rest of the trading month. so that little trading break we see now is a little more transparency of what the fed is or isn't going to do the next few weeks.
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it's giving the investors a little bit more confidence right now. >> is that also providing some support here? >> i think so. i mean if you look at the stocks that are doing really well today, look at the oil and gold mines, these things are ripping hire. anything that has a relationship to the dollar is doing well. go back to the jobs numbers. 184,000, very key number. no incumbent party has ever retaken the white house with a jobs number under 184,000. so we need to watch the revisions as they come through. it could become a trend. >> under that level any edmonton of the year, jamie? is that any month going into the year? >> correct. >> all right. >> we'll bear that in mind. bill lee, you were with us a couple of weeks ago and you felt the fed would not be raising their rates this summer. let's remember. you said this. >> where market prices things at
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30%, 50% in june and july and 50% when you get to september and that's why i think it's september right now. >> all right. you didn't see it until september. why, and do you still feel that way given this morning's number? >> even more so. in fact, janet yellen is jumped up and down with a sigh of relief. they were all saying it's time to move and just this week the doves came out and say, no, we've got to wait. today's number is decided for her. she's trying to say we need to wait and i think she'll be waiting through the summer. >> but, bill, she just said when she was interview thad this summer would be appropriate for a rate hike. she was hardly facing a revolt of the hawks. she is one of them. >> be careful. she said coming. that's no definition at all. it could be anywhere from june to september or october. coming means forthcoming.
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it doesn't mean when. that's why she was so careful in saying that word. she's saying, i get what you're saying and it's time to start moving but not now. >> oh, yes. fed speak. don't we love trying to determine what it means. what do you think. >> everyone knows how much i love the market. i love them, traded on them. now i report on them. but who made the special class so darn special. listen. i know they're important because in many ways they're reflective of the larger perfect but i still say the federal reserve should quit try to be a day trader and live where they're such big traders and look at the big picture. i contend i walk away with this jobs report thinking a couple of things. first of all, i'm not going to
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parse the words like our guests did. the minutes we see out of 2200 that are actually written down during the meeting, they intentionally wanted to show case more intensity on a tightening and now we're back to the word game. they need to rise above this. this isn't about data dependent. this isn't about the notion of one month after years of a sustainable 2% economy, which isn't optimum, but it's certainly a lot better than the crisis. they need to raise rates, and not because of data and not because the timing's good, not because they missed the window in 2013, 2014, or 2015. but you see what -- kelly nailed it. down a penny and a half on the dollar, which was unchanged. unchanged on the week before the number. it was all about today. that's not the way it's supposed to be. and all of a sudden everything around the world looks at what central bankers now may or may notdo. we see do intense loans on boons. seven base points.
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lowest shield ever. we have much of the curve in negative territory. bill gross said it best. free market capitals will not survive a long period of negative rates. i think our federal reserve needs to really, really have some introspects about what they think about the big picture, and i think it's a lot more than data dependent. >> fitch just told us that $10.5 trillion is the total debt. bill, go ahead. >> i was going to say, rick, you're absolutely right. we need leadership at the fed. the leadership of the fed has got it nailed and that is something that doesn't just depend upon today's one number. we move rates and we should be moving rates and they should just get on with it. >> to follow up on it as rick was saying. we need do something now. they've got an election coming up. if they're going to do something, they have to really evaluate it and look at what
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they're going to do in july. >> jamie, where what do you do in the meantime? >> there's a lot of places. i'm going to be labeled a pariah. european banks are a spot you can start to build positions in. they're terrible right now. they're getting hammered. dividend yields and overtime it will be a good place to put money. also if you look at the recounts, you finally saw recounts. proceeds, oil bottoms. four, five months it happened. energy companies, these are going to do well in the coming months as normal prices normalize and these companies will do well because they're going to be drilling for more oil. the shale play in the u.s. is going to be coming big and strong. >> we have to go. i want to clarify one thing on our way out as we do. are you upset that the feds report is responding or they shouldn't be. you say they should be focused
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the fundamentals, but isn't this news focused fundamentals? >> my job is to tell you what they should be doing. what they should be doing is move yesterday. because the distortion is there and the fundamentals being at the low number we got today is a reflection of some of the distortions that's out in the marketplace. >> and before we go, one more thing, john. the s&p has been hugging 2100 forever it seems. big selloff and look where we are. back to 2100. is that meaningful for you at all? >> it is meaningful. it's a psychological level. we hit that high in april, december. that seems to be the resistance level there. it has been a big pivot at level. so we've got that gap of those 15 points. >> all right. thanks, guys. we made it. have a great weekend. >> have a great one. >> 45 minutes, a little more than that to go.
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as we mentioned, we're going to be watching carefully through the hour too see how the stocks wind up. the dow's now down 29 points, the ns&p is down 5 and nasdaq, 26. ed rensi is going to be on later. also ahead joel green plat from goth ham tells us why he owns what he calls a bucket of apples. you're watching cnbc, first in business worldwide. thank you. imagine if the things you bought every day earned you miles
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trading session and the dow is down 19 points. they thought they could withstand that kind of decline especially what it would mean for the fed and taking june off the table. >> in fact right here we have
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the latest headlines, jeffrey gundlach talking about it. >> calling the report a body blow to the market. now, for today's value edition i sat down with joel bleen greene ballot from gotham asset and he told me why apple is on his bucket list. >> the two -- i guess, thoughts on apple is, one, it is a hardware company. we all remember blackberry. everyone had a blackberry. it had about 50% of the market, seven, eight years ago. it's now 1%. they view apple as another hardware company in the technology field that will ultimately crash and burn, so apple will be one of those.
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others would say , no, no apple is a network of products that work with one another and actually very different from a hardware company all their companies play off one another and evolve over time to stay current. the answer is probably gray and i don't know. >> whoo is it okay to invest when you don't know? >> right. there are different styles of investling. what i would say is in apple's case, i can't -- apple is one company, and i don't know if it's going to work out. it's gushing cash right now. it has huge returns on capital. it's got a very nice niche. and i don't particularly know whether apple will work out, but i don't own just apple. i would say i own a bucket of apples. i know my bucket is going to work out. they tend to work out very well.
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>> you can catch the full interview at cnbc.com. >> what he's saying is he looks for companies that have the same profile. >> at least two characteristics. he made it widely known in 2005 "the little book on how to beat the market." you have the earnings capital and the relative net worth of a company. you know, he has a website. businesses are listed there. so before the interview i thought it would be interesting to see what are the top 30 names that appear to qualify. apple was on that lit. gillian, fitbit, cisco was on that lit. viacom. >> really. huh. >> part of that discussion was we know these names are cheap for a rb. why does this work. >> i saw the smirk on your face when he mentioned blackberry.
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you were thinking of me. >> i feel you. it is a great camera. >> it is. looking forward. 40 seconds left in the trading session because they took the other board down. the dow down 18 points. trying to crawl back all the way from a decline of 145 points on the open this morning. >> now the war of words between hillary clinton and donald trump is heath up. former massachusetts barney frank and larry kudlow coming up. ed rensi will be coming up.
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welcome back as we head toward the clois. another session where the dow is moving into positive territory. what's so interesting about today's comeback which it already is it came off that 8:00 a.m. relative to the jobs report. that said the dollar has dropped about a point and a half. that's often a good move for stocks. could be providing support. >> and yields came down appreciably as well. >> yep. a check on signet jewelers as well. it's falling again today. the owner of the kay's, zale's, and jared's company denies handling customers' jewelry or
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engaging in diamond swapping. signet says incidents of misconduct which are exceedingly rare are dealt with swiftly and appropriately. >> all right. let's talk about these jobs numbers, launching a new debate on whether the fed will be able to raise rates any time soon and you probably saw almost instantly after the numbers were released. donald trump tweeted out. terrible jobs report. only 38,000 jobs added. bombshell, he wrote. >> joining us now at the intersection of politics, barney frank former massachusetts senator and cnbc contributor, larry kudlow. >> good morning. >> anything terrible about this to you, mr. frank? >> no. only that it was a one-time thing. there was an uptick in the wages.
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obviously if if were to be repeated it would be a problem. given the strong list of increases so far, i'm not terribly worried about a one-time thing. it's also the case that it was lower because of verizon. then it would still be low. but it does seem to me, clear argument for something i believe that the fed should not be in any rush to raise rates. there are those who think the fed should be raising rates because when you're central bank, that's what you're supposed to do without regard to what the economy is calling for. in that sense i hope that will lead the fed not to give in to this pressure. >> hey, larry, who does this report help more? does it help donald trump, do you think? >> i don't know right now. can i say something about the report itself? i totally agree with barney. the fed should not raise rates. that's been my position for months and months, so i'm staying with that. let me say one thing.
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word of caution here. if you smooth out these jobs numbers and look at it on a three-month moving average, we've had a steady decline down to just over 100,000 in mail. we had a pretty steady drop and i want to add to that. profit is dropping, capital investment is dropping, you saw the core orders and shipments. they're dropping. business investment is dropping. the point i'm making is i think we are in a mild business recession, not yet a total recession for the economy. but it's a mild business recession and i will simply say unless there's something to reignite businesses, then that recession may spread to the entire economy. >> where does that leave the fed, larry? rates are only at a quarter right now. >> to me this is not a monetary issue. >> they shouldn't react? they should do nothing?
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>> they should do nothing. just do nothing. the best thing the fed can do. actually, no. let me amend that. they should do nothing and say nothing. that would be even better. having said that, let's slash the business tax rates and slash business regulations to reignite investment and then we'll see better jobs and then the fed will be able to normalize. >> those kinds of tax declines have been called for many times, barney. how would you solve the slowdown we're seeing now? what would you do? >> by creating something that would create jobs, stimulate demand and improve productivity. it's long overdue for us to do a major national infrastructure program. we can borrow cheaply now, which is a good time to do it. you get goods moved more quickly. people to work better. you cut down on that and you put people to work in a constructive
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way. i very much agree. this is not for the fed anymore. people should not overburden monetary policy, but i do believe this is a time we have starved our physical economy. we have slowed down the workings of our economy. we're long past the point where it's time to remember what dwight eisenhower did at his presidency and do a significant infrastructure program. bridges, highway, general more demand, put more people to work and stimulate economy. >> i've about got both sides. before i let you go, barney, you may have heard, maybe you haven't, the guy who holds your position in the house has introduced legislation that would essentially walk back parts of dodd frank and it would revoke the voe ka rule before it's imposed. what's your response? i can imagine what it is, but do you think it has any chance here? >> i think he may be accused of
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being an agent for hillary clinton. i can't think of a worse position for republicans to be in to say not change a piece of this or that or tweak it but to essentially go back to where we were makes no political sense. the only thing i would say is this. representative hensarling has beened a odds with president obama. he tried to kill the banks, the insurance. as a political issue, i think it is a very big mistake if the republicans plan to do this. if donald trump endorses this, i'll be happy to see this. he's handing hillary clinton a great issue. >> i want to say one thing. first, jeb hensarling is a very
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smart guy. one thing we didn't raise here, the so-called consumer protection board. it's a regulatory agency. it has run amok, damaged credit, hurt people across the board. it basically has no oversight from the congress. i think that the consumer financial protection board should either, "a," be abolished, or, "b," completely restructured. >> can i respond? >> barney? >> larry's attack was notably lacking any specifics. the consumer protection board has done a good deal of work protecting the consumer. i have seen no specific evidence about it running amok. it has worked on credit cards. in fact, let me make this point. jamie dimon is quoted in today's "wall street journal" that he's most worried about auto loans, that that's the most serious danger. auto loans are one area over my
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objection were exempted by a political coalition of democrats and all the republicans from a consumer protection financial bureau. so let me submit this. the area that jamie dimon and others are most worried about and may be a problem because of sub prime loans that should be made is one area. it doesn't just protect consumers. by protecting from that it helps the economy protect against safeguards. >> auto loans may be a problem. i don't disagree with barney on that. but having said that, you've got all kinds of regulatoregulators >> where have they been, larry? >> look. maybe this is a problem that -- >> they haven't been there. >> i want to say this. the article in "the wall street journal" about the consumer financial protection board stopping -- essentially stopping payday loans is an example of their power run amok. they should not have the authority to stop that.
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my biggest bead is profits which is unheard of and it has no authorization. >> can i say one sentence? >> one sentence. >> in my time. in my time in congress, i wut as 40 hearings heard by republicans. oversight hearings in which they claimed there was no oversight. regular hearings, regular oversight. i don't understand where this comes from. >> financing. financing is everything. >> larry, you've got to get bashny on your radio show. i'd listen to that every time. >> i think the world of barney frank even though we disagree. i just think, barney, you shouldn't have put it inside the federal reserve. that's my basic point. >> geesh tot go. have a good weekend. see you later. >> by the way, i think they had a whole issue because it went off auto lending practices that
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were discriminating. >> right away. >> yes. >> right away. let's go to cnbc news update with sue herera. sue. >> ash carrot was at a meeting and at a joint news conference the two spoke about the importance of cooperation between the countries. michelle obama, the first lady, gave her final commencement speech as first lady. she spoke at the 170th graduation of the city of college in new york where she delivered an uplift iing speech >> we know when we learn from our strengths, when we learn from each other, lean on each other. in this country it's never been each other for themselves. no, we're all in this together. >> the federal judge says the u.s. women's soccer team does not have a right to strike to see improved conditions in wages before the summer olympics, ruling they remain bound by a
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no-strike clause in their earlier agreements. and, bill, this one's for you if you're an otter lover. you're going tloo i love this story. they reunited a 2-day-old pup with her mom in cal. there are very few successful reunions. congratulati congratulations to them. >> i'm going to need a moment. >> you should have heard the squeal as well. >> i know you think that there are no natural predators for otters. >> you sound like chatter. my son did the same thing. >> however, i went onto otterworld.com, and, yeah, they do. so i'm not sure. you might want to charge your opinion. >> i know. >> there's killer whales, there's great white sharks. and believe it or not in parts of northern california, eagles.
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>> well, look, killer whales don't like anybody. >> hence the name killer whale. >> my son did the same thing disputing it. but that's his prerogative. >> that's his babe. let's watch him throw the babe in the water one more time. >> let dees that. >> i'll see you in an hour. >> 25 minutes left in the trading session. no, not positive yet. the dow down ten points. a leading trader tells us what he's watching on the final trading day of the week. >> later blackrock's rick rieder on what he expects. stay tuned.
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. 20 minutes left on the trading session. the dow down. this comeback, so many people thought that we would see this market come back. why do you think it's able to do that even thereafter very weak jobs report this morning?
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>> the weak job was the catalyst for the downside move. sometimes when they sit back and take a look at them, sometimes they re-evaluate. >> you think they're taking comfort that the fed won't have to raise rates? >> that's part of it. you know, our people getting out of the market. it's been that way for a long, long time. the trend has been up on a technical level we hit a spot. they supported there, they were expecting to support them there. >> and now we're back to 2100. is that important to you? >> it could be. we'll going to have to see. this is going go an interesting month. we've got a lot of big days ahead. even today we're seeing good volume going into the "closing bell." we're starting to see some strength. we've got an expiration, the big rebounding which comes the day after brexit and the end of the six-month period, the end of the quarter. a lot of people here. so a lot of big stuff in front
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of us. >> a very heavy calendar in front of mr. charlop. >> dr. charlop. i have a ph.d. bill. >> dr. charlop. >> the s&p is down just 3. the nasdaq is still down about 24 points. it's the under poerner. up next what the disappointing employment report means for the economy and former mcdonald's ceo ed rensi will speak with us exclusively. stay tuned.
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lending club under praerchlt new york's top financial regulator is now expanding its investigation into so-called pier-to-pier lending. last month they sent a subpoena to the lending clclub seeking information about its lending practices. lending as you may know is an online way to match borrowers with lenders. on this friday we look at the economy and planting the seeds early to mary townsend joins us
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from mon santos headquarters in st. louis with the latest look on where the jobs are. mary? >> hey, kelly, i'm at one of the greenhouses. while you may not think that high-tech and ag go together. they do. mon santos needs a high work force in order to grow. so they're using college internships to sell students on the idea that ag is cool. growing up in little house, arkansas, tracy never saw corn or soybean, much less the farming products. >> i never gnaw how much went into farming and once i got on the tractor, it was like stepping onto a spaceship. >> his future was not construction management as originally planned. >> normally you grow up seeing
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farmers on cartoons an tv. they don't seem like it's much to the job, but with monsanto, i learn that it's a lot of science and technology that gross into growing the seed that we sell. >> the payoff, a production manager at monsanto, checking billions of soybeans a year before they ship to dealers. another payoff, knowing he has a hand in putting food on our tables. >> it's great to know the job i do has results that people can use and results that people can s see. >> now, enternships are only one of the avenues that mon santos uses to fill its needs. and the needs are great. are cent survey says the number of ag jobs exceeds the college graduates who can fill them by 22,000 a year for the foreseeable future. back to you. >> mary, thank you so much. our mary thompson in st. louis. in case you haven't heard,
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only 38,000 jobs were created in the month of may, something our next guest says signals how soft the underlying economy is. he's been saying it for a while, by the way. >> with us is former ceo of mcdonald's ed rensi. welcome to you, ed. >> thank you. glad to be here. >> when you focus on the fact that we only added 38,000 jobs and the unemployment rate came down 7.5%. what is going on to the u.s. worker here? >> well, as part of the job creator's neckwork, we focus ons bys that are the largest produce ore f jobs in the united states and small businesses, i own three small restaurants myself, we're being crucified with taxation, overregulation, these changes in labor laws with full-time workers, part-time workers, the affordable health care act, forcing people into
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part-time jobs that want full-time jobs, the think is in absolute turmoil. i think we're in small business recession and if we don't start opening up the opportunity for entrepreneurs to grow their business, we're going to continue to see this drop in jobs. we need to energize small businesses. if you take a look right now, we've got the heist unemployment rate for young black men atlanta has ever been in the history of this country. we can't afford it from a society standpoint or business standpoint. >> where do you stand on the rise of the minimum wage as well and the impact that has on many small businesses and companies leak what you use to run. >> well, you know, it's in my opinion an entry level job wage. when i started at mcdonald's back in 1976, i had a sub minimal wage because i was a student. the state ought to regulate the
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minimum wage. they're closer to the consumer and the jobs than the federal government. and i think in some places like hawaii and new york city, the wages ought to be higher. but to have somebody make 15g an hour bagging french fries which is a low skill set job for life is not the purpose of minimum wage. i used to tell me people all the time. hire a dishwasher tomorrow and have a development planned so they can become the ceo in 35 years. i started as a grill man making 85 krentds an hour and ended f being the ceo of a great wonderful company. we need those kinds of opportunities. >> what is happening, meanwhile, in terms of technology, the kind of automation. are you seeing out there or what's coming to the restaurant and how is that going to affect the work force? >> well, when i was a manager trainee at my old company, we were doing a certain amount of
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volume per year. today they're doing ten times that volume with 30% of the employees with automatic soda dispensing equipment, shake making equipment, automated grills. technology has been moving forward and replacing people for the last 30 years. it's going to continue and it will accelerate if these minimum wage rates end up at $15 an hour and you're going to start seeing robotic arms in businesses everywhere that you would have never thought could use them 36789 d printing is going to start replacing people like crazy. wait till they start doing confections with 3-d printsing. oar going to be -- >> i'd like do some chocola chocolate 3-d prinltsi iprintin >> we were talking with barney frank and larry kudlow.
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which side do you come out on? you know, what part of fiscal policy would you want to see modified to help create jobs as well? >> i belong to the political party of the people. we need to do what's good for people. it isn't one answer. it's multiple answers across all sectors of our economy. but let's not kid ourselves. we're $20 trillion in debt. illinois's bankrupt, chicago's bankrupt. we can't keep spending government money. let's grow the bottom of our economic spectrum and then the rest will come. if small businesses aren't successful, we're doomed. i come out on the side of let's do a little bit of everything and do it smartly and get rid of the political arguments. >> very good. ed, good to see you. former ceo of mcdonald's. boy, are you ready for this? we haven't turned positive yet, but art cashin tells us with nine mintzs to go the market on
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closed orders are -- it's a billion to buy but nothing's happening right now. so maybe we're seeing some pairing off. we'll see. right now the dow is down 18 points. >> and we have eight minutes to go up. up next, david dafrts, weekly market acronym can only be one word and we'll share it when we come back. i asked my dentist if an electric toothbrush was going to clean better than a manual. he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean.
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where does the time go. david darst, your acronym for this week is? >> it's got to be jobs. jobs. bill, kelly, jobs, first is june and july, the chances of a fed increase have drop dramatically based on the very weak and anemic from the greek words without blood, anemic jobs report today. the second thing is "o." oil, the dollar, and most importantly china and manufacturing. china had these weak purchasing managers in the season, numbers this week. i do note that the iron ore
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price has dropped after rise 2g 2% in the month of april. we see where china's going here. manufacturing is philly fad, empire and -- >> time for one more letter and that would might job. >> better news on housing and retailing, retail sales pretty good this week and "s," bill, i'll live that for you. >> second quarter earnings. >> very good. >> second quarter earnings. minus 5.8%. third quarter, 1%. and fourth. plus 7%. if it happens, the market can lift. we'll wait to see. >> thank you. >> we'll come back with the closing countdown. rick rieder will join us on his take of jobs number and if and when the fed can raise rates after this. okay... what if a million people download the new app? we're good.
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and better things. jill, thanks for putting up with me for the last year and a half. >> good luck, jill. >> we're going out with 23 points on the dow. the casey family remembering the legacy of jim casey, the founder of ups. stay tuned for hour number two. "closing bell," hour number two. cue it now, brian. >> thank you, bill. welcome to the "closing bell," everybody. i'm kelly erns and that jobs report just reverberated across the markets but on the bell it doesn't look like we can get into positive territory. despite what we were told was a huge buy order but wasn't buying stocks. the dow closing with dae klein, about 32 points. the s&p closed down six. the nasdaq underperforming all day dropped 28 points or more than half a percent. coming up, the facebook
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board of directors could be preparing for life after zuckerberg. what it could mean for facebook shares in just a moment. first on the panel we have cnbc senior markets commentator and prose markets mike santoli and wreck reader from blackrock and "fast money" trader steve grasso will join us shortly, mike. couldn't quite get into positive territory. >> it's been sticky every day this week. but beyond that, with yields crushed the way they were, with the dollar smoked the way it was after that weak jobs number, you really had those income sectors supporting everything. the utilities up. >> all-time high, i red. >> all-time high in the utility sector and the baskets have traded. that's the game right now.
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also the weak dollar. we had these offsets. >> anybody who was positioning for higher interest rates, this thing came out and just gutted those trades all over the place. >> the story today was the bond market. it's not about equities. it's about the bond market, dollar, movement in gold. really kind of crazy stuff. i don't -- i don't think anybody at the fed is feeling pretty good with themselves right now. i this i what today's job numbers said and what the bond market is saying but not just about the fed but the ecb and fed, they have problems, credibility problems. policy problems. i mean the emperor really has no clothes if it turns out that all these things for the rest of the year they don't talk trades. >> okay. we're going dom back to this in just a moment. let's get a recap from bob
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pisani on the floor with how the averages have done. >> i'm just chuckling because we're exactly where we started last friday. we close at 2906, we're at 2 2099.1. exactly to the penny where we started last week here. in terms of the leadership, it's changed a little bit. the important thing i mentione,. utilities, obviously we were moving. health care continued to be a leadership group. you see a slightly more defensive tone. banks obviously most of the damage done as buying yields moved down and that potentially hurts banks' profitability. what's going on here? the s&p has rallied in the last hour or so all four weeks and it
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did so again today. not only that but the vix turned around and went negative. this is remarkable given what happened with the jobs report and the services report. you see about 3:00 the volatility index, the vix went negative. what happened? why the late day rally? why didn't we see this kind of action today? the bulls are very insistent. this has been the prevailing paradigm for quite a while now in a slow growth low interest rate environmental. there's not a lot of other choices. they also point out potential short term factor, the yellen speech. the bears have been pounding the table for a while now, insisting that this paradigm should change, that central banks are losing their influence and when everybody realizes that, other alternatives, potentially cash, for example, maybe a lot more attractive. but for now, that main paradigm, there's no alternative, is not
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changing on one day's bad economic news. have a good weekend. >> thank you so much. rick reatiederrieder, what you f it? how many trillions are going to have negatives attached? >> i think you have to respect the fact -- this number today was disappointingly weak number, but i think you have to factor it in. by the way, this is a number that tends to get revised. about 55,000 jobs. however, we think the trend is right. we've talked about it on the show. when you see corporate revenues and earnings, there's about a six-month lag. we think we'll be in that low yield paradigm for a while. >> how long and how low? >> listen. i think the front end of the yield curve is priced in. now has to be more deliberate. the back end is where you're
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seeing tremendous international demand. i think the back end we're going to stay around this range because the u.s. still looks attractive to the rest of the world. >> 1.7%. jeff gundlach made this year. he's buying long term. there's no way the fed's going to go in june. what do you make of it now? >> the way bop pisani gave us a recap. if the head had learned we were going to be where we were at the beginning of the week, they would have thought it was a screaming success. i think they're happy with how the market handled that type of the news. utilities, staples, what was the game plan the last time the fed raised rates? you saw the knee jerk reaction. they sold off markets. you saw statements gold rallied, 80%, 90%.
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if you took it, what would be the weak numbers that go for the same exact thing? it's almost goldilocks for all those laggards. >> e van? >> the stockmarket or at least the financials cannot go higher with low interest rates. talked about that boston. of times. it's hard to see bull market and equities with the slow market growing, with the pair time that's basically played out. you either think the bond market has value, which i don't think, or you think the bond market is a disaster waiting to happen. you can be waiting a long time. i've learned. >> we're intransfer erupting this for ju we're interrupting this with breaking news. josh lipton. >> tony fadel penning a letter saying he is deseeding in his words that the time is right to
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leave the nest, that the future of n.e.s.t. is bright and experienced. he said he realized it may feel sudden to some but he said the transition has been in progress since leites last year. he goes on to say he's not going to be at n.e.s.t. day to day but may be involved in a new capacity as an adviser to alphabet and larry page. it's give to game him time to pursue new opportunity. it was fadell and rogers who founded n.e.s.t. he said they're doing about 50% year ore year and million os people in over 200 countries use the product. as you know, kelly, we had numerous reports detailing tension at n.e.s.t., but fadell saying he's auto and also that there's a new ceo.
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back to you. >> josh, thank you, mike. this goes back to n.e.s.t. tony fadell made some kielkd of disparaging remarks and they fired back, hey, this is not our fault, you ruined this company. >> this doesn't happen at divisions of companies where everything is going swimmingly, obviously. i think as a company organization can shrug its off, meaning alphabet. that's why you have the kparmt, s experiment, see if it grows. >> you're right. this is so interesting. this is kind of a cautionary tale. >> know a lot about who's buying you and even then you don't know how it's going be received. how is going be absorbed into
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the organization. >> exactly. >> i'm not commenting. >> steve? >> i think it's more of your conversation than a trading conversation. it doesn't move the needle enough. >> i suppose once something like this does erupt into the public, usually something has to happen. we know how this did wind up. alphabet's tony fadell is going to leave n.e.s.t. what more can you tell us? >> hi, kelly. this is not terribly surprising. the company has been struggling. >> yeah. struggling a little bit to hear you, mark, but, you know, we did mention what happened. what about n.e.s.t.'s other products especially as they're start fwloeg up but in a good
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way. there's a lot of competition coming into the market. >> yeah. i think it's been that they haven't been there in over year. they've been chipping their focus to the software side and energy and building that out. i think one of the major issues is they thought the smart home industry would be a lot more advanced than it is right now. >> would you include yourself as one of those? >> certainly. i think it's something that am zune and apple will still moving in. it could become a much larger industry. it depends. how much it is. >> what would be the smartest move for alphabet here, do you think? >> you know, i think with google, they're spending a lot of focus on home and smart connected devices. you know, i think maybe perhaps move n.e.s.t. into an energy
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blight. it's a huge industry in the utility. >> and, mark, again, would you say that there areny broader lessons or communications given the fact that n.e.s.t. is one of its premier kind of companies within the company? >> you know, it's a cultural clash that they'll have to deal with. you know, n.e.s.t. was down. they're still trading publicly and in private conversations about the tension between that culture and google's culture which is like a much more experimental and research based and less about shipping hardware products. think that was the intention, to set up companies that would operate their own cultures and that's going to be the picture going forward. >> mark, thanks for joining us on short notice here, that's mark bergen.
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let's get to tony fadell leaving n.e.s.t. >> it's interesting. we had a brief chat. we didn't get a chance to catch up about n.e.s.t. he's been under fire of late because of his leadership style. fadell himself still one of the very few still out there and operating part of that general magic group that first broke the mold in mobile computing and so many things floated out of that from palm to android some of many different mobile technologies. sure, he's not done. i thought it was interesting. he had a new pr remember with him outside google and i thought, this explains that. we'll see what he does next.
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but i'm sure he's far from done. >> he wrote a blog post that says this had been in place since the end of last year, but would you say there wu was something that would have been athat would have dropped scrutiny on n.e.s.t. this year? >> well, i honestly don't know. i remember sitting down and talking with him about n.e.s.t. and rolling out thermostat and the way he left apple, the way he talked to steve jobs, he and his wife both worked there, and felt it was time to take a breath ienld & try something difference. it could be a case of that. someone of his reputation, you don't want to leave with this sort of cloud over your tenure out of place like alphabet, google, n.e.s.t. certainly he has opened up a category of technology in the home, internet of things, smart home, that people expect to
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expand from here. google's pushing on that with the new competitor to amazon's echo where people are scratching their head asking why isn't it coming out under n.e.s.t., why is it coming out from google. arguably here it's the most prominent hardware acquisition that google has made aside from motorola which didn't work out too well. the leader in that who came over from apple who's now exiting the company. and when you consider that the pioneer behind android with similar pedigree, again, coming out of general magic left google as well, but, of course, after doing amazing things with android and bringing it to the point where it is today is the biggest operating system for devices on the planet. it's all worth digesting. >> vastly different outcomes. john, thank you. tony fadell also says he's
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pleased to announce marwan is joining. in any case he certainly has a challenge for him. jon fortt, thanks for joining us on the news there. tony fadell is leaving the n.e.s.t. rick, i'm sorry we had to leave you. any you want to leave the folks with? >> we're going to be hard to get income. places like the high yield market will have flows on the backside of this. >> rick. thank you. we really appreciate joining us at blackrock. steve, we'll let you go. you've got a whole hour coming up. the biggest bull calling for a biggest swoon. tom lee will explain at 5:00. ahead facebook wants to control mark zuckerberg's
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control of the company. can they do that since he controls 50%. and this may look like a rock concert but it's walmart's annual shareholder meeting. we'll take you to the highlights when we come back. & in a world held back by compromise, businesses need the agility to do one thing & another. only at&t has the network, people, and partners to help companies be... local & global. open & secure. because no one knows & like at&t. we built our factories here because of a huge natural resource. not the land. the water. or power sources. it's the people. american workers. they build world-class products.
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welcome back. walmart is holding a massive party for invests and employees as it kicks off its annual shareholders meeting. our courtney reagan is there with the highlights. court? >> hi, there, kel. it's a punctuation mark to what becomes a very big week for walmart in its very hometown. it's always a celebration. james corden was the sur pride celebrity emcee. there were performances by katy perry and others. we got in the final minutes of the week's events. following the shareholder meeting walmart expectations handled questions from media. why has their online sales slowed. he said there are fundamentals that walmart needs in place that
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are currently missing. >> we need to have a broad assortment of first-party items, third-party items. then we need to have a good product catalog. those are examples of the building blocks that have to be in place. >> mcmillon does point out the online grocery pick up as a bright spot but until the rest of the pieces are in place, walmart won't aggressive will by marking its website. back to you. >> i think it is interesting this partnership with uber and lyft and what they might be up to in the future. >> it's really a two-city pilot at this point, in phoenix and denver. it's going to be starting in a few weeks. what's hard for walmart and all grocers to figure out is the last mile. ordering online, grocery shop,
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but getting it back to you in time when you're there in a refrigerated truck at a time when you're there is hard to figure out. so walmart is trying to work with some of these partners and doug mcmillon says i hope you will give us a little bit of leeway as we try and test new things. so i think he's laying the groundwork for a possibility but it's just two cities and i think they'll look at it and see how well it works for, again, the last mile for groceries. >> we talk about it. going in your house and putting groceries in your fridge. they're breaking down all kinds of barriers for you. >> that's right. >> it wasn't long ago that we saw a boom in chinese global deal making but that's turned into quite a bust. we'll look at how long that lasts coming up. plus mark zucker burlg owns the majority showers of facebook but can he be forced to give
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our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us. a loan would take too long. we needed money, now. my amex card helped me buy the ingredients to fill the orders. opportunities don't wait around, so you have to be ready for them. find out how american express cards and services can help prepare you for growth at open.com. welcome back. here's how we finished the day. the dow was down 31, the s&p down 29 and the down 6 and nasdaq down 28. the revisions for prior months
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lowered it after adding 38,000 last month. ihs says they'll hit pause till, quote, at least september. they jumped the shark on summer tightening. evan. >> yeah, i know. >> this is your point about credibility. >> look. i think it's a bunch of problems. communication problems. they've got 15 people running around saying different things every week. so many of these ecb governors running around. it used to be whatever alan greenspan said, whatever ben bar nanky said mattered. >> mattered, but they could hardly parse it. >> by the way, that wasn't a bad thing. that was a good thing to keep markets on their toes. now they've lost total control of communications. >> what happens? larry kudlow said he thinks we're in a mild business resechlgts is it the impact of
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one bad jobs market? >> i think that and a sloppy recession. we've had profits declining. we've had slightly positive there. i do think there's definitely -- you know, there's a question as to whether we can expect more job growth at this level of labor force participation with the economy growing at 2%. it could be a lull. you had no job growth. it wasn't over at that moment. >> i don't think the u.s. is the problem. i think what your viewers should look out for is what the next dominos are to fall. the yen keeps on strengthening. my guess is they do something real stupid. >> you feel like you can say that because you've been to japan. >> more time than you. >> let's get to sue herera. >> hi, kelly. here's what's happening at this
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hour. he's opened up the lead. she leads by a 46-35% margin among likely voters. the pair was statistically even in that particular survey in may. three minnesota men accuse of plot gog to seary to join the islamic state were convicted of conspiracy to commit murder oversea. the judge didn't immediately set a sentencing date saying he wanted to review the case and hear from the defendants. >> the international oh lliympi committee has pick ten refugee athletes. they say their goal is not only to participate but win. jaguar alleges that it's a xerox copy of the range rover. the case could serve as a litmus
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test for legal action against alleged chinese cop caters. you're up to date. kelly have a great weekend. >> thank you so much. now facebook's board of directors is preparing for life after mark zuckerberg. they're seeking to de-clare his shares as "b" shares over "a" shares. it was filed last night. we're joined to discuss it. do you think this is perhaps they're seeing what's playing out over at viacom? >> that's possible. but this was inevitable from when they went public in the first place. you knew that they were going to have to unscramble that egg. at best that's transitional structure and it has to be once
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your one vote eventually. >> you say it's sort of inevening itable. but are there not other examples of companies with super voting shares where you don't have this provision? >> absolutely and it doesn't work out well for them. if we could compare facebook to an old media powerhouse from just a couple of decades ago, look at reader's digest which put a lot of its stock into a foundation. it turned out to be an absolute catastrop catastrophe. where are they? it has a risk toll raens than an investor and they turned out to be a terrible steward on be f of the outside investors. so it's really, really important when you're transitioning from the founder/owner, that you simplify the stock structure, that you give everybody one share, one vote, and you disperse that stock into the market place so you can have market forces bearing down on the company. >> won't companies that have
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control, founders control, won't they do anything they can to get away with it? i'm not in any way dismissing what the fausbook board is doing. they control the company. they codo whatever they want. the board would not do this unless mark zuckerberg want wanted it to happen. >> no question about it. it shows once again he's got a lot of vision for somebody still in his 20s because you don't want to end up like viacomful you don't want to end up 92 years old and having people argue whether you're competent or not. you want decisions made on what's best for the company. the reason we have the corporate structure in the first place is people have a limited lifespan but they go on forever. you don't want to tie the future of the corporation to any one person even if he's the founder and quite young. >> i wonder, too, how long this could take to play out and is there any reason why it wouldn't
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move forward? >> absolutely not. my big concern here is about the shares that are going to go into the foundation. i hope that he will do what bill gates did which is require the foundation to hold onto the shares but make it a diversified partnership. >> thanks for joining us. >> no problem. >> knell minow. don peebles will weigh in when we come right back.
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a reminder stocks were down. phenomenon narm payrolls were down. it was the weakest performance since 2010. joining us now on what this means is don peebles. real estate mogul, founder of the people's corporation, don. last time we had you we talked about you running for mayor. let's stick with the jobs report and what you think is going on. >> what we have is a grindout economy. these jobs as you pointed out,
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that's a difficult circumstance we find ourselves in. the real estate market broadly is going to see a lot of pressure in terms of downward pricing. >> don, i have a question on that. you say it's going have downward pressure. are you talk major cities or rural areas because i would make the case that certainly new york, san francisco, and some of the wealthier metropolitan areas, you've seen the low rates have led to overbuilding which ha led to price pressure, not to weak economic growth. >> what i'm talking about is the major cities. new york, washington, san francisco, and the secondary ones as well. i think if you look at what's happening. it's an oversupply, but now that perfect storm is met with a significant reduction in demand. so rental rates for apartments in new york city are down.
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absorption of rental and for sale product is down significantly. and so there's a lot of pressure in terms of price escalations, and you're seeing some of the prices that were forecast for preconstruction projects already under way. they're having an adjustment in markets. we're seeing it in our own business as well. >> well, it seems like unless you are directly exposed to commercial and drens chal values, that's certainly not a thing if it cools off and brings more rental rates. >> i agree. i think it makes it more accessful to the work force. it will help businesses in some regartd with cities like new york and san francisco where it's expensive to do business. i think it will help attract a greater talent because affordability is getting greater. we were in danger of pricing everybody other than the working
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affluent and super influent out of the new inventory market. >> i want to come back to the low rates wlrks that's bad thing or good thing. take miami, for example. miami had a classic luxury condo boom that they're now suffering price deterioration in and i sit back and go that's what you get when the rates are super low as can be. if i were a developer, i would develop and build con dose also. so, again, are we going to -- does that have anything to do with the real economy or is that because rates are so low? >> i think the low rates, you summarize miami very well. low rates are having an impact in commercial sales and office sales and apartment sales. interest rates start moving. remember tall income is not going to be growing quick enough to offset that increase investor expectation and the rising cap
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rate so many will be worth less muntd so it's getting better. we'll have significant risk on exposure with some of the loans we have. don, thanks for joining us. >> it's also not just growth that's slowing down in china. we'll tell you what else is unraveling in just a bit. you're watching cnbc, first in business worldwide. what are you doing?
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welcome back. we do have breaking news on sumner redstone. david has news. david? >> the back-and-forth coing including litigation. about 20 minutes or so ago we got the word that sumner red stone is rebutting the claiming by viacom ceo philippe daumon and abrams. they were removed on the result of him and not by the own desires from the trust that sees his own control in natural amusements which controls both viacom and cbs. red stone asking a massachusetts court to deny a challenge mentioned by both of those gentlemen saying he's motivated by what they call self-interest and the effort to block mr. redstone from removing them from his trust as well as remving them as board members of
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national amusements should be denied. so if you recall last week, of course, mr. abrams and mr. dau mon voted to be reinstated. mr. redstone says, huh-uh, we want a toss. we want this denied right away. they're motivated by self interest and they're coming back the a press release we got last night and again giving us the same conclusions of dr. james spar. he's a geriatric psychiatrist who's examined mr. redstone twice in the last few weeks on the day he removed dauman and abrams. indicating he's clearly displaying his preferences. it's far from over.
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there's a petition in l.a. superior court to ratify his move and say it shouldn't even be taking place in massachusetts anyway since mr. redstone conducts all of his business in california. again, the main point, this is just the softening u. it was a week ago e was with you talking about the fact that manufacture of the board members at viacom were bracing for the possibility of being removed by mr. redstone. that hanls happened this week. but that doesn't mean it's not going to happen. and based on the reporting i've done, i expect it will happen in the not too distant future and much of this is targeting up, if you will, the target before they finally drop the big bomb. >> was going to ask. how is this expected to play out because right now you have this war of words and lawsuits and press releases and what have you between these two sides. >> i think what will happen is at some point we're going to get word that mr. redstone has
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replaced the directors of viacom that don't include himself and his daughter shari. that will be done by the lead directors going to delaware, petitioning that court where viacom, of course, is incorporated to issue a stay and say we're being removed incorrectly. that has yet to happen, of course. >> but is that what sumner redstone, david, really wants? that's the argument that the granddaughter made too. he never wanted shari to have control of this company. he wanted -- he groomed these guys to take it over. that was the plan until very recent recently. they claim this is nothing he expressed. in their long claim they filed. he's in control of that woman,
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shari redstone, his daughter, and is not really competent to make these decisions. he said he wants to see mr. redstone. he wants to speak to him to make sure these are his wishes. he's been denied or not able to do that. the back and forth will continue but the big game is yet to come. although it's coming, at least according to the people i speak to. >> david, thank you for now. david faber. china's overseas deal making is slowing down. what that means for beijing as a business hub next. female announcer: protect your money. find out if you're dealing with a registered investment professional at investor.gov. before you invest, investor.gov. incredible bladder prthat lets from always discreeyou move like you mean it now comes with an incredible promise. the always discreet double your money back guarantee. always discreet is for bladder leaks and it's drier than poise.
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we now have breaking news on martin sh reallily. what can you tell us.
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>> they're bringing charges against martin shah rkreli. they've put together a new list of counts they want to put against martin shkreli. we've also gotten a statement from martin shkreli's attorney ben brafman saying, quote, the new indictment, there's one additional one. it still relies on a flawed theory of mr. shkreli. again, a formal statement from ben bartman, his attorney here. we're looking to see all the indictments as they stand with this new development. martin shkreli is scheduled to appear on monday in court for the next leg, the next hearing in his case versus the government, so, again, we're --
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it's going as scheduled. nothing has changed so far. just this one additional count or indictment that we're seeing in this new document being filed. we'll keep you that case against martin shkreli against the government. >> global ak whichizations, a few high profile ones have been falling apart. joining us now, what's behind all this deal-making activity, or lack therefore, the columnist at the "wall street journal.." >> thank you. >> didn't you used to play on the playground? >> he promised he was going to do the entire portion in mandarin. >> not happening. >> you've been hearing about deals falling apart. you're giving some of the science behind it. what is really going on here? >> it's -- things are falling apart because there's a mystery behind some of the buyers, some of their financing. and when they get pushed, the chinese companies are pulling
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back. >> they're pushing back because in one case they wanted to put the chinese in an offshore location. so the company would have certainty it was really going to be there. it tells you just how fragile and delicate people's sense of what the companies are. >> this company was an auto insurer a couple of years ago. now it's been in this global tear of deal making. it drove up the price. this week, it was -- it's a deal for fidelity guarantee. which is an annuity ensurer. it fell apart. the regulators, this is an insurance company, right? the regulators said, who owns you? what's your structure? where is your money coming from? they didn't answer. so they pulled their application with the regulators. they say they're going to reapply. but this is weird stuff. >> it's a broader issue, too, with -- i'm thinking specifically about alibaba.
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and the scrutinizing of the company's books. the fcc isn't used to seeing companies like ours, with our kinds of relationships and accounting and things like that. is there any way to bridge this apparent gap? >> alibaba was going to be one company that did bridge the gap. they have specific management. they made a big push to come out west into the u.s. and all that. there's still a mystery around it. the questions that the fcc is asking of alibaba are specific things to the business model. there's not like there's some obscure acting issue there. this is serious stuff. >> is this all like the -- trying to get mope out of china by buying company overseas? there's no real business synergy here between this auto insurer and the rest of the businesses? >> when the chinese currency started to go down last summer, this wave of deals started to happen, then it happened again in january, then we had this first-quarter boon in deals,
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when the currency went down, all this money is flowing out of china. what's happened now recently is the deals are falling apart. the currency has come down again. it's at a low. the money's not coming out of china. they're kind of having both -- the government is getting both ways. >> it wasn't clear whether the government wanted them to happen. that was the other interesting part. >> everyone thinks china is this monolithic thing and dictates what everybody's going to be doing every day. that's not the case. the provincial governments do what they want and the companies do what they want. they do it, and if the government stops us, that's fine. it's a real wild west in some ways. and people are trying to get their money out. people trying to borrow. so the government reins them in after the fact. >> yes or no question. are the chinese stupid buyers the way japanese were in 1990? or are they smart buyers? >> i think they have another incentive, they want to get money out of the country. so that makes you probably more of a stupid buyer than a smart
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buyer. because you don't care as much. >> strong feelings being known. ken, thank you so much for joining us. a great piece. have a great weekend. coming up, not the latest energy drink or dance move, the name of an old media player, coming up. that's also true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the world. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud is built for.
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we built our business on the ibm cloud. will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us. a loan would take too long. we needed money, now. my amex card helped me buy the ingredients to fill the orders. opportunities don't wait around, so you have to be ready for them. find out how american express cards and services can help prepare you for growth at open.com. there's a lot of places you never want to see "$7.95." [ beep ]
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tribune publishing, "l.a. times" and "chicago tribune," is changing the name to tronc. in a press release, it was doe find as a monetization engine. the social media has weighed in on the new name. here are some of the favorite headlines. tribune publishing name changes its name to tronc. "washington post," writing tribune publishing, worst press release in the history of journalism. finally, tronc in love.
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>> i want to tronc all night and party all day. >> the acronym, if it was just some made-up, high-tech sounding thing that didn't sound like an inky newspaper, maybe -- it sounds clumsy. >> trinc would have been okay. >> i had to come up with a company name once. and it's hard. we came up -- we needed a web dhing. we came up with visa very. vis-a-vis, because it was in different countries. you can't imagine how hard it is to come up with a good name. >> pepsi is called peksi in latin america. >> i'm not saying -- >> but tronc, that's hard. >> the reason you have the ridicule is you have management of an old media brand, doesn't know its way. and this kind of clumsy attempt
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at rebranding underscores that flailing. >> they want to move forward with examining the proposal by -- what's their face -- "usa today." by their accounts refused to engage in. there's now been sort of a heated war of words between the two. gannett wanted a piece of the action. he's vigorously denied that's the -- >> he doesn't want to think of his company, or have his company thought of as this old business that's slow to decline. all you can do is slap it together with a similar business and milk what you can out of it before a lot of the value goes out of it. >> the journalists look at content and monetizatiomonetiza >> bad lbo and -- >> i didn't call the name the "s" word. >> i appreciate it.
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>> guys, thank you so much for joining us. to close out the week here on "closing bell," logon to see my full interview. whether active investing can ever make a comeback. "fast money" begins right now. "fast money" starts right now. i'm melissa lee. traders on the desk are tim, steve, brian and guy. on fast, wall street's biggest bull says a june swoon is coming. tom lee, yes, mr. bull himself, will be here to tell us what has him so nervous. plus, get this, looking for an easy sell signal on stocks? it could be as simple as the company's ceo. and later, a classic theory pointing to big pain for stocks this summer. first we start off with today's job shocker. it had investors running for the safety of bonds, selling the u.s. dollar. curiously en

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