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tv   Power Lunch  CNBC  June 5, 2017 1:00pm-3:01pm EDT

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>> visa and mastercard, look at those stocks, look at those charts, continue to go up. it doesn't matter which retailer. >> joe? >> microsoft. it's actually done better than facebook and apple. >> thank you. "power" starts now. i'm melissa lee. unveiling its answer to alexa. president trump pushing his trillion dollar infrastructure agenda laying out his plan to privatize america's air traffic control system. will this become the latest piece of his agenda to get stuck in traffic? and the uk picking up the pieces after another terrorist attack. a vigil under way in london. we'll take you there live for the very latest developments. "power lunch" starts right now. welcome to "power lunch."
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i'm courtney reagan. stocks trading again in another fa narrow ray but another high. a volatile session for oil. saudi arabia and three other countries cutting ties with qatar raising concerns about supplies. more on this as oil prices fall. and what's moving. a major cancer conference under way in a number of biotechs rallying as a result. loxo and puma among them. herbalife down 6% of its latest outlook. brian? here is what else is happening this hour. csx shareholders approving a proposal to reimburse $84 million for arranging the hiring of a new ceo hunter harrison. the ceo of mantle ridge, by the way, is the vice chairman of the board for csx. in the skies the good times continue to roll. airlines globally are collectively raising their profit forecast. the industry group that represents more than 200 airlines says the profits should top $31 billion this year. that's about $1.5 billion more than previously forecast. and the supreme court
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scaling back the s.e.c.'s power to recoup profits made in securities fraud. they can still order companies to pay back illegal profit but must do so within five years of any claim of fraud. those headlines falling all under the shadow of another it terror attack in london over the weekend. seven reported dead, dozens more remain in the hospital. this is the third attack in less than three months and happening just days before the uk's general election. wilfred frost? >> reporter: brian, thanks very much. we're going to start with some live pictures of a vigil taking place as we speak on the banks of the river thames between london bridge, the site of the attacks, and tower bridge, the mayor due to speak in about 15 minutes' time, and also to hold a moment's silence. the story of the day hasn't been one of silence after a brief
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hiatus things picked up in pace early this morning and security has stuck top of the agenda in a way that it didn't really do after the manchester attacks two weeks ago. after manchester people thought it might be the tough on crime and immigration conservative party of prime minister teresa may, but she is taking more flak today than her main opponent labor leader jeremy corbin who has attacked her for cutting police numbers when she was home secretary from 2010 to 2016. while she has pushed back to frame jeremy corbyn as light on police powers. but the main takeaway this has been yet another day on the campaign trail with very little focus on brexit which was the reason why teresa may called this election in the first place. that, despite her trying to change the subject yet again today. >> we immediate that strong leadership now more than ever. for in just two weeks we embark on perhaps the most difficult set of international
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associations this country has ever known, the most difficult and the most important because everything we want as a country depends on getting these negotiations right. >> reporter: the result two more polls out today showing momentum for jeremy corbyn but teresa may still in the lead. the latest ft poll of polls bringing it all together showing the conservative lead slipping from nine points this morning to seven points as we stand this evening. guys? >> all right, wilfred frost in london for us. thank you, will. in washington the focus shifting to infrastructure today and the president's plans to reform the air traffic control system. eamon javers is live it at the white house with the very latest. >> reporter: we saw the president sit behind a desk today and sign a letter to congress in which he said he wants them to embark on reform of the nation's air traffic control system. take a look at a summary here of what it is exactly he's proposing saying that he wants the air traffic control system to become a nonprofit entity, no longer a government service.
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it would be overseen by the faa but those employees themselves would no longer be government employees. the white house says that's going to increase safety, cyber security and national security. the president in remarks at the white house contrasting this with the approach of his predecessor. here is what he said. >> after billions and billions of tax dollars spent and the many years of delays, we're still stuck with an ancient, broken, antiquated, horrible system that doesn't work. other than that it's quite good. the previous administration spent over $7 billion trying to upgrade the system and totally failed. >> reporter: so, melissa, this is the first day of what the white house is calling infrastructure week. they're going to focus on different pieces of
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infrastructure over the coming days this piece, this air traffic control idea, they say they want broken out as a separate piece of legislation. there's no overall infrastructure planned yet from the trump white house. they say they're working on that. they hope to have it, to release it, and pass it before the end of the year. so we'll wait and see what comes next. they say this piece will be broken out as a rifle shot. the rest of the ideas will go in one big package they expect and hope to pass towards the end of the year, melissa. >> eamon, thank you. apple's annual worldwide developers conference just g getting started in san jose. josh lipton is there live with the latest. josh, what's going on? >> reporter: well, courtney, there are more than 5,000 developers here today right behind me and the job of apple executives, tim crook, phil schiller, is to win over those programmers, convince them and excite them about creating apps for apple products and apple services. they're going to likely do that by unveiling new versions of
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their operating systems including ios, their mobile operating system for iphones and ipads. when you look at market share ios controls about 15% globally. that is a far distant second to android but the developers behind me here today are less concerned with market share. they want to know where they can earn the most money. apple recently told us those developers have earned more than $70 billion from the app store since its launch in 2008 over the past 12 months downloads up about 70%. analysts will be looking at the new version of ios, does that give us any clues about that iphone in the pipeline? i know gene munster wants to see do we see any new a.r. features. and it's probably not just software. might also see some hardware updates, maybe updates to the laptop lineup, the mac represents about 10% of the company's total sales as well as reports maybe we see that new
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siri enabled smart speaker, apple taking on amazon and google. right now amazon controls about 70% of that market but apple would have advantages of its own, huge install base and, of course, a big retail footprint nearly 500 stores around the world. guys, back to you. >> josh, thank you. josh lipton in san jose. for more on what to expect let's bring in an apple analyst and managing director at btig and our own john forte joins us for the conversation. walter, i will kick it off with you. this is a stock that moves on the notion of an iphone 8 super cycle so in terms of what they could announce today, whether it be an ai chip that has been reported in the past or ar, what are you looking for? >> i mean, what you talked about, software that maybe gives you hints about hardware because that's what drives the company. wwdc has never been an event that is a rallying cry for the stock the day, the week or the month that follows. people are focused on the
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product. if there is a new product that will be an incremental positive but i wouldn't get too excited about anything they say today having a major impact on the stock. >> amazon has worked very hard on alexia. on alexa. a lot of people have those products. >> do they? >> they seem very popular. >> they do seem very popular but, look, i agree with walter on the substance. i disagree in one point. i think this is the most important day of the year for apple investors and it's not because the stock is going to move. it's because it's not going to move but if you dig into the substance of whatever gets announced on stage you're going to be able to make smarter bets about the future. >> just out of comparison, what did they say last year about the major run that the stock has had this year? >> they talked about the continuity between the mac and the iphone. they talked about some of the encryption features that will remain in i-message, building in
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more capabilities into that. they talked about improving siri in a way that wouldn't try to go step for step with amazon and google but would keep people's information safer while also making it smarter. >> do you have any vivrin because i'm falling asleep up here. >> that's great for investors who want to be smarter -- >> worldwide snoozer conference. >> you're not going to pop awake at this but if you pay attention to the details. >> the point i'm trying to make, walter, is that if you look -- remember apple is famous for that one more thing, the one more thing list was pretty doggone impressive for years. itunes store, the ipod, the macbook air, the ipad, major groundbreaking products. now we're talking about incremental improvements to siri. is there anything that you think will sex up this developer's conference? >> well, i also covered telecon. that's not ever considered a very sexy area but it is a recurring revenue business and
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those boring businesses that a lot of analysts are looking at services segment which is now 13% of sales are things that drive higher valuations in the stock. remember, apple's p/e multiple is a discount to the market multiple. if these boring things provide some evidence that they have a true recurring revenue and not some explanation of someone upgrades their phone every two years, no, a true services business that also lifts margins can be very interesting for investors. >> jon, making money is sexy. to melissa's point the stock is up. we've pointed out apple's secondary business. the services, itunes store, app store, is bigger than facebook's entire business. >> yes. and i think it's false apple calls this services. a lot of it is really retail. >> it's kids buying a new game for their phones. >> which i don't let them do but it would be which is why i don't let them do it. a lot is transactional,
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downloading apps, yes, i'm a grinch when it comes to that stuff. really what this conference is going to be about detail wise is about a new interface and that is voice. and really it's as important as touch and multitouch was to the iphone whether you have a watch or a speaker in the home or whatever it is you're not going to end up touching it. you'll end up probably talking to it and touching it. lots of different ways of communicating. and right thousand it appears amazon and google are ahead in figuring out that mode of communication but they're not ahead in making money at it. they're not making a whole ton of money because they're not reporting the units they're doing in the business. apple has a chance to figure out how to put the things together in a way that's actually profitable which is something that apple is good at. >> yes, certainly. jon, thank you. jon fortt. walter has a $184 price target on apple. that was a live shot of tim cook who just took the stage. as soon as we have any sort of headlines, we'll bring them to you as soon as we get them.
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stick with us on "power lunch." a different call from one wall street analyst. what he thinks will happen with the stock ahead in street talk. first, who is doing better in this record breaking market, act active or passive investors? dominic chu knows. what's behind the move? we'll have that after the break. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.
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we all know passive investing is all the rage and more investors have gone this route, lured in by promises of lower fees and less risk. but could the pendulum be set to swing back toward the stock picker? it turns out this year they're already winning. dominic chu has more. those stock pickers are doing pretty well so far in 2017, and to put some numbers behind it christopher harvey heads up equity strategy at wells fargo securities and he and his team looked at a whole universe of mutual fund companies to see just how large cap managers and small cap managers that pick stocks are doing against their indices. take a look at this chart because the red line represents relative performance, outperformance over large caps. yellow line over large caps. both segments of the market have become better for stock pickers, outperforming by 2%, 2.5% the first half of the year so that might be the sign this is the first step towards maybe that pendulum swinging back. what's behind the move? check out some of the motions
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here, growth factors are doing better. think about apple you spoke about, growth factors like momentum are beating value factors like price to book, price to sales, that sort of thing. maybe also a reprising of the trump trade, the value segments are losing steam compared to stocks like apple or amazon or facebook and small and large cap funds just to underpin this more are actually underperforming their fundamental stock picker cousins. as you look at the broad themes and interesting moves here with regard to that outperformance, could it be? we'll see if the rest of the year plays out that way. back to you. >> thank you very much, dom. let's stick with the markets. a new report out by janice henderson shows investor growth. to give us the names of the biggest payers is global port foal yoe manager with janice hander son. he does join us from london. there's a lot of action going on in london. thank you for joining us. first of all, could you give us the highlights of your reports
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and as you speak we sort of have some graphics to show our investors where the payoffs are. >> yes, sure. so one of the highlights of the reports is growth in q-1 has been a bit stronger than we expected so headline growth, the underlying growth is about 5%. last year to put it in context the year was about flat. we saw a pickup in growth, a synchronized pickup in the second half of last year and that's coming through in dividends. >> does that also mean the companies are not deploying that capital in otherwise? does that suggest that perhaps activity is slowing? what does that mean for the broader market investor if you're looking at equities? >> yeah, i think what you're seeing in this period is that some companies that cut their dividends very significantly in the past are increasing them again. some of the headline names would be bhp billiton, the mining
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company, but has seen a big pickup in mining commodity prices mainly driven by china. we've seen a few oil companies p paying back a little bit more. so wood side in australia. we're seeing companies like bank of america, citigroup, some really big increases year on year there that go unmentioned by the market. they're big parts of the index and make a big difference when they start increasing them. >> and your number one has held that spot a number of different times. you also, as you mentioned, have some oil companies, exxon mobil and shell. now you are in london, ben. so if we could just get you to turn your focus a bit on what's going on in the markets. we had yet another terror attack in london but the markets are somewhat shrugging it off. they don't seem to be afraid or worried about what that means for investors. why? what would it take to rattle that market?
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>> what you see he with terror attacks, they affect sectors and stocks. if you look closely within the uk market you'll see companies in transport, hotel, airways and the same we saw last year with paris. again, the leisure stocks. the equity market is very global in most markets nowadays. in it the uk two-thirds of our earnings come from overseas. and so to actually destabilize you're looking at more factors that affect global growth trends. >> ben, as part of this stability in the markets and also reach for dividend paying stocks the move we've seen in the bond market and the fall in yields, we can't look at the bid for dividend stocks without putting that in the context of where yields are and the global desire for safety, right? >> i think that's very true. i think investors are starved
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for opgs from a yield basis. we're seeing all sorts of income generating assets around the world whether it be housing or stocks or bonds so i think when you see yields going back down again than what we've seen in the last month or so is a big leadership taking over in the markets by defensive stocks, so telecommunications, utilities, tobacco stocks are back in favor very much the antithesis of the trump trade from last year. and so the bond market in the short term is definitely moving equity market leadership. i think longer term we would hope that higher bond yields would be accompanied with higher equity markets because we'd be more confident about growth. >> all right, ben, leave it there. ben lofthouse, janus henderson. forget silicon valley. the new place is next. '98.
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welcome back to "power lunch." over to dominic chu. it's a tech mover. >> it is a tech mover. shares of box down 4% so far. leslie picker says a key driver of that fall is a big sale by a large investor. a source tells cnbc the investor sold 5.9 million shares this morning. despite that, box is up this year. back over to you.
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>> silicon valley has been shifting focus and money towards washington since the election. ylan mui with more on what's driving that. ylan? >> reporter: more people are tuning into politics now in the trump era, courtney, and that's driving money into startups building a business out of activism. the co-founder of phone to action is a tech platform that organizations use to run issue campaigns and one feature helps voters connect with their lawmakers. >> calling now to patch you through to your legislators. >> hi, this is alexa. i'm going to patch you through to your legislators. >> we will now connect you to your representative donald beyer. >> don beyer's office, how may i help you? >> reporter: this company has doubled in size to 50 employees, added 60 clients in the first quarter alone and patagonia is one of them. now the sector is brand-new but
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some big-name investors are already betting on it. eric schmidt, former microsoft ceo steve balmer joined forces with operative mark penn on the fund. >> i think you're seeing the marketplace explode. i always used to say this is a country that spends more money on marketing a hamburger than for our entire political race. today we spend more on politics than on hamburger. >> reporter: this field is wide open for someone to find the next facebook of politics. back over to you. >> more on politics than we do on hamburgers, the quote of the day so far. less delicious as well. ylan, thank you very much. >> reporter: it is "power lunch." >> good point. several countries cutting ties with qatar citing support for terrorism. it is a big story for the region and possibly for oil prices as well. we'll explain and tie them together next. it's been over 100 years since the first stock index was created,
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welcome back to "power lunch." breaking news on this weekend's terror attacks. wilfred frost is there live with
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the latest. >> reporter: the metropolitan police's counterterrorism command released the names and photos of two of the three attackers who, of course, were shot dead on the scene. th one was a british citizen born in pakistan, married with children and was living in the east of london at the site of a set of apartments that was raided early on sunday morning that led to most of the 12 arrest that is took place on sunday. the second name rachid redouane who claimed to be moroccan and libyan at different points in time. the attackers had a domestic center of gravity. she implied they weren't foreigners. >> thank you for the update. sue herera now with your other
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headlines this hour. sue? indeed. thank you so much, melissa. here is what's happening this hour. four males and a female were killed following a work place shooting this morning in an industrial area near orlando, florida. the gunman then killed him seven. the gunman was a disgruntled form earp employee of an rv accessory company. >> we cannot, again, connect this incident. it appears this incident has nothing to do with any global terror activities. >> overseas security barriers installed on several london bridges in which the attackers used vehicles to target pedestrians. an increased police presence accompanied those barriers. research e researchers tracked food purchases from 2000 to 2014 and found while the amount of sodium decreased over time less than 2%
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had total purchases with acceptable levels of sodium. that's the news update this hour. back to you. >> thank you very much, sue. appreciate it. headlines right now. josh lipton with all the latest details. hey, josh. >> reporter: apple ceo tim cook on stage here. he dove right into the moves the company is making in your living room specifically with apple tv and he made some news there with new partners. take a listen. >> today we're really thrilled to announce that amazon is coming -- [ applause ] amazon is coming to the tv app and all apple tvs later this year with amazon prime video. >> reporter: cook immediately pivoted from apple tv to apple watch saying it has had incredible growth.
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apple doesn't break out units or revenue but third party researchers do. up about 60% year over year means they're effectively tied ahead of fitbit. we'll bring you more headlines as they come. >> the partnership strikes me as a frenemies move. a glimpse into amazon and apple strategy, they sell the fire tv. maybe it's not as interested in being that purveyor. here is a great offering. maybe they're not as intent on having their own studio.
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he talked about that partnership, about prime specifically and apple has been making these moves for a long time. we've seen what his intent is there. he needs to bring the next content. making similar moves and amazon is one way to do that. >> we focus on the media. it's great news. is this a move for amazon shopping? if you don't have an echo or one of those devices i wonder if they're going to allow you to open up the app on your apple tv. you can order stuff through your apple tv. i guess that's not a question,
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it's a comment. josh, thank you. >> i think we lost josh. >> we did lose josh? that genius rant i was on was lost? >> we heard it. josh lipton, thank you. oil prices are lower, again, on news of a big rift forming in the middle east. a number have cut diplomatic ties with qatar. that country is backing iranian-based terror groups. the qatarian ambassador to egypt has been given 48 hours to leave cairo. jackie deangelis has more. >> oil prices has come down. this has so many intricate facets. qatar is an opec member but production is under a million barrels a day. it's one of the world's largest exporters with end markets like asia and india. crude and nat gas are calm as they watch this play out. if it becomes a wider spread severance of these ties there certainly could be an issue there, maybe its sanctions are imposed.
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it's expected they're the leaders, it looks like an effort to align on terror called qatar out and keep the oil prices supported. they want them around the $50 mark. of course there may be no moves off limits to help them do that. remember, possibly next year. issues run even deeper. when i lived in the region i felt a quiet power struggle. dubai had more prestige, a little bit more of an edge. they were both major air travel hubs but qatar wanted more power. they do have plans to host the world cup in 2022. this is no doubt a blow as to how they're perceived globally. let's get more on the fallout with rbc capital markets. obviously it's a shaking of stability in the regeneral.
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>> cutter's oil minister in april and he said there were no winners when oil was below 30 no one was winning. does the conflict get worse? there's a proxy war with the qatars on one side. what does this mean for the u.s. air base in qatar? it is based in qatar. i don't think energy supplies are in peril. >> if they fracture politically might they economically? >> everyone is innocecentivizen. we've had periods where saudi and qatar have had bad relations like al jazeera. supporting the arab spring through al jazeera. now they are accused of backing
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the iranians and this is not w new. they are viewed as upstarts. >> what does this have to do with president strum trump's recent visit? anything? >> i think the saudis and you can weigh in on this, too, look, we're aligned with the you states. that will give them more power in the region. the saudis hate the muslim brotherhood. obama being in the white house he certainly would have said de-escalate.
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i think they see it as their moment, you choose. >> it's so funny because it feels like there's irony here, too. it feels like they're ganging up on them a little bit. >> do you think they feel ganged up on? maybe qatar kicks out more hamas members. i don't see them backing away. this could go on. >> given what is happening in the region, is the risk to the upside? >> the question is do we see some disruption in terms of shipping handles. they're worried about more widespread conflict.
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we've talked about that getting shut down. >> and a lot of people may not know this about you but you lived in bahrain for a number of years so you saw it. i think when you were there there was conflict between bahrain and saush and there was some concern. we're still at $47 a barrel. >> i traveled throughout the region. i noticed how the saudis, they all stick together. that's what's happening here. they were sticking together and everybody else was the odd man out. >> i think bahrain because of iran. >> exactly. >> thank you both very much. the world's largest cancer conference under way in chicago at this hour. next an exclusive interview with the man on the front lines of the fight against the disease for merck. first to rick santelli.
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>> if you look at bonds we're up one basis point. preparing for the week and we saw pushing rates down, you see on that two-day chart we stayed right around this 2.17 area. even though these are lower, it's really important to see the left of that chart. the reason the two look so similar is most of the proactive movement, meaning the big moving in rates to the down side is predominantly driven by ten-year rates and finally the dollar index also fits that pattern. keep in mind we're just a few
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ticks away from challenging that. which is very important considering the bounces we've had. just no follow through. "power lunch" will return in about 120 seconds. hey, i've got the trend analysis. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn. parts a and b and want more coverage, guess what? you could apply for a medicare supplement insurance
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and once we do, we see wonder waiting. every step you take, narrows the influence of narrow minds. bridges continents and brings this world one step closer. so, the question you asked me. what is the key? it's you. everything in one place, so you can travel the world better. >> reporter: with welcome back to "power lunch." i'm josh lipton. on stage here at apple's developers conference, they've moved from the apple tv, the watch, now they're talking about the new operating system for the mac, a developer of beta today. when you talk about the mac, they shipped about 4 million. revenue up year over year.
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represents about 10% of total sales but a lot of new competition not only for microsoft but hp and dell. the world's largest cancer conference is under way in chicago at this hour. our own meg tirrell. >> reporter: doctor, thank you for being here. >> thanks, meg, for giving me this opportunity. >> i want to start with something that happened just before this conference started and are calling it a landmark time and that's your recent approval. can you explain why that's so important and signals a shift? >> i think you're referring to the approval for msi high. we received a number of approvals just before this meeting but it is in some ways the most interesting. it turns out that many tumors have a problem repairing their
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dna as the cells divide there's difficulty doing that correctly. the immune system can recognize those tumors and by giving them this we can amplify the response. you're better off analyzing tumors to see if they have this problem with dna repair and if they do then potentially those tumors could be treated. and that takes us away from the general idea of saying, gee, is it a lung cancer, a breast cancer, is it a colon cancer but instead to ask the question does the tumor have this dna repair. if it does it's worth thinking about. we have that approval. it's the first time a therapy has been approved across many different tumor types based on a molecular definition. >> which people are say iing is this landmark moment.
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you mentioned it's moving from su success to success. a lot of drugs are working in this space known as checkpoint inhibitors. would you argue that keytruda is different as a drug or is it as you design trials? >> it's very difficult without doing comparisons to compare two agents. we think it's excellent but i wouldn't say we know for sure that it behaves differently head-to-head in one clinical trial thus far we've been able to demonstrate that keytruda improves survival for cancer patients with melanoma, advanced cancer patients who fail other therapies and in a first line setting when given in combination with chemotherapy and more recently for bladder cancer.
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those are big, important tumor types that affect a lot of people and that's the reason people are so enthusiastic right now about keytruda. >> reporter: would you consider a head-to-head trial with bristol to get that kind of answer? >> we would do a head-to-head trial if we felt that we would obtain medically important information. i feel a strong desire to demonstrate keytruda versus other therapies. these are people's lives we're talking about and you don't get many chances to receive treatment for what is, in many cases, a lethal diagnosis. i want to make sure if there is an advantage for keytruda that patients have the opportunity to get that. if i felt confident of that, i wouldn't hesitate to do a head-to-head so one of the new waves of immune therapy is to combine different approaches to extend benefits to more
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patients. tell us about your philosophy in partnering with external partners or trying to have those conversations all in house at merck. >> one of the interesting things about keytruda preclinically in animal models is that it seems to work well with other agents. all kinds of other agents. it combines with radiation therapy, traditional chemotherapy, with other kinds of immumotherapies. what we've tried to use those studies to focus our attention on new agents and we're doing that both with our own agents and in partnership with others, there have been interesting results. >> brian, you have a question? >> i do not, meg. i was going to go to josh lipton in california. but get in a final question on my behalf. your questions are much smarter than mine anyway.
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>> reporter: i'm sorry about that, brian. i misheard in my ear. we'll wrap it up there. fascinating discussion. thank you for joining us. and, brian, i will send it back to you now. >> she didn't even have a question for me, thanks, meg. back out to josh lipton at the worldwide developers conference and apple. josh? >> reporter: we're now josh. >> we're not talking about laptops or lineups we're talking about i maps. it looks like it's going to have a new in video ya graphic's chip and no price yet on these new machineses. i'll bring you those headlines as they come. >> all right josh thank you very much. we have not forgotten about fining stock opportunities for you. it's called "street talk" coming up next. why one firm says you should sell one of the hottest technologies around. stick around and find out. but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks
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make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies lead with digital.
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is unlike anything we've ever faced.leased the ultimate evil. [ sinister laugh ] [ dramatic music ] [ screams ] the mummy. rated pg-13.
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take a look at shares, this on news of the apple, world wild development conference apple index has a partnership in which the apple watch will link to a glucose data. so that you're seeing a rise right now.
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>> that's an awesome gift because to me that's the most interesting about these conference for apple, it's not just what apple announces but the smaller companies, the sky rocks in the world back in the day that gets this pop after the giant whale of app. >> right. do you remember we had on recently one of the contestants from the conference, deks kon was his idea. >> that was his idea? >> yes. >> what's his name? >> i don't remember. >> dude from conference that came on the show good job. gap upgrading and raising the price by $4.28. the stock is up 17%. the analyst saying department store shares up for grabs. department stores, jc penny, macy's and old navy could be a beneficiary of that.
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>> second stock, blackberry. credit sweeps making negative comments about it. this has been one of the hottest stocks around, 60% year to date. last week, percent tafs replaced -- not only because foot is also a giant company but it takes away from a little bit of the bullish thesis on the auto side for blackberry software business. an underperform with $8 target that's 30% below the price. >> third stock, that vis star is saying a -- this stock is nearing the end of what decades is calling a trans formation and is on the verge of driving higher markets which could take the stock over $50 per year. that could mean up side to the 60s by 2020.
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>> 60s? >> look at that 11 spz 1/2%. >> last stock of the day is five point holdings, fph. they're building three bike mix master communities in california. $15.5 stock. bob is the one that made this call, calls it quote an ideal holding of real estate. the guy is widely regarded as the leading land developer in all of united states. he sees the estimated cash flow with the life of the developments. five point holding fef. >> i think -- >> i think i need to make a correction. when you were doing your first stock i think -- is attached to sharks. >> i didn't catch what you're saying probably my natural tendency to tune a lot of things
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out. i will think about what you just said. >> courtney. >> i i have no idea what you're talking about when it comes to whales. still ahead, the manager of the largest world head funding is getting 'worried. you should not be worried but we'll tell you why he is. second hour of "power lunch" coming soon.
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. i'm courtney reagan welcome back to "power lunch." place your bets, we're talking to the ceo of mgm about his soaring stock price. apple in the spotlight, the conference developer's conference is still underway. announcing that amazon's fine video will be coming to cnt. in tech fighting terror, are social media companies doing enough to fight terrorism. we'll debate it ahead. "power lunch" starts right now. relatively quiet day in the markets. right now we are watching stocks trading slightly lower across the board here. the dow is down nine points.
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s&p 500 losing 1.5, nasdaq down 3.3%. google crossing the $1,000 mark for the first time. set agnew record high, the stock is up 10% in the past six months. her ball life falling by 6%. the worse performance on the s&p 500, we'll be speaking with in sight ceo later this hour. brian. here's the latest of this weekend's terror attack, in london the victim's names released. one is a born citizen of pakistan. police are working to confirm an identity of an accomplice. 11 other people of interest has been detaned after a series of rage. 36 patients are still being treated in an area hospital. 18 of those in critical condition. seven people reported dead.
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examining will resume today for britain's national election and set for thursday. here's what prime minister at least sa may has to say. >> violence can never be allowed to disrupt the democratic process so those campaign wills resume in full tomorrow. and the general election will go ahead has planned on thursday. >> so in the terrorist attack today, president trump calling for a travel ban to the u.s., how's this affecting the he or she polt industry. susan joining us now. take it away. >> hi mirelmoishls those are th with the headlines. a lot of ceos of this event are concerned because that tells the rest of the world that maybe you're not welcome here. >> yes, i'm concerned with those
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words, i think words matter. travel and tourism is our most important export, $250 billion a year. it was jobs here in the u.s. are 80% of total jobs so they're much larger than amanufacturing jobs. there is no one here that does not want a safe and secure border, but at the same time, it's really critical to understand that people coming to the united states, spending their money here, helping middle class jobs, improving our economy is really critical and it's counter to letting this country grow. so, yeah i'm concerned with those words. i think it confuses people. >> the u.s. president says that's a way of making this country safe. >> the way to make the country safe is for our country to be the world leader it always has been. and, we lead by example and we
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should use our resources, intellectual and financial capital to yes, make or border safe and security but also lead in a global world that's becoming increasingly connected. and the way to do that is to bring people to the united states, for them to see our culture, to explore the natural beauty of our country and yes, to learn a bit about what it means to be in our nation. so these are not mutually conflicting roles. i think we're focused on the wrong issue, and i believe that in this issue, bringing people into the united states is really important. >> do you think it's had an impact on the tourism industry. >> i think it has. it hadnsn't to us. we're largely las vegas based. quite of few of our tourists
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come from outside the united states and fewer tourist are international. we have not seen many impact in las vegas. my friend mtouche was on your program earlier today, he has felt it and the marriott has said the same. >> jim, plishls has a question for you. >> hey gyjim. i had the pleasure of jim wynn in your backyard a few months ago. he spoke about the businesses in las vegas, he said it was almost like the flip of a swim when trump won in november. i'm woerping if you saw that bump as far as the tourists in your property and if that has, has it been sustained even through and to the summer now? >> we have -- thanks for the
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question. we've had a great three years. we haven't seen any change in your business trends since november, they've just been getting better every month and i can attribute that to the election. what i can say is a lot of what we're hearing from the administration is very positive in terms of improve r our air traffic control system, improving infrastructure, reducing some onerous allegations. i can't point to a link canales between our revenue, traffic and election. >> i wanted to ask you about the business and mccall. you got a property that's going to open up in the fourth quarter of 2017, s gm also has a property opening and wynn frame also operates a company there. i'm wondering what this will be like in the fourth quarter when
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all that hits the mark? >> as you know mccal is bombing right now. it does open in the second half, only in a few months. we are at capacity constrained at mgm we only have 40 guest rooms in our current property, we'll have 1400 rooms when we open the new location. the market is growing. i believe that the mccal market will be up double digits in 2018 and mgm is going to be a beneficiary of that. >> hey brian, i'll and you domestically, i think 48 states now have some kind of gambling, it seems every state uses a cast foe as a revenue source. there's a couple in philadelphia, how do you keep people coming to your properties when most people can drive 100 miles and go to some riverboat somewhere? >> that's right. and that's not our business
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model we're an entertainment company, we're not in the slot box business or managing a native american tribe. we create interstatement complexes that endure. for example you mentioned atlantic city, we own ber gotta, they had a record year last year. it doesn't compete against the atlantic city properties it completes literally on the east coast. we're selective where we go, we invest a lot into our people and properties and the financial results speak for themselves. and that's why we don't have to be every where, where we were there we're the market leader and doing very well. >> jim, you said mccal is booming, people forget las vegas is doing very well. you have a new nfl team moving as well. >> don't forget ho hockey.
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las vegas is doing very well. wynn, las vegas, caesar are benefitting from a huge market. we're the entertainment king there. >> are you obligated to be a raiders fan as well? >> i am. i'm a las vegas fan so i'm a raiders van and vegas golden nights. i bet we'll probably get basketball in a few years, maybe soccer. las vegas is becoming a really fun sports town in addition everything else. >> all right jim good talking to you. brian back to you. >> all right susan lee thank you very much. other story, that apple development conference. let's go back to josh lip ton. josh big news on how we can pay each other by phone. >> that's right brian. so apple ceo tim cook was on stage talking about iowa 11
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their new operation system. take a listen. >> now, today we're going to take the world's best and most advanced mobile operating system and turn it up to 11. >> now, new feature, 11 is going to be per to per payments as you mentioned brian. it's not clear to me right now, does that mean payment to iowa yans or iowa west. i'll keep looking into that. also in decision to that news we are leaning pretty heavily right now on the mac line up as well. you saw a bunch of news there. last year's mac book are going to get new processors. there's a new configuration of the the mac book pro which is going to be at 1299 which is a
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cheaper price. i think this is apple saying hey listen we're going to be players in this space. i think they also know they have competition. they also know -- some of that represent roughly 10% of the sales. as i told you guys earlier other news they want to mention apple t.v., how amazon is coming to that device later this year. they're going to deliver on that promise. they got to offer their fans as much content as possible. guys back to you. >> thank you so much josh. there's a lot of monitor. two apple shareholders are joining us now with their take on what's coming out of that conference happening still right now in san jose conference. let's bring in tim. tim i guess i'll start with you. we've gotten a number of headlines, what's sparking your
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interest so far? >> i think the, you know adding amazon to apple t.v. has widely remote for a while so that wouldn't news. i'd say imports to siri, allowing siri to get into other apps is a fight against google and amazon with their voice assistance. i think further developments of siri is very very important and perhaps that might one through the home kit so you can use siri as a personal assistant anywhere yo your home. >> you don't think apple's missed the boat, but it seems like it's so focused on what google's home assistant does, what amazon's alexa does, is there some time to catch up? >> well, i think john fort hit it earlier in the day, nobody knows how many alexa's have been
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sold. google hasn't released how many home sales have been sold. apple takes the lead when you count the siri on them people have been carrying it with them for a while. if you have that system with you wherefore you are it could be much more functional. i think apple's behind at all, it's just that they're not selling a speaker along with it so far. i'd be interested to seeing siri move out the architecture of apple products. >> paul, you know for a long time people wrote off the watch it wasn't a big mover. but today i thought there was a very interest announcement it was going to have a partnership with decks conn which is a morning system and feed devices to the phone. that could be a very huge markets if americans with
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diabetes who had to monitor their insulin can do that with the help of a watch, that will be tremendous i would think. >> i think it would be tremendous and obviously they're trying to blend fitness and healthcare. and healthcare one you get past financial and third largest sector with s&p 500. it could be a large and exciting markets. for all expensive purposes for as far as the eye can see this is a wireless phone company. >> you also like fidbit though paul, does that mean you think they have more room to run in the fitness area over apple? >> well, the way i look at fidbit is fidbit is a turn-around story. the company is deeply troubled. i think it's a nice warren buffet contrary style value. it's not apples to apples, thing are going quite well at apple, i just worry at 155,$000 a share
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there's a lot of juice within that stock. for all purposes despite what they talk about today the success of iphone 8 or what they call it is beginning to be parallel. >> tim, they always talk about investments in companies that have motes. does apple has the deepest moat mote of all? i asked our audience if you got a iphone for years with different apps and photos are you switching no matter how much the next iphone cost? do you have the big else mote out there? >> i think in current iphones they easily have the biggest mott. they been building the instructs arou -- shrubs around this big tree. what people fails to recognize is what beats the iphone is
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going to be some form of communication. all the focus on sum sung's next phone or japanese phone and china -- >> watch what the iphone does. >> or watch an ear piece your thermostat. the operating system underlining it all is hopefully what matters two or three years down the road, not the device that's delivering it to you. >> thank you for joining us paul and tim. still more to come. shares down about 1% at this point which is typical on a worldwide conference day. stocks slow today but something's happening with the nasdaq qqq which has not happened before. plus we'll go back to the big cancer conference and talk with ceo whose stock is up a cool 7.5 in the past year. what could snapchat, and all the social media sites could be
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doing to monitor terror on the platform. discussing in debate coming up.
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news alert on uber. dee dra's got that story. >> this is just crossing the wires, if san francisco's attorney general has issued subpoenas to uber and lift to turn over records on driving practices, the constable access and service here in san
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francisco. they're seeking more information, a number of data of eight totals including miles. incentive that encourage drivers to drive longer, commute from far away places, as well as services provided to san francisco residences. essentially guys, the industry has it grows quickly to of course the two major -- uber and lift, it looks like the san francisco regulators are asking for more information, more data as they navigate this as well. i thought it was interesting, they're focusing on long dayns driven because they know uber and lift are looking into expanding into longer commutes or shuttle time type -- type rides. back to you. the stock markets on a hold today but that does not mean this still couldn't become a storage day.
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nasdaq pricer qqq has moved higher. something that etf has never ever done. let's bring in steven reese and eric knutsson. steven, i'm not going to ask you necessarily quote on technology of the qqq directly though i saw your little sweat go across -- >> we like tax. >> call my cynical, when i here 23 and 27, records records records, 24, 24 times ford earnings on the qqq, four stocks leading the whole rally how can i say i can't be weary? >> we don't think the sector's expensive at all. if you look at it relative with the growth that it offers, it trades at a discount to the market. we're not concerned about evaluations, we're happy with the earnings trend that we've seen across the sector and a lot of names you've mentioned in
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terms of driving upside has become cheaper throughout the years -- >> the earnings have -- >> we're not concerned. want to be more selective. we think there's good opportunities. >> you also like energy when that's done in the less -- >> it seems like the market is boring today but there's a lot today, we got energy down 14%, and the concern about the oil prices. oil prices remain in a range and i think if that happen you can still see good options for some companies. we're sticking with that call, selective exposure and the energy space in the u.s. is a buy here. >> eric, tell me why investors should be in bond -- if we are to believe, if everybody loves technology, people believes
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there's economic growth around the world why am i hiding out in the utilities stock or the consumer staples, the consumer stales stock at a current pe more than 20 premium to the market? >> right. well, we would agree that there's -- the u.s. stock market is not terribly overvalued but we are trimming or exposure to u.s. large cap stock. the run up we've seen technology we think is a little overdone now and we'd rather move to where we can take advantage of a better economic growth. so we're bias in our portfolios and our global fund, we've shifted from large tax stock. another theme is what you highlight, which is in this environment if we are going so to the see rates rise, if we see volatility increase which i think we will, then stocks that pay a higher return of dividends
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where you generate higher income allows you to reinvest at better levels. >> how much time do you think we have -- we've heard the frame interest rates will rise, how much time do you think we'll have until we see that rise in interest rates that will get people rethinking of bond proxies? >> sure. our fair value on the ten-year treasure has a yield of 26.6%. we don't think it moves dramatically higher in the short-term as so much is already priced in, the next rate increase by the fed. we think the market is unwhat underestimating the willingness and conviction the feds has to raise rates over the next 12 months. we do think rates will be moving higher from here but it will be a gradual process. when the rates starts rising that is one of potential elements that can create opportunity. >> we got to go but steven,
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that's the most incredible thing to me about this year. stocks are up, bonds are up, gold is up -- >> some things got to give right. >> brazil, mexico, europe, every where around the world where is this money coming from? >> earning growth has been fantastic so i think the tail risk are less this year than we've seen in the past, not to say that there's not risk out there but the environment, if you can cut through the political head line and noise it's quite good. >> i remember for years we talked on the set, all of the money that's on the sidelines how many times do you say that. >> very few people are overweight so -- >> so there's more money on the sidelines. guys thank you. erick and steven. stocks rising today after data at the cancer conference. we'll go back to the conference
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and talk to the ceo inside pharmaceuticals. stay tuned. you think traffic's bad now, the future's going to be a nightmare! does nobody like the future? c'mon, the future. he obviously doesn't know intel is helping power autonomous cars and the 5g network they connect to. with this, won't happen in the future. thanks, jim. there's some napkins in the glovebox. okay, but why would i need a napkin? you could have just told me a bump was coming. we know the future. because we're building it.
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. welcome back to "power lunch" i'm josh lip ton here at.coma developing company in san jose. in terms of time line it was back in december, they told us they had 20 million. they also aannounced new features for apple, music and social features. and it was last week when apple said, car pool karaoke which is their dip into the original program is coming august 8th. they trying to different rate that services from moderate fie. the apple store, 500 million weekly visitors and the app store is going through a redesign. guys back to you. >> josh thank you. let's get back to ash ford the world's largest dedicated.
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meg standing by with an exclusive interview. meg. >> joining us now is the ceo. thanks for joining us today. >> thank you r inviting me. >> tell us about this update you have here on the immune system to fight cancer. >> what's important in the new data is -- so -- is an -- and what makes it very special is spectrum of the technologies for immunecology is that it is one of the first to be divert with -- of moderatie moderate fieing the -- it's a local treatment to make more -- to immune therapy that is the system mask --. we have very kon sis talent data in two different ties of dt 1.
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>> bristol-myers. >> bristol-myers. and all is coming. it's very exciting for us, it's leading us in a new direction where we are going to initiate additional studies. we have one study that's been ondoing for a year and a half and we're going to initiate the number of studies that we've been testing for regulatory effect of this product when you combine it. it's a big step for -- i think it's a very important rare position for the -- micron -- so very exact of the strategy and it is a local treatment. so in some ways it has very few unwanted side effects because it's not a systemic treatment. >> we saw data ahead of the conference before we got the initial data.
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strong reaction strong to that, stock up 27% in the last year, today a little weak. what do you think is causing that? >> i don't know. we don't look at it that way. a lot of movement today. the way we are managing the project that we have here is to invest in parallel in mumble indications and that's what we notice the data is showing. you have of course the number of indication, something that is very consistent. and that's really what we are concentrating on. it's a long-time project. it may have some ups and dons in between that can happen depending on different -- but we are concentrated on the long term for this project and we are happy about the size and scope of the project. >> what do you think about business development for in sight?
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your named as a potential target for bigger companies to acquire. how do you think about your future independently or buying other things yourself? >> so, our future is we are building. we are building a company in fact we're starting a company in japan, so we have new york and japanese aprags. infrastructure of the backbone is now getting in place. not -- but you know when you look at the average of the success rate that we have it's a very product organization from research and that standpoint. with we're looking at other opportunities. the portfolio itself is not the sum of the size, you know next to each other, they are connected through biological. and how do you have the benefit of adding different big affect on the tumor.
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some studies are a very good example of that. we know it can work by itself. when you adding something you're raising that in a way that has been shown here to be consistent. so we would continue to look for biological that make sense, but our agenda is build companies that would be for the long term and i think today is a big step in that direction. >> we'll keep watching. thank for joining us. coming up on "closing bell" our ceo is nick. how to stop terrorist from spreading their message online. what can media companies do and what responsibility do they have. that debate coming up next on "power lunch."
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hi everybody i'm sue herrera, here's your news update at this hour. speaking at a summit on the environment in china, california governor jerry brown says his state will continue to work with beijing to abide by the paris climb accord. >> california is all in 100% in meeting the paris agreements, in fact going beyond.
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and we only make it and do that if we can work with china, chinese provinces to get the job done. the supreme court upholding a lower court ruling that 28 north carolina state house and senate districts violate the rights of black voters. it did reject the lower courts order to withdraw the districts. it sent the matter back to a lower court which could order new districts by the 2018 elections. how fast does a tennis ball travel? take a look at that, try zipping down from the second floor of the identieiffel tower and you'd out. teaming up with the french to allow volunteers to zip down 25 miles per hour, that's the speed of an average tennis ball being smashed. not for me, there's no way. >> brian and i were just say we'd totally do it. >> i would not.
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>> but i'd ask what was the weight limit on zip line in. >> i don't know. >> and i want to go before brian. >> i don't know 317 -- >> i'm not the last guy you want stepping in the el vary. >> there you go. and by the way, at the french open, the 55 miles per hour is the average speed for someone whose not a professional. no vehicle routinely serves at 117 miles per hour. in the wake of the attacks in london british prime minister theresa may speaking out when it comes to terrorism. >> we cannot allow this ideology the safe space to breed, that is what the big internet and companies that provide internet based services provide. we need to work with democratic
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governments to reach into national agreements that regulates cyber space. and we need to do everything we can at home to reduce the risks of extremism online. >> facebook responding today saying quote, we want facebook to be a he or she still environment for terrorist. and twitter also responded quoting terrorist hate has no place on twitter. let's bring in andrew and kevin the associate professor at legal studies and business at wharton. gentlemen great to have you with us. i'm sure most people at most social media companies want social meed that to do their part, kevin, isn't this a slippery source aren't we asking too much of the social media companies? they're not arms of the police or state. >> first of all, i think it's wrong for theresa tomato suggest
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that the social media companies are not doing nothing. there's companies working on rooting out this content. so these companies are doing something but i don't think that they've come to terms with the fact that they are now the platforms that people use to interact all throughout society. they're not just reflecting the world, they're actually shaping it and they need to understand that they have a fundamental responsibility -- >> you are asking social media companies to ask judgment and doesn't that cross the line? if this is a platform for the exchange of ideas, understand there are thing that are blatant but you're asking them to make some sort of judgment as to what cross it is line and is that fair kevin? >> they make judgments all the time. what you see on your media feed is not the last thing people posted. those companies make the decisions about what content
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they show. they optimize for engagement which feeds into their business model and they try to be responsible. i think they need to recognize they're at a point where this is not just a triviale site that people used. this is being used by billions of people around the world and affecting huge social issues. the companies have to understand the decisions they make are more important, they got to be more transparent about them and do everything that they can. >> andrew, what is the current protocol right now with a company like facebook, and twitter? they're using both humans and i assume some artificial intelligence to screen for maybe key words and certain things that are alarming. how much further do they need to go and what are they doing already so we understand what happens beyond what we can't see? >> so, i would say the big thing is -- we have to understand social media is not just facebook, twitter, snapchat or
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instagram, what the terrorist are using is a platform called telegram and that's kind of its own separate entity. something like twitter, they announced in the second half of 2016, they basically deleted hundreds of thousands of accounts. the social media platforms, the major platforms are doing exactly what we would want when it comes to combatting terrorism. the one kind of shady area is we know a lot of terrors are using whatsapp which is owned by facebook. but for the most part the major platforms are doing everything you'd expect and want in their por to combat terrorism. the really combatting that needs to occur is beginning to come from law enforcement and intelligent officials in these different countries. i think one of the things we heard from theresa may, she's putting the blame on the wrong place, it's no facebook or twitter that's the issue, it was kind of the intelligent services
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themselves. >> -- andrew, with all due respect i couldn't disagree more. the social media want their cake and eat it too. they want to say their the media, new thing platforms, old dead media. if someone gets on this show and advocates terrorism or try to recruit someone for terrorism the fcc is going to shut us down. or fire us into oblivion, what's the difference? >> you're talking the difference between social media -- there's . >> there's no difference we've didn't told that. >> there is a difference. there is more of i think you would consider almost a wild west to an ex tentd when it comes to social media because there's more regulation in terms of what the platforms do themselves. these companies also continually work with law enforcement to provide information and as we all know -- >> why shouldn't they be
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regulated like we are then? that's the whole point i think you made my argument for me andrew? >> these plat farms are different because their open media platforms. there's not an ed tore that's guarding facebook. 20 years ago we had this debate. and the online platforms, before social media they made the valid point that if you hold us liable for everything that happens on our platform, the same way as a newspaper which picks what goes on a front show or t.v. show that picks what goes on the air, we have a huge media where we have no control, there's no way we can control the contend. i think the -- >> that's a cop out. that's a cop out. the fc -- you can't start a radio station, it's hard to go -- they had pirate radio stations you can't do, walmart has trillions of products and they're responsible -- if i eat
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a bag of chips from a random walmart and i get sick you're probably going to sue. it's not our fault people thing that sounds like an old dated cop out argument, no? >> i'm not saying they have no responsibility at all, i'm saying now can't say any time some hate speech that goes on on facebook then we're going to hold facebook responsible. the moment that happens you're going to shut the whole thing down. >> you can maybe stop one person down but not everyone, that's what happens when you look at walmart/amazon products with these third place marketplaces they can't control everything here? >> that's the big thing. you can't necessarily control everybody that's going to be participating when billions of people are participating on social media and they are doing what they can of shutting down
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accounts and prchbing hate speech. it's when you have the encrypted messages system like whatsapp or telegram where you have appear issue. if you were to try to control social media the way that you have with traditional media it will be difficult. as kevin was saying, the laws are ante kuwaited at this point they don't deal with social media as it exist. you're trying to play catch up which is very difficult to do until the legislatures themselves come out -- >> i got to go. i find it a little hard andrew just to believe, if i type an e-mail to melissa and say hey, you want to go sailing this weekend and two hours later i get a ad from a sailboat rental pops up, millions of kids getting cyberer bullied as well, we got to go. whatever. i got a lot to say on this. come back. good conversation. thank you. >> thanks.
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the nasdaq 100 etf on the run ber than any point during the the dot com boom. "trading nation's" next. than ae the dot com boom. "trading nation's" next. t than the the dot com boom. "trading nation's" next. t than the the dot com boom. "trading nation's" next. er thang the the dot com boom. "trading nation's" next.
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as we talked about earlier, if the nasdaq qqq finishes higher today and it's basically flat lining right now to be up 23 of the last 27 sessions, that , my friends, something it has never done before. david, chad, i guess when you look at history, two ways to look at this. uh- uh-oh, we're moving, this is dot com boom stuff, sell everything. or momentum begets momentum, longer term gains. what's your point of view? >> incredible momentum. i wouldn't say anywhere near dot com-ish bubble material. have they taken off? absolutely. these bigger mega names, the facebooks, the apples of the world, all these names have taken off and represent roughly 11% of the top five holdings. it's incredible. will that continue, brian, that's your question? at some pace, but from a relative perspective and our
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technician but a put out about this this morning. from a relative perspective you're probably better off looking at other pockets in the market like the financials on a relative basis, probably start to outperform versus the qs. let's say even the transports, they look really good right now from a relative perspective to take a bounce higher. will the momentum continue? i wouldn't bet against it. i think it's going to continue to gradually move higher but you can find better bets in the marketplace in the financials than in the transports. >> chad, your view on this pretty incredible run for technology? you're a value guy, what do you think about it? >> a lot of the run is based off of earnings and revenue growth. earnings growth came in roughly 12%. that's what we are expecting over the next 12 months. revenues 8% higher. valuations do matter. concentrated sector, looking at roughly the qqqs, about six securities represent 42% of that
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index. so we would actually be transitioning, not running out of the index, but a slow walk away. we look towards more low volatility kind of companies. look towards the staples. we think that's perhaps a good way to play this. we had a huge run-up, time to start walking away. >> chad and david, thank you. slowly move away. go to trading we're back right after this.
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another stock crosses $1,000 a share and today that would be alphabet hitting an all-time high and pacific crest saying apple gets downgraded to a sector in the worldwide developer's conference but buy google and alphabet because there's substantial upside. we're seeing that pop. >> three attorney generals are trying to stop robo calls. so tricky, 2.4 bll billion a mo >> your success is not the
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world's problem. you are now media as well. welcome to the club. might have to take more responsibility some day. >> interesting to see how the laws develop around this. >> if they develop around this. >> yeah. >> thanks for watching. and thank you, courtney. >> thank you for having me. >> "closing bell" begins right now. hi, everybody. welcome to the closing bell. i'm kelly evans of the new york stock exchange. >> happy monday. >> yeah. >> happy frigid monday here. it's very cold in the new york stock exchange but you don't care about that. i'm bill griffith. amazon prime video is coming to apple tv. we have a new imac pro, paying your friends through imessage has been announced at the developer's conference. you're going to love that one, right? >> i mean, i like apple pay a lot. >> now you'll be able to use that as if it were like venmo which you also


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