27 states and one in particular, the uks David Cameron final remarks including from Angela Merkel that its important to only begin talks once meanwhile, president hollande Martin Schultz summed things up. I think we should not wait until the conservative property. But i understood they want to move forward to september, and i underunderstood the conclusions yesterday in berlin, september could be a trigger. Reporter so all 28 leaders are in a working session at the moments. We heard there from martin schulz, they dont expect negotiations until a new Prime Minister is in place. The working session goes on for about three hours, then a working dinner. I suppose the only remaining issue there is how many bitter ingredients are used by european chefs. Before you go, will, the remarkable speech by nigel farage, thats unbelievable. How much did it antagonize the people in the audience . And what is that doing to the conversation happening right now . Reporter absolutely right. That speech is unbelievable. Well worth the watch. Its about six minutes long. Nigel farage ruffling feathers even more, but the crucial difference is that was in the european parliament. Thats not as powerful as the European Council meeting behind me, made up of the individual 28 heads of state. Thats the body that will negotiate with britain the terms of separation, and of course the person that will do that from the britain side, the next Prime Minister which will come from David Camerons conservative party. It would not come from Nigel Farages independence party, so people the next Prime Ministers may by frustrated that nigel farage is antagonizing leaders, theyll make the case it wont be him for the next Prime Minister. We are a few days removed from brexit at this point, but everyone is trying to figure out what happens next for that we have sara eisen in london. What is next here, andrew is while cameron is brussels, the battle plays out for who will succeed him. Wilfred just mentioned a few of the contenders out there. This is key, because that is the person who will do the negotiation, those tricky and potential drawnout negotiations when it comes to britains exit from the eu. We will be watching, of course, on thursday for when the official contenders are announced then he or she who becomes Prime Minister will take over as of september 2nd. Theres also a question of what happens to the divided country. Theres going to be a rally, london voted to remain inside the eu, and we are expecting tens of thousands to show up to protest, to rally behind their belief that the uk belongs in the eu and potentially call for a doover, which is an idea thats gotten steam. The majority i have the scottish people voted to stay in. Will they have to hold another referendum to leave the uk . He heard one of the leaders. The Scottish Government didnt see a referendum, and we certainly did not want this result. Wel while of course i respect the views of all those who voted, it leaves me deeply disappointed. Membership in the eu is in the best interests for our scotland. That opens a whole new can of worms, what currency would this he use just the tip of the iceberg. So thats a risk going forward, but not everyone is upset with the way the brexit vote turned out. There were plenty of folks who are confident in the british economy and that it will continue and even thrive outside the eu. We caught up with a fan at wimbledon who said just that. There will be more opportunities for this country, whether its with europe or with other trade blocs, i think personally both, because its going to continue the way it has continued in terms of trade, because its mutually beneficial. Everyone knows that. Reporter thats why these negotiations will be so key once they eventually do kick off. But what needs to happen is to be a leader. And right now there is a leadership vacuum. Back to you. Thank you, sara. Meanwhile, stocks are in recoveries mode after the brexit fallout. The dow is up, the s p shy up 1 , and nasdaq up 1. 4 . Off the highs, but still positive. Earlier today Larry Summers, former treasury secretary, commenting on central banks. When you have a system that ive been warning about for the last year and a half, is more brittle than usual, because central bankses dont have room, and you have brittleness and a bad shock. Thats a prescription for a quite different situation. I think thats what markets are discounting right now. Now, lets bring in Jeffrey Sherman deputy chief Investment Officer at double line capital, and bob dahl chief equity strategist, at nuveen asset management. Jeff, i want to start with you. How long better we start to see the brexit aftershocks, scotland, northern ireland, looking at staying with europe. What would the Market Impact of that be . How are you factororing that into how you look at the rest of the year . All of these political ramifications will take months to play out, if not years. The brexit still hasnt happened yet. Theres supposed to be the closings, what people terr referring to as article 50. I find it interesting that people are talking about a doover vote. We didnt get the outcome we wanted through a democratic election so lets try a redo. So the implications are pretty broad here. We havent complete lid recovered, but ultimately i still think negative yields are the biggest harbinger to the overall economy. You have Something Like 13 trillion, thats after tripping outed bonds that maybe at least have a chance. Its because they reset based on inflation. But 13 trill chron out there, where youre guaranteed to lose your money if you hold it to maturity. And bob, is that how you see it . I believe you mention one of the negative overhangs is the media spreading fear about the potential of a trump presidency. How much is your market on Market Sentiment and how much on uk internal politiciactics vers rest of europe post this vote . All of the above. Theres no question that Market Sentiment is carb to negative. Theres a ton of cash out there. It doesnt mean its going to rush into the market, but i like to observe that the fact that the u. S. Economy is 87 domestic, only 13 foreign trade. I think americas rank and file, as shown by the Consumer Confidence number this morning are feeling relatively oak. Theyre concerned about this things across the pond, but a lot of u. S. Based companies that gets most of their earnings here will be just fine through this. Put on a Corporate Cash flow. Infinite oar negative multiple, actually, right . Yeah. I think its different to ascertain the fair value of the equity market. You go to the eurozone and look at the corporate index, you look at the broadbased index, it leads you can lend to corporations for a duration of five years, but you do that and look at Something Like the tenyear treasury, which outstrips that and so i think everything is a bit distorted. Our advice is dont buy negativeyielding bonds. You have to bet on you have a negative carry in this trade, so when it comes to the equity market with valuation, it looks rich, given where we are see things in the bond markets today. Bob, im wondering, to what extent do you think that tech might be a bit of a hedge . I mean cloud, mobile, and the internet. Those things, theyre not physical goods that are affected as much by the new borders being erected. Might investors see certain tech investments as being around some of the uncertainty he . To the extent that Economic Expectations continue to soften like last year, the socalled fang stocks and the like will do well, because people will pay up to get growth. Having said that and back to the earlier commentary, recognize nearly two thirds of the companies in the s p 500 have a higher current yield than the tenyear treasury, and well over half of them have a decent Dividend Growth rate. I think theres lots of opportunities. We just have to go find them. Thanks to Jeffrey Sherman and bob dahl from nuveen. A lot of uncertainty in the markets. Coming up, as stocks rally, aic look at what brexit means for your retirement and 401 k sdproo plus apple ceo tip cook as clashed with the government at times in the past, but that isnt stopping him from holding a fundraisers for House Speaker paul ryan. Well take a look at why. And as we go to break, the dow certain off its highs, but still up about 0. 75 , the nasdaq doing the best of the three indices, and the s p 500 doing fine, hanging in there. The next cat loy in todays market, of course, the close over in europe. Well bring that to you live in just a few minutes. Dont go away. A global product endorsement. And millions of women everywhere decided, i love that shoe. And the companys data center handled the spike in traffic without any drama. Before all of this. Cdw orchestrated a Scalable Software defined Data Center Solution using vmware nsx technology. Scalability by vmware. Orchestration by cdw. smash like an administrativeyou dont assistant. Dustrial strength your 3 oclock is here. But theres one thing you do. Its called predix from ge. The cloudbased Development Platform thats industrialstrength strength thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Welcome back. What does the postbrexit mean . And how do you protect your money . John sweeney is executive Vice President at fidelity investments. Good morning. Help us try to understand this. If youre a retiree, or frankly if youre someone who thinks theyre going to have to become a retiree within the next five years, how are you supposed to think about this . What kind of rate of return should you be looking for . The think we trill to tell retirees whether theyre in retirement or close to, is really remember that equity are designed to outpayments inflation. So if youre 65, planning for retirement that could last 30 years, you want to think about what are the ecity markets done over a time frame. Throw out a rate of return we should expect, given the way of the world, negative interest rates, everything else, what is a reasonable rate of return over the next five or ten years . Just bare minimum . So you should be thinking about a rate of return, you should be thinking about how much can my portfolio outpage inflation. The great news is if we have low inflation, that means your purchasing power is preserved. What i want to be thinking about is maintaining equity exposure, make sure you dont panic during periods of volatility. I think, john, people dont want to touch the principal, neff a nest egg, and what is the rate they expect to make to make this all work . I think thats the way that some people look at investing. We try to get people off the rate of return. But thats not the way people live. They have to bucket for an income, which is going to assume theyre going to have to dip into principal. The days of clipping couponing are reserved for the folks who have enough Interest Income can sustain their lifestyle. For most of us that means dipping into principal. Are bonds strictly as kind of a divider filler, a ballast in the portfolio . Do you think they could gain in principal . Whats the role. You want to think of them as an offset for equity volatility, an appropriate portion, within credit you have options, you have corporate credit, high yields, opportunities within the bond market that are outside of u. S. Government debt, which is a safe haven. You want to think of the role of bonds and not be concerned about negative terms over a shortterm rising interest rates. You want to think in the fiveyear time frame. I want to note we are well off the highs, the dow still up 145, but had been up closer to 200 points, s p and nasdaq also down relatively from there. John, what does diversification mean in this environment this there are a lot of categories. Trade in a way that might serve as a bit of a hedge for people. How do you look, john, as diversification in this kind of market, given the kinds of challenges we have now . Certainly you want to think about commodities as a relative value, so obviously oil as one commodity has bounced up substantially. You want to think about some of the other commodities as a small component. Remember that commodities themselves dont generate any income. The companies that so we look at Companies Growing their earnings rather than the base metal or element themselves. As follows injure to europe, what do you do . The european theyre distill going to buy soap, mortgages, pharmaceuticals, to look for companies that may be providing growth. Those european consumers will still demand goods and services. John sweeney, we appreciate it. Thank you so much. Thank you. As we go to take a break, we look at the markets again. The bounce still up a bit. Dow down probably about many 5 or so points from its highs earlier in the day. Still a decent gain, but plenty left to go. Were going to check out the european close, when we come back. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. 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Dow still posting a tripledigit gain for the session, though it has culled back in the last hour. Worth noting also treasury yields have come in again, so you have that pretty firm bids in bonds. Bob pisani . Still up, thats both sides of the atlantic. Were still up there, but you can see which is what most of the market looks like. Microas right, the reason were up, but off the the highs, the dollar has edging up a bit, and bond yields have been edging down a bit as well. Energy stocks if you put up energy xle, but very similar pattern. Tenyear bond yields. Relief rally here. Still off of the highs. Most of them still around 2 . Keep an eye on the banks. Stress test tomorrow night, wouldnt be surprised if you saw some dividend increases, particularly bank of america and citigroup here. Finally its very interesting that the vix is collapsen, so yesterday stocks down, the vix down, a little odd. Today stocks up, the vix is down. This is suggesting in the classic all interpretation of this is that traders expect much less volatility in the next 30 days than we have been seen in the prior couple days. Thats quite a drop were psych. Mike, you want to keep an eye on the volume today. Lets say were up 100 points. If its just average volume, its a sign that sellers are exhausted, id like to see heavier volume. That would be a enter sign that theres buys interest if the dow is up today rather than just sellers being exhausted for the moment. Guys, back to you. Thank you, bob. When we return, what brexit means for the tech sector. We have an early netflix investor will join us. The next big thing to watch, todays session is the european close. Well bring it to you live when we come back in just a moment. Here at the Td Ameritrade trader group, they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. There are many things you dont like coffee. Strial strength but theres one thing you do. You guys okay . its called predix from ge. The cloudbased Developme