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tv   Closing Bell  CNBC  August 16, 2019 3:00pm-5:00pm EDT

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lots of sunshine and lots of ferraris here in pebble beach. >> that's why they're feeling so optimistic hard to be too upset >> some very complicated names to pronounce congratulations. >> thank you, sir. and thanks for watching "power lunch "today. the "closing bell" starts right now. welcome to the "closing bell." at the general electric post where that stock is almost entirely wiped out yesterday's losses surging 9% right now. the dow up 259 points with 59 minutes to go. we've got everything you need to know to end this volatile week >> we certainly do i'm will fred frost. let's take a look at what is driving the action stimulus from china and germany. two countries who weekday has sparked a global selloff during the course of this week. bank stocks in particular a lift and renewed hope for a trade
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deal as president trump says he is scheduled calls with president shi xi jinping the highest this session was 334 on the dow coming up, gregg lemmkau live and exclusive. lots to talk about with him on the market merges, ipos and the outlook for the rest of 2019 joining us for the first full hour of the show, keith bliss. crazy week, now only down one percent. talk us through the roller coaster five days of trade, the key levels that we have and haven't touched. >> sure. so overreaction. my theme has been overreaction and you certainly saw that in the monday night going into tuesday trade, a lot of what you have in the market today is a lot of program and algor rhythmic trading as opposed to humans die jesting the information. so you saw that overreaction we actually touched another oversold level that we had
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picked up from august 5th. so we were already oversold. that just went further down and the yield curve, the 210 inversion was only a basis pointer too and the amount of selloff was certainly incongruous to what people would think of in a potential recession. so this overreaction was destined to come back and especially what i like is that the small caps have outperformed the rest of the market today and that is an important, important signal for us to sustain this going forward the rest of the year >> let's focus in on the big stories. dom chu is wrapping this week on wall street. dom, let's start with you. >> let's put some of those numbers to the levels that keith bliss was just talking about with regard to the s&p 500 you already saw how many hundreds of points we moved there. on monday some of those growth fears drove the s&p down by 35 points so that was the start to
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the week on tuesday we rallied back because tariffs are being delayed until christmas time we saw them move up about 43 points at that level and then on wednesday, the dbig selloff sent the dow down about 86 points at that point and only to see on friday up about 39 points. that's where we are right now so we'll see how we end the day that's the volatility, not just in the dow but in the all bigger and pertinents such as the s&p 500. >> let's get over to rick santelli >> short ends down a few on the day. the long ends up a few look at the year to date, 10s minus 2s it's positive now. 5, 6 we closed basically at zero. never went negative. 30 year bonds are down 26 on the week but they are up a few on the day. this is a mid july chart it has been a swoon and finally
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dollar index normally goes down when you have swoons but look at this chart from may 2017 we're not far from fresh 27 month highs. back to you. >> thank you very much we've also seen big trade head lines moving the market and kayla has the latest on them >> trade headlines could continue to move the market in coming weeks prlt saying he has a call scheduled with china president. the president got an earful on wednesday about this from ceos of three of the country's biggest banks. steve mnuchin put them on the line and they proceeded to have an impromptu 20 minute dus cushion about the economy where ceos said trade uncertainly is hurting business investment. a source says the president was receptive to that argument but he likes tariffs >> yeah lkayla you've been doin
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additional reporting as have i and i guess relative to the initial headline when it broke, the key takeaway was that this was originally a normal business scheduled meeting between the treasury secretary and the bank ceos that then evolved into the current market environment as opposed to some emergency round table? >> yes, it happened on the day that the dow fell 800 points and i'm told it had been on the calendar for about a month the main topic of that regulatory meeting was the bank's secrecy act and some anti money laundering issues. no word on exactly what the content on that front was, but after that meeting that's when the treasury secretary pulled them aside and said the president wants to talk about the economy. he wanted to ask about global growth, about the fed. they did say the u.s. consumer was strong although flash points and uncertainty around the globe are not helping. >> thank you very much the only other thing i'd add is of course bryan moynihan's comments today that he does think the u.s. economy looks
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stronger, the consumer in particular still on pace to finish the week in the red this will be the third straight week of negative returns for the dow s&p and the nasdaq let's bring in michelle mckinnon keith bliss still with us of course as well let's start on the consumer. bah because backwards looking the detail has been good forward looking are we going to see it turn down given that confidence number we got this morning? >> no, i don't think so. i look at 2015 as well as 2016 where we had that lag in manufacturing data however the consumer pushes through and i really look -- it looks like that's how it going to be this year and those retail sales numbers coming out of july were double what analysts expected and i think that's positive news. >> we're going to keep talking about this but first we've got some breaking news on the fed and steve has those details for us >> reporter: thanks very much. the cleveland fed president making some comments to routers
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saying she would have wanted to hold interest rates but said it was a close call she is concerned she's economic risks in the u.s. are weighted to the downside. u.s. my she says is cloeing but not in the same way as the global economy and one of the problems she says trade policy having an impact on business senltme sentiment. the choice of holding steady or lowering rates is not inclined to be raising interest rates if that may be the last monetary policy feds we get until jackson hole next week lots of fed speak thursday and friday from jackson hole >> looking at all of this commentary and what you just said, what exactly does she mean when staying -- holding on rates is tightening policy in some circumstances? >> right so if you -- if you should have a lower interest rate because
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that's what you -- where you are relative to the economy, in other words, if the low -- natural rate is lower than where you are, then you actually tighter than where you should be, so in that case holding steady means that rates are above or restrictive in the sense of the current economy at the time >> a fascinating week next week. we look forward to all of that coverage >> a lot to talk about >> beautiful backdrop. let's get back to the market discussion here. keith, on the topic of the fed, i mean, do you expect next week to get clear guidance from central bank is it a big bout of easing coming will the market be disappointed if we don't get that >> the market will be disappointed if we don't hear that because they've been telegraphing that. the entire market here in the u.s. the september meeting for the fed. the ecb has made noise about that bank of china is considering massive stimulus measures at this point in time as the tariffs start to take bite and
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the threat of tariffs start to take bite. so if we don't hear signals out of jackson hole next week from all corners of the major central banks the market will act negatively to that and so we need to have that to keep this sustainable rally. >> do you agree? >> yes, i agree. however, i think it's just one weekend. it's just one day and what i really look at is what it has signalled over the last few mapts. he then retracted it back and now he seems very committed to doing what it takes to push the economy forward and i think that's what you should see >> michelle, you're bullish energy >> yes, the s&p is up 13% today and energy really hasn't done anything and specifically i picked royal dutch because not only does it have a better dividend than the s&p it has a $25 billion buy back program but i love the fact that they're transitioning from this big oil company to this energy company
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they've committed 1 to $2 billion that they're going to invest in sustainable technology over the next five years and i think their carbon net emissions are trying to have them by 2050. so not only do you get the opportunity for growth but a strong dividend and a company for the future >> even though maybe perhaps there's a lot of uncertainty and slowdowns on crude oil, putting pressure on energy stocks more broadly? >> actually if you're seeing energy prices are up 25% for the year, however, energy stocks have stagnated so i don't really see oil as well as energy stocks being so well correlated and i think that's a good thingments we've had such a harsh sell off in 2015 and 2016 and those companies want to move away to being so tied to energy prices so that's a positive >> crude sits at 55 or so. what way do you think from here? >> we have it modestly oversold at this point in time. clearly it's a global growth story at this point in time. but i think there's also an
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underpinning here where commodity prices are signaling deflationary pricing so i hope the central bankers will come out and say we're going to inflate our way out of it and oil should move higher >> great to see you. >> still to come here on the closing bell, we've got of course the close which is 15 minutes away currently 274 points higher on the dow. the high risk 334 for the week as a whole we're down about 1% down on the s&p. general electric ceo marking a line in the sand by buying stock yesterday and it has helped the share price rebound. was yesterday's short goal overblown or just the beginning? we will discuss. >> and here's a check on our data tracker housing stocks dropped for the third straight month but some interesting numbers beneath the headlines. we'll fill you in on those and consumer sentiment dropping to its lowest level since january. more closing bell after this break. this is the couple who wanted to get away
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welcome back to "closing bell." here's where we stand. more than 1% for the major
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indices up 2% for the russell, a nice healthy rebound to what has been a crazy week. we're still down around 1% for the s&p 500 for the week >> general electric shares speaking of rally are also soaring today after ceo bought $2 million worth of stock yesterday doubling or nearly doubling his stake in the company between that and the purchase he made earlier in the week as well the vote of confidence comes after a rough day for ge the worst day for the stock since 2008 after investigator harry released a report alleging ge is covering up accounting fra fraud. here he is predicting doom for ge >> ge is losing $5.27 for each dollar of premium income they are taking in. those losses are unsustainable and they're growing. for 2018 they grew at 60% rate it's going to make this company probably file for bankruptcy
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>> ge director appeared on "closing bell" yesterday to refute the allegations and question his motivation. >> he seems to be con flating all of those different bases of accounting now, we can question is it become of incompetence, he doesn't understand the accounting standards here or is there some other motivation it's not acceptable to say let's stake the statutory basis and book it for gap. that's not how it works. >> bryan, thanks for being here today. real simple question why is ge up 9% right now? >> well, it all depends on where you start from and let's just start with mr. markoplos' report. there's a very good analysis in here his work on the long-term care liability is very good work but there's a lot of hyperbole and
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innuendo around it why is it up 9%? it's just math first got slammed significantly with the release from his report now it's bouncing back because as we really start to die jeges we can see what here is new and what here is rehash and no small part of this is rehash >> and to that point, brian, what is your assessment of both that report from markopols and the report >> i haven't memorized all the pages but the core analysis he's done on the insurance side is very good work the broader theme of the report and the innuendo, there's a lot of garbage in it and with respect to the company response, let's be realistic if you say something bad about my mother i'm probably going to respond in kind. >> brian, you also refute the fact that he suggests these
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issues have gone back as far as the 90s. is that right? >> well, there was one comment that he makes in his report where he claims that in the late 1990s there were questions and that portfolio plangmanagers wod index the stock in case there were problems. that's a lot of garbage. no, this stock had a halo around it even when jeff took over as ceo for probably the first three, four or five years so no, it wasn't till about 2006, 2007 that people really started to question the company >> this is a company that has certainly been through several pretty rough years it's in the midst of a turn around right now that long-term care insurance business is certainly in focus
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in your assessment of the company and of the stock, do you expect that it's going to have to take greater reserves for that ltc business? >> right well, he makes the case for further reserving. i wouldn't discount that possibility at all i mean, when you think about, you know, the aging of the book, some things he does point out and the fact that interest rates have remained very low, that's hurt any company that underwrote thinking they were going toear higher returns than they are but that won't be ge specific. that will be for any insurer which has written these 30, 40, 50 year liabilities. >> do you think that possibility is priced into the stock here? >> a lot of it is. exactly how much, we don't know. i mean, that stock was in the low 20s, low to mid-20s when ltc first blew up in the public
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market and look where it is now and that got the shares down to really about where we are now. so i'd have to say yes >> keith, what's your take on all of this? and also how much of this sort of wild card possible risk on ge was already priced in? because there's been a lot of skeptical analysis of the company for the last couple of years. >> there really has and if you watch the slow bleed as we're talking about here, you know, moving down from 30 into 20 and i made the statement, it may have been on the air here, $20 i wouldn't touch it. that turned out to be somewhat precedented as we come all the way down but it's really about people not understanding the various businesses and the components and how they fit together and knowing that there are problems not only in the ltc business but also in the broader industrial business and you're seeing that reflected. listen, i can't tell you that i know a lot of people that want to touch this stock even at these levels >> brian, just to wrap all of this up here, in terms of the
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accounting which is certainly under scrutiny on the heels of that report yesterday, we do know that regulators have been investigating some of the company's practices around how it's accounted for certain businesses what is your expectation for that and how do you think this report fits into that bigger discussion >> great questions by the way, after -- i take a little bit of issue on the aspects of the industrial portfolio. with respect to the accounting clearly there was aggressive accounting that's why we're going now to probably our third cfo in the about the last three years right? however, regulators can and do take a wholistic approach and when they come in and they're already there, they're looking at is this the same management team now and you have a different ceo than you did a year ago and this is not a lifer. this is someone who's come in from the outside i would flip a quarter over the phone with larry couple and trust him. this is a different leader
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you have a different cfo that will be coming in. regular tators will look at that very differently than it's the same group and they've taken another charge on the industrial side there are challenges we know power has to be fixed. that's going to take a lot of fixing they've got bad business they wrote but having spent some time traveling globally there's good underlying demand for power projects on the aerospace side clearly with the 737 schedule being adjusted that's having an impact on the aerospace supply chain but the underlying fundamentals are still fairly sound and health care is health care so i wouldn't say that the industrial portfolio is broadly speaking a debacle however the huge one that has to be dealt with is power. >> thank you for joining us today. >> you've got apple -- i should say coming up, apple, one analyst says don't look now but where they're moving the needle. >> and a live interview with goldmann's cohead of investment
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wearables are actually moving the needle it has contributed more year over year growth than services for the first time ever. ubs reiterating a buy rating and a $235 price target on apple stock which is up 2% today >> capital saying the firm is in a good place signing marketing share gains and healthy traffic trends among other factors and hereink says informs tors are underappreciating the company. >> analysis of wearables they have done a survey across four geographies only 7% of iphone users own air pods already incredibly low number.
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12% if it's an iphone x. down to 3% if it's an older model and just highlighting as people upgrade they will start to buy air pods for the watch. so clearly the potential for more people to buy wearables but i think for the next couple of quarters the share price is still going to react more to iphone >> they've been trying to transform their business model into these other revenue streams as well. so they just came out with power beach pro which is by all indications an awesome pair of ear buds that people can use but i think also wearables is it, but the real trick is once they get market share they're going to have to figure out how to plan obsolescence like they did with the phone >> with all the trade and tariff angst that's been playing out, apple stock is down 3% month to date and by almost all of their metrics it's actually higher >> you would be foolish to have bet against apple the last 20 years and it still plays out
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wearables seems to be it and then they'll come up with the next great phone >> we've got your last chance trade, plus it's been a week of sharp swings why some of the most volatile parts of the market are flashing warning signs for the economy. a bullish take on the outlook from here.
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welcome back to the closing bell the sea of green that has not been the norm this week but it's great to see as we close out a volatile week. we're up 1.3% on the s&p 500 today. up 255 for the dow we're still down about 1% on the s&p. >> yeah, really wrapping up what was a really volatile week let's take a look at what's driving the action today bullish stimulus signals from china and germany. yields bouncing off their lows, that is giving bank stocks a lift and renewed hope for trade
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deal progress as president trump says he is scheduled to call with president xi. >> hello, everybody. secretary of state mike pompeo and other administration officials are set to brief president trump on the state of peace negotiations in afghanistan this afternoon trump is spending most of the week at his golf club in new jersey he has long been skeptical of the need to continue a u.s. military presence in the embattled country. pennsylvania governor tom wolfe signing an executive order to combat gun violence it comes two days after a gunman shot six philadelphia police officers jerry kelly, the woman accused of holding four students at gun point when they knocked on her door selling discount cards for the high school football team appearing in a courtroom for the first time on thursday she is the wife of the county jail administrator
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she has pleaded not guilty to all charges against her. and tyson foods is recalling more than 39,000 pounds of weaver branded frozen chicken breast patties they may be contaminated with extraneous materials the product was shipped to retail locations nationwide. it has a use by date of january 31st, 2020 you are up to date that's the news update this hour morgan, i'll send it back to you. see you next hour. >> thank you we'll send it over to dom chu looking at some of the most volatile parts of the market this week. >> they have to do with commentary about not just the u.s. economy but the global economy as well. as we talk about the s&p 500 you can see over the course of the one week span we're still down a little over a percent at this stage despite the 1% gain we've seen and we've seen that nice rocky move that we highlighted earlier in the hour. with regard to the specific parts of the market that have seen some of the most
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volatility, we're going to take first of all, you mentioned those financials as being one of the driving forces behind trading over the course of this past week. if you take a look at financials overall, 1.7% over the last week though, still down over 2% this particular etf, one of those points of interest for many investors as they watch about the interest rate picture and what the yield curve inversion really means for the bank specifically. and one other place i would point out that's not getting as much attention today giving the massive runup everywhere else is the oil market itself. we are seeing gains in wti and brent however the energy stocks are not participating as much in the overall picture and one of the reasons why we're seeing that play out today, this sector is down about 3 and a half% so far. one of the places we're seeing that place out is in these energy stocks and one reason why is because opec has taken down their forecast for global oil demand over the course of the rest of the year, so it's not just oversupplying the market
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right now. it's also question of demand and oil stocks not participating as much in today's rally. back over to you guys. >> keith, with that summary, i mean, even though industrial's financials are leading today's bounce it doesn't change the layout for the land which has been defensive in terms of the sectors that have done the best. >> without question. that's right so with any money flowing into the market you've seen those defensive plays. the xlf, i'm glad dom put that up on the board. the xlf was the most oversold. vastly oversold and that's first and interest rate play second in growth play, third a tariff play and the tariff play comes into the smaller cap and mid cap financials who mostly do their business here in the u.s if companies are not doing well in the u.s. they won't be borrow k more from banks. >> and is that why you're seeing a bounce in the small caps as well is that why that's to see that >> without question. the largest constituent groups are financials and nonbank
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financials are 23% if we still think the growth is going to be there, it's got to lead us out of here to keep this bullish trend. >> u.s. home building falling for the third straight month in july we'll dive into the latest housing data and get comments from the ceo about the state of the industry and we'll preview the feds jackson hole summit with sarah bloom ras kin and here are the leaders and the laggers in the s&p 500. "closing bell" back in just a couple minutes don't go anywhere. how do you gauge the greatness of an suv?
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is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month with credit toward your first month's payment at the mercedes-benz summer event. mercedes-benz. the best or nothing. i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool?
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eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade welcome back u.s. home building falling for the third straight month in july let's get to cnbc diana for more >> the head line house number was bigger but it was always
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because a big drop month to month. single families saw a gain up 1% for the month and up 2% annually single families start in the first half of the year were down f% compared with the first half of last year so any gains are good especially given how low the supply of all homes for sale is right now single family up a little more month to month not exactly awesome especially given this drop in mortgage rates. usually stocks rise as stocks fall the two fell together for much of this year only diverging in the last few months. in a recent interview. jeff meger said i've always maintained that consumer confidence means rates over decisions. home buying hit a regard high but the consumer confidence are much weaker with more people saying now is a good time to sell, not so much to buy back to you guys
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>> whare you finding that theres differences depending on the price points in the homes? >> absolutely. it's all about price right now there's so much demand and so little supply so that's where prices are rising fast as we need more supply in the low end, builders continue to say they want to but they can't afford to because of the higher costs for construction today >> how are the home builders looking in your eyes >> you know, i'm not sure that i would be going into them in a great way right now. longer term i do think the trends are good for them because we are starting to have a lot of formation. but as diana is pointing out it's at the lower end of where the market is. so if they could somehow right size their costs and build there they're going to do quite well >> thank you we've got a market flash it's an palo alto network.
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>> the company's executive vice president of worldwide sales is stepping down. so the firm getting hit hard just within the last hour on the heels of this news right now down nearly 8% you can see now closer to 7.7% making it its worst day in two years. he's leaving after three years again according to the information and according to people familiar with the matter. i should mention that cnbc has reach out to the company we haven't heard back just yet in recent years the company has seen quite a desent amount of turnover they also have a new president and ceo. the company according to the information saying that he will stay on until september. they are looking for a replacement, but again, the cyber security firm down 7.6% on this news that palo alto vice president of sales is stepping down back to you. >> thank you we have got 18 minutes left of trade here on the closing bell up 289 points on the dow
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healthy rebound to what has been a negative and volatile week the russell leads the charge today. of course it's been a lagger but it's up 2.2% today we've got your last chance trade with keith bliss >> and goldmann's cohead of investment banking is going to give his outlook on the rest of the year he'll weigh in on deals and ipos and the flu hitting a record high in today's trade. here's a check on where it stands as we head to break we'll be right back. [leaf blower]
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welcome back to the closing bell 14 minutes left of trade we're up 1.4% on the s&p still down 1% week to date all sectors led with some signa calty. real estate and staples the three best performers of the week as a whole. bottom today or orbit still high >> let's get a check on individual market movers dillard's falling after an unexpected loss for the quarter. revenue below forecasts and saw same store sales fall 1% and shares are higher on the
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heels of its earnings and revenue beat after the bell yesterday. the company saying results were helped by demand for a newer high end graphic chips designed for video games. that stock is surging 7.5% keith, what do you think what do you think of the semis overall? the materials n video reporting better than expected numbers. >> if you are like me and believe there will be a trade deal worked out with china i think all that pressure you'll see them rally pretty hard and i'm a believer in a trade deal with china well ahead of the 2020 election. >> because the u.s. will soften its position or it will become comprehensive? >> i think they'll work toward that and again i'm a big believer that politicians understand where they are in the calendar and if this economy is going to keep moving the tariff situation needs to get ironed out. >> keith, let's go for your last chance trade >> i got really simple one
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today. playing the oversold and overbought situation that we have here in the market. so at the time stocks got oversold, bonds got overbought so a good bond proxy is the tlt. i think i'd be in here selling it right now as we think that is going to come in and we go neutral on the s&p 500 at 2950 ride that for a few more sessions i believe >> you were saying you were expecting some dovish commentary out of jackson hole next week so you still happy with the tlt trade ahead of that? >> because bonds got oversold you're right it could have pressure on rates but i think it's more the case where people got into bonds for fear trade and they'll find out the world is not collapsing. they'll start to move more in the stocks and rates will help the stocks so if you were to put those two together i think that's a good trade. >> the talk of the german fiscal
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yield, how much can we see bonds move if we do start to see a fiscal expansion in europe and inflation and the economy start to turn around a lit bit >> that's the key point. they've almost been pushing on a string to try and get inflation in this market when you look traditional market around 4%, we can't get above 3% the dynamics of the global economy are much different than what we faced 20 years ago there's so many moving feces pii there. you'll see rates move up >> an update for you on your stangs on two previous picks for last chance trades back on july 8th you pinpointed both of those. >> yeah, well, listen, i think canopy growth has struggled a little bit and movered sideways but i'm still a believer in the fundamental story underneath cannabis i can't predict the future but you see the trends going on and how it may overplay. i think this will be a case
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where the states start to run the federal government down a path a little bit. a lot of things have to change the canopy growth at play there is that we do get cannabis off here on the federal level. teledock has a good sound business to help people and if you look at the trends underneath health care and how we will consume health care going forward i think that's a good longer term play >> and they're both rallying in today's trade. that's for sure. we have got ten minutes left to go and we're covering all the angles of the market >> and after the bell we'll discuss president trump's handling when we talk with andy puzder that's still to come on "closing bell." how do you gauge the greatness of an suv? is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence?
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that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. we have just under 7 minutes left to trade. up 320 now closed the session highs on the dow which is 334 the s&p is up 1.5% declines now less than 1%. the same applies to the nasdaq price. up 325 on for the day.
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dom chu is monitoring the charts rick santelli has the bond reports. dom chu is also covering the biggest movers he's in two places at once so remarkable dom chu we will get to him twice in just a moment but first let's trade to close with tom cruise who is a trade stat gist. good to see you. so yesterday we talked about the vicks. it's quite a lot today were you surprised >> i was surprised to see a pullback this far closer to 18 i mean, we're off the lows we saw for the day. but i was expecting a little bit more concrete news that come out before we were really going to come out before we were going to see a meaningful pullback. i also was expecting bond yields before we see the vicks this close to 18. i was expecting it to get down to 20, maybe a little below that because we've had such a broad based rally i'm still waiting for yields to
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rise a little bit to be that second force that rises in equities >> you look at what's leading the s&p higher today if you look at the week as a whole especially given the fact that we have all this volatility, we have more of those defensive sectors like real estate like staples that are higher on the week, does that sound like a trend that's going to carry through into next week >> i think next week is going to be very interesting in that we are going to hear from the fed and i don't know if you want to move in in to staples to try and get a lot of -- anything defensively to get that upside move but i would look as one to maintain equity exposure but being able to write out volatility without getting this back and forth wash and if you were in like financials or texts you can look into staples as one area if you look like names like proctoer gamble, they had decent weeks. so look at names like that as
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maybe somewhere to be in equities and not be as exposed to some of the volatile sectors. >> how do you see that play out this week and given we're in august, could it have gone higher still >> no, i don't think so. so our work on august 1st actually had the vix overbought. we actually see it going neutral around 17.25 17.30 so we think it has more room to come in so i think you'll see rotation into growth names next week especially if jackson hole is dovish >> we got four minutes left of trading. the dow is up 348 points how does this bode going into the weekend? >> i think is something that you wanted to see going into the weekend and it kind of points to a lot of this selling it looked like just got completely overdone and a lot of those sellers are out of the market. they either have been completely exhausted or given some of the data we've heard overnight we've got some maybe a little bit of a hint at more accommodative
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policy out of germany, that could be something to prop up. some of the eu issues that we've seen this week i think that really pushed some sellers to the sideline and maybe even caused a little bit of recovery and there's no sellers in this market >> thank you let's send it over to dom chu. >> so what we've got right now is a look at some of the volume picture from the new york stock exchange if you take a look at the overall picture for advancers and decliners as it stands at the new york stock exchange right now a very healthy move here almost 4 to 1 ratio. advancers 2,355 and just 86 unchanged right now in this overall trade. as for the volume pictures, if you take a look at that picture, it is a movement here a little bit more on that side as well. take a look at this because advancing volume right now about 2.5 billion shares declining volume just around 370 million. so as we see the picture play
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out the advancers certainly in control from the stock side of things let's send things out to chicago and rick santelli for a look at the bond pits. >> thanks. one week of tens, just check it out. what a wild week it seems to be holding it's up one on the day but down 21 bases on the week. edefy you to find a lower close there isn't one. today's the birthday of 30 year bond futures finally one week of booms and this is the two year the shots went from minus 86 to minus 91 >> we're certainly hugging the highs. not up for the weekend for the nasdaq but chips and hardware are the really stellars today. video with a strong earnings report still a little bit of a lagger nonetheless. chips will end the week out of correction hardware is strong because of
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apple. apple is only one of the megacaps that is up for the week meantime you have the really popular ipos, the most part down for the week off about nearly 40% adaptive bio sinces and a lot of the health care sciences have bucked over that trend >> what we've got knew is a move here, higher the market. the theme that's been playing out so far here at the nyse and certainly elsewhere in the market is this idea that we're seeing reversal in some of the hardest hit sectors in parts of the market overall apple and microsoft helping to drive the dow. we should also throw goldman sachs from the financial side of things short term rates and long-term rates starts to get wider there. those financials moving higher also 3m from an industrial side of things. also a china story there as you
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see that playing out no those are some of the stocks driving gains today. also want to point out energy. not anticipating quite as much in the rally watch chevron, watch -- exxon. have a great weekend the dow up 333 points as it stands >> if you're just joining us welcome to the "closing bell." >> mike is off today as stocks settle here taking a look at where we end the day major averages all finished higher the dow just off of the highs it hit just a few moments ago finishing up about 308 points or 1.2% the s&p 500 also finishing up almost 1.5% today. the nasdaq up 1.7%
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small caps and transports, the outperformers today each finishing the session up more than 2%. keep in mind though it was a very volatile week we still finished this week lower for all the major averages though well off the lows we saw wednesday. >> s&p 500 ended the week down just more than 1%. the dow down about 1.5%. the worst performing sectors today, mar gone, were the best for the week today was a pretty classic rebound of what had suffered most of all during the week in terms of yields the ten year closing at 154 the low was 138. the low of the week was 193. we have got an exclusive interview with greg lemmkau coming up. we'll get his take on the market and his outlook for the rest of the year well, joining us to talk about the market day, michael, a founder and ceo of destination wealth management.
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eric friedmann, chief investment officer and keith bliss, senior vice president is still with us. the fact that we did see this push higher. i know we settled off those highs in the final minutes of trade but just because we closed near the high, what does that tell you >> number one bonds were healthy for an august friday when you think about it a lot of people are already in the hamptons on thursday night so we had a lot of participants. certainly what happened on wednesday kept people in the market the other thing is that people for the last year or so have been afraid to go home with long positions on a friday never knowing what the news flow is going to be over the weekend they bought with both hands today and as dom was saying a little bit of a seller strike that happened today. so i'm really -- i'm still bullish on this market have been, will be throughout the rest of the year i think we'll see some of those political things get out of the way so i'm pleased with the
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market performance and the fact that there was good participation today for a friday in august. >> how many of your clients have been concerned with the headlines in the volatility and what's been your advice to them? >> we definitely have gotten a sense from clients there's some concern on trade, on politics and corporate profits as a general statement, but i'd say this has been very measured downward move. we are also constructive on markets. we'd probably be more of buyers on more of a scaled basis. f we certainly need to have more clarity from the fed we're going to enter a dead period for earnings, about 95% of the s&p has already reported so there will be a bit of an air pocket of information flowing so i'd say the dlieclients are payg attention to markets but not as concerned and we think that's appropriate. we think this is still a -- a market with some on tupportunits left on it >> michael, your take on this market right now >> you saw the 800 point drop is
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really just a very emotional overreaction i think it really was mostly undone over the last couple of days simply because there's going to be in my view a deal that's going to happen you look at all the sectors, we're pretty much up today you had huge bouncebacks in fact, interestingly enough, here's the stock apple that people are concerned is going to be so impacted by china and how did apple end up doing this week so i think there's a lot of overreaction at this point i think there's a lot of people waiting for this sort of downturn to buy. that's why i think you saw upward selling pressure today. >> what if a deal doesn't happen what happens to the market then? >> i think you see the yield curve start to get impacted a little bit again and the market will sell off. it will react to that news that is probably the biggest risk in the market right now we've all gotten comfortable that earnings will not be great for the remainder of the year. we'll always have political back biting going on in this country
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and perhaps around the globe so it really does come down to trade and tariffs for me in watching this market >> hedge fund manager cio of acorn advisory, a tiger cub appeared on score box. he predicted back in october the rally was out of steam here's what he had to say this morning. >> i think it's going to be a frustrating period for investors and we should expect pretty muted returns from financial assets bonds are rich we can debate that a little bit. but coupons are orb vobviously w and stocks, we don't really have any substantive profit growth at this point the market tends to struggle when it gets above 17 times earnings which is kind of where we are now >> michael, do you think at least one of those is going to do well? >> i think equities are going to be fine. you know, our investors are going to be frustrated as he mentioned? they're not going to be 20% returns but i think if you own
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reasonable names, dividend oriented names and you're not getting greedy i think there's still opportunity in the market. if the market bounces back to where it was we still have a reasonable gain between now and the end of the year. i think bonds are going to be tough. it's basically a yield game and commodities are going to be very troubled given what's happening in em. but i wouldn't be quite as negative as just mentioned i still think there's opportunity and we're constructive >> for some of those long-term real estate investors does something like a 60/40 split still make sense >> we think it really needs to be 65/35 or 70/30. so i think back to that comment. this is a market where you can find opportunities and credit. structured credit is a place where we still think you're taking on defensive characteristics but also taking up some yield.
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mid caps remain under loved. so you know, we would actually redefine with clients looking at both stocks and bonds and real assets an important consideration is going to be what helps to offset equity or credit risk and so things like real assets, they're generally underowned as well are things that people should be paying attention to. >> talk us through that mid cap call what kind of size companies are you referring to and any -- any stock or obstacles in particular >> yeah, so typically between $3 billion and -- let's call 10 or $15 billion, that tends to be a spot that's under research it also has been a place that has hedge funds have either been selling or have closed down. that's been a place that has been a -- you know, a favored hangout for hedge funds so you have a lot of names that have been left, you know, we think underlov underloved the sectors we like are technology, health care and also
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in terms of industrials we think there's some opportunity as well they tend to be named shunned by small cap investors. so again, mid caps is a place that we think is continually an overlooked spot and there's lots of opportunities there >> i'll put the same question to you. what do you think is underloved in this market right now >> well, i agree, health care has just been getting killed health care got its first leg down when there was all this talk about price controls for sa pharmaceuticals but i think when you look at the dividend rates and some of these pharmaceutical companies, even though will are some pipeline concerns are just incredibly high. look at telecommunications you look at the kind of names that are in cellular services. they're paying 4, 5, 6% dividend rates. that's about as unloved as you're going to get and these are companies that are going to continue to pay their dividend
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we have healthy earnings so i still think there's opportunity. and again, i would be hesitant on a couple areas. i'd be hesitant on energy. i am pretty barrish on oil prices as well i'd be certainly aware of volatility because i think you're going to continue to see huge whips in the market you better buy for more than short term now days. >> there's a headline out right now from bloomberg saying potential ultra long bonds that could include 50 to 100 year of the treasury is doing market outreach to look into the possibility again. what would that do to the yield curve? >> i think they'd have to pay up you know, it will really make investors and economists and modelers take a good hard look when you look at the really short end of the curve, that's been inverted for quite some time that's a bit of a mismatch
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i think the market is reading them where the fed is relative to where they think the economy is we got longer out on the term structure. i think we'll see a steepening of the back of the curve and i do think the u.s. treasury will have to pay up to get those bonds sold president trump holding a call with the ceos of the biggest u.s. banks kayla has the latest on that >> it was an impromptu 20 minute conversation on the health of the global economy it came after a previously scheduled regulatory meeting that had three top bank ceos already in washington meeting with the treasury secretary. the president picked their brains on the u.s. consumer which they said was strong the global economy which they say was increasingly negative, the feds ralt cut they said that won't move the needle and trades where executive agreed the china problem needed a solution but the current landscape is hurting capital investment the president was receptive to that last argument but says he still likes tariffs. >> i have a question for you
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there's reports -- so we've known the u.s. has been considering the possibility of selling more arms, about $8 billion worth of f 16 fighter jets any kind of arms deal to taiwan is seen as a sore spot for china. how could that affect or shape any potential trade pauks between the two countries right now? >> china is trying to throw everything in the trade basket for the last couple of years they've tried to say hey, if we're negotiating on trade we need to negotiate on things like these arm sales and have them off the table so they've tried to make this an all or nothing pact and the u.s. wants it to be specifically about trade so morgan, for years, china has been condemning these types of actions by the u.s. but they're trying to keep them on parallel tracks, one being trade. one being national security. we'll see if they continue to do that successfully. >> michael, let's talk ability what the bank ceos -- well, what
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we heard from brian moynihan which was quite a relaxed tone and most of the analysis of this meeting in the phone call with the president was this is fact finding, the president wants to check in how things are going and the response is that things are going kind of fine despite the volatility are you encouraged by that >> i'll tell you what i'm encouraged about, not so much that things are going fine i think that's obvious things are going fine what i'm more encouraged about is that the president is noticing market volatility and i think that the president is very, very sensitive to equity prices he at a speech the other day talked about how he felt people should vote for him because he felt he was good for their 401(k) balances so i think any time you have an administration that is aware of turmoil in the financial markets, i think it really suggests that there's going to be action taken to try to keep those markets more stable or stabilized. and so i think that that was a
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positive sign that people got from that phone call less about what was said more so that the administration is paying attention and i think wants to try as best they cannot to see some cataclysmic fall in asset priegss. >> thank you all very much for joining us >> we have a market flash on broadcasting company rahel has the details. >> so yeah, tegna surging at one point. it has pulled back a bit this is after a dow jones headline that apollo global management remains in touch about a deal the news broke just before the close and tegna closed up 11%. right now up to 3% after hours so tegna owns close to 60 local stations in atlanta, denver, phoenix. apollo first reached out at the
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beginning of this year they've maintained in contact despite being rebuffed by tegna. apollo important to mention also bought 15 cox stations earlier this year in february, tegna has a market value of about $3 billion we do have calls into both companies. we haven't heard back just yet but tegna surging on this news they've been approached and remain in contact with apollo global management about a potential deal >> still to come here on the "closing bell," we'll get the outlook for the capital markets when we're joined with gregg lemkau >> and sarah bloom raskin will tell us what is expected at the jackson hole symposium stay with us do you have concerns about mild memory loss related to aging?
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featuring the emmy award-winning voice remote. streaming services without changing passwords and input. live sports - with real-time stats and scores. access to the most 4k content. and your movies and shows to go. the best tv experience is the best tv value. xfinity x1. simple. easy. awesome. xfinity. the future of awesome. welcome back to the "closing bell." the nasdaq outperforming the other major averages in what has been a wild break for stocks >> pretty wild week of stocks. we had small caps leading today
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but the big caps are really what came back particularly in tech chips strong point after nvidia. hardware was the best performing sector and that was due to apple. the only major megacap to end the week higher. its best week since the first week in july overall communications and the hardware sector were pretty good software also pretty weak for the week although they are the best performers. they are out of correction back to you. >> thank you very much how will the market volatility we've seen impact deal making and ipos for the rest of the year joining us is gregg lemkau great to see you >> thanks for having me. >> let's start with the macroenvironment been a crazy week. on the macrofront do you guys expect a recession in the next
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12 months. >> i don't think we do but as you said it has been a crazy week unbelievably vital week in the equity markets day by day and driven by real concerns. the inversion of the yield curve is a real concern but as we step back and look at the s&p and the other major indices at all time highs and interest rates near record lows and an economy that's still growing so not as fast as it's been growing last year but 3.3% globally it's still a darn good operating environment and we continue to believe that we're going to be able to push through this. the overarching concern is the cycle and with every day it has a later and later cycle and that is hanging over all of us. >> how are markets and the week before that? has there been good flow of trades, nothing that's been held up >> markets have been functioning great. the volatility is quite dramatic you've seen the swings we've seen in the equity markets and it's challenging but for the
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most part markets are functioning quite well deals aren't getting hung up and companies are still doing business >> one of the things we've heard and seen this year is that the ipopipeline has been very robust and ideal conditions for companies to go public do you expect that to continue >> it's been a relatively good year and in particular against the backdrop of volatility you know, we've seen some of these long awaited companies like uber and pinterest go public but what's most impressive has been the bretd of companies go public. so it's a pretty broad range of companies that's been supporting the market and while we've seen a couple of companies struggle for the most part this class of ipo ises up on average 24% >> a couple of companies is a little bit spin on the numbers there's been 106 u.s. ipos only 58 are trading higher from the ipo levels does that make it harder for attracting more ipos later this
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year >> the backlog in the pipeline is quite strong. these are case by case every company is being looked at and evaluated on an individual basis. a lot of these companies that are coming public offer that growth and i think the challenge is some of these companies there are business models that the public hasn't seen so that makes it interesting to try to value them out of the gate and trade them overtime >> given maybe some of the quality around some of the numbers there, the fact that it does have a complex ownership structure, definitely raises the question when you see a company like that getting ready to go public, is it a market top >> i can't really talk about we work because we're involved in the ipo and registration as you know, but another example of one of these companies that's an iconic company and it will be interesting to see how the markets value and trade it overtime >> do you approach the love smacking ipos different than a
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traditional company that's got a clear earnings and do you target potential buyers of those stocks >> not necessarily, although the valuation for companies with profitability and ebitda are tried and true and it's the business models that aren't earning money now that are growing market share that you need to build out the business model. you can go it on a cohort by cohort basis and do it on a market by market basis but companies need to be valued on how they earn money. >> a lot of people criticized the uber ipo since it listed on the lower day on the markets would you pull that? were there any lessons from uber that you've taken and you want to apply -- >> it's hard to pick a day on which you price it on uber in particular it was a friday a lesson might be not to try to price a transaction on the friday so if there's a particular bad day you can push
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it to at day >> let's talk about the m and a environment. we do have interest rates pushing lower right now. do you expect we're going to continue to see more deal making or consolidation >> i do. it's a pretty robust m and a environment. it's down 9% from last year which was a great year but it's active i think the most encouraging piece about the m and a market is it's operating on a bunch of different sectors. health care continues to be strong technology, in particular software continue to be strong but the financials which we haven't seen any activity, you've seen a bank deal, three technology bills, a big information services deal so that's encouraging and i think the battle over anadarko shows there's more to come in energy >> the last media deal of this cycle? >> i look at cbs vie come as almost a restructuring they're still owned and
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controlled by the same shareholder and a lot of benefit of putting them together was benefits of scale. cbs and viacom have become smaller than these new media companies but combined at $50 billion they've now got at least more scale to be able to compete with people like disney and comcast. you could see further consolidation. >> when we consider the weakness of the europe economy, brexit coming up and the associated currency weakness why haven't there been more cross border deals? >> you rarely see currency movements drive m and a and for the most part companies that are defdominated in sterling, so whn they go down do does the revenue and earnings it's not always the case but it doesn't drive activity as much as you think people tend to take a much longer term of view and given the deal you can't price a deal
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and close it the same day you're still throughout the pendency. >> have you seen cold water thrown on deal making between china and the u.s. >> the deals between the u.s. and china are down dramatically. i think deals in the technology sector it's going to be hard for them to get done between the u.s. and china and other than regular anti trust overlays on transactions there's been a political overlay on jobs, on headquarters on things like that back to 15, 20 years ago it's definitely around the minds of board rooms >> on the topic of anti trust politicians are mentioning it much more. are you seeing a rise in the amount that clients are asking you for advice on that topic to help with spinoffs so restructuring so that they don't then face anti trust pressures >> yeah, the m and a game it's
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always been a key consideration. i think what you're starting to see with clients is maybe not anti trust per se, but the regulatory overlay is becoming more real. the technology companies had not been seen in the cross hairs of the regulators and they certain are now. >> one final question. your business in hong kong is significant. big office there how have things been functioning over the last couple weeks >> we're paying a lot of attention of what's going on business is functioning quite well so our people have been able to get to where they need to to serve our clients and be able to do so safely but there's a lot of stress and we're doing everything to support our people and clients to try to mitigate that >> thank you for in. >>ing us here. still ahead, treasuries were mott the only beneficiary to this week's flight to safety >> plus restaurant ceo will tell us why president trump is now saying tariffs could hurt american csursonme we're back in a couple minutes
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welcome back dominic chu is here with a breakdown of the action. >> relatively not volutive when it comes to the safe haven assets let's just show you from that perspective over the course of the past week this idea that gold, the gld that was up about a percent. you can see here down today but
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still over the last week some volatility around that downturn just before on tuesday heading into wednesday, but as itself all the way here, up about 1% so not a lot of volatility in gold. a haven asset. also looking at what's happening with treasuries as well and what's happening with the value of the u.s. dollar, you take a look at some of those charts as well they can show some signs of movement as well so treasuries, gold and dollars, all of those things moving to the upside the way they are shows a little bit of the sentiment. the question is if this bounced today really show some real legs in terms of the overall flight back into risk assets or whether they continue to move higher long-term bonds, gold and the dollar also showing signs of relative strength. back over to you >> thank you very much have a great weekend let's get to rick santelli for more on the report the treasury department is once
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again considering an ultra long bond i'm looking forward to your take on this. rick >> it's an easy one to visualize. imagine, wolf, that you are buying a house and right now let's say you could get a 30 year mortgage for 3.5% if you thought rates were not going to dip much lower and over the bigger picture go higher you'd lock it in if you think rates are going over you'd float it. the government t wants you to look at the ultra long bonds in the same fashion if they believe that the curve is going to basically be in this area with interest rates or move lower it would be a bad idea keep doing the t bills and then if rates stay down the servicing of the debt becomes a nonissue but if you think that we're near a level that over the next three, four, five, seven years is going to be viewed as a low yield they should be dumping these bonds 50 or 100-year as mch as they can. other countries have had dramatic success and remember, that in the final analysis,
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right now and it's counter intuitive there is a demand for high quality credit and the credits of the u.s. government are among the best and insurance companies, mutual funds, large institutions seem to have a v voracious appetite i think mnuchin should consider it very seriously because i can't imagine they would think they would be at these low levels for a very long time. >> i'm sewure argentina are glad that got a rate that's going to be markedly lower than the average refinancing rate for the next couple of years and even though austria could have delayed their 100-year bond and got a slightly lower rate. i'm sure the rate they got proved to be pretty close to the all-time low >> absolutely. and the shocking part of this is these ultra bonds traded prices
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and yields that aren't very dissimilar to long endyma churties you would think there would be a big add on and there isn't it's a great deal for the institutions and i think it could be an especially good decision for the u.s. treasury >> rick, quickly, how -- how quickly could you see a 5th year or 100th bond implemented in the u.s. >> very quickly. i think you could see it within you know, three to six months. it's about the common period and what types of responses they get back but i think it would be a much shorter timeline than many would imagine. it would not be years. it would be more like quarters >> thank you time now for cnbc news update >> hello, everyone here's what's happening at this hour the new u.s. ambassador to mexico arriving in mexico city that post has been empty for more than a year after roberta j
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jacobson resigned. he says he arrives in mexico with his hand extended the indian government in the disputed region of kashmir they chanted and carried posters of pakistan controlled kashmir russian president putin award the nation's highest medal to the pilots that moved their plane in a corn field after a flock of birds hit both engines and knocked them out back here at home while disney world is offering discount tickets to visitors who want to sleep in, starting today it will offer two-day tickets for as low as $88 per day as long as purchasers don't show up until after 12:00 p.m. that's an almost 25% discount from the all day tickets that cost $116 each >> you're up to date that's the news update this hour back downtown to you guys. >> sounds like a good structure to a vacation to me.
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>> i think so. >> and a discount for it as well >> by the time you mobilize the kids and everybody else it's noon anyway. >> there we go >> thanks. up next, former cke restaurant ceo is going to tell us whether the trade war with hecomyt putting t eno a risk stay tuned dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how do we bake security into everything we do? we need tech that helps people understand each other. that understands my business. we've got some work to do. and we need your help. we need your support. let's expect more from technology. let's put smart to work. ♪ ♪
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a roller coaster week for the market as trade tensions between the u.s. and china president trump commenting on how china tariffs will impact the consumer >> the tariffs we've taken in close to $60 billion in tariff money and the consumer has not paid for them. now at some point they may have to pay something but they understand that. >> i never said china was going to be easy but it's not tough and they want to make a deal we just spoke to them yesterday. they want to make a deal they want to make a deal they have to make a deal and you know what? it will be wonderful to make a deal i don't think we're ready to make a deal. we're taking in billions of dollars in tariffs and again, china's devaluing their
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currency they're pouring out money. the prices haven't gone up so that means we're taking in billions of dollars. we're not paying for it. >> his comments follow reports from the "new york times," wall street journal and washington post the latest polls show president trump falling behind biden, sanders, warren and harris joining us on the phone, the author the capitalist comeback, the trump boom andy, thanks for joining us today. one of the questions we've been having on our air all week especially after we sue that brief inversion of the 2 and 10 years in the-year-old curve earlier this week is whether the risk of recession is rising. your take on that. >> caller: i don't think the risk of recession is rising. i don't think it's viable. the gdp was 2.1% in q 1.
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the atlanta fed model has it at 2.2% coming in at q 2. we'd like it to be better than that but those aren't recessionary numbers consumer spending, which accounts for two thirds of gdp is up. government spending which accounts for 18% is up the export -- net exports have improved over lars year, so that's a plus. business investment was down in second quarter and that could be influenced by what's going on with china could be influenced by just a matter of timing so we'll see how q 3 comes out but i don't -- i really don't see that we're heading towards a recession any time soon. >> andy, you pinned an op ed on august 5th including in the title it said the president knows surrender isn't a winning strategy talking about the china trade war. so why has he gone ahead and surrendered? why has he delayed this latest rountd of tariffs? >> i think the president met
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with business leaders who said we have not seen an impact of pricing to consumers to date, but to go to these 25% tariffs that could have an impact does it make sure to do that before christmas? why not wait let's get through the shopping season consumer confidence is up. consumer spending is up. let's just wait and see. and i think the president thought that was a good argument so he decided to wait. i don't think he's surrendering. he's still putting a 25% tariff on a third of the items that he was talking about increasing tariffs on >> given the content of your op ed would you have lather he held firm on those and just stubborned it out? >> look, this is not a war we're going to win in one battle it's not a war we're going to win in a hurry we need to keep the pressure on the chinese knowing that these tariffs are coming, that the president will live up to what he says on tariffs despite the political consequences is important. i hope the chinese realize that
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and if they will they'll come to an agreement probably next year. no, i really don't have a problem with this. there seem to be a rational decision based on -- on economic growth models and what the business community was advising him. >> the phrase you just used, andy, despite the political consequences i think is a key one because there's a lot of focus on the u.s./china trade talks and a lot of folks have come on our air and said they believe that a deal, some sort of deal needs to get done by 2020 before the election do you think the administration is thinking about it that way in. >> caller: no, i don't i don't think that's the way this president thinks about -- about what's in the best interest of the country. i don't think he -- he aligns what's in the best interest of the country with what's in his immediate best political interest i think he looks to what will really be the long-term benefits and i do have to say, you know, the this -- the trade -- the trade war with china, this tough stance with china, there is disagreement about what we
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should be doing among the political parties, so i would say if there's one thing where the parties seem to be coming together it's on the fact that we need to be tougher on china now, it's a presidential election year so i think it's hard for the democrats to be too supportive of the president but i don't see big opponents on the president on this either i think people realize we need to solve this problem with china. they are stealing with us. they are dealing unfairly with the world community and the united states when it comes to trade. that just happens to be one bipartisan thing that's sort of a ray of light out there >> thanks for joining us >> my pleasure thank you very much for having me >> we will see you again soon. up next here on "closing bell," a piece of film history going on the auction block robert frank goes behind the wheel of that story. >> the big guns of car collecting here at pebble beach we'll show you most famous movie car in the world 007's db 5 coming up after the break. around the corner?
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welcome back nearly $400 million worth of classic cars hit the auction block this week including a piece of hollywood history and there's only one reporter with enough experience to cover this story. his name frank, robert frank >> oh, boy >> actually you are much more experienced and qualified to do this story than i am
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this is james bond's 1965 db 5 and it sold last night for $6.5 million that is the most expensive movie car ever sold. so what are you getting for your money? well, aside from this gorgeous car painted in the silver shadow gray, you get the working oil slick. the smoke screen, the grenades, the in dash radar scope. you get the tire shredders, those working, browning 30 caliber machine gun, sort of working that you saw there in the tease and of course the ejector seat and it's got the removable roof so when the pass swrer gets ejected they can go through the roof there was a lot of spirited bidding. six people bid on this overall good sales the big guns come out tonight and tomorrow where as you mention nearly $400 million worth of cars will come up for auction. we will see whether the strength from this car carries through till tonight and sunday, but so far a good week starting out here in monterey back over to you
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>> i wished i'd been allowed to come with you on this story and then we could have actually tested out that ejector seat and tossed a coin for who got to press the button >> i have a feeling it would have been me in the passenger side, but yes, me too. >> well, either way it would have been good fun to be here. the car is awesome so i want to ask a serious question because i saw you do some ferrari coverage earlier. aston martin's stock is listed a year or so ago and the story is unbelievably different for those two companies and where is you buy a sports car all of the hopes at aston martin now rest on an suv. >> that's right. so aston's launching the suv right here in pebble beach this weekend and the stock is down i think more than half, maybe even 70% from the ipo and a lot of that was attributed in their quarterly earnings to trouble in the english and the british market due to brexit so we have to see whether that was a one-time event or whether
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that's going to spread so far the sales in asia and the u.s. holding up, but they cut their production to 6,000 units in the u.s. this year. they're hoping that suv adds 4,000 units. that is a big question given that there are so many high end suvs pouring on to the market right now. >> well, thank you for your reporting today on this. looking forward to all the results after the weekend is over frank, robert frank. >> yes, you see, you embraced it >> i did >> robert, thank you >> the fed is in focus former fed governor joins us next she'll give us her take on the feds' next move and what's at stake next week at jackson hole symposium. we're pretty different. we're all unique in our own ways. somos muy diferentes. muy diferentes. (vo) verizon knows everyone in your family is different. there are so many of us doing so many different things. (vo) that's why verizon lets everyone mix and match different unlimited plans. sebastian's the gamer. sebastian.
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welcome back to the "closing bell". economic policy is in focus next week as dozens of central bankers, academics and economists gather in jackson hole, wyoming. this year's theme is challenges for monetary policy. joining us to preview the event is sarah bloom raskin, former fed governor sarah, thanks for joining us today. what do you expect to hear from fed officials at this event? do you think the stakes have just gotten higher given the inversion we have seen in the yield curve, escalations in trade tensions with china? >> well, morgan, you are exactly right. jackson hole is a big opportunity for the federal reserve. it is every year, it is almost the prom for central bankers to come together and really look panoramically at what is happening in the long term,
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where is monetary policy going of course, we know that the posture right now for monetary policy is that there are really a lot of very good questions that are going to be potentially addressed at jackson hole. questions regarding what does it mean to conduct monetary policy when you are so close already to the zero lower bound, and yet you may need more expansionary policy what are the tools that the fed has to actually expand the economy if it needs to in case we are, in fact, going into a protracted downturn? so the opportunities for telegraphing some of the big challenges for monetary policy will be present at jackson hole and, of course, the short-term signaling as to what will happen at the september fomc meeting. so it is a big opportunity, and the topic, of course, as you mention is one that is broad enough to encompass really a lot
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of timely and important questions. >> sarah, today though there is a headline that germany's potentially considering a fiscal expansion. what would chair powell welcome most of all in terms of stimulus in europe, more monetary stimulus or fiscal stimulus? >> so it is a great question he probably isn't looking with great specificity as to where the stimulus is coming from, but what the stimulus is, what it is going to be, its magnitude the sense is how much of a -- of real momentum will it provide. so if fiscal stimulus is a short-term sugar high, you know, the fed may very well have to look through it as something that is merely transient if it is a fiscal stimulus that is more protracted, that is potentially structural, something that's actually going to last a while, then that's something that the fed likely will take heed of and will
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incorporate into its own forecast. >> sarah, the treasury is also reportedly conducting broad outreach to, quote, unquote, refresh the understanding of market appetite for potential ultra long bonds, according to a report this afternoon, potentially a 50 or even 100-year bond offering as someone that used to work at the treasury, do you think the case can be made here, especially with what we have seen with the yield curve? >> it is not a new issue for treasury treasury has something called the treasury borrowing council which consists of participants who advise treasury and the fed, by the way, on issues pertaining to whether the number of treasuries of different durations are appropriate for where we are in terms of the conduct of fiscal policy and monetary policy. so these aren't new questions. of course, you are right that the timing is very interesting
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right now, that this would actually be retriggered as an important question given the inversion of the yield curve but it is not new. it is something that the treasury likely is looking at on a really quite a daily basis to make sure in essence that it has the right number of issued treasury bills and bonds for each level of duration >> sarah, thanks very much for joining us great to see you as always >> great seeing you. we will have full coverage of jackson hole next week, thursday and friday in particular you don't want to miss that across cnbc. up next, your wall street look ahead the key things every investor needs to watch when we come back i mean, if you haven't thought about switching to geico,
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welcome back lyft's lockup expires on monday and deidre bosa has a look at what to expect hey, d. >> reporter: hi, morgan. remember, it is ahead of schedule which threw investors for a loop and caused the sharp to fall sharply. lyft is now trading $20 below the ipo price. the lockup expiration will be the next test. it means insiders will be able to sell their shares,
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potentially leading to a massive amount of supply coming on to the market the question is, will they rush for the exits or will they stay in, putting their confidence in lyft's ability to get to profitability? morgan and wolff, back to you? >> d, thanks very much for that. we are pretty much out of time strong rally today, still down 1% for the s&p for the week as a whole. thats do it for "closing bell." >> "fast money" begins right now. ♪ live from the nasdaq market site overlooking new york's time square, this is fast money i'm scott wapner in for melissa lee. our traders on the desk are tim seymour, carter worth, dan nathan and guy adami the stocks surging to capoff a volatile week on wall street what is next for your money? we will lay it out for you also ahead, hitting the mark will target follow in walmart's food steps when it reports next week a billionaire battle, two titans with two different takes on where we are heading next. abou


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