Transcripts For CNBC Closing Bell 20240714

The yield curve inverts again, the fifth time in the last week but stocks are shrugging it off. Weaker than expected manufacturing data and this season of retail volatility continues sharp moves in the stocks with more earnings movers coming in the next hour. Watching signals of the Federal Reserve. Philadelphia fed president harker throwing some cold water on any imminent rate cuts. In december i was not supportive of the increase i was supportive of the decrease somewhat reluctantly this time around to get us back to where policy should be were roughly where neutral is i think we are roughly where neutral is right now and i think we should stay here for a while and see how things play out. Well get another view from the Federal Reserve in the next few minutes here on closing bell. Coming up, an interview with dallas fed president Robert Kaplan with steve live from jackson hole joining us for the entire final hour, is mark leeman mark, it does feel like theres a little more optimism out there around the u. S. Consumer and the overall economy even with the yield curve inverted again how do you see it . I think theres plenty of negativity we have moved from neutral to negative over the last month ago. Some signs are more positive and the conversations having with managers more and more are like we dont see the kind of negativity we are fearful of that gives me hope and optimism for the Fourth Quarter for a better end of the year. All right lets drill down on the stories we are watching today. Of course, bob pisani tracking the market action. Phil la biowith the latest on boeing i was just talking about that stock. Courtney reagan focusing on the retail earnings. Bob, first you on the market. Hello, david. The markets are still moving roughly in relation to bond yields and of course, we saw the yield curve briefly inverted the market also weakened shortly after the opening. Another reason we saw Different Things going on here we saw the august pmi report showing Manufacturing Activity was weak in august, it was below 50 indicating contraction. The lowest read in ten years and the Services Sector notably weaker tim moore at ihs market who did the survey released a statement saying the most concerning aspect of the data is sharp loss of momentum across the Services Sector you have got gyrating rates and a flattish market right now. Back to you. All right bob, thank you very much well send it to mike santoli for the market dashboards. Heres whats coming up start off with less than zero. You can imagine that has to do with yields. How green my valley, the valley reflects Investor Sentiment. We have pit and the pendulum swin swings back and forth in a big sector the stock market play it as it lei. A pun, not a tie to. Less than zero attention on the trillions of dollars of debt with negative yields this chart of Ned Davis Research shows negative real government yield. Well before we have negative nominal yields in a recent cycle we had periods of negative real yields after inflation this is the percentage of countries where Government Bond yields were negative the shaded areas are global slowdowns. So here you have in obviously 2008 and 09 2012 you can go on from here. Her point is that these this tends to peak somewhat later in a global slowdown. This was the exception coincides with when the stock market started to do better on a forward going basis. We dont know if this is a peak or not but at least it shows you we have been roughly in these waters before even if on a nominal basis negative yields is a pretty new thing, guys. Thank you what does that chart tell you, mark we have maximum fear in the marketplace and more fear running through the market i think it does precipitate potentially an oversold situation in the marketplace i think people being negative permeated the market and i think the global slowdown is real. Negative sentiment that people are willing to lepd countries money. I do. Listen we have a growth versus value gulf in the marketplace seeing inexpensive stocks. Like what i think the dividend yielding stocks are inexpensive the small caps stocks in a tough trading ra trading range for a time the Growth Stocks are really doing very well in the tech market because theyre growing faster than the overall market and will continue but the perception that things are slowing down globally is overdone and will have a few things to help the market. I think you will have a trade war end some point trump doesnt want to lose this one. Secondly, the boeing thing will be solved. The max problem will be solved and the ripple effects are genuine. Speaking of boeing, of course, the leader on the dow today and the Company Reportedly looking to increase production of the 737 max jets. Phil la bioalways on those stories. They did not push us away from the story circulating late morning that suppliers are starting to expect boeing to ramp up 737 production this is what its all about. When they bring back max production, currently at 42 planes per month, remember, they brought it down to 42 planes back in april. It was at 52 the expectation is that they are targeting 52 by month by february and then 57 per month by june. But there is a huge and when i say huge, a major caveat here. It all hinges on whether or not regulators including the faa sign off on the fixes, software fixes, and a return to service happens in the Fourth Quarter. If that doesnt happen you wont see 52 per month by february or 57 by june still shares moved higher as they did for some of the major suppliers. Spirit aero systems. They have kept the production at 52 per month the entire time guys, though, it would rise up to 57. You will see as we get closer to potentially seeing a fix for the 737 max. It is all contingent whether it happens in the Fourth Quarter. Adding 100 points right now to the dow boeing is. Thank you, phil. Retail names moving on earnings courtney has more. Dicks Sporting Goods with a Strong Quarter beating across the board best comps since 2016 and upping the fullyear forecast l brands missed on revenues. Bath and body works up 8 . Nordstrom shares up. 27 of the shares are short and Short Covering is likely playing a role in the stock move here up 16 . Earnings did beat and expense management there revenue missed and it also lowered the annual salings and Earnings Guidance and none think that list for tariffs a material issue not at this point anyway sara thank you. Stocks are moving higher at this hour. Up 91 points on the dow with 52 minutes until the close. Lets bring in john miller jack nanly is here from jpmorgan and mark lehman still with us. Jack, sounds like youre not as convinced as mark that its green light in terms of optimism on the markets i think things look pretty good right now i think we have seen that markets are extremely emotionally at the moment and that a little bit of news good or bad can really sway things quite a bit. Ten years into the cycle, a whole lot of anxiety i think that the data coming in are mixed at best. Theres concern for slowdown in the short term and for me no real risk of a recession. What does that mean for the market multiple . We are only off what 3 , 3. 5 from record highs how do you look at a fair value right now . I think theres room for multiple expansion right now Earnings Growth is looking okay. We have started to see some positive momentum even in the Second Quarter season. I think the fed keeps rates low and looks like they cut further, that allows for more multiple expansion in the market, as well. A lot of companies did meet or beat expectations and a lot were lowered. Absolutely. I think there was a huge quite a bit of pessimism baked into the season, especially because the comps were so hard, because we thought the economy was going to slow down faster than it has. John, talk about a hot market, mui mispalties, i dont know why every municipality in the country isnt taking this opportunity. Is it a good time to be a buyer . Yeah. Municipalities earned back the softness they expoorpsed in 2018 when the fed increased shortterm Interest Rates four times and in terms of the Interest Rate environment and the ratios relative to treasuries have kind of earned that back but just in terms of current tax exempt cash flow theres tremendous demand and still pretty reasonable valuations on a relative bases so supply is disappointing so i would anticipate to get a little bit of a bumpup in new issue supply as you suggest in terms of municipalities with more debt because the demand is there. The appetite increases of high tax states of not being able to deduct the tax, right . Thats definitely part of it. I think the Tax Advantages maybe overlooked even though the top bracket was cut from 39. 6 to 37, munis is xec exempt from the medicare tax and sort of the only game in town in terms of mitigating the effective tax rate so if you dont have as many Interest Rate concerns, investors arent necessarily beating that rates drop but not see the rates rise sharply for an nav deterioration. If rates stay in the Current Trading range then the tax benefits and the credit quality combined are actually fairly good for demand in this marketplace. So what are you telling people about stocks versus bonds right now . How much exposure to each . Low rates are i think here for the foreseeable future probably through the decade. I think you will have like i said, you have a dividend yield higher than the yields on the paper for the government. We are in a funk where the low yields are actually scary or i think for some it is scary. Youre also seeing it flow through the consumer a little bit and since the rates dropped sick to eight weeks, i havent seen news that the consumer is dead and the Wage Inflation helped, as well. I would be worrisome if the consumer felt tapped out and im not getting that sense from what i see. You look at target and others doing extremely well john miller, what are you latest expectations for the fed and what is the bopd marknd mar telling you right now . It is Pretty Amazing environment in that the i think u. S. Yields are really being dragged down by the Global Environment but looking at unemployment claims today or retail sales outperforming expectations last week, the Unemployment Rate still at 3. 7 , we are not really seeing a deterioration in municipal credit or the Revenue Streams that the states are collecting and still fairly good so the u. S. Economy remains very stable and thats been good for credit qualities but now having said that, with germany probably tipping in to a mild recession perhaps, Manufacturing Sector is weak, obviously the head winds of the trade war creating a Global Environment where the ecb will embark on more bond buying and the negative rates in europe and japan pulling down treasury rates. Two year to ten year is virtually flat, even in yield. So i dont think thats a really potent recession their signal. So i think that the u. S. Is still growing but those rates are dragged down by overseas bond purchase programs. Add him to the list saying dont worry about the spread inversion. I think 3 for 3 here. I think we are. Thank you so much. John and jack. John and jack. Coming up, we are just one sfx record scratch music plays throughout [ watch me walk by Spencer Ludwig ] yo dj, can i put in a request . Dont have no sass about this im on my way im on my way cant take no class about this to start your investment plan, find an advisor at massmutual. Com sfx [ mnemonic ] lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. The light beer youve been waiting for its my special friend, antonioy help with renters insurance . I didnt know geico helps with renters insurance. Yeah, and we could save a bunch too. Antonio fetch computer antonio . Ill get it. Get to know geico and see how much you could save on renters insurance. Central bankers meeting at the annual gather in wyoming. Steve, take it away. Yeah. Thanks very much here at jackson hole with mr. Kaplan thank you for joining us. Thank you, steve. Lets start with the outlook for the economy. How is the economy performing relative to where you thought we would be at this time . Its our expectations for growth are about 2 for this year f. You ask me in april, i would have said 2. 5 and right now id say the risk to our 2 forecast to the downside and the reason for that is even though the consumers very strong and is a key underlining of the economy, Manufacturing Sector is weak and probably weakening and Global Growth decelerating going to seep into the u. S. Economy so i would say were expecting 2 growth for the year and the risks are a little bit more to the downside. Can you put numbers on the Downside Risk . Recession possible as long as the consumer stays strong, we will have solid growth the thing im watching for is does this manufacturing weakness and Global Growth weakness seep into other sectors where eventually you start getting one or two negative job reports and then consumers start to be less robust i think we can avoid that but i think itll help if we have some policy stability it will help i think the fed may well have a role to play in helping to engineer that. What kind of role would that be to play further rate cuts ahead . I was in favor of the rate cut in july. I felt it was appropriate to make an adjustment part of this job is to be forward looking and theres a Risk Management part of the job and i want to take all the time between now and september to assess how the economys acting and id like to avoid having to take further action but i think im going to have an open mind about taking action over the at least number of months for me, the global the global yields but particularly the u. S. Global yield could have been and less obsessed to the 2 and the 10 and the whole curve moved down and the fed funds rate at 2 to 2. 25 is along the curve and a reality check saying its possible our Monetary Policy is tighter than i thought three or four months ago. When you look at global rates do you see that maybe you have to bring the fed rate more in line with global rates i dont think we need to do that i think the reason that global rates rates outside the us are low, you have the trade uncertainty has a much bigger effect of countries outside the u. S. With a much bigger percentage of gdp. Quantitative easing and the number of activities by the ecb and other Central Banks far more aggressive so i want to be careful not to follow other Central Banks in a race lower but i do watch what it says about prospects for future growth. Robert, the odds that you come on cnbc to talk on a day when the president hasnt tweeted about the Federal Reserve is very low. Here you are on another day where the president said that german Interest Rates are negative and that the fed is behind the curve and do you see that american Interest Rates ought to be competitive with foreign Interest Rates the answer is no. There should be some divergence and it makes sense based on underlying fundamentals that there is. Let me push back. The divergence right now is more than 200 basis points. Thats a lot. I understand. And so, what im focused on is in particular is whats the Growth Potential of the u. S. Economy . When i look outside the u. S. , im trying to look at whats going on in terms of Global Growth that might affect our Growth Potential and i think we need to adapt rates that fit the u. S. Economy and also other countries have lowered their rates, their Central Bank Rates to much lower levels, done more quantitative easing. Didnt help to stimulate more growth policies that grow the workforce, trade policy, infrastructure spending, policies to improve skills are probably more the center of gravity which are going to affect u. S. Economic performance and i think it pays to keep to broaden the discussion to other policies away from Monetary Policy. Those are not fed policies, fiscal policies. Its our job to call it out. Sara eisen has a question for you. Hi, president kaplan. Not just a divergence but inside your central bank. Why do you think theres such a wide opinion about where the economy is headed, how many rate cuts are needed, how much sti stimulus is needed its confusing. So lets try to put it in context. I mentioned earlier one of the challenges of this job is you got to be forward looking. Whats happened up to now is not as important ads what we think will happen over the horizon and the other thing is this is a Risk Management job so i think some of the disagreement you may hear will be about how you weight Risk Management what im saying is i think that when the fed funds rate is well above rates along the Treasury Curve and we are seeing some weakness in manufacturing and Global Growth i think it may make sense to take some action on the policy rate from a Risk Management point of view and different people have different points of view and im glad for the debate and for the disagreement and when i go into the meetings i listen to the opposing views i think people listen to me and we listen to each other and i think the debates a healthy thing actually. Finally, i was just curious about how you think the tariffs are filtering through to the economy especially in the final round of the few hundred billion of chinese imports to affect the american consumer. How does that factor into the forecast so heres what im hearing from business. I spent an extensive amount of time talking to business leaders. If you ask me april 30 i thought we would grow at 2. 5 plus may 1st we had the china issue but i found the big event that happened over the last three and a half months was the mexico threat, talking to businesses i talk to, in that it jarred them and made them realize even if we have trade agreements you could still have surprises and since that point a lot of businesses i speak to have become more cautious on capx and expansion plans. The consumer stayed strong but i think businesses now have internalized the trade uncertainty is going to be with us for some extended period of time even if the bilateral trade issues get resolved. So i see a much more cautious Business Community and what im hearing. Robert, one more thing. You said you want to avoid rate cuts but you are more inclined to do them than not. Is that fair to say . Im balancing the reason to be careful of cuts rates unless we have to, cutting rates hurts savers im cog any zanizant of that if we wait until we see weakness in the consumer to take action we probably waited too long and im well aware we dont have that much ambition so from a Risk Management point of view if i see continued weakness im going to be open minded about making adjustment in balancing the various risks. Robert kaplan, thank you for joining us. Thank you, steve. Sara, back to you. Thank you our kompcoverage continues tomo. But you will hear from all of them and sounding different on the economy and sounded worried of i thought that point on mexico is very interesting because we have to remember that was not related to trade the threat on tariffs with mexico but immigration. And i thought it was interesting to hear from kaplan and was an investment banker many years. Goldman sachs. Knew him in that role he is not kidding saying he talks to ceos and business leaders. Open minded as far as another rate cut i think is the other takeaway. Big earnings to hit after the bell, of course. That includes salesforce, gap, as well. As well. Af ter the as welannouncer fidelity af is redefining value with zero account fees for brokerage accounts. And zero minimums to open an account. Maybe ill win zeros really add up. Break, saved by zero welcome back to closing bell. Time now for the word on the street xw Goldman Sachs with a note on mutual funds they say it favors media and entertainment stocks. The rise of the sheconomy saying by 2030 45 of prime working age women in the country will be single and the spending hanlts could be a tail wind for Companies Like lululemon, ulta, chipotle and tesla so more purchasing power its an interesting way to look at who might benefit of a retail and spending perspective. Im way ahead of them with two daughters. What is your evidence of that the opportunity for people to target the sector is not to be missed on a lot of people an discretion they have is high and the brands that are winning are doing extremely well lululemon taking a share and creating a new category. Im not sure thats going to be just them but a lot ahead and the women with more and more buying power and wages continue to grow their Discretionary Income grows. How do you play my daughter works there i think the consumer has done well look at target and others. The haves continue to be the haves. The have nots continue to be the have nots. I think thats the continued trend to the end of the year. Check the markets now 28 minutes left in the trading session. S p up. 05 . Yield curve inverted again briefly and the fifth time in the last week keeping track. Stocks pretty much everybody else shrugging it off. Weaker than expected manufacturing data raises new worries over the health of the economy and season of retail volatility continues time now to get a cnbc news update with sue herera. A United Nations spokesperson said theyre concerned about the most recent forest fires in the amazon his comments came after brazils official monotering agency reported a sharp increase in wildfires this year. Were very concerned about the fires, both i think for the immediate damage that theyre causing and also because sustaining forest is crucial in our fight against Climate Change all forests are essential for the health of the entire world the will that Jeffrey Epstein signed two days before his suicide putts 577 million in assets in a trust fund which could make it much more difficult for accusers to collect. A state lawyers saying prying open the trust is not going to be easy and it could take years. And today is black womens equal pay day and the numbers are not pretty black women earn 61 cents for every dollar earned by white men meaning they work almost 20 mochts to receive the same amount white men do over 12 months over a 40year career, that is nearly 1 million in a shortfall according to the National Womens law center you have up to date. Guys, i will send it back downtown to you. David, sara . Okay. Thank you, sue. Coming up, we have the last chance trade and markets looking at a recent ipo down 25 from the offering price. And later, President Trump praising one influential business leader. The only one that calls me is tim cook he calls me, whenever theres a he calls me, whenever theres a problem, hell to introducing products faster. To managing website inventory. And network bandwidth. Ca. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Stand up if you are first genefamily, please stand. Re iny i will tell you this, Southern New Hampshire university can change the whole trajectory of your life. 22 minutes before we end the trading day here mixed market nasdaq down. Now a second dashboard from mike santoli. Thank you thursdays here we look at Investor Sentiment heres a longer term analysis of that data, calling it how green my valley because here are valleys in bullishness periods when the threeweek average of people saying that they were bullish about the stock market reached an extreme low. This is from sentiment trader. Com even though the s p down 6 or 7 at the worst levels of this month you do see really a bad mood among investors on average, the mosaic of indicators of bullish with this wall of worry. On the other hand, heres a clustering of these things that showed up in 2008 which was a trap because things got so extreme the financial crisis unfolding at the time. You dont trade off of this but an unusual level of anxiety probably because of the bond market for a relatively minor pullback in stocks so far, guys. This is exactly what you were talking about, mark. Are these levels so negative, extre extreme sentiment, that youre bullish . I dont think its extreme by any stretch. We havent had a good piece of news for the market to go forward and it is self made. I think we mix that. Mike, see you in a bit. Still to come, tesla second largest shareholder critical of leadership of musk and saying he could imagine the Company Without musk at the helm without musk at the helm plus, check out these biyou. 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,g 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. James anderson, a partner at teslas second largest shareholder, criticizing ceo elon musk in an interview with germanys manager magazine saying tesla could work without musk as ceo. Well, for more on that bring in colin rush from oppenheimer. Could it it could. Certainly the companys looked at a lot of management turnover recently and at this point the strategy is well in hand and being implemented and so if they brought in someone else that could use the vision that musk set forth and tap into him for additional color and then execute in a more focused way i think shareholders would be pleased. Ginn everything previously and the board chose not to dispatch him in particular the s. E. C. Fines and the changes that took place there, is there any reason to think that you cant ignore a large shareholder but could this happen . The board has put its stamp on the company and they have evolved the board a fair amount but it is still pretty much the same board previously. One of the biggest criticisms in the piece of James Anderson is lack of sort of Team Building that musk has done saying he could learn from jeff bezos how to build a team of like minded individuals like aws what does that look like at tesla . We have been following the executive departures whos running it whos around him i think from our perspective it is an intense environment to work in. Where people are under a great deal of stress and very heavy mandates to meet so i think theres an element of survival from our perspective and doesnt necessarily lead to really compelling Team Building as people are trying to get as much as they can and save themselves so i think theres a point to be had there in terms of internal culture is hard to get a full read on that but doesnt hurt to have the trust built amongst members to just be more efficient over time. Musk right now, you know, has been kind of kawhi yet he isnt tweeting the way he once did do you think hes modified or changed the behavior to the point of shareholders may be happier . Hes continued to operate on his own terms throughout his career and i dont think theres any reason to think that hes changed the material behavior. He maybe had handful of episodes where things came into the public realm but continued to operate as he has in the past. Whats your take on tesla he would be better served, ka that a that is rightic to share the burdens. It is unlikely the company would be better off without him doing everything, thinking everything has to go through him. That being said, i think mega lo maniacs are hard to convince. Are we talking about the right issue . Is this the big bearish issue with tesla i think musks personality helped the company capitalize itself and been important and now the real issue is that the automakers are slow in terms of responding they continue have a long road in ahead of them understanding what the real rules are to operate under and saw in the news today around the Companies Cutting the deal with california and the window is much bigger than we think investors think about this point. We think the competitive products disapointing. We think tesla if they continue to execute has an opportunity to outperform the market in a serious way over the next three to four years. I would assume you agree theres nobody other than elon musk to get them this far on the ability to raise capital and have people believe. I think thats true they made a bold move to go all electric when they did and committed to that and served the company well and may be time to evolve. Colin, thank you. With less than 15 minutes before the bell, heres where we individuals youre serving to understand their needs. Working with ibm watson we can bring together data spread across dozens of departments. Thd in the us a fuller view of the people we serve. Dear tech, dear tech, we need to look after everyone in our community. And we want to help our fellow human beings. You should be mad they gave this guy a promotion. Y prtg n mrn6in 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 chargyy and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. All right. We have got ten minutes to go now. Mark, time to ask you what your last chance trade final nine minutes. Seems so final, david i harken back to an ipo of uber with a tough time as a Public Company but i think we will have more news out of them through the next months and quarters and people will be reminded what kind of Growth Company this is i think you have to remember what theyre doing and the prospects are for the company and if you do and look at the stewardship of the company, you have a Great Company here. Trading lower and if you believe its a taxi company you wont want to own it. You believe that. We spoke after reporting the earnings, trying to articulate the loss was far more on paper than it really was to be fair. But theyre going to keep losing money for a long time and they have do get an Investor Base thats willing to your point to believe. Thats not so easy to do. No. I think like you said the quarter was muddy with a lot of things not to like about it. The explanations for it were poor and confused people on the top line some of the nontaxi stuff continues to grow and be more prominent. The Short Interest is extremely high and things settling up. The lockup, also. Taking a look at a company over time investors tip of their tongue as they start to execute and get the bad stuff behind them, talk about pessimism, thats as pessimistic i have heard in a while. All right last chance trade uber thank you for joining us today. Thank you. Now a little lift, up 122 thanks in part to boeing and jpmorgan and Goldman Sachs after the bell, earnings from salesforce lets preview that with deirdre bosa. Salesforce is deal happy. In june buying tableau august clicksoftware and also the low budget salesforce. Org for 300 million in april so investors want to know how the acquisitions fit in, affect profit and if the deal flow continues, especially as salesforce shares underperformed the broader markets and the peers this year and watch Service Cloud revenue. The veet is expecting 47 cents on revenue up 3. 95 billion. Guys thank you. Lets get an earnings preview on hp which is reporting after the bell josh has the key things to watch there. Hps expected to report q3 eps of 55 cents on revenue of 14. 6 billion most analysts have hold on the stock saying the pc business looks solid and well understood. The question is about supplies, ink, toner thats the Profit Center for the company. Whats the joutd look for that business expect questions of tariffs, hows the ceo navigating that challenge . Thank you. Kourtdny reagan with a look ahead to gaps earnings. I hope youre not sticking to retail expectations not good for the gap. Results after the bell, market apparel, shares down around 20 since it last reported comparable sales expected to fall 3 , namesake gap brand torque to be the laggard old navy for years had been the standout but the comps have started to languish, too, as of late and expected to fall in quarter. The split is still scheduled for later and will know if theres changes to the plans expected to fall 31 to 53 cents on a slight decrease in rev muis she tried to say 4. 022 billion. Thank you. Time now for the closing countdown. Lets trade the close. Mike gibbs joins us. Nice session here. What are you watching into the close, into powell, into the end of a week where the s p is up . Yeah. Bounced back today today is listless. Volume, i dont know where we are. We were running 40 below normal volume i think everybody is waiting to see what powell says tomorrow. We are stuck in a trading range. We are going to eventually break out and powell tomorrow to break it out to the upside and i doubt he does. That moves next to focus on trade. The trade talks come into september and probably still stuck with trade not moving positively any time soon and the market is stuck in the range and not surprised to go down and undercut that level before its all said and done as this plays out in the coming weeks. So much is dick tatated by te bond market. The Sector Performance is a mix. Staples and real estate are doing well usually you kind of see them on the opposite ends of the rate play whats the Sector Performance and the rate moves telling you about stocks yeah. Today was one of those days you throw it out of the window trying to determine what are the sectors telling us the banks have been extremely core lated to the yield curve spread and the banks index up over 1 . Makes no sense bond yields were up. Utilities did okay staples did okay they should be weak in a rising bond environment we have some weaker Economic Data, maybe money went there you had a market, low volume the fed is going to be talking tomorrow i think it was just one of those sessions you dont try to read too much in what we saw today. I think you wait, see what message he delivers an i dont think that he dials back the less dovish tone hahn the market wanted to hear i think he probably stays pretty much where they were because if you read the fed minutes yesterday theres a reason for them not to change their tone yet so i think the market comes away with maybe not disappointment but not excitement either and then starts to move on and think about trade and dictate how the market trades in the coming weeks. Mike gibbs, thank you. Lets send it over to another mike as in santoli for his third dashboard. David, yeah calling it the pit and the pendulum seen some swings in the market and sectors between fear and greed. Looks like we finish today pretty close to the upper side of this range but not getting through it pretty typical of the market right ahead of a known e swrent like the speech tomorrow for a neutral position at a fulcrum point. Year to date chart of the s p. I want to look at the retail winners today because it does show a massive swing in sentiment. Looking at the big winners of the beaten down s p retail names, all of these what unifies these names is that they have been poor performers and heavily shorted. Runs from 12 for bjs to 10 for gamestop that is basically telling you theyre scares the bears away. Thanks, mike. Last thursday when we might cycle low yields look at one week of tens back to that date. This is the highest yield close since then but since that was a 153 and almost 162 not a lot of cushion. Same true for one week of boons. Right now minus 64 finally, a lot of attention on 10s minus 2s im not sure if it means what it used to but toying with inversion once again bertha, the Early Morning swoon. Nasdaq clawed most of it back. Apple tells the tale. Trying to close up positive. But really not by much among the gainers today, alexion. But theres real strength that we are seeing overall is in this consumer stocks and food consumer stocks. Bob, im wondering whether people are stress eating food stocks ahead of Jerome Powell. Jurm staples with a good day. Combine hawkish comments from Federal Reserve officials, disappointing news on the manufacturing front, the Economic Data and get gyrating rates and a flat market right now. I agree with the prior comment wasnt a day for clear direction on where the market was going. Theres the closing bell s p 500 down 2 points. Welcome to closing bell. Im david faber in for wilfred frost today. Im sara eisen here with mike santoli. Wall street higher across the board and cut into higher only on the dow. Lost some of that momentum there. Dow closed up 2 points s p 500 closing just around the flat line. Did have some selling into the close. The nasdaq down. The russell down about a quarter of 1 . As far as what did well and what didnt today, financials, real estate, Consumer Staples all closing higher materials, health care, Energy Closing lower. Another day where we have mixed signals. We got the inversion which could be worrisome to people we got a market pmi number below 50 contraction. And then better leading indicators and better jobless claims and a debate ahead of powell tomorrow. We heard from Robert Kaplan nonvoting. But still sharing opinions and showing some divergence at the fed. Right we are up for the week well see what powell says tomorrow joining us to talk about the day, sean matthews, paul hickey joins us and mike santoli as always what stood out in the action pretty indy sizive day. I think they gave clearance for the financials to do a little rebounding and that was about the story. I think we are essentially kind of idling ahead of jay powells speech tomorrow to just try and see if it offers any clarity or articulation of what the intent is out there how they characterize this period of easing which is universally expected right now what is the market expectation for powell obviously how much and what sort of verbiage after that. I think the markets are in a situation where its no win for powell if hes too aggressive on too dovish in his thoughts people go after him for beholding to the president. If he is not the markets will get hit. I think he has to walk a tightrope. Monitoring the incoming data and will adjust whichever way we see necessary . Unfortunately you have some of the other people out there over the last couple of days who are the dissenters talking about that you shouldnt be doing anything he has a problem within the organization and hes got a problem outside. Hes dealing with a lot of cross currents himself and its just everyone believes theyre behind the curve. The question is can he get in front of the curve why is it really hard it doesnt go 50 basis points. 50 to get i think he would and i think hell also talk about how were going to moderate, look at whens going on in the world you know u. S. Is fine but outside external shock could be a real problem. Look at pmi today and services pmi where the consumer is playing and a weak number so the consumers been holding us up at 70 of the economy if theres any sort of break there thats a problem. Can you say well cut 50 but everythings fine, dont worry i dont think he can. Thats the problem. He will have to do that for a move in yields and the dollar maybe. Correct so the dollar keeps on if it stays here its a problem for the Global Economy so hes got to get that lower. Coordinated fiscal policy is the way to go here but everyones talking about tariffs. How do you get global coordinated fiscal policy . You cant. You cant get global coordinated anything right now paul hickey, it looks like every sector in the s p is higher except for materials and been a strong week. What do you do from this point waiting for powell with some uncertainty of what he will do next i think the setup coming into tomorrow for powell is probably a little bit better than it was at the start of the day because we have had some fed speakers out all day setting expectations low and i dont think well be surprised if he doesnt sound dovish and if he does then the markets will like that but so i think we have had a nice week this week. We had a bad week the prior week and late august we see this volatility and Going Forward from here today your prior guest mike gibbs saying dont read much into the action late august. Things move around and hard to explain why. Going forward daytoday volatility falls off an we start to see more people coming into work in september we are set up for a decent chance as a rally youve also done some work on etf trends looking at the seasonal trin seasonal trends over ten years and consistently positive and some negative returns, as well, from now to the end of sept september. What did you find . We always think about september being pretty bad over the last ten years the one month and threemonth forward periods from now are among the best for the year based on the last ten years and the etfs doing well are bio tech up in this period for ten straight years every year with a gain of 7 average brokers have done pretty well. A good day today and seen semis do well. So those groups have done well and the markets done well and what is interesting downside the etfs to do the worst are fixed income related you wouldnt buy or sell on seasonalities but we are extremely overbought levels right now with a seasonally rough time of the year so some upward move in yields and downward moves in price wouldnt be a surprise right here. Yeah. Paul, stay right there we want to get to josh lipton with breaking news on hp and its not about earnings. So hp reporting but the big news is that ceo is stepping down. Hes served as ceo since 2015 and will be a director on the board. The company has appointed enrique lawrence president of hps printing and Solutions Business that will be effective november 1st. I did catch up with dion ask him about the transition, why he is making the move and tells me due to a Family Health matter he stressed that, listen, always put his value family above all else and lives that value here did emphasize to me the company right now he leaves it in strong shape. I did ask him, listen, an issue front and center for the investors aside from news is tariffs, the threat they pose. He told me for personal systems that segment broadly covered they have reduced exposure for the printing business a shortterm impact and immaterial for operating margins. As for the print itself, hp reporting q3 eps of 58 cents versus expectations of 55. Revenue in line at 14. 6 billion. Q4 the forecast in line. 55 to 59 cents andcurrent year raising guidance 222 ahead of consensus the ceo will be stepping down. Back to you. Yeah. Something of a surprise one would think. He cites family matters, mike. You never know how a stock will react to that. I was looking at the reflex pop in the stock and seems really about the results and the guidance and the fact that the stock has been pounded and obviously sitting at a cheap level opposed to a response to this ceo change right now. Is it the tariff worries or underlying business problems a part of it. Its always viewed and even in the best light as a slow to no growth underlying business to manage better. Harvest the cash flows for a good dividend yield. Seemed like it wasnt in the right spot in terms of investor preference. Waiting salesforce numbers that are looking from First Impressions pretty strong. We look at it as a bellwether. Deirdre, looks like a beat hey, sara shares are popping after big beats on the top and bottom line 4 billion in revenue above estimates of 3. 95 billion. A big beat on the bottom line. 66 cents eps versus 47 cents expected guidance looking good. Full year also looking strong. Analysts expecting the slowest growth in a decade amid worries that the u. S. Market is saturated. It was a big beat on the bottom line which is making the stock pop and the guidance still, shares underperforming the broader markets and the peers year to date up 8 in 2019 on the call looking for commentary around the tableau acquisition. Guys 16 billion deal, david thank you. The share price underperformance was interesting because salesforce always beats expectations, doesnt it usually the bar is high because people are used to the fundamental momentum but in the last several months the stock did almost nothing and even as software in general is in favor and i think better numbers, catch up move in the stock, well below the highs of the year. Usually seen as a bellwether. Also just a tone didnt have a great quarter. Organic acquisition, yeah. Anything to take away from the earnings i think earnings are at best okay so you will have some deceleration into the second half of the year, as well. Getting back to the macro level, if we look at a cut today, theres a ninemonth lag to this right . Theres an opportunity to aggressively be in stocks sometime in the beginning of next year where all of a sudden you get the stimulus thats going to flow through and will start to hit and things will get better from here to there i think theres a real challenge out there. Appreciate your time. Thank you. Paul, as well. We should say jim cramer to interview the coceo. Today on mad. And thcae ll is important in all of these cases. Of these cases. Up greatness of an suv . Is it to carry cargo. Or to carry on a legacy . Its show of strength. Or its sign of intelligence . In crossing harsh terrain. X or breaking new ground . This is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedesbenz summer event, going on now. Lease the gla 250 suv for just 329 a month with credit toward your first months payment at the mercedesbenz summer event. T with credit toward your first months payment indistthat was awful. Tering why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Th seconds. Y prtg n central bankers gathering at the annual meeting in wyoming. Earlier today president s all weighed in on the decision to cut rates. My sense was we have added accommodation and it wasnt required in my view w. This very low Unemployment Rate, with wages rising, with the inflation rate staying close to the feds target, i think we are in a good place relative to the man dates we are asked to achieve. I didnt think the cut was appropriate, necessarily but i went along with it to get back to neutral my forecast is to hold where we are. I was in favor of the rate cut in july. I felt it was appropriate to make an adjustment i want to take all the time between now and september to assess how the economys acting and id like to avoid having to take further action. Paul mcculley joins us now. Former chief economist at pimco. I felt like today was the day the narrative dominated by the hawks. Kaplan seemed a little open. What are you getting from the fed right now . I think its misplaced to think in terms of hawk versus dove and an immediate sort of sense. Im on the dovish side i think the fed will cut in september. It is a done deal. The bigger issue is the feds in the midst of a huge Strategic Review of how it goes about its business and that is absolutely profound i think thats what chair powell will do tomorrow is lay out the parameters of what the tra teenlgic reviews about and happy to discuss it with you what do you mean . They have to do two things. Number one is they have to mark to market their reaction function the reaction function is their paradigm for how they respond to incoming data. And they have been profoundly wrong quite frankly on the inflation side for a decade. So they need to mark to market their reaction function. In part because the market relies upon the credibility of that reaction function and then the second thing theyve got to do is how do they fit into the firmament so therefore they have to think in terms of where do they fit from the stand point of independence of congress, the executive branch and the Fiscal Authority. I think its a profound twoprong strategic regime shift unfolding right now and what chair powell will talk about tomorrow. It is a little wonky i know. The market wants the know if it will ease again in november and december. Ease in september. Okay. And then what . Mr. Powell cant tell you thereafter but something far more profound which is the direction hes going on those two factors. His reaction function, accepting that we can live down here with a three handle on inflation. Thats entirely cool he has to do that. He needs to talk about in the next recession what will be the degree of cooperation between the fed and congress or the Fiscal Authority . And bottom line is the next recession the fed will properly be giving up a fair amount of independence because it needs fiscal help in the next recession because we are too close to zero both for inflation as well as their policy rate. Thats counting on congress somehow in the next recession to do something that would be constructive essentially to count on congress doing something in the next recession would imply lets prepare the game right now which means that the fed needs to proactively suggest that in the next recession that it wont be the only game in town when you say on the reaction function front that he has to communicate that the fed would be okay if inflation were to go to a three handle . We can live down here on a three handle on unemployment. Unemployment, sorry. Love to have a two handle on inflation. Got it. Dont underestimate the fact they missed for ten years and political independence for the fed is to cut off the black swan of hyper inflation and actually its the other direction both parts are rethinks. That suggests leaning further to the direction of rates lower than not. Absolutely, absolutely. Both of those factors point unambiguously to the fact to ease a. Matter of timing and pace and the fact that mr. Trump wants it to happen doesnt mean that mr. Trump is wrong. He actually is right even if uncouth. Why is he right right because our economy can grow faster without inflationary pressures. You went so far as on power lunch say that he is not wrong and he should speak up because the presidency depends on fed policy the attacks are so frequent. I think he is uses too much bombast uncouth, not polite. A bully. All of that is true. But its also true that the fed is not the Fourth Branch of government it was created by congress and its reasonable particularly dealing on the International Plane that he feels hamstrung by the fact that he is the head of state but has no influence over Monetary Policy so he is belly aching and actually belly aching for a good reason. Im not a trump man but i have to say when he is right he is right. Paul, thank you for joining us. Thank you. Good to see you. Our jackson hole coverage continues tomorrow dont miss the interviews. Of course chair president powell speaks at 10 00 a. M. This afternoon vm ware involving an acquisition or two. Josh has those details so vmware resultis and acquiring pivotal and carbon black in deals of 4. 8 billion the largest acquisitions yet for them building on this strength helping Companies Run software and data centers and clearly moving the company into security ceo just spoke with cnbc. Com about these deals saying why do the deals . Because the customers wanted both from the same vendor. In terms of carbon black with protection products and saying he partnered with the company before made the transition to the cloud. So the results themselves, coming in at a buck 60 the street at 1. 55 but for a lot more on this news, head to cnbc. Com and check out the piece and the interview with the ceo. Back to you guys. Yeah. I think squawkalley interviews him tomorrow courtney so for the Second Quarter gap reporting 63 cents a share beating expectations of 53 revenues just about in palestine to maybe call it a small miss. The street was looking for 4. 02 billion. Comparable sales missed. Old navy which was the standout for many, many years was actually much weaker than expected the comparable sales down 5 the street forecast those to fall about 1 . Gap still the weakest of the brands down 7 but that was about as expected. The company also affirming its Guidance Range and adjusted guidance of 205 to 215 and the street at 206. Down a little over 1 at this point. Sara thank you we have a news alert on impossible foods hi, sara. Impossible foods secondary shares are so hot right now in the market that the private company is now being valued at about 5 billion or as high as 5 billion keep in mind that at the companys last private fund raising round the valuation came in at about 2 billion so were seeing more than doubling of valuation for impossible foods i did talk to a partner over at Manhattan Venture Partners saying they bought secondary shares, 15 million worth and wanted 20 million but theyve got 15 million and seeking t acquire millions more and she also told me coming to impossible versus beyond matte and went public and had a successful run after its ipo she says impossible is showing they are clearly a stronger bet over beyond meat because of consumer demand and their growth trajectory i also did talk to ceo of impossible foods pat brown just a couple of weeks ago and asked him about the companys plans to go public. He remained coy about it and something that is on their radar and beyond meat, of course, shares up about 500 since the ipo and the market cap 9 billion. Back to you. We dont know the sales number on impossible foods, do we no. We dont all right well wait for that to see how much price times sales with beyond meat now trading at a near 55. And 9 billion as a market cap for beyond yeah got a bigger opportunity and at half the valuation to private market you know a question or a duopoly. If other players can come in . I think they can. Everyone can molecules are known. But they have been working on this for so long and the leaders. Thats who are helpful to be a leader. I have heard that impossible is better than beyond meat and analysts have written about that. I would hope so having tried yo meat. Yo meat. Stil you can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Y pryyyyyyy pry prty stocks closed flat today after fluctuating all day between gains and losses lets go back to mike santoli. Mike calling this one play it as it lei that is like the rest of the topics, the title of a work of fiction but this is the real deal leading Economic Indicators reported this morning for july a new alltime high. This chart shows whether theyre at a peak at 100 of the maximum level through history or below a peak level when this line is down it means that the leading indicators started to decline this goes back to 1959 adviser perspectives keeps this. Its been a lead time of when they peak and recession. At least seven months, often as much as a couple of years. Shaded is recessions and always had a dip beforehand this is encouraging. By the way, the yield curve or a version is one of the leading Economic Indicators measured so at this point by the data, this helps to explain perhaps why many fed Officials Say we dont see this economy crying out for too much more stimulus from the fed. We havent seen any rollover yet. Exactly basically firm at the highs even if its only mesodt gains. Thanks, mike. Every day, visionaries are creating the future. So, every day, we put our latest technology and unrivaled network to work. The United States Postal Service makes more ecommerce deliveries to homes than anyone else in the country. Investors,y 6 0n3,5craft. Youiz n ]x8gll explain thatg we have another deal to tell you about this afternoon hasbro making a 4 billion acquisition. The Company Buying is e1, a ukbased company paying 5 pounds 60p in each common share 31 premium to the volume weighted average price over the last 30 days for this company. I mentioned it to my colleagues and peppa the pig. No article. Her name peppa pig. This is the reason behind the deal its a phenomenon and has been actually a long running phenomenon, mike right . Back to four. I guess it twan in 2004. Hot as ever. Tv shows, books. Toys and merchandise. One of the first words kids say is peppa, peppa. Makes me feel old talking about in store synergies of 130 million and finance the deal with cash of between a billion and a billion quarter in cash and debt not giving a leverage target saying longterm unchanged between 2 and 2 1 2 times given they are borrowing as much as 3 billion. Large deal. For hasbro. 14 billion or so. Market cap. You can see the stock is down i would assume in part thats due to the leverage. Perhaps theres some people who dont appreciate peppa pig the way my colleagues do. When you have a child one side of the no, they arent that young. I know i just missed peppa. Huge. Proud owner of apparently the huge property of peppa. Uk based. A british accent e1 is also uk based. Sue with a news update for us. My kids watched peppa pig theyre 16. Harvey weinstein is scheduled to be arraigned monday on a new indictment as prosecutors seek to have jurors hear from an actress accusing him of a 1993 rape he is due in court the same day as an Appeals Court is expected to rule on the lawyers motion to move his trial out of new york city. Prosecutors say it should not delay, however, his september 9th trial date. Secretary of state pompeo laying a wreath at the National Canada war memorial before a series of meetings trade will be high on the agenda at the meetings. And the cdc warning about a possible drug resistant strain of salmonella. People were infected with the emerging strain from uniof 2018 to march of this year. 60 people were hospitalized. And new England Patriots player chung indicted on cocaine possession charges he is scheduled to be arraigned on wednesday the 32yearold spent 9 of 10 years with the patriots. You are up to date thats the news update this hour back to you. Sue, thank you. Boeing reportedly looking to increase production of the 737 max jets phil lebeau with an update for us. The expectation is that at some point this is certified by the faa and saying, look, we expect to have the max production jump up in february and then june of next year boeing long said that it expects to increase 737 max production from 42 per month where it is and they dropped it in april up to 52 at some point. The report today and boeing is not waving us off of this of 52 by february and then 57 by june. Thats why you see the stock moving higher today but theres a huge caveat here depending on the faa and others certifying that the fix for the max is good which they expect to appeal or apply to the government by the end of september, early october, and returns to service in the Fourth Quarter f. That doesnt happen, forget about it. They wont boost production by february or june and pushed out a little bit also take a look at spirit this is company that makes the fuselage for the 737 max moving higher on the expectation of already 52 a month and didnt drop the production schedule and why the stock is moving higher for spirit. Thank you. Still ahead, President Trump praising apple ceo tim cook giving other ceos a roadmap potentially for a Good Relationship with the white house. B[uy py yy . zpanysy apple reportedly planning to launch a slew of new products. Josh liptons here with the details. What will tim cook unveil at the companys big annual iphone show expect three new iphones according to bloomberg saying they look like the current lineup but a new camera system quality is often kritded as an important havent why consumers upgrade and expected to upgrade video recording, faster processors, also in the pipeline upgrades to ipads, the largest laptop in years and new versions of the watch as well as updates to airpods analysts think they sold 50 million of those already guys, back the you. Thank you. Meantime apple out with some warnings for its card holders. The titanic apple cards not stored in the wallet or your jean pocket. Tech giant saidit might cause fabrics like leather or denim disco lar ration that will not wash off and other rules in there. Store your card in a wallet or a bag made of soft materials dont place them in the place that contains keys and potentially other abrasive objects. Thats some tough rules for a credit card. Just stick it in the wallet you can you have to be careful. To me it says everything about how burn . A digital card. Right . Not necessarily the idea that they made ate priority to make sure its an indestructible item. Status symbol. The titanium itself. How nice. Apple ceo tim cook with a seemingly cozy relationship with President Trump. This is the Technology Giant faces major head winds from the trade war. This was President Trump yesterday discussing the administrations decision to delay the tariff on wireless phones and laptops coming from china. The only one that calls me is tim cook he calls me, whenever thes a problem hell call samsung, a competitor, not paying tariffs and tim cook would. I have to help him out short term with that problem its a Great American company. Samsung is in south korea. Not fair here to discuss corporate americas strategies to win favor with President Trump or whether its worth doing so, Jeffrey Sonnenfeld at the l school of management you know trump well and plenty of ceos well it seems to be positive to imagine but also a lot of risk that you take on in that relationship, as well. Certainly given the president s willingness to turn on people very quickly one would think do you agree youve said it all so well. We should go out right now because you that summarizes it nicely, david there are risks. Relationship risks volatility this is of course our first ceo president in American History. Unless you count harry truman as a haber dasher we have had good and bad relations with the Business Community out of the white house. Eisenhower, of course, good one with big business and kennedy had a bad one. So this we had high hopes and most of the major Business Community did not support him. 65 , 70 of them republican. Still greater than that percentage, almost 80 , didnt support him for president but high hopes and happy with regulatory rollbacks and tax issues i dont think many people except maybe you and i would have predicted a spectrum here, sort of a looking at jeff bezos and amonojaviers did a great piece today and tim cook with marilyn as trump runs hot and cold on people i do think tim cook given us a recipe and trump, the president told people, to get along with me, heres how to do it. Hes positioned himself that well certainly through history not as though ceos dont have interactions with the president. They do. Although often times you dont hear about it. He wanted to seemingly be known as the business president and he seems to want these relationships. Is he getting them, though you know, it is fitful. Even though he wants the relationships, much of the public doesnt appreciate hes not one of them. He positioned himself as one of them but they never saw him as one. His enterprise nowhere near the scale. When they make fun of him, critique him publicly, he hates to be driven into a wall if you havent noticed a short fuse for feeling criticized and pretty sensitive but you have seen some Companies Fall victim innocently to another one of his schemes which is to divide and conquer no president in American History divided the Business Community from itself as it has. It worked perhaps on the school yard fields and the primary and the Business Community didnt see it coming. He hates collective action he doesnt like tpp. He doesnt like nato he likes one on ones doesnt like multilaterals the ceos relying on trade associations and lobbyists, he says dont do that a personal relationship with me is the way to make progress on a discussion but sometimes again hell still vilify innocent people. Jeff . Yeah . Theres another piece of this were not talking about which is interesting in terms of the strategy what tim cook has shown us and cook came out punlly and criticized trump for environmental policies, response to the Charlottesville White nationalist issue. In 2017. So hes engaging and also to the spirit of this new Business Roundtable, you know, ceos as corporate citizens standing up for issues against him. I dont want to diminish tim cooks brilliance, vision, execution or sterling character but on all the issues you named and hearing from apples pr people in moments but he is not out front. He wasnt the first, second, third or 21st person to join the group criticizing charlottesville. On the religious freedom laws, at t, different issue, people got out in front tim cook used wisely collective action this is exciting taking a position about social impact is that if you really want to be critical they need to protect each other flanks. The Business Roundtable is mute on charlottesville and the other issues even the boy scouts of america board spoke out after the jamboree criticizing the president. The Business Community isnt good at that tim cook would but ri himself. He is a member of the Business Roundtable and wasnt out in front by himself waving a flag when you see jeff bezos getting isolated or looking at harleydavidson with a position on a trade issue is there they had to shut down a factory and open one in europe mary barre shut down she told both the republican and Democratic Senators long in advance of a plan. The white house informed that she was isolated and today we see that ford is isolated. That jim hackett is out there by himself. When youre out there by yourself fighting the white house on the ford issue it is basically the Auto Industry moved on they dont want a rollback in the emission standards in their efficiency. That california and the european markets want to sell into have the Higher Standards yeah. By the way, a fascinating topic. Not quite sure how we got there. We have to leave it for another day if thats okay. Business encyclopedia of jeff thank i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, i can break through. [announcer] breakthrough at snhu. Edu. Quadrupled their money by 2012 . And even now many experts predict the next gold rush is just beginning. So dont wait another day. Physical coins are easy to buy and sell and one of the best ways to protect your life savings [narrator] today, the u. S. Money reserve announces the Immediate Release of u. S. Governmentissued solid gold coins for the incredible price on your screen. These Gold American eagles are official gold coins pick up the phone and call americas gold authority, u. S. Money reserve. 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Dont wait another minute, call now to purchase your American Eagle coins at cost for the amazing price on your screen. Sneakeryy py v ey prtg n up next, betting big on pepa pig, having to do with Major Entertainment companies. Obviously it is called entertainment. It is a uk company this was a 4 biloneali dl. Has borough shares as you see has borough shares as you see down and you should be mad your smart fridge is unnecessarily complicated. But youre not mad, they markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. Are we supposed to dance . Boy boy bands without dancing are just ok. T a better than just ok unlimited plan with spotify premium included on americas best network. Only from at t. More for your thing. Thats our thing. More after this break. If youre just joining us, it has been a busy hour for news in the after hour sessions salesforce surging after beating earnings estimates, issuing strong guidance. After missing sales expectations and announcing a ceo change. Gap beating on the bottom line but reporting weaker samestore sales. That stock under pressure. We have deal news here after hours. Vm ware buying carbon black and Pivotal Software for a combined 4 billion has borough buying entertainment one. Entertainment one owns the pepa nt ow ipj mask brands which dokn what that is, but thank god david has been here. Bi vo the ant mindlessly marches on. Carrying up to 50 times its body weight. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now they give us excellent customer otservice, every time. E. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. Break. Y prtg n slzs1 yyyyyyy salesforce stock higher on an earnings beat jim cramer just sat down with the coceo keith block for an interview on mmm listen how he characterized the quarter. Obviously we had a Strong Quarter, 4 billion in revenue, up 22 in constant currency. We raised our guide to 16. 9 billion, 27 very excited great execution. Lots of Customer Success a lot of this is powered by the wave of Digital Transformation we are seeing all over the world. That cointerview on mad money as well as jims take on the volatility, what we saw today. Jay powell tomorrow, just over an hour from now, 6 00 p. M. Eastern time so, mike, as we look ahead to tomorrow, jay powell speaks at the 10 00 hour. A lot of other fed speakers throughout the day, and a market thats doing okay this week. It has. It has been holding up it is kind of coiled up. I think it is in a little bit of suspense whether powell will even attempt to try to characterize how theyre looking at the next couple of meetings because i dont know it is a foregone conclusion he will be explicit about the current path. He is a very big picture topic for his speech he probably will give a nod to sort of the committees assumption they will ease again, but i guess reflect the fact theres conflict on the committee. We will be following it closely. That doesit for us right here now on the 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 waiting to see as attention is turned to Jerome Powell tomorrow morning in jackson hole. Live on the ground with setup. We are following a pair of big after hours movers with salesforce we will tell you what is driving the action in these stocks later, boein