breaking news. an update for you. hurricane harvey now a category 3 storm with winds of 120 miles per hour 22% of the u.s. gulf of oil mexico offline due to the hurricane according to interior department i'm sure that number is going higher. >> president trump says he'll be going to the region sometime next week. time and day and location to be determined. >> thanks for watching "power lunch." >> "closing bell" starts right now. >> hi, everybody welcome to "closing bell" on this friday. i'm kelly evans at the new york stock exchange. >> and i'm michael santoli in for bill griffeth today. not exactly a slow late summer friday a lot going on starting with hurricane harvey strengthening in the gulf, now a category 3 storm residents of southeast texas only have a few hours left to get out of its path. live reports from the coast coming up. >> just upgraded to a category 3. top presidential aide gary cohn making new comments about his

position in the white house. what he said and why some are rumoring him to be the next fed chair. >> and uber's board is discussing who could be the next ceo. those details coming up. >> the latest on hurricane harvey jackie deangelis is still on the ground in corpus christi nbc's meteorologist kayla mcgrath is checking its path with the news, this is a category 3 storm and we'll begin with you, jackie. >> reporter: that's right, kelly. as a matter of fact, we've been watching this storm all day from category 2 now to category 3 not really coming as a major surprise to anybody. the white house is actually out with an official statement on this right now as well saying that people should obey the rules determined by their local officials, really urging that caution there. and, of course, president trump said that he would come to this region, to texas, early next week as well a presser just ending from the texas governor also to comment on this. he made a statement saying this is going to be a very major

disaster in fact, that's how it's shaping up at this hour. he also said put your life first and your property second so i think all of those points in their totality really sum up what's happening on the ground here now many people did evacuate there wasn't a forced evacuation in corpus christi and many people did leave at the same time, many people have chosen to stay and they said they will hunker down through this it could be a very long few days some of the local officials have warned be prepared to have your power out. anywhere from three to seven days, and, please, be responsible and be patient kelly? >> wow i mean, michael, what would you do i know it's a tough call to make. >> i would get out of there i think. >> i think i would, too. no way of knowing how to handle something like that, with the waters rising. >> you're never going to be sory if you evacuate and it didn't turn out as bad as it was. >> think so, too. >> thanks from jackie from the very front lines

now over to kayla mcgrath who is tracking the storm for us. >> reporter: hi, guys. just n.harvey was upgraded to a category 3 hurricane that central pressure is continuing to drop, and hurricane harvey may very well continue to gain strength as it heads towards the texas gulf coast. you can see the latest here on our live radar we've been seeing the strong convective bands working its way on the texas gulf coast. you can see that eye continuing to push even closer. landfall occurring late tonight and overnight tomorrow morning they have they have already seen significant rainfall, and that's just going to continue to pile on as we head through the next few days so let's take a look at the current track. again, we're up to the category 3 strength, and that's likely what will make landfall as later this evening into the overnight hours. as i mentioned further intensification is possible, but notice what happens once it makes landfall it will will stay as a category three, at least through the early morning hours. by tomorrow evening it does eventually downgrade to a

category 2 and 1 before making its way back into the gulf of mexico as a tropical storm that could get iffy. looks like it will make its way back to the gulf as a tropical storm before making its way through houston. the biggest threats the rainfall expecting anywhere from 5 to 25 inches of rain locally, up to 15 inches of rain and add on to that a storm surge between 6 and 12 feet and we're looking, again, at catastrophic flooding. the last time we saw a storm of this magnitude in the united states was back in -- 12 careers ago. that's the last time we saw a storm of this magnitude. let's talk about the timing of the landfall expected to make landfall after 10:00 this evening lasting through the early morning hours of your saturday now, the strongest of this storm expected to start even earlier than that, right around 8:00 p.m. and last through the early morning hours until 4:00 a.m. on saturday that's the very latest on

hurricane harvey back to you. >> all right thank you very much. i didn't realize it was supposed to curl back up the coast like that as well. >> a chance that it even backs away and makes another run at. it all the various models have different scenarios. >> joining our closing bell exchange priest costa and our own rick santelli is at the cme and pete i'll begin with you art cashin was saying as we look at the markets, the dow up 62 points the opening point was 7% on gary cohn's i'm saying interview and 30% anticipation of yellen's speech what would you say the mix is now? >> the mix is now. you have to look at something, the fight of the century, storm of the century and mario draghi owes speech of the century and this is some heck of a weekend going into it. people right now are looking and seeing, you know, trying to figure out, wait until draghi speaks and see what he has to

say. i mean, that's an important thing. european union has been doing a lot better you know, they have been talking about easing back on the quantitative or calling it back, so we'll have to wait and see what he says. >> doug, you know, the market on the equity side backed off not quite 3% over a couple of weeks into early this week it's kind of bounced about and gotten back about half of that it all year it's kind of absorbed a lot of potential negatives and not really had number to worry about. do you think we're still in the environment where markets can be supported and finally seasonally it looks like it will give more ground >> no, i think what we've seen the last few months is exactly what you want to see a market that's taken a number of shots and yet lo and behold a heck of a foundation underneath it, and i think that's a really good thing i think seeing stronger close has been open and shortened pullbacks are all signs of health el markets and i think, you know, the hurricane stuff reminds me that we're constantly

being inundated with stuff that makes people feel like it's a better time to get in. the alarm bell that should be ringing is there may not be a better time to get in. >> okay. >> i'm worried about hurricanes, but i'm a lot more excited about global synchronized recovery and low inflation, et cetera, and the market has every reason to continue to climb higher. >> all right rick let me bring you in here some of the highlights from janet yellen's comments earlier were basically what she didn't say. didn't really talk about monetary policy. some said that should be interpreted as dovish. what do you say? >> you know, it seems to me that peter to some extent just summarized it pretty well. global synchronized, words we'll be hearing more of and directly aimed towards how we unwind, meaning we global central bankers, is how they unwind what they did and this is huge because obviously our central bank is supposed to worry about the u.s., but you can't extricate the u.s., its economy,

and the impact of other central banks on our economy and i'm not so sure that's going to be all that friendly of a synchronization at some point because japan and the eu really do have different marching orders in a lot of ways than what we expect at our fed at this point basically ten years after the crisis, and i think we're getting a little hint, at least, that janet yellen after her speech, the dollar got clocked pretty well. rates drifted and haven't made new laws on ten and hit the same place we did the last two fridays, a whisker under 2.20, so it's an issue where the biggest elephant in the room is slow moving, but don't dismiss how large of an effect it can have and, of course, i'm talking about the exit and how synchronized it is or it isn't. >> peter, obviously, you know, on the stock side it's opinion relatively quiet and people trying to keep their eyes on this benign macro environment though i do wonder when we talk

about the entire world growing in harmony, great earnings in the second quarter pretty much across the board rhett action to that has not been great new highs for the market kind of stuck here give or take for a few months now. >> what ended up happening was stocks had reached those, you know, a lot of the companies in those indexes reached their highs and people realized, you know what, this earnings paradigm that we're in right now is not going to last forever, so, you know what. you start taking some money off the table. maybe they are moving it into something else, they are trying to reallocate, and that's what you're going to see in september, a lot of reallocation going into the end of the year and then you have the third quarter earnings or, yeah, the second quarter earnings coming out in search the. you know, we'll see what happens there. you know, it's -- you're going to see reallocation and reconfiguration of portfolios going into september i think we'll have a pretty volatile month. >> and before we get there, doug, what about mario draghi's remarks later on

what are you expecting >> i'm expecting him to ease people's concern that they will be pulling the punch bowl from the parliament i think at the end of the day inflation is low and they have no reason, to you know, to try to slow this thing down i think we're at the very early stages of international outperform and i hear what the other two guests say you're right you'll see rotation. today we have international stocks up about 700 basis points versus the s&p for the year. we haven't seen that, you know, in ten years, that kind of trend, and i think there's a lot more to go there and moving your money out of the u.s. and international is probably not a bad thing we don't dislike the u.s., but we think there's better opportunities elsewhere and i think we're still in the early stages of the global synchronized recovery that will become a sustaining flywheel. >> all right money certainly following that trade. it's been 0 weeks of outflows from u.s. stocks and people tend to be reallocating overseas. >> i was just thinking about the dollar. >> got that weak dollar as well. >> thank you, doug sandler and

peter costa and rick santelli. >> 350 minutes to go before the bell the dow up 71 a little below its highs and s&p 2448 the vix down below 12 as well. right ahead we'll go live to jackson hole for the latest in the fed summit and we'll delve into new comments from president trump's top economic aide and talk to larry kudlow about cohen's possible move to the fed. >> and as hurricane harvey rips into texas, we'll speak with the mayor of san antonio to see how his city is preparing for the weather and also an influx of evacuees from the coast. contact us via ttt, cewierfabook or e-mail. you're watching cnbc, first in business worldwide

welcome back white house official and rumored fed chair candidate gary cohn making comments about the president to "the financial times. eamon javers is here with that eamon? >> reporter: just got the white house first official response to gary cohn's ghents in which he voiced some of his frustration

with the administration's handling of racially sensitive matter in the wake of charlottesville, virginia. sarah huckabee sanders talking about that interview in "the financial times" that gary cohn gave and said she would much rather focus on tax reform here's what show said. >> everybody wants to focus on a really small part of that interview. 95% of that interview was on tax reform, and we're looking at a very small portion of it it. the president, as i said, and gary have spoken many times. gary has not held back what his feelings are, if you'll let me finish gary has not held back about how he feels about the situation and been very open and honest so i don't think anyone was surprised by the comment. >> reporter: we also heard from the treasury secretary mnuchin in the wake of the president's tweet earlier in the week that negotiations over the debt ceiling increase are, quote, a mess mnuchin sounding a very different tone in the white house briefing room. here's what he said. >> i am 100% confident leader

mcconnell said the same thing last week. i think there's no scenario where the government won't be paying its bills. >> reporter: kelly, just so much focus on gary cohn and does he want to be chairman of the fed would he be a candidate for that job? would the president appoint him to that job? i want to tell you that i just had an opportunity to talk to sarah huckabee sanders after the press briefing and asked her if not conversations between cohn and the president over there, if the presidentever promised coh a job or if they ever discussed a job as federal reserve chairman and she said no, they did not. kelly, back over to you. >> eamon, thanks very much to talk more about this, cnbc contributor larry kudlow down here at post nine. >> thank you good to see you. >> a lot going on here between gary cohn saying i'm staying and making tax reform a priority. >> right. >> and the assumption out there that one of the reasons he wants to stay in the mix is to potentially become the next fed chair in february. where does that all sort out for you? >> well, you know, of all my conversations in the white house

in recent weeks at very high levels, i might add, i think it's a two-horse race and i tweeted that earlier today, i really do did. i think it's a two-horse race for the fed. one horse is miss yellen and the other horse is gary cohen, and i might add in the interview, i read the full text of "the wall street journal" interview, jerry baker and company with potus, cohn was in the room, and president trump said that he's on my list, and then gary cohn said this is an interview about the president, not me. cohn is a good man and i've been able to spend some time with him so it's a two-horse race. >> the market thinks that, too, i were imagine this is pretty telegraph we've heard the president speak very highly of janet yellen, but it's pretty clear from all the reporting that's been made on this that gary cohn and the president has acknowledged this. >> you never -- obviously with mr. chairman trump you never know until you know and these

things could change. there's a number of very talented conservative economists who are all friends of mine, and you guys know them, too, no names, who could be eligible for seats on the board, who might be chosen for seats on the board. i believe there's three open seats, not counting the chairman but not the head, not the chair, so we'll see so i would say at this point as we meet on friday afternoon -- >> what difference would it make whether it's janet yellen or gary cohn? >> that's a really interesting question for a couple of reasons. number one, we never really heard mr. cohn expand his opinions on monetary policy. heard him a lot on tax reform and he and everybody else tells me he wants to stay and see tax rorm through with steve mnuchin over the monetary policy, does he favor the fed policy and or

the other things that will be coming up in the white house i think in the end people be happy with both. >> economic growth and prosperity does not cause inflation. more people working does not cause inflation. we're seeing that right now. as the economy moves to 2.5%, 3% -- >> on this for one second we have comments from the other big central banker right now, mario draghi stay right there. >> yes ecb president mario draghi speaking and steve liesman has headlines from that. >> reporter: mario giving comments and says it looks like the recovery is at an early stage in europe and japan, a little further along in the united states and warns that the cyclical rates, the higher rates could converge down on lower rates if action is not taken to boost productivity, and to boost productivity he says we have to boost trade and openness in the economy so he's leaning against

the protectionist bent that's going on out in the economy these days and says trade is key to raising that productivity but recognizes that the public is concerned about how free trade, whether or not it is fair, and he also has this question of whether or not this is coming to it the end we notice there's a serious risk to the economy and he's doubling down on something that we're not doubling down on in the united states which is multi-lateral institutions but having -- the more multi-lat wall, and while the united states and other ken truss are going their separate ways, you know what, more laterals converge on taxes and regular lieses and they can ensure the gains and fairness from openness

and free trade he's leaning a little bit against the political winds and, of course, there's a big message here to other members of the eu and the european monetary union about the benefits of staying in that union. >> but steve, he didn't see anything that would suggest now we're at the point of this massive unwind the believesesty got to that is when he said -- i got a little guidance fromsome folks i was speaking with about this the european central bank is very set about making policy at its meetings and letting the ecb president explain and other advance policy at those press conferences that follow those meetings, so i don't think i would expect that here or in another speech by draghi unless he feels some incredible need to push the ball forward, but the mixed moment, an early september meeting and a later okay

my kwfgs is late october everybody knows that's going to happen but don't know host we're going to let all this come out in due >> then they have seen how well we've done the balance sheet reduction thing and that's a much more steady, gradual, organized effort. >> kelly, can you ask steve -- >> i think he can hear me. >> if he would come on my radio show tomorrow morning. >> i can hear you. >> i need you on radio tomorrow morning i need you at 11:00 a.m. with a land line could you do it? >> i think we can announce this. i actually need approval, but i think we can announce that i will be on your radio show tomorrow at 9:00 a.m. money than time, nokes. >> love you for that and i have no shame about being a booker, whatever you want to

call mow. >> you're eating into your own time because we only time for one more comment steve liesman, thank you, buddy. yellen has done what many people thought was impossible, her term as chair we've had better growth. it isn't to my like, but better with no inflation. >> yeah. >> and i think that's fabulous. >> real quickly. >> on productivity we need desperately corporate tax reform there's stories out thereto that the white house is not going to have it own plan it's going to keep working with the group of six i would prefer that the white house has its own plan and the president sells a is a% corporate tax hike. >> take your preference to to the top. >> i'm working on that. >> larry, thank you very much. >> always a pleasure when we come back, the deal between amazon and whole foods set to close on monday up next, the perks that amazon says you could start seeing as

early as next week. >> the latest on the path of hurricane harvey coming up right after this thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. it's time for the biggest sale of the year with the new sleep number 360 smart bed. it senses your every move and automatically adjusts on both sides to keep you effortlessly comfortable. and snoring.... does your bed do that? the new 360 smart bed is part of our biggest sale of the year where all beds are on sale. and right now save 50% on the labor day limited edition bed, plus free home delivery.

ends saturday!

welcome back the deal between amazon and whole foods is set to close monday and amazon wasting no time saying customers will immediately see lower prices on a selection of whole food items. amazon says it's planning to integrate prime into the whole foods ecosystem through a rewards program and prime members will receive special savings and in-store benefits in the future

>> now grocers, we're showing amazon whole foods, michael, but that's not where the market movement is. >> balancing a little bit. you see kroger up 3% and sprouts, farmer's market still down today so that's considered to be right in the crosshairs. >> and if your business is organic and they are dropping prices on grapes and avocados. >> baby kale naturally. >> baby kale. >> and meat and fish, things like that. it's per itchable stuff. not big boxes of things that you can bring home and sock away you have to keep going back to the store. >> and integrate it immediately with prime kind of a quick aggressive move. i think i saw a stat that 60% of whole food shoppers are already prime subscribers which you could look at, wow, that's a great overlap or 40%, can you still bring on board. >> and also for those who are and i include myself in there. i'll be there on monday looking for discounts.

love the amazon book store got a hard cover cook book, it was great, and this thing would have been $35 full price. >> i think it's definitely worth menning that amazon's stock is well below where it was when the deal was announced and also 100 bucks down from its price. >> that's a lot of market cap. >> it's worth keeping in mind that the market got it real el overexcited and it's dialing it back. >> kroger is down 35% this year. been real el rough for the competitors. time for a cnbc news update and let's get over to sue herera. >> here's what's happening at this hour. residents in texas are heeding the warnings and they are stocking up ahead of harvey. these pictures taken inside a kroger show mostly empty shelves, a few cases of water and no more bread. another village in the swiss alps has been hit by a mudslide, the country's second this week residents were forced to evacuate as a river of mud carried cars and other degree through the town where eight people are still missing

general motors says a small numbers of its chevy bolt electric cars are experiencing a battery problem that could cause the car to lose propulsion gm says the issue impacts under 1% of the 10% bolts sold. and we now have a price tag for one of the most costly diseases to treat. caring for someone with dementia costs an average of $322,000 after the patient has been diagnosed. researchers from the american geriatric society also warn families they can expect to be on the hook for 70% of that figure a pretty sobering statistic there. that's the news update this hour mike, back downtown to you. >> sue, thank you very much. coming up on final half hour of trading, the dow is up 75% gordon, you've had this kind of gentle kind of recovery the past four days, been kind of choppy what do you think the tone is going into the final week of

august >> today it was all about what's happening how the in the jackson hole. >> turned out to be not an awful lot. >> the what was theyellen abou and is mario going to draghi down the market? had to geth those in there a lot of folks are thinking about your viewers in texas. >> absolutely. >> our friends down in that that area we're thinking of you. a major forecast being forecast, think of the economic implications and the refineries and shipping you know, that's all redshirt and you get aperspective on this and i wanted to pass that along. >> for sure. >> you know, look, we've had slow trading here, one of the slowest days of the year i can't emergency that next week will be much, you know, more robust than that you always have to watch out for the black swan events, and obviously, you know, with some of the geopolitical things that are out there those could occur. >> do it at the end of the month, whether that's mattered lately or not. it's unclear. >> a rebalance on the last day

may see some activity there, but a lot of the folks are away and will be enjoying it into labor day weekend. the fulcrum has been about 2440 on the s&p and we'll have to wait and see. >> also kind of a little bit of a debate here. the overall market didn't get down 3%, you know. looking at the s&p, but a lot of stocks underneath did correct a fair bit and it's one of the things, did it happen quietly or do we expect a little more chop? >> there's always a little bit of turbulence this time of year. get the earnings reports that come out and they start to punish those ones. look, we're at at level now where things can retrace quickly and still on a percent and basis not be that profound and then you have the look at where the stock it trading >> appreciate it. >> thank you, both dow hanging on to a 71-point gain this afternoon and the s&p

up .4 of 1%. nasdaq up 4 and russell up 5 up next, the latest on hurricane harvey from corpus christi, and as the storm approaches the taroe am'll talk to the national castphte at all state and see how they plan to assess the damage stay with us

welcome back hurricane harvey is barreling into texas i think we're ready for jackie to just get out of there she's still alive right by the coast in corpus christi. pretty windy already jackie >> reporter: good afternoon to you, kelly well, a lot of what have ifs today now turning into when? what we know is that the eye of the storm is headed towards corpus christi, and it is going to be a category 3 hurricane, and we can certainly feel it on the ground we've seen the rain intensify. we've seen the winds really start to the kick up as well now, we've heard a lot from our officials on all levels, not just the local level but also the state level and the federal level. the latest person to weigh in tom bosert, homeland security adviser. >> now is not the time to lose faith in your government institutions those emergency managers giving you advise and making recommendations for you,

evacuated with you doing so with your best interest at heard. we encourage you to listen to them. >> everybody urging poem that chose to stay on the ground here to listen to the officials, to heed the warnings, the white house echoing the same message as well, and that could be really important as we head into this evening as this storm intensifies and potentially becomes more dangerous a lot of old storm names being tossed around. i personally heard that the power outages could be three to seven days, and it brought me back to the sandy days a lot of people talking about katrina in new orleans a lot of people mentioning ike you know, big, big storms that impacted this area over a decade ago still have that tone with people makes them they are vows here, kelly. back to you. >> jackie, are you going to stay in that area throughout this -- through the weekend? are you guys going to high tail it out of there? >> we are staying.

we are staying we're going to see what happens over the weekend and how intense it becomes on monday. >> wow, all right. >> good luck and thank you for your reporting jackie deangelis in corpus christi. >> let's gets to dr. michael brennan, a senior hurricane specialist at noaa in miami. first, let's begin with the storm's track. how close is it to corpus christi, and how bad could it be >> the center is 75 miles southeast corpus kiss try and we're expecting the core of the hurricanes where the 120 miles per hour sustained winds are to reach the middle texas coast sometime later tonight or very early saturday morning so that's -- that's sort of the first hazard that we're going to see with harvey, but we're already seeing the big rain bands moving onshore and seeing sustained winds right along the

coast of up to 50 miles per hour and gusts up to 60 miles per hour and continues have began downhill quite a ways with the tropical storm force winds and we're seeing coastal storm surge flooding one to two feet in the corpus christi and port aransas area. >> i guess the models are not suggesting it's going to rapidly go inland. it might obviously stick around there a while. what does that mean in terms of the intensity of the storm is it not going weaken that fast and for rainfall totals? >> well, yeah, here's our track forecast that takes the center inland tonight and basically stalls it out over the next three days over the middle texas coast and doesn't move very much since it's not going to go far inland, we're expecting slow weakening, and it will maintain tropical storm intensity through the next several days. the biggest hazard from the slow motion is going to be the very, very heavy rainfall that we're going to see where we could see 25 to 30 inches of rain, isolated totals across the broad

swath of southeastern texas and southwestern louisiana and areas like the houston, galveston area and victoria and corpus christi. if you add all that rainfall on the storm surge flooding we're expecting to see 6 to 12 feet as the center crosses the coast overnight tonight. that's a potentially deadly situation for multiple hazards here for harvey in the next couple of days >> michael, how well prepared is the area generally speaking for a hurricane of this size and scope? >> well, there's always a lot of vulnerable infrastructure anywhere along the coast, so we just hope that people have heeded the advice that they have gotten from their local officials, that they have been told to evacuate we hope they have. unfortunately now, continues have reached the point where it's going to be difficult to -- to move out, if you haven't done so already so we just advise people to please take care of themselves and get as much shelter and if you can get out if you've been ordered to do so please do that. >> what are you able to infer based on this storm and

intensity and location against hurricane season is it anticipated to be a very busy and dangerous one what's the outlook at the moment >> well, every hurricane can pose a danger all by its own, regardless of how busy the season is. we're expecting a pretty big season in the atlantic had several named storms this is the first, you know, hurricane that's threat therening the united states this year, but everywhere along the u.s. east and gulf coast always has to be prepared for a-hour inevery year just had the anniversary of hurricane andre yesterday 25 years ago, a very quiet hurricane season overall and andrew devastated south florid so everybody has to be prepared. >> michael, real quickly this storm was just upgraded to a category 1 this afternoon. is it possible that it becomes larger or anything that indicates it's going to get stronger or are we focusing on its pace of weakening? >> it's been slowly strengthening throughout the day. sort of gradually the winds have continued to fall and we don't see any reason for it to stop

doing that before it reaches the coast. it will simply run out of time in the next six to 12 hours, and that will stop the strengthening of the storm at that point, but the hazards are already going to be coming. those winds will not go away and the storm surge is coming, and that's what people need to be ready for at this point. >> all right michael, thank you for your time this afternoon really appreciate it michael brennan at noaa. >> sure. >> less than 20 minutes to go. markets up 59 points into the weekend after a choppy week. small gains across the board and the hurricane preparations are well under way coming up the mayor of san antonio will join us to talk about how his city is bracing for harvey's arrival. >> but, first, get ready for david darst. he joins us with his market them to of the week that's coming up next. time's up, insufficient prenatal care. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face.

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at lendingtree, you know you're getting the best deal. so take the power back and come to lendingtree.com, because at lendingtree when banks compete, you win. welcome back it's that time joining us with this market acronym of the week is david darst, the independent investment consultant. what do you have for us today? >> we want to get ready for the fall we want to get ready for the last third of the year, september through december when everything seems to accelerate. >> the and if you're in houston you want to get ready for that. >> my daughter elizabeth and her husband and three kids moved upstream san antonio and i found out you'll have the mayor of san antonio on. >> do they live in houston >> going to san antonio.

wanting to get ready for the start of the school year and the storm and we wish everybody safety and -- and, you know, coming through it in good shape. "r" is the retailers, the automobile sector and the housing sector have been suffering. so there's been this sort of slowdown we hope it's a pause and that it picks back up in the fourth quarter. the "e" is extended valuations price to bok, price to sales, market cap to gdp. the schiller price earnings ratio and the ten-year ratio all of those are extended. i would say they are simmering they are not on the boil the long-term average of the schiller pe is 16.8. >> yeah. >> the lowest ever was 4 right after world war 1 and the highest ever was the dotcom era 44, so it's now 30, okay the r-e-a, "a" is analyze and assess and that's david darst's six-point check list from a bear market

one, is the fed tightening no is the recession looming no is investor euphoria present in the large-cap tech stocks, yes. otherwise no are valuations stretched yes, they are simmering, okay. i would give that one a yellow light. not a red light. finally, are the bank small caps and transportation stocks underperforming the market and yes, they are. that's a flashing red light. going to see it text tend in order to make you bearish. lastly our credit spreads between regular bonds and treasury bonds narrowing or widening widening is no good but they are staying narrow so basically five out of six, still okay, all right. r-e-a-d, "d" is the debt drama in washington, debt ceiling drama. 12 days it for the house and senate to work together when they come back from recess basically, you know, there's a lot of rhetoric and the market can swing back and forth i think for me it's just

rhetoric mitch mcconnell, who has had his issues with the president and the president with him, he said there's zero chance. >> right. >> so i would -- i would go with that for right now, and if there is some disturbance or pesht bas - the perturbations in the market, you want to basically use that as an opportunity to buy, okay >> yeah. >> and finally is "y" is yellen owes 2018. okay requests oceans 7," yellen's 2018 and there you want -- you want -- she basically -- her term ends february of to 18. the market i think would like to see her, but don't think if -- if it were gary cohn they would be happy, too. he's business friendly he's financially savvy, but she's done a phenomenal job, and -- and i think the markets would rally either way if it were one of those two. >> all right. >> the only thing that would make it selloff if it was david

darst. >> or if we don't get an answer for a long time. >> that's right. >> they want a little bit of a decision. >> next week is the four cs, case schiller, consumer confidence, construction spending and buy more europe and buy emerging markets. >> excellent. >> thank you all. >> stay dry in texas, everybody. >> yes, be careful. >> we have a market flash. let's send it back to seema moldy at headquarters. >> those draghi comments at jackson hole sending the euro higher by as much as 1% hitting a high of 119.40, the highest level since january of 2015 against the u.s. dollar, this as ecb president really failed to talk down the currency and instead spoke optimistically about the state of the global economy. also saying that he sees significant monetary accommodation that's needed and inflation not yet converging to target back to you. >> could touch $1.20 pretty extraordinary. >> remarkable what passes as a

hawkish comment in europe. that's interesting. >> enough to spike t.dow hanging on to a 50-point gain. just about 12 minutes to go. 600 to sell on the bell. arthur cashin walking by there see if it has any impact s&p down 7% right now and when we come back i think we have the closing countdown. >> certainly do, and we'll have the mayor of san antonio texas who is activating a disaster declaration for his city we'll have him on the back end ♪ (bell rings) ♪ (screeching tires) (bell rings)

>> certainly do, and we'll have closing countdown.

welcome back there's galveston, texas the whole state is bracing for landfall as hurricane harvey bears down on the coast right near corpus christi. now a short ways inland but in the path of the storm is san antonio. and on the phone with us is san antonio mayor ron nirenberg. thanks so much for joining us. >> thanks so much for having me, mike and kelly >> what at this point are your primary concerns we mentioned obviously san antonio a bit inland you've made a disaster declaration. is it a matter of the rains taking on people who are owe vacating from elsewhere? what's your main concern >> well, it's a little bit of everything i mean, we have a couple of reasons why we've spun up our emergency operations center which is a coordinated and

regional emergency operation center we're taking in resources from else were in the state to deploy to coastal communities in need of help and we're receiving evacuees that we're sheltering the other situation that we're having obviously is we're in what's called flash flood alley here in text yeah, and small amounts of rain happening over a short period of time or sustained rains can cause some pretty significant flooding. localized flooding >> yeah. >> so we're keeping our residents informed and keeping everybody off the streets. >> mr.-makers i think when we checked in with you this morning you had around 400 evacuees. how many can the city support and how many do you have now >> well, we'll take anyone who needs shelter, who is sent our way. we've been through this before several times. currently we have capacity continuing to be built currently sheltering about 100 evacuees and in sheltered locations but we know that there are people who are leaving the

coastal areas voluntarily, and we've got cooperation from the motels and hotels in the area to make sure that people have shelter. >> you mentioned that y'all have been through something like this before, though it has been quite a number of years since a storm of this sides did make landfall right at this part of the texas coast. do you feel as if on the state level and with coordination with other community that there is full preparation for this, or do you feel like everyone is in a scramble >> without a doubt we're always ready it's been 12 years since a storm of this magnitude reached landfall anywhere in the united states, but, you know, certainly here in south texas with our emergency operation in and around the san antonio area we're always prepared. of course, storms are unpredictable so we need a lot of help with good common sense from citizens around our area. we're asking them to stay tuned on the latest weather and making

sure that they are not traveling if they don't need to and also, you know, downloading apps and things that keep them informed of the changing weather conditions. >> all right mayor ron nirenberg of san antonio, thanks very much for calling in today and god luck with the storm this weekend. >> thanks. >> when we come back, we'll have e thclosing countdown for you as we head until five minutes to the close. you always pay

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♪ ♪ (bell rings) ♪ (screeching tires) (bell rings)

come up on two minutes left in the trading day, we have the dow up 45, s&p up five points. on the floor here with morgan brennan here today we had rally mode most of the day but it's kind of moderated in it the afternoon. we had some relief it seems that gary cohn says he's sticking around and will try to push through tax reform and what else is on your radar today >> that's certainly been the case we've seen all 11 s&p sectors higher today at all. i think sort of the big move that everybody has been watching in the past hour is actually not in stocks but in currency and the fact that we've seen the euro strengthen against the dollar, highest level since january 2015 after ecb president draghi spoke in jackson hole didn't lay out any kind of indication on a timetabling for paring back on the bond buying. >> does show how sensitive people are to any sense that things might change over there, that they might start to reduce accommodation. the currency markets, as you say, took it and ran.

>> yeah. >> so we'll see if that's a follow-through or just a little bit of a blip on a friday. i would also point out that the bank stocks were outperforming today even though treasury yields didn't go off not a move related seemingly to the bond market and the volatility index down below 12 again, the vix, which shows you, look, late summer, we've been in a stable market most of the week. >> and yet when you take a look at this month in general as we get to the end of august, we do have gold outperforming the s&p so far this year it's up 13% versus the s&p's 9% gain interesting to see whether that continues. every time that gold hit that 1,300 or comes close to testing at the 1,300 markets, it's come back down. >> a god reminder even though stocks have been in rally mode all year, flattened out in the last few months and there's enough global concerns and central banks will get active and gold getting a bit morgan, have a good weekend. >> ringing the bell here at the big board is aetna and we have

limited media technology limited, and the next hour of "closing bell" belongs to kelly evans right now. >> welcome to "closing bell," everybody. i'm kelly evans. mimal will join me in just a moment the dow up just 35 points on the bell art cashin told us there were sell order on the close pushing us low, 100 points off the highs of the session from this morning. still, enough of a gain to put us over 21,800 to 817. s&p 500 up 4.5 points to 2443. the russell 2000 small caps continue to try to stage a quiet comeback they are up a quarter percent,

all the more significant the on the close it turned negative dropping to 6265. two-week losing streak snapped for the dow and s&p. locks like we're finishing the week a little higher a live shot of galveston, texas. there's the path of hurricane harvey as it prepares to make landfall it's gaining enough strength to become a category 3 storm. we heard that just about an hour ago. we'll bring you the very latest from the ground. there's galveston where things already look pretty, pretty rough. the mayor of san antonio says the city will take in anyone who need to flee the path of the storm. >> joining me on the panel cnbc commentator michael stoney, ira rothbun, michael, today was choppy, the whole week has about

choppy what do you think the takeaway is >> cheap, but the market seems like it doesn't have a whole lot of energy behind it, and you would have thought maybe you were going to have the deeper pullback that everybody is bracing for, and i think subdued sentiment. you had a lot of stocks correct significantly below the surface but the index has managed to slide in there in the middle of the range and that's where we're ending the weekend treasury yields lower. not exactly a risk-on move even though we did rally. >> the dollar index is pretty striking down another point at 22.5 right now, and we had a guest last hour saying how everybody should put all their money into international market and maybe that will move it further it a lot of central bank talk and heard from janet yellen and mario draghi and that euro is up near $1.20. >> not too many people predicting that at the start of the year but that's the way markets tend to be touching what mike said earlier. you know, the change in some of

the stocks, amazon i think is down what, 11% from its high, 12% from its high and netflix off 15% from its high. remember, i said oh, god, when it hit 190 i thought about shorting it, but i didn't, but it's like a lot of times -- >> if you had it would have gone to 210. >> my point is that there is -- the market is really kind of just treading water. i mean, just hanging in there. >> but the move you're highlighting in the f.a.n.g. names, they have taken a step back lately. do you draw anything from that >> i think it's really hard to draw things because you think you have a weird dichotomy between the equity market and bond market. bond yields are going lower. >> that's not a dichotomy t.supports higher stock prices. >> but it's basically saying -- >> if you believe it's bearish about the economy but if you realize there's nine flakes at amazon and whole foods, it's nowhere in sight, it's fine. >> i'm a little suspicious when you have such a flat yield curve. yield curve is super flat right

now. >> whoa. >> and -- and basically if you're telling me they can basically buy short-term treasuries and get at 1% yield or 105 and go out nine years and get what is it now >> 100% more yield it's a percentage point. >> it's 100 basis points, mike. >> that's why it's not flat. >> the only time a flat yield concern is a concern when it's negative, beyond flat to negative. >> we're in a weird part of the cycle or kind of monetary history when you say it's 100% when it's really 100 basis points. >> that's the world we're in. >> i'm with you in the sense it will probably flatten further and the end of that may be an inversion, but it may be several years off. >> absolutely. >> so let's bring ira in here and if you have any thoughts on what investors should do in the meantime. >> you need to be very mindful of where we are on the greed and fear pendulum, and you know, an earlier guest referenced where the schiller pe is and the s&p

500 trading at 25 multiple on trailing earnings so you need to maintain valuation discipline. you know, we've seen the last few weeks how sensitive the market is to long-term interest rates and the pressure that can be on that multiple if rates start to move up meaningfully. >> actually it looks like you have a couple of names here that you like car max is interesting because that's been kind of a tough sector lately in terms of used cars and resales and things like that what's your -- why do you like that why do you think that's a good place to be in this market >> a couple important reasons that we like car max used price depreciation and the gap in pricing relative to new car prices has been narrower than usual and it increases the relative attractiveness of used cars when used car prices deppiate. >> yeah. >> second, car max revolutioned the car-buying process with its no-haggle transparent approach

and we think they are ready to do it again. they have a number of digital initiatives under way that allow the consumer to -- to -- to -- to employ more of a self-service model, you know, complete a financing application online and get online appraisals that can really lower their ratio and improve their margins. >> yeah. >> so it's very exciting times for car max. >> shares are up 1% today. maybe that's a good place to talk about the transports. >> yeah. >> often looked to as a blam ter for where everything is headed. >> a little bit of a rebound but it had been hard hit. >> the airlines bounced today. i mean, that's a big driver. >> cap goods, okay the headline number was terrible, so in terms of the economy, it looks like if anything the gdp numbers are going up a little bit. >> that's right. the economy seems to be revising the third quarter number up in the range perhapsch 3% which was basically what we did in the third quarter last year so it's a seasonal kind of ebb and flow and the transports have been weak small caps have underperformed it has not been a market that you look at that says, wow, the

economy must be running hospital on the other hand, it's managed to find a way to kind of stick around the vicinity of all-time highs. banks, as i mentioned, up half a percent today without any help from yields so it seems like there's just enough working that it doesn't fall apart. >> let me ask you about something with all the news about fiat trying to figure out its future evan, how are you looking at this it basically feels like it's lost in the middle even though it has a great brand with jeep does it need downtried to be part of gm and china might buy it or maybe it has to break everything up? >> the one thing about the auto bailout of nine years ago or whatever it was, 2008, yeah, almost nine years ago the one thing about that it never got rid of the huge overcapacity there's been global overcapacity in the auto market for decades, the last few decades, and the one country where it should be not that politically difficult to do away with the capacity is the united states and chrysler

has always been the outsider that's why it hooked up with fiat that's why fiat chrysler is looking for another partner. >> do you think it takes another crisis to cause that flush in other words, can deal-making at a time in the cycle like now take care of the overcapacity in that sector hand maybe others, retail, for example, or is it going to take another crisis to force that out >> i think retail -- retail the stock market and the bond market will deal with the overcapacity and the retail industry. it's been doing it pretty -- pretty well and at an accelerated pace the car industry has always been different but the car industry for whatever reason has been looked at politically at something that you couldn't -- couldn't let a company go out of business >> what were you killing me game stop multiple was? >> game stop might be the cheapest stock out there, about six times earnings after declining again today. >> wow. >> basically at extreme end of retailers being priced for permanent decline of some sort right now. >> yeah. >> not a tremendous amount of debt for a game stop, but i do

think, you know, the bond market, when it comes to retailers, is not as concerned as the stock market. so, in other words, the corporate bond market is not saying, hey, we've got to price in lots of bankruptcy. >> yield that's better than what your 1 or 2% is. >> macy's has a 7% yield right now. >> right. >> but -- >> pension funds would love that. >> macy's is not covering their did dend. >> yeah, they are. >> they are not really covering them. >> let's move on ira, thanks for joining us good discussion on car max. we've been tracking the path of category 3 hurricane harvey all day. hours away from its handful tonight. jacuzzi still in corpus christi and has the very latest for us there. while nbc's kaitlin mcgrath is watching from headquarters jackie, we begin with you. >> reporter: what's interesting and remarkable about this storm is it sort of kept on the time line that everybody was forecasting. we've watched it all morning it's gained strength

the winds have gotten more intense, the rain has gotten moreintense and just as this eye is expected to come to the coast this evening as you'll notice, my shots started out by the water we've moved to the balcony because some of these winds are so strong that they kind of were throwing my frame around at this point. a lot of people were walking around on the street a little bit earlier this morning now you don't see anybody on the beach, and you're not really seeing anybody around. it appears that they are heeding the warnings that the officials have given which was if you didn't evacuate you need to be responsible, and you need to stay inside. so that's one piece of the story, the actual storm and impact it's having on the community. the second piece of the story is the refinery aspect u.really can't ignore it. here in corpus christi there's five refineries with the capacity of a little less than 1 million barrels per day and that's 4% of the total u.s. capacity it. along the gulf coast where this storm could impact you're

talking about 9 million barrels a day, 35 refineries hand that's about 36% of the total capacity, so there's a couple of things. you asked me if i'm staying this weekend, definitely going to be a couple of things that i'm keeping an eye on, not only to see how the community responds here, how the government responds here, howie is veer this storm becomes, but also what the energy impact is. back to you. >> jackie, for now, thanks so much. meantime, meteorologist kate rin mcgrath has been track the storm's movement and joins us with more at this hour. >> reporter: that's right. hurricane harvey has slowed down quite a bit, but it's continuing to turn towards landfall later this evening overnight tonight and into saturday morning. here's harvey. we're already dealing with that very heavy rain and gusty winds along the texas golf coast you can see exactly where the eye is continuing to push to the north and west again, expected to make landfall later this evening now, we have a number of warnings across the entire

state. hurricane warnings from victoria down to corpus christi and port aransas. heading further along the coast, the storm surge warning in effect for the entire coast. the only exception is trinity bay, galveston bay and points south of port manfield where a storm surge watch is in effect let's talk numbers this is going to bring serious rainfall and flooding threat as we head through the next couple of days, so we'll show you exactly what we're expecting that rainfall anywhere between 15 and 25 inches, locally up to 35 inches of rainfall is expected that storm surge between 6 and 12 feet coming simultaneously with high tied that's only going to increase the flood threat as we head through the night tonight. add on the rain. the rain will have nowhere to go drainage is going to be a big concern. as we head through the weekend and into the start of next weekend. of course, this is a category

three hurricane. winds already at 120 miles per hour a category 4 storm is 130 miles per hour, so we're not far behind, so winds will be a major concern. downed power lines and isolated wind damage a big threat as we head through the rest of the evening really into the rest of the weekend. that's the latest on hurricane harvey back to you. >> thank you how are insurance companies perhaps preparing for the potential damage from the damage joining us is senior vp of all state claims and we really appreciate you joining us today. what do you think their potential losses are here. >> thanks for having me, kelly, and it's very early to kind of even speculate on what the losses are right now 100% of our focus is on preparing for the response and following in the path of what harvey ultimately does and then ultimately being there for our customers as they begin to restore their lives after the hurricane.

>> can give us a best case, worst case scenario and how did ivan fit into that >> we've had experience with a lot of different storms over the years. part of our preparation is kind of understanding the extent of the storm, whether it's winds, whether it's significant rains, and i think harvey has the potential to have very, very significant rains, so one thing that you'll find on the projections is they have been very, very accurate on speed and location, but -- but i think every projection is not sure what's going to happen after landfall, so once the landfall does happen that's where the unpredictability gets on to, whether it's number of claims or financial impact that's where it's very hard for anybody to tell at this point what the ultimate results might be we all hope that it fizzled out and is not the storm that we think it might be. >> mark, you mentioned the heavy rains as being one of the more dramatic features of this storm. now, presumably outright floods

are kind of covered outside the insurance industry by national flood insurance. what does that do to how you think about the exposures of your company there to the storm? >> so, you are correct the standard homeowner policy might have either limited water coverage or no coverage for that, but there is a good answer through the national flood insurance program for that we're a servicing carrier for that, so we'll be responding and helping our customers with that, and as you know that is underwrittenbury the federal government they obviously have the funds to pay that, so anything that is flood-related where the customer does have a flood policy, that's all going to be taken by the policy obviously the other policies that are in place, there could be, again, some water coverage there could be some other coverage that happens, wind coverage there's also a very good state program in texas where they have got kind of a windstorm policy,

a windstorm pool so a lot of people will have their individual private company insurance. they will have a flood policy, and then they will have a policy through the state of texas. >> that's great to know. mark, thank you for now. very interested to see how this all plays out. >> we'll have more on hurricane harvey as we move ahead. we'll speak to the tracking experts at gas bud toe find out how much harvey's impact on oil will boost gas prize, and they say it will. but, first, ride share disrupter uber is trying to get its house in order amid some major internal disruption. we're going to take a look at what ceo could turn things around and the latest battle in the board room we want to hear from you contact the show via twitter, facebook or send us an e-mail at closingbell@nbcuni.com you're watching cnbc, first in business worldwide

welcome back a battle among shareholders of uber escalated late yesterday as the ceo search hit high gear deirdre bosa joins us from san francisco with the latest. deirdre? >> reporter: just as the board is getting set to pete to pick

the next ceo legal documents were filed saying he had to intervene in the lawsuit against travis clan nick he's accused of plotting to take over the board and violating itsify dussehre duty and trying to push its own candidate for the next ceo, current hp ceo meg whitman. today the lawyers appointed by another early uber investor followed up with a formal demand to inspect some of the uber documents which adds more fuel to the fire. jeff immelt and another who amazingly has not yet been leaked now the company has been without a ceo for more than two months now, and while the board may be getting closer to selecting a new one, it seems unlikely at this point, kell, that everyone will be happy with whoever it ends up being and aside from the board room drama, the company saying it's exploring options for its massive oakland property including potentially selling, it part of its drive to improve

markets and eventually get to profitability despite all these distractions kelly? >> yeah. good luck on that one, deirdre thank you. deirdre bosa, what can step turn things around and joining us was more is jeffrey cohen. who the would you put in the seat >> first of all, we have to look at the issue with what's going on with the board. this is an easy search this company is on cruise control to a $100 billion ipo and the board canned get out of the way of each other, they are suing each other and public bickering and what ceo worth their salt will want to come into a board like that that's so dysfunctional, along with someone like travis who was a great founder and got the company to where he is but he's casting a long shadow, so i think it will be difficult for them to i a tract the best at all end under these circumstances. that said, it's a once in a generational opportunity. >> the ceo who is going to -- who wants to make $is billion in

the space of a year or two that's the kind of ceo they are getting. >> because of the listing? >> yeah. whatever package is cut for jeff immelt more whoever is actually taking it is going to be made incredibly rich by almost any scenario unless the thing totally blows up. >> not to say it's going to totally blow up and we've spoken to people who floated the idea that this company is worth $10 billion. fact that a number is floated like that when it's been valued at $70 billion in the private markets is pretty valuable where it might be headed you know, i'm not sure how lucrative -- >> i'm very skeptical of the 60 billion or $10 billion new i don't buy it it. i don't believe that number at all. all i'm saying is there will be some of the smartest compensation lawyers to ever walk the earth sitting down with jeff immelt or whoever becomes the next ceo to make sure whatever happens they come out looking good. >> i don't know, you're at ceo expert. >> i mean, i certainly am in favor of everybody getting rich,

are but there's a lot of downside so if you don't think the market cap is worth the $70 million right now, then, you know, that person's got to get it up to 100 or else it's going to be a total disaster for that incoming ceo. >> i've been struck by the names that have come out in this vain of jeff immelt and meg whitman, the long tenured ceos who are obviously these kind of elder states people. they are going to kind of bolt themselves on to this company moving 100 miles an hour and it's like move fast and brake. doesn't seem like it's a good fit. >> i think immelt, and i said it on the show, i think he's sort of a strange pick. he has gray hair, and i think the most important thing for this company is a little bit of gray hair and the curl tour. the job is all about the culture and he has been a situation where he's run and set a culture for a big, plex organization and he could do it but the issue for future travises of the world, the passion and the intelligence and the vision can get you so far,

but it's that lack of soft skills that can really trip you up. >> i a parentally. >> those take months and years to develop so, you know, the lesson for tall these future travises is to start early and think about the eq. >> one thing zuckerberg has done he's constantly been in tune and in touch with what he needs to do on that front. >> some big bets, nothing new in las vegas, but two wagers of $1 million have been placed on boxing favorite floyd may yetter we'll look at what's at stake for the vegas casino and there's an app for everything these days but no one is downloading this one. we'll take a look at it after the break.

hey dad, come meet the new guy. the new guy? what new guy? i hired some help. he really knows his wine. this is the new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad.

welcome back, and it's time now for our fast take today. we begin with a bitcoin story du jour, that have tax as ordinary income and what about the 3% extra investment tax or if the irs decides that's just tech clip a property division, the taxes owed could be zero, guys the feds need to decide on this pretty quickly. >> bottom line you have to decide what bitcoin is is it a currency, asset or something as a security? we don't know. so it's -- it's quite ironically that basically my view is that it's used for money laundering and tax evasion, that it's used as something to avoid paying

taxes is going to be used in order to collect taxes. >> if the bitcoin people want to say it's a legitimate people and not what you're describing, this would be one way of passing that test. >> but the irs treatment will help inform how it ultimately maybe gets regulated. >> exactly. >> like canada yesterday had to come out and say just because it says it's software, doesn't mean it's software. it could be a cryptocurrency >> next, in one downloads apps anymore. 5 is% of users in a new comp score says they didn't download any apps what does this mean, when i saw this it didn't surprise me and there are some thousands of as that it shows you everyone sort of self etties >> >> what about you >> i download very few apps and

use very few apps. >> facebook and instagram. >> i don't have facebook. >> snapchat. >> i have known of those like the new england patriots app so i can check -- >> that's important. >> and i can check scores and whether or not gronkowski kurt his calf or something. >> what would it have for you to download a new one >> it has to have a lot of meaning to me which very few apps do. >> utility, easy to access the bank account through the app as opposed to online. >> it means coming out with a cool new feature and getting into the hands of everybody, simply no need if you think the markets had a good year, check out wholesale price of chicken wings, up 20% year to date to a record $2.09 a pound and as the journal points out that's putting sports bars like buffalo wild wings in a tough spot they have to choose between raising menu prices or swallowing that khost. >> no doubt about it i mean, buffalo wild wings has had a tough time in the past when you've had these spikes all the agriculture commodities

say -- >> didn't memphis just -- they developed a lab-based meat product. >> as far as i know amazon is going to fix any inflation to any product in the world and we have nothing to worry about. whole food, you'll be able to buy a chicken wing for 15 cents. >> the way they fix it is restaurants can't raise the price and that's how prices race. >> hi, kelly, hi, guy. an executive order issued today by president trump calls venezuela's leader nicholas maduro a dictator and orders u.s. banks to stop lending money to that country as well as its state-run oil company. treasury secretary steve mutualin explained the reasoning

at today's news briefing. >> maduro can no longer take advantage of the american financial system to facilitate the whole -- >> president trump will likely end an open immigration program known as dhaka allowing those prout to the country illegal can stay 800,000 are covered by that policy and can apply for work permits. a mural is taking place on an old industrial building it depicts workers building the lincoln memorial you're up to date. that's the news update this hour kelly, have a great weekend. >> you, too, sue thank you very much. >> you got in it. >> our sue herera. european central bank president mario draghi speaking at the fed retreat in jackson hole. we'll head out there and speak

to the chief economist of the imf to get his reaction and hurricanes often hit companies pretty hard. we'll crunch the numbers and see how costly some of the hurricanes have walloped some of america's biggest companies when we come back

welcome back managed to hang on to gains on wall street. dow up 30 points, russell up 4 enough for the dow and s&p to break their two-week losing streak and the nasdaq continuing to struggle with the big-cap tech names the nasdaq down 5 points the annual summit in jackson hole is sunday way and our own steve liesman is out there steve? >> hey, kelly. thanks a lot i like talking to you because you're like the person who would be the most jealous of me being here amidst all the economic wonks. >> i'm going to try not to jump in and let you do this you're always welcome, kelly let me ask the chief economist for the imf, thanks for joining us. >> hi, steve. >> one of the nice things, not just the mountains and the sun, the idea they are talking about global growth and the global economy seems to be growing and doing better i imagine you've taken out your pencils and erased a few

mums-of-numbers and maybe put a few plus signs how strong is global growth? >> we'll be putting out a new forecast in five weeks of our annual meetings. the global economy is doing well i won't let anything slip about what our numbers are looking like because they are subject to change, but our last projection for 2017 was 3.5%. we're certainly not going to lower that number and certainly that it's broad-based in a way it hasn't been for a decaded >> does broad-based mean it will be sustained rather than a single spurt that causes you to upgrade your forecast and then downgrade it again >> like you're running on three engines rather than one and even if a engine weakens a little bit you've still got momentum. not to say that everyone is doing great. if we look at emerging and developing commodity exporters, they are still in the doldrums and still have an adjustment to make. >> what are the risks out there right now to global economic

growth and to the potential for a sustained global economic recovery >> we don't think that the risks are skewed to the downside in -- in the immediate term, you know, next year or two, but we do see longer term risks. one risk is continuing tepid growth and what we're seeing is a cyclical upswing an potential growth remains slow. this came out in president draghi's speech. >> sure, and that brings with it political tensions which we've seen spilling over into protectionist rhetoric, for example. we worry about asset values getting overstretched, particularly as output gaps close and central banks raise interest rates. >> but on the other hand it gets stressed in part because interest rates are low, people say, which creates risk to financial stability. if the recommendation of the imf for both ecb and federal reserve is to keep rates low. >> we think financial stability is best handled with financial regulation, with macro

prudential measures. as long as inflation remains below target, as long as output gaps are negative, there remains a case for low interest rates yes markets have to get ready for that date when interest rates rise, and if there's a lot of debt, whether it's public debt, private debt, that could be a risk. >> you don't think the ucb should be moving vastly closer to where the fed is, you think them being negative and the raising, that it's sustainable >> core inflation is still below and headline inflation is still below targets, so i don't see a great rush for them to tighten it's not like inflation expectations are getting out of control. >> thanks for joining us for this quick trip around the world. >> pleasure, steve. >> kell el, back for you >> very good stuff, steve. with appreciate it very much

jealous what you have the rest of the week. steve liesman. two high rollers have played $1 million bets on conor mcgregor and floyd mayweather fight and hurricane harvey has starting its pummeling of the texas coast. the impact on the oil state's oil industry could be dramatic and it will affect gas prices across the country a look at what texct io pes right after this you're watching cnbc, first in business worldwide cameras. introducing the newly redesigned gla suv. at a price that'll make you feel like you've gotten away with something. the 2018 gla. lease the gla250 for $359 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. so that's the idea.

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welcome back as we continue to track hurricane harvey's progress, we'll go to kaitlyn mcgrath back at headquarters. >> reporter: the central pressure in harvey is continuing to drop as it barrels toward the texas gulf coast, and just to kind of put this in perspective the central pressure already lower than the last category 3 to make landfall in texas 47 years ago. the difference being celia kept moving harvey is going to stall out once it makes landfall so that gives you an idea of how catastrophic this will be. you can see this continuing again to push towards the central gulf coast we've been dealing with that heavy rain and gusty winds all day long already seeing sustained winds up to 70 miles per hour for parts of corpus christi and we're really just getting started. this the will it be to continue to push onshore and make landfall lathe tonight and overnight into saturday.

give you a look at a current track. a category 3 hurricane that's going to maintain its structure as it makes landfall overnight. it's not really until saturday evening where we start to see things dissipate once they work their way onshore. we'll finally downgrade to category 2 and one by saturday night before harvey loops back down into the gulf of mexico which could be a little difficult getting into the warm gulf water as it seems back down through and then just to the east of houston by mid-week on wednesday. here's what we're really going to be watching over the next couple of days the initial impacts the wind and the storm surge but after that the flood threat really increases because we're going to see that rain stick around throughout the weekend and into next week. here's what we're looking hat in terms of wind gusts. winds gusting close to 70 miles per hour in corpus christi you can really see where the eye of the hurricane is right now when that initial factor and then we wring in the rainfall. expecting rainfall anywhere from 15 inches to 25 inches and

locally up to 35 inches of of rain you add that on to a six to 12-foot storm surge and we're looking at really catastrophic flooding as we head through the upcoming days. that's the very latest on hurricane harvey. >> trying to imagine what 35 inches of rain even looks like kaitlyn, thank you what impact could hurricane harvey have, also on prices at the gasoline pipe? patrick, i understand this could have a big impact. >> it could. wholesale gas prices yesterday went up five cents a gallon and this morning it looked like they were on the same trajectory and then they were up another seven cents a gallon and then the market turned to denial and closed flat. so much information to process now you have the model that was just shown there that shows the storm going back out over the gulf of mexico and then clobbering houston, so i think monday could be a day of reckoning for gasoline and

specifically oil for now the national average is rising it may not continue to rise very much, but like i said, watch out for monday that's probably when we'll start to see initial reports from the storm, and if those models are right from a second landfall, this really could get ugly. >> patrick, it's evan newmark. i understand you think that it might get ugly, but isn't it remarkable how relatively stable gas prices have been over the last few years we haven't seen, you know, maybe i'm going back to the 1970s when it seemed like gas prices used to like rise every day, but even, you know, in the physical of the hurricane and the threats right now, even over the golf. it hasn't moved very, has it when you talk about refining it's refining oil into gas here locally and, of course, we can have all the crude oil in the world but we can't pump it into a car without it being refined

that's the thing there's plenty of oil globally, and the u.s. it is continuing to stockpile oil inventories and are still very healthy and turning that into gasoline is a whole other ball game. you talk about oil rigs in the gulf of mexico even they are much more prepared for this storm than what a refinery could be. they are already at sea. they could even potentially oil at the same time refineries are having to shut down to deal with the tremendous rainfall. >> what -- what's the outlier scenario here? i mean, we keep thinking about it, you know, at temporary shutdowns even if they are a bit prolonged and you'll have maybe a lack of gasoline production in certain areas, et cetera is there a chance. any of kind of prolonged near shortages or anything else that might -- that lasts a while? >> i think there certainly are we'll have to keep a very close eye on what happens to houston as goose houston, as goes the nation in terms of gas prices. if houston gets clobbered and those refineries are down more than two or three weeks this

will become a very big tickup tour nationally in terms of gas prices will accelerate even if the storm bleeds over into louisiana and lake charles this would become a much bigger scenario at the pump if houston is directly affected >> patrick, we just showed your gas tracker for anybody in that area who needs to find gasoline and they can use that tool by the way, works for people nationally, too. appreciate you joining us today. >> my pleasure. >> patrick de haan of gas bud we jay gray is on the ground in victoria, texas, with what's going on there jay? >> reporter: hey, kelly, and it's starting to pick up here a bit. one of the extreme outer bands of this system is moving through so the wind is gusting, and the trees behind me dancing at times. rain has been steady and at times hard it's only going to intensify here we expect the worst of harvey overnight and the issue here is that system is going to linger it will stay over places like victoria for the next several

days, and the national weather service forecast is for 11 inches of rain hear in victoria. no way to prepare for that seen it rough in galveston the sea wall taking a beating from some of the waves as they intensify, an this is a massive storm. you can see from satellite imagery, and it's really something that as you look at it the it looks very ominous, and for many on the texas gulf coast it is ominous. it has moved now to a category three storm as we've been talking about. that's with winds from 111 to 129 miles per hour, so this is a major hurricane barreling down on the coast, and areas like this one, victoria, as they prepare to take a hit from harvey. >> jay, thank you so much. jay gray from nbc and victoria >> yeah. the fight of the century between floyd mayweather and conor mcgregor it's tomorrow betters aren't counting on a

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welcome back two individual million dollar bets were placed last night on floyd mayweather for tomorrow night's fight. might be a flight. >> that's whesantelli was >> it was a lot to put down to get very little bag, so what would a mcgregor upset mean to the bottom lines of the vegas casinos and their sports books we're joined for insight from jimmy bacaro who's the sports

marketing director welcome. >> thank you for having me >> so, people put $1 million down on the favorite, which means how much would they get if floyd mayweather wins? >> probably around five, win 200,000. 1 million wins 200,000 conversely on the other side, why we're getting so many tickets because you bet a little bit with macgregocgregor and wi. they laid $880,000 minus five and a half and that gathered them 16,000. so this i can tell you, this thipg is on steroids, believe me zbr. >> guy, better return than bonds. >> jimmy, that's what i wonder about about this point is there a way to characterize which side the smarter money is taking here? you have to have a lot of conviction to lay those high amounts on a fight like this,

which is inherently, at least in some level, unpredictable. >> it's very simple. it's all over macgregor r. historically, they liblg to bet underdogs in fights like this, but the smart money is all on mayweather that's where you'll see so many big bets on mayweather from the next 36 hour, but you never know like i said before, i booked a tyson douglas fight at 42-1, so anything can happen, but the smart money is on the favorite >> for kelly's benefit, douglas won that >> right, douglas, totally jimmy, i read this could be like the worst lost ever for kwacasi if somehow, macgregor wins is that true >> don't feel sorry for the casinos. we have a lot of money to begin with second of all, we have a long way to go. the hollyfield fought tyson, when he bit his ear, that was

probably the biggest disaster nevada had at that time. it won't be good, but it won't be the end o f the world >> how much do you think people would be lost? if mayweather trip, whatever, how much do you think would be paid out >> well, first of all, we'll need him to win the fight to make a healthy day here. another thing you've got to understand, the history of o the sports betting in nevada with the history of fights, how much we take on o, well, the record was set two years ago when mayweather fought pacquiao we'll run right through that probably be getting close to super bowl numbers it's an incredible number. rooting for mayweather trust me, everybody in nevada will be. but it won't be the end of the world. >> thank you for joining us. >> we'll all see what happens. homebuilders and energy companies are the most impacted by hurricane, but up next, we'll

take a look at some under the radar companies which are affected by harvey stay with us my experience with usaa has been excellent. they always refer to me as master sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today.

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welcome back not just oil and gas from homebuilders to investors to telecom, hurricane harvey

could affect a wide variety of investors. eric >> a full 300 companies in the s&p 500 have described a hurricane impact to their business in the past decade based on our review of quarterly earn transcripts within the dow 30, 22 companies have discussed effects the negative impacts run much broader. many sectors i want to go through a new. disney had to temporarily close amusement parks because of hurricane matthew. travelers and united het care have taken big losses on several thunderstororps. verizon had to spend $135 million on capital expenses after hurricane sandy knocked out ximt congresswomen due ponte on multiple occasions suffereded manufacturing outages at its plant in texas. 3m faced supply disruptions and raw material shortages because of hurricanes. nike, p&g and american express

banks like jpmorgan have taken massive hurricane related charges. exxon and chevron have a lot of facilities in the gulf region where the cost of damage can be enormous just these example, you can get a sense for how broad these effects can be b beyond people's homes, jobs and personal safety. >> you know, i'm surprised because a lot of times when you talk b about the rebuilding after a major storm, it actually focused on oh, can be a boom to gdp. but i didn't realize what you were saying about the negative effects on consumer spending longer term. >> exactly that's why people talk about a caterpillar or home depot. because if you're going to build back an dmi, you're going to go to places like that. for a lot of these other companies, that's a business disruption that doesn't get fixed later. they don't make up that revenue down the road. >> thank you guys, i mean, we said this earlier. 35 inches of rain. for a major city like houston,

you'd like to think that's the worse case it's not it's almost the opposite it's both. >> flooding! the national flood insurance program the $25 billion in the red. >> the good news for the markets is is it's happening over a weekend so by monday, you'll have a good idea >> hopefully less impact on people because of that >> stay safe, efrk thank you guys both. that does it for "closing bell." "fast money" begins now. "fast money" does begin right now. live from the nasdaq market side overlooking times square, i'm michelle caruso-cabrera in for melissa lee. tonight, hurricane harvey. picking up steam as it nears the coast of texas the latest details first though, we start with the markets. the dow and s&p taking off earlier today before losing their gains into the close the dow was up as much as 120 points and the comments that sparked the rally stop if you've heard this