Transcripts For CNBC Closing Bell 20240714

Whether jay powell will cut Interest Rates further. And big earnings on deck, disney and wynn after the bell joining us courtney. Tell us how youve navigated the last 24 hours. You know, its been really, really interesting when you look at where the vix has been in august, were hitting 25 i think in july we ended around 12 that volatility is incredibly interesting. For someone like me thats looking to buy positions on the dip that i think are quality positions to buy and hold, it was a really good time in my opinion to do that interestingly enough on our desk at Loop Capital Markets we saw a tremendous amount of low, probably in the overnight markets, probably the most active weve seen all year. Buying or selling interestingly enough, buying. Some very balanced program bus we also saw a number of our fundamental clients buying in developed markets and a little bit of selling or less buying, well say, in some of the emerging markets so were starting to see some of that flight to quality shift on our side and then in the u. S. , more buying than selling from Institutional Investors, which is who we speak to more frequently lets drill down on the big stories were watching bob pa sa bob, lets start with you. Just off the highs, wilf, but a long way to go to repair the damage some are doing it, some arent nike, big day down yesterday Big International stock. 81 went to 79. Its turned around, back to 81, right back where it was. Mcdonalds, another one. 214 went down to 210. Its essentially back to 214. A lot of stuff isnt doing much. Caterpillar oddly is sitting there. 124 to 121 close yesterday still sitting around 121. Visa, huge runup this year, 1 stec 77, closes at 169. Finally i want to make a point about the new lows in theenerg stocks, whole bunches of them. More than a dozen in the s p 500, including occidental, halliburton, marathon oil. Nothing going on with energy this year. Nasdaq was the biggest loser in yesterdays big selloff but leading the comeback today Bertha Coombs has a look at the action. Leading the comeback but as bob was mentioning thought quite all the way back large cap tech definitely leading the rebound. Take a look at apple shares, for example, still down for the week but it has snapped back near its 50day moving average so it is about 10 cents shy of it chips have recouped nearly half of yesterdays losses with a big beat from kla really boosting the sector amds lisa su knocking down rumors that she might be leaving the company. And take two giving its rivals lift as well yesterday the president blamed violent games for inspiring shootings. The Treasury Department officially designated china as a currency manipulator and sara has been taking a close look on exactly what that means. It is an escalation in the trade fight with china the u. S. Labeling china a currency manipulator its mostly a symbolic badge of dishonor not many actual implications of it the formal process is that it does officially initiate negotiations between china and the imf. They have been applauding china for moving to more marketfriendly currency policies so why did it spook the markets so much when this news hit last night . Well, it could increase the odds that the u. S. Takes more drastic measures on tariffs or tries to actually intervene in the currency market and could also increase the odds china lets its yuan fall further sparking worries of further flight and debt problems. Some strategists even writing about other retaliatory moves china could take like the nuclear option, selling treasuries why did the market rebound overnight from what looked to be an ugly trading day . China did fix its currency stronger rather than weaker. And it wont escalate tensions with the u. S. Further for now. That was a huge sigh of relief for Global Markets markets like stabilization of this currency. Maybe a slow decline is okay weve seen it lose about 2 , 2. 5 so far this year against the dollar nothing dramatic enough, though, to stoke worries about crisis and financial instability and bigger confrontation in the trade war and thats what happened monday and that was the trigger for the worst day of the year for stocks. I think the treasury designation is not necessarily the key point, as you say. The implications arent that muj from here. Going back a day, i wasnt here yesterday, the fact that it slipped below 7 is really interesting. In 2016, 2018, they really fought hard not to cross that level. Its highly likely they decided its just too expensive to keep propping it up now weve crossed that level the question is where do they allow it to slip to in the weeks and months ahead but not in the hours ahead its not an immediate freefall. I think the reason it fell further and kraud tcrossed the because the u. S. Had surprise new tariffs put on chinese exports. In fact all chinese exports into the United States as the president announced last week on twitter. It puts pressure on the economy, pressure on the currency and the market was leading it lower. However, it also gives President Trump ammunition to say, look, theyre using their currency for unfair trade practices so youve kind of got a war of words. Really what the market objects to and i think worries about is too weak of a chinese currency we saw that in 2015. It sparked all sorts of concerns about money leaving china. So that stabilization is key. Absolutely. But i also think the broader implication that this shows china is not backing down from the latest round of tariffs and clearly President Trump recently increased the tariffs makes the likelihood of a trade deal so much less likely. Weve got new comments from st. Louis Federal Reserve president jim bullard saying the fed does not need to pile on rate cuts, but additional policy action may be desirable. Steve liesman is looking at whether the market is getting ahead of itself in terms of expectations for fed easing. A lot of comments from president bullard today, steve. Yeah, sara. To answer your question, i think it might be best with where the markets priced and whether its in loin with what the fed is saying and has said recently pretty big change in the wake of all this currency action 74 chance of a probability of a rate cut in september. Also another one in december and then toying with the idea of that third rate cut come january, 48 probability but all of that may be too aggressive or at least be priced with more certainty than the fed seems to have. The fed gave that cut last time, future cuts may be based more on economic data, specifically whether or not the tariff issues weaken the economy theres some sympathy of letting u. S. Rates align better with lower global rates now the fed will be concerned by the way of training the market to think every time the president raises tariffs, does the fed have to cut rates . Thats why its important to see what bullard said. He said rates are in the neighborhood or the right neighborhood of where they need to be, expects maybe one more cut this year but its a losing game for the fed to respond to market moves and the fed cannot react to daytoday trade wars that are out there the market was reined back in before like when it priced in a 50base cut in july. This could be one of those moments the fed will have to rein things back in and redirect the market toward the reality it sees rather than the reality the market wants to see. Lets talk all of this. Shore matthews, chief Investment Officer at hondius Capital Management joins us as well as alex morgan. Very good afternoon to you both. Alex, if i start with you and this chinese currency move, what is your take for what that implies for the health of the chinese economy . I think what we saw yesterday was the chinese flexing their economic muscles whats the real takeaway from investors is were starting to see these trade tensions spill over into a broader economic fallout. Youre talking about two countries here coming together with fundamentally different economic structures trying to work out their differences now, i know the markets are taking a little bit of a breather today, but lets be clear, at the end of the day we are talking about the relationship between an emerging superpower such as china and an established superpower such as america. This will not be solved in one day or one weekend of conferences. We will have these flash points. So should investors pull back on risk during flareup moments like this or should they use the opportunity to buy and think long term . Right now i think its hard to work out where the steps are from this particular pressure point. There is definitely a lot of economic flexing going on yesterday. Im concerned that there is now the potential for this to spill over into a broader slowdown the areas that i actually have the most concern about are not u. S. Or chinese stocks, its those countries caught in the middle, those ones caught in the cross, particularly the European Economic engine that seems to be bad low stalling in the First Six Months of this year as this u. S. China Economic pressure is beginning to leave its mark on those areas. Shawn, is the rebound today something thats warngt warrantn your eyes . I think its just a trading bounce the Global Market is slowing down its been slowing down the last six months we have an economy on a global basis slowing down if we look at Inflation Expectations which are really an important opponent of what people think about, the fiveyears out have gone down tremendously tips are trading incredibly low so Inflation Expectations continue to move down. If we look at whats going on on yield curves, theyre all flattening because everyone is just piling into duration. Thats a sign that theres trouble out there. I think you clearly have a slowdown thats in place. Its a sign people think theres trouble out there. But thats expectations if you have expectations you think there are problems, effectively they become problems in the financial business. So youve been looking for opportunities in the credit space. Are you showing any signs of acute pain in the credit market . I think credit has performed pretty well. It has performed okay. I think part of it is theres duration so people are still piling into the fixed income space and high yield is still getting some of that money the reality is its starting to correlate with equities. I think equities will have a problem at least in the short run. If we think about whats going to happen over the next six months, youre going to have lots of Central Bank Intervention with liquidity coming into the system as that happens, i think the equity markets do okay in the short run but the reality is if we look further out, the Inflation Expectation if it doesnt change will be a significant problem next year. Courtney, you said earlier you were starting to look at stocks you really like or sectors you really like with this pullback what has been your top pick in the last 24 hours. You know, its been interesting. Were probably going to talk about some top picks later on, but i have a very balanced portfolio and then i have my play pool where i say, okay, these are names that i think are going to do well if they come in, they have a sound fundamental story and i candidly like those companies that have a strong play on the consumer, twothirds of the economy. Whether you feel that theres a global slowdown or not, the consumer right now is holding us up i think kelly just recently was talking about shes not even buying cars anymore. Shes like if i lose my car or it gets repossessed, guess what, im going to get in an uber. So uber is a name i like im looking at still facebook. You can think about tech however you want to think about it this is going to be a technology fundamentallydriven market as we move forward. Tech is going to drive us into the future whether you like tech today or not, thats up to you. But long term you have to be exposed to technology. China, you think about the emerging markets indices you may not like china right now or the tensions or cant stomach the risk but for the long term 40 of our indices are full of which i these stocks if you have your money in pensions and someone is buying the mmci index, youre getting tremendous exposure to china whether you like it or not on the long term, its an emerging economy so i do agree with you that the trade tensions are tremendous but i think having that superpower, i disagree with mr. Kudlow saying it doesnt have the power it had 20 years ago, i think thats absolutely insane, it has more power. You have to have exposure to this economy and you will have. We will leave it there. Shawn and alex, thank you very much. Weve got 46 minutes left of trade. Were up about 250 points on the dow. Coming up well take a look at how investors Risk Appetite is changing in light of the new volatility. Plus Fred Bergsten will tell us why he thinks china is not manipulating its currency. And the jolts jobs report measuring the number of job openings in the u. S. Mostly unchanged in june coming in at 7. 35 million it was the Third Straight month above 7 million which is pretty good the dow is up 252. We have got under 40 minutes left till the close. Well be right back. Your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. L in one place. Because when its decision time. You need decision tech. Only from fidelity. You need decision tech. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. 42 minutes left of trade lets head to mike for todays market dashboard. Heres what well have for you today. First we have the prevent defense. That is something teams employ when they have a lead and want to protect it. In the markets it is, the four horsemen of this stock market, see if you can guess those four names. And that championship season comparing this market to the closely related one in the years past and there is no i in trade. First, the prevent defense this is an indicator where you look at the risk on risk off index. It is composed of real market indicators like risk on currencies like treasuries, like oil, basically says how much risk are Global Investors willing to take at a given molt. What you see here is a significant decline. It puts it in context because this was a very steep risk on to risk off path that we took in the Fourth Quarter of last year. Also the selloff april into early june was even deeper than this one right now like a lot of indicators in this market, its showing a little bit oversold, a little bit overdone, a little bit defensive on the grand scheme, but not necessarily showing the really stretch conditions and really lopsided sentiment that you often see at a true flush or capitulation we dont always need that to get a little bit of a rebound, guys. All right, mike, see you in a bit. The u. S. Designating china as a currency manipulator, the first time weve seen that in 25 years after the chinese currency cracked that 7 level against the dollar yesterday however, our next guest says china is not in fact manipulating its currency. Fred bergsten, director emeritus at the Peterson Institute for International Economics joins us now. Fred, so whether they are or they arent, how do you see this unfolding from here . Well, china did manipulate very heavily from 2003 to 2013 they have not done so for over five years in fact they have been intervening on the other side of the market, they have been keeping their currency im sure the president ordered the secretary of the treasury to do so but it simply doesnt hold up the risk is that the president will use this designation as an excuse to increase his tariffs against china further. He could expand the coverage of imports covered, he could increase the tariffs on the products hes already got covered or hes about to cover on september 1 the risk is that he uses this as a justification to ratchet up the trade war further and even morph it into a currency war. But, fred, to that point he could use this or frankly pretty much anything as an excuse to increase the tariffs does it change the toolbox that hes got in front of him is it just tariffs thats the main tool . I dont think it changes the tool box at all. The only thing the announcement said about the currency designation was that they would engage with the imf. Well, they wont get any support in the imf for engaging with china unless they can produce some evidence that china is manipulating theyre going to get a very Cold Shoulder at the imf. They couldnt get the imf to help them ten years ago when china really was manipulating. So theres no additional tool that comes out of this what about the rest of the world, fred . If you think about germany that weaker yuan whether its manipulated or not is not helpful. And the china trade practices that President Trump has been going after is not helpful for the export economy i wonder whether President Trump will get support from some of our allies on this the administration has been making lukewarm efforts to line up multilateral support for the confrontation with china but one of the great shortcomings of their trade policy has been the failure to really put together a Multilateral Coalition to go at it together. Theres a widespread agreement around the world with the objectives of the president s efforts with the chinese and theres a lot of agreement with it here domestically across party lines. The disagreement is over the methods and the tactics. The fact that the president is trying to bludgeon china into agreement rather than work with them and negotiate changes is really doomed a failure. Part of that is because hes declared war on his own allies, through the steel tariffs, aluminum tariffs, threatening auto tariffs, attacking nato he has failed to align his allies, line up a Multilateral Coalition. The chinese never want to be isolated internationalinternati. They would be much more responsive to a multilateral effort instead, the president has isolated the United States rather than isolating china. Fred, how significant is it as you said at the top they have been propping up their currency since roughly 2012, 2013 how significant is it that they let it go past 7 when so clearly in 2016 and 2018 they didnt want to do that . I dont think its very significant. The currency has only dropped 2 or 3 over this period it went through a line that people had psychologically given importance to but its only a very modest decline. Im sure the market pressures are pushing the currency to go down further, and i suspect the chinese are still intervening to keep it from weakening i suspect the chinese are still intervening on our behalf to keep the currency from weakening further. Thats my strong guess from whats happening in the market because the market pressures given trumps tariffs, given the slowdown of the chinese economy, given the likelihood theyll reduce their Interest Rates to counter their downturn, all that is producing the market pressures which are weakening the rmb its not manipulation. Probably intervention still on the other side of the market. It could also, fred, be political, right the president campaigned on this promise, theres bipartisan support to label china a currency manipulator china bashing works, it just does he can go out to his rallies and say i did what president obama did not do, i labeled them a currency manipulator oh, im sure those are his motives. With any administration, the treasury and others in the white house had held him at bay for two and a half years at exactly those considerations now hes apparently reached his frustration level. Hes ordered the others, the secretary of the treasury to do something he knew was not right and so it is pure politics but it doesnt really per se change the situation on the ground much unless, as i say, it uses justification to do something even more extreme on the trade front. Fred bergsten, thanks for joining us. My pleasure after the break, Morgan Stanley out with a new bullish note on a pair of defense stocks well break down the call next. Later, disney among the best performers on the dow so far this year, but will that continue well preview the key things to watch from their Earnings Report due out after the bell today stand up if you are First Generation College student. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. Welcome back to closing bell. Time to get word on the street bernstein upgrading cigna to outperform with a 205 price target the analyst saying deal synergies and low valuation will offset policy risks. Ubs downgrading anheuserbusch saying its nipping it in the bud. And Morgan Stanley upgrading Northrop Grumman to overeight. The firm saying they are standouts in the defense sector. These sectors value 7 cash yield and structurally its a good sector to be in as things start to be a little more defensive. Kourtney, whats your take on all the deals that weve seen . Its an interesting sector. Its that sleepily sector people dont generally talk about i probably would veer towards, and some might not say this is a comparable stock, but cvs because the yield is so much better if youre going into both of theefz names or one of these names thats been not performing as well as we liked, id go with one that would givy a little better dividend yield on it. We are up by 245 points on the dow, not too far from the session highs. Here are the three things driving the action china steps back from the brink. Fed expectations in the spotlight as investors eye whether powell will cut rates further. And big earnings on deck, disney and wynn coming after the bell sue herera was a cnbc news update. Heres whats happening at this hour, everyone. The fbi is opening a domestic terrorism investigation into the shooting that killed three people and injured 13 others at the gilroy garlic food festival. The shooter, a 19yearold, had a target list including religious groups, federal buildings and both political parties. Members of both parties in congress are renewing their demands for federal gun legislation. Senate democratic leader Chuck Schumer says the gop Senate Majority should call an emergency session to vote on a background check bill that has already passed the house. Weve discussed this long enough this bill has bipartisan consensus. The experts, the groups, everyone all believes its the right thing to do. Discussions are fine, but lets pass this bill now weve discussed this for years and not gotten anything done i am a gun owner, i am a believer in the second amendment, and i am equally convinced that a background check to determine if someone is disqualified from buying a firearm is not an infringement on the second amendment. Its just common sense you are up to date. Thats the news update this hour sara, ill send it back downtown to you. Sue, thank you. S p and nasdaq up for the first time in seven days lets go back to mike santoli for the second dashboard mike. Sara, here i am four horsemen. Did you guess what they are . The four largest stocks in both the s p 500 and the nasdaq, which has been relatively rare in recent years. Take a look at how they have done yeartodate. Microsoft, apple, amazon, facebook, altogether have outperformed each of them the market this year to date however, youll see they have kind of rolled over and this is whats giving some people a little concern about where exactly the wherewithal will come from if we have the market show some resilience and go back toward those highs except for microsoft the others are more than 10 off their alltime highs last year so it seems like theyre hanging in there but microsoft seems perhaps to be the most important. It was down almost 5 yesterday. Its bouncing today, but these are the ones you might want to watch. Unless theres a total change and complexion of the market if were getting any more than a relief bounce. Apple has been the focus probably because of its higher exposure to china. For sure. On a fundamental basis you see the direct linkage between whats going on in the headlines with china and apple the rest of them is mostly about just general equity exposure people taking off risk and taking profits in some stocks that have run up a fair bit in recent months. Thats why yesterday was a very comprehensive, indiscriminate selloff mike, thanks very much. That despite apple showing strength in its latest earnings in china. Coming up, we have your last chance trade and kourtney is looking at cannabis. And investors appear to be taking a new bearish stance on ldi io et wel ventthose results, next welcome back many investors were surprised by the currency moves this week according to a new Goldman Sachs marquee poll, 61 of investors were expecting a continuation of steady trade negotiations and tariffs on china as recently at last friday. Only 15 expected an escalation of the china trade war with nontariff measures with us now, tony pascarello thank you for joining us before wedive into this, this poll was carried out when, before or after the tariffs . We did the survey last thursday and friday so in the immediate aftermath of the july 31st fed meeting and about halfway through the survey period, the tariff escalation dropped. And this is proprietary of your how many clients . Quick pulse of technology, this is with marquee marquee is our digital platform that our institutional clients access in the recent poll 1100 respondents. And the takeaway on this is people are definitely getting more risk averse are they also changing their allocations based on that . For sure. The sequencing is the june data reflected near record levels of investor bearishness the july snap moderated a bit more balance and the august data has seen the return to the cautious end of the spectrum to my eye more than a thre31 r of bearish to bullish responses. So just 8 of our clients say they added to Portfolio Risk during the month of july 21 said they have reduced risk during the month of july how do we read this is it a forwardlooking indicator or backward . Good question, sara not a crystal ball what were always looking for in the data is two things one a disjunction between sentiment and positioning. In this it doesnt appear to be much of a disjunction. But also when things reach extreme. Going back to the trade data, this was a very good tell. A month ago only 14 of our clients, 1 in 7, thought the trade situation would worsen between then and the end of the year now, we know exactly what happened so i think investors effectively were setting themselves up for a bit of surprise. Perhaps no surprise the Market Reaction across currencies, Interest Rates and equities has been so severe. What was the reaction internally on the Trading Floor from clients yesterday during that extraordinary trading day and what were some of the feedback, comments youre getting from clients. The price action spoke for itself the worst day of the year for the stock market in the currency markets a six standard deviation move. So proper repricing of asset markets. I think it speaks to the fact that, again, the market really wasnt prepared for what came to pass it set off a series of counter responses by the chinese so that was the surprise yesterday a shot across the bow, if you will so i think markets have repriced significantly. Today feels like a bit of a return to normalcy but it did require some Risk Transfer which we can see clearly in our data. On our desk as well, and we cover Institutional Investors, essentially a riskoff trade what was the system called again . Marquee. Essentially what you guys are tracking are what Institutional Investors are doing. Were seeing that mirrored as well on our desk on a consistent basis today across regions im just curious, is this equity driven do you guys bifurcate the equity data versus fixed income data . No. The correspondents could be Portfolio Managers of any stripe when we sum it up, what i find interesting is the setup today in a way mirrors a lot of the setup through late may, early june which means the fed is back under the microscope, trade tensions are front and center and investors are responding by derisking. Youll note this comes in the context of what is still a very respectable year for the equity market s p 500 is up 15 . There has been some volatility and turbulence of late but investors are very much pulled in on the risktaking front. Back to the survey quickly for your clients, the base case on brexit is now nodeal brexit, is that right . Exactly right more than half of our respondents expect a nodeal brexit, aka hard brexit. Of the 1100 respondents, not a single vote for a cancellation of brexit itself. Which is interesting in terms of what may or may not be priced in already. Global investors, u. S. Investors . Im just curious on this because thats also, depending on where theyre from, whos in there . Very much a Global Investor based. Call it heavier participation from the u. S. Based investors. Tony, thanks for joining us 20 minutes to go into the close. We are seeing a bounce for u. S. Stocks the dow is up about 265 points right now. More than 1 gains a lot of people arent convinced. They see a decline in crude oil. There are still Cautionary Tales out there. Were counting you down to disney earnings after the bell as well. More than 70 of analysts say this stock is a buy. Well break down the numbers and get the reaction from jim cramer coming up. Heres a check on shares of taketwo interactive they cited strong online growth up sharply were back in a couple of minutes. Dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. Welcome back to closing bell. Weve got 16 minutes until the market close on the left you see a twoday chart of the s p 500 big dive yesterday, steady decline, worst day of the year for the s p 500. You can see things are looking a lot calmer out there today and its pretty broad. Technology is leading the charge Consumer Discretionary and industrials also going strong. But again, sort of half the gains of the declines that we saw yesterday in terms of the makeup energy is still a loser on the session. Crude oil is down, brent is down, treasury yields are lower again, so a little bit of a turnaround. While stocks hover near session highs. That chart doesnt show that we opened significantly lower as well drug distributoring are moving on the news of a settlement. Drug distributors and Cardinal Health reportedly have proposed to settle opioid litigation for state attorneys general for 10 billion. The state ags countered with 45 billion. The states are just one track of massive litigation concerning industrys role in the Opioid Epidemic there are 2,000 other municipalities suing distributors, Drug Companies and others a settlement there could top 100 billion back over to you meg, thank you. Speaking of health care, tomorrow weve got an exclusive interview with cvs health ceo larry merlo. I think a stock kourtney already mentioned. I sure did. The deal has been mixed in terms of the digestion so earnings will be a key tell. Up next, we have your last chance trade. And disney and wynn on the clock. Disney up 27 so far this year well tell you what to watch in those reports next. As we head to break, here are three companies that fell to 52week lows in todays trade. M. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Your but as you get older,hing. 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. Healthier brain. Better life. Has been excellent. They really appreciate the military family and it really shows. With all that usaa offers why go with anybody else . We know their rates are good, we know that theyre always going to take care of us. It was an instant savings and i should have changed a long time ago. It was funny because when we would call another insurance company, hey would say oh we cant beat usaa were the webber family. Were the tenneys were the hayles, and were usaa members for life. Get your usaa Auto Insurance quote today. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Looking at session highs, dow up 300 lets check in on market movers. Shake shack jumping after reporting earnings beat. They also raised their fullyear guidance citing an increase in digital sales. That stock having a good day dean foods is tanking today. The company reporting a miss on the bottom line, on the top line, citing accelerating declines in the white milk category as consumers opt for plantbased options. Dean foods has fallen 90 over the past year. Its market cap under 100 million. Maybe im the last one on earth that buys gallons of milk. I buy lactosefree milk but i buy gallons of milk a week. When you have kids. Thats it. Everyone else is on almond milk. And goat milk and hemp milk just give me some whole milk. Weve got 11 minutes left to trade. Kourtney, whats your last chance trade yesterday i bought more of iipr its actually and youre looking like what in the world is this right. Its a reet that focuses on medical use cannabis leasing so theyll buy the real estate and lease it to the cannabis company. Its a safe way to play cannabis if theres such a way to play cannabis through the Real Estate Market if you think about statelicensed medical use cannabis entities and leasing to them, its an incredible marketplace. That stock had taken a little bit of a dive. Between yesterday and today i think im up 4 . Why are they protected . Why cant any Property Company do the same . It isnt that any Property Company cant do the same necessarily, but what they have done is theyre in the business of acquiring, owning and managing these properties. So its sort of like a first mover advantage to a certain extent what they ending up doing is targeting them in state. Its a very specialized market you have to be comfortable with it and you have to be able to understand what goes into the development of these properties. So i think its an incredibly interesting way to buy into the without buying actual cannabis stocks in canada, buying into the real estate aspect of it. A nice 130 runup this year. And its still got room to grow all right. Heres a check on our earnings scorecard 413 s p 500 companies have reported of those, 74 have beaten estimates, 8 met, 18 missed. After the bell well get results from a biggie, disney. Julia boorstin with a preview and expectations id say, julia, are pretty high. Thats right, sara. The number one thing to watch here for disney is how much growing revenue from disneys Parks Division as well as its movie studio help outweigh the growing costs of building disneys new streaming direct to consumer business. With the stock up 27 so far this year, analysts are protecting the company will grow its revenue 41 in its fiscal Third Quarter on gains from the studio Box Office Dominance weve seen as well as demand for its theme parks. But earnings per share are projected to decline 6. 5 from disneys investments in its streaming services among some tough comps among other things back over to you. Julia, great stuff. We look forward to those numbers. Were also going to get wynn. The focus on wynn re sorts will be macaw. Acrackdown on one of the biggest junkets there putting pressure and the vip segment in particular consensus is that earnings will fall for wynn resorts 5. 9 to 1. 44 a share. Revenues will decline to 1. 6 billion. The ceo matt maddux will field questions about whats driving these declines in macaw. The stock is down 16 over the last month sara. Up next, seven minutes until the close. We are covering all the angles of this snapback rally. Dow is up 300, still less than half of the grndhaweosou tt lt yesterday. Well be right back. [ dogs barking ] what about him . Lets do it. [ sniffing ] come on. This summer, add a new member to the family. Hurry into the mercedesbenz summer event today for exceptional offers. Lease the glc 300 suv for just 419 a month at the mercedesbenz summer event. Going on now. [student] my degree from snhu has helped me tremendously. lively music the flexible class schedules allow me to run my catering business and be a mom and parent. Breakthrough at snhu. Edu. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Four minutes left to go in todays session. Time now for the closing countdown near session highs here as we bounce back from yesterdays sharp decline. Lets trade the close. Kevin hanks joins us from t td ameritrade. How convinced and how much faith do you have in this rally . Oh, i think this rally is at best, sara, very shaky i think weve only made back a small percentage of what we lost yesterday. With the move we saw overnight in some of the futures, i think what we should be expecting for the next coming few weeks is volatility, period what do you make of the breadth, both yesterday in the selling and today in the bounceback . Yeah, you know, i think that kind the fact that china actually helped their currency instead of devaluing it turned the futures around i thought that was that uncertainty turning into certainty at least for the time being i think really turned the futures around that was a pretty monster move in the futures overnight that recovered very quickly kevin, thank you very much for joining us lets send it over to mike for the third installment of the dashboard. Wilf, hello looking at that championship season a look back at the successful year in the past this is the s p 500. On top is the current rally from the december lows. On the bottom, thats the rally in 2016 off the february 2016 lows so we looked at this analogy a few times as you know. Its trajectory is pretty similar. You had the same thing back in 2016 were about 20 above those lows just about 20 above the lows right here as well its not going to go tick for tick but tells you generally the cadence. 2016 you had treasury yields, 10year below 2 for a good long time so obviously if it follows, we go like this we dont have an election this year, we dont know what any catalyst might be down the road but its interesting to look at this correctiafter a steep dire three years ago. Lets get out to rick santelli. If you look at a fiveday start, weve certainly stabilized but thats all you can say as a matter of fact, we are at 177 earlier. Were back to one basis point from unchanged at 172. We all talk about the vix and stocks nervous indicator look at the 10year treasury vix hovering at the highest level since february of 2018 finally another barometer of nervousness. This is a barclays highyield spread it definitely widened, which is nervousness, but not nearly as wide as past episodes. Now lets go to bertha on a counter trend tuesday nasdaq bounce. A reversal tuesday. Weve stabilized as well the big cap mega caps that took us down today are what are giving us the upside but all of them are still down for the week take a look at some of the earnings movers today, taketwo sup sup interactive and kla, both of them among the few stocks that are actually up for the week i also wanting to look at the wall flowers mylan, one of the worst performers for the week, down 8 over two days. Continuing to have problems and concerns about the opioid lawsuits back over to bob at the nyse. We have regained a little less than half the losses of yesterday. Semi conductor stocks, industrial stocks, Consumer Discretionary, aerospace and defense stocks strong. The one exception here energy. Oil is down 2 we got another twomonth low here and all sorts of new lows among some of the big lows, halliburton, apache, occidental. That is a depression in that group for sure how about some of the new lows here, carnival corp, ralph lauren, tapestry the vix down below 20 after hitting close to 25 yesterday. Theres the closing bell the Dow Jones Industrial average closing above 26,000 once again the s p 500 up 36, near the highs for the day if you are just joining us, good afternoon welcome to the closing bell. Here with mike santoli. Take a look how we finished up the day. Stocks climbed back some losses from yesterday if you add up the worst day of the year yesterday and the bounceback we saw today, we are still lower 1. 7 for the s p 500, 2 for the nasdaq but there was buying today, back over the 26,000 level in the dow. Ended up 313 points, right near session highs. S p 500 up 1. 3 . Nasdaq led the charge higher, led the charge lower yesterday, up 1. 4 . Russell 2000 index of small caps also had a pretty decent day. If you throw in the back ending of last week as well and snapshot august, were still down by 3 for the dow, 4. 2 for the nasdaq so todays bounce in perspective. Only one sector lower today by the end of close id also just point out yields, which have risen earlier in the session ended up lower as well so the 170 handle on the 10year incredibly low that of course that bearish picture that it points to what investors are expecting with the economy, whether or not it comes to pass. Its still tenuous because it continues the trends of yesterday. I dont know if its going to be another yuan fix but that did stabilize the market overnight it looked like it was another few hundred point drop heading into that. Once china stabilized their currency, things started rebounding around the world. Asia and europe closed lower today so the u. S. Stands out as being higher in that regard. We are on earnings watch today disney, wynn and a slew of others set to report any minute. Well bring you those numbers as soon as we get them. Joining us, first paul hickey, kourtneq gibson still with us and mike santoli over to you on how convincing the bounce was and how much money was being put to work after such a brutal day yesterday. I think the bounce i think the market acquitted itself pretty well here the challenge is always that a reflex bounce thats really just kind of a snap back because of overstretched conditions is going to look very similar to a real start of a genuine recovery i do think if you look at the volatility index going down from nearly 25 to below 20, thats a spike on the chart that usually means some of the anxiety has gotten drained out of the market. Some of the stocks that got hard hit yesterday really just got caught up in the undertow. But the s p really regained the intraday losses from yesterday there was such a big gap down at yesterdays open we have not yet gotten above that so you keep it on a short leash but the market really didnt kind of give you anything today that said uhoh, theres something sinister about it. Mike, intraday picture was interesting. On squawk alley earlier, the dow went negative. And the european close which suddenly turned negative in the last hour and the fact that weve picked up again off that flirtation with big red, quite encouraging. Quiet tuesday no headlines on the trader currency fronts. My interpretation is once you get later in the day toward 2 00, you realize nobody is out there forced to sell it doesnt seem as though theres anything systemic or stressed in the system and so, fine, you might as well do a little bargain hunting. We also heard from larry kudlow earlier on squawk on the street out of the white house and he said, look, talks are still on for september he didnt sound like there was this new superaggressive posture. They want to go after china for currency manipulation, they want china to move faster thats how he defended the latest round of tariffs. Wheres the market in terms of expectations for a trade deal and how much sort of escalation has been priced in you know whats really interesting and i want to go back for a second about what mike was saying. What you want to see are the sectors that led us into the downturn like we saw yesterday the massive selling in tech across the sectors leading us back out this morning and we saw that so sorry, bears, were seeing the trends that you typically wanting to see when youre coming out of what really was just kind of a blip is what well call it. I think the trade tensions are absolutely till going to be there. I dont know how mr. Kudlow thinks that china feels right now. If you want to negotiate with someone, do you something really bad to them and then say, oh, no, lets come back to the table and talk about it. I think were not playing very nicely in the sand box by the same token, i think its in everyones best interests to figure a way out of this its in the best interests of american companies, its in the best interests of chinese consumers and also Chinese Companies for us to be able to work this out and work it out together i would love to say this is not going to be a political ploy for the 2020 elections, but unfortunately i think thats the world in which we live right now and its likely not going to come to a conclusion likely until the latter part of next year thats my personal bet some economists may disagree, but i think this will drag on for a while. Weve got an earnings alert on wynn resorts. Contessa brewer has the details. The earnings per share are coming out in line with expectations here at 1. 44 wynn has come in with a revenue beat of 1. 66 billion versus the estimated 1. 60 billion that the street was calling for in the press release here, you see wynn resorts highlighting its strength in the core mass business in macaw rather than vip which had a little bit of decline year over year were going to hear maddox talking about how to make macaw more of a Tourist Destination but given what weve seen from other casinos with exposure in macaw, this is a pretty positive report for wynn. The stock up 1. 9 in extended trading. Contessa, thanks for that mike, going to be a close eye on this perhaps next quarter for what the currency move means to its macaw revenues well talk a little bit more about that beat which has seen the stock up about 1. 5 . Firstly, disney numbers are out. Julia has them for us. We see disney revenues and earnings falling short of analysts expectations earnings coming in at 1. 35 adjusted versus estimates of 1. 75. There are a couple of interesting items in here, many of them from the integration at fox that seem to be behind that fox. Revenues also missing estimates coming in at 20. 25 billion versus estimates of 24. 7 billion. Bob iger in his statement here saying the reflects reflect the efforts to effectively integrate the 21st century fox assets. Looking at what is behind those lowerthanexpected numbers, studio entertainment operating income coming in lower than expected at 792 million versus the 1 billion expected. That is because of dark phoe x phoenix the 21st century fox film the Company Recorded a film cost impairment because of dark phoenix which was a big disappointment at the box Office Another factor here weighing on these results, the company says the directtoconsumer and International Division, that division showing a larger loss than expected. Operating income loss of 553 million in the quarter the company saying that the increase in operating loss at the directtoconsumer International Division was due to the consolidation of hulu, the rampup investment in disney plus an costs associated with the upcoming launch of disney plus disney shares are down nearly 5 in afterhours trading parks and resorts, revenues iin krees creased 7 but operating income also lower than expected back over to you julia, thanks so much mike, Media Networks, the significant miss and also studio and entertainment. Parks solid and directtoconsumer a little ahead. But this is a surprise. A bit of a surprise it seems like a little bit of a cleanup quarter with a lot of these items. In the studio you have an acquired film. First of all, disney doesnt give guidance so sometimes theres a little bit of play but its without a doubt a disappointment investors had gotten, first of all, very focused on the longterm story believing the strategy is right in terms of direct to consumer and also that the studio was incredibly reliable so i do think you had a little bit of that premium in there for the stability that got a little defied by these numbers. But just a little bit of that premium being taken out is the way i would interpret the first trade here. Paul, your first take on disney we sent out a report to clients this afternoon saying the august quarter is historically the weakest quarter in terms of stock price reaction 10 out of the last 11 august quarterly reports, the stock has gapped down following the report this will make it 11 out of 12 but i think for the longer term i wouldnt worry too much about it the story with disney is the streaming Service Launching later on, so investors who are bullish on the name could use this as a buying opportunity the stock has done great over the last several years, but august quarter has historically been just the worst quarter as far as the Stock Performance in reaction to those Earnings Reports. We should note you own the stock. Yeah, so sorry, go ahead, paul yeah. So its one day. Earnings report, longer term picture, disney is to focus on the streaming service and the direct to consumer and so i think that hasnt even launched yet. Kourtney, clearly theres going to be a lot of talk about the over the top service and what disney can bring but its going to be a long time before that revenue makes up the misses we saw in studio here. Is this a concern particularly given the runup the stock had had . For me personally, no 165 price target we have on it and theres two things that i think we need to focus on going forward. We can look in the Rearview Mirror all day long but this is a Company Everyone knows is solid. I dont know an Institutional Investor right now that would put the bear case on disney. Theres two things youve got to think about. With the disney plus streaming services, they say that theyre going to do i think the estimate is somewhere around 10 million in subs. We think theyll blow through that number. Its launching in november of this year. Pay very, very close attention to that launch and what they do in the december quarter. The other component folks arent talking as much about is actually the significant upside on the products. Think frozen 2, think star wars. Disney has so many arrows in its quiver and i think this is an incredibly important time. If you do like the name, which i do, and im looking at this like can we get off the air so i can buy a little bitmore but ultimately i think this is a name that you want in your portfolio for the long term and this is an interesting buying opportunity in this name. Well talk a lot more about disney throughout the hour we have a panel of experts to tell you what you should be doing with the miss, but i would note that the stock is coming back here. I know, im a little upset about it. Its coming back a little bit. I think everything kourtney laid out is understood. The company has done a great job of focusing everybody on that. By the way, its a flat earnings phase right now by design. Earnings this fiscal year is supposed to be the same as next fiscal year so they rebuilt this valuation premium because people used to never pay a multiple for the studio but now they think its automatic because of these franchises it makes sense, its just the stock has to adjust. And the stock is adjusting itself its growing, its maturing, its adapting to the marketplace. You dont see hundredyearold companies adjusting and adapting the way disney is right now. Im incredibly proud of what bob iger and that team are doing to stay current and relevant. Paul hickey, what did you make of the extent of yesterdays selloff and what that implies as to whether today was a legitimate bottom that we may have found you know, this short term where the market will be in the next hour or by tomorrow, who knows, but yesterday was a real shock. You saw 95 of stocks in the s p 500 down on the day. You saw 95 of the stocks on the nikkei down on the day 95 on the csi 500 which is chinas index and 95 of the stocks in the stock 600, which tracks europe. So all across the world people were just selling stocks without even thinking about it you look back historically the last time that happened was august 2015. Then august 2011 june 2013 and then august 2010 three of those four prior times all coincided with some sort of blowup in china so weve been here before, weve seen this kind of fear about china derailing the whole global rally and whole Global Economy were still here today, so so youre saying they all proved to be buying opportunities . Three months later following every time weve seen a similar occurrence, the market has been higher six months theres been seven out of eight times the market has been higher. Getting back to disney, no one buying disney in the last six months was buying it for this quarter. Okay, guys, thank you very much well leave it there paul hickey, kourtney gibson, thank you for joining us. Still ahead, mad moneys rss cramer will give us hi fit take on disney as well as todays market rebound and whether hes a buyer its already been a pretty busy afterHours Earnings session. Dez knee midisney missing earni estimates. Hertz reporting a profit and sales beat lets get back to julia and some of the misses here, julia. Just to dig into the parks and resorts division, which is an important one for disney, revenues for the quarter increased 7 , operating income only 4 , disneyland paris had a great quarter, higher average ticket prices, but it was disneyland that showed decreases, lower attendance partially offset by higher room rates and part of that was the launch of star wars galaxy edge. They limited the number of people that could come in. Really quickly, espn we saw higher advertising revenues in the quarter. Back to you. Down 3. 5 in afterhours trade. Lets get more on disneys results and bring in kara swisher, oliver pershut and rich tello. Good afternoon to you all. Rich, ill start with you. Whats your take on the headline, in particular the slight misses we saw in Media Networks and studio entertainment . Its just basically pressure from direct dtc and ott markets. What youre seeing today is a complete fragmentation of the media. Its not just netflix, its roughly 9,000 apps that are available on the roku devices. Those that these companies in different ways, you know, this may look like an end game to some, but to me its like season six, game of thrones. Oliver, broadcast was a miss, cable was a miss clearly thats been a few years now story. We knew espn was the problem how convinced are investors that they are going to be able to completely change their Business Model to deal with that and move into the future of streaming over yaall they have been executing pretty well. The misses have come from the integration of 21st century fox and some of the other areas theyre trying to monetize and execute on but theyre not doing it at the pace many investors hoped for. To us, they have one of the launchest catalogs of content out there. They have the largest movie studio theyre doing very, very well with. So a single quarter miss does not change the story for us at all. Kara, whats your take on the numbers and whether their Box Office Dominance that weve all been seeing the headlines on, whether that is real and sustainable . Well, i think it is i think when i talk to a lot of people in hollywood, they think disney is it when i was writing about issues about Tech Companies being broken up, four or five hollywood people wrote me, should disney be broken up, which is odd to hear i think they dominate in content. They dominate in the studio business bob iger is a terrific executive in that regard and really has a taste for where the future is going. I think the question is what happens with their streaming, which they have gotten to very late disney has a long history of sort of screwing up around the internet and they have tried a lot of things and i think this time they have to get it right because the audience is going elsewhere. Even though they have the content, theyll have to make a big bet on themselves being the distributor of that terrific content they have. So thats really the question is how its going whats it going to look like in a year is the stuff id be more interested in hearing and seeing how they do in this new streaming service. Wall street is optimistic, kara the stock is up 30 so far this year, one of the best performers they liked the announcement of the price on disney. Right. Netflix had a stumble last quarter. Im just wonder how you see the streaming wars shaking out over the next 12 months who are the winners and who are the leaders . I think netflix is pretty good at it they have had years of doing this and really understand it. Coming into this business disney is sort of fresh to it at the same time, theyre going to make a lot of stumbles themselves i think all these Media Companies have made huge errors in not getting into this much sooner but the fact of the matter is theyre disney and have really competent executives so the question is can they, even if netflix stumbles, their stumbles are still the best so the questiones can they be that good can they understand technology correctly and appeal to the new audiences. Rich, where do you stand on how many subs theyll be able to accumulate. Their guidance is 90, 100 million. I dont think their guidance will be 90, 100 million. I think theyll have price elasticity and raise prices over time best case scenario, were looking at an 8 billion franchise on an annual basis thats very small. Quarter percent. Quarter of some of their other businesses so what does winning look like for them are they winning at the expense of Everything Else over time, over the next 30, 40 years will this dtc business outpace that 30 billion theyre going to lose otherwise. You have to think about this industry more of a sas model nobody makes Computer Software on cds anymore nobody is going to distribute tv and content even cinematic content in the traditional ways anymore. So were all, everybody is going to be a dtc, otc model its just a question of whos going to be successful, whos going to have Pricing Power not over the next two years but over the next five, ten, 15 years did kn disney will be okay but right now the company is being valued like a unicorn because their relative valuation is twice that of all the other Media Companies so the investors are playing unicorn valuation and thats why were seeing volatility in the stock. Again, it goes back to the content library for them at the end of the day one of the biggest problem that these directtoconsumer companies have, you can binge watch an entire season of something in a weekend but it takes them a year to produce it. Thats not a good model when you dont have a huge library. Thats where i think disney has such a huge advantage, that they have such an enormous library, including some evergreen stuff that people will watch over and over and over again. Youre not going to watch the latest Netflix Series twice necessarily. There might be the exception, but in general its a onetime deal thats a problem for all the competitors, especially the new ones coming on board. Thats true i could watch beauty the beast a hundred times. Exactly. Oliver, kara and rich, thank you all for joining us. Thank you. Still ahead mad moneys jim cramer will llte us how you should be trading disney and whether we can trust todays rally. Were back in a couple minutes now that we finally figured out mikes theme is about football, well send it back over for the final dashboard of the day. American football, however that championship season was really a basketball play and movie so i mixed it up a little bit. So you were trying to throw us off. So no i in trade is about how the trend longer term in trade flows and in capital flows has actually been going away from integration to globalization for a while. This from henry mcvay over at kkr. I thought it was good context for the trade war talk weve been hearing about thinking about the last year and a half, this shows you that global total trade in merchandise as a percentage of gdp has been on the decline since basically 2008 so from right before the financial crisis you essentially had a peak in merchandise trade. A lot of countries just becoming more internally oriented in terms of their economies look at capital flows, its a pretty similar story right around that same time you peaked much more dramatically. This is right around the time of the commodity boom, the credit boom, emerging markets boom and subsequent bust. Theres a little bit less to go around in thamerms of export mae share and a lot of countries are fighting for it and separating off into trying to become a little more selfsufficient or have some advantage in these flows, guys. Everybody wants to know an exporter. Exactly. Still ahead, the president tweeting a clip of our jim cramer challenging the consensus on china and tariffs. Why dont we just say, you know what, pound sand, chinese we dont need your market. We dont get much from you we dont care about what you do with apple or starbucks or yum china or whatever. Up next, cramer is with us to react live to that tweet and give us his take on the trade wars impacts on the stocks and economy and todays nice rally with the dow closing up more than 300 points. First its time for a cnbc news update with sue herrera. Heres whats happening at this hour. Vice president pence says he is sickened by the recent Mass Shootings in el paso and dayton. This during a speech to the conservative Christian Organization Alliance Defending freedom. As President Trump said in his address to the nation yesterday, hate has no place in america. And the sinister ideologies of racism, bigotry and White Supremacy must be defeated the u. S. Ambassador to russia has submitted his resignation to President Trump jon huntsman says that he will step down october 3rd. His resignation comes amid widespread speculation that he may run for governor of utah again. And listen to this, a town in sweden has become the first to introduce an official begging permit requiring anyone who asks for money on the streets to pay for a license. The cost is 26 for three months it can be obtained by filling out a form online or at a police station. A valid i. D. Is also required. Youre up to de. At thats the news update this hour closing bell is back in two closing bell is back in two minutes timeindex, help me meet a clients need. Is the fund built to sell or built to last . Etfs are only part of a portfolio. So make it easy to explain. Ality fund that helps me get clients closer to their goals. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. We switched from ford. I switched from ram. I switched to chevy. We switched to chevy. We switched to chevy. For dependability. For these guys. And just look at it. We switched to chevy. See for yourself why people are switching at the chevy allstar open house. Get 20 below msrp on all 2019 silverado double cab pickups thats over 9,750 on this silverado. Find new roads at your local chevy dealer. Welcome back disney highlighting a busy afterhours earning season the media giant reporting disappointing profit and revenue. The stock getting hit a bit after hours. Wynn resorts and papa johns beating revenue expectations and hertz reporting stronger than expected earnings. We have two more companies that are out with earnings. Leslie picker has those numbers. Those two companies include Weight Watchers and match, both up very significantly in afterhours trading, over 10 each Weight Watchers still missing on the top line missing revenue estimates, reporting 369 million versus the 376 million that the street had estimated. But beat on the bottom line with eps of 78 Cents Per Share compared with 64 Cents Per Share analysts were expecting. But the real story here is member recruitment trends. Their subscriber growth 1. 5 year over year to 4. 6 million. The street was expecting a much lower number than that on match, also very significant afterhours performance here beating on both the top and bottom line, reporting 43 Cents Per Share on the bottom line versus 40 cents that the street was expecting. Top line about half a billion dollars, 498 million versus 489 million that analysts were estimating here. The real story behind those 18 gains youre seeing in the afterhours trading is tinder. Tinder added 1. 5 million subscribers from last year subscriber growth of 37 , mike incredible momentum in that business, leslie by the way, this move after hours in the stock would place it at an alltime high so its a rare situation right here even among some of the ecommerce stocks that would be at a new high all right. Were going to get outside the New York Stock Exchange to sara and wilf who are out there now, i think. Hey, sara. Yeah, were out here. We abandoned you, mike, because jim cramer is here with this hollywoodlike setup all the best of the best of cnbc doing mad money. Amazing fans as well. With a Live Audience here. This is not sunset boulevard, this is live tv. We wanted to get your thoughts on the market first on the comeback we saw today. Dow closed higher 311 points a little less than half of the declines we lost. I tell you what was significant to me and thank you for including me on the show, is they kept trying to knock the market down. You kept see stocks roll over. And then about 1 00, no margin calls, were just going to keep an even keel and thats when tech started bubbling back i like the stocks that were going up i like the fact that Companies Reported great quarters. Shake shack, you talked about shake shack. And so i was cheered by this but we know theres been no Real Progress from what you i know she loves currencies wilf, i am waiting for europe to embrace our strategy they have not. And they also closed lower today. Yes. Jim, this morning the futures bounce you were saying was maybe a little too soon. Right. What did you make of the fact that the dow sold off 11 30ish when europe closed, actually went negative, but the u. S. Market then recovered this afternoon. Asia was up, europe was up but u. S. Stood alone. We were down more we shouldnt have been given the fact everyone was hurt equally by the chinese devaluation so many times people get suckered i always say wait a second, europe will close. You get a downturn also people who bought stock right after the manipulation comment came out from treasury, they bought stock at apple 185 theyre not going to be fools, theyre going to sell some so i like it when the market opens up and then goes down because when it goes down, youve got a shot. Theres also some other tells going on oil closed lower treasury yields were lower. 5 the s p is oil i tell you, oil may be and i tweeted this, the single worst sector i may have ever seen other than when coal blew up in 2011 this is a lot of stocks. Big yields as well. But look at this, a double downgrade. What would occidental pay for anadarko right now, i dont know, 45 yields in the end having risen this morning did end lower. Is that a worrying sign . No, i dont think so. I just want things to calm down. If things calm down. If Peter Navarro gets his way, the fed cuts rates yesterday or fitch minutes from now but i want to see no flight yield. There are a lot of 6 yielders that nobody trusts they dont trust them. And yet oil is up overseas as you know brent oil is pretty high. If you want good deals in oil, look at total, bp look at the companies bp has a 6 plus yield, its one of the great Growth Stocks this is a conundrum. It does say world growth is flowing. Look, we want to switch focus now, jim, after hours disney traded down 5 or 6 now down about 3 , i believe a couple of misses Media Networks and studio. Is that a worry for you . Look, i think disney after that fabled Analyst Meeting in april took off like a bat out of hell i think its got to churn here i do believe this is going to be less and less of an important nearterm story. One of the things that bob iger has done, the ceo, hes trying to bridge the valley hes saying, look, dont pay attention, were doing fine. I think he can get away with that for a couple of quarters and then well have to see real growth from the properties that he bought. Disney now down only 2. 5 . Its a fox movie that was not so good. I want to hear about the granularity about how the theme parks performed. Theres a lot of people that like to scoop everybody and come out with headlines really quickly. I always like to think its something i learned my mom taught me are you into thinking . Homework, conference calls. The big question on disney, right, is whether its transformed its business malls enough to offset the cord cutting, the espn woes and look into the future with straightening. Thats why i want to see roku when i hear disney talk about cord cutting, it makes me want to buy roku i do believe that the 38 weekends a year dominated by disney, thats pretty much of a hit stream i wish Procter Gamble had that hit stream for different products hes always got to get cincinnati in. I tried to work in kroger but couldnt think of a reason. Kroger got hit pretty hard yesterday. Its fully domestic. Are you a buyer of a company like kroger. No, but i like walmart, target, costco and home depot. What are you watching to help decide whether were getting a meaningful bounce. As much as i want our country to be strong against china, it wouldnt be bad to see china go up remember when the uk, you used to focus on that market instead of whats going on at 10 downing street when will we return when we look at the british market as an entity unto itself and not part of a big extraneous issue . Its got international earnings, though thats why the pound move has an impact anyway you and i both know london is the center of the universe, i am not kidding. Weve been there together. London is. I am betting that one day well be talking about the vibrance of the uk. I hope so i hope youre right. Brexit or not, i guess. Jim, president ial tweet. Oh, yeah. A nice shoutout today. Dont tell my wife, okay. He cut a statement of yours its bit of a rhetorical question larry kudlow was my partner for four years at this great network. We finished each others sentences. Hes the only guy that calls me jimmy. It was a very nice kind of raucous conversation among david and sara and me. Integrated me on the currency manipulation. I asked larry, listen, why do we need china . And it came out as why do we need china instead of why do we need china . The president was obviously watching the show earlier today and will probably be watching mad money later. Whats on mad money. Weve got Josh Silverman whos going to talk about global warming, so maybe the president should stick to the morning show. Jim, thank you very much. This was fun it was a blast dont miss a special episode of mad money tonight at 6 00 p. M. Eastern right here at cnbc outside. Great crowd. You dont want to miss the rest of closing bell. Lots more still to come. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. Welcome back President Trump taking to twitter slamming googles ceo. Eamon javers has more. Reporter the president issuing a series of tweets really teeing off on the google ceo. The gist of the president s complaints here as we put the tweets up on the screen is that he met with him in the oval office and said what the president wanted to hear during that meeting, that google was not involved with chinas mill va military, they didnt help Hillary Clinton in 2016 and they are not planning to hurt him in any way in 2020. The president says it all sounded good until i watched kevin cernekee, a Google Engineer, say terrible things about what they did in 2016 and they want to make sure trump loses in 2020. The president goes on to quote lou dobbs and Peter Schweitzer saying google has suppressed negative stories about Hillary Clinton and boosted negative stores on donald trump all very illegal, we are watching google very closely this was tweeted earlier today and then deleted and retweeted this afternoon with some of the spelling errors and punctuation cleaned up ultimately here the white house is trying to push back on Silicon Valley which it feels is run by a bunch of liberals for its part, google is pushing back as well google issuing a statement this afternoon about all of this saying that the fired Google Engineer at the center of all of this is not accurate googles statement is the statements made by this disgruntled former employee are absolutely false we go to Great Lengths to build our products and enforce our policies in ways that dont take political leanings into account. Now, i asked a white house official a short time ago if the white house or the president has any evidence that what this former Google Engineer said is true about googles political bias in terms of search results. The white house acknowledges they dont have any evidence, but they say theyre looking into it, guys. Eamon, thank you very much. Eamon javers for us in washington. The u. S. Designating china as a currency manipulator. Our next guest says this latest move could be a sign of more china tariffs and currency actions to come. Dan clifton, head of policy research joins us now. Dan, very good afternoon to you. How significant is this . Do you think this opens up a new sort of toolbox of potential actions from the president on china . Well, thats right, wilf. Thanks for having me on. You look at the action itself, its largely symbolic. Theyll consult with the imf my sense is the imf is not going to find any serious currency devaluation by china and that will set up a new set of tools for the president to act one of the options that the administration is looking at right now is where a u. S. Company can petition the u. S. Government and then and say that theyre being hurt by currency devaluation where a Foreign Company could keep their prices lower and that the u. S. Would then be able to put tariffs on those products. That rule has been moving through the department of commerce there was some disagreement between the Treasury Department and the department of commerce, but now that treasury has labeled china a currency manipulator, it seems like those disagreements are past now, i would caution that this isnt imminent it doesnt mean its going to happen china pulled back on its currency today, but youre creating the tool to be able to move on Something Like that if there is a situation where the currency still becomes a problem in the administrations eyes so where do you expect these tensions beyond just on the currency to go from here china last night indicated that its stabilizing its currency and is not going to necessarily just, despite the u. S. , let it go on a oneway ticket lower. Sara, i think thats in their best interests, to be honest with you woebl th we believe that china is feeling a lot more economic pain than people realize im uncomfortable watching this go on and seeing the u. S. Economy weaken think about if youre a leader in china your currency is devalued, your supply chains leave, your reducing the purchasing power of consumers and having capital outflows the more the currency dpreesh depreciates, the more pressure builds on the chinese leadership the consensus over the last 48 hours is people talking about xi trying to wait out trump for the next 15 months that becomes harder if theyre going to be depreciating their currency but by nature, both sides are saying that they cant have an agreement right now. We have gone back to the corners and are trying to inflict as much pain on the other country as possible. So theres going to be more economic pain and the idea is that once you get so much pain, then you can bring both sides back to the table. The risk is that youve created so much pain that youve broken out the trust and it makes it harder to put the two sides back in a room together again. Dan clifton, thanks for joining us. Great, thank you. Up next, the ceo of Health Care Products tells us whether the trade war is threatening his expansion plans in china you should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Quick check on todays after Hours Earnings movers disney and wynn calls currently under way. Mostly a bunch of winners. Disney is down 2. 5 , but thats the loss is basically cut in half. Was down 5 up next, we will speak with ceo Health Care Distributor henry schein we wilfi o hl ndutow their business in china could be impacted by escalating trade Tensions Health care product provider henry schein down today. Henry schein is looking to expand particularly into china we will talk with stan bergman who joins us in an exclusive interview. In celebration of 30 years at the helm, we were just talking about how rare it is to have a ceo running a company for 30 years, stan. Yes, and i guess thats rare. Im happy to do it and planning on doing it for a while longer. And not bad for a 1,200 total shareholder return over that period. What is so sexy about selling dental equipment well, it is really all about the people. We have a great management team. It is a great market of course we know that good oral care is good for health care in general. People that take care of their teeth have a healthier, longer life, and we are in a very, very good market. But we have a great team thats been behind this company for decades. How have things changed over the 30 years structurally in terms of dental care some reports i read suggest millennials are lest interested in spending money on keeping their teeth healthy than previous generations. I think thats true to some extent having said that, theres much more focus today on specialty products, implants, replacing in other words not pulling out the tooth and using dentures but using implants, putting bone regeneration around that aligners are very, very important. Endodontic treatment is very important for the baby boomers i think thats plus the digitization of dentistry, the work flows of a dental office has changed significantly. We are in exciting times as oral care advances in the digital era. How much exposure do you have as a company to Health Insurance Reimbursement Policies and things like that i wonder about the attention on that area in the way of rebates and how the whole supply chain works. I dont think it impacts us from a Product Point of view however, we are really campaigning for Insurance Companies to understand that oral care can result in Better Health care. Wellness and prevention is far more important than treatment, and oral care is a key ncd, noncommunicable disease component that can help with the length of life, life expect answe yancy of life. Theres a huge opportunity for oral care. The current debate, democrats battling about what medicare for all means, does any of that affect you how do you see changes for the Health Care System evolving into the next election and beyond the comment on health care for all, the exact debate is not something we focus on, but were quite optimistic that oral care will receive greater coverage in years to come. The china concerns, does it prevent you from wanting to commit new investment into that market to grow weve been quite successful in china i mean it is a small base. Having said that, the middle class is growing theres an understanding, both by the people and by the government, of the importance of oral care. We are today quite an important player in advancing oral care in china, so we remain optimistic given this expanding middle class thats educated and understands the importance of oral care. Stan, thanks so much for joining us. Thank you great to see you, stan bergman of henry schein. We have 90 seconds left in the show the headline from the disney call guys so far is they will announce a bundle, disney plus, haul ee, 12. 99 a month. Will it hurt netflix do you think . I think it creates a competitive entry around the same price point theres been some concern around netflix that disney plus i self would be underselling in terms of price, so it is a more comprehensive package at a similar price of netflix i think the predominant feeling is theres room for more than one player it is interesting, though it is coming with disney saying there will be ramped up investment, in other words it will hurt margins in lead up to the launch plus, a little more trouble with the fox studio than they had been open with before. We will see how disney impacts the dow. It has been a big winner so far this year. The other thing is this time yesterday we were waiting for the yuan fix at 9 15 p. M is that going to be a driver you still need to watch it. One day doesnt make a trend, but it seems as if it was a little quiet on that front and it helped things for now the market was acting today as if, you know, it was hopefully looking toward a moment when the fever had broken a little bit on some of these issues, but we can and, of course, the asian market opened, the s p 500 is down 1. 7 this week, shanghai is down 3 plus so we will keep an eye on asian markets overnight. That does it for closing bell. Fast money begins right now. Live from the Nasdaq Market site overlooking new york citys times square, this is fast money im melissa lee. Your traders on the desk are tim seymour, karen finerman, guy adami. We will break down the headlines. We are watching shares of wynn and match, both stocks on the move after reporting results we are all over todays rally. Stocks seeming to bounce back after the worst selloff of the year is it an all clear we will debate that. We begin with a big mover after hours, disney. Well go straight to Julia Boorstin with the