is going to go to college. we need good jocks, and that's kind of why we're here to find them and figure out how they are made. >> great stuff, brian. watch marcus limonies, "the profit" at 10:00 p.m it's going to be great. >> the dow was higher but now down lower and they will be covering that on "closing bell." >> starts right now. >> right now >> yes, we will. welcome to "closing bell." i'm sara eisen in for kelly evans here hat the new york stock exchange. >> and i'm bill griefette. we have breaking news. >> this is a good match. >> this is a good match. breaking news already this afternoon. a new report says that north korea is now able to make missile-ready nuclear weapons. we have all the details and the potential geopolitical impact. i don't know if that has -- is partly what caused the market to turn south, but it's not by much we won't make too much of it, but we're in negative territory. >> the headlines do appear to be

getting worse. wayfair shares are sinking concerns about the online furniture company's margins and its plans to increase ad spending weighing on the stock, down a little more than 5% off those record highs that it hit earlier. not to mention potential competition from amazon. we'll talk about all of this with the ceo in an exclusive interview coming up this hour. >> who, by the way, does not consider himself in competition with amazon. he feels like their niche furniture cannot be replicated. >> so far neither do investors this has been one of the hottest stocks in the retail sector this year. >> momentum stock. >> the question is what does amazon have planned? >> dow component disney reports earnings we'll tell you what to expect and, yes, a first on cnbc interview with ceo bob iger and, of course, everybody is wringing their hands, of course, over espn let's bring you up to date on the markets here the dow down nine points we all know the dow has been up

10 consecutive days. nine of those have been a record close, and now the s&p has been in record territory as well earlier today, but now both of those have fallen into negative territory. >> there are some bright spot in today's session. i would point out technology is the best performing sector so the tech comeback we saw in yesterday's session continues today. consumer discretionary is strong with names like kors and ralph lauren posting much better than expected result. declining sales and better than expect, enough to lift the stocks 10%, 20% which we're watching and we'll watch later in the hour. we'll start with jpmorgan chairman and ceo jamie dimon this is dimon's first interview since he made the comments back on the second quarter conference call remember those >> they have become one of the most bureaucratic confusing litigious societies on the planet that's almost embarrassing being an american citizen traveling around the world and listening to the stupid

[ [ no audio ] >> everyone knows to have a healthy business environment you need a competitive tax system. everyone has improved their system and we simply haven't america is the best country in the planet and i'm a complete patriot nothing like this country. it is the shining city on the hill, but we should acknowledge our problems and fix them because the lack of fixing them is actually hurting average americans' jobs, wages and caused a lot of turmoil that we have in society today. >> you mentioned tax reform there and lots of hope initially when trump was elected that that would get delivered. do you think it does get delivered during his first term in office? >> you know, i don't know. look, i'm -- i hope so, and i'm still going to work towards that effort it's just critical we do it.

i became the chairman of the brt, 200 major companies. >> business roundtable. >> these companies employ 15 million people and do a lot of capital expenditures and individually create another 40 million to 50 million jocks, get infrastructure, smart regulation, et cetera, so a lot of ceos will get involved in trying to move the agenda forward, so i'm hopeful. >> are you starting to get near vows about the outlook for economic growth under the trump administration >> the point -- the real point is that the american economy is 150 million people go to work every day. it's businesses like this, everyone here. it's maybe shocking to people that in spite of the geopolitics, in spite of washington, that that resiliency and strength of that system is pretty good. most people don't go to work thinking about washing tonl. they go to work thinking about their kids and family and job and customers and stuff like that, and so what i was saying is that america is growing 2% in spite of some of that gridlock.

>> and wilt joins us from chicago where he did that interview earlier today. still sans cravat. sounds skeptical that we can get tax reform through, doesn't he >> i think that's a good way to sum it up. on tax reform he said if we fail, we fail, but i'm going to give it my best shot it's just so critical for america, and within that other answer he also had a slight swipe at the democrats hidden within it. why is this needed because the outlook for jobs and education he says in inner cities is, quote, a disgrace at the moment one other key topic related to tax reform is, of course, deregulation, and he had a line there for those that criticized bank re -- bank deregulation

and despite that the bottom line in the final answer, a positive outlook for u.s. growth. >> wilfred, it was interesting, a lot of good tidbits in this, but the view that he expressed on the bond market, the fact that he wouldn't call it a bubble, but also didn't seem like -- and it seemed like he was more on the side of the bears, that bonds are overvalued and this could be a problem. >> i think absolutely right. crucially he didn't want to say that it's going to cause a big issue. definitely won't cause a big issue for jpmorgan, but very clearly said i wouldn't own government debt anywhere in the world right now because we've added qe1, qe2 and qe3 and ultimately had decay the reap

the fed will tighten if they continue to tighten is because the economy is strong. he thinks the fed will be nimble and react but at the moment won't be earning government bond markets around the world as you rightly say. >> all right, wil, thank you great interview as always with jamie dimon there earlier today on cnbc, see you then. here we head to the close this next hour. the dow down eight points though it's trying for its tenth straight legend close. legendary investor jeffrey gunlock spoke to us on today's halftime report. >> after ten up days it would be completely normal. i think the vix will easily go to 20 if that happens. >> a level we have not seen since the election last november. >> where are we, half of that? >> right at ten. >> joining us to discuss this

and the markets, michael underhill, cnbc market analyst from stewart frankel steve grasso and our very own rick santelli at the cme group in chicago. this idea that bonds may snap and that could take down equities, rick, are you hearing about that what are your thoughts >> hearing about that. we've been talking about that for years. i'll tell you, who can disagree with jamie dimon. >> it does happen. >> when all the central banks were amassing humongous quantities of treasuries and a lot of money was being funneled by the low interest rates into stocks, okay, so banks like j.p. morgan could buy their stocks back didn't hear any complaints then. of course there's an issue it's called an exit, and we should all be highly aware of it it, and as for his, you know, bourkesy, confusion and the issue of a litigious society, sounds like he's a front man for the president. i mean, think about it,

bureaucratic, less government. that's what the president was elected for. confusion, less regulations. think irs. think the epa, all these agencies and i will tijou agencies litigious society, i agree with all of it. this is not embarrassing, it's kind of global all the things he describes, and finally jeff gundlach, i liked all the levels, great interview. scott wapner, my hat is off to you. if we dropped 2% we could see 20 in the vix that could be a tuesday, wednesday. then what? >> well, what do you think, steve grasso then what? and what role do you think the bond market could play in the future of the stock market here. i mean, the bond market has been moribund for a while even as

stocks have marched higher. >> to sum that up pretty well on the bond side, we leave that to central banks and what in fact miss yellen will do and that will affect the bond market. the dollar doesn't know what she's going to do. the dollar rallied up right after the election and president trump talked that dollar down based on china, his comments with china dollar settled in, but then it legged back down again when we couldn't decide what the fomc was going to do. i'll leave the bond side to rick i'll tell you the equity side. we grind higher hand continue to grind higher thereto he's no reason for us to sell off right now earnings have been great the follow through has been lackluster on the certain sectors in the economy, but nonetheless the economy still moves along, chugs along and takes the equity market with it. >> michael, the question is if the equity market continues to rise and i don't know that that's your view, which group is it led by, because that continues to sort of be a

rotating story today technology and financials are rallying together. that hasn't necessarily been the case lately. >> well, great question, so when you look at it, being a bond trader and also an equity manager now, i look at both side of the coin, right you look at the bond market and have asset level inflation with qe infinity and we're see qt, quantitative tightening and you'll see cracks in the bond market which is healthy has long they are clearing mechanisms that's part of the process, diffusing of the bond bubble to your question directly, technology, health care and biotech look a little tired. see a narrowing of leadership and look at jeff gundlach, one of the things he's talking about, buying five and eight-year puts so we're looking at an 8% to 10% correction, we are, between now and the end of the year his forecast is a modest 3% correction is between the five-month and eight-month on the curve. you'll see biotech correct and

energy, materials look cheap and you'll see a rebound and secular rotation between now and year end. >> steve, our research team always doing some great work pointing out today that even with this win streak of ten straight record closes for the dow, going back to july 26, we're only still up about 3% in that time, so it's been a very, very incremental move here we haven't had, you know, as we've talked about before. it's like they hit a single every day. the dow hasn't hit had a home run in a while here. is that a positive or not for you? >> i think it's a -- i'll take it i think that's a positive. >> okay. >> i think with all the gridlock and with everything that we've seen, negatives around the world and negatives in geopolitical world and negatives on not passing health care reform and negatives on not passing tax reform, the market has grinded sideways to higher to your point. having said that if we do get any of those reforms, do get any of that tax policy because everyone has counted that out everyone says there's not a shot

having that done or inked by the end of this year, if we get anything positive then, then this market rips dramatically higher so, yes, i do believe that's a positive. >> listen, gang, we also had the highest jolt read ever since 2000 and it was created over of million job openings, and that really did something today that's been difficult. it gave the dollar index another jolt i'm telling you. two back-to-back employment reports and two months in arrears, then a june jolt that was very strong. i'll tell you what janet wellen's wiggle room is getting small irby the hour. >> why isn't moving the bond market why is the ten-year stuck at 28? >> it did move the bond market at 1.28 and 2.22 before the employment data hit. it is moving what we call moving in the bond market not like it used to be we have a lot of quarantined treasuries in the backyard of the federal reserve. >> and, in fact, jeff gundlach said he thinks the dollar has

bottomed at this point gentlemen, thank you all see you soon appreciate your thoughts let's go to this breaking news on north korea eamon javers has details for us. >> yeah, bill, that's right. nbc news new confirming a u.s. intelligence assessment on north korea first reported by "the washington post" earlier today, and the assessment is this, that north korea now has a weapon, a nuclear weapon that's small enough to fit on a missile this is a key milestone of nuclear capability, but it doesn't mean that they have a nuclear icbm intercontinental ballistic missile. it does mean that the north koreans have achieved miniaturization sooner than expected so the way to think about this is to go back to your old high school textbooks about world war ii and the history lesson there on the nuclear weapons that the united states dropped on hiroshima and nagasaki the pictures of that fat man and little boy, those weapons were enormous it takes a significant technological breakthrough to get the enormous nuclear weapons down to a sides that's small

enough that you could fit it on top of a missile and then fire that missile that's the capability that this the north koreans, the u.s. intelligence community is now assessing have achieved, to miniaturize those massive nuclear weapons down to a size where they could put it on to a missile. the idea that they have an intercontinental ballistic missile now that's capable of delivering that weapon, that is not what the u.s. intelligence community is reporting right now, bill. >> all right eamon. thank you very much. eamon javers, welcome back from your well-deserved vacation, too, by the way. 45 minutes left in the trading session here we'll see. can we make it 11 in the row for the dow? >> one factor that's helping is tech, and you're seeing the nasdaq positive and russell positive and apple hitting an all-time high today. we'll see if those kind of names can take the dow positive and financials are doing well, speaking of the banks. >> disney has been one of the biggest dow lag yards so far this year. coming up, we'll debate whether investors should be betting on the magic kingdom, whether

returning to the media giant's stock -- >> the magic can return the stock. >> or something like that. >> the mouse house, i don't know by the way, ceo bob iger will be breaking down those results on a first on cnbc interview before he speaks to analysts on their conference call so stay tuned into coming up. >> first, we've got an exclusive interview with ceo of online retailer wayfair and, of course, the big amazon question, whether that's having an impact. >> hey, we love hearing from you. reach out to the show here, you know, on twitter, facebook, you certainly do that anyway send us an e-mail. at f's the address right there th'sor "closing bell." you're watching cnbc, first in business worldwide live-stream your favorite sport

at the airport. binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv on every screen is awesome. the xfinity stream app. all your tv at home. the most on demand your entire dvr. top networks. and live sports on the go. included with xfinity tv. xfinity, the future of awesome. furnishing site wayfair are lower after nearing record highs in the pre-market this morning this despite the fact that it posted stronger than expected earnings shares turned negative on some concerns about margin guidance and spending on advertising. >> joining us right now in a

cnbc exclusive talk about these results. we welcome bacuna iraj sha welcome back. >> thanks for having me. clearly you've pointed out that your stock has been on a tear. it's very much a momentum kind of a stock and given the games that we've seen and down as much as 8:00% and spoken to one analyst that guidance you provide seems to suggest that maybe profitability has been pushed out a little further as you try to expand that company what do you say to that? >> i think our stocks certainly have been very volatile. i think a lot of folks are understanding what we're doing and growing at a rate like 40% like we grew this quarter it's hard for everyone to keep track of what we're doing and on the guidance, we basically said that the quarter to date is growing more than 40% and we just posted the third quarter in a row of profitability in the united states, so i think, you know,

we're on a great trajectory and folks are starting to recognize it as you can see with the stock. >> it's been a stellar outperformer and a world of retail hurt so far this year do you think that this is because it's not part of the amazon effect? is it not being impacted by some of the other structural headwinds that are impacting the rest of retail >> well, i think the internet is proving disruptive to most of the industry and i think wayfair has been the big beneficiary this quarter we grew $350 million year over year in the quarter and that's a 1.4 billion run rate and we're seeing that number growing so that's what we're excited about. >> and that growth, is it as you take on more suppliers, as you advertise? i know every time you advertise, you know, your sales go up, and that's typical for a lot of companies like yours, but are you still in that phase where you don't have to work that hard to get new customers here? >> well, i would say we work

really hard, but the reason we're growing is it's really that repeat growth is growing faster than the new customer growth so the advertising drives new customers. the experience that we've been building out, large warehouse network, own delivery operation, dozens of our own private label brands and that experience is driving customers back over and over, and that's what's driving the growth. >> how closely tied are you to the cyclicality of the spending and is it in places like we should follow in home depot? >> we're less tied to the housing market than you would first guess and the reason is our average order value is a little over $200 had our customers on average is buying from us twice a year, and so it's not so -- it's not the high-end market where a customer might redo their whole house all at once. we're really serving the mass consumer, $250,000 income, 65 million households in the u.s., canada, uk and germany where

they are buying items as they go to freshen up their home and continue to build the home that they want. >> before we go, last time you were with us very quickly, you said you don't think you compete with amazon because you don't think they can have the kind of success selling furniture the way you do, and why not since there are all these other categories that amazon has gotten into and it's caused other stocks to go lower because of those categories. food, i think, and food delivery and so forth why don't you think they could compete on the same level in furniture? >> sure. everyone competes with amazon, don't get me wrong i'm not saying i don't compete with them. home is a pretty unique category that i think consumers think about differently than grocery or consumables and paper towels and their tv where they all want to buy the same items and mainly replenish those items. at home you want unique items. there are no brands and the retailer needs to do all the merchandising and product discovery work and because of all that have and the fact that

the logistics are different. you're talking about big bulky items and talking about in-home dhifsry. all of a sudden we have an opportunity to build something pretty unique that's tailored to this particular category and not very effective in other categories and that's why you're seeing that the consumers who our customers are prime members, don't get me wrong, but that's why they are preferring wayfair for this category. >> look at that stock year to date. >> we've said it. >> sdw all the shorts that they referenced to bet against the company. >> niraj shaw from wayfair what's going on, josh? >> headlines crossing from dow jones and softbank and its vision fund, that they are closing a $1 billion investment here in fanatics, the online sports retail company.

apparently bet here according to the dow jones on licensing agreements with the nfl. the investment apparently is going to close this month. part that will lift the startup total valuation to $4.5 billion, up from $3 billion of course, that vision fund, other investors include saudi arabia, apple and qualcomm guys, back to you. >> josh, thank you seems like there's news on the vision front every day. >> there is. >> buying up all sorts of businesses >> here we go. less than 40 minutes before the closing bell we've only got the nasdaq of the big three in positive territory. the dow is off by about 16 points the s&p 500 up a little more than a tenth of a percent. wisconsin was certainly one of the key states that helped deliver the white house to president trump. coming up, governor scott walker tells us how his state's economy is faring more than six months into trump's term.

>> and, boy, what a mess hundreds of hertz customers visiting portland oregon later this month to get a view of the upcoming solar eclipse outrange now at car rental company. we'll tell you why when we come back

they will be met with fire and fury like the world has never seep he has been they threatening beyond a normal statement, and

as i said they will be met with fire, fury and frankly power the likes of which this world has never seen before. thank you. thank you. >> president trump there in bedminister on another topic, talking about opioid addictions but making that clear statement about north korea and all that's been going on the last few days. kayla tausche is there in new jersey with some more of the reaction kayla? >> reporter: well, bill, we've been waiting for a comment from the president in the wake of "the washington post" reporting on intelligence that north korea has found a way sooner than officials had expected to produce a miniaturized warhead that is something that, of course, significantly ups the ante on north korea's military ability. president trump taking that as a provocation and saying that any

more threats against the u.s. would be met with fire and fury like the world has never seen. brief comments at the top of a meeting that was previously scheduled to discuss with his top advisers the findings of a report released last week from the president's commission on opioid abuse in this country, but certainly we'll see whether his other advisers have any plan forthcoming to deal with north korea, but the president with some very harsh words in response to developments this afternoon. >> i mean, they were clearly -- he used his words wisely, and it seemed like he was trying to send a message there to north korea. any word on what to expect next? we got, kayla, that u.n. sanctions vote, 15-0 which was a big success for the administration now, do they wait to see if that's going to have an impact >> reporter: well, it is expected to have an impact immediately. the economic impact at least of

the sanctions. meanwhile, secretary of state rex tillerson is still traveling through asia, thailand, kuala lumpur over the weekend. he was in the philippines as well so president trump and the secretary of state are not together, but they have been speaking on the phone with general kelly, the president's chief of staff, to try to figureying out exactly where things stand at this moment. north korea's foreign minister said if it were to exercise any of its north carolina capabilities it would only be against the united states and only in response to a clear nuclear threat from the united states, so clearly there is this standoff between the two countries right now with each side using increasingly harsh language toward the other. >> you know, the president has been loathe to telegraph his intentions when it comes to issues like this he doesn't like to put a deadline in front of another foreign power, and they haven't to this point, but i -- and we haven't heard anything about any kind of troop movement or any

kind of ship movement or anything like that in the meantime as well, have we? >> reporter: we have not we know that the president spoke with president moon of south korea on sunday evening eastern time we know that a week ago he held a call with prime minister abe of japan the language from the readouts of each of those statements was very similar in both instances leaders of each country acknowledgeded that there was what the white house called a grave and growing direct threat to the united states and to its allies in the asia-pacific region. we haven't really gotten any more substantial language from the white house about exactly how that threat has changed or how the u.s.'s response to that threat has changed, but certainly we're asking those questions, and we'll bring you any new information as we get it. >> j unfortunate to repied the headline here, kayla, because it is a sharp one the war of words heating up between the u.s. president and

leader of nock president trump saying if north korea escalates the nuclear threat they will be met with fire and fury like the world has never seen i don't know if it's related but stocks are near session lows, down a quarter percent for the s&p 500. kayla, we've been wondering about the financial impact, and a lot of investors and strategists we talked to say this is a big threat for the market and yet so far it hasn't really moved in terms of volatility just wondering at what point you have to start worrying about this in terms of economic activity and in terms of market volatility have you heard anything? >> reporter: well, certainly there are strategists trying to put a finer point on this, sara. the one common thread for the entirety of the trump administration thus far has been that there's been frustration in the market with the inability to pass a legislative agenda, but that the true test of the markets' resilience would be how the administration deals with an

external force and potentially a geopolitical ramification like north korea and how the administration deals with that and whether in fact something would come to a head or whether it would actually be solved behind the scenes. that is a black swan event as they call them that would have the ability to significantly impact the market if in fact it would come to bear and given the president's acute focus on the stock market's performance during his stwrags you can imagine that not only would he not want the civilian loss of life that would come with a u.s. military intervention in korea, but certainly that financial impact would unsettle him as well >> kayla, thank you very much. kayla touchy with the president there in new jersey. i think it's pretty clear, sara, we're seeing a market response here the dow is at the lows of the session. down 47. not a huge move clearly, but for this market lately this is a move we're down across the board and for all the major averages, and you saw there a moment ago the vix is now up about 12% and

we're above 11 right now. >> you can clearly mark an escalation in terms of the tone and rhetoric from both president trump and earlier from pyongyang today which warned it would mobilize all of its resources to retaliate against the latest u.n. sanctions threatening, quote, physical action you just heard president trump's response there threats would be met by fire and fury keep an eye on this and see if we get any more headlines from the president on this and, of course, the opioid meeting he's having in the meantime a cnbc update with sue herera. >> hi, guys, here's what's happening at this hour belgian police have locked down a neighborhood after a high speed chase ended in gunfire officers fired at a vehicle when it became stuck in traffic the driver said they were explosives in the vehicle. the d.o.t. releasing its august 2017 air travel consumer report, and once again hawaiian airlines tops the list

alaska airlines came in second, delta came in third. virgin american and spirit airlines were at the bottom of the list. and the pilot of a small plane in russia had problems taking off and ended up on a highway next to the runway where the plane slammed into a van the driver jumped out. miraculously he wasn't injured that's the gentleman in the truck. the pilot suffered some minor injuries. and film director spike lee is promoting a rally for free agent quarterback colin kaepernick lee is upset that kaepernick hasn't been signed by an nfl team the rally will take place august 23rd in front of nfl headquarters in new york you're up to date, guys. i'll send it become downtown to you. >> thanks so much, sue 25 minutes left, and we're setting lows for the session right now, at least for the dow and some of the other major averages down 52 points right now. up next, wisconsin governor scott walker tells us whether his state can continue having one of the lowest unemployment rates in the country and how fox

crop's plans to build a factory there will impact his state's economy as well. >> plus, disney ceo bob iger will be here on a first on cnbc interview to break down the media giant's earnings just moments after they are released. it's all coming up on long"csi bell." you're watching cnbc, first in business worldwide

if you're just joining us, we've seen some selling other, dow down 67 moments ago after president trump said from his place in bed minister that in north korea escalates the nuclear threat the president said, quote, they will be met with fire and fury like the world has never seen we've seen some selling in the stock market, and the vix has popped it's been up about 15% back above 11 right now. it's just over six months now since the inauguration of president trump. kenosha, wisconsin played a key role in that election. brian is with governor walker fresh off the foxconn factory win in wisconsin

it's all yours. >> listen, president trump would not be in the white house except for wisconsin, and wisconsin wouldn't have gone except for kenosha. this was the county that flipped the state that really got the president elected. perhaps maybe the most politically important county in the united states in 2016 arguably, but governor scott walker has been in office long before that. in fact, 2010, faced an uphill climb, recall vote, protests legislative fights and unemployment that went up to near 10% and it's now 3.1% i don't need to tell you that one. one of the lowest rates in the united states. governor walker, how much of this recovery is statewide and your initiatives versus d.c. and what's happening in congress >> well, a lot of it started obviously before any of the changes. certainly we appreciate the changes that the president's administration has made in terms of regulations the last six months the cabinet has been outstanding, but we started this years ago companies like where we're at

right now, one of the great companies in the country, they moved up from illinois because they saw the change. a state where the regulatory environment has gone down, frivolous law suits have gone away and the workforce has approved look at all the people here working. these are families benefiting throughout the state of wisconsin and we got good news that came recently. >> the president tweeted out recently a million jobs across america being created. do you feel like there is a little credit trying to be taken by the white house >> you know, ronald reagan once said it's amazing what you can get done when you don't care if you don't care who gets credit kenosha county, the state works together and why jim hawkins and the team from kennel came here and foxconn, one of the world's largest companies will be coming here to southeastern wisconsin as well. >> will you get the incentive package passed because a state legislature has to vote on that for foxconn to come?

>> they do 5 had,000 jobs, $10 billion economic investment over the next 15 years. it's going to be on top that have another 10.5 billion in pay roll the trade-off is 3 billion in incentives that they pay as they grow that's a good deal i think the state legislature -- >> when will the vote happen >> we'll get it done this month. >> in august. >> out got democrats and republicans in this part of the state working together because they know when you talk about these kind of jobs it doesn't matter what party you are. poem and families benefit from it. >> but the critics will say, you know what, governor walker, you're buying growth you're literally what they are talking corporate welfare, taking money away from schools and roads to -- to, you know, sort of bribe companies to come here. >> well, you look over the last six years since i've been governor we went from 1.2% unemployment back in the beginning of 2010. you mentioned we're down to 3.1% more people are employed in this state than ever before, and the state budget that's going -- that is just is that righting for the next two years, we

actually put more into the schools than we've ever put than are before, more into our technical colleges, places like gate w which helped -- >> we were there yesterday. >> we actually announceed this new structure there about three years agop because they are one of the leading technical colleges in the country. they want to help us grow here we don't care whether it's 13,000 jobs like foxconn or 13 jobs and we're going to help employers grow big and small. >> two quick questions to end it do corporate tax credits really pay off in the long run with growth, and are you going to run for president in 2020? >> not running for anything but re-election which i haven't announced officially, but my -- i'm ready to run for governor in 2018 i'm going to full my term out for the next four years. i love being governor. when you've got a state like this, there's nothing better than being governor out there. yeah, they play had a role it's not the only thing. the tax credits are something that you interest to play with texas which has no income tax is one of the best business climates for years, for decades

now, has tax credits we've got to compete with that and we have to have a great workforce and right to work and a good regulatory environment and have to cut taxes which we've done on businesses and employers and individuals and property taxes all those things is why people should come to the state of wisconsin, not just to do business come to travelwisconsin.com and see why it's such a great place to tour. >> thank you, governor scott walker for joining us on cnbc. foxconn got all the attention, but the german company helebo and jelly belly is down the road so this could be the sweetest cheese-filled county in the united states in a couple of years. >> that's a good combo. >> the gummy bear are coming thanks, brian. good job. >> 15 minutes to go before the closing bell we're following the stock market reaction there was a noticeable dip across the market. >> absolutely. >> on these headlines that we just got from president trump threatening north korea.

really taking up the threat when it comes to that escalation of war of words, responding to some of the recent provocations the s&p is down a third of 5%. >> more of that coming up. disney highlighting earnings after the bell ceo bob iger will talk about the results and the impact of cord-cutting all in a first on cnbc interview as soons os numbers are out. stay tuned for that. if you are 62 years old or older here's some good news! you may be eligible for a home equity line of credit with enhanced benefits.

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north korea best not make any more threats to the united states they will be met with fire and fury like the world has never seen he has been very threatening beyond a normal statement, and as i said, they will be met with fire, fury and frankly power the likes of which this world has never seen before. >> that from the president moments ago there in bed minister, new jersey, and the market the equity market. fell on those comments, not a dramatic selloff, but enough that it pushed the dow down

a link to a fox news article about u.s. spy satellites picking up two missiles being loaded on to boats off the east coast of north korea that was classified information that the president was tweeting, but he seemed to be aware of movement in that area. then this afternoon you have the president saying that fire and fury would come on behalf of the united states if in fact north korea continued to ramp up this program. let's be clear that's the opposite of de-escalation in this situation and it's unclear where the u.s. strategy will go from here. >> kayla, we've got to go at this point scott, thank you i'm sure we'll be talking again. >> getting close to the phone. >> yeah, exactly. >> got our earnings to follow for you.

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up next, we're coming right back with the closing countdown and art cashin's take on this market decline following president trump's recent nthor american comments, north korea comments the stock market is lower with the dow down almost 50 points. we'll be right back. everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they pick up some of what medicare doesn't pay and could save you in out-of-pocket medical costs. call today to request a free decision guide to help you better understand what medicare is all about and which aarp medicare supplement plan works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks,

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this easy-to-understand guide will answer some of your questions and help you find the aarp medicare supplement plan that's right for you. about two and a half minutes left in the trading session here we've brought the man in, art cashin from ubs to talk about

this market action, and let me just point out the dow, we were headed, it would appear, for an 11th straight up day until these comments from president trump about north korea and down it went down about 60 points at the low and now down 43 the other way around, the vix, which has been hovering and been straddling 10 for a while, up 13% suddenly at 11.18, so what do you make of the market response i mope, it's not a huge selloff, but for this market, that's a pretty good move here lately. >> got a combination of a couple of things. the vix, got a little help from jeff gundlach who said that he sees a pullback coming, and it's probably going to take the vix up to 20. >> which we've not seen last september. >> yeah, so some nervous shorts in the vix the other thing that happened was with the market having been up through midday, there were

people planning to sell very lightly into the close thinking you might get a closing rally which has been a factor over the last several times, and then when the president came out with some rather harsh comments, some of the buyers disappeared. now if you're waiting to sell amend the buyers are disappearing, you're going to start dumping, and i think that's a little bit of what you saw. they have come off the bottom. they lock like there may be a little bit of a buy. >> and, bob, got earnings coming out. disney out shortly and a slew of others coming as well. >> what i'm waiting is for the retailers to report. surprising good numbers from ralph lauren and michael kors and the overall business picture is a 0% decline in captain stores we'll hear from jc penney and kohl's later in the week there's some hope that the retail, just like the oil stocks, have sold off so much, that they could be due for a bounce, hand they have been bouncing in the last woke. that's a little bit of a hopeful

sign. >> all right thank you. so we've broken the streak the dow will finish lower for the first time since back on july the 26th. we'll get to those earnings from disney momentarily and talk more about the situation with north korea coming up on the second hour of the "closing bell. >> welcome, everyone to "closing bell." i'm sara eisen here today for kelly evans. bill will be joining us in just a moment a look at how we're finishing up the do i on wall street. going out with declines. the dow breaking that ten-day win streak after nine record closes the dow did close lower today, just fractionally though, a little more than .1 of 1%. the s&p 500 closing at a record yesterday pulling back a dade.

down a quarter of 11%. the north korean comments really taking a leg lower for markets into the final hour of trade took the nasdaq lower. it was higher earlier in the session closing out with a loss of .2 of 12% a big hour of earnings coming for you including the first on cnbc interview with disney show bob iger on his company's results. we'll bring that to you in moments. first, it was these comments just moments ago that president trump made that sent the market lower. listen >> north korea must not make any more threats to the united states they will be met with fire and fury like the world has never seen he has been very threatening beyond a normal statement, and as i said, they will be met with fire, fury and frankly power the likes of which this world has

never seen before. >> joining us today, cnbc senior market commentator mike santoli as always. michael yoshikami is here founder of destination wealth manage president and danny hughes here of post nine, ceo of divine asset management. welcome, everybody mike, in an unusually calm market the president of the united states talking fire and fu fury it was a little bit too hard. >> it sent a mild shudder through the market that we've been talking about has not been looking for excuses to pull back, right? it definitely struggled with the new highs and kind of hovered there for a while, but we were at the end of a ten-day streak of the dow kind of putting in successive gains i don't think this was a welcome response obviously you had the buyers back off as art cashin was just saying i will say it was not a complete, you know, flight to safety type response bond yields barely come down gold didn't budge. >> dollar index steady. >> and let me just remind

everybody we've got disney earnings coming out any minute here so we may have to interrupt this conversation. what do you make of these numbers and what will happen with the markets in the response to north korea >> first of all, there's always been the concern that there would be some sort of geopolitical drama what do i make of it is it i agree with mike. it's been a muted response. >> why >> not been much of a shudder. this is a market that wants to go up for some reason. so is it reasonable for the market to pause after ten straight days of up. it should be reasonable, and if you're looking for a reason to sell we just got if. >> investors are on autopilot. they have been on autopilot. we saw it last year when almost $490 million went from active managers into passive managers, and until june of this year, another $500 billion went to passive managers investors are putting it, setting it and forgetting it.

>> is this complacency >> yeah. >> even though the market responded the way they responded today? >> investors won't do anything about it, they can't do anything out of it. there's no way you'll outgun any of the systematics that will take place if something -- when something really does occur. >> and the issue is investors in large part have forgotten what to go like to have a downturn. we've seen money pouring into 100% equity etf sort of assets poem don't remember that the s&p was down 50% during the financial crisis. >> it happened like that. >> that was a million years ago. >> not complacency but it's recognition of a macro environment where we got very good economic news this morning. by the way, this is like the 150th trading day of the year. bond funds have had inflows every day but five people are throwing money at safer bonds. it's not as if they see this mad rush to risk yes, it's an expensive market, maybe one that's not accounting

for all that can go wrong, but complacency means i think people taking risks or not recognizing the potential downsize. >> that's right. it's not necessarily complacency. it's due to be rattled and shaken up a little bit. >> i think you're right, mike. i totally agree with you because they are putting money into bonds but they are also realizing, hey, the dividend yields on these large-cap companies look pretty much the same and i think you're right. they are not realizing the risk. >> and i was pointing them out earlier from my research staff even though he eve had nine consecutive records for the dow. not like we've had an explosive rally. in that time the dow is up less than 3% so it's a very, very weak star stef rally. >> and we've got valuations where they are at right now. i don't see how they can be explosive. if it was explosive up you might be a little bit more worried. >> though there are fundamentals which we should talk about there were a record number of job openings in this country there was a clear reaction as

mentioned earlier in the u.s. dollar yields moved up a little bit takes a lot these days retail earnings were a lot better than feared like kors and ralph lauren. >> as promised disney's earnings are out. julia boorstin, give them to us. how do they look >> bill, before we get to the earnings i want to get to some big announcements out of disney out of the future of the streaming business, the company announcing just now it's going to acquire majority ownership of bam tech to acquire an additional 42% stake in bamtech giving disney 45% ownership of bamtech which is a streaming technology company with this announcement they are announcing a new espn multi-sport streaming service which will debut in early 2018 this is the direct-to-consumer sport service that we have heard bob iger talk about in the past. now they are announcing that there will be so,000 live sporting games a year, including major league baseball, the nhl, major league soccer, tennis and

college sports this will be accessible through their current app and big news to have the details of this app and disney's direct to consumer strategy disney also announcing it will launch a new disney-branded direct-to-consumer streaming service to launch in 2019. what's happening here is disney is pulling its films from netflix so they are going to bring in starting with the 2019 theatrical slate of films, they will bring those movies to this new streaming service, and it's going to be disney and pixar-branded, along with what they say is going to be a significant investment and an annual slate of original movies, tv films, short-film content and other exclusives for this service. no comment on how much they will be charging for these subscription services but it's a big move for disney to go direct to consumer with the espn and disney brand now, over to earnings, disney

reporting $is.58 in earnings per share. that's beating expectations by about three cents per share. revenue coming in a little bit lighter than expected at $14.238 billion. wall street expectations were for 14.42 billion. looking at, of course, and focused on the media networks division, cable networks saw a 23% decline in operating income and cable networks saw a 2% decline in revenues due to higher programming costs, including some nba costs a higher rate increase for nba programming. looks like a real strength here was really in partner resources, an 18% increase in operating income and i think there's a lot of interest on the upcoming earnings call and in my interview coming up with bob iger and understanding the decisions to launch the new team services kelly, pack over to you. sara, back over to you. >> thank you julia, stand by there with bob

iger we'll get to you in just a moment i'm struck on one thing, mike. i wonder if les moonves knew they were coming with the streaming service because cbs announced a similar service. didn't have a name or launch date, just throwing that out there that that's coming. >> and it wants to show that every company knows the correct that they have to do they have to be in position to try these things it's not let's just throw this out there type of moves but investors will say is it going to be fast enough? will the transition be smooth enough that we can sort of overlook the fact that the legacy business is in the retreat. >> disney down 3%. interestingly netflix shares are getting hit in the after hours there's the trade, down 4.2% right now. disney come after netflix. >> that would be the disney-branded portals of content, not the sports because netflix explicitly -- i know that there's a piece out thereto

and disney is a service. you can subscribe to disney in every one of its forms, including them to parks. that's down the road and the bamtech addition, they have been very high on that for a while. >> disney had to announce something and they did the espn announcement makes total sense so it's not surprising that netflix is down. netflix has had it to themselves for a long period of time. you're going to see cbs and abc and disney they are all going to jump in. >> and this is a way for them to really differentiate themselves. think about the content that disney can be -- >> that's why novelsics is getting hammered. >> let's hear more about this straight from the source and get back to our julia boorstin for the first on cnbc interview with disney ceo bob iger. julia, take it away. >> reporter: thanks, sara and bob iger, thanks so much for joining us ahead of your earnings call. really appreciate it with this big news today about your big investment bamtech and the two new streaming services in the works

why did it make sense? you already owned a minority stake in bamtech and why did it make more sense. this makes a strategic shift from the platform since we bought the 33% share a year okay would give us more of an ability to shape the services that we just described. >> and it was two years ago almost to the day that you talked about the rise of cord-cutting and how that was starting to really impact espn and the impact you saw going forward. how much is all of of this about the rise of cord-cut considering and you needing to make big changes to change the future of espn >> well, this move capitalizes on a few friends that we've seen on the sports side, first of all, live sports continue to be very, very popular 94 out of the top 100 tv shows in 2016 in the united states were sporting events, for instance secondly, the espn brand is still very strong and, third, we

have seen a fairly significant increase in app-based media consumption on services that are over the top or direct to consumer services. we felt that it was time for us to take a bigger step in that direction to offer espn-branded live sports on a service that we control, that can be bought over the top and sold direct to consumer on a platform, the bamtech platform, that's really impressed us in terms of its live streaming capability, the ability to manager customer services on basically a soup-to-nuts basis meaning from registration and customer acquisition to customer attention and credit card manage president, and they also have a very strong ad tech service and an ability to mine user data, so this is a very row tuft platform, perfect for what we want to do with it for espn. >> tell us about what the espn services is going to look like you say it's launching in the first half of next year. how much are you going to charge

for it, and what can you access if it doesn't include what you currently have on shiwen >> we have one app we have the consumer in mind so there's one espn app espn or a sports enthusiast can use the espn app as they have been using it to access scores and highlights and other sports information. it can also be used to you a they kate their subscription to multi-channel providers so they can watch the linear espn networks on it if they would like to have access to some 10,000 additional live sporting events just in the first year, then they can buy the subscription service which is a complementary or an additive service to the espn channels through the same app, so it's a one-stop shopping, one-stop experience for the consumer again, all espn-branded. >> and who do can you say this new service is targeting cord-cuters? >> targeting sports enthusiasts and fans of espn.

>> and so just to get a better sense of how this will fit in with your overall strategy is there had a world in which you would break your regular espn service out from the bundle and offer direct to consumer for this. >> for now the model of the multi-channel ecosystem, one that espn has obviously distributed services on from the beginning, is still very robust in terms of its profitability to the company and to espn. so we don't have right now a need to necessarily break it out from that, but this certainly gives us the optionality if we get to a point where that business model is no longer serving the needs or the interest of the company and the shareholders and espn. this gives us the ability to go direct with what is the espn linear service, but this is not an announcement in that correction right now the technology platform and the user interface that we're buying and that we'll continue to manage certainly gives us that

ability though. >> but you did see what was it, as 23% decline operating in your cable network which has dragged down really by what's going on at espn. >> it's aberrational this quarter. let's be careful we said all along that a new contract with the nba kicked in which is now that it would have an ipreeshable effect not just on our quarter but the 2017 result we actually had an increase in subscription revenue on the quarter from our media network it was slightly offset by losses in the network and subs. seen a continuous decline in subs from our distributed networks, yes. >> so what are you seeing in terms of overall cord-cutting in the trat kissal tv businesses versus what you've seen from the gaming and specifically video bundles? >> we've seen multi-channel ecosystem due to a number factors, people not signing up until later in life. some cord-cutting, some

migration to skinnier bundles. it's a combination of things still, by the way, extremely profitable product for our company and for a number of other companies. >> tell us a little bit more about the disney app that you're building for 2019. sound like you're building a mini netflix. >> well, we're building direct-to-consumer disney service. we've had a good relationship with them. they have been doing pixar-branded movies and marlon and "star wars," and we had aron -- starting with a 2019 slate and that's what we're doing. we're creating a disney-branded service that will have those movies on it, and if you look at the 2019 slate, it includes "frozen 2," "toy story 4" and a live action remake of lion king as a prince so it's an

incredible slate in addition we have a film library product and tv library product and we'll be making a significant impact for this exclusively. if you want to subscribe to a really rich, robust, disney-branded service you can do it. it will use the bamtech platform to basically drive or power. >> do you think this is on the scale of a netflix, and will you be offering it overseas and here in the u.s.? >> the disney brand is never stretched. a lot has to do with product cycle hand how we managed the brand over time. interest in disney is growing. this is a project that will play out with a global product, but

in to 19 we'll launch in the united states a disney-branded subscription service direct to consumers >> will this be the entire library of disney movies or just the movies that you're bringing over from netflix? >> it will be a combination. it will be the pay movies, in the pay window so goes theatrical win o', which was the home video, and digital sales and rentals and post that. the disney pixar movies will be on this platform in its to that, we'll have a significant amount of disney product from the studios over time and television library product, but we're going to make a significant investment in original disney-branded television and motion pictures for just this platform. >> netflix is spending about $6 billion this year on original content. how will your spending compare to that? >> less. >> less. >> yes. >> what does this mean with your relationship with networks

we have a cooed relationship. >> will you pull that? >> we won't pull that. those are great relationships and we'll possibly license with them down the road and what this is now for us is a disney-branded service, mart of on it's own, and we think that the time is right to do that given the trends that we're seeing, consumption, the value of the disney brand and power cycles and all the bamtech jekity will this be competitive >> we've got time to determine what the pricing will be. >> does this lay the groundwork to launch a marvel service or "star wars" service down the line >> we have the technical capability to do that. are i guess you could suggest because of that it lays ground work this lays the groundwork for the company to do a number of

things it provides us with all sorts of optionality that we haven't had before it's one thing to say you'll be in the business of direct to consumer or over the top it's one thing to do it and to do it you need a strong locality and it's in a completely different way. has nating new, the best in this quarter. looking at this quarter and the bookings you've seen the rest of the year, what's your assessment of the health of the american consumers? >> we've seen that at our theme parks. it's very strong a lot has to do with the interest in the product that we've created and the service that we delivered. you look at disney world and disney world, and paris and hong

kong and there's the ip that we've tapped in. what we've done with the "guardian of the galaxy" and with jim cameron and and dora in california and thesehave been great experiences and the businesses we run are quite healthy and it suggests that the american consumer and consumers in other parts of the world will continue to spend and have what we've had earlier. >> you're spending right now billions to have -- if there is an argument downtown, here or in nan do you think that might affect your results? >> short term, but we've never looked at the business as short term we were at a pretty acycle which/ so we're going to continue to

rest in theies in for a long time if you try to manage the businesses year by year or quarter by quarter then i think frankly you create a suboptimal experience for the consumer and not really building the business for the long term. >> one thing we've talked about in quarters past is the need for corporate tax reform disney payses a particularly high corporate tax rate. do you think washington will be able to get corporate tax reform done >> i don't know. i'm not going to bet on that one. it's very complicated like all things in washington these days. i'm going to lay a bet down. we would like for it to happen we believe it would dev fit and level the playing field, two, it would give us the opportunity to return capital to investors, more capital to investors and invest more in our businesses and even create more jobs which

we've been doing in the united states more capital would give us the ability to expand even more. >> you dropped out of the president's business advisory council in june after president trump pulled out of the paris climate accord have you -- you said about three months ago that you thought it was important to have a seat in the room when that happens have you been in touch with the president since then >> i have not, no. >> and just a final question since the new streaming service is of so much interest do you think that other companies will start doing what disney has done in creating their own direct-to-consumer services instead of using novelsics? is that a streaming option >> i can't discuss much about the other companies. all companies have access to that kind of product vital to what we're doing so i

think that obviously gives us quite a competitive advantage show i would suggest i don't think you'll see much of this from other companies but, you know, i'm not running those companies. >> we'll be very curious to see more details of those services as we get choser to their launch and now we understand you go up to your earnings call. thanks for taking time bob iger, ceo of disney. guys, back over to you. >> julia, as always, very thorough appreciate it very much. we've got the panel back here with us. you know what, the things that occurred to me, mike, what took him so long to develop an app like this to display disney for all it has >> well, i think they are navigating this tricky balance which, you know. >> contractual obligations. >> obviously put out there which, look, they have a great business and the bundle is not falling apart. it's receding slowly and when it comes to the technology so

important, it's the way you stream things in roletime and can execute games and get them to a lot of different people amazon and twitter have tried it and it's not foolproof so that side of of it may need you need bamtech. and you also have great partners in terms of distribution so this is more of the same of everyone is a frenemy it's been that way for a long time look, cbs has a studio that produces tv shows for fox, and all the rest it's always been this way. >> right, right. >> and a lot of them have teamed up with netflix. if you can't beat them join them kind of men that the this seems like that's going in another direction. >> at least at first everyone feels like they give away the natural. >> danny, disney's been a lag yard line this morning and if you quinn can the initiatives -- we think disney is a bellwether and that you have to own kids did i because of the contempt

and the fact that they are all about the experience and the experience is a great experience i do think it's interesting, you know, that what we're seeing and what finally disney is getting to is that the cable mode is filling in it's not going to be what it used to be and they need to have plan "b about the about the which has taken a real long time, to mike's point. they are long-term thinkers and i think you need to own the stock now. >> the idea that it's taken a long time suggests that netflix is so far out ahead and, therefore, so many people are not candidates to buy the business service what netflix has taught you it's not a full comprehensive replacement or an either/or. it's a this and that and disney can play in the mix. >> disney has the content. >> clearly. >> everyone else out there is trying to get content. disney has the content today. >> going back 100 years, you in owe. >> that's why when julia asked are you going to be spending $6 billion on netflix, that's why

he said no i think he said way less and that's because they already have content, and that's why -- >> and this is flexing the content muscle. >> yes. >> and that's why there's hope for the stock long-term because they have that content folks, thank you michael yolk cammy, danny hughes, good to see you both thanks for sharing your thoughts on the market. >> and while we were talking to bob iger, we had a lot of other earnings earnings from priceline and several other companies coming up next and stocks lower after president trump promised to meet north korea with fire and fury if it continues to threaten the united states. coming up, former u.s. ambassador to china max baucus weighs in on whether china can step in to kind of calm these red hot tensions. >> of course, we want to here from you contact us on facebook and twitter. you're watching cnbc, first in business worldwide they've changed how we get around.

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more earnings. here we go priceline is just out. how do they look >> reporter: a strong beat from the online travel player

much higher than what the street was expecting of $14.20. revenue also a beat. soft guidance for third quarter in terms of earnings and growth looking for the current quarter $20.8 billion, came in a bit stock why the stock is lower in after hours. this is a stock that has had a tremendous run this year up over 40%. let's also talk about trip adviser, and they beat on its bottom line. 38% adjusted and q2 hotel revenue missed estimates and that's why trip adviser shares are lower right now. >> seema, thank you. hertz also out with earnings phil lebeau has those numbers. >> nasty looking numbers for the second quarter from hertz, a lot worse than expected. 63 cents a share is how much the company lost, working out to $52 million for the secretary quarter. the estimate was for a lows of 20 cents a share revenue did come in as expected. a big driver behind those losses, vehicle depreciation increased 27%.

we talked about the used vehicle market hand how that's weighing on the rental car companies. why are shares moving higher after hours in the company is saying it's made a lot of moves that it needed to make in order to shore up its losses, including selling the fleet, 1% of the fleet dropping its fleet total by 1% in the second quarter. guys, back to you. >> hertz up 3% and avis down 6% earlier. >> hertz down 6% in the regular. >> yes, it was, so it's coming back a little bit. >> going to take a break and get a cnbc news update and get an update with sue herera. here's what's happening at this hour. during an opioid briefing at the bed minister golf club president trump responded to news of north korea successfully producing a miniaturized nuclear warhead. >> north korea best not make any more threats to the united states they will be met with fire and fury like the world has never seen he has been very threatening

beyond a normal statement, and as i said, they will be met with fire, fury and frankly power the likes of which this world has never seen before. >> oklahoma governor mary fallon got a firsthand look at the damage from a series of tornadoes that hit the tulsa area over the weekend. she assured local officials the state will help them in their recovery effort. and fedex says that it fixed a power outage that disrupted some customers' ability to track their packages on monday the company says it's now talking to all of those affected you are up to date that's the news update at this hour bill, back downtown to you and sarah. >> all right, sue, thank you we have a news alert on another opioid drug-maker lawsuit. meg tirrell, thanks about that seem to be accelerating up, latest one from the new hampshire attorney general filing suit against oxycontin.

they said in their release that one new hampshire prescriber told the attorney general's office that the message he received from a perdue sales representative was that opioids were safe, safe, safe. we reached out to perdue this is the state's fifth suit against pharmaceutical companies, this one specifically against purdue and others coming from oklahoma, missouri and ohio and mississippi and other companies that make these prescription pain killer opioids. >> just as president trump convenes a meeting against this very topic. >> coming up, former u.s. ambassador to china max baucus is here to talk about president trump's threat to up leash fire and fury if it continues tupo leash threats against the united

states. >> fossil chairs shares crushed. more on that coming up whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offers for free! free? yeah. could save thousands. you should probably buy me dinner. no. go to lendingtree.com for a new home loan or refinance. receive up to five free offers and choose the loan that's right for you. our average customer could lower their monthly bills by over three hundred dollars. go to lendingtree.com right now.

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new ceo is resigning due to perm reasons. that's part of the reason that the stock is declining here. $6.50 per share asset impairment charge, and the stock was trading just below $12 at the close today. 2017 eps guidance was weak as well now you can see we're trading at $9.15. back to you. >> thank you, jackie tough watch market, that's for sure jpmorgan announcing its biggest share buyback since the financial crisis just this past june and ceo jamie dimon says that's not what the bank is focusing on in his exclusive interview with wilfred frost, he'll have details on that when we come back ta came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that? even way out here? yes. even way out here.

all right. the disney earnings call is underway, and you can see the stock is down 3.25%. netflix down as well on this news that disney will be pulling contempt from the streaming service in the next couple of years. very interesting development there as they develop their own streaming service. >> it feels like, mike, the reaction and the share price of disney has to do with the results, especially that basket, that media entertainment which encompasses espn lower earnings and revenue, not what like wall street likes to see. >> a soft quarter, a marginal beat, top line didn't look that

impressive and, plus, people have to assimilate what's the new distribution strategy going to mean for the rest of the business. >> all right is it going to basically be a hit from day one >> exactly. >> okay. i hope you saw it earlier today. our own wilfred frost speaking with jpmorgan chase ceo jamie dimon. jamie dimon said he'd rather spend more time just growing the company. >> our preference is always to grow the company organically, so if you asked me i'd rather use that to buy back stock or grow the company, i'd rather grow the company, and some people think banks are buying back stock and not for making loops loans are constrained by other things, not right now by capital so if i had a choice and if things had been different five years ago a lot of capital would have been used to make loans to fund american society and we'll go back to that and the goal is not to go to a bigger payout like to go to a lesser payout

and spend more time to grow our economy. it would be $1 trillion more of mortgage loans and a portion of that would have been our bank and that would have fueled american growth. that's what we should be focusing on. not the payout. >> are you concerned about the level of bond markets? is there a bubble there, and when the fed does start to normalize its balance sheet, will that cause some problems for some people? >> i won't call it a bubble. we did qe 1, 2 and 3 and now we're reversing it the fed is doing the right things, raising rates. telling people we'll start reducing the balance sheet the likely outcome is that it will be fine, and particularly for the american economy is doing well so the fed is doing these things in the face of a stopping economy, i don't think it's going to be that disruptive. all i've ever pointed out is there's a chance it could be disruptive there's a possibility because we've never had the reversal of qe 1, 2, 3 or 4. the ecb and the united states

doing it and maybe the environment is not the environment people expect. people cannot predict the future so my own view is you can't make something certain which is not certain and there's a chance this will not go well. they will figure it out and the fed will respond appropriately, you noey, if things are not going the way they see fit >> wilfred frost joins us. got a lot of attention for that bond call in particular and the whole contemplation of what the fed's next moves will actually look like and how risky it will be. >> absolutely right. i think a very clear call that he wouldn't own the bond market himself, but he doesn't think it's outright going to cause a collapse of the economy. i also think there's points of use of capital were fascinating. while his preefshs was clearly for organic growth, one of the other things he said to me was, quote, one day there will be acquisitions, singling out areas like technology and payment as the potential target sectors don't forget that's a big change from the last four, five years for the u.s. banks who haven't either been willing or able to make

such acquisitions. the key point very clear on the payout ratio he wants it to come down most analysts thought after that bullish result for the industry a few weeks ago that payouts would increase he wants it to come down and use his capital to invest in his own business. >> good job again. thank you. wilfred frost joining us from chicago. president trump reacting to nock's latest threats against the united states promising to unleash fire and fury if the rogue nation doesn't back down former u.s. ambassador to china max baucus weighs in next right here on "closing bell. you always pay

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last hour president trump warning north korea they will be met with fire and fury if the threats continue joining us now is former ambassador to china senator max baucus and we did see a mini jolt in the stock market and a little bit of volatility after this how did you interpret the president's comments >> well, i was very, very disappointed and discouraged i think that the president should stop tweeting generally and specifically stop tweeting inflammatory rhetoric which essentially pours gasoline on kindling this is a very dangerous situation and he should stop the american people want a

president who leads. the american people want reassurance. they want to be assured that their president, our president has things pretty much under control and srpt calmly and stably leading in a way that he should and that's making sure all our allies are working together and that also means i think thanking china for a stronger stance that it's ever taken. >> mr. ambassador, i'm curious you spent the last three years in china what the -- what do you think president xi's thinking is all of this and there's been a give and take between president trump and xi regarding north korea as the president tries to get beijing to intervene more with the north koreans, and they seem to be reluctant to do that what do you think happens now? >> it's true that are president trump's been shown inconsistent

statements with respect to china. china notices that and that's not very helpful in u.s. policy towards china. on the other hand, everything is an opportunity there's an opportunity to thank china for joining russia more ry than it has in the past. i was talking the talk, they didn't walk the walk there is an opportunity here to exercise a little bit of national, international leadership it's good. it's starting to get its stride. that's good. therefore, more likely to play a constructive role. >> and just to clarify, senator, you know, the comments did not come in a tweet this time. these specific comments were pointed. the president repeated them. he was speaking in a briefing at the beginning of a discussion he was having on the opoid crisis with his wife by his side. it has to be a difficult position for president trump north korea test firing its first two intercontinental ballistic missiles last month,

continuing with the provocations, continuing to, itself, ramp up the rhetoric, even after these sanctions were passed by the united nations if you don't think he should be talking tough, what do you think he should be doing >> first, leave the golf course, come to the white house, sit down with his financial security adviser, defense secretary and chief of staff all military folks that means -- they've been through a lot of this in a lot of ways. the basic plan should continue to be pressure on north korea. that includes other countries. it includes china. china's doing more now and it also means indirect talks. back door. third party talks with the north koreans. find a way to open up a channel of communication all this is necessary. >> you don't think that's happening already, mr. ambassador, very quickly >> i don't know. all i say is it should be. >> yeah. >> i hope so it's important. >> yeah, let's all hope so

former ambassador max baucus, thank you, appreciate your time. mcdonald's is hoping that chinese consumers are hungry for more from the golden arches. we'll have that story when sara and i come back. ng our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

mcdonald's is betting that customers in china will keep loving the golden arches the company announcing plans to nearly double the number of restaurants in china it has by 2022 to 4,500 restaurants. clearly, mcdonald's has been on a roll lately. >> macompletely. >> obviously feels like there's a lot of room to run in china. about 12% annual growth in

restaurant count they're anticipating now for the next five years in terms of restaurants per person in the population of both countries, even after this, if they get to this goal, it's still only about 115th as penetrated as america is for mcdonald's so maybe they're justified in feeling as if they have some room to grow. >> i would just say that it's not necessarily just growth without hiccups, especially for the fast food industry mcdonald's and yum brands have struggled with safety concerns when it comes to food. you have to tread cautiously it's also interesting it comes after mcdonald's made a deal to sell most of its business in china. >> that's right. >> in a joint venture with the state-owned company. >> maybe that was the prerequisite for being able to do this expansion. >> all right, disney's conference call is under way while hertz is about to start in a few minutes. we'll give you a check on the names that are moving on these earnings reports that just hit this hour. >> and a little promo here for our friend marcus. we got "the profit," marijuana millions, premiering tonight marcus is heading to california

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disney announced it's going to launch its own direct to consumer streaming service in 2019 and, as a result, it will pull some, but not all, of its content from netflix listen >> what does this mean for your relationship with netflix? you are making marvel tv shows. >> we have a good relationship with netflix, yes. >> will you pull those marvel shows? >> no, we have no plans to pull that >> stock seemed to come back a little bit on that. >> a little bit, yes there's a lot of questions first of all, disney said they're going to do something like this. we have dates now. we have a lot more specifics about what's going be to included in the espn direct to consumer streaming package as well and the disney, with pixar content. i think everyone realizes this is where it's headed when it comes to pricing, when it comes to how much you're going to distribute third party. >> cbs did the same thing yesterday, announced the same thing. >> with the cbs sports offer. >> with the library of content that disney has, with the movies and everything else, which by the way are doing fine, and parks is doing good.

>> tremendously valuable you think about netflix, they have a lot of third party catalog stuff that they've been paying for they still say originals is what drives their membership and their traffic. >> all right, good stuff busy hour. thank you, mike. we'll see you later. i knew you didn't think i could match -- >> the peach. >> the outfit with the tie it's going back to anchors r us where i rented it. that's "closing bell." "fast money" begins right now. >> the nasdaq market site overlooking times square tonight on "fast," the two words that took down the market today and broke the dow's big winning streak fire and fury. the dow seeing a nearly 100-point reversal from its highs after president trump had some very harsh words for north korea. we'll give you the very latest plus, retail strikes back. amazon has fallen 8% from its high a number of beaten down retailers are serving. one top technician has two names you can buy right now. he'll break it