values some of those risk-free rates come into play and treasury yields matter. so how much more are you going to pay for a stock if you can get risk-free money at a certain level at a higher rate. >> the university of michigan was the biggie dom, thanks. jon, thanks. this was fun we appreciate it, everybody. thanks for watching "power lunch. "closing bell" starts right now. thank you, kelly and jon strong consumer data and a big rally right now in the financials, sending stocks higher to close out the week the most important hour of trading starts now welcome, everyone, to "closing bell." happy friday i'm sara eisen take a look at where we stand, near the highs of the session. s&p 500 up 1.7%. we are recovering a little from the losses on the week we're still down about 1%. the first gain for the dow and the s&p. the dow zooming, up almost 600 points the high of the session was just over 650 the nasdaq up 1.6%

the best performer on the s&p 500 is citigroup after earnings. right behind it is state street off earnings as well look at the heat map, lots of green on the screen. in fact every sector is higher right now and the banks are on top for a change that sector up 3.7%. health care is up 2% right behind it communication services rallying. meta is also doing well and so is disney. it's the defensives that are lagging like utilities and staples. coming up on today's show, we will talk to the cfo of wells fargo about today's earnings results. it rebounded, up 6%. plus look at these solar stocks. clean energy names getting clobbered on comments reportedly from senator joe manchin about climate funding. we'll talk to the ceo of solar firm sunnova stocks are lower on the news about the wall street reaction. first up, let's start on

this rally several factors pushing stocks higher right now one, another round of bank earnings wells fargo and citi soaring on the back of their reports. two, we got strong numbers for june retail sales, up 1% for the month. that is a decent jump compared to the 0.1% decline in may although a lot of people said it was driven by higher priced stuff. and james bullard saying earlier that inflation can come down quickly to 2% in 18 months if the fed plays its cards right. let's bring in barbara doran and bob dolev. i think the most impressive thing is the banks citigroup is up 14%. yes, this was the cheapest of the big banks coming in, but what do you think is behind this kind of very strong enthusiasm we're seeing now for the whole group? >> well, as you know, those stocks have been hit hard and so people have gotten out of the way. you get any good news and these

things pop i hate to be a bearer of bad news, but i think this is typical of a bear market rally what goes down the most often pops in a bear rally i'm not convinced we've seen the bottom yet we've had a bunch of mini bottoms, but i'm not sure we're there yet. but the banks have decent balance sheets they didn't get into a lot of trouble they did before the great recession. so any good news at these great prices gets them going. >> barb, are you a buyer on any of the news we've gotten jpmorgan which declined has come back today. >> i think going into the earnings these stocks were looking really attractive. it comes down to risk/reward i think what you're seeing today is the relief rally. banks are always looked at as the bellwether for what's going on in the economy to get realtime information the news there was very good even jamie dimon who talks about

the hurricane and really upped his loan reserves and looks down the road and says, hey, typically when you raise interest rates as aggressively as the fed ris doing, it doesn't mean good things down the road however, right now things are very good. if you look at what happened in 2020 in terms of all banks upping the reserves in anticipation of who knows what would happen in the shutdown and they didn't need them. i think jamie is just doing good risk control here. i think investors are seeing it and going, wow, this is a good start to the earnings season because everybody is worried what are the earnings going to show, what is company guidance going to be. this is a good start and very constructive for what may lie ahead the next few weeks in earnings reports. >> so would you be buying the banks since they have been battered even though we're seeing suspended buybacks and we're teetering on the edge of this recession, even if we're not hearing that out of the companies? >> well, you've had a big move today.

citi up 14%. we've had so many false starts it would be hard to say let's go all in but i would think i would have been adding through this and would have to live through the drawdowns yesterday. but i think you can start buying in here. again, the risk/reward is extremely attractive unless we went into a deep, deep recession which just does not seem possible given full employment and the wage increases and lots of other positive things going on so i think they are even discounting bad news. >> bob, what about you are there any sectors of the market that you would tell people to buy right now on barb's idea that risk/reward looks very favorable that a lot of stocks have gotten very cheap and maybe we won't go into a very deep, ugly recession? >> as barb points out, the real question is earnings i think we're going to get mixed earnings, given the slowdown in the economy. look, i think we're in a period of time where it's not

necessarily prudent to chase strength i like buying on the red days and trim on the green days because i think we'll have more volatility to the side-wise pattern before we make the final low, and hopefully that's soon. >> i also wanted to point out one other quick data point, bob, which is in the sentiment data for consumers we saw the long-term inflation expectations decline more than forecast 2.8 versus 3.1 we know the fed is watching that very carefully in fact a lot of people thought it's what led to that triple size rate hike last month. what do you think it will mean for fed policy and for the market >> very significant. i'm glad you pointed out, along with the good earnings, this is the good news for today. consumer expectations around inflation are falling. our view is inflation peaked in the second quarter we just got the last reading for the second quarter and the numbers will come off here in

the balance of the year. not back to 2% or anything close to that, but enough to take some of the sting out of the concerns people have. >> bob, barbara, thank you both for joining us with some of the strategy there. with the dow up almost 600 points, wells fargo joining in the bank rally big intraday comeback here getting a big lift throughout the session. up next we'll talk to the company cfo to break down the results and share his outlook for the consumer you're watching "closing bell" on cnbc. still down about a percent on the week but we're recovering nicely, up 1.75% on the s&p. (vo) introducing welcome unlimited from verizon. at our best price ever. just $30 per line. (fran) for real?

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check out today's stealth mover. vertical aerospace shares of the electric aircraft maker soaring after announcing european jet operator flying group ordered 50 of its flying taxis. the company also says american airlines has confirmed delivery slots for the first 50 aircraft of the preorder that it placed last year. the stock up 70% this is one of those companies that went public via spac post covid, '21 or so it's been on a downward trajectory but not anymore. wells fargo, the stock is jumping. the cfo said the bank is expecting net interest income to grow by 20% but warning that things will get worse for the economy. joining us now is the wells fargo cfo. mike, it's always good to have you on earnings day, welcome. >> thanks, sara. thanks for having me again. >> i just want to get the top and bottom line miss out of the way, first of all, even though the stock is reacting to some of

that better guidance and just the overall enthusiasm right now around banks the miss related to equity investments. explain that >> well, earnings declined primarily related to our cyclical businesses coming into the quarter with headwinds against them both the mortgage business as rates have impacted that in a substantial way the last two quarters and our private equity and venture businesses given what you're seeing in the public equity markets that has an impact on the valuations there. when you really look through that, as you mentioned in the lead-in, both rates and higher loan balances are really helping propel net interest income growth not only in the quarter but as we look at the full year. that should really help us as consumers are continuing to be out there spending we're seeing good activity across the consumer and commercial portfolios and i think that bodes well for the environment we're in right now. >> it does hurt the mortgage

business, though, as you mentioned. as one of the biggest home lenders in the country, i wanted to gauge how you're thinking about what's going to happen next and how bad it's going to get for housing? >> it's really a function of rates going up over the last couple quarters and that's really impacted the refinance volumes that we've seen in the mortgage business as they have slowed as rates have gone up we've seen a little weakness in the purchase market as rates have gone up, but that still has good activity to it. so as i said on the call this morning, we do expect it could go down a little bit more in the third quarter and then, you know, look to stabilize over the next couple quarters there really are some positive parts of the housing market too where there's still the demand and supply imbalance across there. we're still seeing good home price appreciation and so there are some positives to it as well but it will take a couple of quarters to really stabilize. again, when you look through the consumers there that are impacted there, we're seeing

really good credit performance still. maybe it's slightly off the lower levels, historic lows that we've seen, but really good performance across all the portfolios i think that really sets up pretty well as we go into the uncertainty of the environment. >> but wall street is very worried about recession. are you saying you're not seeing it or not seeing it yet? >> yeah, well, we're not seeing signs of stress yet across really any of the portfolios that we have but we know as rates rise and the fed has been pretty clear about what they're trying to do in terms of stemming inflation, that will have an impact on growth that is going to have an impact on not only the economy but also consumers and businesses over time i think you'll see that first in the low income cohorts across the consumer space not a big piece of our business but i think that's where we're

going to see it first as the impact of inflation really takes hold there but you sort of have to look through these environments we're continuing to execute on the things that are our priorities on building out new capabilities we've launched new credit cards. we're executing on our efficiency plans so we stick to the things we can control and manage all those risks out there. >> the credit card business was a highlight. you've seen strong spending. what about delinquencies, mike, any signs that's picking up? >> not in our portfolio. very, very small ways but very much below where they were pre-pandemic as we launch our new products, we're seeing really good uptake but also really great credit quality in terms of the customers that are applying and getting approved for the new products so all that's working quite well we're not seeing that in the car business in any substantial way yet. >> so do you think the market has this wrong of what's going to happen to the economy as a

result of these aggressive rate hikes? >> well, you know, it will have an impact. i'm not -- i'm not going to try to project whether there's a recession or not a recession, when it's going to happen. i'll leave that to others. i do find it interesting that people are taking out the rule books around what a recession really is and particularly given the employment situation we have here, almost full employment so i think it's clear that the rising rates will have an impact on the economy it's just exactly how that's going to impact customers and corporate clients i think is still to pay out because we're not seeing that stress yet in any significant way. >> at wells fargo, you remain a self-help story and turn-around story. it's been a big part of charlie sharp's strategy the expense number did come in a little bit higher. what are you telling investors about where that goes if we are facing a trickier economic

environment, a more volatile one? >> i think of it as really driving efficiency across our business, not cutting expenses when you think about it, we've got hundreds of different initiatives across the firm that we're on track to execute. when you do that, you're not reducing spend, you're in most cases improving the way you deliver services to clients. you're automating things, making it faster and easier to get their information or set up a new account. so there are a lot of benefits as we go through this plan we laid out a plan about a year and a half ago i think you'll see it continue to come through the numbers over the coming quarters. >> i guess you can't say anything about the fed asset cap. no guidance on when that changes, if na chthat changes >> yeah, we stay focused on the things we can control, making sure we're doing all the things we need to do. that's our top priority and that's where we're focused at this point. >> finally, mike, didn't zero in

on the loan story but that was good news, on consumers, on commercial loans how do you guys see that holding up if we do go into a little bit of a bumpier period and where would you expect the weakness and the warning signs to come from >> well, we've certainly seen good growth really across all of our portfolios which is good to see it's not just coming from one spot or one nook and cranny of the portfolio some is working capital needs, some is supply chain and inflation related but some is new business we're winning as well on the consumer side, it's really been pretty measured in terms of the growth that we've seen we're still seeing really good payment rates on products like credit cards really low delinquencies on most 69 other products. as we said, we're not seeing the stress, though i do think some of that growth will moderate a little bit as we

get further into the year. some of that is just the overall impact of what's happening in the markets and the economy. we'll see if that plays out. but i do think it will moderate a little bit as we go. >> mike, thank you for joining us on earnings day the stock is up more than 6%. show you where we are overall. that financial rally is really helping propel the s&p it's up 1.7% though every sector is higher. health care is right behind it, communication services, consumer discretionary all going strong nasdaq up 1.5% it's down almost 2% still for the week but again, we're cutting into the losses for the week solar is sitting out of the rally, after senator manchin reportedly poured cold water on climate funding from the administration we'll talk to the ceo of sunnova wt it means for his industry that stock down 4.6% indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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time for today's market dashboard. mike santoli has a good one.

he's got an eye on the health of the consumer's balance sheet which goes to the heart of some of these bank earnings and the reaction today. >> it fits with what the bank ceos are telling us which are consumers aren't showing much distress but relatively decent retail sales also economists saying even if we dip into recession, it won't be a harsh one this is the household financial obligations ratio. essentially all debt service burden on households as well as rent and mortgage, so it's not just interest, it's actually those other monthly household expenses you see it just plunged to historic lows. this is a 42-year chart back in the pandemic when there was all that stimulus, a huge use of those direct stimulus checks were to pay down balances and build up a little bit of a savings cushion. that has not yet gone away this is still a quarterly number but clearly we're coming from such low levels that even if we get back to where we were before

the pandemic, it's not pre-recessionary type numbers. that's what you saw right here in '07 and '08 so this kind of explains some of what we're hearing which is in contrast to some of the market-based indicators. >> and it explains why some people are saying no recession or not a deep recession. the great recession, as you noted, 2007, one of the reasons the economists cited it as so painful is because of the buildup in household and financial leverage and debt. so if we're going into recession this time, you're not -- it's odd, you're not seeing that. >> and it took years to work off. this right here, that was basically people walking away from debt and mortgages going bust it wasn't so much people paid it down, it was just that the debt had to be swept away so that's absolutely the case. now, rates going higher is going to drag this up. you'll have balances roll to higher rates, things like that but there's a little room for this to go up before you worry

about it >> mike, thank you we'll see you in the market zone. solar stocks not having a great day today on reports senator joe manchin will not support climate change funding in a new spending bill the ceo of sunnova discusses this. president biden is expected to deliver remarks in saudi arabia this hour he is there for his first presidential visit we'll take you there live as soon as it happens the dow is up about 560 or so. the high was just about 650. we'll be right back.

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solar stocks taking a dive this morning, coming back a little bit this afternoon. this comes after nbc reported senator joe manchin will not support increased spending to address climate change president biden releasing a statement saying if the senate will not move to tackle the climate crisis and strengthen our domestic clean energy industry, i will take strong executive action joining us now in an exclusive interview is sunnova ceo john berger i might have to cut you off to go to the president who is in saudi arabia expected to speak any moment now first, tell us this news on manchin. how critical was this federal spending for your business >> well, it's unfortunate that senator manchin reportedly decided not to move forward with

something that's been under negotiation for quite a while. i suspect that it is not over and that there will be something that will happen, whether it's under the tax extenders package but something will happen here but the critical point to make with regards to sunnova and a couple of my competitors is the investment tax credit is still in place, is in place for next year and beyond that, although there's a step -down post 2023 so this does not affect our growth plans at all for '22 or next year. we're looking at the long term and looking to see what the impact is. this would have lowered inflation, it would have lowered energy prices. it is going to hurt some people in the field in terms of the men and women that do work in the field. those wages are going to have to come down. the manufacturing jobs for solar modules and batteries are not going to come as fast here in

the united states so it's hurting the little guy it's not going to hurt the big companies like sunnova near as much so we're really hoping that the senate and the house and the president can really get something done here. but in the near term and even the intermediate term, not as much of an impact at all but certainly it's good long-term energy policy. the other thing i want to point out is if this doesn't necessarily hit solar. this is about oil and gas, carbon sequestration, biofuels, hydrogen so it hits some of these other sectors much harder than us. much, much harder than us, so that's something folks need to be aware of as well. >> you said it will lower inflation because i think reportedly one of manchin's concerns as everyone's concern is, is inflation and you can just hear the republicans saying another spending package, throwing more money into this economy at a time where it's already overheated and measures are dealing with rising costs of living

you say it's actually disinflationary? explain that. >> absolutely. it's a place where you can lower energy prices. really it's probably one of the, if not the only place, one of the very few places you can, where you can bring energy costs, power for your home and power for your car even now with electric vehicles down in price. so you pull that subsidy out of the marketplace, that price is going to rise up and therefore it's going to have a counter or inflationary impact by not having the spending and investment there so this is something that was very good for the working men and women in the country again, i think that's why senator manchin and others will come back and ends up doing this at this point in time a make a point about all of energy to follow on this inflationary impact if you love oil and gas stocks, and ei know a lot of people hav those and are looking for prices of oil, natural gas to go up

then you love solar stocks because prices have moved up materially so this tax credit doesn't impact us near as much as people think it will do and it's going -- it needs to have an impact on the consumer to bring the price down for the consumer because oil, natural gas and coal have moved up so much. >> i think people look at your stocks as a little more discretionary than oil and gas when it comes to consumer demand john, what does it cost to install solar panels and how has that price changed as a result of you've felt the cost of inflation too and the supply shortage >> yes so on average it's about $32,000 to install we finance, and so the customer has an immediate savings, about 20%. but that's also climbed. even after we've raised prices about 15 to 20% depending on the region across the country the last few months. and so we are still getting savings. in some cases that savings can be quite significant, as much as

50% savings. and so there's still a very powerful value incentive what we're selling in terms of energy and power, it's a necessity. nobody goes home and says i'm not going to pay the power bill, i'm not going to pay the water bill so this is something that is not discretionary. we're not seeing demand drop off at all we had our biggest sales day on june 30th at the end of the quarter. so we're seeing tremendous demand for something that is a necessity. this is not a discretionary sale >> how many people fund it via loans, and how have rising interest rates affected that >> the costs have gone up. but the utility prices and rates have gone up even more, much more we expect to continue to see that as we go into the year, even if oil, natural gas and coal were to flat line here in price and not increase anymore, which i do think that we'll probably get a rebound here in those commodities as you move

forward in the year. but you're still going to see quite a bit of savings, significant savings, despite interest rates which look to have flat lined for at least a little while here. now, i want to point out the loan comment and that's a good question because the investment tax credit ends at the end of 2023 for individuals, but not for companies like us. so if it's the loan market you're really worried about, we'll have our lease and power purchase agreements and maybe the loans won't sell as much in 2024 but as an individual you won't have the option to use a loan, you'll have to come to big companies like us for the business, so we could pick up a significant amount of business as well as one or two other companies in the united states again, i don't think that's good policy as much as it would benefit us, but and the reason again that i think the senate will get this fixed at some point.

>> i guess tbd on what kind of executive action the president is threatening to take, what that could look like john, stay close thank you very much for joining us. >> thank you, sara. energy will be one of the topics discussed during tonight's cnbc special "taking stock, the state of the markets. don't miss stock picks tonight at 6:00 p.m. eastern time on cnbc here's where we stand right now. the dow is up about 555. every sector is higher in the s&p. financials are leading the way not every day you see a double-digit move in citigroup that's been the reaction to earnings the stock is up 14%. almost all the dow stocks are rallying as well you've got, i think -- png is the only one lower up next, the big picture on whether inflation is starting to produce cracks in the luxury retail industry. a few new clues today. we're awaiting remarks from president biden.

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in today's big picture, a pulse check on the luxury consumer turns out she's doing mostly just fine, everywhere except for china, where there have been lockdowns because of covid burberry only 1% sales growth but 16% if you take out china. on the u.s., julie brown said there's a big shift from buying slides and sneakers to outer wear and leather goods as trends have shifted post covid but there is no real impact on the rising cost of living on the

consumer brown did reference strong credit card spend in high income consumers saying it's still a positive move in our sector. similar story for cartier richemont. up 25% in the americas it's getting stung by chinese lockdowns as luxury players are heavily exposed there and athat's punishing the stocks lately but they did cite robust domestic demand and a return in tourist spending a survey found 76% of respondents with $200,000 or more plan to purchase the same am amount, vacation, travel, followed by shoes, accessories, and handbags bottom line, inflation hasn't hit the luxury buyer and neither has the falling stock market everyone is getting prepared for recession but these big global

luxury players just aren't seeing it at this point. united health adding well over 100 points to today's dow rally. find out why investors are so excited about the company's earnings beat. plus big tech price target cuts and banks bouncing back when we take you inside the market zone. dow up 556 s&p rallying more than 1.5%. what do you want to leave behind? that's your why. it's your purpose, and we will work with you every step of the way to achieve it.

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power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity we're taking you straight to jeddah, saudi arabia, to hear from president biden >> the crown prince and all the ministers from the energy minister to the sports minister all the way down the line.

and got the chance to talk to basically the entire saudi government and thanks to many months of quiet diplomacy by the staff we've accomplished some significant business today first, as you saw this morning, the saudis will open their airspace to all civilian carriers that is a big deal a big deal not only symbolically but substantively it's a big deal. it means saudi airspace is now open to flights to and from israel this is the first tangible step in a path of what i hope will eventually be a broader normalization of relations second, we concluded a historic deal to transform a flash point at the heart of the middle east wars at the heart of peace international peacekeepers will leave the island in the red sea where they have been for over 40 years. five american soldiers died on

this strategically located island in 2020 and it's important to remember them today. now thanks to this breakthrough, this island will be open to tourism and economic development while retaining all necessary security arrangements and the present and freedom of navigation of all parties, including israel third, we agreed to work together to extending the yemen cease-fire you know the carnage in yemen. it's been in place three months resulting in the most peaceful period in yemen in seven years we further agreed to pursue a diplomatic process to achieve a wider settlement in yemen. the saudis will deliver food and humanitarian goods to civilians. in this context we discussed saudi arabia's security needs to defend the kingdom given very real threats from iran and iran's proxies

fourth, we concluded several new arrangements to better position our nations for the coming decades. saudi arabia will invest in new u.s.-led technology to develop and secure a reliable 5g and 6g networks both here and in the future in developing countries, to coordinate with a partnership for global initiative, global infrastructure and investment, which i put together at the g7 this new technology solution for 5g called open rand will outcompete other platforms, including from china saudi arabia will also partner with us on a far-reaching clean energy initiative focused on green hydrogen, solar, carbon capture, nuclear and other projects to accelerate the world's clean energy transition and to help the u.s. clean energy industry set global standards. and fifth, we had a good discussion on ensuring global energy security and adequate oil supplies to support global

economic growth. that will begin shortly. and i'm doing all i can to increase the supply for the united states of america, which i expect to happen the saudis share that urgency and based on our discussions today i expect we'll see further steps in the coming weeks. finally, we discussed human rights and the need for political reform as always, as i always do, i made clear that the topic was vitally important to me and to the united states. with respect to the murder of khashoggi, i raised it at the top of the meeting making it clear what i thought of it at the time and what i think of it now and i was straightforward and direct in discussing it. i made my view crystal clear i said very straightforwardly, for an american president to be silent on an issue of human rights is inconsistent with who we are and who i am. i'll always stand up for our values so that's a quick summary of

tonight's outcomes tomorrow with nine leaders from around the region, we'll have more one thing we will discuss is the multi-billion commitment of the gcc to invest in the partnership for global infrastructure investment which i announced at the g7 last month to help address infrastructure needs of low and middle income countries who don't have the wherewithal to borrow the funds to meet the needs of their people. after years of failed efforts, we have now finalized an agreement to connect iraq's electric grid to the gcc grids through kuwait and saudi arabia, deepening iraq's integration into the region and reducing its dependence on iran it was pointed out, i was reminded by staff at the time at the meeting that i tried to do that back in the early days of my vice presidency, finally it's being done tomorrow i'll also be laying out an affirmative framework for

america's engagement in the middle east to build on these important steps going forward. the bottom line is this trip is about once again positioning america in this region for the future we are not going to leave a vacuum in the middle east for russia or china to fill and we're getting results. i'll take a couple of questions now. >> what was the crown prince's response to your comments about khashoggi? >> he basically said that he -- he was not personally responsible for it i indicated i thought he was he said he was not personally responsible for it and he took action against those who were responsible. and then i went on to talk more about how that dealing with any opposition or criticism of the saudi administration and other countries was view by me as a violation of human rights.

>> we just heard from jamal khashoggi's wife who said after this visit the blood of mbs' next victim is on your hands what do you say to mrs. khashoggi. >> i'm sorry she feels that way. i was straightforward back then. i was straightforward today. this is a meeting not -- i didn't come here to meet with the crown prince i came here to meet with the gcc and nine nations to deal with the security and the needs of the free world, in particular the united states, and not leave a vacuum here, which was happening as it has in other parts of the world >> on gas prices if i may, you said that we'll see relief at some point in the not too distant future what is the message to americans who are looking for that relief now? when should they expect to see a real change in prices. >> there's been a real change. they have been coming down every single day to the best of my knowledge. >> when will we see the impact of this visit? >> i suspect not for another

couple weeks and we'll see more when we see gas stations start to lower their price consistent with what they're paying for the oil. >> do you regret calling the saudis a pariah. >> i don't regret anything i said i just said i don't regret anything i said. what happened to khashoggi was outrageous. >> you're coming under a lot of fire for your fist bump with the crown prince also, how can you be sure that another incident like jamal khashoggi won't happen again >> god love you. how can i possibly be sure of any of that. i just made it clear if anything occurs like that again, they'll get that response and much more. look, you've heard me say before, and when i criticize xi jinping for slave labor and what

they're doing in the western mountains of china and he said i had no right to criticize china. i said, look, i am president of the united states of america for the united states president to remain silent on a clear violation of human rights is totally inconsistent with who we are, what we are and what we would do what we believe. and so i'm not going to remain silent can i predict anything is going to happen, let alone here or any other part of the world? no but i don't know why you're all so surprised the way i react no one has ever wondered do i mean what i say. the question is do i sometimes say all that i mean. >> what about the response to the fist pump -- >> joe manchin made significant news which appears to be torpedoing what was one of your biggest priorities as relates to energy and climate back at home. your message to those americans right now looking for that relief that could have a wide impact as it affects the climate and energy specifically? >> i am not going to wait and

use every power i have as president to continue to fulfill my pledge to deal toward dealing with global warming. >> is joe manchin negotiating in good faith >> i didn't negotiate with joe manchin. i have no idea >> just about 11:00 p.m. there in jeddah, saudi arabia, the president's first visit as president there. he said we had a series of good meetings in saudi arabia as it relates to energy, which is of course something that investors globally have been watching, president biden did say that he had a good discussion on ensuring global energy security and adequate oil supplies he sort of teased there could be something to come. he said he's doing all he can to increase the supply for the u.s. and based on the discussions that he has had with the saudis, biden expects further steps in the coming weeks and then was asked about it again on oil. he said expect something in the coming weeks from saudi arabia on energy. he also did address jamal khashoggi and the murder saying

he brought it up directly. there was a question going in about whether that would come up, obviously controversial in the discussions with mohammed bin salman, the crown prince of saudi arabia with that let's go straight into the "closing bell" market zone we've got about five minutes into the close and we're just about at session highs 620 on the dow the high was 650 driven by strong performance in the banks. mike santoli is joining us also wes krill apologies, wes, we'll have to keep it a little short because of the president mike, i want to go to you first on oil prices, which actually are firmer biden said he believes they have been coming down every day not today, they're up almost 2% and teasing that saudi may do something, like boost energy supply is that a surprise >> i don't think it's a surprise that that's the objective. we'll see if there's actual new supply that comes out of it. i think with crude down 20 some percent from its highs, wholesale gasoline prices down

again and steeply in the last few weeks, it's sort of taken the pressure slightly off that part of the market and i think it's one of the reasons why you have not seen new lows in equities since mid-june along with the fact that yields have been able to come in as well so obviously more help would be welcome, but so far we've kind of stepped back from the ledge on that issue. >> wes, i want to get to you because we don't hear from you guys too much at dimensional tell us a little bit about your strategy, your long-time value, you manage a ton of money. what are you seeing as far as the models and opportunities in this kind of market? >> yeah, thank you for having me on today we have a systematic investment approach that seeks to pursue higher expected returns. you can think of it as taking the appealing aspects of index investing and having a flexible daily approach the importance of that daily approach is really so we can use up-to-date information and market prices. when you think about some of the conversations happening today

with the energy sector and even going further back in the year just looking at the defensive sector rally, to us that's connected to a value play. that's using market prices the sectors that have performed techly ly -- particularly wen 2022 have been on the lower part of the spectrum. we believe in value investing and think value premiums have been showing up even within those sectors. so it's an opportunity for investors to pursue rreturns but do it broadly across sectors. >> even if we see signs inflation is peaking, not just in oil prices but food prices and even in some of the inflation expectation data like we got today from university of michigan >> yeah, it's another reason i like to look at market prices. it's a good sign of what investors expect for the future. if you look at break-even

inflation rate, that's a proxy for the market's expectation of inflation in the future. and the one year break-even inflation has been interesting because it peaked at over 5 back in march it's now down under 4. last time i checked it was 3.4 that's telling us that the market is expecting inflation to cool that would imply inflation over the next three months of 3.4%. >> wes crill, we'll have to have you back on. $650 billion in systemic assets under management appreciate it for now, wes, from dimensional. as we head into the bell here, into the close, 640 points higher on the dow. that is near a session high as we speak you've got most dow stocks higher, we're still down for the week, but today has been a pretty nice recovery united health is adding 173 points to the dow. strong everyonings this morning. jpmorgan back above the price that it lost after earnings

yesterday. american express, goldman sachs, it's all about the banks today financials very strong in the session, they're rallying 3.5% citigroup the best of all of them it was the cheapest going in, really strong reaction to earnings, up 13.25%. every sector will go out with a gain on the day. the nasdaq up 1.75%. still declines on the week but the first up day for the week and it ends on a high note that's it for me into "overtime" with scott all right, sara, thanks so much welcome, everybody, to "overtime. i'm scott apner. we're just getting started right here at post 9 at the new york stock exchange let's get right to our top of the tape today why stocks had such a strong session and what that might mean for where they could go from here a ton of big earnings are coming next week. let's ask tom lee. he's with me here at post 9. it's good to see you on a big day for stocks what was today about why did we rally was it about a good retail number but not too good?