>> by the way, goldman says there's a 50% chance of a brief government shutdown. >> and we have that to contend with next month. >> i think you're wrong. i'm often wrong, but never in doubt, bill. >> that's what we do making these pronouncements but i think there's a moment of opportunity here, but a moment where the minds will become focused. and i think watch what happens right after labor day. watch how it recenters >> congress does make the laws, right? >> and they've got a lot to deal with they've got the debt ceiling, the budget, and they've got tax reform >> guys, as we go to break or go to the weekend, let's not forgets, what happens to gary cohn gary cohn is wall street's guy in washington. bannon's one thing, cohn's another. cohn, if he doesn't get that federal reserve job, some people have said he may be on his way out. and if that happens, i think we'll have a whole new situation. >> and the midterms elections will be 14 months away after labor day. all right, folks >> we're going to focus on the

news right now thanks, guys have a good weekend. see you later. let's get more on the breaking news out of washington our reporter standing by right now, eamon javers has been in bridgewater, new jersey, and has the latest developments on steve bannon's exit. ylan mui reporting on the potential impact on the economy. and bob pisani watching the market reaction on the floor of the new york stock exchange. eamon, let's start it off with you. >> reporter: here's the official statement as it came through from the white house earlier today, saying that steve bannon, was, in fact out the white house saying white house chief of staff, john kelly and steve bannon have mutually agreed today would be steve's last day we are grateful for his service and we wish him the best this continues what has been a tumultuous year for white house staffers and high-level officials, both low-level folks and high-level folks in this white house have been booted out during the course of the year. take a listen to this sound bite from steve bannon, earlier this area, talking about the white house team, and listen for all

the names he mentions here of people who have since departed this trump white house >> if you look at the opposition party and how they portrayed the campaign, how they portrayed the transition, and now how they're portraying the administration, it's always wrong. on the very first day that ke y kellyanne and i started, we reached out to reince, spicean spicer, it's the same team that did the transition and the campaign was the most chaotic, most chaotic, most disorganized, most unprofessional, had no earthly idea what they were doing and you saw them all crying and weeping that night on the 8th. >> so steve bannon there, defending the idea that the trump administration was not chaotic and not disorganized, because they had that key group of staffers. almost all of whom have gone kellyanne conway is the only person there he mentioned who is still inside this white house. this week, though, bannon was a

lightning rod for another series of interviews that he gave to various media outlets, including making this statement about race relations in the wake of charlottesville. bannon saying the democrats, the longer they talk about identity politics, i got 'em. i want them to talk about racism every day. if the left is focused on race and identity and we go with economic nationalism, we can crush the democrats. clearly, that was a comment that got a lot of attention around the media. the president has decided that he doesn't want to continue with steve bannon in the white house. the question is whether he wants to continue with this sort of racially tinged commentary we've seen in terms of confederate statues, people on both sides of the argument in terms of neo-nazis and things we've seen this week. it's going to pivot to different message, where it will be the slr messa similar message that steve bannon was talking about, just without steve bannon that's one of the questions that we were left with. >> i have a question that you

may not know the answer to i know you're in bridgewater and the president and the vice president are at camp david. they're going to be there another hour or so are we anticipating anything public or so from them in the next hour, hour and a half before they leave? i know they've been talking about national security, but of course, it's been a newsy day otherwise. >> it has been a newsy day we are not expecting anything on camera from them there is nothing scheduled at this point of course, it's possible that the president will talk about this i just asked a white house official earlier if any other people are going to be departing the white house today, and this white house official simply wouldn't say, saying, i have nothing for you on that, which is what they say when they don't want to tell you anything one way or another so this white house very much buttoned up right now. the president is focused on afghanistan, iraq, and his national security team at camp david. very high-level discussions going on there we'll see whether he has anything to say about steve bannon but you noted in the official statement that they didn't attribute this decision to president trump himself. they attributed it to john kelly, the new white house chief of staff that's telling at the level at

which this president wants this to be handled? >> and we're still waiting with bated breath if anything would come out of that summit today. let's get to ylan mui with more on how this could affect the economy and that tax reform. >> reporter: the initial response to steve bannon's departure was that it perhaps removed a road block to tax reform remember, bannon was arguing for raising the rate on the wealthy and for the border adjustment tax, two proposals that have since been discarded however, over the past few hours, the response that i'm now hearing is more mixed. some saying that bannon leaving doesn't make a difference, because the divisions on capitol hill remain the same another camp says that this could be bad if it, indeed, starts that war that engulfs the republican party now, democrats are clearly preparing for a fight. minority leader nancy pelosi put out this statement, saying personnel changes are worthless, as long as president trump continues to advance policies

that disgrace our cherished american values. meanwhile, an influential democratic advocacy group has already put together an add that will start airing on cable news this weekend, entitled, one firing is not enough and the reason this is important is because republicans will need to work with democrats in order to pass the debt ceiling as well as a budget, and that budget is the first step to unlocking those special rules that will help fast track tax reform i have reached out to republican leadership for their reaction to bannon's departure, but guys, no comment so far back over to you >> all right and we will press our guests on this subject for the next couple of hours, ylan, too, thank you >> all right, we saw that comeback of sorts in stocks when news came out that bannon had been fired bob pisani has more. i mean, the dow is back in negative territory here. and let's point out, we have an options expiration coming up in 45 minutes here. >> that's right. and the volume, even with that, is still very much on the light side so trading was mixed very early

on, bill but at roughly 11:18 a.m., word came from axios that the white house was prepared to fire bannon so the s&p, which was down five points, you can see that first circle there, promptly rallied seven points in a matter of minutes and another five points over the next hour when "the new york times" confirmed that bannon had been fired, at about 12:40 eastern time, there's that second circle there, the mark rallied another five points. but the markets clearly preferred cohn for the stability he provides. so how much? well, you can see what happened here stocks dropped yesterday on erroneous reports that cohn might leave the white house and rallied on confirmation that his arch nemesis, mr. bannon, is now gone traders want a concerted effort to raise the debt ceiling, pass a budget resolution, and then move rapidly to tax cuts today's rally is the market's way of saying that they believe that tax cuts are still very much aleiv the s&p, by the way, started moving down a little bit after 1:00 p.m. eastern time that was shortly after breitbart's senior editor, joel pollack tweeted "#war" implying

bannon or breitbart may launch attacks against cohn and mnuchin. fascinating day overall here, guys the markets ending anywhere in the green would be a big victory for bulls and it would reinforce the strategy that it's still safe to buy the dips guys, back to you. >> indeed. thanks, bob. we'll see you on the close let's get to our "closing bell" exchange now, as we do head towards the close for this friday ian wapner is with us today, so is peter costa from empire executions he's here with us at post nine and rick santelli joins us from the cme in chicago what a week, people. >> you've got to come to me first. >> of course >> what do you make of the market's response? we start the week with this relief rally on monday then we've had a lot of volatility in the meantime, and here we sit down nine points on the dow, but the s&p is still up three points >> when the news finally came out and it was confirmed, i think it was a divisive piece of

the puzzle in the white house has been removed i think that is what people were looking at i think the market rallied, but it didn't rally on any kind of volume so, you know, this is a typical summer day you have -- and this is impactful news and the market rallied 5.5, 6 points on the s&p. not any increase in volume not any increase in overall interest in the market it just rallied because there was a positive -- some sort of positive news out of d.c., which has been very few and far between. so -- >> all right, ian, so we're going into the weekend now with all of this behind us. yesterday, the whole narrative was about gary cohn leaving. today, it's steve bannon, who is out. is this everything that the market, that investors of the business community wanted or not? >> well, i'm not really sure what they wanted but i do know what they're expecting, which is that they're expecting tax reform and they're expecting it in 2018 now, originally, i was waiting for costa to get bullish i was hoping for him to get

bullish, but he hasn't yet in the meantime, i know you guys love your acronyms on friday so how about short which stands for sell half or reduce today and the reason is, the reason is, is that right now, this week, you have finally, finally brought about the possibility of absolutely no tax reform throughout the entire four years. >> ian, why? >> because there is so much disarray that between the ceos leaving and between the congress having no idea what to do with this guy, i mean, ultimately, they can't lose very many votes to get this done so rate now you have a lot of people who are wondering what's going to happen here and i don't think steve bannon -- steve bannon may be more powerful on the outside and so i would keep an eye on that and i would keep an eye on these divergences. have you seen the divergences between the industrials and the transports >> yeah. >> i haven't seen -- >> the weakness -- we've noted the weakness in the transports here recently, and wondering if

there is sympathet there's something trying to tell us let's bring mark into the conversation, because the markets you follow have been very muted today we haven't seen much response from either the currency or the treasury markets here, rick. >> no, no. the biggest issue i have is the ma pac-man issue. we keep getting very close to testing very significant issues, like 213, the low yield close of the year we keep taking bites out of the supports down in the low teens and high 20s, but key coming pack here we sit at 219, which is unchanged on the week. as a matter of fact, the five-year is up two basis points on the week, but at lower ends of the range, obviously. we all like our acronyms on friday i have one you know, sub, the thing that goes underwater. based on everything i'm hearing, everywhere, you would think that the dow is down big. so subis still up big. it's still up big. who out there ever believes that these markets go straight up and

never come down? i understand the political issues this week arguably are a catalyst and i've always thought that i didn't think that politics had a big presence in the market i think the last couple of weeks, it's had a presence it just isn't a pig presence it could obviously grow bigger but i still think, all things being equal, that we still could have interest rates holding low levels we could still have big news out of jackson hole, even though it's not the news we would like to expect, because i certainly don't think some of the volatility in the last few days is going to be a very happy topic of central bankers who are thinking of removing many of the things that have put stocks there. so, yes, interest rates not going anywhere dollar index not really going anywhere but they're not really at the most optimum part of their trading range for 2017 >> and so, ian, what you're saying with all of that kind of on its back foot, congress has the opportunity maybe when we come back from labor day to say, hey, here exactly is the tax plan maybe we can get a couple of democrats onboard, get this

passed by the first quarter of next year and then you think the markets would respond quite positively >> i think if they could do that, the markets would definitely respond positively. but we've got one big event between now and then that we've got to be very careful about and that's bonny tyler singing "total eclipse of the heart" during the eclipse if you don't think the end of the -- that could be a sign the end of the world actually happening. >> speaking of which, peter, before we go, you're not polish y yet? >> no. what bogeys do you fear? the debt ceiling and everything else after that? >> i think the debt ceiling something that we need to be taking and focusing on more. and go back to ian's points about the transports and separating from the industrials. i think we have to watch a certain level on the transports. fit goes below 9050, you go into a zone that we haven't been in for like nine months i think we're getting very close to having that break that's where i think the market will start to curve down a

little bit i'm not saying we're going to go into any kind of correction. i just think that we should have and it's time for some sort of pullback obviously, i thought yesterday might have been the start of it, but that was just like a one-off. we're still waiting. >> all right yes, we are. guys, thank you person's got their own acronyms, but david darst has the official closing bell acronym coming up later this hour. we'll see you guys later have a good weekend. >> have a good weekend and we've got 46 minutes left on the trading session here with the dow down 18 points right now and the s&p up over 1. again, it is an expiration day, so probably volume hitting a to the close, but i don't know how much volatility we'll get. steve bannon, the latest top adviser to the president to lose his job. when we come back, former mcdonald ceo ed renzi will tell us what trump has to do to get his agenda back on track with this new crisis. and later, we'll discuss house steve bannon's exit from the white house could impact the president's trade policies when we come right back whoooo.

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mixed picture on the dow and the s&p and the nasdaq capping off what has been a pretty

volatile week. shares of deere falling today, after a mixed earnings report this morning the equipmentmak maker beat on profit, but reported a second straight quarter of lower than expected sales that sent the stock lower. deere trading down, about 5.7% right now. >> ouch. well, with steve bannon out of the white house now, will president trump get his pro-business agenda back on track? joining us by phone is former mcdonald's ceo, ed rensi hello, ed. >> good afternoon. we're finishing the week in a very different place than where we started certainly, there have been a lot of developments. where do you think from your point of view as a former ceo is the most significant today >> well, i think donald trump is dp exactly what he is and he was when he campaigned he's neither democrat or republican he's independent he fancies himself a superior businessman. he's going to keep plowing ahead with what he thinks is right his base out there in the united

states is solidly behind him they just think that people are ganging up on him. but what he has to do is what every leader has to do and that is to listen to his advisers and i think that general kelly tillerson and attorney general and others are starting to have a big impact on him and trying to get him focused on the stuff that's really important with this country but all of our citizens better wake up and get smart, fast. because this cub ountry is tear itself apart and we must demand that the leaders in the house, the leaders in the senate come together and support trump and if they can't support him, they need to be strong and tell him what they think he needs to do and work in a bipartisan way to turn this mess around. because it is a mess and there's plenty of blame for everybody. >> i was just going to say, you can point the finger in my directions here. do you -- i mean, yes, congress has a very ambitious agenda for this fall, but do you think they will be able to work with a president who, let's face it,

sometimes is his own worst enemy, even with the best intentions here. >> well, the only thing the people in the senate and the congress want to do is get re-elected they're going to do what's in their best interests, first. and if that can support the president's agenda, that's what they'll do and if it doesn't, they won't. and let's not forget the fact, all they want to do is get re-elected they're not really so interested in you, me, or this country as they are in self-preservation. trump is not going to be easy to deal with. he's a tough personality he's stubborn as all get out he's very focused on what he thinks is right, not what you think is right and he's going to have to learn to listen. he doesn't listen very well most of the time. >> ed, i wonder if you earlier said you want people to come together and support this president in cokngress, republicans and democrats. but maybe it's the stoeoppositea might bring them together. perhaps it's not the democrats against the republicans, but both seem united on some level

in their displeasure in the way that the president has handled himself that week. do you think that provides some cover for them to move forward on items like tax reform >> founders of our country were really smart we have three branchs of the government and if two of them want to get together in the congress and do something and the president doesn't agree, i'm sure the supreme court will sort it out eventually but let's keep in mind, this country is over 200 years old. trump has been around for two years. in three more years, he's going to be gone or somebody else will replace him or he's going to change i'm not so much worried about the country in the long-term, but i do worry about it in the short term and they might gang up on him. who knows, but it will be something to watch, that's for sure >> what role does business play, if we don't have these councils? i mean, the president really was trying to reach out to businesspeople, the way president obama didn't do in his term, but now they have abandoned him this week. so now what? i mean, do they play a role in getting this business agenda advanced

>> well, there's plenty of businesspeople out there who would like to get close to the president in the oval office the reality of it is, whether they have a close relationship as a ceo with the president or not, there's a million, a million lobbyists out there getting paid big money to put pressure on the white house and in the senate and the house of representatives. that's not going to change so the business agenda will go forward through the hispanic chamber of commerce, the national chairman of commerce, the national restaurant association, the manufacturers believe me, there's going to be plenty of pressure on the white house and the congress and the senate to do what's right. so i'm not worried about that in the least. but they could gang up on him and he could be entrenched and just ignore him and it could be another three years of chaos >> not that anyone's counting. >> ed, always enjoy talking to you. we always know where you stand >> thank you, bye-bye. >> thank you >> ed rensi, former ceo of

mcdonald >> less than 40 minutes to go until the close. the dow is now down 45 points. we were significantly higher this afternoon when news that steve bannon was leaving the white house first came out but we are not holding those gains. the dow down 45. the s&p down about a point the russell up about half a point. and steve bannon had said the u.s. was in an economic war with china. up next, find out how his exit could impact u.s./chinese economic ties. >> and later, former paypal ceo harris will talk about whether bannon's departure can actually improve relations between the white house and silicon valley coming up. you always pay

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welcome back dow is down 42 points right now. about half of that is nike with a 4.5% decline today not sure if it's related, but probably, somewhat to the huge drop in footlocker we're seeing. we'll have that in a moment. but the nasdaq up seven. footlocker shares are down 27% or 13 bucks. this after reporting earnings this morning the apparel company missed on earnings, on research, saw same-store sales drop 6%, compared to just estimates of a 1% increase. footlocker is saying sales of some top styles fell short of expectations that could be dragging it and nike lower today >> i saw one of the michael jordan brands didn't sell as well as they expected. >> which, again, that brand has been around for two decades. so is it that suddenly not working. >> stan smith, also another

legacy shoe brand -- >> maybe reaching the end of its hype cycle >> it typically el lly sells ben europe than it does here >> but is it just the amazon effect when you have this 6% drop in comps -- >> tough to prove otherwise, that's for sure. tough day for them steve bannon's departure from the white house now leaving many to wonder how this could affect trade, especially with china. as we all know, steve bannon had said things about china that we were in a trade war with them already, kayla tausche so now what? >> well, bannon, bill, as you mex mentioned, made no secret of its view that he believed china needed to be thwarted in its quest to take over america especially this week, saying "we're at economic war with china. one of us is going to be a hedge monoin 25 to 30 years and it's going to be them if we go down this path. bannon has been instrumental in efforts already underway at the white house to study steel and ali aluminum dumping and potentially

eyeing tariffs or quotas there they have information from a commerce department study, but haven't been able to agree on a course of action there bannon's departure potentially could change that. on monday of this week, president trump instructed a ustr investigation into intellectual property in china, and then there's the continued focus on the u.s. deficit with china. bannon was also instrumental in withdrawing the u.s. from multi-lateral agreements like tpp and the paris climate deal, favoring bilateral deals instead. people are starting to think through a whole raft of amazing and innovative bilateral relationships, bilateral trading relationships with people, that will reposition america in the world as a fair trading nation and start to bring jobs, high-value-added manufacturing jobs back to the united states of america >> there was one area where that push didn't entirely succeed bannon attempted to withdraw from nafta earlier this spring before that got scrapped

that is currently slated to be a trilateral deal. and while bannon is the figurehead for that america first ideology in the white house, the trade actions are being led by the commerce department and the office of the u.s. trade representatives, so even though he is symbolic in this arena, it's not as if any projects or actions that he had been personally studying are now going to be left on the cutting room floor, guys >> clearly, no answers yet we have to wait to see but in that prospect interview that you just cited, he also positioned himself as a nationalist, as opposed to gary cohn and steve mnuchin, who he saw as globalists. so you wonder how much of the trade policy that's been discussed by the administration for the last eight months will suddenly pivot in some direction. we don't know, right >> well, we don't know exactly, bill, and it's still remain to be seen, but it's worth noting that peter navarro, a trade hawk, is still in the administration he's a senior adviser on trade to the president wilbur ross, the commerce secretary, shared many of

bannon's view in the still and aluminum sector, a sector that secretary ross had studied for quite some time. just because bannon is not at the white house doesn't mean that some of these efforts won't go forward, but perhaps they would be less harsh than otherwise with bannon still there. >> yeah, weh'll see. kayla, thank you crazy day. >> crazy week. crazy year time thousand for a cnbc news update with sue herrera hey, sue >> here's what's happening at this hour, everyone. spanish police searching a house in the northern town of ripley, as part of the investigation into the attacks in barcelona and cambrils that left 14 people dead four people were arrested after the attack two more were arrested today florida's governor rick scott weighing in on the monuments issue, saying officials and the public need to let things run their course. he was in bramden this morning to announce new state jobs numbers for july >> some of these decisions will

be decided locally what we need to do is go through the process set up scientists may have found a cure for the peanut allergy. the treatment combines a probiotic with small doses of peanut protein it was tested on a group of australian children four years ago. after 18 months, more than 80% no longer showed symptoms and a follow up study finds the majority of these children are still able to eat peanuts without a reaction but they stress, don't try it at home, try it in your doctor's office in case they have an an fl anaphylactic reaction. the dow down 43 points on what has been a volatile end to a volatile week. when we come back, we'll look at whether the departure of steve bannon and his economic populism could end up being a win for wall street.

>> plus, larry kudlow weighs in steve bannon's commit means for the white house agenda and for the future of national economic council director, gary cohn. stay with us [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. and the wolf huffed like you do sometimes, grandpa?

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welcome back with less than half an hour to go with the dow down 45 points, so what's the feeling into the close here today >> well, we've been a little bit sloppy the last half hour, so after retracing earlier, and we're seeing some of the imbalances to the sell side as we go into the expiration close, which obviously has some -- >> that's usually a high-volume event, right but not necessarily -- >> is it volatility as well. is that going to push? if we're down 43, are we suddenly going to close higher or something like that >> there could be a little bit of volatility associated with it i think the most important thing for the institutional guys, it's an opportunity for you to move some inventory in a way that won't move the stock market.

you'll start to see some bids and offers of size aroun closing prices >> so do people feel with this bannon news that that's now been resolved and they have have long exposure or no >> there's a couple of things. this week has been quite a week. if you start out with fire and brimstone and all the stuff that was going on with the rhetoric in the sea of japan, and then you look at bannon, and of course, you have some earnings, and there were obviously names affected by that, you've seen volatility muted a little bit, retracing there. and i think we'll be pretty orderly into the close, and i think the only thing we'll have to be on the lookout for is -- >> go ahead. >> is will there be some sort of quick movement will something news-driven, something, you know jump out at us you are going into a weekend there have been a lot of headlines. there are people that may think that this is an opportunity to take some risk off but i think we've already seen that so far earlier this week.

so i think a lot of that is taken out of the eacquisitiquat. >> we will watch it together gordon, thank you very much. >> a pleasure. >> gordon charlotte. bill >> thank you so much 24 minutes left in the trading session right now, with the dow down 35 points when we come back, steve bannon's exit from the white house could impact the so-called trump trade for stocks talk about that, and now that he is out of the white house, could this affect mr. trump's relationship with silicon valley former paypal ceo bill harris will weigh in on that, coming up keep it right here, u'yore watching cnbc, first in business worldwide. that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news.

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welcome back shares of infosys falling on news the ceo is resigning. the company's chief operating officer will serve as interim ceo until a replacement is announced. again, infosys down about a buck, 7.5% >> some people say steve bannon was the man behind many of president trump's policies, especially when it came to trade and foreign policies so, could his ouster affect the so-called trump trade right now? >> joining us now are bonson and

johnson, david bonson and chris johnson from johnson research group. so, i'll just begin with you there's a couple of things town pack here. but the trump rally, in a way, has been long since passed and yet, the markets lately have been at all-time highs so especially looking at the reactions yesterday to the cohn news and today to the bannon news, how do you expect the stock market to respond? >> well, i don't believe we've had a trump rally, per se. i think the market has been rallying on earnings and i think that what we have this week is -- first of all, the last two days, you have very low movements. so since the bannon news, the 20 to 30 points up and down is less that be we would have on a normal day in the last couple hours of trading ultimately, what we've seen is that the market is frothy. there is not a huge catalyst earnings season is coming to an end. there's not a huge catalyst to go much higher at this point however, i don't believe that what was pushing the markets

higher earlier in the year was as much a trumpian rally as we would all lake to talk about >> chris, what do you think? let me bring in the issue of foreign policy and trade, most especially, trade agreements steve bannon was, as we all know, a big proponent of bilateral trade agreements, not multi-lateral agreements does that change now i mean, what are you expecting to happen there? and what does that do to investments overseas, do you think? >> let's back up first and talk about the rally. i have to believe -- or i have to kind of agree somewhat with david there, in that it wasn't necessarily a trump rally, it was a certainty rally. what we saw in november was certainty. with 18 months of going back and forth on who was going to be in charge was the problem when that decision was made. that's why we saw the market rally. we've rallied on regulatory or hope that regulatory changes would come down the road and the reason that this market is getting picked apart right now is one by one, we're seeing those regulatory changes get knocked down now, moving on to the trade

issue here, i do think that we'll see a little bit of change in the landscape right now, bill i don't think it's going to be anything dramatic. what we need to see is synchronicity, first, between congress and the white house and i think we'll find out where bannon really stood, whether he was more of a mouthpiece or whether he was actually, you know, somebody that was directing traffic, let's call it right now, though, i think that this quote/unquote, trump trade or the uncertainty trade is at risk, because we need to get that mesh between congress and get moving forward on the regulatory changes that the market expected. >> i was hypnotized by that pen. what were you going to say >> the last few times a president has been overseas meeting with foreign leaders, he's sort of been isolated because of the views about bilateral trade, as opposed to multi-lateral trade. you wonder if that's going to change now >> you know, i think that there's a sense in which the worst protectionist nightmares that could have taken place after trump came into office

were all very muted. and that was with bannon there so now we're looking at, what is the fear with steve bannon gone? i look to the china currency issue as inaddidicative of whati expect out of this president it was a lot of bark throughout the campaign steve bannon really does believe that what do they do? they immediately capitulated with a lot of those more firebrand protectionists still there. pete navarro coming and so so forth. i think there's more pragmatism that rules the day i think you'll see gary cohns and these guys have a little bit more greater of a voice. i don't think that's what the markets ooh respo s responding . we have a market up 14%. that's a perfect correlation >> if that's not the case, what happens if tax reform doesn't happen and what happens if it does >> that's a great question i do believe if the full tax reform gets passed, we have more room to go but mathematically, better after-tax earnings per share will be in place if it doesn't get done, you have some degree of sell-off, mostly

because it will affect the multiple that's more in between there but i would guess a lot of the regulatory issues have been helping to drive the market. tax reform is the one major issue. but around the trade side, i just -- you hear how much trump brags about this stock market rally. i don't believe he wants to start a trade war with china and that, ultimately , together with these other pragmatic concerns, is good for markets. >> chris, the president's relationship with congress has been tenuous and there are those who are postulating today that maybe this will get congress to crystallize around these issues that are so important, like tax reform and infrastructure and so forth. because of what's happened the last couple of weeks do you agree with that or not? >> i think this is a wait and see right now, bill. i think there have been some very divisive things that have happened and really congress right now, i think you're not seeing a clear tone on how they want to approach right now the trump administration the thing i'm fearful for is

when you lack at a couple of different things in the market, first of all, we've talked about the certainty trade. what we've seen in terms of volatility, the vix has gone from readings around 20 down to readings over the last month that have almost averaged 10 so, half of the volatility the market has put a lot of stock in the regulatory issues being cleared off of the table and moving ahead and the other guest is correct if we see tax reform, it's going to be good for the market getting a little longer in the tooth. there's a lot of froth around this market. we're coming off a great earnings season. it's a great number. so the fundamentals should be driving this market higher when i look at the technicals, though, this market is eroding from a breadth perspective and that tells me that people are pulling money away from stocks, uncertainty is causing them to start to look at data more than they're looking at the fundamental picture. this is going to turn into a trade's market, not a trending market >> we will see mr. bon sson, mr. johnson, than

you both for joining us today. >> thanks, guys, have a great weekend. >> you too >> 14 minutes to go. look at this we're coming back a little bit dow is back 29 about half of that is the decline in nike. might be related to the earnings out of footlocker. the nasdaq up 10 and the russell up 1 >> certainly a wild week for stocks we know that when committwe come back, david will tell us the themes investors need to pay a lot of attention to are these federal reserve economists what do we have, visiting the new york stock exchange? we'll be right back. ♪ ♪ i'm living that yacht life, life, life ♪ ♪ top speed fifty knots life on the caribbean seas ♪ ♪ it's a champagne and models potpourri ♪ ♪ on my yacht made of cuban mahogany, ♪ ♪ gany, gany, gany, gany ♪ watch this

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art cashin stopped by a moment ago and told us that the market on close order shows an imbalance to the sell side of $450 million, with the dow down 42 points. and we have an expiration happening in the next ten minutes or so. by the way, art cashin will be among your guests at the top of the hour, to try to assess -- >> once we wrap things up here the dow is now down 43 points again. >> meantime, you know, at the top of this hour, there were plenty of other guests who were trying to come up with their own market acronym for the week, but as i pointed out, the only person who has the official closing bell acronym of the week

would be this man, our friend, david darst, the independent investment consultant. everybody's got their own ideas now. this is becoming a thing >> with all that's been going on, we've got to go back two weeks. silicon valley, where you had gender equality on the table the koreas, where we had the threat of war. we had, in the united states, social discord, which is very similar to some of the discord we had in the '70s and '60s in this country and of course, the -- what's going on right now in the white house. and outside the white house. >> you're killing us here. what's -- >> okay, now, i think we should have -- and let me just say, i forgot, barcelona. and we want to be in solidarity with all of those. and that leads me to heather heyer, and i want to give a shout-out to her from nelson mandela, who died on december 5th, 2013 at age 95.

and he said, the greatest glory in living comes not from failing to fall, but from getting up and rising from falling. and this country will be led higher by heather heyer. >> that leads us right into peace. >> peace is our acronym. peace. the "p" is postpone of tightening one reason the fed inflation is too low and in europe, the euro is too high so you're going to have postponing or slowing of tightening the "e" is emerging markets. there you have mexico up 29% turkey up 35%. china up 36% you have india up 27%. be careful in selecting emerging markets, that's the message. that index, kelly, bill, is loaded with those chinese internet stocks. so they fold in there and they've helped lift that so be careful in emerging markets. they're not overvalued the "c" is the --

>> china doing just fine. >> china is, i think, doing just fine and the "a" is the agenda is at risk, but now, it's being changed by this move on steve bannon now, our friend, our friend, ben franklin, he said, this is a great one. that councils, councils to which counsel have not been invited, time does not ratify and so i hope this will lead to ratification of good policies. and y'all have been talking about that for the last hour on the show the last "e" is earnings and economic growth. and you have the gdp atlanta for the third quarter, expecting to be 3.8%, latest reading. the next reading is a full week from now so we'll see how that evolves.

the earnings, this quarter, is supposed to be up only 5%, but next quarter, 11%. so 14, 10, 5, there'll be a depth here, and 11 to close out the year, if things close through. you want to be very careful investing on monday, because we have this solar eclipse running over the united states and the next one is april the 8th, 2024. so if you miss this one -- >> we'll just wait for that one. >> you've got housing and you've got durable goods orders next week, so this is a time to basically trim a little bit in emerging markets and be more selective. that's the message >> very good worth the wait thank you so much. >> thank you so much >> thank you so much peace. >> and i'm going to need to copy your notes, because mine are mess after all of that >> yeah, no. >> we'll take a quick break and come back toward the closing countdown. >> and we'll miss you for the next couple of weeks >> i'll disappear as i do, so often. >> after the bell, much more on

the potential fallout from steve bannon's exit from the white usanwhat means from gary cohn's future. you're watching cnbc, first in business worldwide data n get unlimitd and live tv. the channels you love. your favorite shows and movies. making your iphone into more of a... oh my tv is ringing. hey...i'm in the middle of a...a second iphone from at&t? okay! right now when you buy a new iphone 7 from at&t you'll get a second iphone 7 on us. and power both with unlimited data and live tv. tand the alzheimer'sf association is going to make it happen. but we won't get there without you. visit alz.org to join the fight.

♪ i'm living that yacht life, life, life ♪ ♪ top speed fifty knots life on the caribbean seas ♪ ♪ it's a champagne and models potpourri ♪ ♪ on my yacht made of cuban mahogany, ♪ ♪ gany, gany, gany, gany ♪ watch this don't get mad (bell mnemonic) get e*trade and get invested 2 1/2 minutes left in the trading session here with the dow down 67. it was down 109 at the low

we're not in positive territory anymore. let's review this week very interesting i want you to watch these trading pattern charts over the last five days we know for the stock market, we had the relief rally from the north korean tensions on monday. and then midweek, with the demise of the ceo councils, you saw the sell-off and today, we've had volatility just around the steve bannon situation. but, so this is for the dow this week now, watch the trading pattern for the ten-year yield this week and you'll see how similar it is look at that so, as they sold stocks, they were buying bonds. and we went down to around 219 on the ten-year yield. and again, as rick santelli likes to point out, 213 is the low. so we'll be getting close to the lows for the year. now, watch gold. a mirror image as those two investments were going down, gold's going up. and we got to around, we're now

at 1292 for the week, although we saw a bit of a selling today. the vix earlier in the week, it hit 16, almost, and then it came back again and now we're trading around 14 and change and it's left my friend, bob pisani, to try to make sense of it all for this particular week. i think it's clear, though, that, you know, we see what's important to the market. they still are very, very concerned. >> here's what's interesting -- >> about the economic policy coming out of the administration >> who knew there was a cohn premium and a bannon discount in the market but there was, and we saw it over the last two days, market moving down when they thought cohn was leaving, market moving up when bannon was dismissed the market drooped a little bit lower when the breitbart editor tweeted out #war implying that breitbart and maybe bannon would go after cohn and mnuchin. the market didn't like that much but this was a great day to be a markets reporter, because a lot

of cross-burdenance going on some of the big market leaders, retail has been down again this week, energy down, even biotech was on the downside for the week so, again, 10% dlecline >> all right, we keep saying that we'll see what happens next week wwe ringing the closing bell here, in case you were wondering, at the new york stock exchange try not to miss my annual two-week retreat kelly evans coming up on the second hour of the closing bell. have a good weekend, kel thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. let's see how we're closing out a volatile week on wall street the dow dropping 75 points on the bell that's well below where we were just minutes going into the close. as we heard, there was some sell orders and it's an options expiration day so a third of a percent decline for the blue chips there nike contributing about half of that the s&p 500 down about 0.2%, the

nasdaq turned lower on the bell. so did the russell both of them down 1/10 of 1% 1357, respectively that said, for all of these moves, the volatility low. we'll talk about more about the divergence between transports and those industrials, further signs of what stocks may have in store after the big news today, which was steve bannon's departure from the white house we're going to have full coverage of what that does mean for the market, for trade policies, for the gop's agenda and much more. joining me for that, jim conn is here from wealth enhancement group at post nine john blanks is here. geor geor georgegero and arthur cashen has stuck around and he's here at post nine let's begin on the very latest with steve bannon's ouster at the white house. eamon, not the news we were talking about yesterday in terms of a key departure there, but one that is surprising,

nevertheless >> reporter: yeah, absolutely, kelly. we're winding down what has been without a doubt the worst week of donald trump's presidency in the wake of that angry press conference that he hold at trump tower on tuesday the defection of much of mainstream corporate america from his advisory councils throughout the week, including on wednesday, and then today, the departure perhaps firing of steve bannon, a key ally inside the white house with the alt-right. here's the official statement from the white house that came out today, saying that the white house chief of staff, john kelly, and steve bannon have mutually agreed today would be steve's last day we are grateful for his services and wish him the best. so the white house portraying this as a john kelly decision, not naming president trump in that statement and then take a look at this graphic, to give you a sense of the astonishing amount of turnover that we have had in this white house, just over 200 days in. and look at all the names that have departed from this white house, whether they've been fired, ousted, resigned, or what have you bannon today, scaramucci,

priebus, spicer, dubke, walsh and flynn all out over the course of the past 200 days. and when you look at that list, kelly. you see people from every one of the president's many fanctions inside this white house who have been forced out or left for one reason or another. this isn't just one wing of the president's inner circle, dominating over another wing you see members of the rnc-linked establishment group here, as well as people who are more familiar from the alt-right on that list of departed people. it has been sort of one piece of turnover after another at this white house. we will see going into the weekend whether or not this represents any kind of a turning point or just more of the same from the trump white house as of tonight, the president is in camp david. he is expected back at his golf course in bedminster, new jersey, this evening, where he'll continue through the weekend, kelly that's where it stands right now. >> and eamon, this afternoon, still no official word, i suppose, out of that camp david

meeting, where the president and top military leaders are with the president now. >> yeah, that's right. they were said to be talking about afghanistan, iraq, the war against isis, the sort of south asia issue is on the table there. we don't know whether they're going to be discussing these departures, white house staffing, the president's controversial and incendiary comments earlier this week we'll wait and see whether they make any staple statements aft but it wasn't expected that we would see the president on camera today, so we may go into the weekend here without hearing from the president about any of this >> yeah, unless on twitter eamon, thank you for now eamon javers >> always on twitter >> so, jen, perhaps interesting, if you wind back to yesterday when the rumor was that gary cohn was going to leave the white house, that was tied to a big market sell-off. today the news is, no, no, gary cohn is going to stay put, steve bannon is leaving, and we still sell off what do you think is going on? >> it's pretty obvious that steve bannon is not good for markets. he wants to do all the things

the large u.s. companies don't want the government to do. they wants to reduce immigration -- >> but he's out now. so why shouldn't this -- and we saw this play on the market intraday the rumor came out, then the official word. we were climbing back up but we couldn't sustain that why do you think that is >> i think had he stayed in office, i think it would have been likely that we would have actually see the sell-off continue whatwear seeing today is a reversal of the dlecline or a stopping o bleed from the rumor that gary cohn is going to be out. gary cohn is probably worth a thousand points on the dow and if we lose gary cohn, we're in big trouble >> do you think that's still a concern of the markets >> i think it's still a concern but less a concern now that bannon is out. and if bannon wanted to raise the top marginal tax rate. bannon wanted to increase tariffs. now that risk to the downside, that risk of sort of anti-large business policies is sort of removed from the equation. i think that's a real positive >> arthur, are you surprised we

didn't see a stronger positive reaction, especially at the close today or no? >> i was very disappointed with the reaction late in the day if they would have closed on the upside, it would be a very good reversal it would inspire with the buy the dip strategy, et cetera. the fact that the dow closed down 70-some-odd points is more than a little disappointing. it represents that the internal technicals of the market are still rather week. we're seeing divergences and they are officially talking about military security. the vice president was called back a day earlier, right after the president had that rather raucous press conference so i think there's more discussion going on there. i would love to hear what's coming out of that >> and john, you know, same question to you. as you're assessing equities here, our last guest at the end of last hour said, look, it's all about the earnings if that's the case, what do all of these moves ultimately mean >> i think it's ultimately positive, because you saw when

the stocks rallied today, it was the tech stocks that came out fastest and furthest they are clearly the sector that are growing. the growth rate in this cub and they're continuing to say that there is growth to be chased that's a positive. and the other thing i would say to art's point -- >> but let me just ask you about the tech stocks for a second the whole idea, we've been told is as soon as it looks like growth generally speaking is good, then you can get into the industrials. then you can get into the materials. and the fact that tech is up again, almost suggests the opposite which is transports are selling off. you've got to go for the only growth in town that's not really emblematic of a broader, growing recovery, right? >> it isn't, was there is a broader widening recovery to chase. but you'll chase the growth stocks first and follow in with it the mediocre play is in growth the industrials, a lot of the names you brought up, those areas are not going to get chased on the first bid of a recovery, particularly if they

sold off as strong as they have. ultimately, as long as the generals continue to show, and general kelly was the big name that came out at that press conference as long as they show that they're taking the country in the direction of an operating government and away from the election campaign staff, i'm reasonably positive these growth stocks will continue to get a bid and these industrial names you bring to the table are going to be the next leg >> george, let me ask you about another concern that some have cited here for the weakness. 1:18 p.m., joel pollack, editor of breitbart, the website that steve bannon may now be returning to, tweeted "#war" in all capital letters. is the assumption that now the president has alienated a key part of his base and that the white house becomes under even further pressure how might that play out for his policies >> well, i'm not very good at politics, but i'll tell you something, that gary cohn is the most wonderful thing as far as i'm concerned in the administration, because he has a wonderful understanding and

understands gold, by the way, because we used to stand very close to each other in the ring and trade together for years i think you're going to see gold become more of a haven as tile comes by >> i don't know, george. >> yes >> george, today we have a call for bitcoin 6,000 from fund strat, i believe they're trying to steal your gold thunder >> bell, i think gowell, i thin misunderstood asset. i think gold is more against what people are thinking it is for. gold is an inflation haven gold is essentially been for five years a store of value. it is portable, liquid, convertible into any currency at any time -- >> so george, this morning, we get news that inflation expectations -- this is a consumer sentiment survey, inflation expectations drop again. they're sitting at rock-bottom levels

the consumers have none of this on their minds at all. >> well, these things can turn on a dime. look, crude turned on a dime gold turned on a dime twice. we've had a wild ride since june i think gold will continue to have volatility. the open interest in the options is way up. it's over 1,100,000. the open interest in the gold futures is almost 500,000. all of this is positive for the long-term, not necessarily for short-term traders >> jim, at this point i am starting to wonder if we should call it the gary cohn rally, because there could not be enough superlatives used to describe him this week >> i think what the markets are lacking for is a sense of normality. >> yes >> they're looking for someone who understands what companies need in order to be successful and he clearly gets it if he can get control of the administration along with people like kushner and more pro-business people as opposed to bannon who's an economic nationalist, we're much better

off. going back to the point of gold, i would much rather own gold than bitcoin bitcoin has a three to five track record of being exchangeable gold has a five-year track record and when you look at binary situations like a north korean nuclear attack on guam or the west coast, i would much rather have my money in gold than bitcoin, which someone is going to hack. it's not unhackable. and then we'll see the price of bitcoin basically dissolve >> walter, i don't know if you want to wade in on bitcoin, but i was going to ask you, if gary cohn is now perceived as driving the agenda forward, does that mean we can put all of those things like tax reform back on the table, or has this week just alienated factions of the gop from one another and i think this goes back to this point about how he might respond. >> first of all, i learned years ago, you always need to carry enough gold to bribe the border guards >> that's right! >> at the very least and now, as to gary cohn, let us

not forget that before yesterday and all of those rumors, he got a very important pat on the head from bill dubly of the new york fed, who said, he didn't know what yellen's plans were, but he hears that he might appoint cohn and he thinks he's well qualified. so that enhanced his status right there. people who are not part of the trump team, saying, this is a competent economist and a guy we can go with. so i think cohn is important we saw that yesterday. we saw a bit of it today but that -- the play -- we're only up to act two of the play we've got more to go >> and you mentioned watching the markets. you were disappointed in the action at the bell does that have anything to do with the quirky things like options expiration, or this idea that going into the weekend, for all of the positives people have just said, they're not convinced. >> what you saw was in the options expiration, about $400 million shares traded on the

belt, which is big, but not enormous it's a regular monthly expiration, not a quarterly. so that's there. i'm concerned about the market internals. there are breath indicators that are not working well there are divergences that disturb me you know my old line, i've been in this business for 5 years and the way i got through it, every time i walk in a room, i look for the exit sign. you've got to be able to know how to get out >> john, you're also an equities guy here we had some major moves. if you look at the dow today, nike was a big part of the decline there. footlocker down almost 30% on its earnings deere was down 7%. that's a market contrast to yesterday evening, when we had applied materials and ross stores with some of the big moves to the upside. where does that leave you in terms of some of these individual stories >> great point, kelly. the footlocker story and the nike story are the thing to focus on the truth is, that's a broader story. the consumer discretionary sector generally in the s&p 500,

which are these big companies, is looking for the third quarter to be down 2% on earnings. that's after a 1% downturn in the second quarter so the bottom line is, this amazon effect, as people are calling it, is very real and it's affecting that sector, which has been such a driver in this market for so long, there's no question the final metal legs in that sector have been kicked out from under them. and those big face plants like footlocker, we'll see more of them, frankly, until we figure out how to deal with this amazon story. >> yeah, under armour was week again, too i don't want to underlook that as we look at the markets. and chicken soup for the soul went public, which i think we can all use at the end of this week, but didn't go so well, either >> i think longer term, a portion of your equity in gold is going to be important and interesting, but in the short-term headline traders have been taking over

i think you'll, however, find that if you look at the basics and i remember -- oh, by the way, art, i missed the luncheon club >> me, too >> yep anyway, i used to see art there sometimes. it was a long while back that we've started and i think we're going to finish in the long run ahead of everything, because we are a good, strong nation. >> we'll leave it on that note and we'll ask for the stories later. thank you all for joining us today. have a great weekend >> thank you up next, larry kudlow reacts to steve bannon's ouster from the white house and the potential political fallout for trump's proteesidency and his economic agenda. and bill harris will tell us whether this improve could actually help improve ties between the white house and silicon valley and we want to hear from you you can reach out via twitter, facebook, or send us a an

e-mail, closingbell@cnbcuni.com. you're watching cnbc, first in business worldwide your insurance company won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™.

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or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost, so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. white house chief strategist steve bannon, the latest top adviser to be fired by president trump. cnbc editor at large, john

harwood, looks at the potential political fallout of this move john >> kelly, i think the bannon effect is potentially three-fold one is, less friction for h.r. mcmaster, the national security adviser, gary cohn, the national economic council director. this is the so-called globalist faction within the white house, that bannon's been battling with means a somewhat clearer field for someone like gary cohn to design a tax reform plan in conjunction with congressional republicans. on the other hand, on the negative side, steve bannon, as you alaluded to in the previous segment, if he decides to return to breitbart and turn up the heat on those globalist adversaries, even if he doesn't attack mr. trump personally, that could create a big problem for republicans, especially republicans on kmcapitol hill, h are both trying to get some legislative accomplishment, but they also fear a primary challenge from the right and breitbart speaks to that conservative right and finally, it does not change

anything about the behavior or views of president trump the most problematic things that we've seen from this president or from this white house, that have driven his approval ratings down stem from mr. trump's own personal characteristics his selfishness, his impulsivity, the lack of command of policy. so those things won't change, but if steve bannon chaz choos, he could make trouble from the outside. >> i suppose that's part of the concern now, john, but what do you think that would mean to president trump if all of a sudden breitbart starts coming after him? >> i think it will make it more difficult for people like larry kudlow to get the results that they want out of the tax reform debate you know, within 1,600 pennsylvania avenue, it will be easier for people like gary cohn to push cuts and tax rates remember, steve bannon had talked about raising the top rate as a way of deflecting attacks on republicans for being the party of the rich.

steve bannon is the self-described champion of the populists, of the working class. that voice is now gone from the inside, but if he starts attacking that tax plan from the outside, it's not going to make it easier to pass. >> all right, john, thank you, john harwood let's bring in cnbc senior contributor, larry kudlow. larry, do you think the president risks becoming the president of the 1% as bannon leaves the white house >> no. no, i don't. look, i basically agree with john's major points. i tried personally to talk steve bannon out of raising the top tax rate we were in there a couple of weeks ago. and i failed but it was never realistic i mane, it wouldn't have any effect on policy, actual policy. look, i think, let me say a couple of things first of all, bannon is a personal friend of mine. we disagree on many things, but he's a personal friend of mine he's not any kind of racist or white supremacist, which is what people tried to tag him with it's just not true i think in terms of the policies

withes though, he is a fear protectionist. his major affect was going to be china. >> he just said this week in an interview, which was notable at the time that he gave it at all, let alone several of them, let alone when he reportedly asked to leave on august 7th and today became the day that he is actually doing so, he chose to say we are at economic war with china and seems to really believe that and saying only one global hegemon can emerge in 25 to 30 years and believes it is going to be them if we continue going down this path >> i don't think the president buys that. actually, if you're talking about things like intellectual property rights, stealing, china is guilty. just guilty. that's what the facts show so i'm with bannon on that but my worries with steve has always been, you know, blanket tariffs. blanket tariffs on german cars blanket tariffs on europe. >> so why would that now seem to go away? are the markets not up 1 to 2%

we have a decline in the dow it just doesn't seem that impressed at all >> well, of course, one thing, markets, i don't know what they do day to day, but steve bannon, i don't think was that big a player in terms of his economic policy impact, okay. a lot of things he was overruled on, including nafta. he wanted to pull out of nafta altogether he lost that battle. he lost the top income tax rate battle i don't want to run him down, because he's a friend, but the fact is he didn't seem to have that much clout. >> if he wasn't that influential, that means the president all along has been deciding all of this for himself or listening to democrats like gary cohn and the white house. if he's not influential, then where's the president getting all of this? from peter navarro >> well, yes and no. wilbur ross has been on the protectionist side, again, another personal friend, but the president listens to all of his people by the way, he's going to still listen to bannon believe me, they're going to be in touch bannon will be a loyalist. there's not going to be any war

between bannon and trump but, you know, calmer heads are prevailing and i think regarding trade, let's investigate, but let's not take blanket actions i think they've got to get back on message, though here's my key point -- >> okay, you know that -- >> tax reform. >> whatever it means to get back on message, this white house has not been doing that. >> they're pretty far off message, i agree with you on that this has been kind of a lost week the odd thing is, congress is moving forward kevin brady, thae head of the ways and means committee would be doing heroic work on pushing tax cuts and tax reform, including his big thing at the reagan l reagan library this week the white house is pretty far down the path, too mnuchin and cohn and others, pretty far they're moving timetables are being set a plan in early september. increasing the debt ceiling in september. late september, early october, a tax reform reconciliation. they're moving on that

my concern is the senate, not the white house right now. i think the senate seems to be the weaker sister. but i'm still fair optimistic that the tax cuts will get through. >> let me go back again to what we're seeing in the market today. with all of that coming into clearer focus, we have effectively a decline across all of the averages. yesterday, it was attributed to the fact that gary cohn might leave the administration so i don't know quite what to read into this now is there still a feeling that everything is unsettled? that maybe his future is still in doubt or would you say that he's just not as important as is being made right now >> who, he >> gary cohn >> no, i think mr. cohn is very important. i don't think he's leaving i think hays very interested in the fed job, all right that's what people tell me i met with him a couple of weeks ago. he was very concerned about the trade picture. like me, he's much more of a free trader. so is treasury man >> do you want gary cohn to be fed chair? >> to i want him >> you, larry, personally.

>> i'm not ready to make a choice >> is there any difference to you from him being fed chair versus janet yellen, who by other reports is quite likely to stay on. >> i've never spoken to him on monetary policy. i'm a guy who likes to watch market prices, gold, commodities, exchange rates, treasury yield curves, things like that. by the way, yellen has done a pretty good job. i mean, we're growing more rapidly. the inflation rate is coming down i know the dollar has lost some ground, but really, over the last several years, pretty steady against commodities and gold so, i don't know what gary's opinions are on a lot of these issues and as we get closer to the appointment, i'll be very interested to see. i don't think he's going to leave. i don't think there's any danger of that. >> but that means he's not going to leave to be fed chair >> that's a possibility, but i don't think he's going to leave the administration, just willy nilly. cohn, mnuchin, those guys are pro -- steve miller is there he's pro-growth.

steve's more protectionist than i am but he's more of a team player the bannon resignation was in the making, it had been talked about. you saw the president really relegated that decision to general kelly, chief of staff, who didn't want to make it personal they're going to be on the phone a lot. one thing -- >> we've got to go >> he's the guy really who wants to, you know, get at the swamp, okay take down -- >> drain the swamp >> and the elites. and that's an important trump theme. growth, tax reform, get the infrastructure, don't let washington smother legislation that people need to grow this economy. i think bannon believed that and i think president trump will continue to believe that >> mr. kudlow, always a pleasure >> thank you >> thank you so much ahead, stocks closing near the lows of the day, even after chief strategist steve bannon a gngown the door wereoi to look into the wild market ride today and this whole week, right after this

time now for a cnbc news update with sue herrera. >> hi, kelly, hi, everybody. here's what's happening at this hour much-needed relief and aid distributed in sierra leone's capital to those affected by the deadly smmud slides earlier thi week the death toll has risen now to 400 and is rising by the day minneapolis officially has a new police chief the city council voting in unanimously to name madraia

aradondo following the shooting of an australian woman by an officer who was responding to her 911 call firefighters battling a five-alarm chemical warehouse fire in ft. worth, texas this afternoon. black smoke billowing in the sky could be seen for miles. one firefighter received minor injuries and a 1996 hummer once owned by tupac shakur sold for more than $206,000, according to the boston-based rr auctions the fully loaded hummer h1 was customized by the late rapper. it comes equipped with a 6.5 liter turbo diesel engine with the odometer reading of 10,101 miles. the winning bid came from a businessman from baltimore that's the news update this hour kelly, back to you have a great weekend >> sue, thank you so much. you too. stocks closing near the lows today after an initial pop on the news that chief white house

strategist, steve bannon was leaving. >> it was positive and now it's a show-me market stocks ended the day down a bit. it was a very nervous open trading was mixed early on, but at roughly 11:18 a.m. eastern time, news came that the white house was prepared to fire bannon look at that little circle there. the s&p which was down five points promptly rallied in a matter of minutes and another five points over the next hour when "the new york times" confirmed that bannon had been fired, that's that second circle there, stocks rose even more so the markets have spoken they clearly prefer cohn for the stability he provides. stocks dropped yesterday on erroneous reports that cohn might leave the white house and have rallied on confirmation that his nemesis, bannon, is now gone so traders seem to want a concerted effort to raise the debt ceiling, pass a budget resolution and move rapidly to tax cuts today's midway rally is a way of saying they believe tax cuts is still alive.

however, the s&p weakened after 1:00 p.m. eastern time there you see it, shortly after breitbart senior editor joel pollack tweeted #wear, implying bannon and breitbart might launch attacks against cohn and steve mnuchin. ending the day slightly without a clear turnaround, that doesn't resolve anything, unfortunately. this is still very much a show-me market but for the most, the idea of buying on the dip is not dead as a strategy who thought at the beginning of the week that cohn would be a premium and -- >> well, mike santoli has said for months that he thinks gary cohn is worth 2,000 points on the dow. this was known you saw a little bit of that playing out yesterday. but now gary cohn is staying, sie sta steve bannon is out and that's the market response? >> i would say the market was fine until about 1:00, after breitbart's editor tweeted out #war, the market lost all momentum and slowly started drooping to the downside

i think that that had an effect on it. because we don't know what this means. that's the flauinfluence here >> does that suggest that people are afraid of what happens if breitbart goes after the president? in other words, if congress is going to move forward on tax reform, if they're going to come together with a plan next month like larry was just saying and get to something in q1 of next year that actually goes through, who cares if breitbart is going after the president? why does that matter >> if there's anything they can do to hurt cohn's reputation, hurt mnuchin's reputation or in any way impede their overall progress, everyone believes that right now the white house and particularly congress have to move very quickly in concert obviously, the congress is going to take the lead here, judging by what they think of president trump right thousand but anything that's impeding that -- look, it's very clear. the market said anything that's impeding the ability of a guy like gary cohn to continue to advance the president's agenda, the economic agenda of the president, is seen as a real negative here. so the question is, what kind of premium is there

if the president said tomorrow, tax reform, dead forget about it, it isn't happening. what would happen to the markets? i know you said 2,000. that might be a little extreme >> that's for gary cohn, not tax reform tax reform might not be priced in >> the average response from traders is the market would drop 5 to 10% and we've seen the russell 2,000 already drop >> along with the dollar >> bob, have a good one. up next, we look at where steve bannon could wind up and whether he could end up being one of trump's largest critics now that he's on the outside looking in fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

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welcome back if you heard the headlines, take a look at how we ended the day on wall street, after steve bannon was ousted from the white house, the dow dropping 76 points, about a third of 1 percent. the s&p 500 down 400 points. the nasdaq shed five the russell was down just a point. where will steve bannon go now that he's no longer a top white house adviser? kayla tausche has more kayla? >> kelly, exactly one year and two days ago, bannon was executive chairman at breitbart news before leifing to run president trump's campaign the expectation now is that bannon's headed back there axios reporting the right-wing news site will, quote,

thermonuclear and use its platform to attack the globalists in the white house ideologically opposed to bannon's protectionism, like trump's son-in-law, gary cohn, and national security adviser, h.r. mcmaster, who has already been the subject of dozens of breitbart articles just this month, criticizing mcmaster's reorganization of the national security council as the removal of trump loyalists also saying he's be holden to special interests tied to the iran deal, and highlighting groups calling for his resignation. white house aides believe the mcmaster stories originated with bannon and reportedly that frustrated the president editor at large, joel pollack, who tweeted #war after news of bannon's departure said on cnbc, bannon or not, the modus operandi of the site will not change >> we remain, as we have always -- as we have always been, the outlet that represents the movement and the ideas that brought trump to office.

whether he remains onboard with that agenda is now an open question, with steve bannon's departure from the white house >> bannon, despite having talked quite a bit this week, kelly, has not yet commented publicly back to you. >> yeah, i don't expect him to right away, kala, but maybe he already did. he gave four, i think maybe more than that interviews this week and then reportedly, he had asked to leave a week ago. what's that all about? >> kelly, now those are being called exit interviews, victory laps bannon having the last word. perhaps that's the reason why he felt comfortable saying as much as he did, because he knew that perhaps his days were numbered at the white house until we hear exit poactly fromm in terms of what that resignation letter actually signified, how soon it was accepted, and who actually was the driving force behind his resignation, we won't yet have the full story >> i know, it does feel to me, though, kayla, as if this was a

man who wanted to put his full intentions on the world stage so the moment he left, people had a deep understanding of what implied. don't you think? >> exactly i think you're exactly right >> that's steve bannon who we'll probably hear more from soon up next, what happens to the gop agenda now that one of the president's most influential advisers is out. plus, former paypal ceo bill harris looks at whether this could actually help improve the relationship between the white house and silicon valley life ♪ ♪ top speed fifty knots life on the caribbean seas ♪ ♪ it's a champagne and models potpourri ♪ ♪ on my yacht made of cuban mahogany, ♪ ♪ gany, gany, gany, gany ♪ watch this don't get mad (bell mnemonic) get e*trade and get invested duncan just protected his family with a $500,000 life insurance policy.

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welcome back when president trump took office eight months ago, many republicans and ceos were excited about his pro-business agenda now with president trump's controversial chief strategist, steve bannon out, could it impact his economic policies joining us now is jimmy pethokoukis with the american enterprise institute and terry haynes, managing director and head of political analysis at evercorps isi. jimmy, we know where we were in january with ceos a to the white house seemingly day after day, and this week so many distancing themselves from the president. what does that mean? >> and the one guy who seemed really happy that they were distancing themselves from the president was steve bannon and steve bannon's gone. i know we've been talking a lot about him, but it's not because of steve bannon that republicans failed to pass health care reform and the president seemed to have a very loose grasp on the details, nor is it steve

bannon's fault that tx refoax r, well, very little progress has been made. they were hoping to pass it in august, and the big six, they've chosen a name. i guess that's a start but they have a long way to go these big agenda items, and the one thing wall street probably did like from steve bannon, the infrastructure stuff, that's gone no well i think it's a big comedown. >> so terry, at the same time, we have people tweeting today about whether this has become a democrat white house with bannon leaving. again, what are the policy implications of that, even if we take it at face value? >> well, i don't think that's the case, kelly. and thank you for having me on look, these folks are interested in serving the president we've always looked at this through an establishment trump versus a populist trump lens the establishment folks, including cohn and mnuchin, of course, are in the ascendant with bannon's departure, and importantly, kelly's assertion of authority over the white house, the white house staff, particularly in the process

that's very important. but what it means for markets among other things, it clips the tail risk on trade there's still trade skepticism, but it does clip the tail risk it mitigates problems with the fed. i know there was a lot of concern about if cohn could go to the fed, if he was on the outs but i still think that even though congressional republicans are going to -- are going to stay a bit farther away from trump than they had before, and this was never really a marriage to begin, they're still going to come together on things that matter, starting with tax reform >> so, jimmy, do you believe that or is there a risk,if breitbar or, you know, those parts of sort of the conservative ring of the gop, if they start to put a lot of pressure on those kinds of candidates, do they peel them off at first to get tax reform and other of those agenda items done >> what was sort of the bannon agenda, you had the infrastructure, he wanted to raise taxes, he wanted to turn google and facebook into public

utilities. so, if that is also the breitbart agenda, and they are now going to be attacking this white house, maybe not the president. they'll say the president is being poorly advised, if they start attacking, you know, with their little kind of globalist globes around gary cohn's name or steve mnuchin's name, if that's going to be day after day, they're going to try to bring the trumpism back to the white house by attacking these guys from the outside, that's another huge attraction. i don't think anything can go wrong at this point. >> jimmy, why is that such a problem for the president? and why might it be a problem for some of the conservative congressmen, who probably have to get onboard with big agenda items? >> well, we're going to find just how influential breitbart and that alt-right wing of the party is we'll see if that can actually change votes and how much of a distraction it is. and how much the president will listen to it if they are attacking mnuchin and cohn and saying they're the

puppeteers and they're pulling the president's strings, is he going to react to that because he seems to be a pretty reactive politician. >> yeah, no, that's for sure terry, just another question because i think you or jimmy had said, this now means the establishment is in ascendance there are plenty of trump voters who are voting anti-establishment and for all the criticism heaped on bannon for wanting to raise taxes on the wealthy, there are probably a lot of voters who think that sounds fine who would have voted for the president? is there a risk he's again alienating his base, even though he's already alienated everybody else >> well, there's a risk that that sort of disaffectation happens, i think i don't think it's a particularly big risk. let's remember that the power of journalists to move public policy is still pretty limited but, you know, fundamentally, remember the words of lyndon johnson, who said, the president proposes and the congress disposes what johnson meant by that was that the congress actually

legislates and so, what we're talking about here, particularly with tax reform, which is front and center in the minds of the market, what we're talking about here is whether congress can get its act together and move forward on this. we'll know that in about three months either they're going to pass a fiscal '18 budget that allows tax reform to go forward, with majority-only votes, or they're not. so, you know, this is dpogoing o be fundamentally a bigger moment for congress than it is for the president. >> it is a little stunning >> i was just going to say, goldman today, 50% of a brief government shutdown n that might be the first litmus test gentlemen, thank you both. >> we'll have you back have a good weekend. steve bannon called for regulates facebook like utilities. will his ouster help bring tech ceos closer to the president rm pfoeraypal ceo bill harris weighs in after this steve, other than making me move stuff, what are you working on? let me show you. okay.

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top white house official steve bannon is now out of the white house. he was a top proponent of president trump's agenda and one topic of his was big tech. talked to reports bannon wanted to regulate google and federal government like a public utility because they had become so essential. let's find out what effect that will have on silicon's relationship with the white house. welcome bill harris! hey, how are you >> wonderful, thanks my suspicious is if all of this bannon ousted happened last week, this might be a different conversation than one that comes at the end of the week with charlottesville. >> yes and it's my personal opinion and

only that, that to the extent that steve bannon represents a voice of intolerance, it's probably a productive thing that he is no longer at the white house. >> well, my point is not so much on that because i don't know know enough about steve bannon, but it's having seen the president's response to charlottesville and the way in which tech ceos have come out against him and so forth, what hope is there that even if he's gone from the white house with his ideas to regulate those companies like public utilities, that silicon valleycozy up to ts president? >> i think most of the people i know in silicon valley have a continuing desire to influence public policy in a number of ways, product ive ways and i hop that despite the consternation today that we'll continue to do that >> do you think the president or say it's not trump himself, but advisers close to him who see

facebook and google look at what happened with google's diversity issues last week and say look, there needs to be b more regulation of these companies. they are extremely power do they have a point >> i don't think so. i think certainly, google and facebook and apple and many others have dominant positions in many of their industries. and i think they've earned those positions. fair and square. and in many ways, it's to the significant benefit of consumers. >> and finally, bill, and real quickly, do you see tim cook as b somebody who will still take the president's calls, lobby for silicon valley's thieneeds? >> i have no insight into tim's thinking but i would expect that he would. >> all right bill harris, thank you for joining us >> thank you >> mr. harris is a former ceo of paypal up next, wrapping up a wild week

of news and the reporter who wrote the bannon news joins "fast money" to talk about what bannon's exist means as far as he's concerned stay with us

what a week. it has been.

on monday, merck ceo resigns from the president's infrastructure counsel and the aftermath of charlottesville tuesday, president trump gives an unexpected news conference with controversial comments about the deadly violence over the weekend. wednesday, the president's two main business counsels are are disbanded after a nump ceo resignations andrew mors that gary kohn is considering leaving and that evening, where bannon talks about his fights and what he calls goldman sachs lobbying. yesterday, a major market sell off after more rumors about k n kohn's future and bob corker said he was beginning to doubt trump's ability and the tragic terror attacks in barcelona and today, chief strategist steve bannon is out. don't know what could happen next week, but we have breaking news still for this one, this time, it's on carl icahn

kayla is this. >> kelly, i can is breaking ties with president trump saying the two spoke earlier. remember carl icahn was serving as adviser on regulatory form in an unofficial capacity. president trump has nominated and has appointed someone specifically in that official role that mr. icahn praises in this letter saying he believes that she will do important work though he doesn't know her personally he says that he regrets that he has to make this decision but does not want partisan birking about his role to cloud the administration or her important work he says he says he regrets because of president trump's extremely busy schedule, as well as his, he hasn't been able to work as much on regulatory reform as he had hoped, but wishes the president well and says it is unfortunate he has had to make this decision. >> kayla, i wonderf about the timing of it doesn't seem like he had to step down today and especially after all the departures the white house has seen, seems like the

worst time if you wanted to avoid drawing too many conclusions from it. >> perhaps this has become a distraction for carl icahn's line of work, if been fielding income iing calls of ceos and business leaders continuing to advise the president, even though he said it didn't happen as often as he intended. perhaps on the flip side, president trump had been getting questions about t that, too. unclear what happened, what precipitate d this, all we have is this letter, which says he is ending his role as regulatory add virz >> thank you michelle kcaruso-cabrera is at the white house. if you wanted a job with the president, you've got a few openin openings thanks very much for joining "fast money" live from the nasdaq, any thoughts on carl icahn steps off this pseudo advisory committee