>> the michael mcgee from bloomberg radio and television since the statement was released i think it shows that investors think another rate cut is coming this year. on their behalf, let me ask, what is going to guide fed culture? should they watch going forward, what's the fed's reaction now? through the data, all the events going on around the world, evolving geopolitical events, dploebl growth, trade policy uncertainty, most importantly the performance of the u.s.

economy. we'll be looking for things affecting the outlook of the u.s. economy, particularly as it relates to zblrchlts all those things in principle can affect the achievement of our goals it's an unusual situation because you know the u.s. economy itself, the largest part of it, the consumer part of it, is in strong shape the manufacturing part, less so. overall you see an economy that generally forecast shows growth similar to our own forecast coming in at about 2%. significant risks to that outlook from not just the geopolitical events but slowing global growth. we'll be looking at all of that and also financial market conditions and how they are affecting the outlook. i can't -- it is a challenging

time i admit it we're not on a preset course we'll be making decisions meeting by meeting as we see this and we'll try to be as trance parent as we can, as we go.sparent as we can, as we go >> with the rate cut today and modest adjustment coming down the road, do you worry about lessening the fed's fire power should there be a recession? is there any scenario in which you envision rates shifting lower into negative territory, and are there any other tools you can use before having to go there? thank thanks. >> you know, in terms of fire paragraph, i think the general principle, as i mentioned earlier, is it can be a mistake to try to hold on to your fire power until a downturn gains

momentum and so as a fair amount of research that would show that that's the case. now i think that principle needs to be applied carefully to the situation at hand. what we believe we're facing here, what we think we're facing here is a situation which can be addressed and should be addressed with moderate adjustments to the federal funds rate as i mentioned, we are watching carefully to see whether that is the case if, in fact, the economy weakens more, then we're prepared to be aggressive and will do so if it turns out to be appropriate. we chose to do aggressive forward guidance, the two unconventional monetary policy tools we used extensively. we feel they worked very well.

we did not use negative rates. i think if we were to find ourselves at some future date again at the effective lower -- not something we are expecting, then i think we would look at use i using large-scale asset purchases and forward guidance i do not think we would be looking at using negative rates. i don't think those would be at the top of our list. we are in the middle of a monetary policy review where we're looking through all of these questions about the larger run framework, strategy, tools and communications and we expect that to be completed some time around the middle of next year. >> don lee with the l.a. times how much to what extent will it offset the negative effects of the trade uncertainty and

tepgss >> so in terms of how our rate cuts will affect the real economy, first we think monetary policy works with long and variable lags. the effects will be felt overtime we think it will reduce interest burden for borrowers and other things supports purchases of those. i also think there's a confidence channel turn up when financial conditions become more accommodating. monetary policy works. it isn't precisely the right tool for every sing le economy

it broadly works and we'll use the tool we have it's very hard to say. it's tough to say. we'll use our tools to offset negative that's the job. >> are you worried that the low interest rates are adding to or decree at a bubble of consumer and corporate debt that could make it more difficult for specialty consumers to recover from the next recession or survive the next recession?

the household sector as an afgregate matter is in very good shape. it's studied a lot and the situation there is that the level of debt relative to gdp in the business sector is at a high level. however, so is the business sector

during a long cycle there aren't downturns. now into our 11th year, our view still is that that's a real issue. what it really represents is potential amplifier of economic downturn it does not have the makings of anything or itself create a shot it's more of an amplifier. we take it seriously, though it's a subject of study and work we're trying to keep on top of it. >> thank you, chairman powell.

there's a sense of people that the economy is actually starting to slow now. so is the economy over the next year between now and next year, do you think gdp growth will hold steady? how do you see the economy evolving over the next year? i think that's widely shared among forecasters. it's that dploebl growth will have an affect less so than any

other economy. still there's a sector of the economy. apparently it has an affect the job of monetary policy is to adjust to ensure downside risks but also to support the economy in light of the existing weakness that we do see. we don't see a recession or forecasting a recession. >> we're hearing the bond market signaling recession. so that signal is not pertinent

to you >> it's not -- there's no one thing that is dispositive among all financial yield curve is something we follow carefully. just to talk about current situation, long-term rates move down a whole lot and retrace generally material changes that are sustained for a period of time why are long-term rates low? there can be a signal for sure there's a large quantity of

negative and very low yielding sovereign debt inevitably exerting pressure on u.s. rates. nevertheless that is a signal of weak global growth that would affect us. we're not going to be dismissive about the yield curve. on the committee there's a range of views, some who are very focused on the yield curve, others not so much from our perspective, you watch it carefully and you need to ask why that is and how long it's sustained. you mentioned trade policy being a complex, ongoing discussion.

what is your rule for stopping as far as interest rate cuts go? you referred to this as a mid-cycle adjustment the median dot suggests no m cu. if we get continued back and forth between the u.s. and china, trade policy remains heightened at what point do you say i think we've cut enough, we stopped now? secondly as leader of this institution, have you felt a need to boost employee morale at a time when the president is constantly criticizing the fed >> i would love to be able to articulate a straightforward stopping role. it will literally be when we think we've done enough. our eyes are open. we're watching the situation.

if you look at things in the economy, i see the high value because we are really reaching this positive economy is reaching communities that haven't been reached in a long time i think we're watching carefully and there will come a time, a suspect, when we think we've done enough. be inning data and evolving situation and that's what's going to guide our -- guide us

on the path. we're very unified, feel like we're doing best job we can, serving the american people. >> it's been reported that the cfpb is investigating a bank of america for opening unauthorized accounts i'm wondering if the fed is also investigating this and if you're concerned that these banks are too big to manage. >> i saw the headline like this morning, during the preparation and everything i will say about wells fargo, there were quite wide breakdowns in risk management, which resulted in mistreatment of consumers that we know was quite harmful to the consumers and to the image of the institution i have no idea whether that's what happened at bank of america. i really don't know, standing here today.

>> steve beckner for npr, fr freelance. the fed and your central banks have been sort of exploring the far reaches of maes possible for monetary policy. even going so far as to make rates negative with mexed results. not to mention trade policy are pursuing their own separate courses. do you have consider limitations of monetary policy, should you be more explicit about what monetary policy can and cannot do in this environment

we try to be clear about that. i think our job is to use our tools as best we can to achieve -- you know, to do the jobs that congress has assigned us, that's a real job. advice about how to do their job, we keep that at a high level, i think at a high level, yes, i would say -- i've said before that it's fiscal policy that's more powerful and has much more to do with fiscal policy can do those things that will increase the longer run growth weight rate labor participation and the skills and aptitudes of workers all comes from the private sector but more from the things that can be done with fiscal

policy we can't really affect the growth rate of the united states it's not a function of monetary policy but other things. i try to be clear about that fiscal authorities will do what they deem appropriate. >> mr. trump has been a very vocal critic of you and your colleagues, recently calling you bone heads and just now has called you a terrible communicator how do you respond to these criticisms and any regrets to have this many press conferences? >> i don't i will say i continue

to believe in the independence of the federal reserve has served the public well over time and i assure you that my colleagues and i will continue to conduct monetary policy without regard to politica considerations we're going to use our best judgment based on facts, evidence and objective analysis pursuing our goals that's what i have to say on it. as you saw with bond yoelds up until the beginning of this month there's been demand for treasuries and that was partly to blame for liquidity crunch we saw this week. does the fed have concerns over the impacts of a global glut for u.s. debt? is that a conversation you have with treasury secretary mnuchin about the proper way to address some of the challenges down the road with that type of heavy

interest globally? >> not really. how much to spend, how big the deficits are, how to finance it. and none that have really calls for advice from the fed. we take fiscal policy pretty much as exogenous to our work. that doesn't stop us from time to time from saying we think it's important that the u.s. fiscal picture return to a sustainable footing. right now it's not that's been the case for a long time we limit ourselves to high-level statements like that. >> is there any risk to the united states having much higher

interest rates or any risk to the global economy >> i guess i would say it this way. global capital markets are highly integrated and are being pulled down. the way i would characterize it are this low rate as broad are a symbol or sign, rather, of weak global growth just kind of a lack of policy space to move against or ideas about how to break out of that low equilibrium. implications for us insures a world where economies and financial markets are tightly integrated that matters for the u.s. economy. that's going to pull down u.s. rates and financial conditions can tighten because of that.

i think we put all of that goes into our thinking about into our models we do understand how the international sector interfaces with the u.s. economy. we talk that into account. >> thank you very much. >> fed chairman jay powell after delivering his second interest rate cut from the year, saying its insurance townside risks, facing the economy he mentioned, global growth slowdown, like brexit, inflation not meeting target minor sell-off welcome to closing bell. he did not say and left more

optionality on the table the market, as sarah said. equities sell off. they bottomed and roughly the middle of jay powell's press conference there but have recovered if we look at the s&p intra-day. there it is. we did see yields rise following the decision only the short end like the two year and three and five year are higher on the day. the rest of the curb remains lower. slightening flattening but it hasn't, in fact, gone negative. >> one of the biggest surprises is the growing divide inside the federal reserve.

as far as the projections, seven to ten seven members of the fed, and not everybody gets a vote here, want another cut ten of them hold steady or we raise interest rates by the end of the year. little confusing as to the path of policy from here and what jay powell is going to be looking at got a lot of questions as to that sort of key of what's going to anchor the fed. he said they'll be data dependent and move more aggressively less than 100 now. recovered. joining us to break down the fed. jeffries, double lines, former chief economist, professor jeremy siegel and charles

schwab's elizabeth ann sonders. >> josh brown ceo, he will be with us to break down the market action final half hour of trade >> quite a group coming up i'll stick to markets. can he have the job when powell steps down to spend more time with his calculations. >> i think the market reaction, you know, any trader down here will tell you the first move always gets faded. probably happens even more so. i do think there were some people that were set up for either a more dovish statement or 50 basis points when that didn't come through, there was a quick knee jerk sell that's not human behavior. that's computers once that gets washed out and people realize, you know what?

probably getting another cut after this at some point no one has turned hawkish. so financials and utilities makes perfect sense to me. you've seen more than half of the sell-off in the dow disappear. >> why does that make sense? they're both up. >> these sectors price thepgs in before they happen not afterward. it's not as though they're pricing in that much more stimul stimulu

stimulus. >> what were they going to say to mullify the markets they didn't do that. third rate cut and there wasn't that either. the markets dropped. not much but dropped go into the press conference we're down started turning around 15, 20 minutes in the press conference. powell made a series of statements, basically saying it would be very, very flexible more extensive may be appropriate. there's one statement. reiterated, said this before not on a preset course yield curve is flatter, rates are up banks are moving up. utility ds move down a little bit. although they are higher banks higher here.

i want to remind everyone how much drama there was the last time july 31st, infamous mid cycle correction comment s&p, sarah and with wilf, moved in a 50-point range at that time lot less drama today back to you. >> bob, thank you for that more on today's fed decision, let's bring in david zervos, paul mccauley and chief economist at grant thornton and lori rbc capital markets. good afternoon to you all. paul, what's why your takeaway from the decision? >> it was very animated. >> i know. >> i think chair powell did a really good job. it was a difficult thing for him to do. the fact that the market hasn't moved much at all today, a sign of communication, the fed had to ease today because the market was prepped for it in every regard and i think he explained it very well but the fundamental issue at the

fed right now is they're making policy without a robust reaction function that is the real difficult thing. and they're doing the strategic review it's wonderful to see him highlighting it, coming out at the end of the year try to inform what their algorethm is from the standpoint of incoming data he's making policy without a reaction function. i thought he did a very good job and said it is a mid-course correction, except if it isn't so he left a great deal of optionality on the table that's a good thing. >> even when asked when are you going to be done he said we'll know when we're done. >> absolutely. he maximizing optionality, which was perfect. >> do you know who did not think he did a good job? president trump, out tweeting pretty early into the news conference, saying jay powell and federal reserve fail again no guts, no sense, no vision, a

terrible communicator. fed chairman was asked about this, of course, yet again he had a very scripted answer, was expecting it. >> i'm not going to read it. >> i don't think donald trump is unhappy with the 25 basis points the bad communicator. >> well, of course. >> obviously wants bigger, louder, flashier i think he wants more showmanship. i swear, i believe this. i think he likes having larry kudlow, because he knows how to talk on tv he likes giuliani as his tv lawyer he wants the fed to come out and say everything is great and we're going to do even more to make it even greater. >> he wants swagger? >> he wants the rate decision to be dropped like the ball on new queer's eve year's eve in times square i get it he's a promoter. i'm not saying that he wants people -- the fed historically has not been there to do we're breaking all kinds of norms these days.

>> communicated probably his best performance yet. >> look at dow what else do you want? look at the market >> we want to bring in steve liesman as to a money question, steve, about the repo market what did you make of that and everything else that powell said >> i think there's news there, the second half of my question where he said we may have to begin organic balance growth sheet sooner than we thought and i did see, by the way, yields come down when that happened briefly and then they seemed to resume their rise again i have sort of lost a little bit, sarah, as to what the market wants from the fed. going into this meeting thinking that the fed was going to do what paul mcculley eloquently described it, maybe a little less eloquent than that. basically we'll see. we'll do a cut and we'll see we'll do another cut and we'll see again. it appears as if the market

wants some commitment that the fed is going to do something that it doesn't feel, at least at this point, it needs to do and doesn't have the data to justify. so, if you had asked me a week ago what the fed was going to do today, i would say they were going to cut and we'll see now, the market still is baking in that october rate cut it may well get it sorry, december rate cut third rate cut of the year it may still get it, sarah i think it seems to be way out ahead of where the fed is at any one given moment as to the center of it coming. >> as for what the market does want to see, lori, if we only got this as the last cut of the year and don't get another one, is that bad for u.s. equities? >> it depends with the data going forward. a lot of talk about deep twigs in the fed guess with an, there's a deep division amongst economists around the street as to what the fed should be doing. you've been seeing equity investors sx

investors expectations they've been on the upswing. it's easier to deliver this menl we're ohm going to cut if we need to, when people are starting to feel better. >> part of the dough bait ebates uncertainty over trade we don't know where wat directin it's going in. >> all this talk about growth and momentum are unwinding, value and cyclicals are doing well the stocks most affected by the trade war with china have been leading higher tlaechlts growing optimism you're going to get something there and that pressure point will be removed as well. >> do you think we lose a rate cut if there's a trade deal? >> i think we'll have to see we haven't yet seen, i think, the full effects of the confidence shock that happened in august. there's an opportunity for that to show up in some of the september datea. you can't look at it in a vacuum but it's certainly a

possibility. >> at session highs down less than 20 points on the dow. diana, i want to come to you and ask you about the fed chair's comments about rates, saying he doesn't see it as something that the fed would ever be using. what does that mean relative to ecb policy and its influencing policy >> i thought that was a really important comment. a year ago in october 2018 same fed reserve chair, chairman powell, was saying negative rates were an option, they were on the table and many within the fed were talking about that above t bostick talked about negative rates. that's a big relief to bankers out there. i remember talking to audiences right after. he said hearing a gasp in the audience among bankers and the fact that the fed is backing off

that idea and zero being the boundary is important. the fed will hit zero in the next recession, hopefully that's not too soon i think it's meeting by meeting in terms of rate cuts for the moment i think this is important going forward. what is going to be in the fed's tool box it is limited on the downside. >> we are seeing the dow go positive here, largely driven by this move in financials higher interest rates are near the highs of the session the dollar near the highs of the session. now stocks are near the highs of the session. david zervos what will you tell clients tomorrow market implications, and what we got from the committee today. >> actually, jay's press conference was far more dovish when i look at it. i don't think it was just a we'll see as steve was saying. i don't think it was as wide a latitude as what paul was saying i think he was literally saying, hey, we're going to back stop this thing we are looking at it

we see the risks we don't see any inflation risks whatsoever the inflation story is a disinflation risk story, which is good news from anybody looking at it from the rate perspective. and i think he was -- i will agree with everybody, it was one of his best press conferences. i don't think there was an unbiased flavor to t i think jay took a statement which he might have been a little disappointed in it. if you were looking for something a little more dovish and made the whole thing a little more dovish he's here to help. he's here to watch he has a backstop on the s&p the market is starting to trade a little more with that backstop or with that foot. he did a great job of putting that into the marketplace. he hasn't really done that in most of his tenure it was sort of bechltrnanke-esq

>> he took a page out of yellin's book and read a prepared response to an expected question from a reporter i think that's served him well i said before i think he was a better ad libber than he ended up being and doesn't want to have these kind of incidence the only thing on what david said, i think his analysis is spot on. he said he has this committee to deal with, and the numbers that sarah was talking about that were reported when it came out five guys -- or five folks either didn't want to cut rates this time or if cut them wanted to hike them by the end of the year end of the day, they didn't want to cut and the five are sort of happy where they are right now in order to deliver that, he has work to do i think that is something that keeps you from unbridled optimism that there will be additional cuts this year. >> diane, it raises

uncertainties of whether he can get the committee there to cut rates if he wants to do so. >> exactly how should the markets take that >> i do agree with him being more dovish and you saw his own flavor as to the way he interpreted the meeting. it was more dovish five votes that are with him are on the federal reserve board and that really matters. and so the people he has to coral is not as many as some might expect and also williams will vote with him so, he has got a strong backing even though the way that people are feeling about it is maybe they feel they're done this year he doesn't and he has a lot of support to move it over the edge if he has to again that's the way i look at it. >> paul, on that note, the division, how much of an obstacle is it for him what did you take away from his comments about whether they restart bond purchases >> that's an interesting -- oh, go ahead. >> i think they will do repo

operations as necessary, put a ceiling on the fund trade. i'm old enough to remember when repo was a normal sort of thing that was done to address pressure. >> more in the plumbing camp, less in the easing dollar funding prices >> very much in the plumbing camp, but i think on this whole issue of the committee, i think there will be a lot more clarity once they finish their strategic review remember, today's was action without reaction function. they're reviewing the reaction function that's where the real debate is. in the beginning of the year, they'll tell us what their new reaction function is something to rally around. but right now they're in the middle of a review so, therefore, they have a lot of division. i think he's doing a really good job of managing that division in the context of effectively the exam is due come january. >> david zervos, wondering how you guys at jeffries are

interpreting this and what the fed said about it. >> i'm surprised more people aren't more concerned about it, sara we continue to see the strength of the dollar. it never goes away as a currency person all your life, you know that this strength in the dollar has been a thorn in the side of em. it's been a thorn in the side of kind of even u.s. competitiveness. and i think we see this demand for dollars. we don't know really where it's from we get this weird plumbing sort of signals we had them in '07, too, and they actually turned into something else it's something you want on your radar screen you don't want to just throw it away some of the regulatory -- we have very limited number of banks supplying the repo structure to the market. it's a sign there's more leverage than we might have thought. and we're a little more susceptible to squeezes and runs

than we thought. if there is a real problem out there, i think this could be a con vexed source of exacerbating it i don't want to put it aside as something that's not relevant at all. >> if i follow an update, why aren't we seeing it manifest in other part of the credit market at all or other sources of short-term lending and why aren't we seeing any sort of wider market reaction to it, if it's worrisome >> again it's a daily -- this is right in the weeds of the day-to-day funding of lerchverae it's not in the corporate bond market where people will get leverage on their structural balance sheets for term funding. it's the day-to-day. therefore, you can be a little less worried about it. i just think it's structurally telling you something about demand for dollars and that's not a healthy thing we had a lot of people borrow a lot of dollars at very low rates over a decade. as we've taken these rates up, a

lot of things break, whether it's argentina, parts of the ohio credit markets. i think there's something more to it. and it just tells me as well, it convinces me that last year we we were talking about four rate hikes baked in for this year, all those folks going up to very high rates were absolutely out of their minds 250 we had plus the 800 billion of qt was too much for the market and you're sort of seeing science that the dollar strength tells uh-uh went a little too far last year and only slowly unwinding it right now with our second rate cut. >> s&p 5 hu00 joined the dow, te slightly below the flat line to let the market recovery, do you buy them now >> we do we've been overweight all along. one of the things we've been saying to people about the cuts is the banks can handle a couple of cuts. they can't handle too many i think this is the one sector today that was at the sweet spot of what the fed was possibly talking about. >> ultimately not heading toward

negative rates. >> absolutely. if you were a bank investor, you had tough times over the summer, whipped at your back the last couple of weeks. >> final question to you, diane. clearly, this is a federal reserve that chairman has made it clear he's going to act as appropriate. he's going to do what the data shows or where they see the risks falling. what are the key pieces of data we should be watching? you have the bears watching the architectural billings index, which hit a seven-year low today, and saying we're going in recession and then you look at some of the consumer data or even the industrial production lately and it's doing pretty well. >> i actually think again, this gets into risk management and how much of that investment slowdown reallg everywhere that trade uncertainty is suppressing investment even as a consumer is strong, we're hearing this everywhere something has to give. either we see better investment activity or the consumer will

slow in response to the pullback by businesses and that's something that we'll be watching very closely the other thing i want to add is risk management against the kurps currency situation this one we'll be talking about more as central banks get into these neglect rates, they are looking much more in their kurcurrencies stimulating their economies. that gets into the conversation about the differential that heather long asked from the washington post, the question about how high rates are here, does strengthen the dollar and causes d s dissidence out there >> it all comes back to the currencies guys, thank you so much. >> how about that architectural billing on demand? >> i like that i think it was a bit of a preplanning. >> there was david zervos, paul mcculley, lori calvasina, thank you all.

josh will stick around the rest of the hour, 15 minutes left to go before the bell here is where we stand, looking better than we did in the powell press conference we got as low as dow down 211 as he began speaking, fully recovered and now positive up 43 points s&p really positive. move in the banks and utilities taking us higher yields are higher. the dollar is stronger that's pretty much the initial verdict. but again this fed initial moves often get reserved still to come, coverage of today's fed decision jeff sherman. >> two banking execs will join us we're back after this. ers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated.

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giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. fedex on pace for its worst day since 2008, citing increasing trade tensions and weaker global economic conditions shares of general mills, improvements in north america sales. that stock down 1.35%.

organic volumes and revenues that did come in light face book announced a new version, television chat despite the competition of guggenheim. roku bullish on international growth, shares down sharply. guggenheim well worth the read about the untapped potential it could have internationally, not related to a buying opportunity today because of the 14% pull bac back. >> kramer this morning called it the most disspiriting call he has ever heard on the economy or one of them. >> >> it's never a good sign when the ceo says, quote, we're whistling past the graveyard.

>> on the consumer story, yeah. >> couple of things. we went back and looked at the worst days ever for fedex. fourth worst day in the company's history, worst being 1987, the other two 2002 and 2008, overall market panics or crashes. in a stand-alone basis this may be fedex's worst day is this idiosyncratic or is this because fedex is more global than most of the u.s. companies? >> trade volumes which are falling. >> of course, falling everywhere, by the way i think we can't draw a linear conclusion that as goes fedex so goes the market. because of those reasons we have to take this with a dpran grainf

salt and saying fedex is going through tough times. there are market leading names in all those sectors that are doing pretty good. >> session highs up. last chance trade coming up. [upbeat action music] ♪

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breaking out rather than stocks that have already broken out i think it gives people time to set up dhr is the ticker. new york stock exchange, $100 billion company. 144, 145, that area. that's been resistance when it gets through all the sellers will have been cleaned up this coincides with the companies spinning off invista, orthodontic business nvst, up 30% from the ipo price. this company owns 80% of that still. i think this on an impending breakout i think you can get long comfortably. your stock will probably go in somewhere around moving average. you know if you're wrong relatively quickly >> pretty good move off the lows, 30%. >> it's hard to know the health care businesses they do own are on fire so i think that gives it an added component.

by the way, this is the company that will buy ge's biology beingal business. >> orthodontics are hot. from blue line futures, joining us now, talk about the federal reserve, jay paul and what we're seeing in the markets, bill. >> watching the futures, s&p pushing that area into the close. close above there. it's going to help rally this market into the end of the week. volatility came early after the fed did not confirm they wanted to cut earlier this year we got the cut, taming volatility in yields what's really on my radar is reads. looking at things that are breaking out i'm watching the ishares, that's looking very good here, trying

to get above the 2007 highs. holding a pattern, not so favorable. as long as it holds above 91, iyr index, you have to be long. >> thanks for joining us let's go up to mike. >> in contrast to how we have reacted before by the way, this is the may fed meeting right tlooer there rolled over from that. june no move not so great reactions to fed meetings right now we didn't go at a one-week low you're more or less held above in this range. pretty a pretty con constructive response i want to say the morning after a fed meeting you have a rethink.

intra-day of tens are still down on the session up four basis points from where they were when the fed first started releasing its statement. looking at the intra-day of tens minus twos, you can see it flatten rather dramatically. finally, the dollar index rallied about one-third of a cent right after the easing second of the year now almost in the grown. let's go to the nasdaq and frank holland. >> nasdaq looking pretty flat right now. tech heavy index taking a dip after the fed decision, improving for the close. same story for chip stocks global growth concerns russell 2000, however, closing down more than half a percent in the red despite the thought that that rate cut would be a big benefit for small cap stocks

most of the fang in the red, amazon the biggest negative impact change in search algorithm to boost its profits. lot of positive reviews for its watch. trading at all-time highs. now over to bob pisa inform i at the new york stock exchange. >> july 31st fed meeting we dropped initially on the fed's statement because there was no indication from the fed that more rate cuts might be coming no downgrade to the economy that would have helped the dovish position, no strong support for a third rate cut either. the press conference saw a lot less drama than the prior one. things began turning around as chairman powell said if the economy weakens, a more extensive sequence of rate cuts may be appropriate that's a quote he also said they were not on a preset course. that turned things around. banks were big movers. jp morgan, for example, moved up almost $2 on its highs, defensive sectors like merck and

health care, consumer staples like procter & gamble had a good day. this time much less drama. only a 20-point range in a somewhat more scripted press conference than the federal reserve. let's check in on the markets and how they close s&p and dow were in positive territory. dow up 36 points, just off the high of 51 the low, though, had been down 211. nasdaq and the russell, though, lower. a decent late recovery halfway through the press conference from jay powell and

the banks were what led that here is kpw's bank index intra-day. that sector finished higher on the s&p. kpw banks up 0.6%. >> definitely the first place we look point out the close on fedex, one of the worst performing stocks after earnings disappointed sales disappointed guidance disappointed. closing lower almost 13% worst day for this stock in years, going back to 2008, 2009, citing all sorts of macroeconomic uncertainty. fred smith, ceo saying we're whistling past the graveyard >> whether it's fedex or less dovish tone people hoped for, we came off those lows with quite a bit of confidence. >> federal reserve cutting

interest rates second time this year the committee was micked as to the outlook for rates going forward. here are the highlights from fed chair jay powell's press conference. >> to lower by quarter percent to 1.75% to 2% is appropriate in light of the global developments i mentioned as well as unit inflation pressures. since our last meeting we've seen additional signs of weakness abroad and a resurgence of trade policy tensions, including implement ags of future tariffs future of monetary policy will depend on how the economy evolves and what developments imply for the economic outlook and risks to the outlook policy not on a preset course and that is certainly the case today. this is a time of difficult judgments and, as you can see, a disparate perspectives and i think that's nothing but healthy. you've seen us being willing to move based on data, based on the evolving risk picture i have no reason to think that will change i continue to believe that the

independence of the federal rae serve from direct political control has served the public well over time and i assure you that my colleagues and i will continue to conduct monetary policy without regard to political considerations we doesn't see a recession we're not forecasting a recession but are adjusting monetary policy in a direction to try to support what is, in fact, a favorable outlook. >> love those powell mash-ups to music. back with us, josh brown, ceo, joining us now jeremy siegel first, mike, to you, one of my favorite quotes was out of your note this morning. powell often played the part of the stern withholding dad to those who always want the later curfew and gas money. >> you're sharing our internal -- >> it was such a good -- >> thanks. i think the market was braced for that kind of response. they're saying don't get used to this leniency. this is this time and this time

only s&p is exactly flat. isn't that the way it's supposed to work? i think the market is taking his press conference comments as a little bit of two ways to win here the only way we won't get a rate cut is if economic minds get better and trade lifts as a big overhang that seems to be a bargain that the market can live with right now. sometimes the next day is a whole rethink. we often decide it wasn't as good as we thought in terms of the fed move right now, i do think that the market was braced for that kind of stern response. didn't quite get it. mostly banks up today. most stocks were down. heavy response but the market really took it in stride. >> correctly saying that the markets were down. >> lots of capital

what about the rest of the year? if we only get this one cut, don't see further from here, do we need to see other big macrofactors to support the market >> that would be an impossible question to answer at any time by anyone. it makes it more impossible because the trade issue is so binary i can lay out two scenarios for you. one where there's an agreement and one where there isn't. i think you know exactly what the result would be based on either of those. i want to get back to the banks, though, being the first group to turn i do think that that's hopeful and i think when you look at, like, for example, the intra-day action and kre, regional banks, look at jp morgan, which i own new all-time high today, or close to why? does anyone think a basis rate cut will do anything for example, net interest margins? absolutely not it's a signal that big money thinks that what powell is doing and dragging, frankly, half the

voting that was with him is extending the cycle. we get another four quarters of expansion. maybe six. that is what the market is tell ing you, what it takes jpm up to another record high on the heels of this rate cut it has nothing to do with yield curve, how much money the bank is going to make on lending. it's all about, okay, they're going to stay with the cycle. >> certainty of cuts, which the banks would rally on if we weren't going to zeero that's for sure. >> powell said as much, jeremy si gel, act as appropriate to expand the economic expansion is that bullish for stocks? >> it is he has a lot of headwinds. look at the projections we saw for the feds funds rate at the end of the year. only two dissented

only seven thought one more cut would be appropriate really the mantle of the fmoc is for not doing anymore for the end of the year the next two meetings, i don't think that's particularly good in term structure i look at fed funds in the ten year is still inverted we should still bring down that fed funds rate at least another 25 basis points. i agree completely with his dissent on 50. we've got to normalize the curve. i was a little disappointed in the fmoc projections. >> so, why is bullard the outlier there? >> he has always been the -- he has been the president, the member that has been most concerned about inversion in the curve. he has been sitting on that committee for years. he said, you know, back in the crisis they told me inversion didn't matter. back in 2000 they told me

inversion didn't matter. full me once full me twice. you wouldn't full me a third tim time. >> jeremy, it's josh brown. >> yeah, josh. >> looking back at these inversions, previous inversions, the average rate on the ten-year as been like 7%. i'm not saying this time it's different, ignore the inversion. i'm saying when you're at zero or close to it and we're this low dploeblly, can't we allow for the fact that there will be several crossovers back and forth before one really matters and maybe there's one nuance to pay attention to >> certainly that's true between six and 18 months later, there's a big slowdown that actually was a recession i don't think there's going to be a recession as a result if the fed doesn't lower that

rate, i think we'll have a more significant slowdown i mean, i know some of the recent data has been decent. we're barely going just at 2%, 1.9%, 2% you get that news from fedex about seeing the slowing internationally and even powell mentioned about what's going on in europe, you begin to wonder about how much we can stay at 2%. >> you begin to wonder what the president is going to do here on trade. you knew he was going to come out and criticize powell for not doing more, not communicating effectively. that came out. what we've seen, though, the president gets more aggressive on trade and then powell cuts interest rates. >> it has been the pattern, yeah. >> that's kind of the buzz what's the expectation >> to be honest with you, i don't think anybody's game theory has been exactly how to handicap the next move on this, honestly it's been capricious, dependent on what month we're talking

about. the fed likes that we have a meeting in october, we assume that's all that matters for the moment and identityline the you shall for a couple of weeks. >> the big game theory is like, is navarro still working there by october that might change all of your views on everything that's about to happen. one last comment i want to make on this, it's not clear what a 25-basis point rate cut says today other than act as a self for capital markets. two reasons you would do a cut like this. first is enkornl peopcourage pe take on more debt, leverage up the second thing you would say is you need to do that to ease financial conditions would anyone in their right mind argue that financial conditions -- anyone >> rebound into housing data that could be as a result of the fact that mortgage rates have gone lower that's stimulative. >> refinancing. >> yeah. >> we have got breaking news on microsoft. josh lipton has it.

>> yeah, wilf. microsoft announcing a dwrtly dividend increase and share repurchase program specifically here, declare a quarter quarterly dividend and share repurchase program authorizing up to 40 billion in share replchs and announcing a date here for annual shareholders meeting, apparently to take place on december 4th. again, microsoft announcing quarterly dividend increase. guys, back to you. >> josh, was this release scheduled? >> not that i know of, wilf. pretty good returners, stock up .8% in the after-hours here. >> trillion dollar market cap again. unbelievable. >> are you a buyer >> everyone in america owns microsoft defacto in your 401(k), you own the stock. >> it's been a good one. >> mike it's gone sideways for a

couple of months. >> tremendous, tremendous run. it's kind of settled down a little bit yeah this is sort of an ongoing part of the story for microsoft tremendous cash flow they share it. it is only 4% of the market buy back right now it's not as if they'll be controlling the market for the stock. it's definitely a reminder that this remains a big piece of the story, which is huge companies, lots of profits and they're distributing. >> are buy backs still a big part of the story? >> they're down off their peak they're down off their peak. i never thought they were driving the market they're just in the background where it's just one piece of the puzzle. >> 800 something billion last year, something approaching that or slightly higher this year we don't know until the end of the year microsoft also important to point out on apple, these are companies that are doing massive buybacks, raising dividends. at the same time, they're rationing up what they spent on

cap-ex, r & d. these are like five tool players in baseball. these companies really do it all. microsoft is a great example of that. >> news alert here on facebook julia boorstin with the story. julia? >> mark zuckerberg is returning to capitol hill. facebook is saying he will be returning to washington, d.c. to meet with policymakers and talk about future internet regulation they say there are no public events planned zuckerberg may be able to make his way around without being caught by any cameras. zuckerberg had said he believes relation of the internet especially around things like privacy would be good for the company, setting some standard rules ahead of state privacy legislation starting to go into effect next year guys, over to you. >> julia, thank you. getting a headline crossing out of the new york fed, looks like the new york fed, which conducts market operations on behalf of the federal reserve will conduct another repo operation in order

to stabilize the market. this is, what, the third day in a row, mike? >> third day in a row. they're going to do it until there are no takers. >> kind of frees itself up that there's not a necessity to run this, effectively an auction for cash. >> $75 billion i'm a taker. >> i want to come back to the early discussion we were having in terms of where we stand at the moment for s&p 500 valuations and to the early discussion, how important buybacks remain as an argument to whether we're cheap or expensive. >> they're still important i mean, we're standing around 18 times this year's earnings, which given how low interest rates are, in my opinion, certainly are not at all expensive. microsoft just reminds us of a new world where dividend yields are going to be higher than the interest rate that people are going to be able to get anywhere in the world and that is going to change. i think the attitude of hey,

where should i put retirement savings where i can get income no longer in the bond market it very well may be, and i think so, the stock market. >> so, very quickly, jeremy would like to pin you down here. you're known for your calls. s&p is close again up above 3000 where do we end the year >> well, i agree with josh i think trade is still the most important. if we get some sort of trade deal and no 25% tariffs, we can go another 10% this year without that, i think we limp along. if we get more aggressive, it's going to be down i think that's the driving -- going to be the driving force. >> professor siegel -- >> if i knew, i would give you a more exact prediction. i think trump will stand back, though i don't think he can afford to go hole hog on this tariff i think politics are going to intervene and he will stand back. >> professor, thank you so much for joining us

josh brown, thanks to you. we'll look at the impact of the fed's latest rate cut and at that will do to the banks back in a couple of minutes. ♪ ♪♪ ♪♪ ♪♪

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how rates will michaud of kbw and dick kovacevich of wells fargo. tom, do you think the stocks buy right now? >> absolutely. baching stocks over the course of the year. it was 25 basis points unlikely to have negative interest rates in the united states you had been here before many times the even when banks go down, they can make money in

other places share price tracks rates regardless >> i agree with tom. i think it's already in the mark, one. two, this is not for most ceos their first roy rodeo. almost any rate development, diversified had many businesses, products and services. so banks have already said in their investment meetings that they will have net interest revenue than they thought they would have by the same token, lower interest rates means usually it's a stimulus to the economy

one of the most positive things for them is if they have a mortgaging portfolio, you market that portfolio at the end of the quarter and higher rates are better and you could have hundreds of millions of dollars in some banks, having more income because of the higher long-term rates. >> when i heard you were on, tom, i was excited to ask you about the dramatic week we're seeing in the overnight funding markets, the spike up in the repo rate. listen to how fed chair powell answered steve liesman's question. >> the tax payments and also the large bond purchases

we were very much waiting for that the response was stronger than expected. >> market response clearly the fed is on top of it and is brushing it off curious from your perspective, what's going on? >> it structure issue. i do not think it's signaling any trauma around the world like it might have a decade ago i think it's only gotten bigger in the last decade if one or two institutions start unexpectedly moving in a certain direction, they are big enough to push the market around and the fed will have to think about some market structure issues

when you look at the size of the biggest banks, to the extent that they're settling up at the end of the day, if you had one unexpected buy order, customer action on their part in addition to the tax payments, it could move that rate around. i don't read it as a sense of a pending tension in the market that is suggesting something is wrong with the system. >> dave, what's your take on this, is there more going on in the service that we haven't uncovered yet? >> i think there is to some degree any time close to this, how that all works they didn't buy bonds recently that's also taken liquidity out

of the market. unintended consequence is it's going to be very difficult for the fed to reduce their balance sheet even if it wanted to and if they don't reduce their balance sheet and we do go into another recession, is it going to be $7 trillion or $8 trillion i think quantitative easing was a big mistake. i think they don't know how to get out. and this has got ramifications at all different times this is just one of the cases it was making it difficult to handle liquidity and monetary policy. >> the balance sheets are there, too. >> sorry, tom. quickly, do you think your old employee still hasn't found a permanent ceo? >> i cannot believe it. >> is it embarrassing for them >> it should be. >> what happens from here, do you think?

>> why do you think it takes so long >> i have no idea. it's inconceivable to me they have an option. to make the interim ceo the permanent ceo. if they want to keep looking or bringing someone in as a coo or something, they can do that. why that option was not taken by now is strange to me >> always great to speak with you both, tom and dick. >> thank you. >> thank you. >> coming up, your fed investment playbook. how to trade bonds after the latest interest rate cut with double lines jeff sherman. >> plus why history says today's fed t ulcucod lead to big gains for the stock market we trust usaa more than any other company out there. they give us excellent customer service, every time. our 18 year old was in an accident. usaa took care of her car rental,

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back to mike santoli for the final dashboard of the day mike >> biggest question happeninging over, press conference and final commentary with some interim rate cuts or is a recession on the way?

jay powell mentioned 1995 and 1998 scenarios this was an illustration of the yield curve from 1998 compared to one right now it's set up to match up at the date of the first rate cut each psy cycle. what it's meant to show, the fed waited longer until the yield curve had been negative for longer before the first rate cut right here, right? 98 it barely got negative at all. ate cuts steepened from there. this is if you believe that the yield between the three month and ten-year is somehow this overwhelming signal we're heading into recession counter point to that is a different chart that shows when the fed has cut rates twice, first two times in the cycle and only a quarter point each as opposed to half a point, it's

been positive six and 12 months later for the stock market each time these instances more or less correspond to the nonrecessionary rate cutting cycles that we've seen in the past this is kind of encouraging. it doesn't really relate to the yield curve specifically this is how we put it all in context. doesn't really come to a conclusion, though, guys. >> mike, thank you very much, as always charles schwab chief strategist liz ann sonders says how we should be putting money to work after today's fed rate cut

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hello, wilf. new national security adviser robert o'brien as he left los angeles for san diego. the two men spoke briefly to the media before boarding air force one. the president spoke confidently about the u.s. position in iran. >> there's the ultimate option and there are options a lot less than that. we'll see. we're in a very powerful position right now we're in a very powerful position. >> rising tensions in the region much pompeo blaming iran once again for the attack, calling the move a, quote, act of war, end quote. social media giants testifying on capitol hill about their role in the spread of online hate which could lead to real-world

violence representatives from facebook, twitter and google unveiling their policies and practices on how violent and hateful content is identified and removed from their sights you're up-to-date. that's the news update this hour sarah, back downtown to you. >> sue, thank you. quick check on some stocks made some big moves today. beyond meat under pressure after tim horton announced only offer products in providences of ontario and british columbia they've not yet offered beyond meat products in the u.s whirlpool shares lower after being declared overweight on concerns of slowing global growth microsoft another one to watch after hours, higher after they announced a $40 billion stock buyback and raised its dividend to pay 11% overall, volatile market day after the federal reserve announced its cutting rates,

quickly rebounded into the close after fed chair jay powell's news conference. joining us now with what to do next, lizann sonders jeff sherman with us as well deputy chief investment officer at double line capital a little stock, a little bonds biggest headline out of this, liz ann is the split inside the fed has grown larger what are the market implications of that? >> i don't think we know yet it was a split you have five and five for nothing or 25 basis points and you had seven for 50 basis points i think we have to take the fed at its word these days, which is that it's a function of data dependency, not the forecast at this point in time to judge what's going to happen the next couple of meetings i think it depends on not only their mandates around inflation. >> is that a buy on stocks because the fed is going to have the back of the markets and the economy if things turn south >> part of me -- i started in this business in 1986.

in my first 13 years i worked for the late great marty swein who said don't fight the fed that's in the back of my mind. the fed acknowledges there's only so much they can do lower rates is a benefit for credit sensitive parts of the economy but not the elixir for had an ails the economy. it doesn't engineer a trade deal and that remains one of the big uncertainties. it's not a negative but it may not represent the same kind of positive it has in the past. >> is it even data dependency or rather data expectancy this was an insurance cut. and chair powell admitted as much. >> but remember what he said in the last meeting, that he still views this mid cycle and didn't say anything to deflect against that if the data stays rell of itly robust between here and, say, the next meeting, you might to see the markets price down expectations that this is the beginning of a series of rate cuts. >> jeff, everyone expected 25 basis points. >> yes. >> you alter your expectation for the rest of the six months

>> no, we haven't. the markets kind of pricing in roughly one more cut you're not seeing that as you mentioned liz ann, there's seven voters that came out and gave their forecast that said there may be one more cut the idea that the market is on pause, i think, is a function of the data dependency we see from the fed at this point. if you look at the data set, it does appear to be kind of improving a little bit smaller piece of economy than, say, the service sector, providing pretty positive numbers. the consumer hanging in there. we know those are lag variables. ultimately, until you see a big particular tick-up in the unemployment rate at this point, it's pretty stable to see the economy should stay relatively stable at this point we're not going to get a 3% growth rate. no one really thinks that. we're running at 2.5 first half of the year, 1.8, 1.9 for the

third quarter. effectively the fed probably regrets wanting to cut the markets cornered them on this side. powell is not telling you this is a cutting regime. he's telling you the data dependency, maybe i don't want to cut anymore let's see if the market can stand on its own we don't want to go to negative rates. when he used the phrase effective lower bound today, he said we were at theesquive lower bound. he's trying to go back to the point -- when he first introduced that, he called it the zero lower bound that's something i pked up on him saying we don't want to go negative we see how problematic that is with negative rates. >> this idea that the markets have the fed cornered kind of reluctantly cutting rates or having an easing buy as is interesting in that they don't resort to just pointing to the yield curve and saying listen we need to get this fixed not just because we think the economy is heading toward a recession

powell resisted saying that except for bullard. >> josh said bullard should have gone 75, 100. >> do you think it's a red herring we don't have to worry about? >> no shall the inversion still matters. the two-year is exactly where fed fund policy practically is, a few basis points inside of there. that gives powell the out to say is it that inverted? most of the year we've had a severe inversion on the front end of the curve market's response today was effectively that, okay, we see this maybe we should reprice this expectation of fwo more ctwo mo this year. i could see them not cutting the rest of the year the markets price in roughly one. that's what we have to respect this point in time we got overbought, saw the negative sentiment it peaked in august. data starting to slightly rebound. we'll see if it's a blip in the radar or something of a longer trend. >> liz ann you've liked small

caps over large caps have you changed your mind on any? >> no. looking at the action last week, first three days of the week saw the russell 2000 by a full percentage point each day, that's a pretty rare occurrence. several times we've had a quick reversal like that five out of the seven times, it did not lead to persistent out performance by small caps. we have to make our decisions based on fundamentals, not just shift in momentum in the short term you look at the high percentage of small cap companies that are highly indebted, that are zombie companies, lower profitability stream that they're facing the only benefit that small caps have going for them right now relative to large caps is a valuation discount we think the fundamentals still support a buy as and where we are in the cycle large over small. >> quickly i want to ask with the repo rate, are there other signs you've seen in the market that concern you about liquidity? >> no, no. it's something we've been writing about. we put on paper in early july

about the repo facility and watching this, specifically a quarter end. it's quite surprising. i did see the announcement that we'll do the facility again tomorrow until there isn't stress in the market so powell is not calling it qe it is expanding the balance sheet by definition. you're trying to buy lick id wit there. we're going to continue to view this process until the market behaves. supposedly these are the good times. greatest economy ever, we keep hearing. from that perspective, why are we having liquidity runs maybe they need a bigger balance sheet. something we've been focused on. question about the excess reserves is there something there adjustment is something to bring that in as well. >> you think the dollar will weaken >> yeah, look, there's a supply. we already had 11 months into the fiscal budget this year and

we're running north of $1 trillion forecast from the cbo was roughly $700 billion for the year there's no end in sight. congress continues to spin and look forward look at the campaign trail, what you see. it's all about spending. both sides, both parties at some point it's going to cause stress on the system and that means ultimately a weaker dollar the president wants a weaker dollar that's why he wants lower rates. he's asking the fed to continue to cut and cut aggressively, he wants to be on a global basis. that's what it comes down to i don't think the fed will give him that fodder unless thet progresses >> thanks so much. >> thank you. >> news on u.s. steel. >> wilf, that's right. down about 6%, company issuing fourth quarter guidance, larger than expected metal prices, pounting to deteriorating market conditions in europe that says will result in significant margin compression u.s. steel noting it's on track to reduce european head count by

2500 employees next two years. so far 1800 of those positions have already been eliminated u.s. steel down 6% remember, this is a stock trading 60% off its highs from october of last year back to you. >> eric, thanks so much for that still to come here on closing bell, we'll break down the fuel economy fight between the white house and california on auto emission standards. >> big interview coming monday first right here on cnbc, christine la garde, imf managing director since 2011, stepping into a huge job and a precarious moment for the global economy monday here on cnbc. ar nice booking, sa. >> thank you tv announcer: it's just as powerful as the lexus rx...

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the trump administration says it will try to revoke an obama era regulation phil lebeau is here with more. >> the current standard, which is being revised calls for the

fleet of vehicles that are built by automakers to average more than 54 miles per gallon by 2025 mr. trump says, california should not have the right to set the own standard for its state and a standard that other states typically follow today out with a tweet that says automakers should seize this opportunity. without this alternative to california, you will be out of business take a look at shares of the four automakers that have already struck a deal with the state of california. ford, honda, volkswagen and bmw. they have said sure, we'll go to 50 miles per hour with california the trump administration is saying, uh-uh. not going to happen. bottom line, guys, this is going to be fought in court. >> phil, thanks very much for that also don't miss our brew with former ford president and ceo mark fields right here on closing bell. up next, roku's big drop citing double digits, parent

comcast. full details coming up [upbeat action music] ♪ (pilot) we're going to be on the tarmac for another 45 minutes or so.

liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ welcome back shares of roku are falling today, following streaming announcements from parent company comcast. julia boorstin has all the details. >> comcast making its biggest play for cord cutters yet is giving it xfinity streaming box for no additional cost to broad

band only customers, dropping it's fee 10,000 free movies and shows along with their subscription streaming services also today, facebook unveiled portal tv. enabling users to stream amazonn and other apps to tvs. costing $149 that launches in november. now roku shares are down nearly 14% today. but it's worth note nag roku is up over 320% this year sarah back to you. >> yeah, not too shabby. julia, thanks. up next the explosive details of a new profile of work ewceo adam neumann and his unusual behavior ♪

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an explosive new profile of wework ceo adam newholm 199the "journal." the piece starts with an account of neumann smoking marijuana on a trans-atlantic flight and goes on to detail unusual practices describe a 2016 all hands meeting as 7% of the company was laid off including trays of tech la shots and a performance by dmc and includes neumann saying at various points he would like the israeli prime minister, the president of the world, the

first trillioner, as well as immortal this article clearly refers to lots of reporting aerkz to sources and individual occasions that you can't extrapolate as the norm nonetheless. >> amazing anecdotes. >> specific anecdotes which are not typical of a founder of ceo of a public company. >> right. >> maybe a small private company where most of his investors are him and his friends is different. but it was a somewhere in between and this is not kind of typical behavior. >> the relevance is the anecdotes and the body of behavior they describe, fits in with some of the concerns that are about the company that it has this grandiose idea of what the company is about and creating this kind of new world changing community as opposed to to just subleasing office space which is in fact what the business is. >> well what was the best tidbit. >> i liked -- i liked the start-up ideas he had before he got to wework. including a crapsable high heel

woman's shoe. >> good idea. >> and baby clothes with built in knee pads. >> maybe he should do that next. >> i mean it seems like good little idea was a decent hook but i don't think -- i don't think he is getting a $47 private biiolln. >> key things to watch as we head to the new trading day. servicenow put our workflows in the cloud.

this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

- stand up if you are first generat(crowd cheering)ent. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad. - [man] i will tell you this, southern new hampshire university can change the whole trajectory of your life. (uplifting music) you an edge. "fast money," 5:00 p.m. eastern on cnbc.

>> announcer: carl quintana, morgan brennan, johnforbes "squawk alley. welcome back now to the wall street look ahead. existing home sales coming tout. and cnbc delivering alpha set to be the big event of the day. existing home sales process. sarah the home sales expert. >> i'll step into her place. existing home sales expected to decline 1.1% in august housing vrpt still remains very low. that follows 2.5% increase in july also on the heems of a 12-year high in-housing starts very strong data there today mortgage rates dropped srp sharply in august. tomorrow's sales data shows data from june and july when rates were higher. but housing data has looked better suggesting the lowerer mortgage rates have having impact. >> sarah, excellent. >> thank you. >> not that i'm surprised.

enjoyed it a lot seems delivering alpha the big event tomorrow leslie picker has the things to watch. >> tomorrow legionens of investors and and politicians discuss issues related to your wallet, your portfolio, what it means for your portfolio jay clayton will kick-off the event and apollo josh harris will close it down in the middle of the day we hear from mike pence. other speakers include p&g ceo and mary ert ohs will sit down with sarah discussing global opportunities. cnbc coverage begins first thing tomorrow and continue throughout the date, guys >> leslie, thanks foltz. we look forward to delivering alpha. of course, mike final thoughts nice rally. >> a steady response by the mechanic the market is willing at this point to buy into the fed notion that there might not be that much to do to revoke the

economy. just the adjustment in rates to engineer a soft landing. some day the the next day after the meeting you never know if the response after the press conference was the the lasting one. >> but that's usually the negative reaction gets turned into a positive. >> often can you swap it either way you're right yes. >> thanks for watching that does it for "closing bell." >> "fast money" begins right now. live in the nasdaq market site overlook new york city times square this is "fast money. i'm melissa lee. traders are tim seymour guy adami. u.s. home building surging to 12-year high but with uncertainty gripping the markets and recession looming could the proverbial wolf blow the house down roku sliding 14% today we explain the plot twist, the screaming wars the fed cutting rates by a quarter point with the members divided on further action this year despite passionately opposing opinions internally and externally the markets ended mixed on the