now is the jeff built. who unbuilt the house jack built? >> or tried to >> remember all those digital commercials. thanks folks for watching "power lunch. "closing bell" starts right now. it's time for the "closing bell." i'm wilfred frost in san diego coming up an interview with the jp morgan and ceo jeremy dimon i'm david, cbs shares falling today after sexual misconduct allegations were leveled. the cbs board meet this afternoon and we will have the details. and i'm sara eisen faang under pressure facebook, amazon, netflix, google we'll have more on what it'll mean for investors "closing bell" starts right now.

just like wilf, criticizing my walk. welcome to "the closing bell." david is joining me on set today. lucky me and let's give you a quick market check the love affair with faang over. coming to an end, pausing at least right now. the pain continues after last week's earnings. the nasdaq composite down 0.25%. the dow down 0.3%. you've got groups that are higher today, which is offsetting some of the declines like energy, financials and materials. >> yeah, i mean faang is by far the biggest story of the day in terms, well in overall technology it's not just twitter down yet again after that very not well received earnings report friday. down another 8% this morning not this morning, i'm going to do that a lot, by the way. this afternoon, excuse me.

this being "closing bell," we only have one hour to go, right, until "the closing bell" but it's been a particularly poor day net flick down almost 5% you've got the rotation now. >> how much of it is crowding out very crowded positions, end of month kind of stuff, and how much of this is reassessing the growth after disappointments >> twitter did not help. it's a much smaller market cap the loss of market cap now at facebook is really astounding about $125 billion or so at this point from the highs and people are simply trying to understand what is the real growth we can expect there and what are we willing to pay for it let's get to our big interview for the day. he's sitting down exclusive with jp morgan's ceo jeremy dimon take it away

>> good afternoon to you both. jamie, thanks for having us again. let's kick off why we are specifically in san diego. you just kicked off your annual bus tour you visit branches and meet lots of employees what have you learned over the years? >> you meet people, clients, customers, employees, call centers. this one we do by bus, kind of off the beaten path. malibu, san diego, et cetera because these are both clients and employees, we do a town hall later. we learn a tremendous about. and we have a lot of fun on the bus in between some of these branches and branch managers say tell us what we need to know so we can run a better company for our clients >> and you've got a warm welcome

here, which i'm not sure how many chairman so far up the chain would get. is that something that you take a lot of positivity from >> look, i love our people this is the tenth anverse ra, which is why we're doing this particular state which is why we're heading up to seattle. they want to do a good job, they want happy customers i have to talk to the clients. we have to listen to our people because our people are the ones dealing it customers every single day >> you wouldn't have the footprint you have in california if not for it. but you also have been critical of those acquisitions you did during the crisis. >> where we really were in florida, we had a small presence, washington state

and they didn't have small business lendings here, so it's been a great things for those states and every community where wamoo was we now have invest banking, corporate banking. it's been great. the negative i've always talked about is we were punished a bit after the fact by the government for some of the things wamoo did. we're still moving forward >> you're one of the few banks still expanding its foot precipitate. is it the regulatory environment? >> it's the regulatory environment. they had made it clear they didn't want us to expand i don't know why it's 400 branches pretty much between washington, philly and others and we go to those town and we do lower, middle income housing and a lot of corporate

responsibility so it's good for the towns it doesn't at any incremental risk at all for open branches. so we want to go across the country and fill in the cities we're not in >> we had a 4% handle on gdp on friday do you congratulate the president on that number was he right to take a victory lap? >> competitive taxes, we needed competitive taxes. the way the american public should think about it, for 20 years we've been increasingly uncompetitive driving capital overseas i'm talking about small businesses if you sat down one day besmall businesses they'll tell you about the crippling bureaucratic paperwork litigation, and we've had less small business in america than any other recovery. this has accelerated the growth.

the reason it wasn't 40 is a lot of things we -- so i'm hopingw continue our policies and accelerate growth. and growth is good for all americans. >> is 4% sustainable >> i think we could do a lot better than 2% it was bad infrastructure, bad t taxation, excess regulation, we don't give kids the skills we need, we have an opioid crisis take bureaucracy, it takes 12 years to get permits to build a bridge that's already there and failing and it took eight years to put a man on the moon so the american public looks at this stuff and says that's what's holding us back, it's us. >> let's talk about the president's trade policies we talk about the u.s. economy being strong, but china's gdp

just came out with 6.7%. if that trade battle with china continues to escalate, who wins it ultimately? >> the business community is pretty much representative to the president that we agree with the issues raised by china the business community would have approached it differently to get mexico, canada and europe to get to a common front on the way it needs to be done. it needs to be fixed he's taken an approach i'm a little worried could create these negative outcomes. we've told the president that. i'm hoping his methods work. if you do $200 billion more, the auto tariffs, yeah i think it could offset some of the benefit we've had from the good things he's done. >> you've told the president you disagree with his tactics? what was his response? >> i would also tell the president his advisers told them, and i'm not going to name them, but they told them there

would be no retaliation and we said there absolutely would be, and they're wrong. so the fact is some of things were wrong i want him to succeed at having better trade i think nafta should be done they've been talking about this for a long time now. it should be done by now mexico is wonderful neighbor of ours and we should move on, do a deal with canada and focus on china. >> if we consider the news that came out of his meeting with john-clod last week that there is progress between the u.s. and the eu, does that suggest in the long-term he could be proven right, this could work out for the best >> he may. i don't know better than you i think there's been retaliation, and i think if we do it there'll be another predictable round of retaliation and an mountsing uncertainty and reducing investment and eventually slow down the gdp

we think there are just better ways to do it, but obviously we want him to finish a trade deal with china that finishes the important subjects non-tariff barriers and stuff like that. so those issues are all real they need to be resolved >> were you ever offered a job on his team and you question the advice he's getting, do you wish you'd taken it if you were offered it >> i'm not going to talk about conversations -- i'm very happy where i am i love my company, i love my job. >> i know you do just on the topic of the president very quickly, the president said in a press conference with the italian prime minister it would be okay to have a government shutdown, that related to the fact he wants to get funding for his border wall. what was your response to that >> i think it's been tried before and hadn't had good outcomes and hurts a lot of people who really have nothing to do with the process. i understand the president's

point, but that is not a way to be productive and conducive to growth >> let's talk about the fed and interest rates, jamie, if we may. the president made clear in an interview with cnbc a couple of weeks ago he'd prefer lower rates. he said, quote, i'm not thrilled because we go, and every time you go up they want to raise rates gwen i'm not happy about it, but at the same time i'm letting them do what they feel best did he go too far commenting on the policy >> if they're going up and they're going up gently -- if they're going up because the economy is strong, that's a very good thing it's very hard to look at interest rates and separate that as one factor and say it doesn't relate to how the economy is doing. >> when we look at the shape of the yield curve a lot of people are getting concerned it's

flattening >> that's 1 factor there are a lot of factors involved we have growth i personally think the ten year bond is going to be going up not down we've had suppression of rates for the better part of a decade around the world those thingss a are reversing in america it looks like it's accelerating as long as they're raising rates in that it's fine. >> it's been so tightly correlated with what the yield curve is doing how do you think about that? do you think the share price reaction to that is overdone >> what do interest rates alone do to our pnl.

i think there's overreaction to that banks are different. we don't take bets and interest rates. but if you think rates are going down in the ten year because the economy is weakening that's going to effect all banks. i just don't think that's what's happening out there. >> in terms of the equity market there's been some tech misses the last couple of weeks the nasdaq is down sharply again today. when you see those earnings numbers and you see the market reaction, does that to you suggest the equity market perhaps particularly the tech sector is bit overheated right now? >> not really. i think some of things are company specific and when your forecast in future changes a bit it's going to dramatically change the stock price.

if you think earnings are going to grow 5% or more, i look at the possibilities and probabilities, but the economy looks quite strong there are no potholes out there, lending has been been pristine, more people are going back to work, unemployment may hit a post war low at one point this year those are positives. there's always going to be some kind of problem, but that is not the problem today. >> sara and david, i'm just going to throw it back to you guys for one minute. it's very warm out here and i just need to get myself a glass of water give me one minute and just check in on the share price action and we will be back in just about a minute's time. >> you got it, wilf. yeah, i noticed jamie, dabbing his brow there it does get hot under the lights jp morgan shares for their part are up 6.3%.

interesting listening to jamie dimon discuss of course not necessarily saying we can get 4% gdp but certainly saying we can do better than 2 >> a hell of a lot better, i think was the quote. he framed it as a self-inflicted limitation towards growth, the fact it takes so long to get anything done, the bureaucracy, the regulatory burden and the fact that president trump's policies are addressing that and a competitive tax system he says that's why we should be doing a lot better, and we are and that's a big debate. >> talked about not any potholes outs there of course, that does raise that question of actual potholes. because infrastructure has not been something on the agendas yet or certainly something that's not advanced in terms of the things the trump administration originally seemed to be focused on >> let's get back out to wilfred

frost with jamie dimon to continue the conversation. >> we were just talking there about the equity market and whether perhaps things get overvalued do you think there's a point at which we're getting closer where we're due another significant pull back? we saw one in february, of course >> you've got to look at the underlying stock is there a chance the economy is strengthening for a couple years, absolutely. if that's true, then stock prices are justified if you think we'll have a recession tomorrow, no i don't think it's justified someone asked me in the town hall is there a recession, of course it looks like it's not 2019. so the economy seems to be strengthening. that's a good thing. >> recently we had the ceo of bbt on, kelly king, to talk about a bit about banking

dynamics do you welcome a bit of consolidation of the smaller banks below you or is it unfair? >> we always say they should do what they did. i'm totally sympathetic with that the regulators are looking at all the various rules. people point out one there were thousands and they weren't necessarily coordinated, well thought through. they should look at it and recalibrate it no one is asking for dodd/frank to be thrown out so we want them to do well it's not like us verse them and it never us. >> in terms of potential acquisitions, is there a sort of rationale why one of the u.s. investment banks would look to buy some of deutsche bank

particularly its u.s. investment bank >> i can't answer that question. there will be in the next ten years in my opinion new competitors in the investment banking world, including from china. i think in europe they're going to have consolidations, too. they have to change the regulation around banks so they can have a pan-european insurance system you know merging investment banks are a very complicated business >> so we talk about bank and tech if we go back to the broader economy quickly, what is the single biggest risk to the economy? is it the politics or fed or what. >> it's trade if the skirmish becomes more of a war. i don't want to scare the public but we've never had qe, never had reversal monetary transmission is

different. governments have borrowed too much debt, and people can panic when things change we tell you its changing, or it happens. it might have some effects people don't expect, and i think it is bad policies bad policies lead to bad outcomes what are you trying to accomplish, how are we going to get there and let's make sure we understand the effect of these policies the amount of intended consequences is staggering >> let's talk about your health care initiative. you bank a lot of health care companies yourself what has been their response to you for you kind of moving into their spaces at work >> somewhat unhappy. their stocks went down that day. we hired a great ceo i spoke to many of them, by the way. i said, no, we already buy insurance for 400,000 people and for jp morgan, and i want to do a better job and we're going to put more

brain power and capability to figure out how we can make you happier. we think together we have the right people and a long-term view and not profit seeking we can do what we're doing a lot better if we come up with some great stuff, we're going to share it with everybody i told all these companies help us do it you know some of these things need to be fixed don't act like we're enemy the enemy is we're now spending almost 20% of gdp on health care in america there's some of the best and some of the worst >> do you expect you'll lose any clients because of this process? >> i done expect so, but if it happens, so be it. this is an absolute critical issue, and all oaf this is a long-term view and we've been through the amount of money spent on fraud,

end of life, the misuse of drugs, chronic care problems obesity and smoking drive a tremendous amount of heart disease, depression, stroke, diabetes and we've got to get at this as a nation and we think together we might be able to make some progress. we're going to give it our best shot and be very patient i remind people of jeff bazos, he started with books and spent ten years getting books right. so we spend a bunch of time getting one piece of it right. >> he offered you a job and didn't he? >> he didn't offer me a job, but he was looking for a president after i was fired from citi, and we had a great lunch i made this decision i'd never wear a suit again, but it was just a bridge too far for me to move my family to seattle to

something i didn't understand. >> you're not wearing a suit today so hopefully it all comes together >> thank you and you're wearing chase blue. i hope if you're all from new york you have chase accounts, too. if you ever have a problem with chase you can call me directly >> this is "closing bell." cbs stock has been down sharply the last couple of days against allegatio allegations against the chairman and ceo les moonves. do you think there are stories like that to come from wall street or not? >> i think there's bad behavior anywhere, and i think it's important all companies try to root it out wherever it is if they have the right listening post up to hr. hr has got to listen and can't

always act like the company is right. as i asked my senior women, i say you all set the tone, make sure you're doing it right of course you worry in any big company when you come to a location that branch manager over there who's holding your job in their hands you may be afraid to use one of those hot lines. we always want to make sure people are trusted and not mistreated >> the only two remaining ceos of the big banks from bre-crisis times. do you think goldman sachs would have survived the crisis if not for him? >> i don't know. lloyd is a friend, a great leader and he did a great job taking that company through a really difficult time. >> you joked in a comment to me before you hope you see more of him going forward, just socially or -- >> we have a great time together, so i'm sure we'll continue to do that. >> in a statement when he

announced his retirement he said this about the timing of his departure. when things are going bad you don't leave, when things are going well you don't want to leave. by the way, that's why people sometimes stay too long. jamie, do you have the energy to take jp morgan through the next recession or would you rather stand down at the top? >> i agree with his statement mostly but i love this company, i love what i do. when i don't have the energy i should step down i think if you are on the playing field, you're the quarterback, you better put on the jersey and give it your all. the second you say i want to take ten minutes out or skip a game, you could be part of the team, you can't be the quarterback. i have the energy. it would be the right time it's up to the board, not up to me we have some outstanding leadership here, so we're totally comfortable there's a

recession, whether i'm hit by a bus or it takes place in five years or so. >> on that topic lloyd said david is ripe and ready and he's the right guy. is somebody below you ready today if necessary >> yeah, i think there's several. and more importantly the board thinks that. >> okay, fair enough have you got any advice for david solomon has he takes over the reigns at goldman? >> i'm sure he'll do great it's a big job the other thing is when you come out of one part of the company you should make sure you focus on the other part. goldman is chalk block with tal want when i worked at goldman in the summer of 1981 >> jamie, you love your country. you comment about it very often, and increasingly you talk much more about politics than perhaps

you did in the past. has it crossed your mind to run in 2020? >> no. people mention it, and i don't think i'm a natural politician i do think policy is so important, and i am a patriot. this conthy has the best hand ever dealt of any country in the world today. it should be growing faster. families back to work, wages going up it's a long list of problems we did to ourselves i do take it very seriously. and i think the business community has to do it job businesses coming in, the one thing they need to help them, the american public aren't going to buy that. if we try to focus on, we have immigration policy, tax policy, trade policy, innovation skills, getting kids whether it's high school, community college when they leave they have the skills to give them a job that's well

paying and there are tons of them i think when we fix these things >> do you think howard schultz would be a good candidate? >> i have to leave it up to howard it's a whole different thing and he's going to explore and figure out what makes sense for him, but i think he's been an exceptional leader >> i know you care a lot about the opinions of your family, your daughter in particular. >> obviously i talk to my wife about it, hi judy, and my daughters. i love what i do i've told them, if you said to me do nothing, i'd be like lost. i play stuff, i enjoy stuff, but i like what i do it isn't like i regret it every day i go to work there are things i do i regret, but for the most part i love what i do.

>> jamie, we thank you for your time today to talk to us and thank you for wearing your "closing bell" blue shirt as well the chairman and ceo of jp morgan guys >> the man loves what he does. we'll get back to you to talk about it a lot throughout the show >> do you have a chase account >> i do have a chase account but not because he told me i don't know if you can call him directly he wasn't offering his number, but i guess you can. highlight, classically optimistic about the u.s. economy, interest rates should go higher which should help the performance of jp morgan and the stock and the business and says there's a bit of overreaction to the yield curve of bank stocks the short-term are going up and that should help our profitability, was sort of

dimon's view not surprisingly. >> wilf did spend a decent amounts of the final parts of the interview on the idea of recession. the idea because that's all it really is. i heard five years in there i think from -- you would think that every board has a plan should that up fortunate event occur, but it is interesting to note that while blank fine is now going to retire dimon just going strong with no plans whatever, you heard him and seemingly no hobbies >> wouldn't know what to do if he didn't have to do anything i think is what he said. we're going to get jim kramer's take, very vocal and opinionated about the banks, and we're going to hit this market because tech stocks are selling off pretty hard as we head into the last half-hour of trade

here with the nasdaq near session lows in the meantime let's get a cnbc news update now. here's what's happening at this hour, everyone. firefighters reporting one of the northern california blazes is slowing down a bit, prompting them to lift some evacuation orders it applies to the area around redding. the wildfire has displaced 38,000 people from their homes and has killed six people. a minnesota prosecutor announcing he will not charge two police officers in connection with a deadly shooting of a black man in june. the county attorney says the 31-year-old fled from officers with a loaded handgun refusing to stop and show his hands merchandise. bill cosby's legal team is challenging a law that could classify him as a sexual predator they argue that it's

unconstitutional cosby is due to be sentenced in september on three counts of aggravated indecent assault. and talk about a fish story, that a great white a fisherman catching that great white shark. and they caught that 6 foot shark along with a lot of other smaller fish yesterday but the fissuremen did keep it releasing it back into the wild. i don't think i would be holding a great white by it's tail but at least it got released back into the wild. back to you guys >> thanks, sue herrera we've got about 29 minutes to go until the closing bell here. the nasdaq of course is the story today. down almost 1.5% coming up, though, shares of cbs also down today. this is the company's board. i think they started meeting around 12:30 or so but if we get to hear anything with what they're going to do,

we will give you any details of what's going on and set you up for what's going on. >> secretary of state mike pompeo, an interview you do not want to miss he'll be joining us to discuss the trump administration's new indo-pacific strategy. and whether it's aimed at keeping china's power in check plus as we told you mad money's jim kramer will be joining us. stick around we've got a lot coming for you on "the closing bell." we'll be right back.

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don't expect, and i think it is bad policiesch bad policies lead to bad outcomes. >> let's bring in jim kramer on his mad money set. >> hey, guy. how you doing? >> classic jamie dimon, pretty optimistic and also back up president trump's trade policy but the trade war is a risk. >> but you know what, he said something in just a quote that i was listening to and it was a great interview. his advisers said there wouldn't be retaliation about this kind of trade war, and we told him there would be, and they're wrong. now, the donald trump that we read about all the time and what he brands fake news, they will take this and they will say this is directly criticism of the president. and the president will take that as director criticism of himself. so this was actually a risky thing to say >> yeah, it's funny.

i thought the same thing i wondered the same thing, jim but it's -- it's not an unusual thing to say or to hear from a ceo of a multinational corporation, is it >> but we have an unusual president who takes these things very personally. i could see him turning to whatever advisor is left in izroom and just say can you believe -- after all the things i've done for dimon, he comes out and says i was wrong after all the victories we had, who is dimon to say this you know what, and that's the kind of thing that goes on in the country now. if i were dimon and this is comment that i would look back and say, man, maybe i shouldn't have said that maybe i shouldn't have said i think maybe of some of the things are ill advised, but he's got some victory >> i don't bant want to live in country like that.

this is america. >> this is a direct criticism of the president. he said the president's people were wrong what does that mean? otherwise everything was really co -- too much debt is not good, unwinding policies are difficult. he says those things i always feel reassured. but ayou know what, maybe that' dimon's job. he pays the lowest rate of anybody. if you moved over to vanguard you could get four times of what he's paying. so he's doing well >> he's doing really well. we did have a brief conversation of the yield curve you and i talked about it a bit this morning and they are up today. >> they looked great

it's too cheap jp morgan is too cheap is jamie dimon one of the best ceos in the country, yes is it an incredibly well run bank, yes. is all that matters the ten year, no and that's what he said. >> kind of got as far as we always do which is always nowhere. >> isn't that where they go for the water break? >> he addressed it >> no, they water broke it at the secession question >> you and i have talked about this he's an incredible ceo, but it's a long time. the world changes. he talked about being the quarterback and being ready to take the field, but there's no real names that we hear about, are there, in terms of secession

anytime soon >> no. and remember he did not start the company. this is not one of those things where you're manager for life. a lot of people would say you're not supposed to stay too long because what you do you discourage the people in their 40s and early 50s who will say you know what, by the time this guy retires i'll be 60 and not even considered to be the ceo. so in that sense that's what lloyd saw. lloyd was beginning to recognize he was losing a lot of people in their 60s. he didn't want the brain drain jamie's doing a great job. who can blame him? and shareholders want him to stay but i do think there's always that problem of very smart people saying he's never going to leave i'm going to go take a job at bbt after kelly king quits and

that kind of thing >> finally, jim, we asked about the trade risk the other risk he mentioned was the unwind of qe, this sort of grand experiment that we're going through with the federal reserve, something that's never been done before how much do you think about that as a risk for the overall system and the economy? >> i think that they're doing it wrong. i think they should be selling their treasuries, get out of that game, give us a bit more infliction they've refused to do that it would be remarkable what it would do for the banks, the liquidity of the system. it would be a true market with true price discovery but the fed hadn't wanted to do that he's going to figure out maybe we should sell these treasuries. i've got to ask both of you, how about me too, how about moonves, how about what dimon said, where are you guys coming outright

now? >> he did say he tells his executives, you guys set the tone and that there's bad behavior in every single industry and that probably includes wall street and you got to root it out >> that's what he thinks i'm asking you what you guys think. >> did want we discuss this morn something. >> yeah, but you got sara there and david, i heard the phone ring are you really going to look me in the eye and tell me you don't know what's happening right now? >> all i'll say is this, it's not even a tease, i'm a little surprised we haven't gotten any news it's been a few hours. i would have thought the board would have adjourned maybe they have. i don't have anything, jim i'll immediately text you. i know "mad money" is coming up. >> and how about the 7 foot

shark i caught mine was a foot longer and maybe 50 pounds heavier. that's news, david i was in the local paper >> i didn't even know you caught a shark. >> you should have seen the picture of him at a decommissioned oil rig. >> it was right at the time facebook blew up it was like the oil rig shook. >> we're glad you're back from the fishing adventure. >> no one's more glad than i am. i'll see you back here tomorrow morning. of course before then he's got another show to do, mad money tonight. 6:00 p.m. astern >> i would say on the me too thing, david, everyone we talked to, and we've interviewed a lot of people and they say in the interim while this investigation is ongoing les moonves should take a leave of absence and the

stock price is falling >> we should know it fairly soon, i think at least still to come, by the way, weir going to be talking about that board meeting, discussing those allegation of sexual misconduct against ceo les moonves, and we'll hopefully have some latest developments for you. at the very least we'll give you a number of potential options if i don't have the specifics over the commercial break to buy or sell?en it me with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. take prilosec otc and take control of heartburn. so you don't have to stash antacids here... here... or, here. kick your antacid habit with prilosec otc. one pill a day, 24 hours, zero heartburn.

it's time now for your business of the week how did the two founders turn what was once a side hustle into a half billion dollar business without take agdime of outside funding? we tell the story of this e-mail marketing giant this sunday on msnbc.

welcome back to "the closing bell." let's talk more about these markets, in particular this tech related sell-off our closing bell exchange for it day. we welcome chris johnson, matt cheslock, and rick santelli as always matt, the tech sell-off is getting extend from what we saw on an earnings related melt down from some stocks like facebook and twitter today. what does that tell you? is the tide turning for the group? >> i don't know if the tide is derning on the long-term, but these stocks were extended on the long side. i don't think anybody would argue about that it was a matter of when not if going forward if a company like facebook can return 20%, is that

a good enough level to get back to these numbers here. but right now you're seeing another hone it'sute of tech into some more plays that some upside potential, and that's why the market is probably not -- the dow hasn't reacted as violently as the nasdaq. >> growth to value, chris, as some who have been calling for it for years and it hasn't materialized are starting to point to in some of the rotations we've seen last week and today. >> over the short-term basis, i have to agree with matt, it's a bit of a pull back, a relief, if you will not a relief for rally but a relief for pull back one of the things i watch closely is the risk premium in the market relative to looking at the strength of the small cap. that's starting to lag here just like it did in the march pull back with the s&p 500. i think you're going to see

august is a seasonally soft month. it's not bad but it's gnat good. there's still some sectors out there where the rotations going to play out in a very good way, though >>, you know, chris, i understand why people may be having a hard time figuring out the multiples of fwiter or facebook but you talk growth to value or overextension, but alphabet trade at an all-time low everything seems to be getting thrown out regardless. >> exactly, david. there is a situation where there are a few stocks that are really tainting the water right now there are some low multiples when you look at the large cap technology when ulook at n viddia and some of these semiconductor companies that have been blown up, it's hard to know where the value is. that's where i look at the risk premium factor and say are

investors willing to put it to work and if the answer is yes you have to at least dilute them and say is the r is the stock technically strong, notably strong and if so you have to stay in that trend >> also some key central bank meetings and we're all still having this debate about how strong the economy is going to look after that 4.1% number in the second quarter >> i personally don't spend much time worrying about the u.s. economy. i do worry about things wilf was discussing with jamie. weigh in on the notion that qe and how we end up is an outcome wave got little research and history on banks didn't squawk much when they were the benefactors merchandise and i think the bank

of japan tonight is the one to pay closest attention to don't know how it's going to turn out don't know how they can mop up so much liquidity. and i continue to think the big story for 2018 is going to be some divergence. we've had the global expansion although the u.s. economy is galloping here and i think how that turns out and how the tol keepers of how it'll turn out are central banks, it's going to be fascinating to see how it ends up >> we will leave it there on that big question mark rick santelli, thank you nice to see all of you we've only got nine minutes to go before the closing bell, and

we are looking at a pretty big sell-off here. information technology by far the biggest loser. the russell which got hammered on friday is down 0.5% so pretty much in line with the other averages this time >> looks like we did get a little something out of cbs. let me take a quick look at it still ahead we've got more reaction to our exclusive interview with jp morgan ceo jamie dimon. plus we're going to hear about the new asia policy. with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay!

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welcome back to "closing bell." did want to share some news from cbs. of course, we've been telling you the board of directors at that company had a etmooing today scheduled for around 12:30. we do have some news from it they say they're in the process of selecting outside counsel to conduct an independent investigation wrard to the allegation of sexual misconduct by ceo les moonves they want to say no other action was taken at the board meeting and they do delay, this has been anticipated what had been scheduled their august 10th

meeting. i'm a little surprised and i think others would be too. you mentioned the many guests we had on today, predicting it would be appropriate to say at the very least he would be suspended. no action right now. that doesn't mean something won't be coming or we won't hear more this is very fluid situation, but this press release makes it clear that no action or other action other than the special counsel that they are in the process of selecting >> we're going to talk a lot about this in the next hour of "the closing bell. meantime cbs stock, though, near the lows down more than 4.5%. continuing that sell-off i ges on the uncertainty and turmoil that still could be coming here. up next we're going to come right back as well with the closing count down don't go away. you always pay your insurance on time.

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town on the floor of the new york stock exchange about to ring the closing bell here financials outperformed. the value stocks, there's the closing bell over on the nasdaq another different group ring that closing bell there it is. sara eisen is up next. welcome to "closing bell." i'm sara eisen in for kelly evans. let's take a look how we are closing out the day on wall street with declines across the board, nothing is hard hit, though, as the nasdaq composite, check it out, down 1.4, almost 1.5% there. and pretty much same with the

russell 2000 you did get some pockets of green with overall market. but technology and industrials today actually weighed on the overall market despite the up beat outlook from cal pitter cnbc's wilfred frost sitting down last hour with jp morgan's ceo jamie dimon who's on his annual bus tour. we'll bring you highlights from the interview and get reaction and david berman is here and chris from capital management. just in terms of the movers leading the dow today was merck, and twitter was the big lagger this tech sell-off, is really gaining some steam is that it was that the love affair with faang coming to an end >> you know if you look at some of these levels, facebook down

to where it was in may, it's very easy for it media and everyone to freak out about -- >> now you're not in the media anymore. >> i think from the overall perspective you have to ask the big question, are these technology companying going to be a bigger part or a smaller part of our lives for the next few years. yes, regulation might pea coming where and that gets to be a very interesting question and there's some noise out of washington even this morning what that might look like. from my perspective the path forward is for the economy and market overall >> but that doesn't tell me what i should pay for a share of facebook >> i'm not going to tell you that, but would you disagree with me? >> i wouldn't necessarily. but that doesn't mean i know who the winners or losers are going to be. i can start to wonder

particularly when it comes to facebook given so many questions we have still given their significant outlook for margins and growth rate because they are such a dominant player and provider >> i think that's fair but when you take in the totality of it, even our change in behavior personally the last two to three years, again i get back to the basic question, are you going to spend more time on these or less? proportionally overall just go on the subway, go on the street, what's everyone doing? they're not looking up they're looking at their phones. that's all they're doing >> chris, ewhat does it mean for the stocks are you altding, or shifting away >> certainly getting ready to add. i mean they've got 2 billion eyeballs my wife uses instagram even

more and absolutely agree people are continuing to use these social media stocks increasingly. and just think you just wait until you get your valuation levels that crow like and you buy them >> so you're getting close you said on facebook >> absolutely. >> what represents value for you, chris i heard people talk about the 170 level. interestingly the stock did bounce late in the session today. should note that >> i think anything below 20, 19 times earnings, you know, the markets at 15.5, 16, so you're pretty close and that's pretty good for a stock that's growing like that i think a lot of the sell-off is do to the tear reasons of bench marks. they're all tied in to these bench marks. they see one hiccup and the next moment they say i've got to go i think you take advantage of other people's mistakes. facebook is really getting into my wheel house at this point >> that's an interesting point,

the tyranny of bench marks across the individual sectors and s&p that have beat their earnings guidance, it is a pretty substantial number. that's the market overall. so i'm actually getting pretty optimistic especially when you factor in gdp growth about where things are headed overall. these numbers are pretty incredible >> one stock that did not bounce towards the inend of the session was cbs. nag in fact, we got news i think right before the close, the board announcing they're going to select an outside counsel i think it's perhaps what's missing from this statement more than what was in it that has people's attention, which is no other action was taken on the matter let's bring in julia boorstin.

i know she has more as well on what is a rapidly developing story. they met for a few hours today and i know there were a many people who thought perhaps they'd see some announcement regarding mr. moonves' future. nothing at all >> there's been a lot of speculation tat the board could ask moonves to take a leave of absence, to step back during the process of vis investigation or he could decide himself to either take a leave or even potentially resign, which is something we have seen other ceos do which in similar situations but the board showing it still supports moonves to run the company through this no changes, no indication of any secession plans depending on what happens of the findings of this investigation and sounds like they're going to try to make it business as usual while the investigation happens. cbs earnings after the bell on

thursday, that's an earnings call that's traditionally led by moonves talking himself about the company and its trajectory so it'll be very interesting to see what happens on thursday afternoon. >> yeah, i mean it's -- a distraction is putting it mildly, julia. and it's not as though we aren't going to continue to cover it. there's always the larger story here of what is next but right now you have to wonder, okay, the investigation begins, what will they find? how long will other journalists be digging around as well and questions whether he has the moral authority to lead the company at this point. and, you know, it's surprising, i guess is what i'm trying to say, julia >> it is surprising. it's surprising and also it's interesting here that the board has talked about this outside counsel that's going to be conducting independent investigations they've officially announced the investigation into moonves but we've reported that we expect there to be an investigation into the broader

culture at cbs and whether there is a culture that accepts a certain level of sexual harassment and so it'll be real interesting to see if they come out with a statement about this broader investigation that they're planning to do or whether they'll sort of wrap it all into the same investigation into moonves. but, yes, i think distracting. you have to wonder what kind of toll this will take on people running that company below moonves. and also how many other people could have their positions at risk who are named in that new yorker article >> yeah, it's a weird statement, julia. they don't even say what the investigation is about in the actual statement they just say their outside counsel is conducting an independent investigation. if you were just coming to the story you wouldn't even know exactly what they were looking into >> it seems they didn't want to put it into writing perhaps. >> my question, david, is in the larger picture of this battle cbs was already in, a legal

battle with sheri redstone, does it speed up those chances or put it on hold how as an investor do you think about that big picture >> it has been on hold pending the litigation between those two companies and scheduled to take place in october it's unclear whether or not that will still take place. as of now it seems to. i think there's a belief if moonves is still motivated to put these two companies together, which i believe is still the case, this perhaps would give her an opening to do that she was part of this board meeting today. it's 14 directors, she's one voice. but she is the controlling shareholder of this company, and yet we got this statement. >> and speaking of share holders in the company, i think it's worth noting on something we reported just a couple of minutes ago that there was a shareholder meeting of cbs

shareholders scheduled for august 10th, where the question of the control of cbs was going to be the focus. sheri redstone says that moonves does not have that right, and there's this legal battle and that's headed to court in the fall but this august 10th meeting has been delayed i think that indicates that battle is going to take a back seat at least for a little bit at least beyond august 10th it's going to take a back seat as this investigation gets under way. it'll make sense the board will want to delay that meeting while they figure out what's going out here >> obviously there's a great deal of loyalty in the company to mr. moonves more reporting to be done, i think it's nar to say. >> all right, we're glad to have you and julia. meantime jp morgan ceo jamie dimon talking about interest

rates and the stock market in particular wilfred frost back with the exclusive highlights of his chat >> yes, indeed, a wide ranging conversation with the chairman and ceo of jp morgan i asked mr. dimon whether or not he thought the fed was hiking rates too fast >> i personally think the ten-year bond is going to be going up not down. like i said for good reasons with an inflation of 2% would be 4% so we've had a suppression of rates for the better part of a decade around the world. those things are reverse, but so far to good effect, which is global growth is going to be as strong as it's been for a long period of time in america it looks like it's accelerating >> the more i think about your share price and for all the big banks it's been so tightly correlated with what the yield curve is doing is that correlation overdone

whether we get a slightly flat or slightly steeper price? >> what do interest rates alen to our nnr, but i think it's an overreaction to that we're going to do quite well as a bank regardless. we don't take bets on interest rates. but if you think rates are going down, the ten year because the economy is weakening, obviously that's going to effect all banks. i just think that's not what's happening out there. >> iptern terms of the equity mt there's been some misses the nasdaq is sharply down again today. when you see those earnings numbers and you see the market reaction, does that to you suggest the equity market, perhaps particularly the tech sector a bit overheated right snow. >> not really. i think some of those things are company specific when you forecast is future

change a little bit it's going to dramatically change your stock price. if you think we're going to have a goodchy the next couple of years that's a very likely outcome. i look at the possibilities and probabilities, but the economy looks quite strong lending has been pristine, capital expenditure is going up, more people going back to work unemployment may hit a post-war low this year. those are positives. there's always going to be some kind of problem, but that is not the problem today. >> do you think there's a opponent in which we're getting closer where we're due another significant pull back? >> you've got to look at the underlying stuff so is there a chance the economy is strengthening for a couple years? absolutely if that's true, then stock prices are justified if you think we'll have a recession tomorrow, no they're

not justified, but i don't know. there will be one -- someone asked me at a town hall, is there a recession? of course. and just don't know if it was 2020, 2021, 2022, but it looks like it's not 2019 >> important comments there for the company's share price, that he's not concerned the yield curve is flattening in its right. the biggest risk is if the current trade skirmishes, his word, escalate into full-blown trade wars you had strong words there for a couple of the president's advisers he said two in particular who had had been telling the president there wouldn't be retaliation and he would not be drawn whether or not he was offered a role into the team on his health care initiative he said that some of the health care ceos that jp morgan works with had complained to him about

moving into that but he said if they considered taking their business elsewhere he said so be it he said the team below him would be ready to take over today if necessary. of course, that's not an eventuallity we expect time soon >> did you get the sense he was deliberately trying to take a shot at the president's advisers on that comment? >> i think definitively. and i think it was a balance overall where he was congratulating the president on the 4% gdp growth rate and i think the thing that was not balanced with was criticizing the president's advisers he wept after the president's advisers as opposed to the president himself. of course we all know the sorts of reaction the president tends

to give when he's criticized directly >> dennis, he also did focus on the unwind so to speak of the qe >> it's been ten years since the financial crisis remember the summer of 2008. you have to at least say in the summer of 2018 it ain't going too bad. so if we look at the rate of, you know, either over heating or under shooting, at least where we are right now somehow by luck, by chance, by design the fed hasn't messed it up-to-date. and you have to say with the economy accelerating maybe they can actually pull out of their great intervention in a way that isn't harmful to the economy i'm more hopeful, i guess, than i thought i might have been a little while ago on that >> because of economic growth being what it is >> yeah, would you agree

>> well, 4%, i haven't seen that in a few years >> that's pretty good. my biggest concern for many, many years we were building up a great inflation capacity that just one day would be unleashed. and so far we just have not seen it yet, and maybe the growth will help push out of those of possibilities even more. >> dennis, thank you of course wilfred frost, thanks to you usually in this chair. and chris thank you as well. he wears a tie, i know he looks good either way the future of cbs is what we're going to discuss who could secede ceo les moonves, if in fact which of course is not the case yet, if he's forced to leave over sexual misconduct allegations and then we'll have an exclusive interview with the secretary of state mike pompeo on how the u.s. is fighting back

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shares of cbs closed lower again today. this as the board of the company

just announced its in the process of selecting an outside counsel to conduct an investigation of misconduct allegations against les moonves. let's bring in the founder of wondry for more. thanks for joining us. some were perhaps surprised we did want see an announcement saying that mr. moonves was step aside for a period of time while the investigation was ongoing. give me your reaction to this news that we got that they are looking into the matter but he will remain as ceo >> i was surprised as well i have to say obviously the director as representative of the shareholder and you see them acting quickly versus seeing the results of the investigation before they decide to put mr. moonves on leave i have to say like many people i was surprised. >> a little surprising, yeah what happens to a company when

you have the ceo in this position from your perspective as having led organizations, does work come to a halt, are there a lot more questions, is it dill tearious to the day to day management i think there's a huge destruction of management. i think the board ought to be investigating more broadly the culture. the culture that according to the new yorker article allowed for this kind of behavior to lingr ftolia linger for so many years and different places in the organization >> what about the board? it's obviously a big board it's too big of a board. but no stated secession plan the fact that in their comments earlier they said that they were going to do this investigation, but they backed moonves or management when it comes to the broader fight that the company is involved in right now with the parent, with sheri redstone

in terms of merging the companies. is there a conflict there? are there going to be questions about governance >> i think they're caught between a rock and a hard place because these are allegations about a very successful publicly traded media company on the one hand you have the obligations to their shareholders and i believe media companies should subject themselves when it comes to these allegations to a higher degree of standard when you compare what's happening here to what about at uber how long ago and how long for the uber board to respond and how much they had to overcompensate eventually for what they didn't do in time you have to remember uber the allegations against them were substantially more troublesome

but i do believe that media companies because of the very specific place it has in building trust with the viewers and their tal want and their shareholders and stakeholders and they need to subject themselves to a higher standard. >> thank you for the perspective. former fox international -- i guess if you're an employee you'revy very much in a holding pattern. when we come back much more of wilfred's exclusive interview with ceo jamie dimon plus get some reaction from former wells fargo ceo tick covosvich. but first secretary pompeo discusses how the dispute with china and european allies could impact foreign ratnselio an exclusive interview with the

secretary of state coming up ♪ come on. come on, squirt. (dog barking) whatever your financial goals are, a u.s. bank wealth management advisor can help make them a reality. talk to one today. u.s. bank - the power of possible.

what do advisors look for don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. the white house has been taking aim at china's aggressive plan to spread its economic influence in asia and far beyond just sat down with secretary of state mike pompeo to get details on a new strategy that's announced today. >> hey there, david. thanks so much yes, mike pompeo has had title of secretary of state. but today he made a major economic speech where he

announced new initiatives designed to incentivize the sector in the endo pacific region we talked about why they're doing that and why he made those announcements. but first i started out by asking about president trump's announcement earlier today during his press confidential with the prime minister of italy about his willingness to sit down with the leader of iran with no preconditions. i asked mike pompeo if he was onboard with that. >> the president wants to meet with folks to solve problems if the iranians demonstrate a commitment to making fundamental changes in how they treat their own people, reduce their maligned behavior, can agree that it's worth while to enter into a nuclear agreement that actually prevents proliferation then the president said he's prepared to sit down and have a conversation with him. >> there were reports last wook that they have rebuffed numerous requests from the president. is that true in. >> i'm not going to discuss

private conversations that may have been had or may not have been had >> are you happy about that, is that a good thing the is that going to help bring them to the table? >> what we're looking for is not for theerally to collapse or anything else for that matter. you can't fight with iraqi militias that's not behavior that's acceptable from iran those are the changes we're looking for and we're hoping the iranian regime will see it that way as well and change their behavior >> you announced several initiatives today. you described it as a new era. why? why are you doing this >> it's an important region. it's been an important region for a while, but the trump administration is taking this incredibly seriously and we're doing it in a way

that's very consistent with this administration we want private industry with it the assistance of the united states government understanding we're going to support this effort we're going to have private industry go in and when american business come to these countries they'll thrive we'll have contracts that are open and transparent, form real partnerships in these countries and we'll benefit america for sure but benefit each of the nations in the endo pacific by engaging in this way >> when you read thek descriptions, they say this a counter to one belt, one road. this is the massive infrastructure spending plan that china is doing in numerous countries throughout asia and even into europe is this an answer to one belt, one road, what you announced today? >> we're convinced that american engagement and endo pacific benefits all the nations in that region we want it to be free, we want it to be open. we're not looking for dominance. we're looking for partnerships

others choose to behave differently. we want these to be commercially viable projects that benefits the entire region and the world. >> there's a reason why some of these countries, though, like to get involved with one belt one road those contracts are not tharan transparent, state directed. other countries like that. they don't want transparency how do you convince those countries this is better option, that the way the united states does things is a better option >> look, i think some of the countries that engage in that find themselves in a place hoir not happy about. the way you convince them is that you demonstrate over the course of history, over even the near term and medium term the developer relationships with the

united states, that having transparency actually turns out to be better for the leadership and for the people in each of these countries. i'm convinced that history supports that theory, and i'm also convinced that the vast majority of the countries of the endo pacific will agree with that >> the trance pacific partnership probably wouldn't have happened regardless of who won. the left and the right seems to hate it. everyone's against free trade these days it seems. my colleagues and this interview is going to air there in a few hours when they wake up. they said if you really want to have it, the trance pacific partnership would be the way to do it. what do you say to them in. >> well, the right mechanism is to be determined, but president trump wants free trade he suggested there's no free traders left president trump is an ard want free trader. zero tariff, zero subsidies, zero barriers.

he's looking pto balance these relationships. more likely it will be a series of bilateral arrangements and they'll get the outcome that president trump is demanding he's simply looking for fair and open and reciprocal trade. and when we get that, we'll have trade that'll benefit the united states as well >> is this making it harder? >> this methodology is leading to increased economic opportunity here in the united states of america. that's always a benefit. >> one of the countries that's really gorged on one belt one road is pakistan so much so they've taken on all kinds of debt. they might actually have to go to the international fund for the bail out because they've take on so much chinese debt it's funded by taxpayer dollars, many other countries as well if they go to the imf for a bail

out, there's a chance u.s. company dollars are going to go towards that >> two thoughts. first there's new leadership in pakistan, and second make no mistake, we will be watching what the imf does. there's no rationale for imf tax dollars and associated with that american dollars with part of the imf fundsing, for those to go to bail out chinese bond holders or china itself >> north korea is part of theenda pacific region numerous times during all of the events in helsinki -- excuse me, singapore. both you and the president and other world leaders referred to the opening of the u.n. economy. has kim jong-un ever expressed more desire to have more market forces is he interested in changing that economy in a way that is

fundamental? >> yes we've spoken to him about a brighter future for north korea. we've spoken to him about the importance of allowing private dollars to come in not just dollars from the united states, although i'm confident there will be americans who will want to invest in a an open and rules based north korea. but japanese and south koreans too will want to be part of the economic opportunity there is in north korea. we told chairman kim if we can denuclearize your country there is a brighter future for the north korean people. we're convinced he too shares that understanding, there has to be -- in fact he's directed better economic times for his people >> does he have market forces at all? >> we talk to him how it is you grow an economy, that you grow an economy with private rules based system and private investments. >> as to how to actually incentivize the private sector

to go into the endo pacific region a number of the programs that were announced today were funds hundreds of millions of dollars that would push towards the energy sector, internet freedom and also exports as well and there's legislation moving through congress the secretary of sfat is eager to see get through the senate that would allow for almost $60 billion worth of guarantees that would go into place to help incentivize u.s. sector investment in that part of the world. back to you. >> tpp comes up, we hear about it so haunch of what might have been a key weapon in our overall fight. anything to add there in terms of his view of that potential trade agreement? >> you heard exactly he's very focused on bilaterals instead of multilaterals and like we've talked about, you

and i, david, whether it was hillary clinton ore president trump both of them were against tpp. sometimes when you look back at some of the campaigning on the democratic side it seems they were even more against tpp than we saw necessarily on the republican establishment side. speaking to my colleagues in asia they certainly are convinced it would have been a good idea if it could have been done here. >> michelle, thank you so much let's take a look now at how we finished the day up an wall street right across the screen to start the week an extension of what we saw friday which was heavy technology related sell-off. the faang names all got beaten down on top of in some cases the double digit declines we saw for the likes of facebook, and even tweter got hammered again. nasdaq down 1.4% on the day. the rest of the major averages

saw about half or a little more declines overall let's get a news update now. here's what's happening at this hour, everyone, firefighters are hoping cooler temperatures today will help them battle the northern california wildfires those blazes have killed eight people and burned more than 200,000 acres. attorney general jeff sessions anonlsing a special task force responsible for ensuring religious liberty the goal is to protect the rights of religious groups even when their believes are at odds with government regulation a taxi strike. drivers are protesting online ride hailing services like uber in both madrid and barcelona they say it is harming their businesses and the philippines turning luxury vehicles from lamborghinis to portias into twisted metal. the country is destroying millions of dollars of illegal

imported autos to deter that smuggling. that's the news update at this hour david, i'll send it back to you. >> wow, there are a lot of auto aficionados that would not be happy with those pictures. >> absolutely. but they were illegally brought in so that's what happens. up next more of wilfred frost exclusive interview with ceo of jp morgan and talk about how the trade concerns could offset a lot of the economic data we've been getting lately plus american express shares lower on the day on the report it didn't notify clients about a hike in currency conversion rates. wel ok a'llot the potential fall outs later on "the closing bell." - i love my grandma.

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streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. jp morgan chase ceo jamie dimon sitting down with our wilfred frost. here's what he had to say when asked about president trump's approach with trade with china >> the business community is pretty much represent positive to the president that we agree with a lot of the issues raised on china the business community would have approached it differently which was to get canada, japan,

mexico and europe to get to a common front it needs to be fixed, it wants to be fixed. he's tagen approach i'm a little worried could create these negative outcomes. we've told the president that. i'm hoping his methods work. if you do a billion dollars more or the auto tariffs i think it could offset the good things we've done >> what was his response >> i would also tell the president two of his advisers told him there would be no retaliation and we said there absolutely would be, and they were wrong several people said there would be effect on consumer spending or inflagds, ation, and they're. i want to him to succeed at having better trade. i think nafta should be done they've been talking about this for a long time. mexico is a wonderful neighbor of ours. and we should move on, do a deal

with canada and then focus on china. >> clearly you've said you disagree with his tactics, but if we consider the news that came out of his meeting with joh john-claude does that suggest there could be -- do you criticize his advisers for giving him advice on tactics >> i think there's been retaliation. and i think if we do it there'll be a predictable round of retaliation and mounting uncertaintiy and reduce investment and eventually slow down the gdp and of course no one wants that. >> joining us to discuss that very point is the former chairman and ceo of wells fargo and bill cohen, authf of "why wall street matters. nice to see you both dick, this idea that all the progress president trump is making on the economy leadingtuse the fastest growth rate in years could be hit as

jamie dimon says as the skirmish becomes a little bit worse and he goes through with the threatened $200 billion for china and the auto tariffs do you agree with that and how much of the economy is alt risk? >> i do agree. i think the only thing that can stop our strong economic growth is what i called unforced errors i think the president is on a path of unforced errors. i don't know anyone who thinks tariffs are the answer on this car companies don't want foreign tariffs on automobiles we know that there's 190,000 steel and aluminum jobs that he's trying to protect yet there are 6 million jobs who buy aluminum and steel, and every day in the paper their raising their prices so substantively he's on the

wrong path tackticately, maybe this is tactic to get free and fair trade. time will tell if it's a tack tack that works. but substantively he's on the wrong path >> bill, we did hear him say he presented his opinion, the president presented his opinion and his sad visors said they were wrong, and do the bankers have a voice in the trump administration with gary cohn no longer there >> i think they do have a voice. he's not just hearing this from bankers. as i've said the car companies have talked to him, the aluminum companies, the ones he's trying to protect have talked to them if you look at his history and the art of the deal and so on, it's not unusual i him to take a tactic like this so again, it wouldn't be my way

of doing it. and i think he has to understand politics no leader of another country want to look like he's a loser trump always has to look like he's a winner, and that's the problem. >> i want to bring bill into the conversation as well, get your thoughts on that bill >> look, i mean, yes wall street will have a voice in this administration steve mnuchin a former goldman banker, private equity guy, hedge fund guy larry kudlow, a former banker economist at a wall street bank. so they're obviously going to listen to the jamie dimons of the world. that doesn't mean they're going to follow his advice, and it's quite clear from what jamie said they're not following his tactical advice. you just don't know whether these unusual tactics the president is employing will

result in the outcome that's best for the american people so far along the way it doesn't look particularly like the right tactic to be using you don't want to have all this talk of retaliation. jamie dimon is absolutely right. the quid pro quo is going to ratchet it up. and no leader wants to look like they're losing face in a battle with the president of the united states so i don't think gary cohn's absence from the scene reduces the access bankers on wall street have, but that doesn't mean donald trump is going to listen to them >> jim kramer raised the possibility or at least the risk of criticizing the president because you open yourself up to potentially a negative tweet or even more. is that a real threat do you think when you at least speak out, and it was a very mild criticism from jamie dimon, but i guess it was criticism nonetheless. >> he's used much harsher language in the past

look, jp morgan chase, david, is juggernaut right now i mean their first two quarters profit had been $17 billion net income they are on track to make 34, $35 billion of net income. last year they made record profits of 25, $26 billion so it's great to be jamie dimon. he looks great, he sounded great, he sounded enthusiastic i mean, you can't ask for a better series of events going on relate today the jp morgan chase business so why take on donald trump? why get yourself in the cross hair of his tweet storm or anything else he might want to do why not just sort of lay low and play the game and your stock price is through the roof, his profits are through the roof god bless him, he's doing everything he could possibly do right at the moment. >> guys, thank you well, american express is

reportedly in hot water with some of its business clients causing the stock to fall today. it was down almost 3%. we're going to give you the details behind that move next. need a change of scenery? the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done.

shares of american express falling today. on reports it raised currency conversion rates for business clients without telling them

>> these revelations come from a new wall street journal story. this division allows small and medium sized businesses to send and receive foreign payments in currencies amex generates revenue by taking a cut from each transaction. the higher the conversion rate, the bigger amex's margins on that particular transaction, that division is said to have raised fees on foreign exchange transactions without their customers knowing. the story is based on conversations with current and former employees, who spoke to the journal on the condition of anonymity. amex said it would be conducting a review with an external party in order to determine whether all their standards are being met. the company says it believes their transactions were completed and reported in a fair and transparent manner at the rates the customers authorized, this business accounted for less

than half of 1 percentage point of amex's overal revenue, still shares are down nearly 3% today, guys >> thank you, lesscy otaboming up, details out anher company warning of the impact of tariffs on its bottom line no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. (indistthat was awful.tering) why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo!

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earnings alert on ak steel >> 10% drop in the stock price we have revenues in line at 1.7 billion. the street was looking for 20 cents, no eps guidance, and also, this miss, analysts are reading this as the tariff impact not being positive.

remember, domestic companies should benefit from that tariff on imported steal, right now we're not seeing evidence of it. perhaps more color there >> jackie, thank you >> we have p&g in the morning 37. >> i won't have to talk at all with p&g >> fast money begins right now fast money starts right now. investors punched in the gut facebook and netflix entering a bear market. amazon and google following today. inching toward correction territory. the nasdaq dropping more than a percent today for the third session in a