Profits. They combined to send stocks higher. The bankers seem to agree on when to wrap up the latest bond buying stimulus plans but differed on when to raise shortterm Interest Rates. Despite that, investors like what they heard. The dow closed up by 79 and the nasdaq up 27 and s p added nine. Steve liesman has more on the minutes from the latest policy meeting and what the central bankers are thinking about how and when they will announce the first rate hike since june of 2006. Reporter the Federal Reserve providing details of how it will bring the great Monetary Policy. Minutes of the june meeting show the fed planning to end qe by october if the economy improves as expected. The fed will hold onto the 4 trillion of bonds purchased on the Balance Sheet until rate hikes begin. At that point, the fed could let the Balance Sheet wind down to normal levels but gradually. The fed said little new when it will hike Interest Rates and how much. That leaves the general market expectation for gradual and modest rate hikes. You can leave out the feds gradual approach to tightening policy over time. There is disagreement on the central bank. Some believe the job market is tight already risking inflation sooner than expected. There is danger the fed could make a mistake acting either way, too fast or too slow. If you do it at the wrong speed, you can make any mistake. We had a terrible first quarter. Some unemployment numbers are looking better. Weve seen and created several jobs over five months. So you cant put this job growth in the bag yet. Indeed. There is sharp supply and growth but continues to expect a second half rebound. The speed of the rebound and potential to create inflation can determine how fast and how far the fed raises rates next year. Thats the problem janet yellen will confront when she has to. The minutes show the fed making plans to bring the great Monetary Policy to an end but in no hurry yet to shut down the laboratory. For nightly Business Report, im steve liesman. Lets turn to mohammed for his take on this, hes chief economic advisor. Great to have you back on the program. Everybody is fixated by rising Interest Rates and we know that will go up. Is that a terrible thing for the economy and markets or a good thing . It can be a good thing if it comes as part of Economic Growth and job creation. Right now everybody is hoping for economic lift off. That would be not just good for main street, it would be good for wall street because it would validate asset prices. Once that happens, the fed will start to move. The expectation is the fed will hike towards the middle of next year, but it will be a very gradual hike and it will stop below the levels that have prevailed his tore rickly. So mohammed, what if economic lift off doesnt happen and you have asset prices like the New York Times pointed out elevated in many, many categories from equities to farm land, what happens if there is no economic lift off . Thats a big risk, right . The fed has the following trade off, willing the fed says to underwrite future financial instability as long as we get economic lift off. If that economic lift off doesnt happen, then not only do we have a sluggish economy, we have a high risk of financial instability. Instead of the fundamentals validating prices, the price would have to come down and thats one of the big risks. The other risk is they over do it and we get inflation in the system, rate inflation in the system. Thats why its a delicate balance. Mohammed, one thing that popped out is this quote that the fed said investors are not factoring in sufficient uncertainty about the path of the economy. What is your interpretation of what that means and whats the problem with that . So they are worried the markets are too complacent. They look how low volatility is and look at certain bubblish markets and are worried they are too complacent. They know why. Mrs. Yellen told us last week, which is very low Interest Rates encourages excessive risk taking. They are worried that hoping they can signal the market, nudge the market into being a little less complacent. They are worried, but thats part of the game right now, which is in order to stimulate Economic Growth, they have to come to the asset market. How worried are you, mohammed, how worried specifically are you that what you just described ie that will not be economic lift off will come to pass. Asset prices will come back down. How worried are you . Handicap it for us. Im worried for two reasons. The first one is we need productivity growth. We could end up in a situation where not only does growth not come back fast enough to lift off and lift off is the important concept but we get Wage Inflation because it turns out unemployment is structural. We need productivity growth. The second element is we need macro proterrible policies, the ability to control risks. We need them to work. Those two things historically are difficult to predict. Im worried. There is much more risk in the markets than people are reflecting right now. So a lot of people listening to you right now, especially individual investors might say its risky, this is a scary time and even though we hear milestones, maybe i shouldnt put my money in the markets, is that what youre saying . Im saying put your money in names you understand well and not in the market as a whole. So look for names that are resilient that have a Disruptive Technology or capture market share and cost reduction. This is becoming more and more a name picking, stock picking market than a general data play, as the technicians would say. Mohammed, great to have you. Thank you for joining us. The u. S. And china have begun normal economic talks in beijing. Jack lou is leading the delegation pressing for a more Fair Exchange rate for chinas you are rememb currency, better property protections and much more thorough cybersecurity. Meanwhile, a top chinese official says its up to the u. S. To drive the global economy. Chinas finance minister says he doesnt plan on creating any new stimulus measures this year and thats slower than forecasted in china this year means the Global Recovery will depend on growth in the united states. While chinas economy slows, production is speeding up. The u. S. Energy department expects a hike since the level in 1972. Fracking in shale rock formations is expected to boost production to 9. 5 Million Barrels per day in 2015. Today, crude fell for its ninth straight session, the worst losing streak since 2009. It settled at 102. 29. President obama attended a democratic fundraiser in texas. He wont visit the boarder where many children entered the u. S. But he is urging to provide almost 4 billion to deal with the crisis. John boehner says that money wont do enough to solve the real problem. If we dont secure the boarder, nothing is going to change. At the president s request, its about continuing to deal with the problem. We have to do something about sealing the boarder and ending the problem so that we can begin to move on with the bigger question of Immigration Reform. John hardwood joins us from washington. John, you know there is a lot of political differences on that issue. Can we expect meaningful progress . We cannot expect meaningful progress. Since the 2012 election weve been expecting republicans to move for a combination of the substance dealing with the big problem but also their political imperative. They need to do better with latino voters and democrats have been pressing. The Senate Passed a bipartisan bill. People like marco rubio on board and the house consistently said no and john boehner the speaker said the house is not going to act this year. So the prospects for comprehensive reform are not good at all. What is the purpose of the president meeting, as i understand hes going to, with rick perry. Is there any Common Ground there . Not much. There is Common Ground on the narrow question of dealing with this humanitarian crisis. That is something that goes across party lines. Youve got tens of thousands of children who cross the boarder unaccompanied from central america. This is something that is not directly or not comprehensibly involved in the larger immigration issue but a problem immediately. Thats why the president asked for this money and i suspect hell get some, at least some of it from congress and hes got a meeting with stake holders on all sides of that issue in texas today and governor perry will attend. John, one thing we hear from a lot of ceos who come on the program, they think Immigration Reform is really important for their businesses, but what are you hearing about how they think the problem should be solved . Well, today we just heard from the u. S. Chamber of commerce which had what it called a day of action to press congress to act. This is an issue on which the cam be chamber is at odds with. The chamber said we must take it up. Businesses want certainty. They are dealing with a lot of people whose citizen ship or legal status is uncertain to them. The combination of insuring a steady flow of labor high skilled and not and eliminating the legal vulnerability is important to them but not enough to breakthrough the house. John, thank you very much, john harwood reporting from the nations capitol. Why the intensifying battle between amazon and the publisher could reshape the future of publishing and the e books industry. The town of sun valley, a beautiful place in idaho is known for two things, exclusive Black Diamond ski runs in the windier and the parade of media moguls looking to strike deals at an exclusive annual summer conference. Kayla tausche is there with the movers and shakers and has more. Reporter for three decades, they have flocked to a secret of summer retreat deep within the mountains of idaho, one thing remained true. What happens in sun valley, never stays in sun valley. Thats because the conference hosted by family bank alan and company has long been the breeding ground for industry mega mergers from disney purchasing abc in the mid 1990s to the acquisition of the Washington Post the last year. Despite hot Current Events in tech and media like government surveillance, the supreme courts ruling on who foots the bill for data streaming, the talk of the town here in saun valley is deals. Often mingling late into the night at the bar inside. Discovery communications ceo says recently proposed mergers will have brood implications on the market. We have more people buying content because were not selling to just distributors, well selling content to netflix, amazon and other players. When there is less distish by to distributors buying content, it could present problems. Reporter content deals could come next. Univision deals are coming. Other are keeping closer all the while allen is trying to win their business. Its a boom to the businesses in sun valley, a town of a thousand people. Airport teaming with private jets all week, the resort at full capacity. How fruitful for attendees wont be clear for months. A deal at sun valley may not be may be reached quicker than one between amazon. Com and book publisher hachette. They are locked in a battle that could determine the future of not only the e business but the publishing business. Julia boorstin has more. Reporter amazon wants to pay hachette less because whatever deal they strike could set the standard for other publishers. They have been locked in a battle for the past six months and in the meantime, amazon is delaying shipments, reducing discounts and removing the preorder button on some hachette books. They are in a stronger position in the negotiation. The publishers have a much harder time walking away from amazon than amazon would have from walking away from publishers. Reporter amazon made a bold offer to get authors and Public Opinion on their side proposing they give 100 of e book revenue to authors during negotiations. Hachette said no, well continue to negotiate in good faith. Amazons response to hachettes offer, we call bologna, it is part of a 10 billion global con glomerate, they can afford it. If amazon wins, Consumer Prices could go down. Reporter the big question, whether amazon will use this stand off to cut publishers out of the equation and convince more authors to public directly on its platform. For nightly Business Report. Im Julia Boorstin in los angeles. Fewer Airline Flights arrived on time during the month of may. The department of transportation out with the monthly rankings. The nations 14 Largest Airlines for on time performance, overall, 77 of all flights arrived on time that month, which means it arrived within 14 minutes of schedule. At the top of the listwith a 93 Hawaiian Airline followed by Alaska Airlines and delta. The bottom three, southwest, envoy, a regional carrier owned by American Express jet. Shares of American Airlines took off today. The carrier raised the growth forecast for the second quarter. It also affirmed its capacity outlook for the year and said traffic in june was up compared to last year. After the closing bell, united contin c c s shares went up 6. 5 . It closed the regular session at 40. 07 and american rose more than 4 to finish at just a bit more than 42 a share. Boeing lands a 56 billion order from dubais airline. It finalized the order to buy 150 of boeing 777 x jets. It made the commitment weeks after scrapping an order with boeings rival airbus. The deal includes purchase rights for an additional 50 planes, which if used, could increase the value of the sale to about 75. Shares of boeing were unchanged to 126. 79. A legal victory for pfizer today. A longrunning shareholder classaction lawsuit was discussed. The suit, which dates back to the year 2004 accused the drug maker of misleading investors about the safety of the celebrex drugs. They said the drugs caused cardiovascular risks. Shares of cell gene were up in todays session despite news the arthritis drug missed the target. The company said it will continue the study unchanged based on a recommendation by a Monitoring Committee and bernstein analysts remains positive on the outlook and cell gene rose to 87. 52. Allegans ceo seeks to repeal a hostile offer. Hes always looking at potential targets and pointed to about 14 billion in the companys free cash flow. Hes been trying to convince shareholders the future value of allergan will exceed the offer price. Shares there off a fraction today, 165. 20 was the close. Shares of 77 energy popped after hours on news that activists investor carl icahn took a nearly 10 stake in the company. The stock was up about 5 initially after hours. During the regular session, shares were down 2 to 24. 6 2 fl. A new battle front at the grocery star, farm to tables for healthier more natural foods. Which companies are winning. Reporter everybody eats but what we eat and when we eat is shifting. Thats keeping grocers on their toes offering the right products. Desire after another in a food retailer has to be prepared to move quickly as those demands from that customer happen or change. They have to be able to react quickly and get the products and Services Necessary to keep up with it. Reporter organic, gluten free and protein packed, consumers craving for healthy has cheshaken up the snack food isle. Emerald brand said revenues grew at least 10 last quarter. Kettle brand chips landed on many top health snack lists. Boulder brands and annies are offering gluten free foods. The analysts david palmer counts as winner. The Natural Organic spice is son fire. There is never a better time to be in business in Natural Organic from a demand perspective. Reporter consumers shifted from three standard meals per day to smaller more frequent meals and thats fueling sales of snack foods, but the key democrat if i can is particularly interested in fresh, healthy farm to table options and thats more trips to local supermarket chains like this one rather than national grocers. Straight to the farm food options are huge for profit. Consumers are willing to pay a premium but only to a point. 67 of consumers say competitive prices are still a factor when it comes where to 47 seeking out Farmers Market options within the store. Kroger leads the grocery pack when it comes to checking off the requirements on shoppers list. Food consultant randy evans says the grocer is leading the chaug when it comes to shocking shelves with healthy choices at competitive prices leveling rivals playing catch up. The perfect recipe to fulfill demands isnt easy when the only thing constant in grocery is changing taste. For nightly Business Report, im Courtney Regan in san francisco, california. Coming up, do american teenagers have basic financial survival skills . We have the results of a new worldwide study. Thats next. A little good news in the uneven recovery in housing. Applications for new mortgages up 2 last week as rates held steady at about 4 . There may be good news at the gasoline pump. It could fall as much as 25 cents a gallon. U. S. Supplies are spiking higher and demand is in check. It is in someways the last tab by, family discussions about money. In a new study by fidelity found a majority of parents and children cant agree on when or how to discuss important later Life Financial matters including retirement, Estate Planning and elder care. Speaking of financial matters, do you think youre smarter than a 15yearold . At least regarding financial matters. Researchers got surprising answers and results of a financial lit fie test given to teenagers around the world. Hampton pearson reports. Reporter at George Washington university, a forum that included educators and Financial Experts was told american teenagers are just in the middle of the pact worldwide when it comes to financial survival skills. Thats the major conclusion from a survey of some 30,000 teenagers in 13 countries done by the organization for Economic Corporation and development. That survey found only about one in six american teenagers able to make basic decisions about everyday spending, even though finances is already a fact of life for many 15yearolds. Arnie duncan says the results are a call to action. This is a baseline never had good data before, thats why it was so important to participate. We have to be transparent, tell the truth, the good, bad, the ugly. Reporter it was more about financial judgment than math skills so we put some of those questions and asked a 15yearold to adults. Claire and her friends are renting a house. They have been working for two months. They do not have savings. They make this to do list, b, pay rent. C, motorcycle was insured with the insurance company, e would be the final answer. While the adults in our survey answered correctly, each had different perspectives on why so many 15yearolds have financial lit problems. Im not that surprised because i feel like the Education System doesnt teach hands on practical skills. I think having money of your own, in terms of knowing how you need to allocate your money in terms of priorities. If other people are buying things for you, even if its given to you, if thats all the money you get, i think youll value it more. People are exposed to more Financial Products and smarter choices at an earlier age but when it comes to financial literacy, young people are still playing catchup. For nightly Business Report, im Hampton Pearson in washington. A lot of those questions, i saw some of them, were pretty convoluted. Thats one factor. I know the solution. What . Watch nightly Business Report or cnbc every night. Thats good. Susie, thank you. Im susie gharib, thank you for joining us. Im tyler mathisen, thanks from me, as well. We hope to see you back here tomorrow night. Tonight on quest nanoscience has a miraculous new toy come along as quest peers through the worlds most powerful microscope for a glimpse of the smallest things ever seen by the human eye. And, the pure simplicity of americas game just throw, hit and catch, right . Not so we lift the veil on the fascinating physics of baseball, just in time for opening day. Major funding for quest is provided by the National Science foundation. The gordon and betty moore foundation