>> glad he's found for those that get it. >> coming up, on this record setting day for equities, with record highs, intraday, for several of the major markets. we'll see whether they finish at those levels or not. >> yeah. that's it. >> thanks. "closing bell" right now. and this is "the closing bell." welcome. i'm sara eisen in for kelly evans at the new york stock exchange today. >> happy throwback thursday or something. >> it is. >> it is. >> yes. >> i'm bill griffeth. a record day. we have a record day for stocks. the dow, the s&p both hitting record highs intraday. getting a boost from positive retail earnings this morning and then after the bell tonight, we are going to get a read on high end when nordstrom reports, as well. energy also a big part of the story powering higher today. to the floor of the nymex where

it trades for what's behind the big move up. 4% on oil. >> i said my local gas station owner had the ladder out to change the price of the gasoline. doesn't take long. donald trump and hillary clinton both have been talking about their economic plans today. we'll bring you details and get you the plan from a new candidate, independent evan mcmullin will join us live to talk about what he would do to create jobs in this economy. handle regulations, deal with national security issues. we'll talk the gamut of the policy issues of candidates these days. >> and what the chances areality this point. check out shares of vail cent hit hard today on reports that the company is under criminal investigation. we'll have the details for you and the potential fallout for this troubled pharma stock. let's start with the encouraging earnings of the

retail industry. courtney regan has it. >> earnings bettering expectations by decent margin with better than expected results on the top line, as well. while comparable sales are declining for both, macy's says the trend improved each month of the quarter but that doesn't mean department stores are totally in the clear. kohl's lowered the guidance. macy's is trying to get out in front of smaller issues before they become bigger problems. the retailer is closing around 14% of the stores by early next year. here's how c.o. terry lundgren explained it this morning. >> whenever there's a setback in the company, we are first in the industry to take a very aggressive stance at moving us forward and so that's just part of it. by closing 100 stores, never easy, by the way, we closed 40 last year and we are getting out in front of this. >> he agrees the u.s. is

over-stored, especially as consumers shift to online at macy's and elsewhere. the store that is remain are going to be getting makeovers like added vendor shop s technologies and staffers. the strength of the clothing sales in the quarter of macy's and kohl's. the strength in junior and young men could be a good start to back to school shopping, a category that typically tends to get bought later in the season, back to school and see what their friends are wearing and then they go shopping. >> how does that work? scope each other. if nobody bought anything -- >> i know! that's probably true. somebody has to start the trend. i think it's my nephew. he is on trend with his glasses. >> as a kid. i was going to say, they talked up the partnership of underarmour. >> kohl's, yes. perhaps they'll get stronger once that comes in.

>> courtney reagan. nordstrom after the bell. oil sending stocks higher. jackie at the nymex with the details. why did oil shoot up so much today, yak i can? >> good afternoon to you, sara. it was an important day of crude prices and closing at $43.49. the question of why we moved higher, some of those headlines out from saudi arabia that it will cooperate in september to possibility freeze prices in terms of oil production, a problem we have out there. certainly jawboning the market higher and remind you we have seen this before. the saudis said this before. and yet, they don't agree because at the end of the day iran doesn't agree and that's the problem there. it's a market share problem that jim cramer pointed out this morning. that's very important coming to oil. still, there are two cases to be made here and i will make them for you. you decide. to the upside, the saudi cooperation issue is one thing supporting prices but also a

domestic outage today, a fire in louisiana at a refinery concerning some traders and remember this is a very crowded trade to the downside so sometimes people get in as contrarians and they can push the price up. now, oil for the downside, there's facts there, too. the glut, of course, we talked about, crude and gasoline, talking about it for a couple of weeks and not disappeared overnight. it's still something to watch. of course, there are dollar fluctuations, as well. the dollar relatively weak and spikes back up potentially on hawkish fed comments you could see the trade feel some pressure and seasonality. heading into fall in three weeks. we see it every year. prices do drop because the demand trails off and which way this trade goes at this point is hard to say. bill, you mentioned gas prices. little bit higher today. the national average at the pump is $2.13. it seems to be stabilizing a little bit so those calling for $2 gas by labor day, may not see it as a result of the rallies we have been seeing and this is a volatile trade and certainly one

that's impacting the equity market, as well. >> my guy, the gas station i always mention, drove by this morning $1.87. i guarantee you back tonight it will be back above $1.90. >> never know. >> it always comes back to bill's gas prices. >> what else -- what else should it be? >> matters to people. >> of course it does. thank you. >> sure. >> see you later. let's get to the "closing bell" exchange today. heather hughes, we have got jonathan korpina at post nine and rick santelli checks in from chicago, as well. john, is the stock market keying off oil? retail earnings or what's going on? what's with the rally today? >> i think a combination of that and other added factors there. as we get towards the end of the summer now, there's not a lot to look at in the news. economic data helped the market and the earnings out of retail

companies helped and might give us insight to the retail number tomorrow. but also, interesting to point out as this market continues to trend higher and buyers in the market, we have seen an uptick in the secondaries and we have got sponsors and suppliers and holders here willing to push supply into this market as it continues to trade higher but as we get closer towards the end of the month, things quiet down until after labor day. >> jump in oil prices or the better retail reports, stock market's now heading for a closing, record closing on all three of the major averages. does that surprise you to see given the smaller moves -- >> let's see if we can push it there in the last hour, sara. if we have optimistic spishtd. i think there's a focus on the consumer. retail sales spending expanded and the data tomorrow will either confirm or negate that and i think that's very important to see if we can reach

all-time highs in the market. or sustain the current levels. you need a strong consumer in order to move investors out of defensive areas like utilities, telecom and gold and into cyclical sectors and seeing great rotation start to happen right now moving out of one sector into more cyclical sectors not as defensive. >> rick, we got the treasury auctions out of the way for the week. how do you read demand for them? last time around 10s and 30s but still kind of average there. when's your read on all this right now? >> i think it all comes back to the stock market. yes, 10s and 30s real darn average auction. today, every metric of a 30-year bond auction of 15 billion was exactly spot-on 10 auction average and the final yield was exactly where the one issued market was and when stocks move up, and they go guns hot, we have talked about guns hot. when a market makes a new

extreme, other parts of the market and arbitrage market nature pays more attention especially in the market environment where there's so many big thumbs on the scale. so, all three indices move up and the equities drove rates. i mean, you look at a 2-year note yield. when's changed in 24 hours? gone from 68 to 75. pretty much a parallel shift all along the curve and unfortunately in many ways the auctions got in the way. participating in the auctions, probably stinging a little bit even though settlement is more time and let's not forget, you know, i don't put stock in the import price data. we have a big numbers tomorrow on retail sales and ppi followed next week by cpi and i think the factors contributed. what are we doing in rates today? bottom of the range, yesterday's 150 close, basically to the top of the range around 157, 158.

>> yeah. just below 157. jonathan, rick brings up a good point, which is, stocks leading treasury yields. sort of been the opposite story all yearlong and why you have the groups like the utilities and the telecom and the staples rallying off the back of the low yields. are we going to see a paradigm shift here where stocks take the turn to lead or a one-time thing? >> i'm not sure a one-time thing here but we have seen the shift back and forth between stocks and commoditcommodities, stocks fixed income in bonds. this pattern happened over time and i think now investors are feeling much more in fact in the equity markets. they continue to see it move higher and higher and might continue to move higher so why not get back into this now? i think that equities is going to be a leading product now. >> heather, focusing on the retailers for obvious reasons with the earnings coming out here and today we get nordstrom after the close tonight. what is your read on the consumer and how retailers are benefiting or not from what the

consumer is doing these days? >> i think if we can get an uptick in wage growth that would really help and both presidential candidates donald trump this morning on "squawk box" and hillary clinton on an hour ago talking about wage growth and the economy so that will be an encouraging sign. credit card spending is up through the roof and if you want to make a 20% return, you pay down your credit cards. that's an easy, you know, bang for your buck is paying off your debt. i think that's very important. bill and sara, i would be happy to join you. you had the coach ceo on to partake in handbag shopping. any time you would like i'll be there, as well. >> you've got so many -- >> a good quarter, as well. >> someone to join you, as well. you have to guess which one of us i'm referring to. thank you. >> handbags for back to school. >> yes. but we have to wait to see what everybody else is doing.

>> you can be a trendsetter yourself. the war of words heating up between hillary clinton and donald trump. it's showing no sign of slowing down. clinton just wrapping up a speech in michigan. our john harwood has the latest from both kand daitds on what is a big week especially for us with economic policy front and center. >> well, there's plenty of war of words but one of the interesting things about the speeches, donald trump's on monday, hillary clinton's today, is some of the overlap they articulated. start with hillary clinton today in michigan, rust belt state and she said that she, like donald trump, opposes the transpacific partnership and portrayed herself as someone that thought donald trump's approach is grounded in pessimism. >> his approach is based on fear, not strength. fear that we can't compete with the rest of the world. even when the rules are fair.

fear that our country has no choice but to hide behind walls. if team usa was as fearful as trump, michael phelps and simone byles would be cowering in the locker room. >> she said she wanted to leverage private and public resources to spend more money on infrastructure. guess what. donald trump this morning said exactly the same thing. in fact, he said this is the time not to pull back on america's balance sheet but to borrow and spend. >> normally, you would say, you want to reduce your debt and i, like to do that, too, as much as anybody. you have a military problem. you have an infrastructure problem. a tremendous infrastructure problem. you have other problems. and also, the asset is your rates are so low. when's going to happen when the rates eventually will go up and you can't borrow? you absolutely can't borrow

because it's too expensive. it would destroy, you know, our balance sheet. totally destroy the balance sheet. you would be paying so little interest right now. this is the time to borrow. >> now, a lot of democratic economists including former treasury secretary larry summers agree with the prescription. the question is, do core republican voters agree with it? remember they have been spending last eight years complaining about increasing spending and debt, guys. >> i'm going to sound cynical but i'm curious why you think we're seeing this overlap which you don't always get, especially this time of the presidential campaign cycle. have they consulted with focus groups? is this what voters want to hear right now, the rebuilding the infrastructure in the country? >> well, i think it east mostly because donald trump is running a campaign as a republican for president and that approach allowed him to win the republican primary puts him in a

philosophical place and conservative republicans like paul ryan don't know what to make of it. not only what he says on infrastructure spending, but wants to spend twice what hillary clinton is spending. also he says he doesn't want to touch medicaid ear social security. that is a core conservative of small government philosophy and one of the reasons why people conservative republicans and lots of reasons people turn away from trump and some turn away from him on that basis. >> very interesting. all right, john, thanks very much. >> see if they speak up on that issue. we'll get reaction from the newest member of the race for the white house, independent and yate evan mcmullin will join us. in the meantime, heading to the close. 45 minutes left in the trading session. possible to get records for all three of the major arverages today. the dow up about 140 and now up 121. >> this gain takes us higher for

the week, as well. see what happens tomorrow. could be seven in a row for the nasdaq of weekly gains. vary celaent getting crushe. we've got the latest details coming up. more politics, we have trump economic team member steve calk reacting to hill's tax and jobs plan speech today and whether trump can rebound in the polls. we have a lot to talk about coming up over the next couple of hours on "the closing bell."

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rally day on wall street. dow up 118 right now. excuse me. oil rallying. that's part of it. yesterday it was a laggard. today it is a leader. retail, boy, some of the retail stocks are really strong. macy's up sharply today with announcement to close about 100 of the stores and as a result mall operators general growth properties and simon property are among the biggest losers on wall street today. with investors cashing out after the announcement of macy's that it would close about 100 stores because of declining mall

traffic. >> macy's and kohl's on top of the s&p. we have a news alert of twenty-first century fox. julia? >> hey, sara, dow jones reporting that it's anticipating some settlements in the roger ailes harassment probe saying that new allegations are surf e surfacing bringing new potential liabilities as this internal probe carried out through the law firm. they say number of women coming forward in investigation who say they were victims of mr. ailes into the double digits and they're anticipating having to reach settlements with some of these women who are accusers of ailes. of course, this gretchen carlson lawsuit against ailes, although not against fox was filed last month and it's sparked a slew of reports here from these women. more allegations against ailes. we have reached out to twenty-first century fox and ms.

carlson's attorneys far update and not heard back from anyone else yet. back over to you. >> thank you. no doubt hearing from you later. for the first time, presidential candidate donald trump seems to be acknowledging the possibility that he may not win the white house. it happened earlier today on cnbc's "squawk box" in a discussion about the campaign style. let's listen. >> just keep doing the same thing i'm doing and at the end it will work or i'm going to, you know, i will have a very, very nice long vacation. >> those are his plans. gop standard bearer who claims the elections could be rigged may now have something else to worry about. a new independent candidate recruited by republican conservatives. joining us is evan mcmullin. independent presidential candidate. evan, welcome. >> thank you. good to be here. thank you. >> thank you for being here. we want to ask you today about your economic message and plan, but first, how about the

economics of your campaign? since you announced you're running, what kind of money have you raised and from whom and how are you going do get yourself on the ballot? >> thanks for asking. when we decided to launch the campaign, it was uncertain what the reception would be though we tried to test it as much as we could. but the response has been tremendous in terms of fund-raising. we have hard working americans across this country chipping in, at a clip that we didn't expect, which is encouraging. and also, we have a lot of interest from mega donors, major donors and those discussions are going forward and very positive. so we're encouraged in this regard by, you know, by what we see. >> i'm going to sound jaded but is a big part of the platform simply to make sure that donald trump is not elected? are you trying to appeal to the conservative base that he doesn't appeal to? >> never trumps. >> yeah. no. look. i'll just say this. i have been in the race for three days now.

and when i got into the race donald trump was losing by 10% to hillary clinton who i think is perhaps democrats worst nominee in forever if ever. donald trump is a weak candidate and i think foreshadowing the reality that he's not going to beat hillary clinton. that is clear to -- clear as day to me. and he's doing -- losing on his own. he doesn't need me to help him do that. it's pretty remarkable how badly he's doing and how he continues to say things that harm his interests. if he actually wants to win. so -- >> okay. >> i have questions about whether he makes it through the election at all. >> you know, you call them -- call her a weak candidate and sort of insinuate that he is, as well. but you have goldman sachs on your record. do you think that americans can vote for someone for president who worked at goldman sachs and

come to symbolize the excess and everything that went wrong for the economy and poster child for inequality? >> well, i also have the central intelligence agency on my res e resume. e spent ten years there as an undercover operations officer. running covert operations against al qaeda and others who would seek to do us harm. that's where i spent most of my career. i went to goldman sachs, there about two years and then asked to come back and be a national security adviser in congress. i could have stayed at goldman and continued to make much more money than i did going back to the government but i served this country for most of my adult life and sacrificed to do it. i spent a couple of years at goldman and learned a lot, a lot of things presidents should know like what it takes for businesses to thrive in the global marketplace and proud of what i learned and i know i can use it to help the american people live more prous prous lives. >> let's get a sense of where you stand on economic policy

then. mr. trump this week, laid out a pretty elaborate tax plan, cutting the tax rates. both for the corporate and for individuals. mrs. clinton today talking about expanding infrastructure spending. to try to create jobs. in fact, both candidates talked about that. when we ask your economic platform, what does it look like? >> yeah. well, i'm supportive of lower regulations, lower taxes across the board. all of that. the problem with donald trump is -- and hillary, is that they don't support mandatory spending reforms or entitlement reforms and why they're talking about borrowing because they're not talking about saving and they're not being honest with the american people. they've -- we've -- two third of the federal budget is entitlements. those entitlements are not reviewed by congress. they're permanently appropriated

so they're on auto-pilot and they're the major source of the deficits and source of our debt. >> so you sound like a pretty traditional conservative. is that a fair read? >> i would say on economic issues, certainly. i'm a free enterprise guy, absolutely. >> why do you think the house republicans continue to back him even though some of them often have to denounce what he says on the campaign trail? >> well, of course, you know, it can be confusing to me, too, but i have a lot of respect for many of the members there and for the house republican conference and i'll let them explain their own positions. i know that there are actually varied positions within the house republican conference and in the senate, as well. a lot of that is in response to what their constituents doing and supporting and that's our system. so i'll let them speak for themselves.

but i think donald trump would be a horrendous president on almost any level. i also think hillary clinton would -- is not the right person for the time now. she doesn't believe she's accountable to the american people and that's why i'm running. >> i'm running out of time but let me just probe a little deeper on some of the policy issues. on trade, both of them want to see renegotiated trade agreements and then, of course, mr. trump on immigration and building the wall. where do you stand on those very quickly? if you can give us a moment on that? >> yeah, very quickly. trade is important to our economy. we have to trade. 95% of the world's consumers are outside of our borders. we have got to do it. now, i'm also in favor of good trade deals and we need to be better about enforcing the details of the trade deal so there's consequences as outlined in the deals. i think we need to do that. >> are you in favor of tpp? >> there's -- there need to be some changes to tpp and those

are being worked. i hope they're made. some members of congress have some issues with some things that need to be worked out. i hope we get to yes on tpp. >> would you back nafta? >> no. >> yes on tpp. you're the only candidate on tpp. >> well, i'm yes on tpp after we make sure that members of congress are happy with it. absolutely. we have got to trade. but let me say this. i think it's also important to realize americans are suffering under wage stagnation and other issues caused in part by movementments of companies and industries elsewhere and we have to help them. their concerns are valid and we have got to trade but we have also got to help those people and i think we can do it. >> all right. good to see you. thank you for joining us. appreciate it. >> thank you. >> evan mcmullin running for president on the independent ticket. little over half an hour to go before the closing bell.

let's show you where we stand with the dow up about 116 points off the highs but still powering higher thanks to energy stocks and consumer discretionary stocks. s&p 500 up about .5% and the nasdaq up .5%. will we close at records for all three? >> that's the question. >> that's the question. here's something that hillary clinton and donald trump can agree on. eliminating the carried interest tax loophole but coming up the chairman of the national venture capital association joins us. but first, we'll head live to the summer olympics in rio where golf, bill, teeing off. >> finally. >> carl quintanilla joins us with the latest details when we come back right. improved fuel economy.icant even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better

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half hour before the closing bell, the dow up 119. nike interestingly is the best performer right now on the dow. s&p 500 is up half a percent. all of the sectors higher except for utilities. and the nasdaq composite also up about .5% here heading for a higher week overall, bill. after a mysterious 112-year absen absence, a real sport finally come to the summer olympics in rio today. carl quintanilla joins us live from the games. how did they do in golf today? >> couldn't be happier. >> man, it's picture perfect here, bill. 73 degrees, sunny. >> oh brother. >> sunny and dry. absolutely right. that 112-year absence from the

olympics, seeing golf for four days including bubba watson, ricky fowler. the u.s. is the only delegation even after all of that negative chatter to send more than two players. 72-hole individual stroke play. there's no cut. it's three-hole playoff in the case of a tie. justin rose, by the way, made the first-ever olympic hole in one. and then there's men's basketball. narrowly beating australia last night. 98-88. after trailing at the half. c carmelo anthony, highest scorer in olympic history with 293 points surpassing lebron james. if it is not about the athletes here, it is usually ant the sponsors. samsung is a global sponsor, a huge marketing presence right here in olympic park. not far from the set and in between live shots, we went over to take a look. ♪ from virtual reality to creating

personalized music mixes, to the galaxy s7 water test. samsung will showcase the company's latest technology to olympic park visitors in the course of the games. all right. so here's a way to experience virtual reality. sam wung calls it a kayak slalom. let's do this. ♪ oh. wow. that's good. in the end, everything experienced is available for visitors to purchase on the spot. well, everything except the kayak. that's one of the powers of being a global sponsor, guys. instead of having a pepsi in your -- around the corner, coke has the place to itself. same with samsung versus apple.

same with p&g and they would argue it's well spent for the lion's share with tens of thousands of guests. guys? >> is it unseasonably cold there? i know where you are and the seasons and last night in the beach volleyball, the women wore clothing last night. >> and windy with the cycling, too, right? >> yeah. it is not the summer that we are used to and certainly not the summer you guys are getting right now. it was about 68 yesterday. and i think the biggest difference is it's going to get dark very early an ensee the outdoor sports wrap it up relatively soon. beach volleyball is late at night and not the summer we are used to in the northeast. >> right. you are missing thailand-like weather here, that's for sure. >> thank you. >> see you later. >> okay. >> your favorite sport and my favorite sport on the same day.

gymnastics. >> what are the odds? time now for a cnbc news update. >> here's what's happening. two bombs exploded in the thai seaside resort killing one and wounding two others in hua hin. they were in potted plants. u.s.-backed forces in libya freed 70% of the city of sirte. the islamic state group's last honghold. the mayor said it's under control of libyan fighters loyal to the u.n.-brokered government in tripoli. a study founds thousands of crashes on american roads caused by debris. it revealed road debris a factor in more than 200,000 police reported crashes from 2011 to 2014. they resulted in about 39,000 injuries and 500 deaths. and some fans will go to great lengths to catch a baseball. check out this guy at a padres

game last night. tried catching the ball holding a plate of nachos. there you go! yikes! didn't end up going all that well. >> nachos or the baseball? gave up both of them clearly. thank you, sue. >> put them down. i could understand a beer. that's a different thing. >> priorities. priorities. >> exactly. >> right in the face. thank you. we move on. we are so late. i don't know how we get this to fit in by the closing bell. the dow up 125. it is possible to get all-time highs for all three of the major averages with about 23 minutes left here. up next, hearing from a top trader on whether he's buying into today's rally as bill mentioned. all three major averages try for record closes. oh watson, your japanese is very good. thank you. (speaking japanese) exactly. i can understand nuance,

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less than half hour to go before the closing bell. let's talk about the market action as the major indices try for record closes. joining us, steve grasso. when's doing the buying today? >> well, it depends on what you're looking at, right? always institutional money. i think that guys are rotating out of what they have been in so

we have talked about this before. staples, utilities, telecom. but what are they rotating into? today is oil and has been tech. >> and consumer discretionary. >> yesterday the lead earls were staples, telecom and utilities. so i think it's one day on, one day off. i think people are still going to be searching for yield. today the story is oil. all the time. people looking hopeful towards that saudi meeting or that not official meeting. >> right. >> do you think anyone's cutting production? do you think anyone's freezing production? iran's not going to do it. these people are just getting back online. they're going to be pumping. i think oil is either flat to down. >> not buying this? >> i wouldn't. >> always valuable. thank you. bill? >> heading to the close here. here's the number for the dow right now. it's 18,595 and we are bell above that with a gain of 126 points. the s&p and nasdaq also in

record territories. valaent over insurance fraud hammering that stock. meg tirrell will join us on the possible troubles after this.

a strong rebound for stocks today after modest losses yesterday. the dow currently up 131 so we're headed back higher here as we look to the final minutes of trade. s&p 500 up a little more than half a percent and the nasdaq, as well. awe three major indices positive for the week, bill. >> but valaent is not among those rallying today. it is among the worst performers, as a matter of fact, because federal investigators reportedly opened a criminal investigation. meg tirrell joins us with more. >> the criminal investigation into valaents are nothing new. from the most recent 10q of this week, see they're facing dozens of entities investigating different parts of their business. this one is by the southern district of new york, the district attorney, the attorney there. looking into the specialty pharmacy we became familiar with last year, allegations into the business practices there led to the unraveling of valaent stock and then finally the ending of

that partnership in october. so with "the wall street journal" is reporting is previously undisclosed investigation is focusing on whether concealing that relationship was defrauding insurers and that is what's impacting the stock just so much today. but valaent has responded saying they're cooperating and actually referring to this as a rumor about the investigation in their statement. >> all right. let's -- i got the move on. we are late here. that's a great story. we wish we could probe it further and we want updates on zika. >> there's a lot of zika news today. unfortunately, three more cases of local transmission in that area of miami so bringing our total number of local transmissions to 25 and they have narrowed the area less than one square mile in the community of miami of where they expect it's ongoing and little bit of good news. we also have some updates on the funding fight. congress hasn't allocated

anything in a bill but hhs shifted to continue their work on vaccines. >> they need more than that. >> correct. >> continue to follow it. thank you. >> thank you. >> our meg tirrell. less than 15 minutes before the close of trading. let's show you where we are headed into record closes. dow up 135. s&p up about 12.5. nasdaq up 30 points. that's little more than half a percent. plus, stocks trying to close at the highs, should investors be at all concerned about, oh, valuations? a top wall street strategist will weigh in coming up. across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive.

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investors about to get a read on the high-end retailer nordstrom's. busy day for you. >> that's right. macy's reports calm fears and we have gotten mixed results from the higher end handbag makers and a tough year for nordstrom. wall street wants to see improvement in comparable sales in traffic and just howdier have gent the sales trends are from the regular stores and the off price nordstrom rack. evidence at least those reports so far calling the anniversary

sale at nordstrom a success and wall street's going to want to know for sure, especially because the timing shifted. so just how much of the sales might have shifted from second quarter to the current third quarter. consensus for 56 cents per share on $3.68 billion. comps seen falling 3.1%. bill? >> thank you. see you at the top with the numbers. we have ten minutes left in the trading session with the dow, the s&p and nasdaq at record territory. there's an imbalance to the buy side, $600 billion. biggest we have seen in a while here. joiningousen the floor of new york stock exchange, our friend jonathan gallup. you're here to say why you don't like two sectors that have been among the darlings for the telecoms and what is it? >> i just think in order for them to do well you have to have interest rates fall further and

today's an example. oil stocks are up. market melts up. yield sectors substantially lag. i like the market. there's just -- i think there's a lot more to love than those companies sectors. >> that is today. that's not been the trend pretty much all yearlong. and with central banks full on easing around the world, what makes you so sure that we're not going to see interest rates fall further? >> if you ended with the 10-year bond yield at 1%, they'll win. i don't think that they're going to. and, you know, clearly the consensus view is that interest rates at least in the u.s. are going to be on the rise but if the industry staying stable, job creation like we saw the last couple of weeks, the market's going to go higher. yields higher and the sectors lag. >> where would you go to find dividend paying stocks or any kind of an income right now? >> i think there's kind of a sister theme so those areas that are almost equally as expensive and stable, boring, low-growth companies and not big yield games, staples, business

services, haul waste and do that, defense contractors dependable earnings streams, the market is in love with them, as well. they haven't had the over the top great year they have had in reits. >> talk about the target for year end. 2225. and every time you have been on i'm asking you when will you lower it? it's too high. maybe now you have to go the other way and raise it? >> at the beginning of the year we expected 9% upside for the year. people thought i was crazy. market fell 10%, 20% upside and stuck with the call and probably putting out the call for 2017 before we raise this but bottom line, we think stocks go a lot higher over the next year or two and a steady grind higher. >> because the fed's out of the picture right now? >> the economy? >> the economy is fine. nowhere near a recession and companies are spewing free cash flow back to shareholders.

dividends and buybacks, the yield on the s&p, 4.8% compare that to bonds, corporate bonds, government bonds. companies doing a great job of generating lots of cash, giving it back. the market likes this. >> you are more optimistic than the fellows out there. higher than the consensus and don't see that optimism of the targets usually. think oar worried about overseas growth, high value valuations, you name it. >> we are not optimistic about the pick-up in the economy. what we think you are going to see is economy stuck at 2%. also means that the business cycle goes longer, you know, and lasts longer and that keeps people moving into stocks. >> jonathan, always good to see you. >> thank you. >> good to be here. >> thank you for stopping by. holding here with the gain of 130 points but it looks like we'll have records for the dow, the s&p ian a the nasdanasdaq. we'll find out in a moment.

>> my favorite segment. after the bell, don't miss this interview. donald trump economic adviser steve calk to discuss trump's economic plan and why he thinks it is better for the country than what we heard from hillary clinton this afternoon. you're watching cnbc, first in business word wide. energy is a complex challenge. people want power. and power plants account for more than a third of energy-related carbon emissions. the challenge is to capture the emissions before they're released into the atmosphere. exxonmobil is a leader in carbon capture. our team is working to make this technology better, more affordable so it can reduce emissions around the world. that's what we're working on right now. ♪ energy lives here.

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territory, as well. it set the stage this morning when macy's came out and among other things said they were closing 100 of their stores. and the stock just took off. that's -- this is the best day they have had -- what did i hear? in eight year s i think it is. >> they're taking a leadership position in retail in general. finally addressing the over stored nature of the american retail landscape. >> overly retailed. >> best quote of the day. 7.3 square feet of retail space for every man, woman and child in the united states. only 1.3 square feet in the uk. five times more. he said it's crazy. we have to do something and see other companies announcing store closings. >> no doubt. oil, powering higher midday. and we're -- i saw brent at $46. now wti at $43. a gain of 4% today. here we'll put them all together

and heading into all-time high territory and trying to find out the last time they were all on a new high in the same day and we think 1999 and getting the statistics for you there. >> the healthiest possible thing, we are getting rotation. markets at new highs of rotation, no technical deterioration. doesn't get much better than that. new leadership groups in the last week and a half, energy is up. >> 10%. the laggard yesterday, though. >> that's right. overall, the trend is up because oil's stabilize around $42. you have energy. the big mover this quarter is tech stocks. we are at new highs in invidia, google, for example. their earnings terrific overall. tech, energy. laggards on the dividend players. consumer staple stocks. >> we are not finished with

retail because nordstrom reporting earnings in a few minutes. our friend kevin o'leary ringing the bell here at new york stock exchange. stay tuned now for hour number two of the "closing bell." welcome to the "closing bell." i'm sara eisen. a record close for the dow, s&p and nasdaq. guess what. according to this, this is the first time that all three closed at a record on the same day since december 1999. bill griffeth will rejoin us in a moment. that is how we're finishing the day on wall street. a strong rally propelling all

three to record highs. the dow up 116. s&p 500 up 10. nasdaq up 23. thanks to energy. thanks to retail. and a number of other factors. investors set for another read on retail. nordstr nordstrom's earnings in a moment. instant analysis coming up. first joining us for the hour is stephanie link, also with us for more on the markets is brian kelly. >> other sectors in other favor. that's the most important thing in the third quarter. excellent earnings results propelled earnings not just better by notably better. we have new highs in thisvidia. a leader for a long time.

amazon, google both classes. even an old tech name of ibm at a 52-week high. there's the number one headline. tech leadership in the third quarter. secondly, seeing other more cyclical sectors of leadership. industrial stocks have started hitting new highs and we see united technologies, illinois toolworks, dover, eaton. these are big, classic, global, industrial names. also hitting new highs, as well. we're finally seeing some sector leadership, as well, right now. so, retail today exerted itself a bit and not been a big leadership overall here. energy in the last week or so as we have seen oil stabilize around 42, they have moved up. industrials and tech. there's the new leadership group. lagging here? q3 leadership, you saw right there what's going on. tech, banks, materials, retail. those are the ones that are now showing the move up and are powering the market higher.

when's lagging? where's the rotation? you know what's going on earlier in the year. utilities, consumer staples. telecom stocks reaching for yields of various kinds. that has been lagging in the last month. so the bottom line here is that you can't do much bet we are the markets at new highs, leadership rotation into strong groups of technology and no real signs of technical deter yags in the markets, as well. back to you. >> all right. thank you. and for good measure, let's just give a nod to the nasdaq with its record high, as we. bertha coombs at the nasdaq market site. >> not just a nod, a tip of the hat, bill. nasdaq 100 yet another record close. and coming today within three points of taking its all-time high back in march of 2000. really significant because these large caps have lags notwithstanding the all-time highs we have seen in the likes of apple over the years. they're seeing rotation today. we are seeing a bounceback in

bio techs and really been the consumer names today that were leading the way higher. along with tech names. the consumer names on the back of the good numbers from macy's. you had ross and ulta today. they have been on fire. at least their stocks have. and that also when you look over in the consumer names, in technology, amazon is really the big driver here that has led this way higher. at an all-time high today with adobe and google, as well. so you're starting to see some of these big names of your continuing to do the leadership now. back to you. >> all right. bertha, thank you very much. so here we sit with all three major averages at all-time highs. feel the euphoria, steph. >> feel it on the floor today, for sure. >> we have kevin o'leary fans standing around. >> absolutely. >> i'm being sarcastic, obviously. this won't even make the front page of a newspaper tomorrow.

right? >> the bigger story is this rotation, as bob was just talking about. you don't want to see the next leg of the market be up because defensive sectors are leading the way. you don't want utilities and telecom to lead the way and not confirmation things are better. i'm not saying things are really great right now but the fact that cyclicals are doing well and broad based. not just fang like last year leading us higher but a consortium and stocks helping the group move higher and if the cyclicals catch a bid to continue to rally, the market goes chigher. financials have to participate. that 17% of the s&p 500 waiting so that group which is starting to catch a bit needs to continue. >> yeah. it's actually in the black for the year. >> yeah. finally. >> down pretty much all year. david, that is the question today and that is what we saw today. energy sectors leading. some of the consumer discretionary beaten up.

is that something that has legs or is just a one-day phenomenon with earnings and a pop of the price of oil? >> we think it has legs. underperform i underperforming do better. financial will be poised to catch up. we think that has legs. in term of the market overall we have been bullish all year and thought you have a 9% to 11% year and earned a lot of returns. now's not a time to jump into the market whole hog but if you're looking for new places to put money, we think some things starting to recover are early in the recovery and health care. >> bk, we are waiting for nordstrom and from dillard's. meantime, macy's, big gainer today after that announcement. do you like them? are they coming back or what do you do here? >> all the names crushed this year. right? a lot of these are rebound

trades that you know what? make one or two changes, positive changes for the company operating-wise, they're going to do well. i'm not that excited about the consumer in the long run. i'm long oil and oil related stocks so what i'm concerned about with the consumer is oil stabilize but what if it goes higher and that starts to tick up and cuts into the pocketbook a bit? that keeps me away from some of these names like a macy's or retail in general. >> all right. let's see how nordstrom did. cue the piano player. courtney? >> we have stronger than expected results. shares are higher after hours on decent volume here. second quarter earnings per share from nordstrom's, 67 cents compared to consensus of 56 cents per share. revenue about in line, 3.65 billion. comp sales down 1.2. but wall street had been looking for a drop of more than 3% so that's better than expected within the comments blake

nordstrom says that the anniversary sale performed better than recent trends and rack comparable sales up 5.3%. the company also raising the full year earnings guidance ever so slightly and a lot to like. back to you. >> it had run up into the results. it was already up nicely today on the back of the other results. thank you. >> thanks. let's bring in liz dunn who covers these retail stocks with a 11% pop in order strom earnings. looks pretty solid, liz. >> yeah. much more solid than i expected. the bump we saw in macy's and kohl's today was a different story. this looks like a pretty high quality report and raising guidance modestly. that's much better than what we heard from the others. >> i think that's an important point you make. and that is, we still saw declining sales at kohl's and macy's. what strats nordstrom? >> i think they're investing

heavy lot in the business. macy's is talking about cutting expense, taking inventory out of the system. reallocating to the system. to have a high quality report of the stock up despite the fact they have been investing makes it different kind of story. >> what do you see here? >> she owns it, right? >> yes. i'm happy and owned it last quarter and upset about and glad to see it rebound. they have a lot left to do. right? they have been working so hard as liz mentioned investing and 20% of their business is online. that's how much they're investing. most of all the group so they're ahead of the group. in that regard. there are other distribution of rack, that looks like it's very good and i would say this quarter of an impact of the anniversary sale starting later this year and a 200-basis point hit to comps and comps would have been up if you adjust for that and that's a big message and the strength of the brands they worked so hard at building is really starting to work. >> david, you're one of the

finicky value players. are any of these on your radar screen right now? >> they are. many of them were 9 to 12 times earnings and did work on them, we have had issues because they face a fierce head wind of amazon and the internet so we would be wary of companies that don't have a great internet strategy. we own target, better positioned than most. in terms of companies reported today, we think they're all cheap but we are not ready to buy them because we have concerned about their intermediate term outlook. >> just wondering how it bids for jcpenney out with results and a different story, has been a lot higher in the past 12 months on hopes of a recovery. >> yeah. i mean, that's more of a recovery story. they were coming off of a really horrendous few years so i don't know that you can draw necessarily too many comparisons.

they have a lot of low-hanging fruit and easy fixes where i think the story with macy's today was really pretty dramatic change over, you know, a store based taking 100 stores out of the system is really impressive and it's a real reallocation of capital i think that the market was right to applaud. >> do you expect others to do the same? >> yeah. i think we are over stored. you have highlighted that today on the show. on the shows. i think we are over stored. i think, you know, not a one size fits all. if you have 800 stores or thereabouts i think it's appropriate to start to think about closing stores and reallocating that capital to online and other, you know, channels of distribution or focusing on the stores that are working. >> boy, macy's closing up 17%. so investors are agree with you, liz. bk, the stock down 41% over 12 months s. this an inflection point for the department stores? >> i think it is for macy's in

that they're finally recognizing that there's an issue there. i think probably a bigger picture, i would look at some of the mall reits. if this is a trend and stores closed down, the malls could be hit on the news and something that i would be concerned about. >> liz, it's stephanie. what we have seen consistently from the companies today is that inventories are down, pretty substantial. so they have controlled them. does that bode poorly for the off price retailers in your opinion? >> i think the off price retailers have some longer term challenges so there's certainly less excess product in the system and hearing from companies like ralph lauren is going to be providing them with less product that they cut specifically for that channel so i don't think it's good news for the off price channel longer term. i don't know that it necessarily says anything for near term earnings for those companies and longer term i think it's a cautious tone. >> some of the other retailers, pvh up 5%. nike led the dow today and

talking about that. thank you for now. great discussion, guys. brian kelly, david katz and liz dunn. >> see you later on badminton, bk. >> there is. that's my favorite by far. yeah. >> love that. >> i like the shuttlecock things. that's what it's called, sfrigt. >> yes, it is. you're welcome. we have more record closes coming up. plus, facebook is hearing a word from media companies that it doesn't hear these days. no. several big media companies turning down deals with facebook for its new video feature due to unhappiness of advertising splits. coming up, we'll discuss if this could lead to bigger problems for the giant. but, first, gop presidential candidate donald trump reinforcing the economic plan on "squawk box" this morning and democratic rival hillary clinton offering her own economic vision just hours later. we'll talk to recently announced economic adviser steve calk of

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rally day and a record of

sort sets. >> triple record. >> a triple record and i was going to mention first time -- you mentioned this earl ler. first time since december of 1999, way back in the 20th century -- >> yes. >> all three of the major averages. >> dotcom boom. >> yes, it was an interesting time for all that because we know what happened in early 2000. >> the burst. >> won't be repeated. >> politics now. republican presidential nominee donald trump spoke about his economic agenda this morning on "squawk box" and hillary clinton later bashed the plans in a speech of her own this afternoon. >> my plan cuts taxes. she is going to be raising $1.3 trillion in taxes. my plan cuts taxes. my plan's going to lead to growth. we will actually have the jobs not her. >> when it comes to creating jobs, i would argue it's not even close. even conservative experts say trump's agenda will pull our

economy back into recession. >> mr. trump also announced today that he has expanded the economic advisory team to include a number of women but earlier this week hillary clinton responded to the initial members of his team which were all male. >> he's got a dozen economic advisers. let's see. he's got three wall street money managers, an oil baron, a former chief economist at one of the big banks at the heart of the financial crisis, he's got six men named steve. >> that's a good line. >> that was the good line there. joining us right now is one of those steves. steve calk is chairman and ceo of federalist savings bank. good to see you, steve. thank you for joining us today. >> good to see you guys, too. thank you so much for having me. there's not a lot to do about what my mom and dad named me. >> you don't need to apologize for your name. okay? >> okay. >> we try to apply labels to

these economic policies and, you know, while hillary clinton's may be a traditional democratic policy, economic platform with infrastructure investment, donald trump's is not exactly a typical conservative republican economic policy. would you agree? >> yes, i would agree. i think you can start off by looking at the incredible team to draw advice from. i'm not what someone might expect to play a role in this. i'm clearly a main street guy, not a wall street guy. my goal isadvancie ining homeownership in america. that's not xktly a wall street role. >> but it's also not exactly a traditional conservative idea to raise the deficit which is what this plan does. we haven't gotten a lot of details to pay for all of these tax cuts and the massive infrastructure spending, steve. >> sure. i mean, look.

i think that what mr. trump has done a great job at is sharing with everyone the fact that we are overtaxed, overburdened, stifling creativity in this country and the old policies of eight-plus years are not working. he's also unhappy with the entire way the process is run and so he's willing to step up and take a chance, draw on experts of a wide, wide range of backgrounds to get the best ideas, to advance our economy going forward. it's about the jobs. good jobs for americans. >> last hour, we spoke with a gentleman who just entered the race as an independent candidate, evan mcmullin, billing himself as a conservative he is backed by those not willing to back donald trump. he gave us, again, a more traditional view where they want to look at spending entitlement

spending, maybe curb some of that as a way to bring down the deficit. that's not something that donald trump has addressed to this point. where do you think he should stand on that? >> well, look. i think if you look at my policies i'm more of a centrist and advised people on both sides of the aisle for many years and in this particular case, i think what he realizes is we have to come together, we have to draw great ideas of both sides. we have to do untraditional things if we want to advance our economy. we want to bring back and be the great nation that we can be. i'd like to be reflective of the incredible olympic team and we are all going for the gold and i think mr. trump wants to do the same thing. >> very quickly, to your background, i assume you're going to be advising him on housing and consumer issues, community banking perhaps. does -- >> yes. specifically those areas. >> so specifically, does he plan to rip up dodd/frank, what will

replace it? >> one thing is let's stop, let's take a pause, let's put a moratorium on any new regulation and go back to the people enforcing, overseeing and looking at regulation on a daily basis and ask those folks, hey, when's not working? where have we gone too far? where do we need to swing the pendulum in the middle? get their guidance and then get the guidance and input from people that are affected by that so that together we don't eliminate everything, don't do away with some of the regulation that was so necessary that was brought about in the post-2008 crash, but rather, come together and refine the policies where it makes sense for safety and soundness in america and doesn't stifle american business growth. >> we're eager to hear details. thank you for joining us. >> thank you. >> thank you so much for having me. >> trump economic adviser. we have an earnings alert. courtney reagan with the numbers. >> this is a smaller, somewhat

regional department store and dillard's with earnings per share of 35 cents, beats estimates of 31 cents. revenue of 1.49 billion, also slightly better than expectations there. comp sales, though, down 5%. and analysts had been looking for decrease of 4%. so that's a bit disappointing. some interesting comments from the company, while the stronger performing categories were ladies and men's apparel and accessories, the ceo still says that the challenges facing apparel retailers weighing on the second quarter and calls the results poor saying it continues to reflect this. home and furniture significantly weaker in the words here of the company here at dillard's. that's what we are seeing for dillard's. we understand volume is relatively sparse. in those shares after hours and if i can just add on announcement of the gap, the gap added brian goldner, the ceo of

hasbro and that just crossed the wires and brought it to you. >> she lives and breathes retail. >> there's a lot to digest. >> got it all in there. >> thank you. >> thank you. >> you don't own dillard's? >> i don't. i think it's hard. nordstrom is a special situation to rally as much as it did but the report itself was very high quality report. as i mentioned that anniversary sale really hit the comps this quarter which will benefit next and people excited about that. dillard's with wood to chop and particularly surprised about home. that should not be weak. >> you never want to see comments of a press release saying the poor results. >> sure. >> clearly talking about the challenges in the industry that's william dillard. >> refreshing but it's uncharacteristic of ceo. >> correct. dow and s&p 500 and the nasdaq all closing at record highs. but is this market starting to look expensive? or, is there still more room to run? that's the question and we're going to tack it coming up. next though, major media

companies making about-face on facebook and the expanding video offerings. when we come back, a look at the rift of the content kings and the media giant. coming up.

it's time to discover that in a lexus suv... ♪ ...there's no such thing as adverse conditions. ♪ come to the lexus golden opportunity sales event this is the pursuit of perfection. stocks closing at record highs today, talking about all three major indices. the dow finishing higher by

almost 118. s&p up by 10. and the nasdaq higher by almost half a percent, first time we have seen all three close at record highs on the same day since 1999. let's send it to susan li here. susan? >> starting with invidia making the computer processors that go in video games and data centers and earnings beat estimates. 40 cents a piece. the street looking for 37 cents. the stock up almost 4% and revenues beat and the stock up 146% on the year. also planet fitness, earnings for planet fitness and looks like a beat. 17 cents adjusted in the quarter versus 15 cents estimate. revenues also beat estimates so it looks like planet fitness with $91.5 million compared to the $85 million is what analysts looking for. also saw same-store sales up 7.6%. back to you. >> all right. susan, thank you very much. meantime, facebook wants to

grab ad dollars from television with its new video offerings but the deals that the king is trying to make with the giants for convetent is one that they n refuse easily. julia boorstin is tracking the story in los angeles and joins us with more. julia? >> well, bill, media giants are cautious about protecting their content as they watch facebook increasingly draw ad dollars of tv ad budgets. facebook's encouraging creators to share tv clips and paying a total of $50 million to a range of companies and celebrities to create original programming for facebook live. but companies have a few points of concern, according to a new report out by "wall street journal." facebook said it wants to sell the tv ads rather than media giants to manage the ad sales and facebook is taking 45% of ad dollars from the video ads it's testing and a bigger chunk than media companies like to share.

if they resist, media companies are experimenting and nbc univers universal's e channel with five new fidel castro live shows and nbcu embracing facebook rival snapchat. this week announcing a multi-year deal to make series for chapchat and will anow nbcu to sell ads for the platform. facebook has said it's experimenting with ad models and surely the beginning of negotiations. bill? >> all right. julia, thank you very much. time for a cnbc news update now with sue herera. >> hi, bill. a judge says a man who acknowledges killing three people at a colorado planned parenthood clinic remains incompetent to stand trial. he made the ruling based on a report of the state mental hospital. a top u.s. military official says the planned deployment of an advanced u.s. missile defense

system in south korea is used for south korea's protection. the director of the u.s. missile defense agency made that remark in an interview in south korea. fire broke out at a power plant in kansas city, missouri. officials say two transformers caught fire caused by a circuit malfunction. no reports of any injuries. huffington post co-founder said he'll step down as editor in chief. ool bought the site for $315 million in february of 2011. but back in june, she also announced the upcoming launch of thrive global, that's a new health and well being start-up which she wants to concentrate on full-time. that's the news update this hour. health and well being, it is the topic of the day these days, bill. >> i guess. >> not a media company, interestingly. >> exactly. >> huffpo with no huff? >> i don't know. that's an interesting question. it would be a po. >> or a post-huffington.

>> there you go. >> see? you're not as tired as you thought. >> thank you. >> thank you, sue. >> you are welcome. stocks closing at record highs today. coming up, we'll discuss just how high stocks can go or setting ourselves up for a pullback. mcdonald's new commercial in the olympics has a head of panera of bread up in arms. what his issue is with the golden arches, popular finger food. wait you hear that. we'll be right back. ference between life and death. for partners in health, time is life. we have 18,000 people around the world. the microsoft cloud helps our entire staff stay connected and work together in real time to help those that need it. the ability to collaborate changes how we work. what we do together changes how we live. perfect driving record.

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♪ apps that please, more selfies, ♪ ♪ endless hours of the best tvs ♪ ♪ brand new apps, shows to go, ♪ ♪ awesome internet that's super whoa... ♪ ♪ everything is awesome xfinity. the future of awesome. welcome back. if you just joining us, you missed a good one today. we finished with records on all three of the major averages today. first time we have done that all three hitting an all-time high on the same day since december of 1999. dow up 117 today. s&p up 10 and the nasdaq up almost 24 points today. and this comes, stephanie, on the one-year anniversary from when china devalued the currency and sent the u.s. stock market into correction. we have gotten over that worry. >> what are the odds? >> gotten over a lot of worries and i think there's a wall of worry out there. >> absolutely. >> the biggest concern is

valuation. biggest concern up until recently what groups leading us into the rally because it's more defensive until most recently and so i think people -- there are some concerns out there. i get them. i would just say this. if you think that earnings are in the troughing kind of period, right? because the dollar stabilize, oil kind of stabilize, interest rates remain low, even going up, they're low. valuations actually have support to go higher. i would lean more towards the cheaper groups, cyclicals and fundamentally and from a foundation point, i'm comfortable. >> you have set up perfectly for the conversation. for more, we're joined on the phone by jeremy siegel. you have a bullish call on the market finishing at record closes. where do we stand right now in terms of valuations? >> i think it's very interesting. you referred to the fact only --

last time that we had three all-time highs december of 1999. and i remember in that period very closely. we were at 30 price earnings ratio with respect to the s&p 500 and we were at 500 -- yes, 500 price earnings ratio on the nasdaq. that was a crazy end of the internet mania that we entered into. and on top of that, interest rates were 5%, 6%, 7%, 8%. we are in a different world. we have got pe on the s&p at 19 to 20. yes, high compared to the historical average but not that much. we have nasdaq selling maybe in the high teens, you know, technology is a real -- quite reasonably priced sector. of course, we have interest rates at all-time lows. so, it is a different world.

i wouldn't -- than then. then it was crazily overpriced. today i completely agree with you. i think there's aaccelerating. earnings will be better and interest rates as low as they are, there's more room for this market to move forward. >> and you must take comfort, i mean, we often refer to this as the most unloved bull narcotic a long time back to march of 2009 with a major bottom there and you must take comfort from that because even today hitting the all-time highs, there is tremendous skepticism that we can continue higher here. >> yeah. i mean, almost all the people that, you know, that have been making calls on the stock market, i mean, from, you know, gundlock down the line, goldman sachs and big ones that said sell this market. there's so much bearishness at the top, totally unloved. all those people who said sell

in may and go away were so sure of themselves. of course, when everyone's sure of themselves it's not going to work. and i think that that's exactly the wall of worry calling all -- moving against all the skepticism in the market, it is not over and that's why i think there's higher prices in the future. >> it's true, stephanie. you have had all the big name investors that turned bearish over the past cycle and the fear here is that it can't last forever and with such distortions, with central banks and the bond market, there is a fear that it could come crashing down. >> well, sure. that definitely that the central bankers have thrown in this huge wrench here that it's very hard to analyze. interest rates themselves should not be where they are in the states, anyway. based on the economy point of view. right? looking at the growth. so there is that. for sure. but again, you have to go back

to profits because if profits are going higher, then markets will go higher. you have to look and see where we are in that profit cycle and why i think it's important to watch the dollar, watching oil, interest rates, watching margins and then, of course, watching top line and what changes really dramatically for me last week was that job number. that really gave me comfort that the second half of the year is poised for a reacceleration. by the way, should we get wage growth in this? that's certainly not reflective. >> a case for the fundamentals. >> okay. why we're here today. quick question to finish it up for you, jeremy. what keeps you up nights? what could go wrong? >> oh wow. there's always a major terrorism attack that skaerls everyone away from shopping or anything else. >> anything that the fed could do? anything that another central bank could do? >> on the economic front, very

honestly, i mean, yeah, interest rates will probably go up. but, hey, you know, even if 10-year goes to 2% and the fed moves a quarter percent in december, that's not going to scare stockholders. i mean, that -- you do that to the economy to get better so we are not in an area where i think anything's scary. it's going to happen to interest rates. the economy accelerating, that's, you know, gdp 3%, 3.5% for the third quarter. some people say maybe 4% in the fourth quarter. earnings growing at 6%, 8% year over year instead of flat. wow. >> yeah. >> that's a recipe for another 10%, 15%. i'm not saying that's going to happen. that's the good scenario but that's exactly what i think that stockholders now see as a possibility looking forward. >> all right. jeremy, always good to talk to you. thank you. >> thank you. >> your kind of market.

jeremy siegel market. up next, a guest explains why plans of donald trump and hillary clinton could hurt start-up investments. we'll be right back. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex

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infrastructure and carried interest loophole. hillary clinton spoke about it today in warren, michigan. >> we should also add a new tax on multi-million narls. crack down on tax gaming by corporations and close the carried interest loophole, something i have advocated for years. >> and many are not happy about it in the vc world. not surprisingly. the national venture capital association is concerned that this would hurt start-up investment. the chairman of that group is with us, right now. good to see you. thank you for joining us today. >> thanks for having me, bill. >> you got both candidates talking about closing this loophole. this is going on for a number of years. are you worried it will happen? >> i do. and i worry people don't understand the impact of venture capital in the economy. it is the best job creation engine we have. five of the largest market cap companies in america are venture capital backed.

amazon, facebook, $2.2 trillion in market cap. 500,000 jobs. in fact, recent stamford research report shows that venture capital is 3 million jobs, 86% of the r&d. by doubling the tax rate on venture capitalists, we run the risk of killing the golden goose laying the golden eggs. >> do you think it gets in the way of start-ups coming online and start-ups getting money if that's killed? and my other question is, in donald trump's plan, why can't the venture capitalists and the pe firms just sort of restructure and reincorporate to be businesses for a 15% tax? >> talk about it. any time we know that you raise taxes you increase friction and what i worry about is lack of capital for entrepreneurs. mark zuckerberg couldn't find the capital. we will have entrepreneurs leaving america to go to china and india and singapore.

we need companies and jobs here. >> you know, there's an optics problem i think you guys have and i think you would agree with that. there are those that say all the moneyed people in venture capital, do they really need a tax break? are you really not going to see -- >> why should you pay less on your income than working americans? >> right. you know, real estate agents, same kind of a deal. they create jobs but they don't get paid unless the deal goes through and why shouldn't they have a tax break. how do you combat these? >> these are great and important questions to have. we need a fair society that rewards people for the right behaviors. very important to know that venture capitalists lose money in the 42% of the deals and capital completely. >> you know that going in. right? >> but the average hold time is seven years. seven years for you to have an exit and you're investing risky assets. do we want an incentive in the

society for risky things, the find -- >> i'm going to sound like i'm picking on you. did you go into venture capitalism because of the tax break? are you going to leave the industry if you don't have this tax break anymore? >> bill, i'm not going to leave the industry and neither is many ventures but we have been around for a long time. i care about the next generation of people. i want more people in venture capital and more entrepreneurs to have access to capitals. i think they won't solve, saving the society, going and putting a man on mars and curing cancer. >> all right. well, it is certainly a debate. >> fair enough. good to see you. thank you. you're a good sport. >> thank you for having me. mcdonald's not exactly loving it today or at least it's not loving the ceo of panera bread taking aim at the chicken mcnuggets commercial today. details on the new fast food feud, coming up.

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about the preservative-free mcnuggets. i thought, you've got to be kidding. you have mcnuggets that are preservative-free. but what are you dipping them? sauces that are filled with that stuff. >> so mcdonald's responded to us here at cnbc saying, we are

proud of the big changes we have made to our food. most importantly, we are committed to doing more and will continue to make the food that people truly love to eat at mcdonald's even better. stephanie, this is an important issue, not just for consumers but increasingly for investors, as well. >> very important. you have to back what you're -- whatever you say, you have to back it up. now, panera and mcdonald's at two very different positions in their turnaround stories. panera spent a ton of money over several years at trying to improve the technology, improve the quality of the food, improve the service, et cetera and they have now for the last year, year and a half been able to produce very good results. mcdonald's on the other hand, they're just beginning, really, to restructure and really to refine their products and i think it's going to take sometime. doesn't mean you can claim something not true and very accurate in terms of the product being preservative free and whether the sauces are or not, that's a different story. >> does the ceo of a competitor,

not a good idea picking on them specifically like that, isn't? it i don't know. >> running for office for something? >> you know what? i mean, everybody really was very critical of panera when they were going through their turnaround. for years it took them time and money and messaging. and energy just to actually convince investors that what they were going to do was leading to better returns and it has in spades but -- so he can be critical as of now. >> healthy, taking out preservatives doesn't mean it's healthy. >> very true. or fat. >> yes. ups and downs of the market makes -- market makes at the new york stock exchange every day seems to shy in comparison to some of the blows the new york shock exchange takes. >> this is live picture, i think, right now. one of the leading men's roller derby teams and they're skating for a good cause, by the way. they'll tell us about that and the resurgence of their sport when we come -- going outside

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sellout crowds in arenas and now on television and trying to make a comeback. >> i remember growing up in los angeles watching the l.a. of the-birds. anyone? anyone? >> yes. >> a little before our time. >> get used to it. >> hoping to bring it to the olympic games. >> talking about the new york shock exchange. a team that competes and, in fact, they have a world cup competition next week. right? >> already happened. >> already happened. >> wait, wait, wait. >> usa took hold the gold. >> you already competed in calgary then? >> yes. >> several members of the new york shock exchange competed. usa took home the gold in the tough. >> are you jonathan rocky? >> that's me. >> who's harm's way? kimbo slice. >> where do the names come from?

>> dynamite. and malcolm sex. i won't ask where they come from. >> really, you even have the symbol here to look like the nyse. where did you come up with the name? >> a member. it was all about inspiration, inspiration from the great city we love. >> do they know about the logo? >> as far as we know. >> are you okay? >> have you ever skated down here? >> outside and not inside? >> yeah, first time skating here. you know, it's different. we have the shock. >> got the shock. >> lightning bolt. >> how many teams are there? what kind of a league is it? >> men's roller derby association and support at least 60 teams from around the world. we have a game in philadelphia. just next week against the philadelphia team, the philadelphia houlighans and we are very excited for the championships in october dallas, texas. at least ten teams from around the world. >> how long is this team been together? >> what time is it?

>> tenth year next yore. >> that long? >> how do you plan to go to the 0 limbics? >> always people trying to make that effort. we're going to take some tips from the polo association. just need a lot of money. >> now, you know, back in the '50s a lot of the roller derby was women. what happened? are there any women in the league? >> roller derby, a men's and women's component from historic times until modern times. women brought it back modern of the 800 or so leagues in the united states, there are dominating by women's leagues and same globally so it is -- there are men's and women's teams now. >> why do you think it's making a comeback right now? >> exciting. very community based sport. the whole community comes together to make it happen and just like the blood drives. blood for life. don't hate. donate. get out there and skate and donate. so the american red cross, brown paper tickets come together to make sure we are getting the blood out there for people. and really speaks to roller

derby in a community sport. having a good time in the community. >> you're good. >> hot out here. thank you for doing this. >> thank you, stephanie. >> see you tomorrow. >> the olympics coming up right now. interesting factoid. there 28 different sports in olympic programming and it feels like we're going to have all of them over the next threeç hour. later on, it's men's doubles in