Accommodative policy and more from that interview with Christine Lagarde stepping down from the imf taking the top job of the ecb president in november take a listen to her view of the u. S. Economy right now its the longest period of growth in our country. The unemployment numbers are at rock bottom. Its in a very good place. Her thoughts on trade, china, and the likelihood of a global recession all coming up. First, mark tepper, ceo of Strategic Wealth partners, welcome back youve been surprised, impressed at the resilience of the market during september, which is not seasonally a very strong month september a usually a very sleepy month historically. Its down somewhere between half a percent and a percent, but so far this month, were up about 2 , so thats pretty good. I feel like were in a tina situation, where theres really no better laplace to invest your monday yields have come down on bonds its really not interesting to invest in the euro zone. Tina, there isno alternative. There is no alternative u. S. Stocks are where its at. I wouldnt say its an allclear signal right now, because we still need to get a trade deal and more stimulus overseas, but i do think that the market will trade sideways with an upward bias until we actually deal with those two big headwinds. Dont want to invest in europe unless Christine Lagarde can turn things around outstanding job, by the way. Oh, thank you i like your post of pictures through the years. Youve done a lot of interviews with her its been a long road eight years, carbon with her from japan to jackson hole to chicago. Anyway, her thoughts on europe which showed some surprisingly weak numbers very weak numbers great interview thats already aired, lots more still to come ive read the transcript you dont want to iz mamiss it. David faber is covering new pressure on weworks adam newman and sarah has the highlights from James Bullard bob, lets start with you. Wilf, so we have mixed Performance Today for u. S. Stocks just take a look here. Health care, merck, pfizer down. Industrials like cat, up again cats having a great month, up over 10 f. A. A. N. G. Stocks, netflix is weak for the third day its down about 10 in three days remember that big drop on friday Reed Hastings talking about the tough competition in streaming from apple and disney, amazon, and nbcs own peacock. Thats launching next year and a lot of choices there for consumers. But elsewhere, its not mixed in europe the Economic Data was awful overnight, flash manufacturing pmi, lowest level in more than ten years. Germany may already be close to a recession, predictably, the yields in europe dropped, large banks like ubs, all down, as you can see there. As were the bigcap european names. Siemens, daimler, all week sara, back to you. I just want to pick up on that data, sarah the u. S. Market improved, but its not just manufacturing and not just germany that was the standout weakness of the data, but German Services pmi was below 50 as well the french numbers showed both declining, just above 50 i think this is a broadening out of the problems weve seen in the euro zone after a couple of weeks when people had started to say, okay, the International Picture has plateaued, its not getting worse again the question is, the new stimulus from the ecb, will it work can it turn the tide based on last weeks takeup fo it was very tepid, showing just make liquidity available doesnt solve the problem of lack of demand so i know you asked lagarde, is this the hardest job youve had yet, and definitely is she said she likes daunting tasks. Meantime, wework ceo kaum nadama is facing pressure david faber joining us now with the latest so what do we know about mr. Newman at this point well, we know were not going to learn about his fate today, sarah, at least. Thats what ive been able to unearth so far but its going to be in the next 24 to 48 hours that we find out what will happen in terms of his continued stewardship of the company that he founded and he controls as little as five weeks ago, this company was expected to be on the road right now, talking to investors about its upcoming ipos, with the expectation it would value the company at least over 20 billion those numbers quickly got ratcheted back, as weve reported over the last few weeks, investors were quite concerned about how much money mr. Newman had taken out of the company. They were concerned about governance within it, his ability to control so much of what went on at wework and they resisted they resisted so much that, in fact, the company, as you said, this time last week or about six days ago said, all right, were not going to plan to hit the road, at least not now, and were going to postpone. And since then, well, a damaging wall street journal story came out. I think we had the reporter on last hour, that seemed to have changed some mind, in particular over at softbank, the largest single investor in wework. They had problems with some of the behaviors that were described there, beyond, of course, what we all new from reading the s1 and they and along with bench majb mark sources are now in opposition to mr. Neumann remaining the companys ceo. Mr. Neumann can choose to start over again that might not be particularly wise whos going to give him money in the future would be a key question for a company that consumes massive amounts of capital. At the same time, do you really want to get rid of the ceo whos the visionary behind this, who loads the organization in many so many ways is there a way to fashion him as a chairman, bring in somebody as ceo and move on, hopefully, to a Better Future . Thats the conversations that are going on right now, sarah and wilf its unclear where some of the other Board Members stand in terms of mr. Neumanns future, and frankly its unclear bade on a lot of conversation ived a where his head is at if they do ask him the step down as ceo all of that said, we should know more very soon i was particularly interested in a comment you made earlier today on squawk on the street that the Investment Bankers are also now pushing for this change, which is somewhat surprising given that they backed the shape of the ipo, they would have taken the 47 billion private market offering. And is there a sense that everyones just trying to turn and pin the blame on mr. Newman now . He may have well been in the wrong, but a lot of other people kind of put their rubber stamp of approval for most of the last couple of years on his actions as you know, wilf, there are about 31 underwriters. And i cant speak for nearly all of them. I think there has been some pressure from a couple to at least make some changes that would make it more amenable to the Public Markets hes been very closely aligned to a certain extent and dawid by jpmorgan and Goldman Sachs who are the key counderwriters. Jpmorgan have lent him 100 million personally, also made significant loans to the company itself that were backed up by stock. Unclear where they all stand at this point really, this is the decision of the board of directors and we still have to wait and see what the final vote, when they do hold a meeting, as is expected, lets call it in the next day or two, wilf, will end up in terms of what they would like to see. But again, you could go down a road here where he says, no, and gets rid of all of them. Thats his right as the controlling shareholder. What about the relationship between mashiyoshi son and adam neumann. Why has that changed why is he turning against him . Do you have any sort of insight into what happened i wish i had more, sarah. As i said earlier, i think that wall street journal story of a few days ago detailing, you know, using the plane and leaving marijuana on it from a trip from israel to the United States and tequila parties there was a lot of Different Things in there it did seem to have an impact on a number of conversations i had. Was that enough to fully turn them its unclear at this point mr. Neumann didnt show at a big pasadena conference that mr. Massa held last week, but thats unclear that had any true impact here they have had a very close relationship and mr. Neumann sparked mr. Masas imagination, his enthusiasm so it does surprise that masa would be willing to say, lets go in a different direction. But when you have over 10 billion invested and seemingly of values that would have come in below what youve already put in, that can affect your Decision Making as well, sarah david, thanks very much, as always, dade fabvid faber there. Weve got a market flash on American ExpressAmerican Express shares seeing a pop today theyre up about 1 on the session. This comes on news that the board has authorized Share Repurchase of up to 120 million shares and also noupsing a 10 dividend increase. Remember, amex is up more than 20 yeartodate but still underperforming the straight payment plays like visa and mastercard back to you. Dee, thanks very much for that lets pivot back to the fed and some new comments from st. Louis fed president James Bullard today and sarahs been digging into the highlights. James bullard was one of the three fed officials to disseptember from last weeks fed rate cut decision, but he disagreed bauds he thought the fed should do more today he spoke at a chairman of commerce meeting in illinois and gave more clarity about his view of the state of the u. S. Economy and hes worried bullard saying a sharper than expected slow keown may make it more difficult for the fmoc to achieve its 2 inflation target and adding that insurance cuts may help recenter inflation. U. S. And manufacturing and slowing u. S. Business investment hes also mentioned tin vot ed e yield curve. Because hes worried about the economy and some of the signals, which gives investors kind of a confusing message, about whats going to happen at the next meeting with so many people on so many different sides of the argumented arguments. Consumer has been the workhorse of this economic expansion. Consumption is 70 of our economic growth. A lot of the customer based data seems to be pretty strong. Consumer confidence is pretty good, housing looks good but then you look at the manufacturing pmi, which is now in contraction mode. Probably most of that is related to trade i believe that the fed needs to do more, as well i would definitely expect at least another 25 basis point cut before the end of the year, because we really need that just to get the yield curve straightened out in the meantime, markets are at session highs, up 70 points on the dow and weve got just under 50 minutes left of trade sylvia is joining us here on set, as well, sylvia, are encouraged to see this, at the session highs in light of that very Poor International data we saw this morning and very poor returns for european and asian markets. There is a reason to be optimistic with this market. And there are definitely holes and places in the market that investors can find alpha and some of those places are technology and semiconductors that continue to soar, regardless of the trade tariffs. Theres a pullback in those sectors, but theyre still sort of happeninging on and i think that a lot of the data around the world could soften out we heard news about germany and france essentially infusing capital into the markets we had it happening in china, we saw india with the 20 billion infusion of capital. The u. S. Is support i have with the fed lowering rates and essentially inserting liquidity into the market. I think theres a lot of bad news and volatility, but there are still some bright spots and it looks like the bull market is continuing to hang on. Its interesting that you mentioned semiconductors they are doing quite well today and they tend to do well when the trade tensions thaw. Theyre up 40 from the lows you still think theres room to run there . I do. Micron is up close to 60 . We got a shortterm semiconductor etf thats up 100 yeartodate you have gaming and data centers growing. They have essentially been able to reduce some of their inventory for pc memory. They have the nand memory for the smartphones which will be a huge growth space if the growth in 5g continues and particularly if we get a resolution with the trade war. Youll have 5g in america and it will be 20 times faster, so you need more memory throw china and an agreement in there, and all of a sudden you have the ability for some Global Growth to hit that stock and some other names like broadcom and qualcomm, i think those are a little more trade war dependent. Theyre the biggest chip suppliers to china where do you stand on those names . Broadcom, we own. I like broadcom. Its kind of like my antisemi semi, because they have some Good Software exposure its a more defensive player us. Nvidia is our growth semi, it gives us access to those highgrowth things we would want to play. Sylvia, what do you want to do in the shortterm with energy exposure, which has had a bit of a pop because of geopolitical concer concerns time to take profits or do you think that can continue . I think that can continue, but the key word is shortterm the oil supply fell from 9. 8 to 5. 7. We keep hearing news that the saudis will essentially restore the oil supply, but it hasnt happened yet in the shortterm, we have seen some great performance out of energyrelated, gas and oil related etfs and i think my outlook for that is the next week or so because that probably will resolve itself i guess the Common Thread here, theyve all got secular growth stories, but if we do see a turn in the cycle, arent those vulnerable areas where money has flown into i think they are vulnerable areas because they are growth and momentum stocks, but software a bright spot you have to pick your names. Microsoft, 40, repurchase Apple Streaming Services some of these names are bright lights and they continue to grow and i also just love the story of robotics, ai, and the millennial trade i think well continue to see ai and robotics grow in health care and factories and manufacturing, globally in japan and china. You know, gaming is supposed to increase about 150 billion in the next four to five years globally so i do think that there is a chance that those names keep going. But investors overall should diversify their portfolios, make sure theyre allocating to some of the latecycle performers as well to temper volatility in the markets. Sylvia, thanks for joining us still ahead here on closing bell, much more on the saga unfolding at wework and the future of ceo adam neumann well speak with the analysts whos written about the troubles facing the company, coming up. And former imf managing director christine la dpard wei weighs in on the biggest threat she sees right now facing the Global Economy trade instead of being that big windows of opportunity for those companies that want to compete with each other, it weighs like a big dark cloud on the Global Economy much more from that interview, including her thoughts right now on china, coming up in just a bit. Closing bell back after a quick break. Dow isp u72 points. 43 minutes left of trade we trust usaa more than any other company out there. They give us excellent customer service, every time. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. Should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back just 40 minutes left to trade. As you can see, were higher at session highs, in fact, up about a quarter of 1 . Lets send it over to mike for todays market dashboard hey, wilf thanks very much heres what we have ahead. First, turn of the season. Well see what smo ome of the calendar patterns say. And withered and fallen. Maybe still some value there well have to take a look. A delicate balance thats what this market has been in for a while now, just kind of hovering and Second Spring. Some of the overall u. S. Macro data looking like there might be some revival there so first of all, a look at seasonal patterns. Now, theres all kinds of seasonal tendencies people look at the standard monthtomonth annual pattern there is the election cycle. The president ial election cycle, which has some relevance over the years, which year you are in the cycle seems to dictate something about a tendency of stocks and then the tenyear cycle, which basically says the longest single calendar decade, there have also been some tendencies those three cycles boiled into one typical chart. Thats the orange line right here if the market this year followed the typical path prescribed by the third year of an election cycle and a year ending in 9, this is what it would look like. Its tracking pretty well, but the magnitudes are way off the average for a full year in this part of the cycle is 8 they say the direction tis more important than the magnitude and nobody should be surprised if we get a little bit of a chop lower into september, october, but thats what all the patterns say. I tend to interpret this as, if we dont get seasonal weakness in the next few weeks, thats also telling you something when the market does not seem to respond to seasonal appearancpa thats probably a negative wait, were really looking at market patterns with year ending in the number 9 . Is that a thing. Believe it or not, im not saying theres a statistical significance, but there have been certain years youve had more of a problem. Yea