Deal as President Trump says he is scheduled calls with president shi xi jinping the highest this session was 334 on the dow coming up, gregg lemmkau live and exclusive. Lots to talk about with him on the market merges, ipos and the outlook for the rest of 2019 joining us for the first full hour of the show, keith bliss. Crazy week, now only down one percent. Talk us through the roller coaster five days of trade, the key levels that we have and havent touched. Sure. So overreaction. My theme has been overreaction and you certainly saw that in the monday night going into tuesday trade, a lot of what you have in the market today is a lot of program and algor rhythmic trading as opposed to humans die jesting the information. So you saw that overreaction we actually touched another oversold level that we had picked up from august 5th. So we were already oversold. That just went further down and the yield curve, the 210 inversion was only a basis pointer too and the amount of selloff was certainly incongruous to what people would think of in a potential recession. So this overreaction was destined to come back and especially what i like is that the small caps have outperformed the rest of the market today and that is an important, important signal for us to sustain this Going Forward the rest of the year lets focus in on the big stories. Dom chu is wrapping this week on wall street. Dom, lets start with you. Lets put some of those numbers to the levels that keith bliss was just talking about with regard to the s p 500 you already saw how many hundreds of points we moved there. On monday some of those growth fears drove the s p down by 35 points so that was the start to the week on tuesday we rallied back because tariffs are being delayed until christmas time we saw them move up about 43 points at that level and then on wednesday, the dbig selloff sent the dow down about 86 points at that point and only to see on friday up about 39 points. Thats where we are right now so well see how we end the day thats the volatility, not just in the dow but in the all bigger and pertinents such as the s p 500. Lets get over to Rick Santelli short ends down a few on the day. The long ends up a few look at the year to date, 10s minus 2s its positive now. 5, 6 we closed basically at zero. Never went negative. 30 year bonds are down 26 on the week but they are up a few on the day. This is a mid july chart it has been a swoon and finally dollar index normally goes down when you have swoons but look at this chart from may 2017 were not far from fresh 27 month highs. Back to you. Thank you very much weve also seen big trade head lines moving the market and kayla has the latest on them trade headlines could continue to move the market in coming weeks prlt saying he has a call scheduled with china president. The president got an earful on wednesday about this from ceos of three of the countrys biggest banks. Steve mnuchin put them on the line and they proceeded to have an impromptu 20 minute dus cushion about the economy where ceos said trade uncertainly is hurting business investment. A source says the president was receptive to that argument but he likes tariffs yeah lkayla youve been doin additional reporting as have i and i guess relative to the initial headline when it broke, the key takeaway was that this was originally a normal business scheduled meeting between the treasury secretary and the bank ceos that then evolved into the current market environment as opposed to some emergency round table . Yes, it happened on the day that the dow fell 800 points and im told it had been on the calendar for about a month the main topic of that regulatory meeting was the banks secrecy act and some anti Money Laundering issues. No word on exactly what the content on that front was, but after that meeting thats when the treasury secretary pulled them aside and said the president wants to talk about the economy. He wanted to ask about Global Growth, about the fed. They did say the u. S. Consumer was strong although flash points and uncertainty around the globe are not helping. Thank you very much the only other thing id add is of course bryan moynihans comments today that he does think the u. S. Economy looks stronger, the consumer in particular still on pace to finish the week in the red this will be the Third Straight week of negative returns for the dow s p and the nasdaq lets bring in Michelle Mckinnon keith bliss still with us of course as well lets start on the consumer. Bah because backwards looking the detail has been good forward looking are we going to see it turn down given that confidence number we got this morning . No, i dont think so. I look at 2015 as well as 2016 where we had that lag in manufacturing data however the consumer pushes through and i really look it looks like thats how it going to be this year and those retail Sales Numbers coming out of july were double what analysts expected and i think thats positive news. Were going to keep talking about this but first weve got some breaking news on the fed and steve has those details for us reporter thanks very much. The cleveland fed president making some comments to routers saying she would have wanted to hold Interest Rates but said it was a close call she is concerned shes Economic Risks in the u. S. Are weighted to the downside. U. S. My she says is cloeing but not in the same way as the Global Economy and one of the problems she says trade policy having an impact on business senltme sentiment. The choice of Holding Steady or lowering rates is not inclined to be raising Interest Rates if that may be the last Monetary Policy feds we get until jackson hole next week lots of fed speak thursday and friday from jackson hole looking at all of this commentary and what you just said, what exactly does she mean when staying holding on rates is tightening policy in some circumstances . Right so if you if you should have a lower Interest Rate because thats what you where you are relative to the economy, in other words, if the low natural rate is lower than where you are, then you actually tighter than where you should be, so in that case Holding Steady means that rates are above or restrictive in the sense of the current economy at the time a fascinating week next week. We look forward to all of that coverage a lot to talk about beautiful backdrop. Lets get back to the market discussion here. Keith, on the topic of the fed, i mean, do you expect next week to get clear guidance from central bank is it a big bout of easing coming will the market be disappointed if we dont get that the market will be disappointed if we dont hear that because theyve been telegraphing that. The entire market here in the u. S. The september meeting for the fed. The ecb has made noise about that bank of china is considering massive stimulus measures at this point in time as the tariffs start to take bite and the threat of tariffs start to take bite. So if we dont hear signals out of jackson hole next week from all corners of the major Central Banks the market will act negatively to that and so we need to have that to keep this sustainable rally. Do you agree . Yes, i agree. However, i think its just one weekend. Its just one day and what i really look at is what it has signalled over the last few mapts. He then retracted it back and now he seems very committed to doing what it takes to push the economy forward and i think thats what you should see michelle, youre bullish energy yes, the s p is up 13 today and energy really hasnt done anything and specifically i picked royal dutch because not only does it have a better dividend than the s p it has a 25 billion buy back program but i love the fact that theyre transitioning from this Big Oil Company to this Energy Company theyve committed 1 to 2 billion that theyre going to invest in Sustainable Technology over the next five years and i think their carbon net emissions are trying to have them by 2050. So not only do you get the opportunity for growth but a strong dividend and a company for the future even though maybe perhaps theres a lot of uncertainty and slowdowns on crude oil, putting pressure on Energy Stocks more broadly . Actually if youre seeing Energy Prices are up 25 for the year, however, Energy Stocks have stagnated so i dont really see oil as well as Energy Stocks being so well correlated and i think thats a good thingments weve had such a harsh sell off in 2015 and 2016 and those Companies Want to move away to being so tied to Energy Prices so thats a positive crude sits at 55 or so. What way do you think from here . We have it modestly oversold at this point in time. Clearly its a Global Growth story at this point in time. But i think theres also an underpinning here where Commodity Prices are signaling deflationary pricing so i hope the central bankers will come out and say were going to inflate our way out of it and oil should move higher great to see you. Still to come here on the closing bell, weve got of course the close which is 15 minutes away currently 274 points higher on the dow. The high risk 334 for the week as a whole were down about 1 down on the s p. General electric ceo marking a line in the sand by buying stock yesterday and it has helped the share price rebound. Was yesterdays short goal overblown or just the beginning . We will discuss. And heres a check on our data tracker housing stocks dropped for the Third Straight month but some interesting numbers beneath the headlines. Well fill you in on those and Consumer Sentiment dropping to its lowest level since january. More closing bell after this break. This is the couple who wanted to get away who used expedia to book the Vacation Rental that led to the ride which took them to the place where they discovered that sometimes a little down time can lift you right up. Flights, hotels, cars, activities, Vacation Rentals. Expedia. Everything you need to go. Is it to carry cargo. Greatness of an suv . Or to carry on a legacy . Its show of strength. Or its sign of intelligence . In crossing harsh terrain. Or breaking new ground . 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Here he is predicting doom for ge ge is losing 5. 27 for each dollar of premium income they are taking in. Those losses are unsustainable and theyre growing. For 2018 they grew at 60 rate its going to make this company probably file for bankruptcy ge director appeared on closing bell yesterday to refute the allegations and question his motivation. He seems to be con flating all of those different bases of accounting now, we can question is it become of incompetence, he doesnt understand the accounting standards here or is there some other motivation its not acceptable to say lets stake the statutory basis and book it for gap. Thats not how it works. Bryan, thanks for being here today. Real simple question why is ge up 9 right now . Well, it all depends on where you start from and lets just start with mr. Markoplos report. Theres a very good analysis in here his work on the longterm care liability is very good work but theres a lot of hyperbole and innuendo around it why is it up 9 . Its just math first got slammed significantly with the release from his report now its bouncing back because as we really start to die jeges we can see what here is new and what here is rehash and no small part of this is rehash and to that point, brian, what is your assessment of both that report from markopols and the report i havent memorized all the pages but the core analysis hes done on the insurance side is very good work the broader theme of the report and the innuendo, theres a lot of garbage in it and with respect to the company response, lets be realistic if you Say Something bad about my mother im probably going to respond in kind. Brian, you also refute the fact that he suggests these issues have gone back as far as the 90s. Is that right . Well, there was one comment that he makes in his report where he claims that in the late 1990s there were questions and that portfolio plangmanagers wod index the stock in case there were problems. Thats a lot of garbage. No, this stock had a halo around it even when jeff took over as ceo for probably the first three, four or five years so no, it wasnt till about 2006, 2007 that people really started to question the company this is a company that has certainly been through several pretty rough years its in the midst of a turn around right now that longterm Care Insurance business is certainly in focus in your assessment of the company and of the stock, do you expect that its going to have to take greater reserves for that ltc business . Right well, he makes the case for further reserving. I wouldnt discount that possibility at all i mean, when you think about, you know, the aging of the book, some things he does point out and the fact that Interest Rates have remained very low, thats hurt any company that underwrote thinking they were going toear higher returns than they are but that wont be ge specific. That will be for any insurer which has written these 30, 40, 50 year liabilities. Do you think that possibility is priced into the stock here . A lot of it is. Exactly how much, we dont know. I mean, that stock was in the low 20s, low to mid20s when ltc first blew up in the Public Market and look where it is now and that got the shares down to really about where we are now. So id have to say yes keith, whats your take on all of this . And also how much of this sort of wild card possible risk on ge was already priced in . Because theres been a lot of skeptical analysis of the company for the last couple of years. There really has and if you watch the slow bleed as were talking about here, you know, moving down from 30 into 20 and i made the statement, it may have been on the air here, 20 i wouldnt touch it. That turned out to be somewhat precedented as we come all the way down but its really about people not understanding the various businesses and the components and how they fit together and knowing that there are problems not only in the ltc business but also in the broader industrial business and youre seeing that reflected. Listen, i cant tell you that i know a lot of people that want to touch this stock even at these levels brian, just to wrap all of this up here, in terms of the accounting which is certainly under scrutiny on the heels of that report yesterday, we do know that regulators have been investigating some of the companys practices around how its accounted for certain businesses what is your expectation for that and how do you think this report fits into that bigger discussion Great Questions by the way, after i take a little bit of issue on the aspects of the Industrial Portfolio. With respect to the accounting clearly there was aggressive accounting thats why were going now to probably our third cfo in the about the last three years right . However, regulators can and do take a wholistic approach and when they come in and theyre already there, theyre looking at is this the same Management Team now and you have a different ceo than you did a year ago and this is not a lifer. This is someone whos come in from the outside i would flip a quarter over the phone with larry couple and trust him. This is a different leader you have a different cfo that will be coming in. Regular tators will look at that very differently than its the same group and theyve taken another charge on the industrial side there are challenges we know power has to be fixed. Thats going to take a lot of fixing theyve got bad business they wrote but having spent some time traveling globally theres good underlying demand for Power Projects on the aerospace side clearly with the 737 schedule being adjusted thats having an impact on the Aerospace Supply Chain but the underlying fundamentals are still fairly sound and health care is health care so i wouldnt say that the Industrial Portfolio is broadly speaking a debacle however the huge one that has to be dealt with is power. Thank you for joining us today. Youve got apple i should say coming up, apple, one analyst says dont look now but where theyre moving the needle. And a live interview with goldmanns cohead of Investment Banking. Closing bell back in a couple minutes. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity tra