Transcripts For CNBC Closing Bell 20170901

Tuesday. If the phone is not already ringing by now were awaiting the final number for august auto sales, the automakers and dealerships are dealing, of course, with the fallout from Hurricane Harvey, and well bring those numbers to you as soon as we get them phil lebeau will be stepping in with that. Also some new areas in the stormridden areas Chemical Plant explosions and also smoke inhalation. Well talk to two chemical engineers about the Companies Running these plants, if they are doing enough coming up, but we start with White House National Economic Council director gary cohn joining us on squawk on the street earlier today. We discussed why he doesnt think the white house tax reform plan will ultimately mean tax cuts for the wealthy we can simplify and fet rid of a lot of deductions those deductions actually affect the high bracket players so when you actually simplify the tax returns, youre actually affecting the high taxpayers the most as you simplify the tax system, you actually reduce taxes on middle class income payers and average americans, and youre actually taxing the high end at a higher rate you know, the last time we had a repatriation deal, you remember that. Were you at goldman and i was covering, it of course, they brought the money back the beneficiaries were investors. I mean, it resulted in buybacks and higher dividends it the remains unclear to many, gary, that the beneficiary is real el going to be your middle class working person as the president has pointed out from cutting corporations taxes. I get that they may not move any longer, and certainly we do need more competition ive heard it from ceos of years. We all know, this but the idea that it really benefits the worker, how can you be so confident in is. How does it not benefit the worker who owns equity in the world today . The big pool of equity owners in the world today are the Pension Funds. They are the biggest public Pension Funds, the biggest owners of equities in the world. You can talk to the many guests you have on your show. Go talk to larry fink and fidelity and the big Asset Managers of the world, they will tell that the big owners are the big public pension phoenix suns, the policemen and firemen and teachers and Civil Servants who have their money in Pension Funds being managed in the u. S. Equity market. Yes, were helping americans by delivering returns back to them. Gary, i wanted to move on to another project that youre working on, the president s trade agenda is it true that the president calls you a globalist as has been reported and that hes demanding tariffs . Is that something that investors should worry about as you know, tariffs can be growthkilling. Look, the president and i have a very open and robust discussion on trade, on the economy, on economic growth, on jobs we have a very good relationship, and were always talking about ways to grow the u. S. Economy and put workers back to work and increase wages. Thats his mission thats my mission. No word on the tariffs. He didnt really answer your question, but i think the way he answered it he answered it. Open and robust discussion. Yeah. Exactly less talk about all this and get reaction to his comments on the economy and tax reform joining us today, cnbcs steve liesman, mark zandy, kirk hartman from Wells Capital manage cement with us today and keith bliss right here at the New York Post 1 and Steve Santelli from the cme in issue steve, on the issue of the tax reform it remains to be see what the tax package will look like but theres an amount of faith that goes into the plan when you hope it benefits the middle class it depends on what the corporations do with the tax cuts that they get, right . It sure does. Theres a lot of controversy around that. First of all, i i have to look into this a bit more, but i dont think Pension Funds are the big owners of equity i think by my calculation Pension Funds are about 20 of the households financial as lets in Pension Funds and thats one thing the other thing out there is this controversy, bill, or this debate call it over how much of the Corporate Tax is paid by the worker theres been some stuff that shows that 70 is paid by the worker of the Corporate Tax and other data, for example, from are the cbo saying its down by 30 . The administration is arguing by cutting the Corporate Tax they create room to raise wages all i can say is that is a matter of debate in the economics community. Mark zandi, where do you fall down on that debate, the cutting of Corporate Taxes as a way to incree increase, pension and stocks, and police, firemen and that it will trickle down into higher wages . If that what mr. Cohn talks about helping out the middle class. That wont get him that far. Only onehalf of american households own any stock at all and the vast majority of stock are owned by the top 10 in the income and Wealth Distribution so if the idea is cutting taxes for corporations is going to help the middle class, thats just not going to cut it now, if hes talking about cutting deductions, state and local income tax deductions, property tax deductions, whatever it may be and using that money to cut tax rates for middle income taxpayers, that will work, but, of course, we cant evaluate that until we see the details of what they are proposing and we have no details. And keith, i mean, you could argue that this benefits the corporations and, therefore, their stock prices should go up. Right. But were already at alltie highs. Thats right. Not to stay that it couldnt go higher if their profitability increases as a result of the tax breaks, but i wonder if the impact will be less than hoped for since were already at these record levels here. Thats an excellent question and given where we see the earnings picture Going Forward for the next 12 months i dont see a major catalyst that will push us to the alltime highs and break out so it has to be around tax reform and other policy changes that we may see in my opinion. What gary cohn is talking about is exactly that. The ownership stake that most americans have either through 401 k s or pension plans, if you do cut Corporate Tax rates, it does seam feasible to me that the stock priceses will go up because there will be more through the bottom line and thats the argument hes trying to make and the other argument about Corporate Tax reform specifically is if you drive down the rates does that in fact attract business from overseas entities to become more competitive and perhaps challenge for that labor market which has not seen wage growth thats the calculus that the white house is going through right now, but i do agree with mark and steve, you know news at 11 00 on that one. The economic models dont necessarily support exactly what the white house is saying, but i do think there will be a tax package put in place and they have to get agreement on it. Im wondering about the kirk, are you there one other point. Mark, go ahead. The key toll who benefits and who loses also depends on if the tax cut is paid for. If this tax cut is going to be deficit financed that means theres going to be higher Interest Rates and that will hurt middle income households because youll have to pay more a mortgage, auto loan and Consumer Finance loan so the key to all of this is how are you going to pay for it . Exactly what are you going to do in terms of paying for those lower tax rates . Yeah. What weve heard from the administration on that front i guess is its going to be paid for through our growth which may be a combination of dynamic scoring and depending on what they put their growth models in. I wanted to ask kirk about the market because this has been a pretty bullish week on wall street im looking at some of the returns for the groups, healthcare and technology both gaining more than 2 on the week do you think this has to do with the fact that tax reform is back front and center and investors are starting to price in the possibility again of repatriation and lower Corporate Taxes . Well, i think its a number of things. I think the fed is on hold and growth, as you know, has had a tremendous year, but to get back to your earlier point. The key about the tax cut package is how it affects the growth rate and at a 2 gdp rate, can it grow to 3 , maybe the thing thats going to really help workers and wages is if you get more growth in the underlying economy and all things being equal you would think you would with the tax cuts so thats also contributing to the positive market. Rick, im sure you have a comment to make on all this. I mean, it would be disingwenious of me to ask you about the currency markets or Interest Rates out there right now, but where do you stand on the issue of the tax reform and the impact it would have on the middle class which is what the administration is really trying to benefit here to a great degree. You know, if you tell an expectant mother youre going to have a baby she probably doesnt go home and think its going to happen in an hour, it takes some time theres no doubt that lowering taxes in any form is going to increase growth, and thats going to bring in more revenues, and the answer is pretty easy. We have a problem with productivity productivity what is that exactly output for unit of input what are a couple of the inputs, capital and labor. You lower the cost of capital and get more productivity and get more growth. As simple as that. Everyone can fight the little political fights thats the reality i thought the pension argument by mr. Cohn was pretty weak definitely because in the end, listen, no matter what you do, even the fed models, somebody mentioned models dont match up at the white house fed models didnt match up with anything that they expected as an outcome it generated a lot of dough. About did it end up, stock market most likely a lot of this will end up in the stock market through buybacks, through dividends, absolutely, but it also does in reality lower the cost of capital and that is an indirect effect so immediately they are not going to see their checks get bigger but over time they will, and i think thats where a little bit of fibbing comes into the equation. Right. So the fed helps workers, rick, but raising are the stock market. Well, i thought your argument was not that nobody is involved in the stock market. Im using your argument, rick. No, youre not. Youre not using my hargett. What the are you using my argument im telling you raise productivity, you raise all ships. Its just not going to end up in the first part of this equation in pockets. I agree with that. It ends up in other places. But there is a question about who youre helping and the distribution of this and thats really the issue listen, no government on the planet who is taking a tax dollar and doing anything better with it than the private sector. Like defend the country and build road and bridges and help people in emergencies like hurricanes governments have none done anything. Im talking financially, financially. Thats all right hold your ire. Were talking financial. Well just close it down. Its okay with me looks like the people in houston can take care of their own construction. Oh, yeah. Let me bring up you just wait, rick, are how much its going to cost the federal government for houston. The president has said that he will make a decision on daca or maybe this weekend. Mark, i want to start with you, the impact that those people, the d. R. E. A. M. Ers that would be impacted by the end of this program, the impact that the would have on the jobs market and gdp overall. Paul ryan was out today encouraging the president not to end the daca program one of his reasons was the impact it would have on gdp. Have you been able to quantify that at all . Well, my understand is that theres about a million close to a million young people, immigrants that benefit from daca, so if you eliminate daca and lets say those Million People have to leave the country, thats about a half a percent of the labor force, so, you know, that kind of gives you had a sense of the numbers its not cataclysmic in itself, but its pretty bad timing, particularly given that you have a 4. 4 Unemployment Rate which is headed lower. Businesses biggest problem and their problem Going Forward for the foreseeable future is going to be finding skilled workers, any kind of workers, you know. Right. And these kidsed are hard working. They are educated. They are skilled. Absolutely right. It would be a real shame to kick them out of the country. On that note, steve, we got from Silicon Valley urging the president not to the shut it down did say that the top 25 of fortune 500 companies, more than 70 of them did employ these people. Let me give you a recipe for a really stupid economic decision lets take people who are who weve educated in this country, spent our money to educate and they are either being educated or they are working, and lets throw them out of the country. You can see educational which accuse just to the younger group, and lets take a look at the cato institute, the conservative catos estimate of what it would cost economic costs in gdp terms, 215 billion and costs the government 600 billion. This is from cato, so its harder to find a dumber economic decision than to kick these people out of the country. As mark said, its half had a percent of the work force, a Million People daca eligible, 800,000 in the program seems like they are just the people we want to stay in this country and help us grow gdt and productivity. And pay taxes. We should actually do the opposite every immigrant thats in the country and graduates from and accredited American University should get the visa to stay. They are the best and the brightest on the planet, coming here for an education because we have the best universities in the world and then we send them back overseas and they create companies and businesses and wealth overseas. Does that make sense to anybody . Its impossible that a businessman president would make that decision. I can see winding up. Isnt the president going to let it expire because the whole point, it was an executive order and congress should actually address this we shouldnt do it by bandaid here and there thats the issue thats where the focus should be. Thats something that paul ryan and orrin hatch are advocating for, thats for sure. Thats the way you put the pressure up. Thank you all have a great long weekend. You, too. See you later where are we weve got 45 minute left in the trading session here and were back above 22,000 on the dow right now, so well, we were there a few weeks ago. Big round number. Thank you for the update on that. You were on vacation. Exactly. Very important story. 2 Million Pounds of dangerous chemicals have reportedly been released around houston since Hurricane Harvey struck the Industrial Area there. The greatest concern right now is the arkema Chemical Plant when we come back, well get a live report from there and talk to a chemical engineer about the potential dangers sxw Hurricane Katrina lost tenses of thousands of jobs and billions in damage when we come back well take a look at the potential impact from Hurricane Harvey. All right. Weve got the auto sales numbers. Phil lebeau, how do they look. 16. 14 million is the sales rate for the month of august that was roughly in line with the lowered expectations following Hurricane Harvey and the flooding and much of eastern texas. Most people thought it was going to be sales worth 16. 4 before the hurricane but clearly that took out a lot of sales momentum in that part of the country during the last week just to give you some perspective in terms of how much auto sales have slowed down compared to a year ago, the sales rate in august of last year, 17. 22 million and this year 17. 14 million if the theres any bright side on the numbers its the fact that most believe we should see some type of a rebound in terms of sales lets say maybe two to three months down the road not a huge snapback, but there will be some type of a benefit from people going out and buying new vehicles, particularly in that part of the country im just looking at the share Price Performance here, fill strong today, were they better than expected when it came to a breakdown by brands and by segments of cars when you look at General Motors thats the one that stands out that stock is up again today we were talking earlier today about gm shares being close to what we call the mary barra high they are not there yet but getting close to that. General motors did better than expected overall picked up half a point in terms of Retail Market share the mix was strong as it has been in recent months. Pickup trucks and suvs and crossovers thats whats selling and working for General Motors right now. You put all of that together and the low valuation that General Motors has had fiat chrysler, all know whats going on there in terms of potential sale for part or all of the company. Before you go we heard from gm and ford that they will be shipping more used cars into the area we all know about the glut thats occurred. Is this enough to put a dent in the glut thats been wreaking havoc with the pricing of cars in the company. It will help and particularly looking at the inventory of new vehicles and the question for many investors, how much will they have to cut production at gm, at ford and fireiat chrysler because there was a glut of certain vehicles ford on Conference Call said, look, we may have to increase production with certain models and certain types of vehicles. So youll see this a gradual period of time to build up rentals happen first because people need a vehicle. They need a vehicle and the Insurance Company says go rent up then, maybe six weeks and eight weeks down the road after a check has been cut by the Insurance Company, after they figured out things with their home and where they are living, then they will say, objection im ready to boy and then they go to the dealership. All right phil lebeau, well talk about what we might see from the harvey impact. Thanks. Meantime, executives at the flooded arkema Chemical Plant saying theres no additional fires expected at this point and many people in the area are on high alert after more possible explosions scott cohn is near the plant in crosby, texas and is that area still being evacuated, scott oh, yes, it is, and thats part of the issue here they expect that there will be fires. Its only a matter of time its just that there hasnt been a fire since the first one that broke out yesterday and burned for about nine hours, but theres a good half a Million Pounds of chemicals there that the only thing that can happen to them is burn. So welcome to the eastbound lanes of u. S. Hieway 990 which is supposed to be a busy highway between houston and beaumont about 70 miles from here, but its closed and its going to be closed until further notice and the reason is that that Chemical Plant, the arkema Chemical Plant which is way down there at the horizon about a mile and a half away from here, not only have they closed the highway. 100 people who live in this evacuation zone of a mile and a half perimeter, a lot of businesses like the rowdy buc saloon which has the situation of being just behind perimeter so they are going to be closed, and it will going on until further notice until these chemicals burn themselves out, each though the company says that the most anybody will get from inhaling these fumes is a little bit of sore throat and nausea and thats about it, they say, but theres a 1. 5mile perimeter. What are they going to do for all of these businesses . Well, the company is sending people here to crosby, texas, but they wouldnt commit to much beyond that. It would be premature for me to answer it right now as i said in my opening comments. Well be dealing with the residents and looking to understand how we can bring assistance you know, our First Priority is safety, and thats what thats what we intend to focus on over the next few days. There are not only those chemicals that they are worried about burning off but also other chemicals that are stored there. They claim that they are safe, but, again, they sure are taking a lot of precautions guys scott cohn outside crosby, texas. Joining us to talk about the risk, we have bill carol at Indiana University and professor at texas a m who has authored a study listing arkema as one of the most hazardous plants in texas. Thanks for joining us. Bill, i want to start with you is this an instance where weve got a company woefully unprepared even though they said they had set themselves up for any circumstance that could come their way, or are you ever able to prepare for whats been called a 500year flood thats a touch question for me because i dont have intimate knowledge of arkema. What i can tell you is this. Whats important about this plant is the chemistry of it is very different from most of the plants that you run into and you, of course, have to plan for these kinds of events. What i take the sense of your question to me is is it reasonable to vice principal in your planning a 500year or 1,000year flood exactly. I dont know if thats the sort of thing you plan for because if you plan for something that has that kind of rarity, remember, you know, two weeks ago those seemed to be pretty those would have seemed to be pretty rare, you have to take actions in order to account for that its easy to say, sure, you should, but theres consequences for doing this i would say this id be willing to bet that theres lots of companies that look at this scenario and will go back and take a look at what their plans are and make modifications as a result of that. We can hope so. Sam, you actually flagged i believe thats correct this plant, arkemas plant in texas, as potentially dangerous why is that and is it more dangerous than i think the more than 1,000 other Chemical Plants located in texas well, that is something that deserves some description at how he arrived at this this. A year, year and a half ago we looked at all the sites in the houston area, and the way we looked at it is we looked at the chemicals that they had and what types of chemicals they had, toxicity, flammability and then we looked at the amount of that particular material that was prepared and finally the third index that we added to it was the population within a twomile radius by combining these two indices we came up with an overall what we call potential to cause harm to the public index, and index rated from sooerzero to 16 and l those that got 10 to 16 were put in the high hazard category. Youre saying this was a market not prepared, much less a 500year flood this wasnt a plant prepared for a tenyear flood or fiveyear flood, is had a that what you are saying here . Thats not necessarily what im saying im saying that they had potential to cause harm and so they should have known that what chemicals they had could cause harm in the community and thats why they should have looked at all the safeguards that are necessary and thats where you get into a guessing game and kind of what bill carroll referred to is you can have auxiliary power protection systems. You can have systems like diluting the chemicals and so on, and how much of that was done we really doesnt know, but clearly what we know is all prevention systems that were needed failed, and we have an incident on our hands. So, bill, final word. Sure. I just wanted to ask you quickly. We dont have a lot of time, but for those that are wondering how dangerous it really is and what the toxies tisity exposure is, what were hearing from the executives is the firm is breathing in fire, yes, but shouldnt be a release of toxic dangerous chemicals as a result of the organic peroxides you know more about that than we do, so whats the danger level theres bad news and good news the bad news is you have fires, and they have yet to make a nontoxic fire and thats why you evacuate people and move it out of the way and extinguish it the good news about this kind of reactive chemical if it does end up in the air or water its reactivity is controlled by the temperature. It wont stay there. This material will not persist this is an acute event, not a croppic event. We can only hope. Thank you both. Ive got to go, sam. Im sorry, you know, we never have enough time on live television, but i think weve got it covered at this point thank you poet for joining us. Appreciate it especially for two phd chemical engineers. Yes time now for a cnbc news update with sue herera. Welcome back, bill. Heres whats happening at this hour, everyone peta is searching for abandoned pets in port arthur, texas, one of the hardest hit areas by Hurricane Harvey earlier today, a cnbc crew shot this rescue of two dogs in a home one was found floating on a cushion and the other was found on top of an entertainment unit. Luckily they are both back safely on dry land President Donald Trump expected to announce a key decision when it comes to Illegal Immigrants it will affect hundreds of thousands of young people who were brought into the u. S. Illegally as children. The decision is expected to come this weekend. Two Georgia Police officers are recovering after their chopper crashed on to a field about 200 yards away from the hangar theres speculation that bad weather caused the crash no word on the extent of the officers injuries. And olympic figure skater gracie gold announcing shes taking time off. The 22yearold saying she will, quote, seek some professional help golds decision coming five months before the Winter Olympics begins. Shes a twotime u. S. Champion and a 2014 olympic bronze medalist we wish her the best thats the news update this hour sara, back for you. Sue, thank you. Less than half han hour to go before the closing bell looks like were starting off september which is historically a pretty weak month for the stock in the greempt the dow is up 62 points and the s p up a quarter percent. Look as the s p 500. I guess well miss the whoop, whoop. Its the friday before a threeday weekend so thats what that is all about. Lululemon posting better than expected results to new products and a growing line of Mens Clothing up next, youll hear from the companys ceo behind the strategy. And more on the automative industry more incentives from japanese automakers is putting big pressure in the u. S. Coming cup, a bull bear debate on how it might affect your Automotive Holdings still to come form wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Lululemon shares rallying on the back of it Earnings Report which was out after the bell yesterday. The retailer managed to shine hey mid whats a pretty broad athleisure slowdown with results beating on both the top and bottom lines samestore sales rising 2 and online sales up 30 and the company raising its fullyear guidance earlier today on squawk on the street, did have a chance to speak exclusively with the ceo potvin i asked him for his take on the health of the Consumer Confidence heading into the allimportant Holiday Season listen. I see Consumer Confidence being a little bit stronger so im fairly optimistic for the second half of the year, especially when i think about the Product Offering that weve got coming in whether its the campaign with abc and whether its with jackets and outerwear. I think weve got a lot of really interesting things coming between now and the end of the year, so im optimistic. Dont hear much from lululemon, bill, about the difficult retail environment or the slowdown in athletic and sportswear that we heard from so many other companies from footlocker to nike in the past quarter. But i did see that their online sales are up 30 . Thats where their companies are going to find a future if they can get an execution going in the online sales area, that will its pretty hot. Thank you, sara. Lets get to the market here with 24 minute left in the trading session. The dow back over 22,000 with me on the floor of the new york stock exchange, peter costa from empire executions what you have a grin on your face. I think if you read my notes i am starting to change my opinion. Yes. On the markets and with a much more looking at the way the markets reacted over the last three or four weeks and the inclination of the up move, its actually good. It actually is a nice solid move granted this is the summer, and you can probably take a little off the table from that, but i think going into september, which is a very rough month, were okay when you inevitably dip that toe in the water, what are you going to buy here, whats it going to be . Ive always loved health care i think that its can i interrupt you for one second im sorry this, doesnt work very well but when you have breaking news, youve got to go to breaking news in washington with john harwood. John, whats going on . Reporter sarah sanders, the White House Press secretary, has Just Announced that the president s decision on daca, the program for d. R. E. A. M. Ers and whether hell continue that will be made on tuesday, not this afternoon or over the weekend as president earlier indicated. On tuesday is when hell issue that decision. Hes obviously been conflicted some leading republicans and businesses have advised the president not to end the d. R. E. A. M. Er program but hes clearly feeling some push from within his base and white house to declare the program illegal, unconstitutional well find out on tuesday. Guys all right john, thank you very much for the update thats been a big talking point all day. 20 minutes to go here before the closing bell lets show you whats happening with the major averages. Pretty strong. Peter costa saying he likes this market action. Its pretty bullish. The s p 500 up a quarter of 1 and the russell 2,000 index of small caps which has been an underperformer all year is shining. Its up half a percent supply planes to help the victims of Hurricane Harvey are on their way to houston. Well go live to George Bush International airport for their arrival coming up. But, first, new orleans is still recovering from the population and job losses that resulted from Hurricane Katrina on this jobs friday, well take a look at the potential and employment loss that is houston may face after Hurricane Harvey. Thats next. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. And do the best work of your life. And i am a senior Public Safety my namspecialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. New orleans suffered immense job losses we all remember in the wake of Hurricane Katrina. Cnbcs kate rogers has been talking to economists about how houston may find a different Employment Situation following Hurricane Harvey what did you find, kate . Thats right. The damage is still being assessed, of course, in houston in the aftermath of Hurricane Harvey, but the damage so far is estimated at 1180 billion that far surpasses Hurricane Katrinas price tag of 160 billion. Take a look at this h. Since katrina new orleans has lost some 90,000 residents and in the first ten months after the tomorrow, 95,000 jobs disappeared. Nearly 1 billion. That was lost in wages mainly from the private sector and they had a job rate of 12. 5, one of the highest ever recorded in the u. S. , according to people who analyze all that have data to. Break down the jobs loss in the ten months after katrina, more than 22,000 jobs were lost in the tourism and Food Services industry and 3,500 jobs were lost in porter is vices and more than 13,000 jobs, they were lost in the health care industry. Meanwhile construction, that was actually one only industries that saw job gains as Recovery Efforts began, something that economists will say will likely happen in houston postharvey as they are continuing to rebuild. Now economists say theres one Silver Lining here for houston and that its not very similar to new orleans in fact, more than 2 Million People actually live in houston, the fourth largest and most diverse city in the country and it was actually growing before the storm hit. New orleans had a population of 450,000 residents before katrina and the population was on the decline. Theres also as strong diversified economy in houston, and the population there is also much wealthier so exports say all of those combined make it very likely those people will come back home after the storm instead of fleeing the city the way people if during katrina back over to you. Thanks very much, long had one of the most stable real estate markets in the country. Houston. You dont have the high and lows like some cities. They have benefitted from the oil boom, of course. Exactly. And well see what happens there. A little over is a minutes to go before the bell take a look at the nasdaq because any positive close is actually a new record high we closed at a record yesterday as well and in fact at this point were head willing for the best week for the nasdaq of the year. Wow. That will be true if we close above 2. 7 which is where we are right now. An estimated 1. 1 million vehicles have been destroyed in Hurricane Harvey the damage, will it alter future auto sales there well take a look at what it means for some of the ought mott fstocks when sara and i come back ronoh really . Gs going on at schwab. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . According to preliminary estimates hufr is expected to destroy between 300,000 and maybe up to 1 million vehicles already, and this compares to the estimated 250,000 vehicles that were destroyed by soupe storm sandy and the 200,000 destroyed during Hurricane Katrina. So for more now on how the damage from harvey limb pact the auto sector Going Forward, were joined by Jamie Albertine from Consumer Edge Research first of all, ive been reading your notes all week long. Thank you. Amazing how you can quantify these. How do you figure how those vehicles are insured and uninsured hand how does that matter in terms of how they get replaced thanks for having me hand thanks for reading along with us this week. Look, i think its a very, very difficult question to answer, first of all, and im not sure we have an answer per se underinsured on some level is also a consideration when you think about the car part the average is 11. 5 years old. In the a feek life cycle you carry minimal levels of insurance and likeforlike vehicle swapping is not included in something of that nature. We try and go back and look at Hurricane Sandy and Hurricane Katrina and other major storms to get a sensing we look as well as sort of the idea of what vehicles are on auto dealer lots in terms of trying to understand the surface area and the addressable market, right, and it appears that this is going to be, you know, four to five times as bad as what we saw with hanldy, so starting with that, gets you to about a Million Units that are going to need to be replaced or otherwise substituted for in some capacity. I dont know the answer to this, so im going to ask you. Can you use fema money to buy a car . I know you can repair a home and the damage thats done there, but can you buy a car using fema money as well . I dont know the answer to that off the top of my head and its a great question. Because the underinsuring part, you know, weve already heard as i heard earlier on the program saying gm and ford will ship a boat load of preused vehicles to those areas suggesting, of course, that those will be lower priced and easier to buy and they have got plenty of them to go around, so i wonder if those who are underinsured will be able to use some of the fema money to buy those cars. In terms of the source of funding, i apologize that i dont have a great answer for you on the fema funding, but i will say that i do believe that much of the replacement will be handled by the used vehicle mark we have a lot of used vehicles coming back off lease as an exam we have a lot of used vehicles coming in in the form of off rental fleet, and theres quite a bit of inventory broadly on the new vehicle side as well that can be shifted accordingly. I think the risk here is not so much that well see a pop in terms of replacement volume but its the timing and pull forward of future demand were not really in a Strong Technology cycle right now for new vehicles to the extend that people were hanging on and waiting for the next big leap in technology, which we look forward to in 2021 with more autonomous features, thats something well be stealing with with respect to high replacement value near term thats stormrelated, but make no mistake used vehicles are going to supply a lot of the replacement vehicles. I would think so, and the way it will all be paid for, im just being told. Sure. Auto insurance obviously is primary rcmp the sba, interestingly, is also a primary source of funds for replacing a vehicle, and then if you cant use those fema is the backup to then resupply. So there is a way to get federal help. Thank you, appreciate it. Thank you as well. Less than ten minutes to go here before the closing bell, and its another day of gains on wall street. Watching the dow its trading above 22,000 again. Well, close lets see if we can say there. 22,001 havent seen that level since august 16th and the nasdaq if it closes higher would be a record close. Up next, well head up town to manhattan to the Nasdaq Market site hitting a esfrh alltime hit hitting 6,000 for today. Levels all around bell rings screeching tires bell rings as sara mentioned the naz tack is on pace for its best week of the year. Actually the best week for the nasdaq composite since the election in terms of a gain with the nasdaq 100 and nasdaq composite on pace for an alltime high close. Really led by apple on pace for an alltime close. Wynn with some strong numbers coming out of macaw on gambling and micron with an upgrade and helping to boost tech all together and biotechs have been the real standout. Take a look at juno, a oneweek chart, immunotherapeutic cell companies, they have done very well this week with a lot of positive news in that sector back over to you guys. Happy holiday weekend. And to you. Thank you, bertha. When we come back well have the closing countdown. Well see if the dow can stay up near 22,000. And another potential record close. After the bell the Opioid Crisis still looms across country a story of hope and how businesses are providing it. Youre watching cnbc, first in business worldwide and the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. bell rings screeching tires bell rings heading to the close to close things out for the week. Lets review how the markets have done, and we start with the nasdaq got to be the stock index of the week dom chu is here with me. Best week of the year for the nasdaq. And we know that biotechnologies, some of the hot Semiconductor Stocks have been a big part of that have growth story, talking all week about the outperformance of Growth Stocks over value stocks, playing out this week be a has been all year long. And the dow doesnt look like were going is to finish above 22,000 so put the hats away. Have to be saved for another day. I hear we were above it last week. Just a couple weeks ago wti, crude, going to be a very volatile tame. Yes. Safe to say, still waiting to see what impact is on the supply and the administration has been releasing oil from the spr. And all of that have will play out whether or not we see lower gasoline prices when the pipelines and refineries get back to normal and one thing were watching pretty closely. You mentioned the nasdaq before. Small cap stocks and transportation stocks, leading indicators that many traders like to watch. Decent amount of outperformance overall. And finally the tenyear. We got to 209 this week. We did. And that was an eye opener but weve since come back and are at 216. Hanging on to that. You got it later. Shall we go out with a record for the nasdaq but not the dow stay tuned got a lot more coming up on the second hour of the closing bell. And welcome to closing bell. Im sara eisen here for kelly evans today. Bill will be recoining us in just a moment. Let take a look at how we finished the day on wall street. A strong start to the month of september. S p 500 closing up. 2 of 1 , the nasdaq close up a tenth of a percent and thats enough to make a new record high for the nasdaq, looking at its best week of the year and the s p 500 also going out with a gain of. 2 percent and the russell 2000 index up. 6 of 1 , saw a strong dollar in the session as well. As texas works on rebuilding another category 3 hurricane is speeding across the atlantic ocean. Were keeping an eye on hurricane irma, and well bring you the late on its track. People are rushing to fill up because gasoline prices have filled higher in the United States due to Hurricane Harvey shutting down refineries how high prices could climb and how long were going to discuss that a little bit later joining us today, cnbc senior markets commentator Michael Santoli and evan newmark joins us on a friday and also joining us the godfather of Technical Analysis, ralph alcampora. Best week of the year for the nasdaq. Very behaved, had a pullback over a couple of weeks in august people thought that was maybe a change of character for the market and volatility season upon us. Not really gotten back to the verge of the alltime highs in the s p 500. I think its maybe just beyond trying to overthink it and saying slow and steady growth is okay high luck liquidity is okay and bond yields are okay and the slight disappointment of the jobs number was not too much of a surprise to the market because the bond market was already rallying for weeks into this its basically on trend anyway in terms of job growth. Ened if you heard but peter costa started to turn bullish. Is that your contrarian antenna giving you an alert . How much of this also, evan, would be the catnip of tax reform i think that tax reform has been around for months now. But now its coming front andet . Center. People want an excuse for why the markets have come up, and they will point to tax return. Sure, sure. I think there has been a stunning resiliency to the market even though were not breaking into new highs you look at the chart. Its the market over the last really since trump came into was elected, its been slow and steady and any pullbacks have been very short and muted. Its kind of its a market that bears should hate and im sure they do. Yeah. Ralph, youre looking at the charts and talk how bullish they look to you as we near new highs and reach new highs on the nasdaq. Well, youve got to say all of what we just heard about the conditions of the market, you have to add to that that its a global event youve got foreign markets doing extremely well, china, canada, the latin american countries and emerging markets all making multiyear highs so this is a broadbased advance despite some of the uncertainty coming out of the white house and the thing withp shooting the thing over japan and everyone is ignoring it and thats positive chart watcherser in look at the why. Have you thought about this testify lop market and even though we keep all throwing the bricks from the wall of worry at them and it keeps deflecting them well, if youre asking me that question, i have to say that the market is assuming that the fundamentals are fine, and lets face it. The public is getting in the market, but they buy and large have missed this whole bull market so its not overdone. For me the issue continues to be what i see as a tale of the bond market versus the equity markets. I know mike is going to tell you why im wrong on this again and ill go ahead and let him and to me its just very strange that you have are the ten years plumbing new lows. This morning the kneejerk reaction to the jobs was the tenyear went down to 2. 10 which is the lowest point of the year. Those are very low yields you have a pretty flat yield curve, and yet you have you have Growth Stocks doing extremely well and youre not getting the wage growth that you would think would be necessary to really push stocks and profits much higher. Okay. Theres been no wage growth really. Talking begun there earlier i think everybody in the world is anchored or an absolute level of Interest Rates that we got used to when inflation was much higher, that we got used to when nominal growth rates, because of that, were much higher, so it seems like an anomaly, but i think the average tenyear treasury yield, i dont know, for the last six or seven years has been 2. 3, the stock market has more than doubled over that period so its not somehow incompatible, these two things. The other dynamic at work has been the weaker dollar that bounced this week. It will be interesting to see, some are wondering if the dollar has hit bottom does that change the tide . Emerging markets as ralph pointed out has been so strong and overseas marks as well sort of shocked the european stocks that at the present time doll hear has had a good course. Thats the definition of loose financial conditions when growth is god and if youre a eurobased investor the u. S. Stock market is not up this year. Beginning of the year the target for the dow was 22,9 and it was raising are eyebrows at the time are we on schedule for that, or are you tempted to raise your target here hat the beginning of september . Well, thanks for bringing that up, because when i threw that out, bill, id be honest with you, that was my hail mary pass, and and a couple of times during the year i thought that maybe the honeymoon would be over and we see that, but as of a last few days i think were on argument that to hit it the 22,900. Youre not tempted to raise that beforehand . No, not yet, not yet. If you look at which groups are tech tech is the strongest, strongest of the year and of the month as well and then its utility and he is air unlike the, telecoms like staples and technology. You could argue that because people are trying to grab for growth where they can find it because the world is not growing too fast, i would say more recently this week it was a more cyclical tone. All theo stocks were up nicely all week, even, you know, you had a lot going on down there in texas as a catalyst. Machinery stocks and other cyclicals have par tut pated as well. A you know, i think thats the wrong way to lock at it. As opposed to im going to put all my money in the stock market right now. Theres very few areas where theres value. In the tech stocks in particular you have having aations that are stretched and in utilities youre basically in tune with the bopped market where you would say that prices are stretched. Sure. So a lot of people saw in financials coming into the year. That hasnt worked with the tenyear. When the curve is so fat, they. When you have text doors thats really the markets gogt. Thats a dangerous situation. You and i have known each other a young youve been watching the market and recently embarked on a personal project in minnesota and youre took the barn and are painting the history of the dow there. Tell me about that. Yes, it was 50 years ago. I was on a Job Interview and a man hand me a book and he said you read this over the weekend and you have a job monday morning and the book was on Technical Analysis and it changed my life, bill. 50 years identifying was the computer because in those days i had to plot all of that so i said im going to build the biggest up that i can find. Its a labor of love the green boxes, are those some historical events that happened at those junctures exactly i have the last ten years last 50 years there were ten. You can see the red bar going, the horizontal red bars. There were seven recessions in the last 50 years. We had five, what i called crashes, anything that done 30 and wehe a crash it started in 89 and ended in the year 2000 and i have the percentage gain of that. Its an transportation i call it a walk through history some day you come out and ill walk you through history, bill. Youre going to need a bigger barn though there, ralph youre about to go through the roof. I have a very geeky question from a viewer. Your buddy tom mclellan wants to know why you didnt paint it on the side of the a log cabin and that way it could be log scaled. From one Technical Analyst to another. Thats nice, tom. Great stuff good to see you, ralph. Thank you, bill take care, folks let you get back to the cooling this. Pretty cool we think so. We should. Thats what we day for the weekend. The oil romney ryanry and gas prices going sky high. What did you pay yesterday . 2. 84. That is high, higher than the national average. Come up, weve got live footage at George Bush International airport in houston where supplies are literally expected to land any minute, and we will show you how that works ent pps. ll be right back. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Rains from Hurricane Harvey are over, but effects across the oil and gas industry will be felt for quite a while. Scott cohn is in crosby, texas and also monitoring that situation at the arkema Chemical Plant. Our diana olic is more with rising gas prices. Scott, let start with you. Okay. Lets start out on the arkema Chemical Plant no evidence that we can see from our great distance here of any newer fires today the facials stay were month training there if. The bottom lon is mr. By sfrmpt thats what we bay aloy frvmt are also speaks to the number of Chemical Plants here in the Gulf Coast Region not necessarily something that people think about but hundreds of them and some tied to Petro Chemicals which are also refined other which brings us to the refiners there are still some major outages and still some are trying to get back up and running and major refine rigs including the bay town refinery in houston and the and the refinery down in port arthur are reported to be out and flooded and could beup henninger gasoline refining down 14 according to analyst thats a big claeks. Renooichgs and some of the refineries could be out for a month. The thinking is they are bringing in some supplies from europe and some will get back online so well see a steady rise in gas prices but it may ole. Theres a lot going on here but one thing for sure is ever dipia . You know, when we spoke to people here most did not know that gas prices went up and most changed by 20 cents a gallon this morning and now up to a total of 40 cents a gallon since last weekend its here in the midatlantic and georgia and the climbias seeing the biggest price in prices hand thats because they get it directly from the houston refinery to the pipeline which is returned in east texas, prices up more than 20 pins and california so bad. Up just six secretaries gallon let to do with dwrmp dwrmpt. Ioused to spend 35 to fill up and now its like close to 45 or 50. Wow. It hits. You gone up 50 in the last two or three days. I stop here just about every day and its just ridiculous will. I was in sticker shock just a minute ago when i pulled up. Gas prices could rise further in the coming week, as scott said, maybe another 25 cents a gallon but could come back as the refineries and that is that it will cost problems in all spots. Always with the good news thank you, diana see you later. So how long will consumers feel the impact of harvey at pump joining us with some thoughts on that is tamarah johnson with aaa. You know, the old and ill say the old line up like a rocket and down like a feather. Thats how gasoline prices usually go here. How much of is this i mean, it goes up so fast and just in such a short period of time, is that. Weve seen prices have gone up on an escatled, gone up 23 nationally hand will grow up 20, 25 cents, but due to the fact that its hard to move supply to the retailers so were actually seeing in the texas area that its very difficult to get some of the stored gasoline to the actual gas station. And how long do refineries have to stay shut here before you actually worry about a gasoline shortage . Well, ill tell you right now. A week is an extended period of time we do anticipate that those in houston will be out for another week or so so if this lasts up until about a month, well in a dire situation in terms of supply hopefully that wont be the case we arent hearing reports that many refiners in the houston area have significant damage to any infrastructure so we do anticipate they will come back on line. Hopefully next week. If theres one lucky break in this price increase were seeing nationally, its coming off relatively low levels, certainly by historical standards in terms of what gasoline is going form do you have any sense how high prices might have or how long they would stay there before you really see a demand response from drivers we were actually above 3 on average for three years ending, you know, in 2014. Yeah, we anticipate that about this is all said and done and drivers are not paying the prices that they paid in 2011 and 2014 where prices were upwards of 1 a gallon so it will probably take prices go that high before we see significant travel changes we dont expect a lot of travelers will change their plans for this labor day drivers are still paying fairly reasonable prices for this period of time. So the administration has been releasing oil from the Strategic Petroleum reserve. Right. Does this help the situation when were talking about a gasoline problem it definitely helps because its actually freeing up some oil that can be refined into gags lone and shipped to. Once we find where that will be move to in the question its readily available so we can moved it around were tracking imy, what have you cbs. Which kind of production or pipeline stand in its path still very early to determine which direction irma will go were looking all the way over from South Carolina to louisiana and already a gut punch to an area thats suffered such a negatively impact in terms of refining capacity. Hope it doesnt head towards the coast because it could have large implications on prices into the future if we do see that hit landfall. What i find so interesting its the first time that weve talked about inflation in any form for years i mean, when you look at almost across the board, about the exception of maybe housing, the has been basically bereft of influs but this wrap tracksient. They would said its tracks fence from can you remember any time in the past eight or nine years individual product category. A little bit of a scare for produce for a while. Services is where the inflation han been, medicare, education and that sort of thing. And this comes at a time lately, the last few months, that gasoline prices have been very stable here, right . They have we saw prices drop for a moment and thats not common to see we did see a slight increase heading into labor day and this is much higher its going to go higher in the coming weeks, we do be a pate its going to short lived, probably trarnld november and december as we lose demands. Im looking forward to all the retailers blaming a pass that will be the next crisis. The openoid crisis has become difficult and what some of the First Responders are doing when we come back. And President Trump reportedly nearing a decision to end the obama policy offering leniency to undocumented immigrants who were brought to the u. S. As children some Silicon Valley ceos are fighting back. That story is coming up on closing bell. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. Fedex planes carrying red cross relief shipments landing moments ago at george bush intercontinental airport our Contessa Brewer is there with more. Walk us through what were seeing. Reporter well, sara, you know, the governor says 4 it,000 texans spent the night last night in shelters, and the red cross has to keep feeding those people, so fedex is helping out. The plane has just arrived from memphis with some 20,000 meals ready to eat, and you can see right now every up loading big palettes of water, going through liters of. It size they are now raised largest number of event and in texas 1 million meals have already been served and you can see these supplies are going to be very important for keeping up with the demand as more and more people come into shelters or return to shelters or simply need a hot meal. The red cross has also been feeding First Responders in a number of places and and, you know, the red cross now says, look, were getting the supplies we need and the way that we need them. We dont neat any more supplies to get in. We need ter when the drama has declined and the needs still remain certainly there are people who dramatically need the help right now. They said that they received so many volunteers that it strained the system trying to process them all and, of course, get them trained so that they can be in the shelters and help people over the long term now youre seeing the trolleys coming forward and the palettes of water being loaded and, again, these will go to more than 200 shelters from the rhett cross and Partner Agencies as well and since were at a fedex facility, i want to mention that fedex was onpeak, they delivered 18,500 that i had they about 30,389 its a. High volume the only thing is going to continue because the mayor of houston said just today as they try and alleviate the pressure in the levees they will let more water out so people whose homes are already inundated with water will be at least ten more days before they can think about going back to their homes and they will be stuck backing there for a while. And we saw the flooded neighborhoods west of houston today. Saw the neighborhoods west of houston where two blocks over there are shops and restaurants open and yet water is still up past doors, 10 feet high in some places, so those are people and plasds where the need continues and especially the red cross told me that the most vulnerable of houstons population are not going they dont have the resources to move on to friends and family so to shelter them is going to be a longterm commitment. Look at that. Chest high water still today. Contessa, thank you just incredible. For that update from the facility time now for another update with sue herera. Heres whats happening we have a developing story out of San Francisco the russian consulate in San Francisco telling firefighters nothing is wrong after black smoke was sign pouring out of the building they were turned away by consulate officials. The timing though is raising eyebrows because it comes just day after the Trump Administration ordered the embassys closure. No word on what the consulate was burning. The white house announcing President Trump will make a decision on the daca program on tuesday. Its an Obama Administration Program Giving young people brought to the u. S. Illegally amnesty from deportation decision will affect hundreds of thousands of people h. Hurricane harveys aftermath now affecting iowa the rain from that monster storm is starting to cause problems for that states soybeans crop, and from zero gravity to earth noa astronaut Peggy Whitson will check out of the International Space station tomorrow after spending nine and a half months there. She holds the record for the amount of cumulative time in space spent by a u. S. Astronaut. Shes craving pizza and flushed toilets. I cant blame her for that thats the news update this hour she is an amazing woman, she really is. Kudos to her. She will have a heros welcome. Thank you, sue. You got it, it guys. All right more than 20 million americans had a Substance Abuse disorder in 2015 with 2 million involving prescription painkillers, that accord willing to the American Society of addiction medicine. An for those who beat the addiction, holding on to finding work can be hard our ylan mui talked to one Business Owner who is offering employees a second chance. We went to columbus, ohio and met Jonathan Rupert there. He runs a company that makes and installs custom countertops. 15 of his 49 employees are recovering addicts ive built my company and grown my company in four years with folks that have successfulfully gone through a Recovery Program and i wouldnt trade it for anything. Ron egle is one of the workers and hurt business back in and out of jobs, afighting addiction until rupert hired him. I used to hate waking up and going to work and now i actually look forward to it it keeps me sober, you know. I work with a lot of sober people ive surrounded myself with sober people, you know, and it saved my life. A study out of princeton found that across the country half of all prime aged men not in the labor norse take pain medication most of that is prescription drugs, and the death toll in ohio does continue to rise, guys more than 4,000 people died of overdoses last year. Ron eagle was one of the lucky ones back over to you. Its a good story, ylan, and i would say its probably mortgage exception i remember when this actually came up with janet yellen. The fed chair talking about how it was suppressing the labor force participation, the fact that we have this growing opioid devastation and all sorts of impact. And it is just not the addiction themselves and they may have some pretty work. Drug tests . Is it a big enough problem that it actually impacts some of the Economic Data regarding jobs. The princeton study was done by alex including emergency. Thats an area that xhust with looking are, whats the maca respect on the labor force overhaul ylan mui, good story. Thank you. Earlier today, the white hous [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Houses top guys on what they heard about President Trumps tax plan when we come back ort fm thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at Td Ameritrade. Job growth in the u. S. Did slow in eight. The u. S. Economy creating 156,000 jobs compared to the 189,000 jobs created in the month of july. The Unemployment Rate edged a bit higher, 4. 2 earlier we spoke to white house chief economic adviser gary cohn and heres how he reacted to the jobs report, listen. If i had told you on Inauguration Day that id be standing here on Labor Day Weekend and weve have 1. 4 unemployment and 3 gdp growth you and i would being are an interest growth. You would telling me this that those no, were not disappointed with those numbers, not disappointed at all. Our senior contributor larry kudlow joining us now. Hes got a point coming at a time when the fed is under intense scrutiny and whether they will be bringing the Balance Sheet down and raising rate and all that and its all starting to make sense here, right . I think the 3 q2 was very interesting and actually atlanta fed gdp now and others think youll get 3 in q3, and profits are having this late cycle surge which is very unusual. I mean, were an eightyear Business Expansion so they are surging and thats helping stocks and also helping the economy. Business investment is bumping up, better than weve seen in a whole bunch of years, so those are the key factors. Low inflation, tax cuts for everybody. Very important low inflation, so youve got a good mix, and i will say theres a trum factor here i think his work on regulations, omb has said in terms of pending business regulations, 800 have been either rolled back or frozen now, that is a tremendous signal to large and small business, you see it in the confidence indexes and it helps when it kicks in on Cost Reduction we havent gotten his tax cut yet. I want to be optimistic about it. So does he. And hes working harded but as david faber said in the interview, david wants to be ten years younger and 6 inches higher hes optimistic but not likely that it happens. I think david has a shot at being ten years younger. He does his hair doesnt turn gray. I think the 6inch thing is being a bit of a reach they are working ought it, this socalled group of six. What are they working on . We heard from secretary mnuchin it was a detailed plan and heard from gary cohn it was a series of outlines, very unclear. He said were putting beef on the skeleton im mixing melt afors. Is there a package. I can tell you what is behind this this basically all comes out of our campaign stuff, okay, so if you get to individual rates and deductions, which is what cohn hinted at today, upper end people may pay more in taxes, not rates, but just because they lose deductions. Youre looking at Something Like 10 to 12 at the low end and 25 in the middle and 35 to 37 at the top end, three brackets instead of seven thats whats behind that. Let me finish. Okay. On the corporate side youre looking at a 15 Corporate Tax rate hes hanging to that number. I said please say with it it you may not get total expensing but better package and doubling the standard deduction. What is a little curious to me is they are trying to simplify, you know, gary made the point this morning, went on a single sheet for people to fill out their taxes, but they are spending an all of lot of time to try to simplify things, it seems, unless they are modeling to see which would be the most effective rates at the various levels. They are doing both look, i went through this. This is a proses i went through it many years ago during the reagan years. They basically want to find and im going to speculate here. I dont know anything, they want to find a couple of models that show this tax reform and cut will may for gps carried inches for Hedge Fund Guys thats in the mix. Thats not thats not a big thats not a big number, larry. I agree thats a political thing. I agree. That you can about something thats relative the state deductibility, will they get that through . Only because of you i want to get the state and local deductions through. All of gary cohn ex goldman colleagues will be happy i dont care about them i only care but. This deduction may even have your name on it. I dont think so. Put your name ton it. I think it would be absolutely you think that has a real chance of getting through . Yes. Is the that doesnt mean im predicting it it its in the mix. So is the interest expense for companies. Thats in the mix. Yeah. And they are also trying to figure out what to do on expensing. Youre probably not going to get 100 expensing, but maybe close enough i would prefer the president put off his own report congress dilly dallied and that didnt turn out so well. I can tell you this, evan. Hes totally utterly committeded to this, completely health care, believe me when i tell you that. Thats the thing i learned when hi last talked to him. Doesnt the lack half specific plan suggest, as well as letting the congressional committees take the lead, that really what they want to do is get something out there they can call tax reform and in the process take credit for a profit thats really good. Thats a good cynical view. Want to get this done, and for those purposes the lagard right now between you and i, nobody is listening the lagard is a senate orrin hatch, a good man, has a lot of work to do. The predicted poll, kevin warsh, the fed governor has taken lead over janet cohn and janet yellen for the next fair and democratic support shows donald trump has massive support of tax support in key states where Democratic Senators are going to sweat it out. Good point. Just wanted to finish it. This just in. We have to go to commercial and the evan amendment with local tax cuts. They have to pass it, you know why they have to show wages going up. Really nice rental apartments. All over gary cohns colleagues hell leave the exdouse out of the northeast. Thank you, larry. Lovie, larry. Love your period. Fear of shutting the program down has set that into action. Down has set that into action. Those details next, we its just. We were going to ask about it but we werent sure when. So thanks. Yeah, thats great. Being clear and upfront. Multiplied by 14,000 financial advisors, its a big deal. And its how edward jones makes sense of investing. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. So you can get business done. I thyou never got the brakes looked at . L. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. The white house saying President Trump will deliver a decision tuesday about the deferred action for childhood arrivals, the daca program, which allows young people who came to the u. S. Illegally as children to remain here. Okay. But hundreds of ceos, including big tech names, tim cook, Mark Zuckerberg, jeff bezos, they have already voiced their thoughts on this tissue and josh lipton joins us was that part of the story. Josh. Thats right, bill, the showdown between President Trump and tech over this issue clearly heating up, and in an open letter executives saying they are concerned about the future of these undocumented immigrants brought here as children saying unless we act now to preserve the daca program, all 780,000 hardworking young people will lose their ability to work legally in this country. The u. S. Will claim that the u. S. Economy will lose 350 billion if the d. R. E. A. M. Ers were forced to least country Mark Zuckerberg wrote the young people represent the future of our country and our economy. The letter was signed by apples tim cook and jeff bezos and goggles patch yeah and others who said we stand with draermers, they are vital to our future sysco has many employees and family members that support daca this is often just a very personal topic with ceos such as patch yeah and khosrowshahi of google all foreign born d. R. E. A. M. Ers themselves. The rains and winds of Hurricane Harvey are over now, but theres another major storm threat looming the the auto trade is coming to a screeching halt. T dance music bell ringing music stops bell rings the Recovery Process is only beginning after the devastation of Hurricane Harvey. What its left behind, but now, we may have to brace for yet another powerful Storm Hurricane irma steve . The pique of Hurricane Season is coming up u on september 10th unfortunately, after we had a disaster, we are tracking another major hurricane and thats ir ma lets take a look. Irma is a strong category 3 storm. In fact, it had weakened this morning down to a 2, but has regathered steam now winds up to 120 Miles Per Hour its way out in the open ocean now, but twoef keep our eye on irma this just came out minutes ago and still calling for it to strenten into a category 4 storm. No impacts with this storm until we get to around wednesday thats when it will be coming close to the u. S. And British Virgin islands probably just north of there, then north of puerto rico. But again, its the cone that we need to watch. That track will shift up and down here as we get better information. So we got a couple of scenarios board here one is for the weaker ridge. That will allow the storm to get picked up by the estherlies. Current of air that brings storm systems from west to east across the United States. That would potentially put the east coast at threat and or the storm goes out to sea. Another scenario now would be a stronger area of High Pressure think of it as a paperweight it would push the storm further to the south thats when we have to keep our eye ons hispanola and areas of florida and the gulf coast wouldnt want that to occur. Thats for sure thanks. Appreciate it. When we come back, we end an intense, emotional week on an upftliing note well talk about the donations being made to harry ve leaf after this tr theres nothing more important than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. You might want to consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Like any Medicare Supplement insurance plan, these help pick up some of what medicare doesnt pay. And, these plans let you choose any doctor or hospital that accepts medicare patients. You could stay with the doctor or specialist you trust. Or go with someone new. Youre not stuck in a network. Because there arent any. So dont wait. Call now to request your free decision guide and find the aarp Medicare Supplement plan that works for you. Theres a range to choose from, depending on your needs and your budget. Rates are competitive. And theyre the only plans of their kind endorsed by aarp. Like any of these types of plans, they let you apply whenever you want. Theres no enrollment window. No waiting to apply. So call now. Remember, Medicare Supplement plans help cover some of what medicare doesnt pay. Youll be able to choose any doctor or hospital that accepts medicare patients. Whether youre on medicare now or turning 65 soon, its a good time to get your ducks in a row. Duck quack call to request your free decision guide now. Because the time to think about tomorrow is today. We have this thus alert. Roku has filed for an ipo of up to 100 million. Its ticker simple, roku. It will trade on the nasdaq. I wonder until why they waited till late on a friday . Interesting probably place holler amount but interesting pure play i guess. Video streaming future of tv. Scary that ipos is breaking news, theres so few of them relatively speaking. We wanted to wrap up the show with this as houston and other parts of texas and louisiana look to p pick tuiasosopo pieces an rebuild, computer entrepreneur michael dell and his foundation pledging 36 million. So far topping the list of all of those looking to help the victim, pitching in with a Million Dollars towards relief also, loads of corporationcorcos verizon said its donating 10 million. Retailer walmart is doubling verizons pledge with a mix of dollars, Product Offerings and match iing donations. Then in the business world, weve seen hollywood headliners such as Sandra Bullock and leonardo decap row j. J. Watt raising more than 15 million in less than a week. That was impressive. Several teams are doing their parts. Houston rockets owner Les Alexander donating 10 million and houston astros, pitching in 4 million we have seen it across industries and across the country. As the president said. All texans it brings out the best. J. J. Watt thing is amazing initial goal was half a million, just kept going up he went on social media and just became kind of a note for everybody who wanted to donate just shows that tig power if youf got that following. And you know, contessa said, what they need now is money. They need the money. They dont need the volunteers got enough of those now. But they need the money to get those supplies there for the people that need it. Thats great. Someones keeping track of the money. They need a spell of good weather. Probably the thing they need most it has been sunny zwl thank you, gang. I think kellys back on tuesday and well see if this guy said he likes it. That is closing bell. Fast money begins now. Have a good weekend, everybody fast money starts now. Overlooki ining times square, i melissa lee. Your traders are tonight on fast, infamous short seller andrew left said something on fast money last night that sent bitcoin traders sinking ford is soaring again today, but the chart master sees something that could send the stock