Today. A key meeting set to take place at the white house in this hour. Can President Trump seal a deal even if its just a skinny bundle kayla is in d. C. With the latest on the talks b. Before that 2 45 p. M. Meeting between President Trump and the vice premier of china the treasury secretary and the trade representtich are going to be briefing the president to tell him what transpired between two days of what treasury secretary says were productive negotiations a couple of blocks away with china. Whoa expect there will be some announcement secretary mnuchin confirmed there would be there needs to be a decision on what those are a source stels tells me preside jinping needs to be what is decided as well. We await those developments. Secretary mnuchin just briefing moments ago. He was asked about the optimism regarding china trade talks in the market right now, especially on the back of headlines that there could be a partial deal coming heres how the treasury secretary responded. The stock market is very optimistic about what to sees at the ustrs office. Are they right to be optimistic . The stock market is always right. Treasury secretary said the stock market is a barometer of how the administration is going before so this is certainly in line with his views here. But notable that on a day when there are reports saying a partial deal has been reached and he is saying the stock market is right here, that is certainly something thats significant. Guys. What does partial mean . Enumerate some of the things they may have agreed to. Well, it means that its not the whole kit and caboodle it is not a comprehensive deal as Peter Navarro earlier this week was saying would need to be reached, that hit all the items that the president has wanted to get since he opened up this trade dispute a couple of years ago. Essentially, it would mean that china is not going to change its laws to essentially get some of these intellectual Property Rights that the u. S. Is seeking, but it may do it in other ways china has already started to open up more markets, some industries and Financial Services so these are seen as trickles in the right direction, moves of good will to try to support this idea that china could do some of these things, but not all of them quite yet. Thank you very much markets are sitting close to session highs with all of this happening. This word of a potential deal and what it might look like, lets get over to bob who has more on todays action for us. The important thing is the question is what does a partial deal mean. Right now the base case for the markets is a very partial deal, simply no more tariffs thats what the market is expecting perhaps in exchange for buying some Agricultural Products if there is something more substantial, and on this alone we have roll lead 50 points in the s p in the last 24 hours, some additions to that or if something really big happens like they eliminate all tariffs, we could get a more serious rally into the close thats not the base case for the markets right now. I think the bigger question is does this modest truce, for example, really change things . For example, would it get us to new highs . We are 1. 5 away on the s p 500. Would it get us to christmas without some deterioration in the markets like we had in december of last year on the Global Growth concerns i think the worry for the markets right now is, number one, this doesnt change the fundamental narrative about Slower Growth in 2020. 1 to 2 gdp growth in the u. S it doesnt change the fact that the trade war still exists if there is this partial deal it doesnt change the fact that there is going to be multiple attacks on china Going Forward in 2020 on several different fronts on the trade war. I think thats what may weigh on the markets beyond today and beyond the next week or so back to you. The issue, bob, is that a partial deal is kicking the can down the road. Yeah. Thats exactly right. Thanks. Go ahead. Go ahead. Ill keep talking. Go ahead. All right ill take it back. Bob, thanks. For more on how a deal could could change trade and our complicated relationship with china. Guys, great to have you with us. Stephanie, your take on what this partial deal could mean does that really change much aside from possibly delaying some tariffs yeah, i mean, there is two things one is tactically what that partial deal is, and then also what it represents less than 24 hours ago i was fielding calls from inconstitutional investors can asking me what is going on, why is china leaving early Late Wednesday night there were rumors the delegation might be leaving before today what the market wants to see, what investors want to see, what i want to see is a deescalation. I think thats what we are getting today. Regardless of how this deescalation comes together, i think its meaningful. This could happen in the form of the partial deal. There are all sorts of issues surrounding the trade war and surrounding trade negotiations that have been an escalation going into the trade war ultimately, do we really see a deescalation in terms of the tension between the two countries . I would characterize it as a lack of escalation rather than a deescalation. Its not that any of the existing trade measures that the u. S. Has imposed op china or the other way around are coming off. New measures will not be put in place if there is a deal, which we will have to wait and see what the markets seem to be taking is the lack of bad news is in some sense good news but the deal or what we are hearing about the elements of the deal certainly dont point to any substantive deescalation and dont deal with the key issues that have been generating economic and trade frictions between the two countries. So there is a long way to go if one really wants to talk about there being a good basis for markets to rally because china and the u. S. Putting together some sort of deal. What is china giving and what is the u. S. Giving what it sounds like china is giving is agreeing to buy more goods, especially Agricultural Products from the u. S. Perhaps agreeing to keep the value of the currency stable as a tool to fend off the some perhaps market opening measures. What the u. S. Might give according to the reporting we have seen is perhaps easing back the restrictions on sales of equipment and technology to huawei and perhaps a few measures related to allowing chinese firms to operate here, continuing being listed on stock exchanges and so on. Its a de minute muss deal on both sides how does that set up for the next round of talks which could be much thornier yeah, i mean, they always talk about how they left, you know, they got 95 of the way there and the last 5 is what really created obstacles in may. Of course, the last 5 is always going to be the hardest. I think when we need to see is room for the leaders of these two countries, whether trump and xi or their senior negotiators like we saw this week to be able to come to the table and make progress i agree that a lack of an escalati escalation maybe is a better term but i think we could see a complete deescalation and complete deal come together before the end of the year i think to bring in more politics i think impeachment absolutely precious the president to need a win. I think economic pressure, pressures the president to need a win. There is a lot weighing on trump here right now. A complete deescalation in your view would mean rolling back all tariffs, for instance yeah, i think we could see Something Like that by the end of the year, absolutely. Quite a prediction. Thanks, guys thank you. Stephanie miller and eshw eshwar bresad. The question is will the rally continue ron is here, a cnbc Senior Analyst and Senior Advisor to schroaders north america will rind is also with us. So, ron, the market feels very binary to me trade deal, good no trade deal, bad brexit deal, good. No brexit deal, bad. If earnings are okay, good if have i got it mostly right . I think generally speaking, yeah, you hit the nail on the head we are looking for a 4. 5 decline in s p earnings in the Fourth Quarter or thereabouts. If they are slightly better than expected, thats good. The trade deal, interesting there is so much optimism. If the chinese begin purchasing agricultural goods, it puts us where we were before the trade war started. So, yeah, deescalation is good insofar as it doesnt get worse from here and the tariffs dont go to 25 interesting where you said basically a lack of escalation equal equals deescalation so after we stop worrying about china trade for a week or so, whats the next worry for the market i think the worry for the market is the slowdown i think as people have said trade tariffs aside, it doesnt change the fact that the Global Economy is slowing and people are worried about what that what the implications will be for the u. S. Economy particularly coming into Third Quarter earnings season. So if you get some sort of breakthrough on trade, does that mitigate in any way, and weve looked today at copper and some of the industrials and so forth, does that mitigate the economic slowdown globally . I dont know whether it mitigates it, but it certainly would help because, obviously, you know, global trade, you know, china and the u. S. Being the two biggest players in that, that helps the situation but i am not sure that its enough enough to counter thats the heart of my question. Its kind of subtle global Interest Rates are not as negative as they were two, three, four weeks ago. German bund rates underminis a half point japanese rates rallied back. Swiss rates rally back copper, as you say, is up. We are seeing small hints of optimism the tenyear is up a little bit. 175 almost now. Yeah. Thats a sign that there is a little more optimism in the bond market where there has been a notable lack it may not be fully important. Certainly the fed with some machinations of late is steepening the yield curve its a better sign than not. It took a lot to get us higher on the s p 500 by 48 points it took a partial deal, a brexit breakthrough, protesters considering winding down protests in hong kong. All these things had to come together to give us 48 whopping points on the s p 500. So is it really the global slowdown ultimately thats going it take hold if so, isnt the risk reward to the markets to the downside now that we are 1. 5 away from alltime highs yeah, there is so much shortterm people looking at every machination of this on a daily basis. As we started talking about at the beginning, trade deal, off, on, market up down. People have lost perspective on a the Bigger Picture which is what does the market look like over the next ten years and what are these kind of key things there. And i think the lens of technological disruption, for example, you know, affecting all companies kind of around the world is something that people arent really focus on as they look at the shortterm tos and fros of whats going on. I wish there could have been a followup question to the treasury secretary of the stock market is always right no meaningful breakout i would like to know what he thinks that means relative to a 400point pop in the dow today. Thank you very much always good to see you. Thank you. Coming up, we will continue to monitor this rally as we await President Trumps meeting with chinas vice premier. Gm as a United Auto Workers strike enters a 26th day the key players back at the main table. Could that mean a deal is getting close . With chinas vice premier. The final horn doesnt have to mean the end of the action. Because with Nhl Center Ice on xfinity you get up to 40 outofmarket games per week. And with the allnew xfinity sports zone, you get everything nhl all in one place, even notifications about your favorite teams. Watch every barn burner, barreling check, and all the top shelf action. Plus get instant access to your teams with the power of your voice. Thats simple, easy, awesome. Say Nhl Center Ice into your voice remote to upgrade for a great low price, or go online today. Lunch. We are looking at a live shot of the white house with the president will meet with chinas vice premier within the next hour markets are rallying on reports that a partial deal has been reached. Right now we have got the dow higher by 424 points, 1. 46 . S p 500 adding 47 and the nasdaq up by 148. Almost 2 . The 126th day of the gm strikes with negotiations revving up gm is sweetening the offer by planning to preserve Health Care Without increasing outofpocket costs. The auto giant is committing a 7. 7 billion investment in the u. S. Factories in an attempt to end the strike and gm shares hitting a speed bump since the strike began last month. Down substantially since then. Will this offer spark a turnaround joining us is michael ward, managing director at Seaport Global securities. Michael, great to have you here. You have some great thoughts on this, including that this spat could weigh on the auto sector for years to come . Absolutely. The strike is an unfortunate waste of time and money. I have been following the auto sector as a south side analyst for almost 40 years. It has become increasingly difficult to get investors attention with the stocks, especially General Motors and ford we got a good break out of the downturn, reduced cost structures this is a major step backwards you think we will ludes tose tht generation of investors if they are not only gone becausen they are in the teslas and ubers of the world . I dont think they are necessarily threats. What is going to get a Portfolio Manager to buy General Motors or ford if you have risks increasing like labor risk i think many thought labor risk had been subdued since the downturn now its back on the table, labor could be a risk for this group as you go forward. Only 26 days. If this is resolved shortly, then perhaps it could quickly become a distant memory, right absolutely. I think you need to get it resolved you know, both sides you know, to me its just a breakdown in communication in 2017, when the union rep went off the gm board because of being investigated for some of these issues, i think communication broke down at General Motors between General Motors and the union that needs to be resolved. That being said, if its resolved the next day or two and start up production fra week fr now, you can build inventory and see finances recover and cash recover. There are some analysts out there, michael, who believe that what has gone on with the strike will impact gms ability to meet cost savings targets through 2020 will actually cost the automaker possibly 1. 5 billion. What are your , great. If the distant memory hitst it,. Labor costs are about 5 billion at General Motors. So if you go up 5 a year for the next three to four years, you are talking about, you know, 500 million, 700 million of additional costs that doesnt really completely disrupt their profit projections. So i would say thats a little bit too aggressive. What about the auto suppliers, how are they affected both economically and in the market by this i think its had a bigger impact on the pliers than General Motors i think the suppliers are getting strangled. They are smaller and depend on gm on a lot of these products. I think the nearterm impact on the suppliers is probably hitting them a little bit harder i cover eight suppliers. Each of the eight have Significant Impact on Third Quarter and that impact is accelerating in october when some of the operations in canada and mexico have gone down. We are looking at a lot of those stocks right now some of which you cover. They are all up. Some of them markedly today in admittedly an up market. Is it just the rising boat lifting all tides or what . I mean, or is it i think its china. You think its china . China. Its not that they are anticipating a solution, a resolution of the strike i dont think so. Normally, the suppliers when there is a strike, strike impact, the market kind of looks beside it and they will look through it particularly just take a stock like lear. Lear is a big supplier to General Motors also a supplier to the ford explorer, which is having production issues. I think as you go through the quarter and say lear has an impact of 07 cents from the gm strike the next two to three months gm will need to rebuild inventory and they will be accelerating production models for lear. Are you still a buy on gm i do have a buy on gm certainly think about how this strike is settled and what the cost implications are and Everything Else in the implications for General Motors and their perception, more importantly, the next five to ten years and that relationship with the uaw. Okay. Michael, thanks so much. Appreciate it. Thank you. Thank you. After the break, as markets rally on renewed hopes for a trade deal, industrial stocks are soaring today and our traders are going to dig into that neglect plus, the rise and fall of the unicorn. What we works downfall could mean for the ipo market. That and more when power lunch comes right back eritrades got. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. Take a look at this. Members of chinas trade delegation seen entering the white house just a few minutes ago. The vice premier who is the top official meeting with President Trump not seen in this video, however. But market are hanging on to pretty much near session highs 1. 9 gains there for the nasdaq. Dows up 442 points as that delegation arrives. Now to trading nation. Michael santoli joins us for todays edition. Mike. Thank you very much industrials among top performers on hopes u. S. Officials can make head ways we have been talking about with china on trade. Leading the group after topping earnings stilts today. How should you trade the sector today . Craig, been performing a bit better, kind of held up, i guess, the uptrend in the industrial sector. How does it seem right to perform from here and what about any names within the group you like mike, so we like the industrials. In fact, a few weeks ago we upgraded from a neutral to overweight when you look at the xli, here is an index that suggests a close of 80 would suggest a move back towards 100 we like that further you just mentioned fas nol. If you look at illinois tool works, itw, a 0. 75 correlation between fasinol and tool works you have a nice bottom setup happening here with the symmetrical triangle in the illinois tool works. We would be a buyer of that and certainly the industrial sector. Chad, a lot of talk about the potential perhaps for a rotation towards more globally cyclical type sectors industrials qualify there. Does that make sense to you . Yeah, our portfolio we have roughly about a 23 weighting in industrials. We see that over the entire market that there is actual deep value disparity. So we would be buyers of industrials. You are looking at companies that even with a global slowdown, the valuation really does make sense. But look for companies that dont have a lot of debt on their balance sheet. Thats the one thing that i would caution. So look at companies that are consistently growing, consistently profitable with well diversified product lines and client bases overall, we think this is a relative performer, performance that will be well above the s p 500. All right a little bit of a cooling off of the dollar doesnt hurt this group either guys, thank you very much. For more trading nation head to our website or follow us on twitter tradingnation. Ahead on power lunch we continue to monitor this rally the dow is up by 465 points. Plus, iranian authorities claim an ail tanker was hit by two missiles we will go laive to tiehran. We will telli you everything yo need to know when power lunch lurns. Now the latest from tradingnation. Cnbc. Com and a word from our sponsor. Different sectors tend to do well during different periods of the Economic Cycle when the economy is expanding, industrial and Technology Stocks have historically outperformed the Broader Market however, when the economy is contracting, more defensive sectors such as utilities and consumer staples, tend to outperform schaub is the better place for traders. Its racquetball time. thumps ugh carl, does your firm offer a satisfaction guarantee . Like schwab does. Guarantee . splash carl, can you remind me what youve invested my money in . Its complicated. Are you asking enough questions about the way your wealth is being managed . If not, talk to schwab. A modern approach to wealth management. Somand with the xfinityreen is stream app,reen. Which is free with your service, you can take a spin through on demand shows or stream live tv. Download your dvrd shows and movies on the fly. Even record from right where you are. Keep what you watch with you. Download the Xfinity Stream app today. Because Xfinity Stream tv week is here. Watch shows like south park and the walking dead now through october 13th. Im sue herera here is your cnbc news update at this hour. British Prime MinisterBoris Johnson visiting a school in beacons feld says that there is a ways to go to get a brexit deal done, but he repeated britain is ready to leave the e. U. Without a deal on october 31st leo barakat got to yesterday, it was a joint feeling that there is a way forward we can see a pathway to a deal that doesnt mean its a done deal. French carmaker renault fired its ceo today to try to restart its alliance with nissan he was let go days after nissan named a new ceo. He had replaced carlos ghosn after he was jailed. Ghosn had led both companies. This is my favorite story of the day. Archeologists in italy have unearthed a well preserved fresco depicting fighting gladiators in pompeii. The New Discovery was unveiled today. It was found on a wall beneath the stairwell of what was probably a tavern frequented by gladiators that is the news update this hour guys, back to you. Turns out we all love pompeii. Absolutely. How can you ever get enough its fascinating. They keep uncovering new treasures. Its wonderful. Sue, thanks very much chinas vice premier arriving at the white house as well with the rest of the trade delegation we showed you he will be meeting with President Trump in a few minutes time the dow is still near session highs with gains of more than 400 points right now same for the s p and nasdaq. All the major averages within about 2 of their alltime trading highs today. Oil prices are also higher, but different story there. Its claims from iran that one of its tankers was attacked by two missiles in the red sea. Now from tehran with more. Reporter thats right. Authorities here in iran are saying that their oil tanker was hit in the early hours this morning about 60 miles off the coast of saudi arabia. They say that two explosions damaged the hull of the ship, and even though they have dispatched the team of investigators, they are saying that this was an act of terrorism and they suspect the damage was caused by missile strikes. Now, the iranians are denying any serious damage they say two store rooms on board the vessel were damaged and some oil had leaked out into the red sea, but that has been contained now and they say all the crew members on board are safe they are also refuting a report that the ship was ablaze they say that never happened and it was all contained very quickly. Now, state media released some images of the vessel which we cant verify yet, but it doesnt appear to show any damage. With that said, the images are all aerial shots of the vessel and no shots of the hull were shown. A ship tracking site that i have been following is indicating that the tanker is now heading south under its own power bound for irans southern persian gulf coast. Now, there have been some diverging accounts from tehran as to who may have been behind the attacks. Initially, they said saudi arabia now they have walked that back saying saying that they have to investigate things further thank you. A twitter video sparking attention over controversial comments ken fisher has made, leslie has the details. Notable investor ken fisher has come under fire over comments he made at a closed door investing conference on tuesday. The world found out about it after an attendee shot a selfie video calling his comments a true debacle and horrifying and he posted it on twitter where it has more than 100 views. Here are two ex perpts of his remarks from the event that members in the audience said offended them. One attendee told us she wasnt the only person who felt uncomfortable by fishers comments. I felt like it unsettled the room and there was definitely on my end a certain amount of shock. I was very surprised i was particularly surprised when he spoke about the process of getting to know a client, it being like getting into a girls pants. Fisher in a statement to cnbc said, quote, some of the words and phrases i used during a recent conference to make certain points were clearly wrong and i shouldnt have made them i realize this kind of language has no place in our company or industry i sincerely apologize. Still, this is not the first time fisher has made comments that some perceive as lewd at an event. Another clip obtained by cnbc from a conference in june of 2018 where he again brought up sexual innuendo when referring to the Financial Services industry cnbc reached out to the Conference Organizer from 2018 which said, quote, we found mr. Fishers unexpected comments entirely inappropriate and determined afterwards he would not participate in any of our events in the future Tiburon Strategic Advisors which planned tuesdays event released a statement from the managing partner. Without naming names, he said he was, quote, extremely disappointed by the comments made by one participant which furthers the inclusion problem in the wealth and investments industry also announcing that the unnamed participant would not ever be invited back to the event. Fisher oversees about 100 billion in assets and many of his clients are not publicly disclosed. Some Pension Funds do list fiber investments as an equity manager in their annual reports. The iowa Public Employee retirement system said they hold their partners to the highest standard and reserve the right to amend or sever any contract they did not specify mississippi told cnbc that fisher manages about half a billion dollars or 2 of their portfolio. Executive director ray higgins said they will certainly consider this matter as well as the response statement that was issued by Fisher Investments as they consider to monitor the service they provide and ultimately their performance cnbc also reached out to other fisher clients, including the Kansas City Public School retirement system. Teachers retirement system of georgia and ohio Public Employees retirement system but have not heard back. Its worth noting that ateetende at the tiburon conference spent 25,000 and we are told that the discussions were confidential. And had to break that confidenti confidentialali confidentialality which a number felt were bad enough they should do so, i guess one might wonder at conferences like these that are confidential what has been said and how long its gone on that really hasnt come to light because of the closeddoor nature of these events. These are sophisticated individuals. Any time you say anything in a crowd of the public, you Better Believe that those words are either being recorded or will be repeated. Yeah. Especially in this day and age. Absolutely. Whether its marked confidential or not, things leak all the time. Even at the conference there was a sense it was received very awkwardly. Its not wow, this is what happens at these events. This was quite different in the nature of the comments even among people there at the time. You have got to choose your metaphors very carefully i mean, its just silly. Plain stupid to say things like that, and offensive what caught my attention was the response that you got, i believe from kansas city, when they were saying they would vault the statement that was issued by Fisher Investments, mississippi, and the performance. The performance has nothing to do with whether or not you want this mans company to manage 2 of your portfolio, i would say. Thats whats so interesting. As i was calling around to sources asking if they heard of any response from investors who were in his funds, people said, you know, look, what happened with steve cohen he was, you know, under investigation for potential criminal activity at the time and people still werent redeeming because performance was really good. Wow. So it is interesting what the Investment Management industry has been able to get away with if perspective is there. Whe whether that changes remains to be seen. Leslie, thanks. 2019 was meant to be the year of the unicorn. While some companies have soared, others have fallen after the break we look at what weworks decline could mean for the ipo market a live shogt of the white house where the president is about to meet with chinas vice premier reports that a partial trade deal has been reached. We will bring you any headlines as they cross. Back in two. Val, vern. Im off to college and im not gonna be around. Im worried about my parents retirement. Oh, dont worry. Voya helps them to and through retirement. Dealing with todays expenses. Like college. While helping plan, invest and protect for the future. So theyll be okay. Without me . Um. And when we knock out this wall imagine the closet space . Yes oh hey, son. Yeah, i think theyll be fine. Voya. Helping you to and through retirement. Woman what gives me confidence about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Welcome back everybody to the bond market we go and Rick Santelli at the cme. Hi, tyler a lot going on, whether its trade, as we will find out shortly. Maybe brexit is their lastminute solution maybe the biggest thing is there is a lot less positive talk on negative rates they are up 19 basis points in a week a long week of tens, up 21 basis points on the week fives and tens are both over 20. The rest of the curve is 18 to 18 basis points. Year to date of tens minus 2s, you can see that this rise in rates has been led by the long and clearly seen on the tens minus twos spread around 15 basis points lets look at whats going on with regards to bunds. 15 basis points up on the week when you consider how much smaller their yield is at minus 44 this that is a big move. The jackolantern. The dollar index you see those teeth in the middle they represent levels around 9825 just slightly below where were trading. An area to Pay Attention to. Back to you. Thanks very much. Rick santelli. Wework is seeking an emergency Debt Financing package from major banks following their failed ipo. Wework could reportedly run out of money as soon as november, and thats much sooner than analysts had expected so its now botched ipo remember was supposed to deliver 3 billion in equity, 6 billion in debt on tin gent on a listing. Thats a 9 billion shortfall. They are chasing a new Debt Financing package worth as much as 5 billion led by jpmorgan. Wework is also talking to softbank about a separate Capital Infusion over the last few weeks weworks Credit Rating has been downgraded new debt would be at a significantly higher cost to the company than the previous loans. Guys, put simply, even if wework avoids a cash crunch this year, there are major questions about funding and growth questions over softbanks role in wework and other unicorn valuations that are looking bloated today. Today alex sherman righting that he is changes his strategy, looking to target companies with clearer paths to profitability back to you. All right thank you. Yet another disappointment for softbank hitting the tape today. Various of vir are plunging. They are down by 26 in the biotech firms wall street debut. The latest to receive a chilly reception from public investors. As the ipo summer slump capped off with the wework fiasco, the heyday of the venture funded startup behind us, lets bring in hilary. She is the managing director at Insight Partners, a Venture Capital and private equity with over 20 billion under management great to get your perspective today. Thank you. When you look at the crop of ipos that have gone public, and setting wework aside for a moment since it didnt go public, the ones that have gone public that havent done well in the public markets, is there something more than just the Market Sentiment turning against these sort of companies with no paths to profitability, or is there something that you look at in how long they stayed private and how much money they raised, the path to that ipo that you say, hmm, that was it . I think that its much more to do with the former, which is the fact that the Companies Need a Good Business model, good gms, and if they dont have that, the market is going to speak when you are a private company you dont come under so much scrutiny you have more time to determine your business model, more time to think through how to make money. Once you are public, you are under scrutiny at Insight Partners when we look at what to invest in, we think it behooves us as investors to think about and do good Due Diligence on the kind of companies that have great business models, god management and a good path to profitability. The likes of a fidelity growth fund, i would think they would do good Due Diligence when they put money into privately Held Companies ahead of the ipo. Is it a pressure to deploy capital, that there is so much capital out there sloshing around because of this era of low Interest Rates that people are chasing returns, so willing to sort of suspend disbelief when it comes to investing in some of these companies . You raise a really good point. Lots of these companies are looking to put money to work before the ipo with the hope that it will pop upon ipo. So some of these valuations that are preipo, the mezzanine rounds done at huge valuations because Companies Like die tellty are looking to put money to work. Thats a good point. A direct listing though, what you do is take out that pop and you give the money back to the company. So we are starting to see that the markets are getting smart and the companies are getting smart about the fact that there are alternative paths to liquidity. One is to stay private and another is to think about going public with all the scrutiny that that involves. You know, im sure you have had hits and you have probably had some swings and misses what do the hits have in common, and what have you learned from the misses what do the misses have in common great question. So the hits. The hits are very much at the same thing in common, whether its a company we mostly invest in software i think thats where it alludes to your question, which is not all technology is created equal. Something like a software as Something Like a software a Service Business model theres a lot of predictability in the revenue stream, a lot of forward visibilitiability what the company is going to perform at, where some of the other Technology Companies that have less business models, an apparel company, hardware company, hard to determine how theyre going to make money long term and what the Gross Margins are long term. So were looking for companies with predictability in the revenue model. Great to speak you. Thank you so much. Just a little over an hour left of trading. After the break well head to the nyse for the trade take on the rally. One reason it may be a rally is because the president and chinas vice premier are meeting at the white house we have word of a rtl paiadeal well bring you any headlines as we see them. Well be back in two minutes were carvana, the company who invented car vending machines and buying a car 100 online. Now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. So go to carvana and enter your license plate, answer a few questions, and our technowizardry calculates your cars value and gives you a real offer in seconds. When youre ready, well come to you, pay you on the spot, and pick up your car. Thats it. So ditch the old way of selling your car, and say hello to the new way at carvana. Filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow stocks are close to session highs reports of a partial trade deal the reason why. Matt is following the action hes with virtue financial welcome good to have you with us how vulnerable is this rally to anything that might happen in the next hour and six minutes . Its something weve never seen before, is that what youre saying theres a healthy amount of the skepticism that anything that comes out of the trade deal will be formative enough to get a substantial rally. Its a relief theyre getting in the room together at least and having discussions but we have some Consumer Sentiment numbers that were stronger than we expected. That was the concern earlier in the week when we heard the r word, recession, was the consumer going to fall down . Certainly wasnt the case today. Maybe have a deal in place for brexit, another positive sign and maybe qe3 in the works. All of that leads to a big positive day with a long weekend with the banks closed on monday. Lets talk about the earnings that start trickling out next week what are you looking for and what will the telltales be whats interesting were going to be led off by the banks, as usual. The forecasts arent the greatest for the banks, but they have a tendency to beat or exceed healthily if we can get signs the banks are on board, maybe that can turn a corn peer thats a sector we havent seen gains in so those are the things id look at, the sectors that have been more unloved over the last quarter or two always good to see you. Well see you again. Thank you. More power lunch after this jump ball, ladies and gentlemen. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Welcome back to power lunch. We are holding onto some gains in the markets here as we await President Trump meeting with the vice premier of china at the white house. We have the dow higher right now by more than 400 points. This is a gain of 1. 8 at this point s p 500 higher by 1. 7 . I asked matt how vulnerable this rally might be if i think were far down thetrack here, looks like something is going to get announced before the weekend begins here. If it leaves the market feeling underserved, how vulnerable are we maybe later today or next week to a selloff and how much follow through. Theyre talking about a partial deal that would include some concessions from china on currency, intellectual prop and theyll be soybeans. Those parts of the u. S. Economy this is a manufacturing sensitive name, beating on eps, putting up 18 two year sales comps there is underlying strengths here. They had a tough quarter in the Second Quarter the safety sectors still a bit higher and flat, utility and stables, watch that into the close. Thank you for watching power lunch. Have a great weekend, well see you next week. Welcome to closing bell, im courtney reagan. We have breaking news, President Trump meeting with the chinese vice premier lets have a look at stocks rallying sharply today on hopes there is a trade deal in the works. The dow up 1. 8 , the accident happen the s p up 1. 7 . Weve been at or near those levels most of the afternoon lets get an