Transcripts For CNBC Closing Bell 20240714

We lower on the douby just 6 points some individual stock moves on the final trading day of august to hit check out ulta beauty on track for the worst day ever down around 30 after missing on earnings, revenue, estimates for the fullyear guidance also coming in light blooming brands seeing a spike around 2 00 p. M. After Jana Partners to take a 9 stake in the company saying in a filing it believes shares are undervalued and intends to have discussions with the company about a possible sale. Nearly 8 pop there. Shares of lions gate falling on a report of comcast dropping starz. Comcast is parent of cnbc. Joining us for the entire hour, final hour of the final month of trading for final day of the month of august is mark tepper to these individual stock moves like an ulta, wilfred mentioned target up 25 , ulta down almost 30 . Why are these such severe reactions to earnings, these reratings of the stocks individual story or the Market Investors are concerned overall about just carrying risk forward given everything thats happened over the course of the last few weeks with yield curve inverting. Thats driving a lot of volatility you have a lot of investors concerned about carrying risk into a threeday long weekend. Which is 50 longer than the normal weekend which means the chances of a tweet or some sort of a trade headline that negatively moves the market as you show up to the desk Tuesday Morning is more likely i think the investors are just a little more worried right now. Theres more anxiety in the market overall. The weekend is 50 longer we have that ahead of us. Sounds really long. Im up tuesday. What does that make it 100 . 58 minutes of trade to get through and lower on the dow lets get to the big stories today. Bob pisani with a look at the latest and phil lebeau but, bob, lets start with why. Getting out of august the trade that worked this week and the last couple of months is short cyclicals. Go long on Consumer Staples. Nice outperformance for the defensive names and if you didnt sell your Treasury Bonds, my heavens, longterm Treasury Bonds, 10 to 20 years, almost up 7 20plus up 10 thats extraordinary for Treasury Bonds i dont remember when ive seen that thats certainly working the problem is were getting movements. The cyclical rally was back this week united tech, caterpillar, dow, inc. Rallying. People dont believe it will last longer without clarity on whats happening on global trade and commerce back to you. Thank you turning now to the topic of trade, as the latest round of new tariffs set to take effect on sunday, kayla thas the latest in washington. 112 billion in goods leaving china september 1st, even after that list was truncated, still includes back to School Supplies and Sporting Goods it is the first of a slate of new tariff deadlines this fall in one month the existing 25 tariff on 250 billion rises to 30 . And then midnovember the white house will divide whether to slap auto tariffs on well see what state the economy is in. Both in the u. S. And in china at this time. Those deadlines are interspersed with three Federal Reserve meetings President Trump voicing a hope for monetary relief saying we dont have a tariff problem. We have a fed problem. The president departs for camp david 5 30 p. M. Eastern time and likely talking to reporters then. The only important Central Bank Meeting coming up, as well. Thank you. Lets focus on tesla getting some good news from china and gm with heat from the president phil has more for us in chicago. Reporter tesla shares with a bit of a pop this morning but given back some of that after word out of china that tesla models will be eligible for a purchase tax thats applied to electric vehicles in china waved. This is not just for tesla, all electric vehicles. Part of china trying to spur more sales over the next couple of months since they have been slowing down with regard to the president and his thoughts on General Motors, sent out a tweet this morning blasting the automaker saying General Motors is now one of the smallest auto manufacturers there, moved major plants to china before i came into office. Now, they should start moving back to america again. As if to say why arent they thats not going to hatch. They wont close down in plants in china and bring them back to the u. S. General motors employs 46,000 uaw workers here in the u. S. And the contract talks will heat up over the next couple of weeks. Well follow that wanted to ask you about news of another delay for the 737 max. What can you tell us there reporter it comes from United Airlines which had maintained a plan to bring the max back into service in early november now the airline is out saying we plan on doing that by december 19th in terms of the three u. S. Airlines that have the max in their fleet, that had been grounded since march, southwest is bringing it back in january now you see united bringing it back december 19th, thats the plan american remains early november. Dont be surprised if that changes because we dont know when theres a certification of this plane and speaking of which the faa out today saying as you take a look at shares of boeing that the joint authorities technical review, basically all of the Safety Agencies nine of them from around the world need a couple more weeks to do the work and then file their report on the certification of the plane. Filing the report is two weeks away does that mean its approval no, no, no. Lets be careful it means that the board will say, this is what we found looking into how the max was certified, the processes that were involved, whether or not there need to be changes, et cetera its very important. Its going to have some impact in terms of the faa determines with the recertification the actual recertification of the plane, boeing needs to submit the application they have a number of steps to go through we dont see that happening in the next couple of weeks likely to happen soon, maybe by the end of september and no definitive time line there phil, thank you very much boeing where do you stand on this i own boeing and delta. A great thing of delta is it has no max exposure whatsoever right . Thats a hedge . Thats the hedge and own boeing the world estimating they need 44,000 more jets over the course of the next 20 years thats a 7 trillion purchase. A lot of money and most of thats going to come from single aisle jets, boeings specialty. It is a cash flow timing event they will collect the revenues once that thing is no longer grounded. Boeing is up 6. 3 really the sixmonth chart that looks ugly. Yeah. Its hit a point where in my opinion all the bad news is already priced in. We should see more upside from here. Lets broaden out an talk about the broader markets. Bank of america with the latest results of the indicator dropping to the most bearish level since january, a buy signal for stocks. Joaning us now christina hooper. You getting more bullish yourself or not . We have been bullish really since the fed came out as being more dovish starting in june and certainly when it cut rates in july thats a continuation of what we see among other Central Banks creating a more accommodative environment and should be a positive for stocks. Yet stocks are down since the last fed meeting where they did cut rates. Right but they would have been down more i would argue had we not had that fed support because the news has been really awful, especially around trade and i think that that really has made the difference for stocks, that kind of fed dovishness. Does trade outweigh the fed given that we have seen an inverted yield curve for this week and stocks to rally is the market less concerned about that aspect . I think theres a tug of war really between the fed and trade. But at the end of the day i think the fed is going to provide a pretty significant level of support for stocks and other risk assets. That should help them perform relatively well in the coming months. What kinds of stocks do best on this fed call the growthier stocks tend to do best and in a slowing growth economy wed want to if focus on secular name stocks, as well theres such a scarcity in yield right now. Its a volatile month as we have touched on. What have been the key levels to keep an eye on going into september to see a breakout in either direction so theres a lot of resistance in the 2940 to 2950 range. We have been battling that all year in fact earlier today we touched 2940 and pulled back from it 2940s the level we think we really have to blow through, close above that level, in order to get more confident. But septembers typically a sleepier month the market comes alive in october and the next big thing on the schedule is fed meeting in our opinion and sometime in september we are going to meet with china those are the two big things we are in the november 18th. September 18th. We are in the camp that they need to cut 50 basis points just to flatten out the curve probably not going to do that. 93 probability of a 25 basis point cut. Leaves the sort of door open for potentially some disappointment if the fed isnt as agrgressive as the market or mark and others hope for. Theres room for disappointment given Market Expectations and what we expect to see from the fed but the important thing to focus on is that the fed is getting more dovish and that accommodation should provide support in the next several months to stocks. Does dovishness from other Central Banks help or hinder help dovishness everywhere helps stocks everywhere. I think it creates an environment where not only are u. S. Stocks supported but to a certain extent equities around the world are supported by central bank dovishness. What do you like . Tech stocks . Absolutely. And, of course, dividend paying stocks theres a real place for those in a portfolio given just how anemic yield has been. Thats the big debate now looking at whats positive for the month of august it is real estate, staples and do you stick with those defensive trades or go cyclical if your outlook is good i think as a trade the defensive trade will continue to work but the problem is for me longer Term Investment standpoint theyre so overvalued. Paying 25 times earnings to own a consumer staple thats growing earnings at 3 , 4 a year. So what do we like we like high growth names, as well within tech, we prefer software over semis and hardware. A favorite name is salesforce. Youre talking about a company that really they offer two businesses, something that makes companies more efficient, more profitable they generate all recurring revenues and the bear case against salesforce is if the economy slows down these businesses are going to cut enterprise spending. We havent seen that. Probably a last expense to cut. If it makes it more efficient, more profitable, why cut that . Thank you for joining us. Thank you. After the break, mike santoli with a special dashboard for the final trading day in the month. Later, the ceo of Amc Entertainment and why negotiations on the big screen fell through and as we head to break, a check on the data tracker today. Personal incomes in july rising. 1 speci personalpeinditop . Sndg d. 6 i cant believe it. That sophie opened up a wormhole through time . speaking japanese where am i . woman speaking french are you crazy nuts . Cyclist pip pip woman speaking french im here, look at me. Its completely your fault. man speaking french ok . Its me. Its my fault . No, i cant believe how easy it was to save hundreds of dollars on my Car Insurance with geico. pterodactyl screech believe it. Geico could save you 15 or more on Car Insurance. Welcome back to closing bell. We have a mini selloff we have seen gains and losses in the day. Still up nicely for the week with about a quarter percent decline for the s p. Go to mike santoli for the dashboards sara, heres what we have ahead. Monthly rentals. The stock market has actually had an odd month by month pattern to point out time to harvest . Some of the most successful trades of august maybe in danger of being unwound suddenly, last summer. What does it mean . And then well look at days growing shorter. Basically some consumer issues that maybe the consumer is getting wobbly in the outlook not the poirps this is a fivemonth chart of the s p 500 separated by calendar month and we have had a flip of the switch almost from month to month heres april in may you never had a day that closed above aprils high. That was very close but it was not above aprils high in june you never had a close below mays close. So essentially you have had all of these months operating outside the range of the prior month and head for august. We have not closed above julys close. It doesnt necessarily tell you which way were going in september but if this pattern holds it would mean that wed trade outside of either all the way above it or never go one way or the other trading through this months close now, now that we notice this pattern, not saying it continues but Something Interesting going on perhaps about Asset Allocation by month and systemic trading to pivot month end numbers. The other thing thats clear off that is august was much more volatile and less clear direction to it. Extremely choppy and essentially it was all about mean reversion we traded very, very vie lightningly within a pretty narrow range didnt necessarily resolve anything in terms of what the real trend is. Does this speak to you . No. Doesnt tell us much of anything at all again, the biggest thing to watch in september is the result of that fed meeting. I dont think much is going to happen next week people are still on vacation you start to come to midseptember, see action in the market again and all eyes on the fed. The fed needs to act, they need to act quickly to fix the yield curve. Worldwide our Interest Rates are just too high so theres really just not a lot of competition. Were the best game in town. Thats why the 10year yield is down to 1. 5 . 40 minutes until the close. Look at the market red on some of the sectors here weighing down the major averages on the s p, technology and Communication Services a bit weaker materials and industrials also cyclical are higher. Still ahead, a trickle down recession on the horizon well discuss what a dropoff in luxury spending could signal. Up next, ulta beauty on track for the worst day ever after earnings miss the mark 01 welcome back to the closing bell. Time for the word on the street. Earnings reaction edition. Ulta slammed today down 30 on pace for the worst day ever. The stock downgraded to hold by piper jaffray, wells fargo, Morgan Stanley and citigroup wall street reaction not positive cowen and jpmorgan maintaining overweight ratings deutsch bank upgrading abercrombie after citing tariff impact they expect valuation and positive trends for a floor for the stock. In the near term that was big earnings loser the other day. Ulta today mark, any of these look enticing we are buying ulta today. We probably just placed the order recently to buy it into our portfolio at a reasonable price. Nothing long term changed. People are not going to stop wearing makeup. Is this a firsttime buyer . Firsttime buyer. So were always looking for companies where we like the longterm growth story and then they pull back on an expectation miss and down 30 , i would definitely call that an expectations miss which makes the entry point somewhat attractive so we are building a position right now we think the longterm growth story is good. Management executes, a great job. It is a good buy Abercrombie Fitch, not a big fan there. Theres retailing disappointments in the last week or ten days. Do you think that concerns you for the u. S. Consumer more broadly or a couple of individuals . I think the u. S. Consumer overall has kind of changed. So the u. S. Consumer really is much more cost conscious and they also value time so thats why amazon has really been such a big mover over the course of the last several years because of convenience saves people time but when we look at the cost Conscious Consumer one of the things we look at is offprice retailers like tjmaxx and all the apparel that doesnt get sold at abercrombie and kohls and macys going to tjmaxx and consumers love that treasury hunt experience. They have to go in its working it continues to work look at the strength in lulu i wish theres an expectations miss to give us an opportunity to get earnings are next week. Crossing our fingers to get into it finally. Its always out of the price range. What about tariffs . Retailwarnings on tariffs. It doesnt quite feel universal. A company like Abercrombie Fitch cutting guidance on tariffs, is that legit theyre set to go into effect starting sunday and september. And yet, Dollar General boosted its forecast walmart and target seemed to be managing it okay how do you navigate that we own Dollar General and only 6 of their products are foreign sourced. That lot is coming from china and also committed to either substituting the 6 products or eliminating the skews completely and why Dollar Generals holding up well and 75 of the revenues from excuconsumables which is f or cleaning products it is stuff that you always need and prokts within retail to be in and then other pockets to avoid specifically the abercrombie kind of companies where theyre inside the mall and mall traffic is on the decline. Thats a secular head wind you dont want to fight. Still coming here, last chance play and a beer trade 50 extended weekend. Is there a bubble storming in the sparkling water market . Cocacola reportedly taking on bubly and lacroix. Heres a look at commodities to trade for the month. Wti crude and brent losing 6 t . Silver shining and it was a big month for gold closing bell will be right back do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back just under 30 minutes left of trade. Here are the key thimngs drivin the market action. Effective communication but the latest round of tariffs still set to go into effect on sunday and some positive Economic Data came out today Consumer Spending up 0. 6 in july we are currentlyjust above the flat line on the dow just below it on the s p. Time for a news update. Hurricane dorian strengthened to a major category 3 storm and extremely dangerous and poses a significant threat to florida. You can see residents are seen filling up the gas tanks. A military judge set january 11th, 2021, as a joint Death Penalty trial in guantanamo bay. On september 11th, 2001. The European Union calling on hong kong authorities to respect freedom of speech following the arrest and then release of two prom innocent prodemocracy protesters definitely the developments in hong kong, especially over the last hours, are extremely worrying we expect the authorities in hong kong to respect the freedom of assembly, expression and association, as well as the right of people to demonstrate peacefully you are up to date thats a cnbc news update at this hour. Back to you. Thank you. Ill send it over to mike santoli for the second dashboard of the session. Asking whether its time to harvest some of the trades that have worked extremely well, some of the styles this month it is a market of haves and have nots this chart shows a particular long short index what this does is represent a strategy of owning the highest momentum, most fast moving to the upside stocks while shorting the lowest momentum and a magnified version of momentum and see the big accelerations, the big spikes in the past and this is massive outperformance over the s p 500. This is early 2016 right here and then again right now and you have seen it in the last couple of days perhaps a little bit of a switchback on the strategy, some beaten up sectors picked up. This has happened at previous market turning point where is the strategy is successful and then reverse one thing to worry about is crowded positions as they unwind knocks something loose in the market and seems unstable environment perhaps. Doesnt have to be that way and usually to see mean reversion and the beaten up areas of the market to get a lift, guys. Mike, a high beat momentum and saying algos done well the trend following algos to put it basically trying to ride the stocks that are doing the best and moving the fastest while kicking aside those that have been left behind so its exacerbating the market moves a bit. Mike, see you in a bit. 3 33 ahead of the long 50 extended long weekend. In case youre wondering what youre hearing. Demand for sparkling water is growing cocacola is trying to get in on the action beverage digest reporting that the entrant of the wars could be launched as soon as by the end of this war. Joining us is dwayne stafford, executive editor at beverage digest great to see you tell us what you found out here in this little scoop about cocacolas plans for a sparkling brand. According to our sources, cocacola is ready to get in in a much bigger way. As you may know, pepsi has released sparkling water a year ago called bubbly thats been really taking on lacroix and the Market Leader for so long. Cocacola has taken a premium strategy with the dasani water and smartwater and now looking to go directly at pepsico and lacroix to grab the market share that they have run away with in the last couple of years. Dwayne, are these alternatives to sodas or are they alternatives to the traditional pellegrinos of this world of water with a fizz in them as someone whos partial to the latter. A big fan pellegrino is a number one. A few things going on you have mainstream drinkers wanting alternatives because of sugar or possibly various sweeteners and looking for something with no calories but its still the bubbles of a soft drink and so brands like lacroix and bubly and the new product of cocacola fit that bill. You have got the higher end brands like perrier. They come with a cache but, you know, sometimes you are just locking for an every day seltser and thats where the products tend to play. What is going to happen to lacroix . If you look at a chart of the National Beverage it is disastrous looking chart what are people saying in the industry its been a stunning set of events for lacroix over the last year and a half. This is the Market Leader and in essence running away with the market of course, they have got much more formidable competition not only from pepsico with a lot of Marketing Muscle but theyve also got a lot of competition from private label brands from various retailers. And at the sail time they have had a bad press over ingredients and some not founded and the company hasnt really figured out a way to counter these competitive threats with perhaps a new strategy, maybe even new activity at retail and so i think you should look to lacroix over the next year to really try to figure out a way to regain that footing in a meaningful way. If they dont, theyll continue to lose market share to Companies Like epsico and now potentially cocacola. Why doesnt coke triple down on tupochico thats the only brand that matters in my house. We have so many of the stupid glass bottles around. It is really a premium positioning from a Single Source in mexico. The kind of product that you are not necessarily going to scale to the same effect that you would a lacroix thats produced much more inexpensively. It is in basic traditional standard cans. Topo chico is hard to sort of do on the scale of the other products like lacroix and need another entrant to battle there and very important to this market because theres always a fear that a product like sparkling water could become commodityized like with still water and you need a premium strategy, as well. Thats what topo chico is for cocacola. Will move the needle for coke or pepsi i dont see how its different for coke because they own dasani and had a sparkling beverage for quite a while so they have been competing with lacroix and bubly as far as that goes we own pepsi i like pepsi i think its a great name as far as the beverage side goes but also the snack business, frito lay which is really growing and growing at a faster rate than competitors. Right now in style is Savory Snacks over sweet snacks and thinking about thats what frito lay is so pepsi would be our play here. Dwayne, are they really going to call it aha . Thats a trademarked name or hello bubbles. And so my sources are saying that one of the real options is potentially aha but you have got fresca a soft drink you probably remember thats a lemon that revived and taken that brand name for a sparkling soda water, carbonated water, Natural Flavors just like lacroix and selling that in canada now and reason our sources say one of the potential ways that they might go so you can perhaps lift that brand from canada and go toe to toe with a more standard can, standard 12 packs and compete in the same way that lacroix and bubly are at retail. Doesnt sound like great names. I dont know. I wasnt passing judgment. I kind hiya. Hiya thank you. Good story there you go. Good to talk to you. Hello bubbles weve got 20 minutes left to go before the closing bell on the markets, the dows actually positive right now. Its been hovering back and forth around the flat line for last few hours or so s ps also unchanged nasdaq underperforming still looking at gains of 2 across the board for the week of all the major averages shares of campbells soup jumping today. Well break down where the company is seeing growth next. Despite some big hits, the box office down 6. 5 from last year is netflix to blame . Adam aron will weigh in coming up heres checkin on the biggest dow winners of the month you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Welcome back 17 minutes left of trade the dows essentially flat on this the final trading day of august lets check in on individual market movers. American outdoor brands falling sharply on the heels of earnings yesterday. The company missed on the top and bottom line and a weaker than expected fullyear forecast citing tariffs that stock down 20 . On the flip side, shares of del higher after an earnings and revenue beat seeing strong sales. The stock up some 10 . We talk about Software Names earlier. What about hardware names . We like microsoft here. Mac book tells you to buy a surface laptop you like that commercial i havent seen it. Okay. So we like microsoft so they have a great product. Got to be a tiny portion of earnings. Correct the mane reason is the cloud thats where the Growth Opportunity is at. In our opinion the best offering related to the cloud one of the things they offer that none of the competitors bring to the table is a hybrid Cloud Solution so all of those companies that invested heavily in building out their internal i. T. Infrastructure over the course of the last few decades are reluctant to drop it and switch to the cloud abruptly so the hybrid offering of microsoft gives them the ability to bridge that gap so i like microsoft there. Another big mover today, campbells soup. Sara well, soup comeback at least soup stabilization. Campbells is surging today, highest level since 2018 after better results showing the tu turnaround under new ceo thanks to growth in snacks mainly organic revenue is up 46 and meals and beverages. Up 1 . That was the best result since Fourth Quarter 2016 for that category soup is stabilizing for the first time in years. And saying its a big focus on the company. Focusing on innovation and spending in that category. Some growth in stocks like goldfish and pret szels and ketl chips is fueling a bit of a rebound. Along with cost cutting and selling brands analysts say the barrier to the stock is valuation its a stock thats climbed more than 36 this year as Consumer Staples a hideout in market volatility and lower bond yields theres growth there on the plus side but to your point earlier, the question is, at what price right now . Its very expensive the growth rates arent very fast the package food is not an area to be right now. Wed rather be in walmart as you look at Consumer Staples very, very heavy in the grocery business, low margin and need to offset with high volume and doing everything they can to increase volume whether it be competing with amazon through ecommerce, curbside pickup, delivery doing well with that stuff and didnt matter if you want campbells soup or ramen noodles. They sell it to you. We have your last chance trade. Activist investors reportedly targeting groupon to buy back stock or sell the company. As we head to break, a check on the stock in august. Not pretty down almost 22 . You should be mad that this is your daily commute. You should be mad at people who forget theyre in public. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. Welcome back to closing bell. There is the sector heat map for the month of august. Slightly oddly organized not sure how utilities theres three green ones and the rest are red. Why is energy up there . The worst performing group for the month. Down 9 . An odd order. The numbers we think are right markets flat on the s p with just eight minutes. The only thing that worked here is also defensive low bond yield volatility trade. Time for the last chance trade. Mark, what have you gone for constellation brands. Investors are derisking heading into the weekend chips off the table or maybe just rotating out of cyclicals so we like constellation brands. People drink beer when times are good when times are bad people drink beer they have corona and with that you have the call option on Canopy Growth if cannabis is ever legalized in the u. S. We love this. From sparkling water to the allimportant sparkling amber nectar. Holiday weekend right . Stock down 2 over 2 months this is a big winner for so long outperforming the entire beer category and a few quarters messy. We have a 235 price target and maybe 15ish percent upside from here. Right now they are the Fastest Growing Beverage Company in the United States so all this talk about sparkling water, about pepsi, coke, whatever it might be this is the Fastest Growing beer company in the u. S. Tops all of it. Right almost seven minutes left to go in the session. Time for the closing countdown lets trade the close with sean cruise little changed on major averages what are you watching . How everything will shake out. I think its interesting that we are finishing this session this week kind of in a little bit of a continuation of that defense i trade that you were just talking about and i think that really goes to the psychology of investors with uncertainty and this morning getting that rally higher towards the top end of that range around 2940 thats been upside resistance moving forward so i actually thought it was interesting that you still saw the vix remaining elevated whereas previoulsy the vix pulling back closer to 15 but it locks like they decided to go a little bit more into a risk off stance into the defensive sectors to close out the week. What do you make of the retail earnings you have seen . I think what we saw from the retail earnings, actually, confirms to me what i think is showing up in some of the survey data and that is the consumer which really was the star for the gdp report yesterday is starting to get a little bit more cautious and we have seen that one in a lot of the sentiment data coming out. If you look at the expectations components, those have been falling off drastically and something to say that the consumers are getting more shaky in terms of their willingness to spend here in the future and if you look at retail earnings, some of the more high end types of stores, think of tiffanys or nordstrom, didnt do well. Seeing the performance on the retail side is a little bit more of the bargain shopper type of companies and where you see Dollar General, costco, walmart performed well in terms of Stock Performance an you see the caution from the consumer play out in the survey data and also from a lot of the companies. We are looking at a very strong week in the markets here. Up 2. 7 on the s p how much do you think is just month end positioning, rebalancing from the likes of Pension Funds on the sharp divergence of performance of august from stocks to bonds . Getting what we have coming up in september, thats a very headlinedriven trade around news coming out on the u. S. And china trade discussions and dont have the fed and headlines are really driving that volatility and if you have seen some of the divergence over the month it can throw portfolios a little bit out of whack and makes sen to rebalance the portfolio and go into a potentially volatile september completely in balance in terms of where you want to be. Mark, as you look into september with any key strategic trades to place on an Asset Allocation level yeah. Bonds dont look very attractive institutions will start to roll out the capital Market Expectations showing us what bond performance should look like over the course of the next tenplus years pretty soon and i cant expect theyre great 2 per year. Lightening up on bonds and adding alternative Asset Classes. Gold or bitcoin or infrastructure alternatives that respect stocks and bonds. The data picks up next week manufacturing and nonmanufacturing are out on monday friday is the u. S. Jobs report how sensitive do you think stocks and bonds are going to be in this environment . Were all focused on the president ial tweet storms, trade news between the u. S. And china and of course the fed. Investors would like to see a little bit more strength out of some of the china indicators, especially on a manufacturing front but i think next fridays Employment Situation report will be important but one thing to keep in mind is we get the Employment Situation report and then we get one last speech from powell a couple hours after that report comes out and then the fed goes silent until the meeting and i think that speech next friday is important but look at the wage growth component of the that report to give you a readthrough on the health of the consumer and a redthrough on inflation and two very important things to pull out of that report from what we get in the wage growth number. And then you start to ask yourself is the first shoe to drop in the softening consumer shawn cruz, thank you very much lets get to mike santoli. Wilf, last summer, a play, a movie, a song and where we find ourselves. A oneyear chart of the s p 500. Last year, 2901 as a matter of fact where we finished august last year. We are within 1 of that here are a couple of relevant issues 17 times forward earnings over here and 16 times here low lower than anticipated here. Treasury yields back then pushing 3 a different situation at the same price and now Rick Santelli for a look at the bonds. Thank you we are selling yields down buying treasuries. Into the close it was supposed to be a rebalance for big drop in yields maybe it was a bit early 2s are two basis points from the low yield close for the cycle. Bonds are sitting at 195 lowest close ever. Hero of the day, the dollar index. It looks like an apollo shot and the nasdaq yesterday was the leader today its the follower in terms of return. Kate, hows it looking into the close . We started out in the green today and we were unable to hang on to the gains and down just under a quarter of a percent for the eek, up 2. 5 ulta is the big story for the day. Down nearly 30 on the disappointing earnings report. Some of the biggest losers percentagewise in the nasdaq, dragging down the index today, the big tech names, microsoft, apple, amazon and facebook with the new tariffs hitting. Bob . Pra whwhat we saw, stocks fag new china tariffs on sunday. Very fluid in hong kong. We dont know what will happen there. Caterpillar, 3m, boeing up rough month for trade sensitive names. Rally seemed tentative because theres no resolution to trade and the outlook for earnings in six months remains murky theres the closing bell for the month. S p 500 down little less than 3 did have a mild rally going boo the close. Dow jones industrial average closing up 27 points welcome back, everyone, to closing bell. Im sara eisen. Im wilfred frost with mike santoli. Lets check in on the markets. Flat on the s p and the dow today. Nasdaq a little lower for the week as a whole up nearly 3 for the month. Down 2 for the s p. Sara, could have been worse and the headlines in the volatility suggested that it was. This week is very helpful in that regard. We are coming off going into the weekend four straight down weeks so we broke that losing streak in terms of what worked today, materials, industrials, financials and health care and notable that we have a little bit of strength, not really. Most of the averages flat but we did see yields fall in the end of the day started the day higher sort of fell we continue to watch that relationship yields dragging stocks lower had been a major theme of august. Id say one of the Asset Classes stands out for august. Chinese yuan big move for a fixed currency f. You want a snapshot of who may have felt the trade war more, point more to china. Of course, it has huge ramifications that are negative for germany and greece. Exactly ep if the ecb is managing to weaken the euro against the dollar its not weakening and thats certainly shaken out. Worst month ever for the chinese currency geragainst the dollar joining us is mark tepper is back with us tom frost, cofounder of fross fross. Mike, lets talk about how the day finished up, lower yields and slightly higher stocks. A quiet end to a noisy month. The market essentially held this twoday pop we got i see it very much as a kind of sentiment positioning move saying that the bond market was sending a scary signal a lot of defensive action. We have reversed some of that. If that dynamic continues, that mean reversion, because stocks did so poorly, people are gotten so defensive in their positioning, i think theres more to burn off right there but the volatility index was up today. The natural tendency would have been for it to bleed lower it tells you the market is still on edge. Because we have not gotten that real clearance, all clear of yields to rally freely. But your point about the fact that we have rallied despite the flat yield curve, we dont need the rate cut anymore no. When you are in a threeweek window it is part of the premise of why the market is doing what it is doing. What comes after that . Still characterized as a sort of mid cycle tweak or a more aggressive easing psych . This time last week you and i were here preparing for markets in turmoil. Exactly. What was that little look wilf was on holiday. Not working. On vacation but seriously. Time flies. There were some developments this week on the china trade front and not going to retaliate more. Hinted so. Talks seem to be going on at a different level according to President Trump. How much is the trade situation filtering into sentiment and price action makes the tape apprehensive and thinking about it, nothing necessarily happened that was so much different than what we thought except we didnt get another shock and a reescalation. When the issue goes quiet for a while, the market gets the footing better again, only because i think we overshot very short term we overshot in terms of thinking that bond yields telling us something scary in the short term. Tom, you have been comparing President Trump and the policy actions hes taken to bush senior is that right . Well, if you think about it, the last republican president that raised taxes was george h. W. Unfortunately, he saw one term of his presidency, not two while the president , our current President Trump, stuck to his guns saying that we are going to lower taxes and did in 2017, also saying that he was goig to renegotiate some unfair trade deals, what is happening with china, jpmorgan with a report that said that if all of these tariffs that did into place that it would be the e equivalent lent of a 200 billion tax increase to americans which wipes out the 165 billion tax decrease that we saw in 2017 plus another 500 out of the average americans pockets so we are not saying that hes said no taxes and raising taxes but if it has the same effect tell john and mary smith who live on any town america that has less money in their pocket that this suspect a similar thing. Its going to be tough to run again in the next for the next year if we do end up sliding into recession. Lets get more on the months biggest movers overall bob has a look at those here at the Stock Exchange and kate at the nasdaq bob, lets start with you. The trade that worked this month was very reliable except for the last few days was to short economically sensitive sectors and talking about industrials or Semiconductor Stocks and long more defensive sectors like Consumer Staples. Semiconductors, energy, transports, all down on the month. Defensive names like Consumer Staples and particularly utilities on the new high list almost every day for the month reliable across the board. Investo investors went for more defensive names like verizon, coke, merck and mcdonalds all up remember, the s p was down slightly for the month overall and cyclicals all reliably down so these are the classic ones that are in the Dow Jones Industrial average back to you. Bob, thank you. Nasdaq now, kate rogers with the movers there kate thats right. We are closing out the week here higher at nasdaq and for the month down just about 4 breaking a 2month streak here the russell 2000s also down over 5 for month of august. To the downside in august, ulta was the biggest laggard, kraft heinz down 20 sea trip a loser here and net app seeing losses. And then to the upside bio techs, amgen among the winners, costco and pepsi seeing gains of 7 and over 10 , guys. Thanks very much, kate. Mark, we have banks down some 9 for the month overall. Thats even after a strong bounce, 4 bounce, this past week is there still value there i would say, no id be avoiding the regional banks specifically they cant make money given where the net interest margins are right now given the yield curve. Thats one of the reasons we are avoiding small caps in general right . Theres a very heavy concentration to regional banks within the Small Cap Index and they have very heavy concentration to industrials which are cyclical within small caps, you have basically a third of the companies arent making any money. Lots of debt so at this stage of the Economic Cycle we prefer large caps and avoiding the regional banks. Tom, you run a Wealth Management company how would you gauge the sentiment of the clients and how spooked over the headlines of trade this month and volatility . It is a great question. It is hard not to be affected by whens happening, what you hear, because its juicy yield curve inverting. I met with a client yesterday saying she was very nervous about the inversion of the yield curve. I asked her if she knew what that meant she didnt theres headline risk but that being said we are reminding the clients if youre a longterm investor, some of the clients good chance theyre going to live 30 years in retirement, encouraging them think long term and think about a lot of these things that happen, a kidney stone. They hurt really bad and dont kill you so we are telling them to look at fundamentals and the yield curve inverting while an important indicator of a loomin recession rg recession, its only an indicator. If indeed the yield curve inverting is an indication this time like it has been in the past of a coming recession, on average it takes 25 months to slip into recession and the markets up 33 so if you think its the yield curve inverts, shut off the lights and leave the party, you would have left money on the table so yes i think investors are nervous and encouraging them to look at the fundamentals, remaining strong and lets be cautiously optimistic. With all that being said, we are beginning to tap the brakes on the portfolios moving into september. Okay. Thank you both very much, mark and tom. Thank you. We have news on twitter. Julia boorstin with the details. Twitter ceo jack dorseys feed appears to have been hacked with a dozen or so offensive and racist tweets september out from the account in the last half hour and seem to be disappearing right now. Twitters pr chief saying, yes, jacks account compromised and investigating what happened. This does come after dorseys been focused over the past year on improving what he calls the health of the platform, removing spam and offensive continent and using two factor authentication and worth commenting on the Companies Including the president that use twitter so well have to see how the Company Responds to this issue back over to you. Feels like they jumped on it fairly quickly as things like this go. As i watched the tweets continue to come in after spotting the first couple it seems like they could have acted faster this is an organization thats designed to try to identify and shut down spam and offensive continent and coming to the ceo he has millions of followers and think they would be able to shut it down faster than they did. So the answer to the question is no. No. Julia, thank you. Twitter up almost 50 this year. It was flat for the month. Its actually having a pretty good run. Back in favor, yeah, absolutely partly just because its really solidified itself as where people are looking for whats happening now for better and for worse and advertisers getting more comfortable with it, part of the story not to say this changes this as the ceo of twitter, we should not be vulnerable to a hack. You would hope not. You also might not be looking at that moment was my point. Id be pleased if i spotted a hack within 30 minutes for hackers, whos a target to try harder to get than him . Right. Porin other words, probably under constant assault. Thanks, mike. See . Weighing recession risk. A guest says drop in high income Consumer Spending could be a paioc hreat to economi exnsn. Well discuss. At fidelity, we believe your money should always be working harder. Thats why, your cash automatically goes into a Money Market Fund when you open a new account. And fidelitys rate is higher than etrades, Td Ameritrades, even 10 times more than schwabs. Plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. Just another reminder of the value youll only find at fidelity. Open an account today. Personal spending increasing in july and spending by the wealthy below 2017 levels and economists worry of a trickle down recession lets bring in mark sandy and jimmy petathucis mark, how would you characterize the consumer right now, what shape theyre in at the high end . Were flat. So if you look at spending, overall spending for thefolks in the top 10 of the income distribution, thats really gone nowhere for a little over the past couple of years you can see that in other places, go look at home sales, highend home sales are doing poorly, highend vehicle sales struggling you can see that in collectibles so highend, High Net Worth households are much more cautious and middle income households picked up the slack, more clued into the job market and its strong. They have jobs, wages are rising middle income groups picked up the slack left by wealthier groups but wealthy groups are essentially flat. Jimmy, the middle and low income groups mat tore the president ahead of next year right . Yeah. Listen the new Republican Party has a lot more working class voters. Voters who may get hit hard by the tariffs as we have seen. Mark runs a good if marks worried, im worried im worried about the trade war and i dont see anything that has happened since this deal with china fell through back in the spring that would give me any optimism about trade Going Forward so if you have a bull case on the economy and part of the case is a resolution this trade war i think i would rerun those numbers. Mark, is there a real concern about a trickle down type recession . Everyone keeps saying the consumers in good shape our economy should be fine at the high end if we are seeing this slowing what could be the Ripple Effect . It matters. The wealthy high income do account for a large share of spending if they pull back more, their spending is closely tied to whats going on in the stock market we saw that with Consumer Confidence today the university of Michigan Survey fell sharply because thats closely tied to Consumer Confidence and thats key to wealthy Household Spending and pulling back further and back to the degree that job growth slows and unemployment starts to rise, then that hits the middle income groups and the lower income groups and thats the fodder for recession. We are not there yet but i agree with jim if the president continues to pursue his trade war certainly if he escalates it the likelihood of the stock market falls, wealthy consumers pull back and causes the job market to hurt middle and low income recessions, those risks are very hard. I get its not a direct one off but it would have some effect. Sure. I think theyre trying and try really hard but heres the thing, wilfred two to three rate cuts are built into Market Expectations theres the futures market anticipating with near certainty that were going do get a rate cut in september, maybe october and maybe december and maybe one next year. Thats already built in so that is what the markets anticipate. Heres the other point if we start to struggle and the economy weakens, we go to recession and typically the fed lowers the funds rate, the rate they control by 5 Percentage Points today its 2 Percentage Points they try but they may not have the ammunition to bail the president out. It is a 45 tariff on all u. S. china trade is built into the Market Expectations . Thats what the president said in 2016. We are far closer to that level than anybody believed possible nine months ago. I guess i just wonder, people support him going tough and aggressively after china, jimmy. Doesnt that work with his base . Can he continue to walk this line without tipping the u. S. Into recession and got a good economy and consumer economy in particular and also with the democrats also trying to talk tough on china gets political points for doing so. Consumers have been shielded from impact of the tariffs up until now and now the tariffs expanded escalating theyre on more trade and the rate going up. You have some of the president s advisers already talking about what, well, if there is a recession it wont be that bad clearly i think the administrations worried about it i would not be wanting to run for election if i have a mild recession in the election year. Mark, jimmy, thank you both for joining us. Thank you. Up next, a few days away from a new round of tariffs going into effect. Live report from the front lines of the u. S. china trade war coming up. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade lets send it back to mike for the final end of summer dashboard. Mike bittersweet, right . Days grow shorter in september question now is if consumers see things that way, dimly, we looked at Consumer Confidence index and did not seem like it peaked but it has peaked that is the recession clock starting this, though, the divergence between the Consumer Confidence index by the Conference Board and university of Michigan Consumer Sentiment Index which is below expectations and see the spread opening up here between the two. This happens periodically and you can see this is around i believe 2000 you see essentially its end of cycle type dynamics that take hold here. Why would you see this divergence the Conference Board number overweights employment, current employment, how the consumer is doing today. Michigan sentiment is more about the outlook for personal finance, the outlook for Business Investment so it really mirrors the divergence of before about how consumers feel today and nervous of what comes next and some folks highlighting this on wall street of later on in the cycle and not knowing how late, how close to an end. Thank you very much end of summer there. Um next, netflix Movie Theater standoff clashing with big theater chains over the release out of the new film this summer i asked the head of amc if the company is working towards a deal with netflix. Discussions are under way with netflix and amc those conversations are taking place. Well, well get adam arons take on the collapse of those talks after the break. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Time now for a cnbc news update. So heres whats happening. Hurricane dorian upgraded to a category 3 storm closing in on florida as nasa secures the mobile launcher of the Kennedy Space center moving it into the Vehicle Assembly building. Epa is making volkswagen correct fuel labels for 98,000 models from 2013 to 2017 the epa says it investigated the gas vehicles after finding that vw cheated on diesel emissions in 2015. And two weeks after a private plane crash in tennessee Dale Earnhardt jr. Is back behind the wheel for saturdays Xfinity Series race. He talked on camera for the First Time Since the crash. Things have been great. Weve been just, you know, taking some time to ourselves and things have been very good so, you know, my wife loves to be at the races when im driving so her and i are going to come and be here and that will be great. That is the cnbc news update at this hour wilf, back to you. Thank you very much. Lets turn to the box office as we head into the holiday weekend. Despite a few mega hits at the movies, the year to date box office down 6. 5 from this year last year. Adam aron joins us in an exclusive interview. Thank you for joining us. Happy to be with you, wilf. Good the see you, as always lets talk about as we teased the back end of the last block about the breakdown in talks with netflix why did the talks break down whose fault was that i dont like to characterize it as whose fault it is but we couldnt get much of a serious proposal out of netflix. We have said for a long time now we would be delighted to show their movies but we have to be faith to feel the longstanding relationships with hbo and disney and sony and paramount and lions gate the major studios are producing films with a box office of between 11 billion and 12 billion a year annually. We owe a lot to these studios and we cant show preferential treatment to netflix. What were they seeking . It doesnt matter and i think talks are better left private. Im still optimistic that well be able to get netflix movies into our theaters so theres no reason why we should be difficult in public. We have high hopes for the future. If Martin Scorsese film cant get in, who can . Look. It takes two to tango. Ive been saying on your program for a long time now that we would be happy to show their movies but we have to be respectful and mindful of the longstanding tradition and support we give to the major studios and we get from the major studios. Wed love to do the same thing with netflix. Adam, it would seem for netflixs point of view or amazon and other streaming studios their main incentive to qualify for awards what else would you put into your pitch to one of these studios to say they a touought o have a Theatrical Release . How about this as a pitch a lot of money think about what some of the movies that are hitting our theaters are grossing. Disney brought in 2. 8 billion in 3 months for avengers end game. Major studios are banking 35 billion around the world from showing their movies in Movie Theaters we think we can do the same thing for netflix that we have done for a century now for all the major studios out there. Adam, have you spoken to bob iger and to disney about how committed they will remain to theaters and having a long period of exclusivity to theaters once disney plus launches i have. Theyre committed as we are committed to them. Just take disney as one example among many we sell more disney tickets than anybody else on the planet and more of our dollars coming into our theaters come from disney movies we have already told disney wed be delighted to use all of our resources to help disney plus to support disney plus. We dont see disney plus as a threat to amc. We see it as additive to the movie ecosystem, an ecosystem that disney and amc are joined at the hip in supporting its thriving right now. Adam, youre very clear to your commitment to the likes of disney and the major studios is there a bit of an issue how much concentration is coming from the few of the studios . Disney in particular is that something that worries you for the medium and long term to lose a bit of margin, Pricing Power . No. We are not concerned about it in the least. If you think about it, theres an erroneous press narrative out there that somehow Movie Theaters in life and death struggle against streamers it is not true the facts show just the opposite 2015, 2016, 2018 were all Record Box Office years the quarter we just completed april, may, june was the second biggest Movie Box Office in 100 years. The july box office at theaters, talking domestic numbers now, the july box office was up 7 year over year this is all with a current levels of concentration in the industry this is all with streamers in place. Were doing just great streamers are doing just great studios are doing fine this is a healthy ecosystem with a bright future. Adam, with all due respect, a threeyear chart of the stock, down 63 so why the disconnect based on the rhetoric and the picture you just painted if you look at our stock, theres something very specific thats gone on that has nothing to do with the movie business. There was a new accounting rule that went into effect essentially april 1. Asc 842 relating to operating leases and the major services, the Data Services, bloomberg, fact set, capital iq, as they interpreted the rule they misstated our debt they took the dead level at amc from 5 billion on march 31 to 12 billion on april 1 when there was no change in our interest obligations there was no change in our cash flows. There was no change in our real leverage there was no change in our business and we believe the Data Services are incorrectly reporting information that is not consistent with gap. Thats something that we have been talking to these Data Services about intensively this is causing what honestly massive short selling in the shares and our stock is dropped marketedly we think thats a buying opportunity for people because we think well get this addressed. They cant misreport our numbers forever. Have you been talking to your investors about this we have and if you look at analyst note after analyst note after analyst note in the last three months they all say what im saying just now. But theres so much computer Algorithmic Trading these days they dont read notes but see the data as we screen and they act accordingly. It is a isconnect. Unrelated to the real poir performance of our business. We think people make money as we get this corrected and our share price undoubtedly rises. Thank you for joining us, as always. We are keeping a close eye on twitter at the account of jack dorsey compromised last hour Julia Boorstin with an update. Thats right. About a dozen or so offensive and racist tweets sent out about an hour ago and have been deleted. Twitters communications chief saying, yes, jacks account was compromised and were investigating what happened. Now, it is worth noting unclear what was hacked, the personal account, twitter itself or a Third Party App that dorsey could be using to log in to twitter but regardless this does not look good for twitter after jack dorsey made a push over the several years to make it more secure and it does raise questions about the security of the platform overall, its worth noting, of course, the president and other highprofile people, companies, do use twitter as a very direct means to disseminate information. Back over to you. Wait. The president uses twitter julia, thank you very much. Thats a scary prospect, though. It is. Twitter account getting hacked. Would be hard to tell if it was or not based on the tweets up next, the countdown is on new round of tariffs kicking in this sunday. Jane wells is live at the port of los angeles front lines of the trade war with more. Whats on deck think about this. Over 20 jump in containers coming in full with stuff we buy and leaving empty with none of our stuff to sl. El the state of trade when the closing bell comes back. We think you would really shine in the aflac program. Aflac coach saban we have Health Insurance. Did Health Insurance pay for everything . No, we still have bills. Aflac gives you money directly to help with those. Aflac and your deductibles, knee brace, whatever you choose. Aflac sounds like a winner. Umhum. Umhum. We try. Get help with expenses Health Insurance doesnt cover. Get to know us at. Duck aflac dot com the new round of tariffs kicking in this sunday jane wells is live from americas busiest port, the front line of the china trade battle and joins us now. Jane reporter hey, sara i have been going through the list of stuff subject to the 15 tariffs on sunday, its 122 pages, stuff i didnt think we got from china or through china, like live camels but the tariffs are also going to impact a lot of things we do know about like clothing so here at the port of los angeles theyre seeing record volumes, especially in august. This month as retailers are trying to beat the tariffs because when President Trump announced the tariffs august 1 it was pretty much all hands on deck importers started to pay extra to fast track things to get here before sunday so i guess fast tracks cost less than waiting and paying the tariffs and also heres how the trade doing up to this point between the u. S. And china . So far poor. Exports to china down 18 the first 6 months of the year to 55 billion according to the census bureau. Imports from china are down 12 to 235 billion and even though its down the exports are down more than imports and coming up in the next hour of fast money a quick check of how many ships in the massive port are from china and how that compares to the norm stay tuned for that. What . They get the answer. Why dont we get the answer on closing bell reporter nope. No, no this is a tease to continue watching. Okay, okay. I get it ill let you run with that one if you can answer this for me, jane how much stress of the tariffs placed on the port operators dealing with the quantities or adjust the books with the pricing and end price of the products once they hit the shelves . Reporter im not we have to see how that goes a lot of importers exporters are absorbing much of the cost 98 of everything coming in here from china starting sunday is tariffed at 15 . How much of that do they pass through and consumers notice it . And are they going to stop spending because of it we dont know the answers. Jane, so one of the missions here from President Trump in putting the tariffs on and starting the fight to get more manufacturing happening back home in the u. S. Is there do the ports confirm anything of the sort are the ships just coming from vietnam and other places instead of china as you watch that drop . Reporter you have record volumes here in the Third Quarter and in august at this the nations largest port complex so it is mostly due to imports. How have of that is a reconfiguration of where the ships are coming from . How much is everybodys trying to get it in from china at once . Well see when it comes to the Fourth Quarter the Fourth Quarter will have tough comps compared to a year ago. If we see a precipitous drop thats a good idea of how much rush of traffic is from china. Thank you very much if you see a camel stepping off a ship from china, please take a picture. I believe it when i see it thank you very much. Up next, tracking dorian, the monster hurricane now terya ed to slam florida as cago 4 storm we will have the latest on that when we come back. Welcome back Hurricane Dorian gaining strength expected the hit the state of florida on monday as a major category 4 storm we have the latest. Dorian, a major category 3 storm with the sustained winds at 115 miles per hour. But the storm is expected to strengthen as we head throughout the weekend, likely becoming a category 4 some time tomorrow before approaching the bahamas lets break down the latest information. That rapid intensification already under way and the storm starting to lose some speed. It is going to have a slow Forward Motion as it pushes west towards the florida coast as we head through the long holiday weekend. That is good news for florida residents in that they have more time to prepare but it is bad news in that it will be bringing the prolonged devastating imparts to the start of the week and still expecting a florida landfall some time Tuesday Morning but slowing down and might not see a landfall at all. Thats still on the table to stall just off the coast of florida until it slowly pushes to the north throughout next week and regardless of the timing, regardless of the track, we are expecting that strong storm surge, really heavy rain throughout next week and high winds all expected as dorian approaches the u. S. Coast. Sara, back over to you. Thank you. Still ahead, upping the pressure to close the pay gap. Well discuss a new push by Pension Funds to get cpaesomni to pay and promote women more fairly this is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Big u. S. Pension funds and impact investors are stepping up the pressure on companies to reduce the gender pay gap. Pushing for new disclosures on how women are recruited, paid and promoted, this according to the financial times. Lets bring in shellie, founder. Shelly, pressure from Pension Funds. It says connecticut, minnesota and oregon are going to bring it up in the next proxy season. Do you think thats something that can be effective . I think everything is effective. If we Start Talking about the problems and creating solutions for change and measurement for accountability, and i think transparency is one of the biggest issues we need to take on it is about having conscious leadership the more we bring up the challenges, the more we start creating the solutions, the more progress well make. We really wanted to catch up with you because we did see quality day this week, and just get a read from corporate america. You deal with so many Different Companies on how theyre dealing with these issues, about whether were making progress and what sort of Innovative Ways Companies are starting to think about this what can you tell us in terms of a Progress Report . Listen, i think weve come a long way we made a lot of progress, and yet were still far behind on the wage gap, which i think is the number one issue we are still far away from getting more women in top leadership positions, from ceos to top leaders to board seats to vcs investing in femaleowned businesses you know, we keep talking about the narrowing the gap versus closing the gap. When we are aware of the fact theres a big wage gap, and if we close the gap we can add over 28 billion dollars to the global gdp by 2025, im not sure what were waiting for. Is it a lot of the actual pay gap down to the number of people in certain positions though . I think that it is after overall. We start at about 50 50 and end at less than 6 in the seats you will see the gap across the board, 80 cents on the dollar for women in general when you look at black women, it is 63 cents on the dollar and latinas 54 cents on the dollar it is across the entire spectrum from entry level to board level. I know a lot of ceos i talk to are paying attention to the issue, and how many new people they hire. A lot of the financials actually, the big banks, are working on this. Shelley, which industries are you looking at in terms of best practices, who have made some progress you know, we are looking across the board mark banoff frnioff has put hi where his mouth is to close it i think we are seeing a lot of that with conscious leadership, not talking about unhuconsciou. Once you are aware of the gap, it takes transparency in reporting and auditing yourself. Look across the board, and bloomberg has during a wonderful job in selfreporting with the gei, and were starting to see a lot of organizations comply for themselves and others in the industry, from marketing, media, advertising, research, technology, finance. We are automotive we are starting to see a lot of conscious decisions to close the gap, equal pay for equal work and equal opportunity. 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Welcome back lululemon results and the jobs reports taking center stage for investors next week. Lets start with a preview of lululemon. Rahel solomon has it for us. Reports on thursday and q2 Analysts Expect 89 on revenues investors ought to be listening for more on the growth theyre growing nicely in china and europe, and they said within the mens business they saw comps grow 26 does it continue through q2 . Also tariffs, we mentioned an impact on the last call and said most of it will hit in q3. Do they lower guidance lululemon is up more than 50 on the year and down 3 on the month, it almost closed down today almost 1 . Back to you. Thank you very much for that. Sarah has a preview of the jobs report for us. Sarah. August jobs report out next friday it is one of the big last Economic Data points released before the feds september meeting. Economists are expecting gains of about 149,000 jobs with the Unemployment Rate Holding Steady at 3. 7 . Julys report came in essentially in line with estimates, 164,000 jobs added. Wages topped expectations, growing by 3. 2 . A lot of people think that wage number will be important as a signal for the fed of inflation or lack of inflation, though it feels like, you know, the fed is in all sorts of territories now. It would need to be more of a trend than one wage growth a lot of folks point out august of all of the months is the one with a shortfall or a wide variation, a shortfall in the jobs number. I think it is apparent that the market craves a strong number. They already think the fed is going to ease in september. No matter what. And it is more about trying to get bond yeeields up which wouldnt be helped by a weak number. Big takeaway for august it is not yet proven the market is out of the sloppy back and forth period i thought the last few days it was pretty constructive because the low end of the range held and we had a response to the oversold i think bearish sentiment. Groups like transports gaining 4 for the week. Have a great extended weekend, everyone. Thanks for watching. That does it for closing bell. Fast money begins right now. Fast money starts now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Traders on the desk are carter worth, dan nathan, guy adami, and we are joined by jack mills, chief Investment Officer at bryn march trust. Going out with a bang, the s p 500 handing out the best week since early june but it wasnt enough to turn the markets positive for the month all three ending august in the red, the nasdaq the worst performer. Was august just the calm before the storm . Well look at the big months ahead. We have a new round of tariffs kicking in sunday. Thats followed by the jobs report later next