tv Closing Bell CNBC August 29, 2017 3:00pm-4:59pm EDT
warned that an uptick in gross dilation we began the day with a north margins would moderate in the korea missile launch, down 150 coming quarters. the company's ceo will see point. the markets rattled in europe. competition in the electric category is expected to >> right. >> we cover all of the things intensify. those comments dragging down the happening in houston and turned stock despite its beat on around now, 40-plus points on earnings and revenue this morning and down 12% now the dow. if we look at the intraday wh t% the nasdaq is having a really good session. >> and we're green. forecast income growth versus the >> things happen quickfully. >> thank you, joe, for joining estimate of 3.5% to 8.5. us here upon "power lunch." >> thanks for having me. there's plenty of things to look >> "closing bell" starts right now. at saying this company is looking very well and they were conservative about the guidance and acknowledge some of the problems, the investment and the gross margin pressure. >> hi, everybody you can see the reaction. good afternoon welcome to "closing bell." >> and at same store sales up i'm kelly evans at the new york stock exchange and i'm wilfred 5.4. >> incredible. >> an incredible number. frost in for bill griffeth >> amazing in this environment and look at the journal today, flooding in texas showing little stories about how best buy and signs of stopping and the amazon are sending to your house h.walking around and explaining how to install these things. addicks reservoir overflowed today for the first time ever. trying to make the case for the we'll take you live to texas and talk to a houston infrastructure expert about the impact on the right player. >> definitely the traditional retailers, as soon as there's city. >> and president trump is now en any negativity, best buy down route to austin. the state's capital at the
moment earlier he toured the coastal 11.4%. >> 15 percentage point swing. areas. we'll bring you the live >> and meantime a news alert on pictures from austin as soon as another retailer, this time it's the president lands. >> but we begin today with an target event that shook the market ari levy has that scoop for us. >> cnbc has learned that target overnight. north korea launching a missile is making a major move off over japan amazon web services. while stocks have made up early our sources are telling us that logs eds, more details about whether there will be an this is a longtime coming. target's been hitting -- amazon official full u.s. response. has been hitting target at every hans nichols out at the pentagon with all of that have. corner imaginable and most >> reporter: we do have a response coming from the office of the secretary of defense, and they are saying, this is an recently in whole foods. target is taking their money intermediate ballistic missile missile, irbm. it gives you an indication of elsewhere and they are vesting the range, the theoretical range internally in the their own is less than an intercontinental development and expect microsoft and google and ibm and oracle to ballistic missile. now we also know what the theoretical range of of this approach retailers who is are missile was, and it looks to be looking to get off of aws given about 2,500 kilometers the dominance that amazon is showing across the retail spectrum that are wouldn't put guam in range. scientists are going through this, smarter people than i am, >> wow and the full story is on and they are basically trying to figure out who the loft was on cnbc.com and, look, i mean, aws this it looks like it was on a is such a huge business and if slightly lower trajectory. you're forced -- i guess it's officially from are the good for whoare the others pentagon, they are saying they google you know, the other big web immediately assessed this. it wasn't a risk to the
homeland not a risk to the continental hosters. got to go somewhere. united states. >> sources are telling us that it also wasn't a risk to guam. so that might be why they didn't microsoft, googsle all should be knock it out of the sky, why making a major push in this they didn't shoot it down. area if you're looking for one market they have called for an where customers could be spending millions of dollars a emergency session of the u.n. year and they definitely don't want to be spending with amazon. security council, nikki haley of course, it's the big retailer has and in some ways everyone is so we've already heard walmart stressing the importance of diplomacy but the diplomats are making moves and we're hearing the ones who are saying enough about others that could is enough. potentially be on the way. there's a time for action. >> hoping to find how the those are the words for nikki whether aws is subsidizing the haley. here at the pentagon, standard rest of the retail operation response, they always have saying, fine, put pressure there options that's removing assets and maybe they can give us into the region as well as relief over here something more and in the words anyway, that's how competitive it's been. great story. of one official i spoke to this the full story son cnbc.com. morning, kinetic you hear kinetic from someone in thanks for joining us. >> thanks. the pentagon >> time for a cnbc update and that means bang-bang over to sue herera guys >> hans, just to be clear, even >> hi, kelly, hi, wilf if this didn't pose a direct threat to guam or the officials, i imagine japan is not happy a suicide coming killed people in a suicide bombing in kabul about it. >> reporter: japan, and that's why there was a phone call not far from the embassy the taliban claimed responsibility for that attack between donald trump and the and said the explosion likely prime minister of japan for targeted a branch of the about 40 minutes japan is like a frog in boiling privately owned kabul bank.
two people were stranded water. they have been living so close, when their cars became so immediate to this threat. completely submerged in water sometimes they are not that concerned about it near the jacinta river and the this one seems to be different the fact that they sent and bridge there in houston. up waited for help on the roof lofted a missile over japanese of the pickup truck while others territory. seems that the japanese are a stand in the back of the pickup little more aware of the truck, that as water rises all acuteness of this threat and that you may see all three around them. they were eventually pulled to countries, the republic of korea safety. and louisiana also being hit as well as japan have some sort hard by harvey the national guard rescuing people in lake charles due to of unified response. in the past they have done heavy flooding there joined training missions authorities wading in with the response was from the south residents to high water koreans and they dropped some vehicles. meantime, kim kardashian bombs on a test range. west and her family are donating one other quick note the defense minister from north $500,000 to help in the relief korea is scheduled to be here at effort the pentagon tomorrow meeting a spokeswoman for the reality with secretary mattis. star says she hand her mothers guys >> hans, thanks so much for and sisters have given 250,000 that, and in light of that, interesting to see that the to the red cross and 150,000 to nikkei was down only 0.5% each the salvation army lots of people helping out there. when we saw other asset classes selling off a lot more. ing. >> thank you, sue. >> and the u.s. stock market has the conations are flying in and rebounded and is in positive so is the president who is now territory. about to land in austin, texas let continue the discussion with we can show you those pictures joel reuben from the washington of course, that's the capital of
strategy group joel, thank you for joining us here look, what if the missile had the state where there's recovery broken up over japan instead of shortly after passion by efforts under way i mean, there's a lot of risk half an hour to go before the close, and we've had a big here, isn't there? rebound today. >> yes, kelly, there is, and up about .2 of a percent and it's great to be with you, and we're down 150 points or so in this was a significant the dow early this morning provocation and north korea is before the open. clearly testing us joined now by gordon cholup. one thing that decan say though is that the fire and furry policy of the president has crashed and burned this is not a policy that's does it mean that the external working. our allies do not have confidence that we have a real geopolitical events are buying strategy to prevent north korea opportunities? from continuing to provoke and >> certainly seems they are buying the dips. just a very interesting day overall. expand its nuclear program and look, you came in and gold was up and the futures were down. its missile program so we need to really get not diplomatic you thought that this could be track more aggressively than we one that might see a little bit have been so far. momentum to the downside but >> joel, as we just learned, they stabilized quickly and started rallying this missile couldn't have even though the dow is up close reached the u.s. or guam, but to 70 points, eslips volume a clearly it could have reached japan. japan though still decided not to shoot it down little bit and maybe not that is it a reminder to the u.s. strong, but in light of some of the news, quite a remarkable that any action by the united turn of events. >> how do you frame august as a states would lead to potentially whole because the declines we've
catastrophic fallout for its seen not that significant. asian regional allies but not a percent here or there for the united states? month that we've had lots of >> well, i think where north negative headlines korea is going with these varied seems that 2440 on the s&p is tests is that they are kind of in the fulcrum point, but, again, you look at the news demonstrating a variety of that came out this morning, the technical capacities, potentially to reach guam. far east and the natural they are demonstrating with this test that while they did not disaster that's going on in want to go as far as guam houston and what the implications are there, we certainly dodged a bullet. because that could have been a look, the oil refineries signal that they were following through on their threats to attack it from several weeks obviously were -- were something ago. it shows that they have the that people were concerned about capacity potentially to go and even though they shut down, there, so they are testing it there were no disasters to speak the limits, but, again, this is of there so, you know, hopefully thing north korea doing what north korea often does will recede and politicianses however, what's different this will get together and figure time is that they have technical this out and we'll continue to built. if they can consolidate at this capacity that many analysts do not think that they were going level. you've got to think the upside to achieve so quickly. we really need to get off the looks pretty good here. >> thanks so much for that dime here. kell. >> thank you both. we can't let the uncertainty of 25 minutes to go to the close. we'll see the president shortly landing in austin, texas, the dow is now up 67 points after a non-policy -- a 15-year policy futures were down 150 on the that we've had across administrations. can't continue that policy north korean rocket launch last i'm afraid we're continuing though and that's a problem. night. s&p up 4 and nasdaq 25 and the >> well, i mean, joel, there aren't a lot of good options
port of galveston remains closed here obviously we're looking to the chinese to to all marine traffic leaving put more pressure to bear. oil tankers and cruise ships stl right for everybody, the chinese maybe themselves, to stranded we'll go live to the texas coast assume that they aren't a to see when the operations might target i mean, they are absolutely resume also, the likes of walmart, within range of what north korea target, home depot and lowe's can do. >> exactly are just some of the retailers china has significant equities making donations to assist those here if not for an attack which i devastated by the hurricane and don't think is the primary harvey may impact ese th concern but certainly if there were a war on the peninsula, retailers long after the water recedes. that story coming up there could be a refugee flow from north korea into china. your brain is an amazing thing. that's china's deep concern. they are very cognizant as well but as you get older, it naturally begins to change, of south korea and the potential for significant logs of human causing a lack of sharpness, or even trouble with recall. life there if there were a war, thankfully, the breakthrough in prevagen helps your brain so everyone has equities in this and my biggest concern is that and actually improves memory. we've been outsourcing our the secret is an ingredient originally discovered... diplomacy to china, asking them to clamp down on north korea, in jellyfish. and they control the cards and our policy right now, the north in clinical trials, prevagen has been shown koreans continue to call us out to improve short-term memory. amongst -- with our threats. prevagen. the name to remember. they demonstrate that they are just threats, and we need to get a broader policy than just asking china to lean in.
>> joel, thank you very much for that joel reuben joining us to discuss north korea. >> my pleasure. >> hurricane harvey was the most powerful hurricane to strike texas in more than 50 years and is expected to linker there for a few more days to come. contessa brewer is in houston with the latest forever us contessa >> wilfred, i'm in a humvee, an antique part of a military convoy of vehicles that belong to the united states armed forces museum. we're heading out to flooded neighborhoods. they are planning to see if there's anyone there who needs to be rescued. they have been doing this for the last several days, and we happen to be at a travel plaza right here the amazing thing this is next to a pilot travel plaza. that pilot at all of the gas pumps were rapid in plastic. apparently inoperable and here at the love travel plaza they are open for business and the cashier told me they have plenty of gas and supplies inside the mini mart. there's a steady stream of business people who are looking for
snacks to buy. they have still cold beer and energy drinks and cigarettes are and jerky and remark whether i the arby's connected to the travel plaza was open for business this is a place that was well-stocked and well prepared ahead of the storm and is still open, and yet next door there's a place closed down for business just wanted to say that houston is getting ready they took care of almost 10,000 people last night at the convention center. they are now preparing for an the energy conscious whopeople among usle? say small actions can add up to something... humongous. additional 10,000 residents who need shelter in some of these shelters, so we'll be watching a little thing here. for that overnight a little thing there. we're watching to see these starts to feel like a badge maybe millions can wear. reservoirs and whether they have overtopped and the flooding that who are all these caretakers, advocates too? goes into the neighborhoods, and we'll bring you the late as soon turns out, it's californians as we get to the neighborhoods and see what's happening out and it's me and it's you. afraid from the city center. don't stop now, it's easy to add to the routine. wilfred? join energy upgrade california >> contessa, thank you very much for that excellent ongoing and do your thing. coverage, contessa brewer. stocks coming back after a big selloff early in the day joining ours "closing bell"
exchange to discuss is kim foo, cnbc market analyst and also from stewart frankel steve grasso and our own rick sell el over at the cme e. rick, i want to start with you what an extraordinary turnaround we saw from sort of the middle of the night to early this morning, not just in equities but particularly in the u.s. welcome back to "closing bell." dollar talk us through what happened president trump just touching down in austin, texas on air there. >> yeah. it's really quite amazing. force one. the dollar index getting down to eamon javers has more. eamon? >> reporter: that's right. levels we haven't seen since the we just got pictures of the very end of 2014, and it's come president's arrival in austin, texas, on his way to a state back a lot maybe they can show the chart, facility there came back. he's going to the texas it's now unchanged department of emergency virtually unchanged. operation center so we'll see him meeting withing officials in texas. there you see the pictures of the president coming down the 22.20, 21. you can see the big recovery, air stairs there of air force one along with the first lady. and you can see it's the lowest he arrives as we've just gotten price for dollar index since the some sad news from houston beginning of 2015, and it does underscore that the euro popping police houston police chief says that an officer's body was recovered above 1.20, something that many thought was likely but not going tuesday morning. he apparently died when to happen any time soon, that floodwaters overcame his vehicle was just several months ago. as he tried to get to his post, the euro currency has a lot of so some tragic news there from strength in its own, but at this the houston police point the currencies that you the president, we are expecting
always see pop when you see news he'll get a briefing from like north korea seem to be officials in austin which is those currencies getting well outside of the disaster involved in lots of derivative zone here. remember, with the presidential structures because they have visit, they are trying to avoid negative interest rates, whether impacting the hardest hit areas it's the yen or whether it's the with the entire presidential euro, and in terms of the ten-year note, i think it's fascinating that as it sits apparatus, the motorcade, security and everything that right now we will not get a new goes along with the president as low yield close for the year he travels but he'll be able to talk to state and local officials there and we expect taking out that the 2.12 even he'll be come home to washington, d.c. tonight. though we trade it had as low it >> awful news about that police is a 2.08. sergeant, eamon. if you want to take everything >> it's tragic. simple, a 2.60 high, big double >> for a police sergeant just trying to get to his job and help rescue other people bottoms from 2012 and 2016 right thanks for now flooding from the hurricane causing some large refinery around 11.40 you know the average of that is outages. let's get over to brian sullivan 2% if you want to keep it simple from galveston with more there's a nag net trying to draw >> brian. >> yeah. hey, kell deand wolf 2% and even with all the issues of the day couldn't quite get it certainly my thoughts and within eight basis points of prayers to that officer's family that's just terrible news. that but bunds, gilds, these are men and women putting their lives on the line every single day and our thoughts go out to them. >> back to business about. everything recovered the refiners we know started as a flat anything
event. may end up a curve steepening majority of the refiners event. >> what's interesting about this is it comes with major concerns they remain second biggest in about north korea, of course, america. that's been shuttered since and what's happening with hurricane harvey and the impact, yesterday. the news that changed today is bullet at the same time this that the refiners are about 100 morning i don't know fur saw the miles to the east in the port u.s. consumer confidence number couldn't have been better. almost 123 in the headline and the second best reading since arthur-beaumont area and reports that the beaumont facility has 2000 the best plentiful gain since been shut down, 300,000 barrels 2001 millenial confidence is up a day and saudi ahramco has shut dramatically from last year and so is confidence among low-income americans, so i don't know if that's enough to push capacity from its factory there, this market higher, but we've the biggest refinery in the united states, so that whole certainly seen a turnaround. >> you bring up an excellent area, port arthur is 8.5% of point. the economic backdrop. total refining capacity so call things are still pretty good and it 17% to 20% of total u.s. well off in the united states, refining capacity is out and then there was a global a lot of questions about when recovery at hand and couple that this is going to come back with the united states doing online, but will go back to the well earnings came out and finished human story and even if the our earnings cycle and finished refineries suffered no flooding damage, even if they are objection the big question may basically on eps by twice as be when can people get back to much you put in the bad them because there's widespread everything from failed issues on flooding all throughout this the hill with republicans not area, all the way from here to
able to push through a houston. i don't think we've tried to get pro-growth policy agenda, and to houston we can't then you couple that with the i don't think we could unless we hurricane as you americans and had a jet pack or something. then you have the north korean that's video from dickinson, event last night that should have been a res keep texas, which is about 8 to 10 miles north of where we are for the market to sell off right now. that's our video from cnbc, and you would think you're in the last week of the summer. there's been some dramatic people are going to sell first rescues even today in fact, this guy. and ask questions later. they call themselves the cajun to me the risk is to it the navy some people from louisiana have come over with their flat boats upside and still buying units. and jet skis to rescue people. i think you stay long on the mark right now. this guy saved a woman with >> does what what's happened in cancer listen to this. >> she said i got a lady out who the markets suggest that if we the had cancer do get another north she couldn't even walk korea-related worry that that would provide another buying i came out of the boat, someone student, or is this something said to come in, so i pushed in more serious and we have to keep an eye on it for markets at that dore as well and water up to my niece basically so i least. >> i think long term, you know, walked in there. the markets are still bullish, she was sitting out on the couch and the bottom line is if we do and saying she can't move so i see another north korea, that's picked her up on my back and i got her out to the boat. obviously something unexpected and the markets don't like that. we're eclipsing almost 300 days without a pullback of a market of 5% and if something like that >> these citizen heros are doing
did happen this would be an good work and keep this in mind. opportunity to buy and it when you open up these wouldn't surprise me if it did can't keep going straight up refineries the guy we just interviewed without a pullback in the market there. and we would be poised to buy in that's about three miles from one of the largest refineries those opportunities, and we're out there. about three miles, soyou've go encouraging our client to be still long the market and nine feet of water bullish and stay fully invested i don't know how you talk about reopening a refinery what that's with the diversified portfolio, the case but commensurate with the ability to stay in the market look at that thing going by with these dips. live hold on. oscar, can you get that. >> let me just jump n.rick, i >> look at this. was also going to mention that we had had the home price index like a that track. this morning, case schiller, 77% this is live, folks, and that's of the pre-crisis peek and back obviously the national guard then we thought things were completely insane. granted, it's been over a decade rick, i guess my point is if we have the ten-year under 2.1% briefly today with that consumer somebody out there probably know what that are officially called, confidence and house price but they look like half tracks activity are things getting seriously out of whack that would go on land and in >> to some extent you're correct water. because there's a huge correlation because what a and you can see the s.w.a.t. mortgage goes for and ten-year team in the white truck going by note yields and when you look at as well. we've got a lot of rain here things as a hold we see great
price appreciation over the last today, guys. i don't know how much we handful of years in housing, but officially got 8, 12 inches in ma earth ma of in are pockets doing well and pockets that aren't doing well 12 hours one thing i have a hard time and these guys, the natural, applying is that low interest they tried to get out last night. they got four flights out last rate don't seem to be the secret night and c-330s with evacuees sauce that makes housing drive and the airport got shut down. or not thrive. we had so much rain that the there's many other issues, a lot airport completely shut down and of them are economic and a lot have to do with jobs and the natural has obviously been activated including these location, which part of the country, i don't see that change offing any time soon, but it's advocates here, and so, kelly always a positive to have and wilf, good timing there, downward pressure on rates no guys, and i guess they are doing matter where you are in the good work. i don't know if they can see us country with respect to trying to procure a mortgage. up here but godspeed to them and >> how much is what the u.s. dollar is doing influencing we've got a long way to go whether you'redeciding to buy >> godspeed to you, too. or selleck tis, particularly this summer? stay safe. >> this has been a process going thanks so much, brian sullivan in, texas. on for quite some time >> just want to pause for a we went back to january of 2017 moment i mean, it's just incredible to watch and all the volunteers and we saw president trump talk showing up from louisiana or down the dollar, and he wherever they need to help put this out one by one. correlated it with china, fixing >> official roles as brian was their currency i think this has been going on for a long enough period of time showing there, to just that the trade might be out of individuals. members of the public. outstanding stuff. >> makes this country great. it the wind might be out of the
sales. >> 15 minutes to go. we've seen the all small cap we're looking at the dow up 63 index and seen the s&p, seeing the analogy in trading made to points right now and s&p up. try to catch up on the iwms, the russell, where it has been >> jc penney and whole foods outperformed by the s&p, so i -- i don't think that the dollar at this point is really a trading headquartered in texas how hurricane harvey is impacting the retail space in catalyst will. i think that it's telegraphed particular stay with us mark for a lot of traders that are involved in the equity markets, but i will go on and say that the north korean issue, it's been bad, it's been a terrible issue, but isn't it conspicuous that we haven't heard the administration really pound the table this last go-round i think that's exactly what they want to see. they want to see japan, china, russia, south. they want to see all those countries get involved and not carry it on the u.s.' back and i think it's a positive for the overall market. >> thank you very much to all of you. kim, steve and rick. we've got about 45 minutes left to go before the close, and we
are higher remarkably higher by .2 of of a percent for the dow and .4 for the nasdaq earlier at 5:00 a.m. you can the dow was down 154 points and a massive turnaround throughout the day. the flooding in houston limb pact city long after the water subsides up next, a look at the impact on the city's already challenged infrastructure. >> and most stores are closed in it the houston area. super market chain kroger opened wes caonitlotis. 'll look at at challenges of restocking the city with those essentials to live when we come back whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest...
welcome back retailers already under pressure have been further rocked by hurricane harvey among those with the most exposure include dillard's, enmarcus, dollar general, macy's and kroger, and the latter two, macy's and kroger, have distribution centers in houston. >> joining us to discuss the sector and the impact the storm is having. ryan payne from capital markets. and stacey, thank you both for joining us stacey, i'll start with you. the share price pulled back a little bit in terms of home depot and rebuilding afterwards. what's your take on that and whether it will really get a benefit? >> in the past you've seen the home depot loads hurricane boost and typically home depot does do well when there's a cleanup. lowe's funny enough after katrina underperformed, way
underperformed home depot so home depot gained some share and i think there's giveback here because people are looking at what the insured are are the insured are 15% to 20% of homes which are a lot less and people are starting to say, you know, how much will really be spent on diy. >> ryan, how are you thinking about this >> the stocks haven't moved that much and had a little spike up after the news of the hurricane, but really the bigger story is amazon i think that's really weighing on retailers right now and we had to get rescued by a that's why you're not seeing a boat just to get out big movement in the stocks. we walked about a mile, and the >> do you think that amazon is the one who has potential to water was like here to my gain share after all of this i look at pictures and think it breast i mean, it was crazy doesn't look like you'll be able i couldn't get the dog, so i to move something to your front left my dog at home. door for a while. >> absolutely. she's on top of two chairs, and >> amazon, they just seem to win at every corner, and this is in her cradle so we're trying to another feather in their cap and get to the dog, but as you can not for home depot and lowees see i don't know how we're going to get to her. specifically definitely have a competitive we're going to try are advantage so i think that that's i lost my car. going to work in their favor as i lost everything in my apartment. i don't have anything. well. >> stacy, what about the regional exposure in terms of >> that was just one of the many who is going to experience residents impacted by the
longer closures than others in aftermath of harvey. the region. >> we've heard from some companies and heard from auto the storm's record rainfall and nation and certainly dill yaried flooding caused one of houston's has exposure down there and car major reservoirs, addicks max has some exposure. we've seen obviously auto parts reservoir to overflow earlier this morning and there's concerned that barker reservoir manufacturing is big down in that region so there will be could overflow earlier today. >> what does it mean for the future of houston's infrastructure joining us on the phone is jim disruption, are kroger's distribution center and macy's blackburn, a civil and and we talk about am soviet republic environmental engineering when you have a situation like professor and he's with the this, what are the opportunities for retailers to pitch in and prevention and disaster center help for home depot and walmart just want to begin by asking you as they have done in the past and create customer loyalty and say we're here for you how you would interpret what's happening with the reservoirs we're going to get to your door right now. >> thanks for having me on and help you rebuild amazon can't necessarily do that the reservoirs are experiencing in these instances. >> i'm afraid we have to leave it there thanks so much for joining us. really unprus dented rainfall in stacey and ryan. the entire city of houston sd fl to come, we'll head to the they have been evaluated as two naaqor a check on some of today's biggest movers of the six most dangerous we're back in a couple of minutes. reservoirs in the country and there's extreme caution being used about how they are operated and frankly they are overwhelmed ♪ and they ever having to release
(bell rings) more water than they really want to, but at this stage there's ♪ water going over spillways and around the end of the dams and also a controlled release is coming out through the gate structures, and -- and, you know, you get -- the best you (screeching tires) can do in a bad situation. >> but the fact that this is (bell rings) still controlled i think was your word there, professor, "meet the press" that disaster perhaps within these particular dams and reservoir cases is avoided for now. >> yes this appears to be the case, and i will tell you that those are the best two flood control products we've ever built in the houston reg o. they are simply overwhelmed by the amount of rainfall which is -- i'm not sure any city in the united states, certainly no coastal city, has the infrastructure to handle -- i mean, i've had 39 inches of rain at my house had i mean, that's an incredible amount in basically three and a half days. >> as you say, professor, an incredible amount, but was some of this avoidable?
could there have been better reservoirs built pore flood relief systems, or is just simply an unprecedented storm and impossible to deal with? >> i think it's more along the lines of the latter. sure, there's a lot of things that could have been done differently but i don't think -- i mean, we're research remembers, and we come up with scenarios about future storms, and we have come up with scenarios, for example, involving storm surge and we have been basically criticized for being fear mongerers for overstating risk, and had we come up a model that predicted this level of rainfall, we would have been absolutely derided as just totally unreasonable and out of control, and so that's the problem. we're dealing with events that no one can perceive and certainly not the politicians. >> well, we're also dealing with scarce resources, so, you know, in an era of underfunded pensions and stretched budgets and limited capacity at the national level for providing
this funding, what options are left for cities even like houston who might recognize there's a risk there if they were to experience a flood like this, but frankly it's hard to corral the political capital and economic capital toll do anything about it? these are huge projects, incredibly expensive ones, right? >> well, they are expensive, but i think we need -- i think we have the opportunity to be creative there are market approaches that involve, for example, for ranchers to restore native prairie. they store an amazing amount of water and if we can keep the prairies natural and keep them from being developed and maybe put a series of small levees that run around the western periphery of town we could hold a tremendous amount of water in those solutions. markets enjoyed a huge we cannot engineer our tway rebound about half an hour after through a 39-inch rainfall the open was the bottom of the we're going to have to have a markets. we were down about 150 points before the open on the dow did, and we've recovered now to be up combination of green solutions some -- about 56 points, a and structural engineered solutions and we've just never quarter of a percent or so at been open as a community to the top is united technologies,
of course, getting closer to serious green solutions to go along with it, which means that deal for rockwell and keeping a lot of land natural. boeing is up alongside of that and in terms of the dow names, >> it's hard especially with the nike at the bottom growth that you've seen. of course, we discuss that had i'm sure those discussionses earlier and the banks are will take on a new urgency once suffering. jpmorgan is down around 0.6% the relief effort is over. >> we hope to speak with you today. many of the stocks are covered again, professor, as this all and yields are still relatively low soan a bksre hurting plays out. you bet you. up next, we're coming right back >> jim blackburn from rice university. >> we have a news alert on uber. deirdre bosa has that story for with the closing countdown us. >> reporter: dara khosrowshahi who was selected to be the next ceo, we have a news alert from dow jones. he says he plans to accept uber's ceo job and that expedia is putting a succession plan into place, that also khosrowshahi is working out employment details with uber i spoke to someone familiar with the situation earlier today who told me that uber employees have been told, but it's not yet been officially announced at the company. uber having an all hands meeting
later this afternoon uncertain whether it will be announced now but dara khosrowshahi saying he plans to accept the uber ceo role guys. >> yes, i like how they describe the relationship between travis kalanick and dara as quote, unquote budding, saying that there's mutual respect there. >> but not buddies yet. >> a budding bromance, haven't gotten the buddy-buddy level yet. >> he'll have his work cut out for him and certainly managing travis and whatever capacity this is is going to be one of his major tasks. >> for sure. sounds like he'll be played handsomely to do it. deirdre bosa, thanks so much. >> 35 minutes to go until the close. look at this the dow is now up 63 points. it's a nearly 200-point swing from the lows. in fact, more than that now if you go all the way back to a north korea launched its missile last night the reaction in futures. s&p up four and nasdaq up 27 and
best buy started out strong and the opposite is the happening to it having a very down day after the shares were down nearly 12% now. we'll tell you what the management said that sent the stock plummeting >> and any moment president trump due to day rife in the texas capital of austin after visiting the devastated texas coast rleaier today. we'll have any comment on what ♪ he saw coming up finish line cut ♪ (bell rings) ♪ (screeching tires) (bell rings)
welcome back toe "closing bell." the nasdaq is on pace for its second monthly drop in three months and booms has the big movers for us. >> yeah, it's interesting. you've got the russell 2000 today, small caps are actually up for the fourth straight day in a row, but it's been a rough month for small caps they are on pace for the worst performance since last october led by real estate and financials to the downside on the upside apple. and that and to see the unveiling of an iphone eight most of the phang names are off this month amazon down three pounds and a couple of stocks today of note that are riding high juno continuing to ride potential speculation that it, too, will be acquired like rival kite this is one of the immunotherapy players and the advisory board
splitting in two and services business for 1.3 billion. back over to you. >> bertha, thanks very much for that as for today's performance the nasdaq is up 0.3% and the dow is up 0.25% and, of course, down as much as 154 point in the pre-market and 55 points and the s&p up 0.1%, a look at the sector performance and foongs down 0.5 didn't really enjoy much of the intraday bounce back energy is negative and not too negative unlike yesterday in terms of the good performance industrials the best utx after its forecast for the current announcing details of that rockwell deal very quickly or fiscal year. under armour heading atoday aftt so, a look at the dollar index develop sharply and recovered from 10:00 a.m dom chu joins us >> four stocks have driven all the gains, boeing, united technologies and i want to say united health and apple, the for
you that have really made up the bulk-of-the-gains so far today if you look at today's trading growth stocks are outperforming value stocks take a look at the growth etf versus the value etf the value etf has top holdings like alphabet, facebook, amazon, those types of stocks. you look at the value side of things you mention the jpmorgans, the berkshires and some of the financials, bank of america, that sort of thing as we talk about where the dip buying is happening. it is in some of the value stocks and more like a we saw apple shares hit the record high today. >> only one member of the dow is down more than 1% and that's nike in terms of a sort of basket of stocks down half a percent or so. banks, goldman sachs, jpmorgan and it's interesting because we got a big intraday bounceback and yields, even though they fell below 2.1, that impact is falling overall, net-et? what's hurting the banks. >> let's put it the in perspective here when we talk about drops today,
on basis it was half a percent not like there was a wholesale selloff the banks and as a relative performer banks not ones you wanted to be in on, and the market as a whole. really the big takeaway. the market as a hole is up today. led by the nasdaq. >> as are the highs right now. >> 0.3%. 60 points higher huge, huge intraday turnaround for the market there we go. we have the bell, been run by project explorer at the nyse and quality systems at the nasdaq. that's it for the first half of "closing bell. kelly's got the second >> thanks. welcome to "closing bell," everyone i'm kelly evans. quite a day on wall street the dow up 57% on the bell, a remarkable turnaround from the lows will. i remember going back to last night when north korea launched missiles over japan. futures down 150 points for the dow and that's a 200-point swing
and enough to put us in the green after losses across asia and europe during those trading are sessions the s&p 500, small gain. by the way, the dow up a quarter of 1% and the s&p up a tenth two points there and the russell 2000 adding about a point and a half for its part we veal more on what's moving these averages, and some of the moves that we've seen as well in the bond markets big declines in the yield on that benchmark ten-year treasury declines in the dollar as well though it looks like it's regained that ground and then some trump will be touching down in austin, texas, after visiting corpus christi earlier today he's set to tour the emergency operations center there and he and texas governor greg abbott will make remarks after that, and we'll bring those to you as soon as we can joining us on set is michael santoli, cnbc markets commentator and liz ann sanders, investment manager at charles
schwab michael, a huge turnaround in the market today against a backdrop of incredible uncertainty about hurricane harvey and uncertainty about north korea. does it go back to the strong consumer confidence numbers. >> i think you had the recovery gathering around 10:00 a.m. and very much in character with how the market has behaved all year where it has kind of a little bit of a sense of let's really wait for genuinely bad news to happen, if it's going to happen and see if there's real selling that comes out after it. if not, you can rotate and grind your way higher. that's basically what happened here today you know, the dollar bourngs a lot of these internal measures got strenchingsd and i think that's important to keep in mind couldn't even get the market at the open today and down to the august lows in the s&p 500 so i feel as if quiet week the market has been consolidating and back on its he's not as if we're shocked by bad headlines in a market and
skis aggressively greeting i do think all that have came into play. >> liz ann, i'm starting to wonder you look at 2.1, is less than 2.1% on the ten-year you know, we like to look at that as kind of a proxy for growth, but at the same time you have consumer confidence to the second highest since today the job's plentiful gauge, best since 2001 and the home price index at 98% of where it was way back at the peaks during the last boom and, you know, the third quarter gdp numbers look like it would be over 3% are things majorly out of whack here >> i don't think so. frankly all of the jobs data and the consumer confidence numbers because those are the two things most highly correlated very low correlation would be the things like geopolitics, concerns that we've seen out of north korea and even just the partisan conflict. there's a partisan conflict index that the fed puts out which doesn't have the a
positive correlation or inverse correlation to the stock market so i think some of those basics of jobs that you're seeing in some of those statistics is precisely what is tied to consumer confidence. >> and if we look at the dow which was up 56 points, united technology, maikol, leading the way, looking towards maybe completing this deal for rockwell, so, you know, nike was one of the decliners today and back of the finish line and company specific stuff, too. >> there was some of that it, and actually what was interesting most of the day, especially in the morning, is the big-tech stocks where people went to kind of stash money and the broader macro. >> it's not done well lately. >> they almost act as we've said before as the bond proxies, and, look, the market has been trading the way it was back in may. high liquidity and low yields and let's go after the growth
stocks. >> defense spending is the new qe and what they mean by that is obviously the u.s. has to ratchet up its capabilities whether it's missile defense systems or just arming itself otherwise. does that mean it's going to be stimulative for the u.s., and how does that clash with some of the other things in washington around the debt ceiling and the government hutdown >> not only increase in defense spending, but obviously the rebuilding efforts that will kick in in texas after things settle here and i'm not suggesting anybody should be focusing on that yet, but already you've seen a turn in economic surprises, the economic surprise index hit its inflexion point and has been moving back up and now you have the added a stimulus likely to come on the defense side and rebuilding at least in the texas economy which is obviously a large economy so that bodes well, maybe not in the immediate near term. if you look at hurricane katrina, it's a proxy for what we're likely to see. >> yeah. >> you could see a dip in economic growth and an increase in unemployment claims and then a rebuilding effort which is
more of a late 2017, early 2018 story, but i think they are somewhat unquestionly potstive for the economy. >> stay right there, everybody let get to our contessa brewer who is on the ground in houston, texas, just east of it actually with the late on the flooding out there. contersa >> we're rights here in east houston with a convoy of antique military vehicles and we've just stopped in a flooded neighborhood we got flagged down by a guy in the intersection who said, hey, my uncle is stuck over here in the neighborhood i don't know how deep the water is, but i'll tell you, it's deep enough that some of the vehicles in this convoy have had to stop. we've had to climb on a heard. alex, you got it we're on the move now to go see if the guy's uncle is okay and see if he need a rescue and the vehicle that we're in is a high-profile vehicle meaning, here's a bus, as a comparison we're so much taller than the bus, is and, in fact, i
had to climb a ladder to get up on this so we're about as high as you can get you can see the gas station flooded and see the guy on the boat what's strange here is that it looks like the lights are on the power is still on in this on horseback and trucks subamericaned in water and we saw a lady walking by with a broom trying to find her way in depths whether it was safe to walk through and so many pedestrians getting through and you drive by and say are you okay, yeah, we've fine a lot of people in this neighborhood even though their houses are under water, and this is one of the things that houston officials were concerned about with with the dams overbreaching. overtopping. look at this it's up to this guy's niece right here they told residents if you had
stayed behind you have to get out now and clearly that's a message that is just being ignored in a lot of these neighborhoods. >> i'm seeing this way there's a vehicle. we're sort of stuck in this military vehicle just shooting out the back my photographer is doing his fwoest stay safe while getting some of these pictures. >> contessa, you're on the east side of the city i want to remind everybody about an hour ago, a harris county official said houston reservoirs to the west of the city have flooded over 2,000 homes so just wondering if that's adding more water where you are, if this is just what we're still seeing from the storm >> you know, so it's hard for me toe say that, kelly, i know a lot of neighborhoods were worried about seeing more flooding on the west side of the city so it's hard to say whether they are getting more or less flood will go because this is the first time i've been in this
neighborhood, but i'll tell you this there are some intersections where you get, and you can probably tell from the video right here there's some areas that you can still be relatively dwri the barbecue hamburger place and over on this side, you know, that it's gone through, it's up above their wheel. you see the red car submerged right here, alex, if you can grab it. you know, clearly that was a car that got abandoned, because somebody thought it wasn't safe to continue in and the car probably stalled out and all up and down these streets there are homes. hi as you can see the tractor has people on the front. everybody okay how are you guys doing buddy, how you doing >> yeah. look at the dog. can you see this dog, two dogs,
in crates here they are in aspca crates, but obviously it's a miserable experience i'm a dog lover so i care about those kind of things >> don't fall off the back contessa. >> no, i'm holding on. >> making her way through houston. appreciate it very much. check in with you shortly. texas floods wreaking havoc down there and in the coastal areas right now. exxon announcing today it's shutting it beaumont refinery and others have cut production because of flooding. let's bring in the president of lippau associates. you're a houston guy what are you doing here at post nine >> i can't get back to houston trying to get back since sunday but it looks like friday. >> they haven't opened the airlines. >> southwest airlines will tell me whether i'm flying or not. >> oh, man
meantime, glad you're here and dry. what's happening with the gas line price early estimates, 15 to 25 cents on the gallon more or less nationwide what can you tell us right now >> the consumer has seen a four sent a gallon rise and if look at the major wholesale markets, those markets are well up over 20 cents a gallon and that's going to be passed through the consumer >> even up in chicago. >> even up in chicago because gulf coast refiners have been supplying gasoline and diesel fuel into the midwest. some of the pipelines are now shut down because there's no product in hues top to pump. >> what are we going to be able to know if this is persist you have to get in there and hand assess how much capacity can what bam in when. >> if we first look at corpus christi, it will still be another couple of weeks for those refineries to get back online even though they didn't sustain major wind damage. there is some utility damage if the houston area we're not
going to know until the rain stops and we can assess whether we'll have are a flooding event or not right now most of the refineries have no flooding damage, and if that's the case, it will take them about two to three weeks to get back online. >> wow. >> and now we're moving over to the beaumont and port arthur area, you're seeing the refineries shut down or run at minimum operating rates, and over the weekend we're going to see the same thing happen to lake charles so we're really not going to have a good assessment of this really until the weekend, early next week as far as flooding damage. >> quick question and then i'll circle back to the gasoline price. the utility index, xlu, at an all-time high. can you speculate any reason why that might be the case is it related to harvey or just the drop in the tenure >> it could be due to what's going on in the bond market and things like that. >> yeah. >> and people looking for yield. >> that would be my expectation. i mean, that's exactly how they have been treating it. i don't think it's about compass
if i. >> that capacity might have been hurt and going back to the gasoline price, best case scenario, it could be a couple weeks to see how to get the refiners back on line and we're going into a calmer part of the year if you're in chicago and see prices of 20 cents on the gallon, is that going to be a fleeing the thing. >> it will take a couple of weeks to come back down. we're all connected, these three markets are connected and now we're seeing gasoline leave new york harbor to be to the southeast market like florida because they were supplied to the gulf coast so, you know, this will take some time in the best case refiners will be back up in two to three weeks and in the worst case if they take on some flooding, you know, we could be looking at six and eight weeks. >> wow we're happy for to you spend time with us. >> thanks for having me. >> and thanks for your insight very much. andy lipow. harvey is affecting trains and truck companies and supply lines in texas and beyond. morgan brennan is back at headquarters with more on the ballout. >> reporter: hey, kelly. given the flooding and need for
safety freight movement in the gulf has really ground to it a stand still. not surprising kansas city southern is still suspended after a force major was enacted on friday and freezing shipments from mexico berkshire hathaway's bnsf and analysts think volumes will remain impacted because not the networks will take time to get up and running and so much chemical refining and it has been and will be disrupted trucking bouncing back and one of the biggest factors currently affecting trucking is actually rising fuel prices a gallon of diesel is 1 cents higher than it was a week ago on expectations that the supply will be disrupted. that will start to show up in truck rates which are widely expected to rise as the rebuilding effort will boost demands for trucks that are
carding supplies into texas. that's the reason you've seen trucks of warner enterprises and schneider national and nyx transportation and swift international, all rising are and they have closed up higher today as well. also land star and small cap daseke, small flatbed trucks, necessary to get certain construction materials and equipment into the region. those stocks higher today as well kelly in. >> morgan, thank you morgan brennan north korea sending a missile over japan, the other big news of the day it's heightening tensions and as north korea's nuclear arsenal grows, so does the potential for accidents and miscalculations. he joins us next to analyze the rrt situation on the korean peninsula when we come back. ♪
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it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. . welcome back last night's missile launched by north korea will likely intensify u.s. pressure on china. that's north korea's most important trading partner and
seema mode joins us with a look at that complex relationship seema. >> reporter: complex it is the latest provocation from north korea has put the attention back on china, its biggest trading partner and most important ally despite sanctions, the chinese government data shows trade between the two nations increases 37% during the first three months of this year. china provides nock, most of its food and energy supplies in total 990% of north korea's total trade volume, that according to research research this morning's missile test puts more pressure on china to seize relations with china the hope is cut considering off its economic lifeline and leader kim jong-un will have to cut nuclear missiles discontinuing all trade with north korea could lead to the fall of the north korea regime, the unification of the korean peninsula and, therefore, a stronger more dominant asian competitor to china. destabilizing the region could also result in a larger number of refugees entering china that's why the government,
beijing, has prioritized a more passive approach to north korea. in the meantime, the trump administration is expected to put more pressure on china to act, but no material change is expected in the near term, especially ahead of china's fall party congress where leadership changes are expected. >> kell? >> seema, thank you very much. we'll speak to john merrill about this in just up moment but first back to contessa with remarkable pictures. >> we're actually on a bridge and the water is up to a guardrail and look where it is in comparison to the power lines. we've seen first responders heading down the river presumably to check to see if people are stuck inside their home this is an area -- alex, can you pull up and over the vehicles where we can see some of the submerged -- the cars have just been abandoned in the middle of the road because the water is so high, and -- and it's coming up over their rims. now, again, we're in
high-profile vehicles. a medical clinic is over on this side where you can see that the water has covered the parking lot. i'm just checking on the other side to see what we can see. all right. it looks like we've got some maybe national guard first responders, and i see crews of -- it looks like to me swift water rescue they have got helmets, life jackets. they are all coordinated and ready to go down here. >> kelly, a developing situation and the rain has begun to pick up once more and, again what, you're seeing is the bridge completely overwhelmed by the waterway below and turning this entire neighborhood on this side into a lake. swift water rescue, are you guys swift water rescue yeah and another racht here ready to
go on this side. we're seeing a fishing boat. they are trying to get it up on to a boat trailer it looks like. >> kelly, you know, we're just watching these developments as i'm seeing, it too. >> contessa -- >> kelly, hold on one second one second i've just got to show you on the other side of the vehicle, we're seeing a coordinated response here clearly first responders getting ready to head out. is everybody okay? no answer there. >> okay. kelly, go ahead. >> you know, now we're seeing more activity, but i was just going to say as you started to move through this area nobody was around perhaps it was just that stretch and compared with all the activity downtown or some of the other water logged parts that we've seen, maybe people are over here where the party is a little less deep trying to go out to the areas where there didn't seem like there was a
soul in sight. >> i'm really surprised by how much of a coordinated response we're seeing and how many water rescue teams that we're seeing this one is from williamson county i'm seeing the side of their boats up above and it looks like -- it looks like -- okay they are going to let us down. they are going to let us down so that we can go see what we're encountering here. on this side, i'm seeing a dump truck. industrial dump truck. look, do you see over here in the citgo station right over here again, a high-profile vehicle. it looks like these guys are official first responders, police department, but i see a young person on there. it looks like a child, and -- kelly, i mean -- >> are they trying to rescue
somebody, contessa >> i don't see anybody for me to ask. in order for me to get down from here and approach someone i need a heard, but i'm seeing another big industrial vehicle >> yes, sir. >> they are going to pull us through the intersection and pull up the ladder so that we can get out and we can ask people why there's such a big coordinated response here for swift water rescue teams because i'm seeing them all around me. alex, on this side, on the right-hand side, on the right-hand side we're seeing a big dump truck can you poke ahead >> and now the guys that i'm with are heading in to do rescues. kelly. >> the guys that you're with in the humvee >> yeah. the guys in the humvee so, again, that's why they have come out we sort of hopped hey long for the ride these guys have been out in the neighborhoods.
again, they are not military they are volunteers for the u.s. armed services museum in houston. they have all these retired vehicles some of them considered antiques at this point, and they have been out actually regulars cueing people. there you see another one. fema boats in the back and the swift water rescue teams in the back of the truck. the taco bell over here has its doors taped up and it looks like lots of people are filtering nearby, watching all the action. >> i'm amazed there's a sedan behind you just pulling in there. >> yeah. you can see the long line of official vehicles right, all high-profile vehicles. look on this, this one police vehicle straight ahead and how high the water is here, so even official vehicles, suv type vehicles have to pay very close attention to where the water comes up on their wheels and if it gets past the wheels, it indicates a real danger for
stalling >> wow >> contessa, thank you for joining us along has you move through the region we'll get back to you shortly. contessa brewer there, and as we heard from the tragedy about the police official in houston earlier, he droupd in his car in the middle of the rescue efforts so the water level extremely serious. >> as i mention had had, we do have john merrill standing by, the former chief of the northeast division of the bureau of intelligence and research at the u.s. department of state you know, appreciate you joining us obviously want to get back to this issue here as well. how serious is it that north korea has launched rockets over japan, apparently for only third time ever? >> it's pretty serious they are growing increasingly frustrated with u.s. policy which is based entirely on sanctions, and we employ sanctions, and they employ missiles
if you look at that map that you just showed on screen, you can see that that missile shot was very carefully calibrated to fly just south of the northern most japanese island of hokkaido, so as much at sea as it is possible to get for a country like north korea that's helped in on all sides they want dialogue >> mr. merrill, isn't part of the point of the u.s. sanctions to have north korea be frustrated i mean, what's the problem with the way that this is developing if in fact as today the white house response to this launch of a missile was somewhat calibrated and measured and not really, you know, threatening fire and fur >> i appreciate that i especially appreciate the remarks of mr. tillerson about the need to re-engage diplomatically people sometimes forget that sanctions carry to an extreme can get us into real trouble maybe they work if the other
side shares our values and our perception of history, but remember what happened with the japanese in the early 1940s. we had an oil and scrap metal embargo, and when they felt that their economy was being choked, they responded with a military attack on pearl harbor so that's the danger with sanctions. they can be carried too far. >> yeah, and that's -- if they work john, thank you for joining us sorry we had to keep it like this, but obviously this issue isn't going away today thank you again. >> thanks for having me on. >> that's john merrill. >> let's get to sue herera with the cnbc news update what a day. >> certainly has been, kelly more to tell you about in terms of the terrible weather down south. louisiana governor john bel edwards holding a briefing in anticipation of tropical storm harvey making landfall in the southwest part that have state tomorrow morning >> we do anticipate over the
next 24 hours the southwest louisiana will see an additional 10 to 24 inches of rain, and this is in concert with a storm surge that remains in the one to two feet above ground level which will prevent the rivers from draining. >> meantime, houston rockets owner leslie alexander has more than doubled the amount of money that he says he will donate to the relief efforts on sunday he pledged $4 million. today he raised that to 10 million. a federal judge in new york has dismissed sarah palin's defamation lawsuit against the "new york times. she had sued the newspaper earlier this summer over an editorial that drew a link between a palin political action committee advertisement and a 2011 shooting in arizona the "times" owned up to its error but asserted that the first amendment protects its writers. you're up to date. that's the news update kelly, back downtown to you. >> all right thank you very much. sue. >> you got it.
>> now, apple announcing new strides into augmented reality at an event last night josh lipton joins us now with more on its efforts. josh. >> that's right, kelly remember back in june at its developer store apple unveiled its ar kit, a set of tools to integrate augmented reality into their apps and now developers are taking the wraps off what they have been work on including a new game called the walking dead, our world, which allows players to face the apocalypse in their park or maybe in their living rooms and shows ar represents the next revolution in gaming, even more so he says than virtual reality >> it's something that we can do already on the devices that people own, so you don't have to go and buy a huge head set, for example, or anything to enjoy an immersive experience. >> simon gardner of climax studio has created another a.r.
game called arise and he thinks it also represents a bold new chapter in gaming in part he says it can be very special social giving players the ability to immerse themselves-ins games alongside friends and family no. surprise that apple ceo tim cook is excited about an augmented reality. a number of people use a.r. will jump from 40 million this year to more than 54 million by 2019, accord willing to e-marketers and the hope is that these experiences give fans another reason to buy apple's new fines. they will be available to consumers when ios 11 launches back in the fall. >> still excited to see what they have in store. thousand of new and used automobiles under water because of harvey's floods ahead, a look at the damage to the houston car market when "closing bell" comes right back. ? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again.
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welcome back a remarkable turnaround on wall street the dow down 150 points pre-market turning around to close higher by 57 paced by united technology among other stocks the s&p up 2 and russell 1.5 and the nasdaq the best performer with an 18-point gain. harvey still hammering houston more than 240 miles away from houston city center dallas has opened three shelters now. one of which can house 5,000 evacuees joining us now is dallas mayor mike rawlings. mr. mayor, thanks for phoning in. >> thank you for being
interested in this important issue. >> well, hey you guys, too how full is the kay bailey hutchison center today >> it's not yet. actually we've got four opened up now we had three centers we they had about 200 apiece and kay bailey hutchison center has the potential for 5,000 and we opened that up this morning and we've got less than 100 thus far. folks have not started to come in from houston yet. >> that's what i was going to ask. how many houstonians, if you will, have made their way to your region. do you have any rough sense of how many people have left the region and come to your area >> we have the folks that are currently here i go out there hand talk to them and probably one out of three are from houston themselves. a lot from southern dallas, and excuse me, southern texas in the
south coast, and -- and so i -- you know, hopefully houston is going to be able to weather the storm with the evacuees right there in their place and i've been talking to mayor turner and he's doing a good job but we'll be there for overflow. we've been asked to prepare for the worst and hope for the best, and as i said, hopefully we'll have much less than 5,000. >> mayor, mike santoli here. i wonder what other kind of coordination is going on with houston, with other municipalities and maybe what other resources are you being asked for or maybe getting ready? >> well, first of all, we sent dozens and dozens of firefighters and water rescue people down to help houston, and we're very proud of what they have been doing along with a lot of other resources second is we've got a lot of folks that had business down there, and so the private sector has reached out to their various
buses, and i've heard of dozens and dozens of those sort of things i just saw the major gift and what we're here to do is try to help to make them come and give us the medical attention and give the medical health facilities, particularly a potential long-term housing if we need it and we have the schools open that have kids there and they are still in the rescue operation and we're going to be in the relief operation if and when it's needed finally, mayor, does this make you think twice about your city's own preparedness for a flood? >> we always look at that. we're in a little bit different situation from a flood standpoint we have probably the potentiality for more tornadoes, but -- but when this happens you really appreciate your neighbors. the corps of engineer is a very important partner, and we've got a big flood area that we look at all the time and make sure that
those levees are sound and that we'll ever get up to this point. this is just a major catastrophe, an act of god that i don't think anybody could see these numbers and hopefully it will never happen here in north texas, but we're here to help out, and we just send our best to our friends down there. >> absolutely. mayor, thanks for joining us this afternoon, taking the time-out we appreciate it. >> thank you >> that's mayor mike rawlings of dallas. >> let's send it over to morgan brennan for a news alert. >> warren buffett's berkshire hathaway is officially exercising warrants in bank of america to allow berkshire to kwir shares at $7 a share each or over $5 billion b of a is currently trading 23.5 a share meaning on paper this is an $11.5 billion gain.
this will make berkshire the bank's biggest common shareholder by way of background you'll recall this investment was made in 2011 as a vote of confidence in the bank remember, bank of america, there had been some capital concern surrounding the bank at that time the reason buffet is exercising those warrants now, the last stress test for the bank, the dividend rose above berkshire's threshold, and lastly i'll leave it with this this is a chart bank of america since buffet's berkshire made its initial investment in august of 2011. those shares are up about 238% back over to you >> wow thank you, morgan, and, michael, should they file to become a bank holding company at this point, almost at 10% on wells >> exactly. >> and i'm sure at that point with bank of america. >> not quite but up there, and obviously -- not that huge in the scheme of berkshire hathaway's market value. this was the straight math essentially a higher yield given
the increase in the common shares of b of a and on the other hand you accepting the downsize risk. >> that's a great point. >> it is a vote confidence on that level. >> all right and we see the reaction in bank of america. after the flooding, how will houston rebuild? we'll speak with real estate mow mogul don peebles when we come back
welcome back let's get straight back to our contessa brewer who is combing through flooded huson, texas contessa >> reporter: okay. kelly what, i'm seeing right now, sorry, as you know, the rain has picked up again so we're getting spots on the lens. we're out here where we were seeing those swift water rescue teams. you can see the guys in the fema boats coming by, so apparently, i just asked them. there are people up and down this particular waterway that need to be rescued look at over here. we're just seeing a flat-bottom boat coming in, a woman and her dog, and it looks like, you know, they are just getting back to where the ground is not even dry but at least you can walk and i've just been talking about dan higgins who has a fishing
boat where are you from >> came down from dallas, texas. heard people needed help and thought we'd come down. >> reporter: what are you seeing >> a lot of people not physically able to get through the water. some places the water does not look deep and if you're not able to physically trudge through it people need help you think it's shallow and the next thing you know you sink out of sight. >> reporter: if you see people who need help, where are you taking them? >> get them out of the water and on to dry ground where another group of people might be taking them to shelt sneers this area right here, people are huddled under the gas station and taco bell with boats out in front are you saying you drop them here >> we drop them here and another organization trying to find them shelter will pick them up. >> reporter: what's your sense of why they needed so much swift water rescue teams right here? are there that many people going back up and for the on the waterway that need that? >> seeing a lot of that and when a place has cleared out they get
a call saying there's another neighborhood where there's another neighborhood and they will divert all the activity there. >> reporter: how much gas do you have to keep your boat running in. >> we've got plenty. the boat is not about with the gas because you're not trying to go fast, a little bit of gas goes a long ways. >> reporter: guys, i'll accepted it back to you. >> we've got to go to the president. great stuff all day and contessa brewer speaking with people in houston. here's the president touring the emergency operation center in austin, texas and getting a briefing from state leadership that includes governor greg abbott this all took place a couple of moments ago. of course, you can see they are having some issues with the tape, michael. i was just struck by dlsh's the guy from dallas who saw people would have trouble and i took my boat and went down. >> it's amazing. so many people we saw it coming i think for enough days that are you had a sense there would be a gathering of preparation andit is
amazing. the statistics before, in houston, 1,000 people overnight were arrested by authorities and the number of people dispersed. >> let's see if we can listen in for a moment that contessa is doing. >> clearly scared. what do you do with her? >> reporter: we're about to find out and go back and look. >> reporter: how many people are out there? >> they have no idea we keep getting calls and text messages from other areas begging for help. >> reporter: just describe the situation that you found her in. >> she was the only thing that was showing was the roof of the car. she was just sitting there nobody around. >> reporter: so she had been abandoned with the car. >> that's what it looks like -- she could have swam up there. >> reporter: were the windows down >> it was too high to tell she's sweet though. >> she is. i've seen so many animals, so many dogs around here, and there's no way of telling really whether they are strays or whether they are someone's pet who they left in a hire and the pet had to fend for itself but
that's sure to be an issue for houston in the days to some. aspca being overwhelmed with pets that are rescued and recovered. >> i know it's silly the pets are not as important as the people but it's just hard to see. cop tessa, we appreciate youic bringing us those pictures sorry, michael, losing my composure. >> that's what brings it home in terms of the magnitude of it and just how uproad everybody is. >> we should talk to don peebles for a moment what are you guys working on from your point of view when it comes to houston >> look, we're as developers certainly going to look at houston. we develop heavily in miami and in 2004, for example, mime was hit with four straight hurricanes starting in the middle of august in a six-week period and in the following year hurricane katrina and wilma. the communities change after these storms after andrew hit south florida in 1992, the population in south
florida actually grew by a third, so these communities reinvent themselves. new orleans reinvented itself and i think huestouston will reinvent itself and the president is a builder and i think he can help. >> do you think real estate developers writ large are learning from what's happened in houston, new orleans and new york city? >> oh, yeah in, miami as well. the way buildings are built today. south florida got ahead of it after andrew and most buildings, the buildings that we build are built to withstand an impact of a category 4 hurricane they are also elevated, so that they are -- that there are knockout walls, for example, that will let the water and floods run through them and putting the infrastructure and mechanical systems and electrical systems on the roof as opposed in new york city that was a big problem with sandy below ground most of the developers didn't want to use up that profitable space with mechanicals and
electric cams so that were underground and they were all, you know, damaged by the floods from sandy. >> when you talk about reinventing a city, does it also involve just rethinking exactly how you're laying things how the? criticism of houston hand how it has sprawled they have paved over the bayous and swamps in thearea that use to be buffers to water how much of that will have to happen in the years to come? >> i think a lot of people will leave like in new orleans, in fact, many went to houston, for example, and they never went back to their homes, so the population changes a bit, but what's going to happen is these natural disasters that are becoming more and more frequent are compelling government authorities to impose the appropriate restrictions on where development takes place in the high-risk areas because the economic costs are too high. >> appreciate you telling us a little bit about that. see what people do let's get to the president who is in austin. >> from your standpoint nim and
the whole group, steve when i just met, the job that they have done, number one they like each other, very important and number two, they respect each other and the job that all of these groups have done getting along is -- in terms of coordination has been real reincredible and everyone is talking about it. the sad thing is that this is long term. nobody has ever seen anything this long and nobody has seen that much water in particular. the wind was pretty horrific bue four right here, we want to appreciate for texas, it's going to be, again, senator, thank you very much
for the damage and in terms of fehr osty with this harvey, sounds like such an innocent name, right, but it's not innocent it's not innocent. i also want to thank my people, ben carson is here from and linda from small business and i say this is not small business this is big business when you add it all up, you're going b to be fwifing away many, many millions of dollars to help people out and tom price as you know, dr. tom price, you have your people in the field, tom. in fact, you may say a couple of words then i'll ask glenda and ben and i think we get on to them and brock and everybody >> tom >> sure, thank you, mr. president. this is an historic proportion
storm and flood. the challenge that we have obviously is to get the resources to the individuals that are stranded right now. make certain that tevacuees hav a place to go. our responsibilities are medical and veterinary and mortuary. there will be all of the above challenge that we have in the long-term is that most individuals who suffer from these, suffer from not being able to get the medical care they need. >> that's the president meeting in austin with disaster recovery officials. they continue to oversee the recovery in houston. eamon? >> you saw tom price there, the secretary of health and human services what they're talking about is really the next steps already looking ahead to the health impact of what we're seeing. we have that much water in the streets, as you saw with contessa contessa's report, you're going to have situations where they don't get the health care they need and it spreads disease and dangerous situations in terms of food contamination
then the president talking about congressional relief making a joke there saying we're going to be working with these characters and pointing to the members of congress who were there in the room saying they're going to get that hurricane harvey relief bill moving unon capitol hill, so that's something we'll be looking forward to here in washington, d.c. >> thank you very much eamon javers auto sales are set to be hit hard by the hurricane, there could be much fwraeter iacin diert ctormpt we'll have the details right after this e, other than making e move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade.
auto nation are trading lower. phil lebeau has more >> kelly, i've got a number that i think is going to surprise some people. think about this it is estimated that a half million vehicles, the vehicle that is you see on the street flooded with water up to the ceilings, sometimes, up over the hood, that they are going to be scrapped and as a result, what you are hearing from different people is that there's going to be a massive effort once the insurance companies move in, cut those checks and get people to go out and buy new vehicles, or useded vehicles, the interesting thing to keep in mind is that used vehicle prices right now, they're close to a record high, so in the near term, you're going to see tighter supply, especially in the houston market that could push those used pliss even higher. but there is also expected to be b a snap back in new vehicles sales. the bottom line is this when you look at some of theodis auto stocks
here's a good example. sonic automotive it gets 25% of sale s in texas it's going to go through some short-term pain, particularly in houston, then a rebound. that half million figure is stunning 250,000 approximately were scrapped after sandy so, a point of reference >> thank you very much a big number by the way, we also know it's a big number for the insurance company, so, we haven't talked so much about this today that the insurance angle is interesting and complex. on the homeowner's side, it's going to mostly fall on the government anything that's flood goes to government program exactly. when you talk about the commercial side, this is where the jpmorgan estimate comes in they think since they do cover flood, 10 to $20 billion worth of damage then you getinto the vehicle issue, they say that's actually where they're going to end up being more. >> exactly what that means is there's going
to be this accelerated replacement cycle coming, funded essentially by insurance company payouts for half a million people if that number is right. which is a pretty decent little bump i think that's what we're going to see in general. this pattern of activity then a pretty sharp snap back you weren't going to have these people go out and buy new cars >> auto nation this morning said sales in the houston are area were down to date. >> i was struck by that. didn't know if that was the energy economy that kind of backed off a little bit. >> yeah. we'll see if it turns around once they get those funds going. morgan >> hey, kelly, so defense contractor aeroenvironment spiking now. it's up almost 9% after reporting a narrower loss. revenue was better than expected more sales of unmanned aircraft
systems, drone, helping to power that beat and adding to an increase you'll recall they're the maker of the switchblade a small unmanned aircraft with gps powereded missile that could be a b possible beneficiary of more activity in afghanistan shares up 9% now on an earnings beat >> you have educated me on the switchblade. which is not the street fighting tool the shares are up 9%, michael. >> has been a strong group 32% in the last 12 months, so it's participated in that. you mentioned earlier that notion a bump in defense spending is going to be this sort of unrecognized sort of stimulus perhaps probably overstated. i don't think we're going to get into the trillions like we did with qe, but it's one of those things out there that it might be a little tail >> we're going to talk about the shutdown, those things have been cut. this could be a new source of
funds. >> right typically, it does not get caught up in the skirmishes. >> they were trying to cut money from fema to help fund kefs. that will be harder to make the case for now when there's such an urgent need >> there pretty much isn't going to be. so many things keep pointing in the direction of less fiscal discipline maybe they're goitolerate becaue of these needs >> someone better tell the ten-year at 2.1% today. as mentioned, the stock market did stage a turn around. up 57 on the dow thank you so much. that does it for "closing bell." "fast money" begins now. >> "fast money" starts now live from the nasdaq market site overlooking times square your traders are -- we start off with two events. the rain continues to fall in tekds and rescue and relief efforts are underway as the flooding gets worse. meantime, the world reacting to what japan is calling an