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tv   Closing Bell  CNBC  August 26, 2019 3:00pm-5:00pm EDT

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because when you're right you fight. >> reporter: and, guys, the state is asking for $17 billion here wall street will be watching closely and many stocks not just johnson & johnson's could swing on the outcome back over to you. >> thank you very much thanks for watching, everybody. "closing bell" starts right now. welcome to "closing bell." i'm scott watpner in for wilfre frost. we're watching that stock of johnson & johnson for reaction stocks are relying on renewed hopes of a trade deal with china. sara >> hello, everyone i'm sara eisen president trump says a deal with china is coming as he departs the meetings as those tensions ease, oil is inching lower
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strategists on wall street now see elevated recession risks and a possible significant pullback. joining us is ian winer. welcome back. >> thank you for having me. >> today it is the trump comments that are lifting the market friday they were sinking the market what do you do in this environment? >> you have to stick to the stocks that you really like because there's absolutely no direction in the marketplace the president clearly isn't helping things i think we are just going to continue to stay range bound at the same time, where global rates are and the fed basically saying they're going to be there and you are in a little range here i think that the uncertainty itself will outweigh whenat's happening and see a correction before we run away to new highs. >> the risks tilted negatively >> near term negatively for three months i think.
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>> ian's here for the hour let's focus in on the big stories today. live in france with the latest on china trade bob here at the exchange kate tracking the nasdaq ayman, first to you on president trump. >> what a difference a year makes. the president, wheels back headed back to the united states air force one taking over from france a short time ago. here's the dwetweet from the president. thank you, france. what a contrast of a year ago when the president departed tweeting insults at justin trudeau of canada calling him din honest and weak. the leaders sought to present an image of unity to the world. still, though, we spent much of the time today dealing with this question that began the day. the president said that the united states got some calls from chinese leaders overnight and that negotiations were back on reporters spent much of the day trying to get specifics on that.
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the white house not offering any details throughout the day as 0 what those calls were all about. the president one point seemed to suggest he was referring to a headline of a chinese leader overnight and then a call. here's how the president explained it >> the vice chairman made the statement that he wants to make a deal, wants it all to happen that says it there you folks reporting before we can't find any phone call he released a statement. i didn't release it. he released a statement. >> but there were phone calls, sir, mr. president >> numerous calls. >> reporter: the president pointing both to the statement and the idea of numerous calls we still don't have any back story from the white house what exactly the president was referring to there aides refusing to give us more detail on that the president saying what matters is that the chinese want
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to get to a deal he wants to get to a deal and an upbeat tone from the president of the united states on this day than we saw on friday when the president reacted so angrily to the tariffs of the chinese side. a tale of two days in to countries. >> that's exactly, eamon, the issue that investors are faced with trying to figure out which president is going to show up, the one on friday suggesting that president xi is one of the biggest enemies of the united states or today the president suggesting that he had great respect for the leadership of china. >> reporter: you know, the president was asked about that, scott. this idea that you call him an enemy one day, a great leader the other day. how can world markets digest this aren't you injecting volatility in the economy the president said this is my style. people are coming around to the idea this is who donald trump
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is he dials up the rhetoric when he wants to or dial it back the president said today it's worked for him throughout his entire career. he clearly believes it works for him now. we'll see whether that's true or not but the statement from the president today was this is who i am and i don't think we can expect that to change any time soon, scott. >> yeah. no doubt about that. eamon, we appreciate it. market hanging on every word from the president and out of the g7 bob pisani with a look at the biggest movers. >> a rally but a tentative one. trade names like nike are up but not dramatically about 1% industrial names to get movement, not doing anything caterpillar is flat. 3m is doing nothing. materials like dow near 52-week lows chevron, exxon, slightly up. oil is now down as there's
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prospects for the u.s. and iran returning to the negotiating table. volume etfs, half friday like the spy russell 2000 elevated volume on friday on a down day but on an up day the volume isn't there. i think traders exhausted trying to figure out the tweets and not sure how to answer the question is the timing right for a trade deal or not? no one seems to know that. perhaps not even the president of china or the president of the united states knows the answer and i think got people concerned about buying stocks in this kind of environment back to you. >> thank you now over to kate rogers at the nasdaq recovering prfriday's losses. >> the nasdaq up over 1% nasdaq 100 up. both on track to break the losing streaks tech names moving here today apple having a biggest positive
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point impact on the nasdaq 100 that stock up 1.5% on the renewed hopes on the resolution. other big tech names adding to gains today include microsoft, google, amazon and facebook. also bob just mentioned the russell 2000 up just under 1%. on track to break the two-day losing streak and in correction and on the down day is all those bio tech names, alexion, biogen. back to you. >> thank you. it's a wild 48 hours for the markets. look at the twists and turns between president trump's tweets and breaking headlines starting with friday china announced tariffs. we did see a 235-point drop for the dow. and then we had positive
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comments from fed chair powell's speech which brought us up 190 points president trump then tweeted that american companies are here by ordered to start looking for alternative to china that one sent the markets plunging, 630 points and the tweet that took us into the weekend president trump doubling down on october tariffs and we were down another 329 points then came the heed lines out of g7 trump saying second thoughts on the trade war with china helping the futures. afterward the white house press secretary clarifying the remarks saying he regrets not raising tariffs higher and then finally, futures popped when the president said the talks were back on the table and we have stayed green throughout the day. let's bring in peter chakini and art cashin a question, art, to try to understand is who is trading on all of these headlines
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because it's very hard to determine what's true, what's the whims of the president, what the president's going to tweet next and who's doing the trades? >> some of it's the new algorithmic traders. you take out support levels and compound but to bob's point that volume is very light today, part of that is is the august bank holiday in england and his toredly that leads to light volumes in europe and here in the united states. a bit of that's light but i think that we may have a president who learned his lesson i don't know what phone calls he got or didn't get but i saw somebody who was trying to pull friday back out of the fire. i think he saw down 700 points i think he said maybe that was me. i think you're going to see -- i
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don't know how long the lesson lasts but i think he's going to be more modified from now on. >> do you think the risk is still to the downside? this is not much of a relief bounce if you want to call it this. >> i think bob was spot-on doesn't have a lot of conviction or volume. selloff on friday had a quite a bit of heft behind it. trying to read the tea leaves by reading president trump's headlines is i think impossible task what i would focus on is the fact that the trade negotiation is going to be prolonged, complex, it's full a complex set of issues and unlikely to resolve in the near term relative to trade and the headlines, fine. we see markets bounce. and relative to the fundamentals the way i see it, sara, been talking about this for several months, i'm now seeing market pmi roll over into contraction following the world's pmis is contraction and agree with ian here saying the tale of two
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narratives since the beginning of the year and up first half and the lower half i think the risks are in the second half. >> it's not just noise but implementing policies like friday night of higher tariffs on retailers that affects their business, their outlooks and the overall gdp of the economy. >> i mean whether two or three phone calls or a headline or not. the fact out matter is we are in a full-blown trade war it is tit for tat and ugly and remains fairly ugly and hard to resolve. >> the president, ian, said today as much publicly, this is who i am and negotiate take it or leave it. it worked for me i won't change. >> i don't think investors do anything with it if he is not going to change, he won't change and all you have to do is look at the fundamentals to make a determination on what you do next. i think the one thing aren't
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talking about is the u.s. potentially going to negative rates. i'm concerned more act the fact that the global bond yields go lower than really anything the president's saying at this point. to me it just shows perhaps banks are going to struggle, savers will struggle and pension funds struggle you are making the prediction of zero, negative rates >> negative rates in the short year. >> consensus sort of that the u.s. is okay and not that exposed on the export sidesome we have a federal reserve easing policy and the u.s. consumer which continues to power through? >> but the federal reserve easing policy should bring rates lower. you will have the whole global economy slowing and you have a weird downdraft that's being caused because we look relatively better than the rest of the 17 trillion in negative yielding bonds around the world. >> what are you hearing about that, art? what would be the implications >> i'm terrified going negative
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rates in the united states it will virtually destroy the banking system as it is doing in europe as we speak that would be a major crisis i agree with ian it's pulling that way but i can only hope someone with common sense says, hold it. that's far enough. >> don't you feel that all these risks and negatives, the fed's still going to be there, whether they cut rates enough and go negative for whatever, the fed is going to be there. >> yeah. but you know what? >> no one's talking about this. >> the fed has 250 basis points to act before more policy. normal cutting cycles take accommodation. the fed doesn't have that ammunition and why i agree with ian and art rates will go negative and the inversion of the yield curve is important because why is the consumer vong because it has access to credit. when the curve goes negative,
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banks pull back to the consumer and businesses wage growth is nonexistent 1% the implications are inverted yield curve brings to bear are very, very important for the consumer. >> double digits on the year for the market still a pretty good year and 15% on the market despite this sort of doom and gloom outlook. >> part of the issue is i think people feel like the market's not up as much as it could or should be. by virtue of what's been an outperforming u.s. economy relative to the rest of the world and pulled back by the twists and turns as sara put it earlier of the trade policy and tweets. >> i would say, i don't mean to cut you off, ian, but a thing that's different about this cycle is that it's a global
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cycle. the global economy is much more important now not just as s&p earnings but to the health of the economy than it ever has been in the past so i think that's a reason why trade is so important here and why we have to look at the rest of the developed markets and look at their negative rates and say what are the implications for the u.s. that's what the fed is doing and for the first time the fed is talking about other economies other than the u.s. >> we appreciate the time. peter, thank you art, always a pleasure see you again soon i'm sure. after the break, in honor of g7, a longer term look at how the u.s. stock market compares to other markets around the world and what the charts say of fears of a global slowdown. later, speaking exclusively with energy secretary rick perry and former chairman of citigroup sandy weill about the latest initiative and heading to break, a close on the data tracker today durable goods orders climbing in july topping expectations driven
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by a big jump in civilian aircraft orders. "closing bell" will be bk.ac (soft music) - when i see obstacles, i create opportunities. - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering)
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mostly positive across the
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major averages all 11 sectors of the s&p higher led by communications haves and technology a nice little less than 1% bounce for the s&p and the dow more than 1% for the nasdaq. over to mike for today's mark dashboards. >> first last flag flying. this is a look at the relative performance of different countries' equity markets and before sun rise, are stocks or bonds better at figuring out when dawn is about to arrive dazed and confused, this tape in a choppy month of august and then bad news banks. first, though, here's a chart of the s&p 500 relative to non-u.s. developed markets, the efa etf mature economies that are not the united states. it is very range bound from the last year. the common wisdom is that the
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u.s. is the place to be relative to nine u.s. markets compared the other developed marks, most of the outperformance here leading into summer of 2018 this blip higher and now curled over and interesting to gauge whether given the currency movements to consolidate this outperformance that the u.s. had against developed economies. also, this was another big jump up and curled over another big jump up and curled over as we obviously look at every headline regarding the international relations as it bears on trade, guys. >> some look at the chart saying, you know, maybe that big upswing you had starting in the spring of '18 should have continued. it's sort of along the lines of the conversation with the guests on the desk and derailed by some of this trade policy which has
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not only spooked the market but caused business uncertainty and, you know, some other stuff along the way. >> and a strong dollar shouldn't ignore that piece of it, as well. it seems as if there's momentum in one direction for the markets and it got thwarted and again it is still an uptrend. it's obviously been less pronounced in the last year since the overall market by the way peaked back in september of last year. that interim peak before the fourth quarter decline and less than -- i guess just over 11 months. >> ian, you are cautious on the u.s. market but that suggests the u.s. is still the best place in the world. >> may be but i would also mention companies were instituting buybacks around that time thanks to the stimulus that happened when we did the big tax cuts so a lot of that is exhausted itself and i think that's why we've fallen in line. looking at overall growth, we are still the best place to be.
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>> mike, see you in a bit. thank you. after the break, one wall street firm says apple trade war fears may be overblown we'll get word on the street. we're awaiting a big decision in the first major opioid case to go to trial as oklahoma seeks more than $17 billion from johnson & johnson we'll break down that decision after j&j learns the fate. a check on how commodities are tradingtoday red for the most part across the board. silver with a lift of 1% silver and gold been on the race higher there you have a look at it. kevin, meet your father. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin
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we are back on "closing bell." time to get the word on the street gugen time upgrading lyft today. the firm citing several factors including rising fares uber ceo tweeting the front page of the sunday business section of "the new york times" saying keeping this will be fun. >> seaport global upgrading candy growth to buy. the firm says what we view as a devolving, reckless spat, the industry can provide safety for investors. and then there's jpmorgan with apple saying the street
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underappreciat underappreciates apple's ability to navigate head winds ian, the lyft, this is an interesting one, $60 target. a buy. they like the profitability story and bring it forward and they say that the competitive dynamics in the ride hailing industry remain favorable. >> but if you look at how they got that $60 target it is off 2023 ebita. >> and bring it forward but to '21. if you have this view of profitability, you better be willing to wait. >> and to think that you're going to suddenly be able to raise prices on people in a competitive industry and a slowing economy seems crazy. throw on top of the fact to raise fare -- prices for drivers, as well i don't say -- i have yet to hear a compelling bull case. >> it's a due opinionly?
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>> i don't think they have pricing power. >> the take rate they say is underappreciated. >> i want nothing to do with these. okay we know where you stand. coming up, ian winer lets us stand on the last chance trade and a favorite way to play the volatility ahead. we'll speak with a former u.s. trade representative about the latest developments, whether the u.s. and china are any closer to a deal
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30 minutes to go before the trading session ends president trump says a deal with china is coming. cooling recent heated rhetoric departing france as those tensions ease oil is edging lower on a possible resolution between the u.s. and iran and multiple strategists on wall street see elevated recession risks and possible significant pullback. >> rick perry joining us next hour. for a news update with sue hello, sue. >> hello here's what's happening at this hour israeli prime minister netanyahu saying today that iran was carrying out murderous attacks
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against his country and calling on the international community to act this as israel's security cabinet met. green blue toxic algae in three new york city parks posing a threat to young children and pets the epa says contact with the algae can cause stomach cramps and rashes and particularly dangerous for dogs blooms have been found in all 50 states spirit airlines announcing it will allow customers to book and change flights via what's app in september a chat bot will provide basic information about the request and an agent will take over. and here comes fall. starbucks is launching the first new pumpkin coffee beverages since introducing the latte 16 years ago. can't believe it's been that long the pumpkin cream cold brew launches tuesday with cold coffee and a vanilla base topped
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with pumpkin cream foam and of course a dusting of pumpkin spice. so you can have your pumpkin spice. out in arizona and 90 degrees, have a cold one and back here have a warm one. >> they have had so much success with the new cold brew. >> yes. >> nitro brew or whatever it is. >> delicious. >> sue, thanks. >> you got it. back to mike santoli for the second dashboard of the session. >> so this is called the before sun rise, are stocks or bonds figuring out when the night is over i say you have to have treasury yields lift before a sustainable rally. typically short term in stocks this is a look from tony and he's pointing out looking back to this entire 10-year bull market that major stock market lows have tended to precede the ultimate low in bond yields. really specifically pointing out
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in 2011 and '12, the low in the stock market, that bottom in the blue line and another big leg down for treasury yields before they started going higher and then similarly in 2016, a less dramatic seeming bottom. that's the february 2016 low you have another leg down in bond yields before going up. does that mean that this major bottom in stocks of last december is sustainable? when we have this huge other leg in bonds or the low? who knows? back in june you don't have the bond market leading the way out of a difficult spot could be different this time this acceleration lower in bond yields is much more extreme than those we saw before and worth keeping in mind when everyone figures out to go according to a certain script, guys. >> mike, thanks. you don't think bond yields have found their bottom what does that mean for stocks in this relationship >> i think the relationship is probably going to continue but
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stocks are wrong and they'll trend lower because things have changed, not the same market of 2012 you have a trade war we haven't had in years and central banks around the world getting aggressive in terms of pumping liquidity in the system. >> sometimes stocks like this. >> sometimes. >> low rates, cheaper borrowing -- >> there's certainly a -- the tina argument is there i would say that the difference is the end of a cycle and starting to see some real slowdown in the uncertainty of the trade war is a new thing they haven't had to deal with before. >> well trade was front and center at the g7 meeting in france this morning president trump renewed hopes of a u.s./china trade deal saying chinese officials had reached out. a spokesman of china said he didn't hear of a phone call between the negotiators taking place and progress with the trade talks with other world leaders. with the u.s. and japan reaching
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a preliminary trade deal and president trump hinting at a post-brexit trade deal joining us now to discuss is john alterman at center for international studies and michael froman, former u.s. trade spokesman of president obama. we are just leaving the g7 why don't you score where you think we are in the trade battle with china >> whenever they do get back to the table, that will be a good positive sign, but i think the question is what kind of negotiation will they have is it over our export of certain commodities to china or the structural reforms in china that the trump administration has been seeking that's a much harder negotiation to have and whether president trump can translate some of the leverage he's potentially created with the imposition of tariffs into actual agreement.
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>> do you think you can get to a finish line on this thing? there are some wall street firms suggesting that the trade war will go on in their words indefinitely. >> i think it depends on what kind of agreement you're seeking. you can reach a pretty quick agreement on de-escalating tariffs and how much china buys of of our products but that is not addressing the underlying issues which this administration and prior administrations focus on and hopefully they continue to pursue those issues, as well. i think a challenge is tariffs are easy to put on and difficult to take off. and once they have been on for a while companies and industries get used to having them on and resist their lifting we have a 25% tariff on pickup trucks in the united states because of something called the great chicken war of 1963 with the european union they kept the chicken out. 55 years later, they're still in place and so the longer these
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tariffs are in place the harder it is to take them off. >> someone should look at that john, so at one of the hardest things to read besides what the administration is going to do on policy and how hard of a line to take is what the chinese do in terms of strategy. some people say they can wait it out, they have a long time frame, take the pain and then other people say their economy is crashing and desperate to make a deal so what is your sense of where the chinese are >> i think chinese feel the economy is being squeezed. they're unsure what to do with the president in the near term i think they have an eye toward the longer term. can they pick apart this rules-based international order which in some ways disadvantages china and can they set up bilateral deals? many ways the trump administration is much more open to bilateral deals china loves bilateral deals because china enters every
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bilateral deal except with the united states as a stronger party so i think china also sees a long-term gain if the united states pulls away from the multi-lateral with a bilateral trade relationship with countries to help china. they're playing between the two extremes the u.s. in the near term and what the world looks like over the next 10, 20, 30 years. >> they're willing to play on a fair and even playing field? >> every time i've spoken with chinese officials they have told me that we're a developing country, we need special exceptions china is looking to maximize what comes to china. and they have a u.s. president who says we are going to maximize not the system but what comes to the united states the chinese are happy entering
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into that. i think you are going to see small deals but i don't think you see a comprehensive deal to pave the way for u.s./chinese competition to look like and seeing throughout the administration is competition that's partly economic and partly military and partly diplomatic and it has to do with what the future of the world looks like. >> ian, from a wall street perspective, what do you make of the latist strategy by the chinese and by the u.s. and whether anything is possible >> i just don't see the incentive for the chinese to make a deal. they're an autocracy and control basically all their media and they know we have an election in 2020 so it seems to me hthey don't have the gun to their head to do anything and more pressure on us given you're seeing farmers on networks talking about going bankrupt. >> plenty of companies are moving manufacturing out of china to avoid tariffs and going to be to vietnam and has to
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hurt having the worst month since 2005. >> it takes years to move those lines. and if our issue is protecting the american worker, what do we think when we move stuff to vietnam? same issues. to me it just feels like we're under more pressure, at least the president's under more pressure to make a deal, or explain to the nation what we're doing and why and get them to rally around the flag. >> how about that? do you agree with that analysis by ian >> at the end of the obama administration we were negotiating a bilateral agreement with china that dealt with forced technology transfer, state-owned subsidies, 90% done and hopeful this administration builds on that, takes the concessions from china and perhaps gets even more if they're able to.
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it is doable but as ian said you have to see where the incentives are. now the u.s. is pursuing a similar strategy, pursuing an america first. and the question is, can the international system really accommodate two chinas both the united states and china pursuing similar self focused policies >> my final question, jon, quickly, if this continues to escalate, what happens next? is it just through tariffs is fear of retaliation against american companies by china in play we haven't seen that the concerns are out there. >> the concerns are out there. everything i have seen from the president is the bark is harsh, the bite often doesn't come.
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and what i saw when the president was talking with prime minister abe and others he wants to be the one who makes the deals an not walks away from the table. i think looking toward the election, looking toward farmers having problems, he wants a deal with japan and europe. i think ultimately the president tries to make small deals rather than say we walked away from a bad deal and got nothing i think he's going to make as big a deal as he can make and not larger. >> all right we will leave the conversation there. jon, ambassador, thank you both very much. >> thank you. we have got 18 minutes before the closing bell. we are up about 177 on the dow disney, nike, travelers leading the charge 3m, dow and cat are the three losers there. still to come on the show, counting you down to the big decision in the american
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airlines center -- oklahoma opioid trial with johnson & johnson. our interview with rick perry and sandy weill talking to them about the new artificial intelligence initiative. trade, of course, and market volatility take a look at the laggards in the s&p today. phillip morris, l brands, gap and dupont ] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.
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beyond meat with kfc for plant-based fried chicken. yum brands first to introduce a beyond chicken item. beyond meat trading up another 5% and yum brands higher amgen is buying otezla it's become the third biggest drug they did this to win the merger. let's stick with health care we are expecting as you may know
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the verdict in oklahoma $17 billion opioid lawsuit against johnson & johnson. meg has the details on what we might expect meg? >> reporter: this is a very important case not just for johnson & johnson but a dozen other companies named in other cases that may go to trial starting this fall this is very, very closely watched. in terms of what outcomes to potentially see, the state is asking for $17 billion from johnson & johnson. if johnson & johnson wins it will pay nothing and settlements in the case at $85 million and $270 million wall street saying to see a settlement -- not a sorry. an order to pay $1 billion to $2 billion people of course, it will be important for other companies in the space who aren't in the lawsuit and named in others. more than a dozen. watch those stocks very closely.
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companies like teva and others this is very big at 4:00 back to you. >> all right meg, thanks so much. expecting that verdict top of the hour we'll break down the decision with two superb analysts wells fargo analyst david mariss and fred hassan to react to that breaking news coming up. up next, we have our last chance trade. diving into what's behind the volatility and whether algorithms play a rtpa in what to do about that do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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less than ten minutes to go today. what is your last chance >> spyders mr. president should address the nation and tell them the truth about china. they're a clear and present danger but to do that, they have to pay more in price. corporate profits may get hit. and it's going to take time but americans have suffered before in order to win this war and we need to and i think if we just tell them the truth they'll rally around the flag. >> isn't that what he's been saying >> no. china's paying the tariffs and been a mishmash of everything. come out and tell america the truth. they'll rally. >> you are bullish stock market with some caveats.
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>> five years. >> my caveat is if the president rallies this group of americans, citizens, we will beat the chinese and rally. >> rallying people doesn't change the change in business that the trade war has caused. doesn't reverse that. >> it changes a willingness for people to stomach higher prices or corporate profits hit a little bit because they know we're doing it for the future. >> hmm. >> even if stock prices take a hit as a result of the policies? >> because we'll come back and win this and must win this. >> got to pick out your last chance -- you picked netflix that still hasn't found much traction >> there's all kinds of pressure on it. they suffered as a result of this competition but i'm still convinced they're the only show to make it and over 70% of netflix's customers only use netflix and less of a chance for churn adding netflix into other
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places. >> not worried about disney? >> a threat, apple is a threat netflix is 150 million subs. way ahead of the game. >> thank you for joining us today. >> thank you. we have got about six minutes left in the session. time now for the closing countdown. let's trade the close. mike lewis joins us now. what do you see in terms of this bounce we were down more than 600 negative for the week last week. fourth week in a row how do you read into the action today in that context? >> hey, guys clearly we have been stuck in a range and it's kind of bouncing back and forth with the different head loins on trade. i think that the difference between where we are now and where we were two or three weeks ago at 3,000 is expectations people at the highs were expecting a super dovish fed and global central banks cumulative and positioning was very full.
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as were traditional investors. now 150 points lower from there, you've got positioning is cleaned out. protection is running very high. and we're at month end and when you have had this disparity you're probably going to see a decent amount of equities to buy for rebalancing. which is a thing that happens at the end of every month so for this bounce today i think we are the lower end of a range people have sold and hedged up volumes are super low. when people come back in september against the backdrop of somewhat better headlines from the trade data it seems that we could bounce back towards the 2900 level and it is incumbent upon the fed and september. that's where people look to next. >> you think this volatility or as some say chaotic environment is going to exist for the near
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future >> yes and no. i think that we are going to move sideways which is what i said the last time i was on. i didn't expect it to be this volatile but subside as the systematic positioning is reduced and not to get into that too much because it's probably a different listener base for that but i think some of the volatility to be removed from the marketplace in the near term the next volatile event is the fed in september on whether it's 25 or 50 or nothing. >> so talk to me a little bit about month-end volatility we are coming up to the end of august how do you see some of the rebalancing and positioning given the outperformance of bonds versus stocks and other things this month? >> yeah, i won't get into numbers but typically seeing this underperformance from equities you see the pension funds rebalance from month end even to the beginning of the
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next month to the tune of a couple billion dollars, for sure. >> mike, appreciate it talk to you soon. >> thank you let's send it over to another mike santoli for the third dashboard. >> thank you yeah, some whip saw activity that mike was talking about has investors dazed and confused it's actually sxwrinteresting to look at analogies. here you have this chopping around action we have had here in a really jumpy within a range. last night the s&p futures pretty much down to the recent august lows. that's really the third or fourth trip there. actually to look for analogies after a big run-up and a rollover, there's a multiple times down to the bottom of the range. early 2018 broke higher lock at last year after that september high you broke lower. three trips to the lower end of the range.
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not saying it has to be like one of these or the other but this is where we close today. at the january 2018 high only other thing to look at is new highs, new lows. balancing in the indexes you have a few more new lows than highs and significantly more not great. something to keep an eye on moving forward let's get down to chicago and rick santelli. >> we couldn't recoupe what we lost on friday 154 is unchanged-down most of the day. two-day dollar index a different story. recouping a very good chunk of what we lost friday and overtaking the 98 handle finally 10s minus 2s if 10s are down on a day and 2s are up, basically negative territory. see if it's the first negative close since 2007
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kate rogers, a different green picture than friday in the nasdaq. >> thank you so much really rallying here into the close. both up over 1%. set to break the two-day losing streaks here big tech names moving on the optimism of a potential trade deal apple up about 1.6%. the biggest point impact to the nasdaq 100, adding more than 10 points helping gains here, microsoft, google, amazon and facebook. all higher today to the downside the biggest laggards bio tech names. and also, we talked about the russell 2000 that's up just under 1%. bob, send it over to you. >> rally but the s&p only regained a little more than a quarter of the losses on friday. tech had modest gains. defensive consumer sectors,
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disney, procter & gamble, industrials, they didn't do anything 3m down negative oil stocks traded at almost nothing. there's the closing bell dow jones industrial up 215. s&p 500 not far from the highs of the day up 31 points. ♪ welcome to "closing bell." i'm sara eisen. >> i'm scott wapner in for wilfred frost with mike santoli. look at the markets finished today. dow jones industrial average up by about 273 points. 25901. a gain of better than 1% and the s&p today. 2878 and the nasdaq give you a gain of about 100 points today.
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small caps higher by 1%. >> a nice rally in the last minute or so of trade. jump of almost 100 points in the dow. but it was overall a strong day. the low up 87. bob mentioned, a quarter of the points we lost on friday so when the optimism around trade is there, it is tentative. when the pessimism is there, it's negative. >> last night, right the futures were decidedly negative and then a trade headline and you flipped and struggled to keep that strength throughout the day. >> yeah. trading on headlines johnson & johnson shares up nearly 1% today as investors await a decision in a landmark opioid case. we will have that outcome when the news breaks. implications for j&j and stocks in the space involved in other lawsuits joining us to talk about the market today, kerry firestone is
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back welcome back cnbc contributor mark ryan for ubs wealth management and mike santoli, here as always on tentative rally. >> a little bit. respectable. you want the market to bounce after a day like friday. i don't think it necessarily was decisive in terms of whether this was truly a lot of people finding value in here, stretched a little bit to the downside remember that clouds on friday was very much we don't know the details of what's coming next from the president. >> it came. >> and then two or three days of kind of switchbacks on that news to me one thing the market is benefitting from is that people were not overenthusiastic and greedy and really aggressively positioned in the market before this little bout of trade static and okay
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that basically means -- doesn't mean the clouds part but means that people are not shocked by the fact that things don't look perfect in the outlook. >> what do you do with the market >> i think it's important to look at where we are technically as mike talked earlier we bounced back and forth across 2900 on the s&p 10 times since april and that to me says that investors go from being bullish that we got a trade deal to bearish that we don't and i think it's more about trade than anything what you have to do is find a place if you're comfortable with the market to stay invested in the kind of companies that can weather this storm but until we get a deal i can't imagine that we can stay above 3,000 on the s&p and reach new highs and stay with the new highs. >> mike, there's a big article in "the financial times" today saying the world's top wealth
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manager urges customers to sell stocks about ubs what are you saying to clients >> let me give you context we are not telling people to go out and sell stocks. we have told people to trim risk positions. we have taken our overall global equity weight down to a modest underweight and based on a couple of things i think the uncertainty of trade is having a bigger impact not just market volatility but business confidence. remember the economic impact of the trade tariffs and the conflict, the first order effects, never that fasignifica. but the more it has potential consequences down the road from a positioning standpoint, be careful around that we want to be more positioned defensively in terms of stock ownership and why we are in the less cyclically sensitive sectors. the area we're neutral on is u.s. equities.
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>> it is hard, though, mike, to be so tactical for the very reasons we discussed since we began the program at 3:00 because the twists and turns, the tweets and headlines, the changes in positions or comments or stories how do you be a short-term tactical person in this marketplace? >> it's hard to do you put it well. this notion to simply trade around old news, a sense of a tweet away from triumph and tragedy. we have to put that aside for a moment don't try to out-trade the headlines. you have positioning in market that's appropriate given the growth cycle, with regard to the fed's likely to do over six months and don't try to overguess the fed or what the president's going to do in the next tweet. >> mike, let me interrupt you for a moment we have a decision in the
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landmark j&j opioid lawsuit. we want to get to meg tirrell with the details meg? >> reporter: the judge in oklahoma found for the state and against johnson & johnson declaring that j&j caused a public nuisance in the state of oklahoma, caused the crisis saying it can be abated and ordered johnson & johnson to pay $572 million to abate the opioid crisis here in the state of oklahoma that is less than some on wall street were looking for though much more than purdue settled for $270 million so the judge here in oklahoma finding for the state against johnson & johnson ordering j&j to pay $572 million. we'll hear from both parties soon. >> meg, thank you. we are seeing a pop in johnson & johnson stock after hours. >> not a tremendous number for
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j&j obviously in the grand scheme of thing. still ongoing process. there's further liability for the industry down the road clearly on a trading basis, the market leaning toward the possibility that it could have been a much bigger ruling in terms of financial impact. >> could have a bigger impact for other cases including the big ohio one let's bring in david mariss and jared holts from jeffries. your first reaction to what this means? guilty for a public nuisance the judge ruling against j&j there and $572 million payment. >> how are you i agree with what mike said on the ruling $572 million is below sort of what the bogey of the hurdle was for this particular ruling we had been hearing roughly $2 billion for the better part of 3
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or 4 weeks that's where investors were in terms of this on anything more a bad outcome. 572 million to me is a good outcome for the company. >> david, this is far below what you were expecting going in. what now >> this is great news for all of the players. teva, endo but just remember and what we have said all along, oklahoma, okay doesn't matter that much the multi-district litigation matters with all the states. the rest of the country is something like 50 times larger than oklahoma or 27 times larger that case matters the most this is great news knee jerk reaction should be positive for others. this doesn't stop the mdl and we think it's going to be tens of billions of dollars. >> so we are seeing that kind of
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reaction here after our hours. endo up as much as 11% big moves. what about the fact they ruled against j&j and confirmed a public nuisance charge does that offer a clue for how other states and that major case in ohio to argue effectively against the drugmakers >> if you are sitting in ohio, this news is bad news. it may be a small dollar amount but says, oh, people will rule against you. we think the companies are already moving in the direction of a global settlement we think this is going to push them along faster but this isn't the good news. it's good news because it is not going to bankrupt companies. based on this. but it is still bad news because it does mean that liability does rest with the manufacturers and other players. >> jared, is j&j -- embroiled in
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the talc, et cetera. what do you do with the stock today as a result of this ruling and looking out big picture? >> it is a really difficult stock all year flat year to date. the talc cases and opioid cases are two reasons why the stock is held in check and been a difficult one to assess. i'm not a deep believer to buy a pop after market here. i agree with david on the fact that this is one state there are more to go i think there are easier ways to play health care than to buy johnson & johnson stock today. you can put together a basket of pharma and med device companies with less overhangs on them to sort of play the johnson & johnson complex. so not a big believer in buying the stock today. there's still a lot we don't know about the outcomes of the
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other trials and i think ohio is a massive case much more significant than this single state. >> david, maybe you could elaborate on that. what is the time frame what are the other big cases who are the other big companies now that we have this judge actually ruling against j&j and offering a template here for how these could go >> empathies drugmakers pushing opioids but the real issue is who else was involved and knew about it it is not distributors don't have any liability because they just ship boxes. it's what were their e-mails saying we are shipping too many drugs here this is a problem. we should be flagging this we are finding out about manufacturers where we see e-mails like that. i think you will see retailers, distributors and the rest all be put -- already named in the ohio suit the ohio suit is really the
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grand daddy of them all. if they can settle that, that should settle all of the cases we think there's a global settlement by the end of the year. >> others say there's no culpability by cbs a company named there. meg tirrell in oklahoma with the response of j&j? >> reporter: we have just got a very short statement from johnson & johnson saying they plan to appeal the decision here in the state of oklahoma we expect to get more from them including potentially talking with one of their attorneys. j&j plan to appeal the decision here in oklahoma holding them accountable for the state's opioid crisis and pay $572 million. >> all right thank you very much. shares near after hours highs up on that lower order from the judge to pay
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jared, how much of an overhang has this been for the sector, for the individual stocks at risk and what does it mean for trading now that we have this ruling >> this is definitely a positive as far as the outcome today. for one single case. it makes owning j&j easier like others have alluded to, though, this is a particular state we still need to understand what is going to happen with this larger landmark ohio case. so this is more of a trading situation. again, not a huge advocate of buying the stock up 4% or wherever it's trading this current second it is easier to make money in other stocks, although if the mentality of investors is that this sort of clears j&j from further much more significant damages then the stock will start to work. >> david, jared, thank you both.
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we'll have more on the story with big implications for the stocks you are seeing. kari and mike, thank you for joining us, as well. ahead, artificial intelligence when we're joined by rick perry and sandy weill. "closing bell" back in 90 seconds. i'm off to college. i'm worried about my parents' retirement. don't worry. voya helps them to and through retirement... dealing with today's expenses ...while helping plan, invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement.
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investors optimistic of a truce between the u.s. and china today after the president said china called and offered to renew trade talks. and yet, stocks rallied today with investors seemingly taking the president at his word. joining us is george perks you guys are really good at sort of noticing patterns and how the market reacts to trade headlines. is it different than it used to be in this current environment it feels like even more sort of volatile and unknown and trade by tweet. >> hi, sara. we have seen a lot of volatility from tweets from the president, especially related to trade. since he first entered the oval office it is frustrating as an investor to look at not only because the trade matters are relatively small as a percentage of gdp but
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also because there's so many mixed signals from the president and can be confusing what's real, what's a negotiating tactic and i think it's a source of a lot of frustration for folks trading the market intraday. >> you guys had a note earlier today we citedon the halftime report saying, not you personally, but the firm, there's nothing worse than being blown out of a position because of a very short drop fueled by a combative oval office missive. this speaks to the twists and the turns of trying to deal with this sort of market. >> exactly so our point is not that inve investors should n'thave stops but they click the button because of a change in the
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underlying business of the stock or view of the stock as opposed to a headline that crossed courtesy of the president's twitter feed but having open orders in the market in this kind of environment can be very challenging because what happens on the president's twitter feed can come out of nowhere and put you in a position you don't want to be in it makes sense for investors to be more patient and manage positions manually other than that market order on a trailing stop. >> george, you mentioned that it's on trade matters that the president's tweets seem to have the most acute reactions i wonder if it's just because the market doesn't really have a process that it's independently able to monitor and handicap coming the negotiations. it is kind of a preference of the executives involved, two principles involved. if that's the case, then do we just have to wait for that issue
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to go quiet to sort of know where the real market is >> yeah. so trade is relatively unique in that the president has some pretty broad powers with regard to tariffs that don't apply where legislation through congress is required or where legislation can be challenged through the courts or other metrics and basically the president can do a lot on his own and the mental state and thinking about how the trade negotiations are going makes a big difference whereas in other areas the views are maybe less important in the crux of making policy as you said, there's just so much opasity in this process. the goals of each country let alone the actual things communicating are opaque so modeling how trade goes between the united states and china and how the dispute evolves is very difficult and every time there's a piece of new information such as a tweet from the president
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markets are going to react dramatically even though trade is relatively unimportant to the economy and not something that's gotten a lot of attention. >> is the advice buy on the dips or just do nothing >> it really depends on the market environment we wouldn't say go in and buy every time there's a trade related dip because to where we look at the markets the trade related dips and rips are similarly not representative of where the market is right now. we are not super optimistic on stocks therefore, we can't see a short term pop or drop in the market as something to be acted on but something to digest and move on and focus on what you are trading whether that's an individual stock, whether that's a sector or portfolio. focus on what you are trading opposed to the noise through the top down market courtesy of the presidential tweets. >> appreciate the conversation,
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george thank you. up next, the financial sector has been a major underperformer this year find out why that trend may continue for a while. johnson & johnson getting a big boost after hours on the back of the landmark opioid decision
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let's take a look at how we finished the day up on wall street the dow pretty much closing at highs of the day 269 a. gain of better than 1%. across the board the nasdaq up better than 100 points russell up by that amount, as well better than 1% shares of j&j. johnson & johnson after hours trading higher following that opioid ruling in oklahoma. j&j ordered to pay $572 million. may seem like a lot of money and it is but the stock reacting the way it is because some estimates had them paying as much as $2 billion. we'll get much more reaction to
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that decision moving not only j&j but a number of stocks in that space. meantime, back to mike santoli for the final dashboard of the day. >> thank you bad news banks not bad news bears i know you got the theme. >> of course. >> but bad news banks, underperformed slightly, down 11% month to date. haven't been able to get out of their own way. this is a very long-term chart that plots the financial market cap relative to the s&p 500. essentially this is financials representation within the s&p 500 and it adds back real estate stocks most of the history, included in financials and one thing that it's showing is each psych wl a low in the relative performance of financials as you did in 2000,
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2009, made lower lows. the bet here is that there's nothing in this chart that says that banks are about to become a leadership sector again. that's a the context see if it plays out with the people believing that now. >> i'm still trying to figure out your theme we'll talk to -- >> film festival. >> what's the why? >> the why is that they are not allowed to employ the leverage, they don't have the juice related to economic growth in the u.s. anymore they used to be magnifiers of growth returns are lower because of the regulation safer, get you in less trouble in a downturn but it doesn't mean that shareholders are the principal beneficiaries. let's get a news update with sue. >> hello, everybody. here's what's happening at this hour dramatic video of a diamond heist in new york on sunday. three suspects who posed as customers and then brandished weapons and tied up employees.
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none of the victims were hurt and a witness estimates that the thieves made off with $4 million in mixed jewelry. officials in newark announcing a program to put an end to that city's lead crisis and borrow to speed up the process of replacing about 18,000 lead lines. this comes two weeks after the city began distributing water bottles to its residents. severe storms causing flash flooding in missouri today video showing water filling up a high school field. much of that flooding has receded but some areas were getting one to three inches of rain per hour. and finally, a man from the country of georgia making waves if you will for pulling a 200-ton tug boat with only the middle finger and pulled it 16 feet towards the shore and in contact with the guinness book of world records
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not sure why you would want to do that. but he did more power to him. you are to date. you can't make it up >> strong middle finger. >> there you go. >> thank you. up next, fred hassan tells us how the landmark opioid lawsuit decision will impact j&j and other drug makers with many stocks off the highs here after hours with the settlement right at the top of the hour that ruling from the judge in oklahoma - did you know that americans that bought gold in 2005
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shares of johnson & johnson popping after hours after an oklahoma judge ruled against the company moments ago in an opioid lawsuit. the judge ordering the company to pay $572 million in damages that was much lower than expected for more let's bring in fred hassan, chairman of the carrot group. fred, first, the importance of this case and this judge ruling. >> this is a profoundly important case because generally in this business you rely on safe harbors fda approved drug, labeling, state licensed doctors who write the rxs and state license pharmacists who dispense so you rely on the system and sadly you
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hear that there's a problem. unfortunately, this whole epidemic could not have been foreseen 25 years ago. 25 years ago we were talking about pain and how do you accelerate the treatment of patients, nurses and doctors were being measured in terms of their pain management scores above 5 that wasn't good for your grade so there's a different mind-set 25 years ago and ump we as a society did not see it comes and now a pretty bad scene but i'm not sure if one particular pharmaceutical company to be held liable for this societal issue that we have seen here. >> i'm not surprised that's your point of view. i say that respectfully as a person who used to be an executive in the pharma industry do you think that -- who needs to be held accountable for what we have witnessed in our communities in this country? >> obviously, if people were not good at managing supply chain,
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they allowed things to leak out or if people spoke outside labeling, that is certainly bad. but to just single out one company that was 1% of the supply chain is -- seems a little broad. >> there are many, though, who are potentially at risk of facing sort of similar lawsuits like johnson & johnson it's not necessarily just one. this happens to be the first. >> i think this is going to be quite a big thing. i think we need to be measured in the amount of damages awards that are going to occur here the most important thing is to focus on the patients. we need to focus on prevention, treatment and early intervention when there's an overdose i really think that's the important thing that needs to be looked at, not trying to make up for state spending locally at
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the state spending it should be just focused on the patients. >> the argument, though, fred, around the public nuisance charge was that they aggressively marketed the use of these opioids to cure pain and down played the sort of negative aspects, the risk of addiction which spiraled out of control in this company it is how they marketed it, isn't it >> that's the complaint in this area it is severe it's monitored by the federal government very aggressively the doj looks at this. there have been many, many decisions. j&j and many other companies are extremely come li extremely compliant. i think there's breakdowns but generally if you look at the company this company systemically is a very strong company, strong compliance system a great ceo. i don't believe that they would have those kind of breakdowns.
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>> if you were running j&j today and as we said some of the estimates had the payment as high as $2 billion, so it's 572 on its face. would you appeal it or just pay it and think you got off better than you might have and move on? >> from a money point of view, you can see that the market is reacting in a positive manner. this is more a matter of principle. i'm speaking for myself. i think this is a matter of principle. if you work by the rules, play by the rules, why should you get singled out for something that's developed from a societal point of view? obviously the biggest contribution of pharmaceutical company to make under these circumstances is to bring up new drugs that are super aspirin or a super advil that doesn't have the addictive qualities. it is really a pity with the great science these days we are
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still relying on opioids to manage pain. we need more in that area. >> does cbd fall in that category >> a lot of energy is going. but i personally have my doubts because the science is not well developed there. but there's a lot of noise out there right now and a lot of money going to that area. >> we appreciate your time, fred thank you. >> thank you. still ahead, find out how the trade war with china is impacting the energy sector and the broader economy. we'll speak with the ergney secretary and former citigroup ceo. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade.
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disney unveiling much more about the streaming service strategy at the annual event julia boorstin with the details. >> reporter: disney showcased the big brands and big budget shows it hopes to draw subscribers to disney plus like its new trailer for the "star wars" spin-off it's up to seven user profiles and four streams at the same time and include streaming in 4k and hd to compare with netflix it
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charges $16 for 4k and 4 streams. unlike netflix, though, disney plans to release the new episodes of the originals weekly rath ethan dropping them all at once less opportunity to binge on disney plus. back the you. >> having a good day in the market thank you, julia. up next, speaking with energy secretary perry and former citigroup ceo and chairman weill of an initiative to boostmeca ari's standing in the world of artificial intelligence, next
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the department of energy and the weill foundation to initiative a new public/private partnership. the group entering agreement to apply the energy department's ai capabilities to bio medical research. the goal to improve diagnosis and more effective treatment. >> joining us now exclusively, sandy weill and also with us today is the energy secretary of the united states rick perry gentlemen, it is great to have you with us today. secretary perry, you want to tell us about this agreement today? >> secretary perry, can you hear me >> looks like to me the shot as
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frozen we'll try to get back. mr. weill, do you hear me? >> i hear you fine maybe you can tell us about what you're saying today is a groundbreaking partnership >> well, this is an important public/private partnership and i think as one looks at science and the development of new science and especially ai and computing, you really need to have partners to make things work it's too expensive for anybody to try to do it themselves i think what the secretary has arranged here is to create a partnership between our foundation, ucsf and uc berkeley with lawrence livermore and argonne national laboratories to work with the power we have today which is as much computing power in the last two years as we have had in the previous 100-some odd years and we're
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working with three national labs to have new computers ready by 2022 that will be able to be 15 times faster than what we have today which will really break the logjam, especially as it relates to neuro degenitive diseases and with everybody doing better, with the cancer research and with cardiovascular research, people will live longer and all get these neuro degenerative diseases over time unfortunately and what we are working on is to prevent that because it's too costly, not a good thing and again, really, as we compete with china in the world we have to beat them in this field. >> yeah, secretary perry, if you can hear us now, how do you think about how this partnership is going to work, how you will use the money and why does it fall under the department of energy
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>> yeah. most people don't think about the department of energy and medical science but we have been involved with this for some years now, particularly on brain science and it's because of the super computing capacity they have lawrence livermore, for instance being able to take that data and get answers to questions that before you just did not have the broadband if you would, the band width to get the answers today we are approaching that. in the next 18 to 24 months we have computers coming on board that are going to be between 50 and 100 times faster than these computers that we see today. so the improvement in health care particularly in the brain science side is going to be monumental, i think really world changing and the department of energy is right at the forefront of it and we have great thanks
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to sandy and his family foundation for being a partner with this and there's other private sector folks, as well, that give to these types of public/private partnerships with the federal government. >> if i could ask you, you mentioned and i think your exact words, we have to beat china on this and i'd like to take the conversation there if i may and if you'll allow me to do that and the trade war -- >> do i have a choice? >> not really. since you asked. but i'd love for you to answer a question for me on that as to how you see that today president's leaving the g7 there are questions as to where we stand with the chinese and the trade war. how do you see it? what should happen next? >> well, i think it's very important for the united states and china to really figure out a way to get along with each other
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and partner with each other. i think that with the two countries, the united states and china, partnering for the future i think we would end up with a better world, a safer world and so i hope that the conversations lead to a relationship that is really very good and lasts a very long time. >> do you agree with the way that the president has gone ant wit the tariffs? >> i don't really know about everything that he's done. but he certainly keeps me on my toes. >> all of us secretary perry, one thing that china has done is that it imposed addition altar i haves at the end of last week. 5% and 10% on u.s. ek ports that go into china and that includes crude oil and i wonder how you think about the impact of that. >> it's important to take a step back and look at the broad picture here china has i think misused the
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position in the world for some period of time the first president certainly in my lifetime that i recall that's really stepped in, leaned into this saying, china, if you want to do business with us, if you want to be a good neighbor, part of the world community sort to speak, here are the rule that is you need to play with. we know that they've been stealing intellectual property for years and years. and no one's really stepped in and said this has got to stop and that's what you see president trump doing. my hat's off to him for being a strong negotiator when it comes. the united states is the number one oil and gas producing country in the world thanks to innovation and technology. we find ourselves leading the world in oil and gas production. so if when you look at it from that position, china needs us a lot more than we need the chinese. i agree with sandy if the solution is finding that middle ground, finding the way to get along, to live within the
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rules of proper engagement, then hopefully we'll find that and the chinese come to the table to say, look, we want to do business with you, to be good neighbors and partners and that's a solution. >> you think, mr. secretary, that we can get along with someone like iran? the president at the g7 suggested that he would be willing to sit down with rouhani. i'm wondering if you agree that he should and how you think that that relationship moves forward. >> well, certainly i think the president has taken a very strong stance against some of these deals that we went into that were not in america's best interest, the iran deal was one of those from my perspective and a lot of folks, certainly from the president's as well. if the iranians want to come in good faith and make sure that there's not going to be nuclear weapons that are being developed there, that they're going to be good citizens, that they're not
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going to be purveyors of terrorism around the world, then, sure, sit down and talk to them but their history has not been that, so, you know, this is one of those show me moments, and the iranians have the ability to do that certainly, i think, the presidentwould be willing to sit down and listen to them. >> well, actually, oil moved lower today in anticipation that if there is a meeting, secretary perry, then the u.s. would be more lenient when it comes to letting iran export oil. how likely is that how high is the bar for that kind of decision >> well, yeah, i don't think one day movement in the oil market is going to have any impact on whether or not the president's going to be still negotiating from a very strong position. you know, the market's going to go up and down, we get that, but don't ever forget, we're in a vastly different position than we were five years ago and certainly ten years ago from the standpoint of the production of oil and gas. america is number one. >> mr. wile, how would you, if
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you were still running a publicly traded company, how would you navigate the current environment? so many twists and turns and change of narratives and different headlines. what would you do? >> well, i've always believed that change is not something to be feared but change is something which creates opportunities and if i were running a company, i would look for ways in this kind of environment where we can better position ourselves for a time when things will be more stable. >> does the stock market -- how does it look to you in what is a fairly unstable environment? >> well, you know, you're asking the wrong person because i'm always an optimist and i have always felt that people don't like to follow pessimists, so i continue to be an optimist i wake up every morning that way, and i don't always go to sleep as an optimist, but the next morning, i'm optimistic again.
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it's a great country to think long-term. >> what's your level of optimism around the banks right now i mean, they're trading around a historical trough versus the s&p 500, obviously there's the rate outlook, but do you see value in the banks? >> i think the banks -- i think the banks are very, very cheap >> you still think they should be broken up >> i do not. if we -- i think that we're doing the right thing in making some of these regulations better and easier to follow it was costing all the banks hundreds and hundreds of millions of dollars, billions of dollars to be compliant with all these regulations that really didn't do very much and i think the banks financially are in a very, very good position, and i think they serve a very important function to our markets. >> yeah, mr. weill, what do you think of the -- what do you
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think the job that jay powell has done, the fed chair, how would you assess that? >> you know, i think that jay powell is a pretty smart guy, and i think that he's pretty transparent and i think he's competent. >> you think he should cut interest rates again >> i think he should look at the numbers at the end of september and make a decision. >> we appreciate both of your comments on a wide range of issues but especially oncoming here to talk about your news about this new public-private partnership around a.i >> sara, thank you very much >> thank you so much, sandy weill, secretary rick perry. still ahead on the closing bell, we're going to look at the data that could give information about the health of the american consumer
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let's take a look at how we finished the day up on wall street, the dow jonas industrial average up almost 270 points s&p, nasdaq, and russell 2000 all up by more than 1% but the nasdaq a gain of a hundred points take a look at j&j as well off its high following that
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opioid ruling in oklahoma where a jouj ordered the company to pay $572 million that was below some estimates that that could reach up to $2 billion >> coming up tomorrow, we'll get an important read on consumer sentiment with confidence numbers out in the morning last month, this number surged to an 18-year high he'll see whether confidence in the economy held up through the trade turmoil. the stock market volatility and what that means for the data dependent federal reserve. and of course, the white house with its eye on the market what will you be watching, mike? >> first of all, on the j&j move, i mean, obviously, it's going to have at least initial legs in terms of lifting a group a little bit, having them reassess the liability although j&j has been a weak stock so this pop is getting it back to two weeks ago, just to put that all stuff into context honestly the follow through effort of the market itself to me matters a lot we've been sort of yo-yoing around this range in terms of the broad indexes and you know, bounced it three or four times off a certain level and we've
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kind of released ourselves from the bond yield gravity a little bit but you know, wasn't a big move in yields today, and really barely at all and you finally got this bounce. so, recovered 40% of friday's loss, s&p 500 is down almost exactly 5% from its record high a month ago, so you know, the market is chomping around in a range and hasn't really gone deeper than you would just say it's a routine pullback just yet. >> looking for catalysts too you got your seemingly positive trade headline today, no real development, but a headline. what happens in the days now that -- >> i mean, history says the market wants this issue to go silent for a little while. it's probably too much to ask because we do have this notional deadline, right, september 1st, several days away but right now i think you might have seen the worst of the headline shocks from friday in terms of, you know, that worst case scenario of ordering companies to disengage from china, right? >> hard to imagine one that could top that >> you wonder if traders have a
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callous against further headlines in that direction just because that was so extreme. >> it was that and also the threat of -- and follow through of new tariffs >> on both sides >> both sides. >> guys, thanks for having me. >> thanks for being here i think wilfred's back tomorrow. >> good stuff. >> from his four-week vacation >> that uz does it for us. >> "fast money" begins right now. >> live from the nasdaq market site this is "fast money." traders on this very important day with tim, bryan, mark, and carter will join us momentarily. the headline what a difference a few words make stocks rising, surging as president trump says that china wants to make a trade deal so how are traders trading all the twists and turns over trade? we're going to take you to trade school straight ahead. also, lyft, getting a lift today following a big analyst upgrade so is it time to put the pedal to the metal

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