Off. We are looking at markets this morning, firmer tone. 102 points higher, nasdaq up almost 50 points, all three majors rebound yesterday on trade and currency fears, beijing and washington still in stalemate with china digging in for drawnout fight, pretty good market yesterday, lindsey, your reaction . Yeah, im actually surprised the market is taking everything that we learned through the last couple of days in such good stride, again, today like you said at the top of the show you see the yuan being weakened. Not to the extent we saw sunday night which sent the market into kneejerk reaction. I think what we are seeing the two countries are in it for the long haul and i dont expect us to have any resolution before tend of the year and we go to a point of no return, we go too far and the Economic Impact around the global is really too, too far to come back from. Definitely stoke uncertainty, dagen. Dagen uncertainty that the Federal Reserve cant fix, uncertainty is the greatest enemy of Business Investment decision, im stealing a quote, i think steel who was quoted in the wall street journal last week, again in the market, im not talking about just the u. S. Market, but in markets and economies, markets overvalued, priced for perfection and economies that are highly leveraged and companies in many instances that are deeply indebted as well, it doesnt take much in that scenario to trigger kind of an irrational panic and maybe i dont think any panic is irrational and doesnt take much and the reason i point this out yesterday, the reason that investors were so concerned in sudden drop in the yuan and other agent, the dollar denominated debt thats outside the country, you have entities, banks particularly in south korea that will try to repay debt with devalued currency with cheaper currency, that in and of itself could trigger a financial crisis and the domino effect around the world, so the stability and the currency was critical. Right, i do think that the market overreacted definitely with concerns that trade war would escalate to global currency war. The chinese okay with trade war, what they definitely dont want global currency war because it could hurt their own country citizens, less so they less purchasing power. Maria they were dedowning their currency before, the u. S. Called them out, right . Yeah,. Maria devaluing their currency. That doesnt always work, it spelled longterm trouble potentially for the Chinese Government and the chinese economy and we did see him blink here and the reason the market bounced back, they tried to stabilize the currency and reassured investors that everything was going to be okay and they didnt specifically want a currency war. Dagen thats what china cannot afford and xi jinping, we talked about this year, xi jinping is in a position where he might he really cant negotiate with President Trump coming up on this tenth anniversary, i think its in october of the peoples republic, that major anniversary for communist china, because i know that you talked about this year that when are we going to get a trade deal, it would be after the election, neither one of the men, the leaders have a lot of negotiating power. Room to give so to speak. Xi jinping has a strong image to protect, he thinks in dynasty, centuries. We think in years. Maria for sure, earnings to talk about, disneys profit reporting disappointing quarter numbers, 21st century fox acquisition cited as one of the reasons for the miss, ceo iger says costs would weigh on the company, whats your reaction here, dagen . Dagen one of the things that hurt that dragged on disneys results was, like you said the acquisition of fox assets and bob iger started the call that it was the most complicated in 14year tenure as oh ceo. Thats not good. These are assets, filmed assets and entertainment asset on the fox side that had been lagging this year, they will rebound but it kind of goes to the point that the entertainment is very reciprocal and investors are really waiting until the streaming Service Comes out later this year, thats the way that disney will ultimately be able to monetize eldest content of own and monetized all the entertainment assets. Maria if i had to make a bet, i would be betting on disney, netflix is super successful but disney has incredible i think youre absolutely right. The stock is up 30 year to date, you know, bob iger also made the comment on his call that its going to take a couple of years for streaming service to turn around like netflix and some of the others, they are spending a lot of money to make it grow and investors are betting on. They might be disappointed. Dagen here is the kicker and disney said this year, disney plus which is standalone is going to cost 6. 99 a month, disney plus will come in a bundle along with espn plus and hulu for 12. 99, same price as netflix most popular subscription plan, you know what netflix doesnt have live sports. Thats what you get with the bundle, thats a very Competitive Price and that is a very attractive option. Maria probably the most important intellectual property on television. Sure, sure, iger did say on the call that this was the most important product the company has launched since his tenure. The other thing is they have to scale it very quickly, consumers are about to inundated with streaming services, pay to play things and i think he believes he has to go quick, he has to scale it very fast. For the same price youre getting less content. People will pay for the sports and if youre a parent, the disney, all the different their assets. Dagen who can turn that down. Ive owned all of the streaming services at one point or another. I dont have a cable, ive rented the streaming services. Yeah. Maria President Trump headed to dayton and el paso today to talk with victims families days after Mass Shootings and those cities and the president making protests including beto orourke and veronica escobar. Beto, phoney name, embarrassed by my last visit to state of texas and now more embarrassed for polling 1 in primary, should respect victims and be quiet. What a tweet. Dagen beto orourke, him jumping on this issue it looks like hes trying to benefit politically from these murders in el paso quite frankly and thats the way it looks not just the president but looks that way to many people. Its embarrassing to see commentators on the left say the president of the United States is not welcome in ohio or in el paso. Its embarrassing and the president has time and time again repeatedly forcefully denounced hate and basically called for bipartisan support to help fix the issue and hes already proven, you have a proven track record of doing something about, this after las vegas, people called for bump stocks to be banned, he put out legislation that banned bump stocks, so hes waiting for people to dive into and tell him what to do to help get this fixed. Maria we talked about this yesterday, dagen, you made the point that the president has done in terms of the shootings from the bump stocks to talk about background checks than president obama has done ever certainly in two terms. Dagen they also in a bipartisan move in congress, theyve tried to close the loopholes and the National Background check system because it was Sutherland Springs shooting in texas, that murderer had Court Marshal related to Domestic Violence that the air force didnt report into the background check system, so, again, i think you have to step back and look at is the government enforcing the laws as they are on the books right now . One big thing that will happen, i think, is that congress will move forward on at least laying the ground work for National Red Flag laws or national they have many names but gun violence restraining orders where Law Enforcement and or Family Member can go to a court and get an order to remove a weapon, weapons from an individuals home. Thats what they are also called. You have to be careful about due process. Lindsey graham has teamed up with richard blumenthal. Connecticut was the first state to have these orders in place, this is something that you will see both happen. Maria you would think both sides will get together on Something Like. Dagen they have complicated. I encourage people to read about them. They are complicated, if you get some sort of standard, Lindsey Graham and blumenthal are not talking about red flag law. Maria quick break, we want to take a look at earnings in markets this morning, quick break, taking on big tech, President Trump slams google over alleged political bias, what he said and what he wants done, straight ahead on that, spacex success, 3 years after the first exploded, back in a minute. Stay with us. Kevin kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond JamesFinancial Advisor can do for you. Most people think a button is just a button. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Welcome back, iran issuing a new stern warning, Cheryl Casone on headlines, cheryl. Cheryl yeah, maria, in speech iranian president says peace with iran is the mother of peace, war with iran is the mother of all wars, he also had this morning for shipping on the strait of hormuz. In you want safety in the region, security would be for security, you cannot slam our security and expect security for you, peace for peace and oil for oil. Cheryl tensions continue to rise. Accusing of economic terrorism, willing to talk with the u. S. If all sanctions are lifted. Well more Walgreens Stores closing, shutting down 200 locations, they also said the closings are part of move to increase operational efficiency, stock is down more than 20 year to date. Video from spacex to show you, video shows a drone shift which captures the rockets which is part of protective cover that breaks off and falls back to earth after the rocket leaves the atmosphere, but, again, elon musk actually doing pretty well when it comes to spacex and the rocket launches, things are turning around for him it seems. Maria thank you so much, we will talk iran for a second, your thoughts on the new stern warning coming from iran. More of the same, with iran its all about rhetoric, you to watch what they do and not what they say necessarily, they are covertly at war with us and they have been at war for years, they did this through proxy forces, recently captured another tankard in the golf, gulf, they are there to stoke violence. A few things i worry about when it comes to iran recently, i worry that china may start buying their oil and potentially give them an outlet to help boost their economy a bit, china is trying to form new alliances particularly with the trade war and the other thing i worry about is recent legislation where democrats seem to be trying to weaken our ability to defend ourselves against iran because they are taking the president s war powers to be able to act quickly, unilaterally and do something at moments notice at a time when its needed the most. But if we are attacked first, the president doesnt need to check with congress. Theyre trying to basically take away the authorization for use of military force, going to have to work with congress to do that, now i do believe in that legislation it does say that if we are attacked first he can do something, they seem to be weaken our ability and im concerned. Maria yeah, concerning this accelerate. Sure. Dagen really quickly you know what would weaken our ability to defend ourselves is a Green New Deal and moving away from fossil fuels, the rest of the world uses fossil fuels and iran is the biggest producers, we are the biggest producer in the world, you move away from that, you remove your ability to control the price of oil which we now have in our basically as a weapon, and you weaken us on the world stage, something that the democrats dont talk about when they are talking about going into a electric cars and flying birds to the west coast. Literal birds. Maria quick break and then permission not granted, twitter warning users their data may have been used for ads without an okay, the fallout coming up. Plus market rally, stocks are rebounding, we are looking at gains this morning and momentum continues, we have the outled outlet ahead of the hoping bell when we come right back. Hmm. Exactly. Liberty mutual customizes your car insurance, so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty we all feel, we all love, we all cry. Its part of being human. Sonoma county declared a homeless emergency in 2018. You have to know the individuals youre serving to understand their needs. Working with ibm watson we can bring together data spread across dozens of departments. That gives us a fuller view of the people we serve. Dear tech, dear tech, we need to look after everyone in our community. And we want to help our fellow human beings. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Maria welcome back, markets are bouncing back, meltdown heightened by u. S. China trade tensions, this morning momentum continues, joining us right now russell investment senior portfolio kevin disney, great to see you this morning. How did you react to big selloff on monday as portfolio manager, did you buy into it or stepped aside . So we have been neutral between growth and value and defenses, going into earning season we we wanted to see how that came out, we are sort of trying to balance the line between having reciprocal and the process isnt processing earnings result, thats what we are looking into in august, not concerned from valuation level, s p 500 is about fair value today, if you look at price to book versus capital, it has been relatively positive, but the margins have been pretty intact, record Profit Margins are staying there and thats something that we are looking to into going to 2020. What is interesting and some people are calling 3 dimensional chess game between the administration and the fed right now, back them in a corner to continue to cut because of trade policy potentially amplifying already a global economy, we see that in europe, pmis below 50 and tailend is the u. S. Consume near the u. S. Maria dagen, you said earlier Interest Rate cuts are not going to save you of where we are right now. Dagen not to the point that weve gotten the escalation of this fight because, again, a trade war has now turned to what locks like a currency war, maybe not in the last day or so but, again, how much juice because we already have longerterm Interest Rates falling since last year and you have these incredibly attractive mortgage rates, how much juice would a shortterm provide in terms of lending and in terms of lower how much how much would it benefit americans. The benefit would be material if it was Corporate Investment because we have seen the slowdown and that is really because of visibility because of policy actions taken, so if theres more clarification on the policy side, but also with lower Interest Rates, thats something that could help investment. Dagen you dont get Corporate Investment without the clarity of trade policy. Exactly. Dagen Interest Rate cut would do maria yeah. Look at 10year, 1. 7 on 10year yield, thats extraordinary. Dagen lowest its been since before President Trump was elected. Broke 170 yesterday, the yieldcurve inversion is cause of concern, people are calling it a technical if it stays inverted, if you go to 1969, usually recession 404 days, the Capital Markets are telling us deacceleration, forcing policymakers into a corner and thats really not the best way for policymakers to take action. Lindsey, what are the numbers, how are we looking on the Second Quarter reporting season. Second has been really god, we are looking at 1 and a half percent growth, down 2 into the earning season, my worry is 2020 expectations for over 11 earnings, like you said, we are seeing deacceleration economically all around the globe, what happens to numbers Going Forward. 2019 numbers have come down, the guidance is really important and that would be the concern, the good news or sort of safety net right now is that the market is not incredibly expensive and thats the one thing thats a heaven for Equity Investors right now. Maria all right, we will leave it there, kevin. Kevin divney. President trump tweeted, south korea has agreed to pay substantially more money in order to defend itself from north korea, last year at the request of President Trump south korea paid 990 million, talks began to further increase payments to the United States, south korea is wealthy nation and feels obligation to contribute by the military defense provided by the United States of america, the relationship