they generate winds, push all the dust from the desert down into the city. absolutely remarkable. >> it is. i always associated monsoons with heavy rain. that is dust storm. really something else. our time is up. charles payne in for neil today. so, charles, it is yours. charles: stuart, have a great weekend. we have busy two hours on "coast to coast." i'm charles payne in for neil cavuto. economy cooling in jewel the economy adding 157,000 jobs, but white house economic chief larry kudlow he told stuart varney the economy is showing no signs of slowing down. >> this is a strong number but the trends are really interesting. just some notes here. 224,000 average monthly for the last three months. here is one for you. 215,000 for average of six months. i think, stu, right now, at least my reading of the strong economy, we're going to create

2.6, 2.8 million new jobs in 2018. that is good number. charles: deirdre bolton in looking at details. >> look at number of jobs added in july, charles, the number missing consensus estimate by 33,000 but look at long-term trends what we want to focus on. including revisions of may and june numbers paint a very strong picture for the year. in may and june, 59,000 more jobs createdded those two months than previously reported. if you add those in the past 12 months, whopping 327,000 jobs added to u.s. economy that is the highest level since april 1995. what you end up with the 3.9 unemployment figure. one particular area of strength is manufacturing. this is third place. this 37,000 jobs added that is pretty important. president trump making that a campaign promise in 2016 that he would restore manufacturing in

the u.s. this is clearly a solid data point in his favor. now some feared that perhaps the trump administration trade fights could weigh on jobs in this sector, so far not showing up. unemployment rates coming down in race and gender groups. you see the big winners this month alone were hispanic men, white men. look at hispanic levels of for men, lowest since records began in 2003. bright spots as well. average hourly earnings. you will see green on the screens there, year on year they grew. you have increase of 2.7%. want to highlight if you look at figure month to month this is little bit lower than what we saw last month. a lot of economists still really see this as sluggish figure. but the bottom line is, this means the fed stays on track for a september rate hike. in fact if you look at fed funds

futures, the market is pricing in a 96% chance that the fed raises rates as expected in september, because this is, it is perfect kind of goldilocks set of data, this included, charles. back to you. charles: thank you very much, deirdre. here to discuss kaltbaum capital management gary kaltbaum. moody's chief economist, john lonski, and "wall street journal" shelby holiday. ii want to delve into this a little further. is 31,000 black americans epterred into the service force. 126,000 more hispanics entered labors force. 146,000 were more employed. 114,000 women entered labor force. 138,000 the employed. high school only graduates, 484,000 entered the job market. 507,000 of them got jobs. shelby this is remarkable number. >> glad you're pointing that

out. flying under the radar of the overall picture. those are impressive numbers. we should hear trump talk about the numbers in the future. i expect him to hammer on that. republicans want him to hammer on that. the economy is very strong as deirdre said is said. everyone can cherry-pick a job report, but the president tends to distract from his own strong economy. republicans heading into midterms hope he gets focused. charles: op-ed from one of our cool leagues kim strassel. >> called it whiffing. charles: no doubt about that would i be preaching this stuff all day long, john. not just this, going into the heartland over the weekend. manufacturing jobs. >> way up. it is incredible. over the past 12 months we had steepest percentage increase by factory jobs since 1984. those are the days of ronald reagan. in 1984 the real economy grew by more than 7%. charles: so can we, i mean, too

lofty of a goal? i know early, the atlanta fed saying this quarter 5%, we know that will change a lot. can we start to really believe, 3, 4% is possible down the road? >> does that really matter that much? i will take 3% growth. really happy with that early in the show you broughtbrought out the important fact people down and out in the labor force not getting jobs are finally able to get jobs. fed chairman said, if you're looking for a job today said you will find one. that wasn't true, three, five years ago. >> not only that, wages are ticking up. it is seen as sluggish and growing and ramp up quicker than earlier. hopefully the trend continues people making more money. charles: so they are, we're seeing that shift. it is a remarkable shift in the market and market seems to be okay with this number. >> look, i would love to complain about something but i really can't right now.

the 157 should be better, but a couple of things that are not talked about enough. 3.9% unemployment. two years ago that would have been a dream. you have a 156 million people now working. i believe that's a record. you covered a lot of those numbers also, but for me, the biggest number is the number of people on welfare continues to crash. continues to drop. these are people not living off the taxpayer but now producing because they're in jobs. and as long as these things continue, nothing but a vertuous cycle. but we need to stay on top of it. never get too full of ourselves. when things are going good, the white house should be paranoid to make sure it continues to go good. charles: i think president trump surrounded himself with the right people. kudlow and those guys will not be complacent. wilbur ross will never be complacent i don't think.

shelby, this gets back to the world politics in the sense we had the tax cuts. we're going through amazing corporate earnings season. the second quarter is better than anyone anticipated. and so one of the complaints is that, yeah, corporate america is benefited. the wealthiest benefited. when you see this many people with only high school diplomas to the workforce and find jobs. that means the same tide is lifting all ships. >> i think it is interesting whether the white house capitalizes on this message. tax cuts as much as they benefited people are seen unpopularly. they're still polling unpopularly in various polls. it will be interesting to see if the republicans, particularly republicans come out and the white house emphasize how great it is for people getting jobs. anybody getting a raise has to be feeling pretty good in some sense especially if they haven't been in the workforce and now reentering. >> charles, i would be running ads, if i was the white house

24/7, nancy pelosi wanting tax hikes. i would be running video from venezuela for all these socialists that are coming out t of the woodwork saying that is the way to greatness. this should be pretty damn easy, considering socialism sucks and capitalism is what takes people out of poverty and done the great job throughout the ages. i am hoping they do that and do that very loud and very clear. charles: meantime, the tariff issue continues to ratchet higher and higher. china this morning threatening new tariffs on 60 approximately dollars of u.s. goods. by the tame token, gary, news out of china, the people's bank of china actually took measures to stop their currency from dropping. i think that's critical. i think that is the perhaps the biggest news out of china many are saying or were saying they could simply devalue their currency. obviously is not that simple. they spent a trillion dollars propping it over the past year.

>> recently it has been simple. that is all china is doing, china is easy, easy, easy monetary policy over the last few weeks. there is something going on there. china keeps reporting every quarter 6.7% gdp which i doubt. i think they have big debt issues decides all the tariffs and i think there is something up. when a market is dropping to bear market while our market is strong i think something is going on. i get the idea that the white house wants to press it because we have strength. be careful what you wish for. so far the amount of tariffs in the system is much ado about nothing but if we get into that 200 billion, i know trump talked about 500 billion, i think there is going to be some serious repercussions both economically and market. you don't want to lose the wealth effect of the market. you don't want to see the economy to south as you head into an election. charles: you know, the idea that we should think it is always going to be smooth sailing, never interrupted.

this is greater cause than a bad quarter or derailing the economy for a few months, if indeed we can turn the tide, get real honest to goodness trade against someone who taken advantage of it and they are vulnerable. we saw exports orders drop more months in a row to contraction. their debt level is 350% of gdp. they have a credit crisis. people say the pboc is pumping the yuan to fight this. no, they have been pumping money in the banks to prop up bad debt. that is what they have been doing. >> unlike our equity market up 6% year-to-date the shanghai composite is down more than 17 percent. they are in a rough place. we definitely have bargaining power as far as trade negotiations with china go. i wouldn't be surprised if we get any increase in tariffs it proves to be quite temporary, a year from now, tariffs on average are actually lower than they are today. >> whine does have other levers it can pull to retaliate. doesn't have to be tit-for-tat.

charles: they can't do tit-for-tat tariffs. >> they can devalue currency. charles: they took measures this morning not to devalue currency anymore. >> china doesn't play, they don't play on the same playing field. they are comfortable doing things that the united states would never do. yes, while the goal is to get free and i fair trade, the question can it ever be truly free and frayed? charles: can be a lot better than it is right now. the idea we should let them roll over us because they always can, listen this is command economy. we've seen every economy like this at some point crash. to gary's point, do we believe the 6.5% number? >> no. charles: don't they have a massive debt issue? have they been trying to stop capital flight for years? let's not overestimate how great china's hand is right now. i think we're doing ourselves disfavor. go ahead, gary. >> i have no absolutely no problem going after trade. i have problems with terrorists. when you get into this type of

war you're only good as what your counterparty is going to do, so far all evidence nobody is laying down. let's hope that happens and we get rid tariffs all together. i'm not so sure that is going to happen. my big worry is, as we head into a midterm election that these tariffs start to escalate. charles: right. >> all heck breaks loose. i keep fingers crossed cooler heads prevail. charles: ubs did poll of businesses and they said are you okay with increasing tariffs on countries. 71% said. these are people who are in the business economy but we approve. 66% on mexico, 64% on europe, 64% on canada. businesses say they understand what is going on. i think they want us to fight back. >> i assuming in part they will not pay the tariffs, why they come up with this type of answer. if it hits them directly i'm pretty sure --

charles: you know why it hits directly, everyone of these guys, i will pass the price on, you know that, come on. it will not hit directly. >> there is difference between small and big. charles: wide variety. ups -- ubs has some of the best polls out there. >> small businesses tend to favor tariffs. 71% is not a small number. charles: not a small number. >> i think the important fact despite all the trade friction, all the bad news on tariffs president trump's popularity is rising according to the "rasmussen poll." charles: 29% of black americans. can you imagine that? that blew me away. guess what though, corroborated by the jobs numbers. if you talk to people how they feel without any outside influence, how could you not feel better at least about the economy? >> the only people crying are people live in high income taxed states like new york and california. charles: someone tweets me, charlie, you can say that.

no, i took one for the team. i live in new jersey. all right. guys, thank you all very much. meanwhile apple making history and really just not looking back. why the company's next big move could be even more important than the trillion dollar number you're looking at. of course tune in tonight to my show, "making money." we have a lot to talk about. last night i talked about smucker's. it is up eight bucks. why you have to watch the show. i break a lot of things down for you. watch the show tonight at 6:00 p.m.

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holdings as we went into the latest surge. now it is valued at $50 billion. that is 5% stake in apple. that is just mr. buffett and berkshire hathaway. you look at mutual funds and etfs, vanguard, blackrock, state street, they have a 16% stake in apple. when you break it down, spdr s&p 500 etf, they have 55.8 million shares. i-shares u.s. tech etf, their exposure is 17% of the portfolio, roughly $4.1 billion in holdings on apple. talk about winners and losers with apple, you remember john sculley? he is the guy who had unfortunate history replacing steve jobs, getting pushed out by steve jobs, former ceo. he sold the apple stock he had, began buying it after introduction of the iphone. he has 60% of his net worth is apple stock. that net worth is worth a lot more today than it was just a month ago. charles?

charles: adam shapiro, thank you very, very much. so the question now of course what is next for the tech giant. to tech analyst. russ, first of all, great seeing you. it has been a long time. >> i know it has been a while. charles: what is next? they're sitting on a pile of cash. there have been some investors so long trying to get tim cook to be more acquisitive with it. he has been pretty happy buying back his own stock. >> right. charles: rewarding building internally. >> they have been pretty safe and i think, the big thing that they haven't really explored as much as they should is the service industry. they started dipping into that with apple music. got some people paying for it. spotify is still crushing them. but people buy the phones and computers every year, what have you. they don't like have a monthly charge guaranteed out of people, if they start dipping into that more that is steady income they haven't tapped in. charles: the stock is trading

forward ratio of 15.3. that is extraordinarily low than the other big tech names it is lumped into. >> sure. charles: sexier, hot, fast-moving industries, do you think apple thinks if we use the cash pile, bought spotify, a few cloud plays, fortify the strength as company then our stock would go higher? >> i don't know that they're that concerned but this steady, focused approach obviously worked for them. they focus on a few things they nail but there is demand looking the next 10 years. that is where the money is, the service plays. they're not as invested in that front. charles: do they want to play catch-up? are they so confident -- look what microsoft was able to do dipping into the cloud. >> sure. charles: finally ibm had an epiphany, they had a good earnings report because of cloud. >> right. charles: some of the companies also-rans look like they would be part of historic tech, not

dust heap, not players right now found a way to get back into the game? >> i think apple is less motivated than they were. they were in trouble. they needed to make huge moves. apple can be patient and thoughtful, swoop in say this is the right place. not like amazon they are reaching out everywhere they can. they have always been very, very focused. charles: productwise. >> yeah. charles: the idea, as the story is being written, that steve jobs was a visionary. >> sure. charles: tim cook now is the guy who has been able to execute but what is the next big thing? >> you have got a phone coming out. there will be a phone this fall for sure. i don't think it will be as world-changing as the iphone x was. that was a big departure for them. they have this steady phone. the big question people have about cook, whether he can provide jaw-dropping moment. honestly it hasn't happened yet. he makes good products. there hasn't been steve jobs, whoa, moment. i don't think it will be this year, that is always something people are wondering, can apple

make the leap. charles: have we given up on the watch being that product? >> yeah. i can't imagine it will pivot to world-changing product they wanted it to be. charles: you know this industry we develop, what could it be? >> yeah. charles: you have the phone, tablet, the ipad, all of these things made history. >> sure. charles: they weren't new per se but they were revolutionizing. >> you know, again, i know they have dipped into it a bit. self-driving tech is going to change the world for sure. whether that is something they really want to go hard into, whether test balloons is kind of up in the air but i think there is a lot of money could be made there. charles: the digital personal assistant, they had siri before anyone else, all of sudden alexa taken off. what happened? did they kind -- >> that was a software problem, really. alexa, hears most of what you're saying, understanding most of what you're saying. at launch siri has trouble, still kind of a trouble. charles: they have to get into

that space, don't they? isn't that the entree to that and getting into home? >> the problem with tech, so locked down to apple's ecosystem which is profitable for them, it limits, i want to play spotify on that thing or i can but it is cumbersome. charles: yeah. >> they need to balance their willingness to keep things locked down. charles: balance laking act. >> it is. charles: to your point it worked for them, amazon the thing that caught me when i was reading amazon's earnings reports, tens of thousands of developers working on devices in 150 countries for alexa. >> yeah. charles: it will be in everything. >> it is in everything. in every room of my house to be honest. i use it all over the place. it is spectacular, very anticipateless. apple has tried to nail it -- charles: every place where she is not around to unplug them. i'm a little nervous. thank you, buddy. u.s. treasury is now on track to do something it hasn't

done in two decades. it is not a milestone to boast about. so what does it mean for us? we're talking about the growing deficit next. with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? and i'm still going for my best even though i live with a higher risk of stroke due to afib not caused by a heart valve problem.

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charles: got growing tariff worries. investors and consumers but you know, the rising deficit, the budget deficit, this is a real threat. this is not about maybe, could, this is something really building right now. the united states on track to borrow the most money since 2018 former reagan economic advisor art laffer is with us. art, people are saying this is what happens when you have supply-side econmics or reagan -nomics, you have initial lull, cut all taxes. when the treasury, velocity of money kicks in, coffers of treasury start to build up, you pay off that. is that the gameplan here, do you think? >> hopefully.

what we did with reagan of course, we borrowed lots and lots of money to reif you bush, the u.s., and create economic growth and hoped it work. and it did work. surpluses under bill clinton, response to reaganomics and what we did there. you can't grow an economy frankly by overtaxing it. it doesn't work that way. you can't balance budget on unemployed people. it just doesn't happen. charles: by same token you never get spending down with the same spending bill. >> that's exactly right. charles: we're in a quandary of sorts, because this is republican party that ran on sort of the message of fiscal discipline. we haven't seen it so far. to be quite frank, we've rarely seen it since ronald reagan. that is where a lot of people are concerned. >> don't confuse fiscal discipline with party label. all the parties are all fiscally unsound. every republican wants to spend more. every democrat wants to spend

more. it is not their money, charles. they're spending your money, our money. what can be giving a full checkbook and spending someone else's money. we have to change the system to bring spending under control. charles: how do we do that art? we've been talking about for a long time. >> very simple. put them on commission. if the economy grows at 3%, they get their pay. if it grows at 4%. they get double their pay. it grows at 5%, they get triple grows at 2%, they get nothing and 1%, they lose their job. they would never vote -- charles: "glengarry glen ross," first prize, money. second prize, stake knives. >> when you're spending other people's money you have no fiscal discipline whatsoever. you leave congress and someone else has to deal with the

cleanup. charles: we do also have to be honest though, it is voters too. these voters want some voters want their representatives to bring back the bridge to know where. you know -- nowhere. we complain about these folks but these incumbents get 90% of the vote. they do cakewalks get back in. some of these folks are 90 years old, art. >> what is wrong with that? charles: there is nothing wrong with that, if you've been doing same thing, running up debt and deficits for 20, 30, 40 years, why do they, keep getting rewarded being reelected? >> who knows. who knows. when you realize the u.s. is the best functioning country in the world, not the worst. when you look at some other countries and their debt problems, their spending problems, their corruption problems, they're even worse than the u.s. in fact a lot worse than the u.s. we are the best functioning country in the world, we have all these problems. can you imagine what it is like

in other countries? it is crazy. it is crazy. charles: great to visit but let me ask you about the jobs report. did you get a chance to comb through this thing at all? >> i did, i did. i think couple things are really important. the revision from the past couple months are very important this made this a very large increase in jobs month if you include the revisions. number two, the low growth in wages, a lot of new people coming into the labor force are low-wage workers. when you get a larger share of employees being low-wage workers it tends to distort the numbers down. if you look at it like same-store sales wage growth, would you find that number a lot higher than it is. the last thing when you look at the real change that has got to happen in america, is the participation rate. there are 260 million adult americans in the u.s. we need to raise that participation rate three percentage points. that would raise about 7.8 million new jobs that need to be done within the next two years, in addition to the jobs

that we had normally. charles: wow. >> that is where we are. that is what reagan did. that is what kennedy did. that is what needs to be done to bring our standard of living where it was before w and obama ruined the whole thing. charles: something, art, i agree 1000%. you look at participation, not the rate but just labor force, people coming back in. that is the is ultimate survey. forget about the other surveys. if people have enough confidence to get off the sofa, dust off the resume', saying i will hit the bricks because i think there is an opportunity out there, that speaks volumes for this country, doesn't it? >> that is exactly right. along with the participation rate comes productivity growth, average hour growth, all of that. you mentioned part-time work declined dramatically for economic reasons. that adds to average hours dramatically. if all the part-time people getful time jobs, average hours get increased. that compound what i think will be a huge boom in the economy

over next two or three years because of participation, average hours in productivity. when that happens, hold on to your hats because it will be a fun, fun ride. charles: art, i said this at the top of the show but i think it bears, i got to share it with you and audience again, talking about labor force participation. 131,000 more black americans came into the job market, 95,000 net new jobs. 126,000 hispanics. 146,000, to go with 200,000 month before got jobs. 114,000 women came into the labor force. 138,000 got jobs. 464,000 folks with high school diplomas came back into the labor force. 507 net new jobs. these are remarkable. people that couldn't get a job over last 10 years. >> you can't worry about wage growth, these people are not getting high paid jobs. they are starting out at the bottom. will earn a lot more in the

future. look at wage growth, that always distorts wage growth down substantially. charles: right. >> i would not be disappointed with wage growth at all and i would be happy with exactly what you described. exactly what happened during reagan. i remember robert reich saying a nation of hamburger flippers, that sort of stupid stuff. you get hamburger flippers first, then better-paid jobs. we're on track to have spectacular five-year period. charles: thank you very much, art. >> charles, always great to be with you. charles: trump's intel team issuing a strong warning against election meddling. is it enough to change the narrative about trump and russia next? ♪ ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way once-daily anoro contains two medicines called bronchodilators

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charles: the "countdown" begins, 95 days to the midterm elections and america's top intel officials are loudly sounding the warning that russia still meddling.

fox business's kristina partsinevelos at the white house. reporter: thank you, yes, russia meddling continues and white house wants america to know that they are paying attention. the space behind me was packed with security officials, including director of national intelligence, dan coats. dan coats was asked about the meeting in president putin in helsinki. he admitted he didn't have the full details of that meeting but he did weigh in on russian meddling. >> we acknowledge the threat is real, it is continuing, we're doing everything we can to have a legitimate selection that the american people can have trust in -- election. reporter: meanwhile, yesterday the president spoke at a rally in pennsylvania and also weighed in on his meeting with president putin. >> in helsinki i had a great meeting with putin. we discussed everything. we got along really well. by the way, that's a good thing, not a bad thing.

that's a really good thing. now we're being hindered by the russian hoax. it's a hoax, okay? >> it has been confirmed that the russia did meddle in the 2016 election. earlier facebook deleted 32 accounts on facebook and instagram saying they were bad actors behind these accounts. they said yes there was russian fingerprints on there and connections but wouldn't admit russia is behind it. we have senate moving forward, bipartisan group of senators to put forth a bill to impose tougher sanctions on russia if they interfere were the elections. federal charges, against anyone, not just russia, anyone that hacks voting system in general elections, because it has bipartisan support, possibility it could most likely pass through the senate. charles: it better. he have one is complaining about it. if this doesn't make it through, what could, right in. >> exactly. charles: thank you very much. a rare sight. five of the top u.s. intel

officials speaking to the media in a media room from the white house. so is president trump sending a message he is really taking the russian threat seriously? former assistant secretary of state for bush 43, former navy intel officer robert charles. robert, how surprised were you, and how did it make you feel to see everyone there, all the key players on our intel side making these strong comments about what's going on and what they plan to do about it? >> i think they're sending a unifying message and they're making it very clear they do take it seriously. i think probably the russian summit was an inflection point internally. the president sort of got a help saw here and had to turn around, i will not be a taken as fool. i know what is going on. i think, charles, we need to keep historical perspective and the principle of divide and conquer goes back to caesar.

soviet communists were excellent at it. putin is soviet communist dressed up as a democrat. in 1920s, same thing happened. in 1979 when we were weak under jimmy carter they hit afghanistan. under obama, we thought red lines didn't matter they hit ukraine and georgia. what is critical clear, they have had this approach to trying to disrupt democracies and when we are disunited, when we were ununified, when we are doubting ourselves, and russia, china, iran and are trying it but russia is more effective at it, when we buy into the storyline play into the idea we will be disunited we will fight with ourselves, they win. it ultimately causes us to be distracted internally. we have to stop that. charles: that is a tall order, considering the overall state and where we are incivility crisis. >> it is. charles: the people, really an awful thing. i tell people all the time, we

had amazing jobs report. we're running 215,000 jobs every month this year. what happens when we hit recession? they know our fault lines. that should tell us something right then and there. let me ask you about our abilities though because i keep reading we're sort of beefing up and we're on the defensive. do we ever go on the offensive? >> let me say it this way. we have the capacity to do many things. we operate consistent with international norms, and we tend to try to protect ourselves before we ever try to be offensive. but, you know, i want to come back to a basic point, chars, it is this. when every american goes to sleep at night, they have more in common with other americans than they do anyone in the world. we forget that so readily. we think tactically and politically. in reality, this is he is very important point, three articles of constitution and bill of rights bind us together like

nothing in the world. the russians trying to make us forget that. look here in the left hand and forget the right hand. we can't forget who we are. we have unified country build on ideals. how to implement that is a difference of opinion. i know that is trite but at the end the russians are trying through their digital propaganda to get us to forget who we are. charles: word of wisdom, robert charles, thank you. >> yes, sir. charles: analysts were quiet about les moonves about the earnings call. charlie gasparino blew a gasket. he has more on the story and has exclusive details next. until the day you leave for your trip. add-on advantage. only when you book with expedia. add-on advantage. your insurance rates a scratch so smallr you could fix it with a pen. how about using that pen to sign up

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charles: this might surprise you. apple hit another new all-time high. in fact it is up over 9% this week, and still cheap. hey, this is the s&p right now. it is on track for its fifth consecutive up week. nicole petallides on floor of new york stock exchange. do you feel like extra excitement down there, nicole? >> there was extra excitement when we crossed that trillion dollar mark for apple, charles. i have to tell you watching it first u.s. company to do that in market value, as i stood here waited for it, it was very

reminiscent about dow 10,000. we don't get too excited about a lot of things but this one indeed was very exciting. let's break down what we're seeing in the major market averages. the s&p 500, as you noted fifth straight weekly gain. we're seeing a weekly gain there. nasdaq likely to snap two weeks of losing streaks and thank you to charlie brady give us good stats here, 120 points to the dow this beak. that is certainly hopeful. let's take a look at also some of the laggards for the week. while apple is winning, they are taking some profits, look they're buying it back, but look at laggards for the week, boeing, you can see caterpillar, see some of those industrials, some trade sensitive stocks, also energy stocks. here is look at the market this is year, so while people had a lot of different little worries, whether trade or other countries, but big picture,

we're holding on to some nice green here as you can see. 6% higher. back to you, for the s&p. charles: thank you very. appreciate it. cbs ceo les moonves speaking on the earnings call yesterday but he didn't address the harrassment allegations. analysts also, they simply chose to ignore the topic as well. to charlie gasparino who has been all over this story. you were pretty apoplectic about this. >> i wasn't apoplectic. we do business tv to inform investors what is going on at companies. and so theoretically do wall street analysts that is not what they did yesterday. be real clear, les moonves was on the call. made me feel good that we broke the story he was likely to be on the call. where i think the whole process broke down not on the cbs end. you expect cbs to tell analysts listen we'll not answer questions about ongoing legal issue which is the sexual

misconduct allegations first appeared in the new yorker, and being investigated by cbs outside law firms. what you don't expect every analyst not to ask a question tangentially related. there is lot of stuff related to this existential for the stock and company. number one you have to ask them, this is not anything that is -- this isn't a legal question. where is the succession plan? who is it? where do you go from here? and, by the way you also have to ask them about the shari redstone controversy that moonves is directly involved in. that impacts the future of the stock, near-term future. shari redstone, controlling shareholder wants to basically merge ybs, one of the companies its owns with another companies it owns which is viacom. moonves is resisting that, taking that to court trying to dilute out her ownership stake. not question about that. you have ask why didn't they do this? i covered analysts for years, it

is about access and money, an money, money in terms of investment banking fees and maybe, you know company, being able to brag to institutional investors i got les moonves's ear and he will buy your research. that's it. charles: this was a major wall street scandal years ago. >> years ago. i covered it, wrote a book on it. charles: so these analysts at this time it was more, it was just more blatant, right? they were not really analysts but hypeers for the company so the banks would get banking business. analysts were making $25 million a year. analysts don't make that type of money. >> traders don't make that type of money. charles: you're saying it is resolved but not really truly resolved. >> no it is not. notion of access and fees and protecting a company that does business with your bank is still alive and well. on one hand you will never get rid of that conflict. that is just the way wall street

works. on the other hand you expect them, one brave soul ask one question. charles: analysts, were analysts not news reporters. so the job is somewhat different? >> that would be great. i mean that is legitimate comeback except for the fact that if you're an analyst, you have to ask about stuff that impacts the stock. one thing that we've learned over the last four days, this les moonves situation and notion of succession, not necessarily legal stuff, what's going to happen next, your battle with shari redstone, that is all existential to the stock price, it is. and to ignore it means you're not doing your job. i can't change them. i can't change the way wall street works. i can point out hypocrisy. hypocrisy from regulators they never really addressed problem. hypocrisy from wall street they allowed this to happen yesterday. charles: the word right now, maybe, conventional wisdom moonves will probably still be out at some point for variety of --

>> i give it/50. charles: really. >> it is his board. i don't know what type of investigation they're doing. our investigation of our old boss roger ailes, said we will accept your findings. i don't know what this board -- they are all moonves' friends. how many law firms to take turn a light bulb? all it takes is one good one. charles: numbers on jobs report were absolutely phenomenal. look what is happening with the marketwe'll be right back. ... hi, i'm joan lunden with a place for mom,

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charles: welcome back to cavuto "coast to coast" but i'm charles payne in for neil cavuto. the busy hour coming up. an amazing job support and with the estimates but the details are phenomenal including the vision through may and june that more than made up for the headlights. edward is with the labor department for more. reporter: the white house is saying they're happy with the support and highlighting the positive that are in the report like manufacturing jobs increasing. in fact, manufacturing created 37 jobs in july and the number on pace with what the jew number was over the past two months manufacturing in that sector has created 73000 jobs. adding another 19000 jobs from construction and it could indicate there's investment from companies going forward and

economic advisor larry kudlow said he's happy with the job numbers in the forecast from the atlanta federal reserve that the third quarter will be 5%. >> i thought it was a strong report. the headline number was a little below estimate but look, the back revisions were gigantic. 59000 you have to add that in. that gives you 215 for the month of july. reporter: kudlow ended up saying that you need to look at the trend over the last three months. this economy over the past two months has created 224,000 jobs every month. economy say the support could also be good to the federal reserve to keep to their path of forecasting tumor rate hikes this year. my sources and the fed say they're looking at the average hourly wages and that number was 2.7% for the 12 months preceding us. if that number stays around the 2.7% level inside the fed they

believe inflation pressures will be lowered so the bottom line is good for the white house and federal reserve. charles: thank you, edward. lower unemployment in one of the questions is why do we see wages picking up and could that actually have real soon? we want to go to the editor with pain capital management patterns and and melissa. let me start with you, john. it's a great report in my mind when i look at the details particularly of some sectors for instance, they've gone from seven and a half to 7.8 and that reflects a wider breath of who were out of this job market and struggling and doing much better. are you concerned about any element particularly wages? >> for one you never look at scans for 3.9%. at some point we have to throw out the ridiculous models by

economists and use common sense. think about it. the us has most valuable companies in the world by far at the high-level, mid-level and low level. can you name any company in history they got that way without adding the best talent possible in pain that talent while? is it consistent with the market valuations placed on us companies that some of those businesses could routinely build workers at all levels. it defies common sense. americans are paid well so who cares what economic statistics to rebuild was obvious. charles: melissa, what are your thoughts? were up almost 100 points on the dow and s&p is up for the fifth week in a row and will finish higher and nasdaq 100 just companies go we talked about it breaking under the moving average and now could be back to a double top resume. >> people live and die by the numbers which is what it does. it's a good number and was not excited and thought the in the world. the market has no negative reaction today.

we gassed up and open up today and had a huge rally yesterday. apple came out in their earnings were spectacular. there's no reason to have a pity party because we do not have the exact numbers. the estimates i think they overshoot what they should be but it's a good, solid number. you talked earlier this morning and said that this was too big and the fed might say, oh and then raise rates another extra time. i think it's good. charles: goldilocks. reporter: [laughter] we have to remember what it actually is. with modest inflation and receiving the economy grow and seen on the claimant go up moderate and that's all you want to see to keep the economy going. it's one the slowest economic recoveries we federal time. charles: say that again. >> is that it's one of the slowest economics we've ever h had. charles: you mean over the ten years that we had expansion in the economy, right? recently it has picked up a tremendous amount of steam.

>> gdp was great for last quarter but you can expect wages to skyrocket overnight. it will take a while. charles: what about the overall economy? can we expect the present reasonable? >> very realistic. capital expenditures are coming back from corporations and people are spending money and the government to spend money in this economy is heating up spirit corporations will not pay more on the support two. if you want a company you are trying to say. that's the biggest expense they have. they will not pay more unless they absolutely have to. charles: that's one of the things on the dashboard to quit part of the jolts report and is starting to inch up a lot. john, i know you're not a big fan of tariffs but the battle is joined. china announcing 60 billion in retaliatory tariffs but i thought the more important news was china taking measures to slow decline in their currency which many people were saying that would be their ace in the hole.

what you make of it? >> we overate the idea that you can devalue your way to prosperity. if that were true then zimbabwe would be the richest country on earth in argentina would be number two. when you devalue your currency you weaken your workers and repel the best that drives corporate creation. look at japan. japan had some of his best years of economic growth when the young was soaring against the dollar. what's crucial is that the chinese maintain that peg for the dollar let's not forget the only reason working is because you want to get things. the more the chinese get up and go to work we americans get a raise. furthermore, china represents an increasingly large market for us companies and apple's most valuable company in the world and where does it get its one quarter of the revenues - sales in china. the sun is up with great for both countries. charles: melissa, that's one of the issues were trying to resolve an even greater access into china and the ability to do business without giving intellectual property.

>> that is what trump is doing. it goes back one 100% conviction. look at the market today. all the tariffs came out before we open and no negative reaction. i was a price. the market is holding and the market likes to a lot. it's trying to shove off the tariff news when it comes out. you gotta give it a shot and give it time. it could be a couple more months to get straight out but china is fighting back hard. charles: i talked about it as i do my show but ultimately his accommodation of art of war. if you read art of the deal you know my present job is fighting the site in the first place. if you read the art of war and there's key components in their like when you're victorious you don't crush the opponent. you leave them in. we will find a place were present job will have to find a place to declare victory because there will be an inflection point in there could be. >> absolutely. at the end of the day we import so much more from china than they import from us.

we deftly have the upper hand. plus, china's economy is slowing. our economy strong here. a negotiating ploy and will win the battle or whatever you want to call it. charles: john, what is worrying you the most of all the economy? including debt with - we are sort of remiss because we don't talk about a lot babies do. >> that rises when the economy is going. we know that for obvious reasons. no one will lend to a person or business or even a country if they feel that that will not be paid back. charles: that's what is a problem with my relatives. [laughter] >> to some degree it takes care of itself but what worries me is the trade stuff. let's be clear, i don't buy into the notion that we have a strong hand versus china. again, apple gets a quarter of its revenue from sales in china. gm sold more cars in china in the first quarter that sold in north america.

boeing sells one quarter of its planes in china and there double the number of a starbucks in shanghai. then in new york city. why would we get in war with the country that is still very poor? imagine what a market it would be once we get rich. let's not mess with what what is good. charles: but we want access to the market. >> we already have access. charles: do we? >> look at the numbers. charles: anyone who does real business in china will tell you there are obstacles against american companies and american product. that number could be better if they level the playing field to the same degree that we level it for their companies. >> i agree with that. that's the point here. we deftly have room to negotiate. i think you'll see that. we win this conflict. charles: i mean, it could be a win-win. china says it like a more and

rely less on experts and more on the domestic economy and they have a huge amount of middle-class is grown over the years and then they will not have this manufacturing advantage they certainly won't have it against neighboring countries. nike does more manufacturing in vietnam than they do now in china. they want to muster prices to below, i would think. but is about prayer or fair markets? >> and the intellectual proper property. that's a problem for trump as well. when you look at the whole of the it works out to america to manage and trump keeps saying america first - the other countries of the world will look at trump differently because they had issue with him doing this. china has been the biggest one has been trying to stand up to trump with the tariffs. if other countries will respect is more if this works out with china . charles: were close to something with the eu.

maybe something over the weekend will happen with that. thank you for the passionate commentary but have a great we can. in the meantime, stick with apple. they continue to climb more than $1 trillion market cap. what does tim cook need to do to keep up the pace because when you are a winner people expect more from you and of course, be sure to tour into my show tonight making money at 6:00 p.m. eastern. we'll talk about a whole lot of things. last night i told you about smuckers is up $8 a day. a lot of ways to make money in the market. we'll go over it tonight at 6:0. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander

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charles: apple hitting an all-time high after topping the $1 trillion evaluation mark. the question is what is next for the tech giant? eric schiffer is here. it is so interesting because tim cook and i think it's the muhamed lee perry homes affect you come in after a legend and it's tough to get out of the shadow. even though the trillion dollar mark doesn't seem to be commenced or enamored, if you will, with tim cook what does he have to do next? >> it's tough. you are following such a great talent, charles. it's a tough situation. in terms of extraction because i don't think anyone believes will be able to out innovate steve jobs. you have to look at the core in

the core - there are opportunities there. the software and service by the business that did about i'm .5 billion in last quarter and that could double and triple potentially if they do the right thing. were talking applecare and itunes and the cloud as well as the app store. imagine on the app store if they were to decide to charge developers a bigger fee - where would they go? they don't have a place to go. that's a big area. i think the other thing you have to consider is you have such a loyal lone star base. as long as you invest in incremental agreements they will get the next iphone 11 and the iphone 12. there's an advantage there. perhaps the biggest advantage that they have is the pricing power advantage. when you look at a company like coke, if they raise the product

price by a penny or two it's millions and millions of dollars and billions potentially in profit. perhaps it's what caused warren buffett to want to invest because is a big investor in coke. when you have a great brand they can incrementally increase prices and you are seen it. look at the average price on the iphone, it went up. that's another way to grow and they could do it successfully. charles: the average selling price was about 30 or $40 than expected and more partly it was the iphone x and most expensive one that had the biggest share of sales. you're absolutely right and that's always been one of apple things. is that often a luxury company and a tech company but they do have to stay ahead of the curve and there are other things out there like the cloud and internet and personal digital assistants and others that you have to wonder if they are too comfortable with the current arrangement and they can't take

the device so much intimately better than they continue to command his prices? >> that's the concern. they're making a lot of acquisitions and continue to. whether it's an artificial intelligence or augmented reality or areas of entertainment that will continue to keep people motivated to stay invested and again, if you make the right mental it doesn't have to be through the genius of steve jobs you don't have to hold onto the space and if warren buffett is investing, he sees it as a stable, as a continual long-term investment because he's has a loyal following. i think is right. now, it's not going to be the growth stock that you and i consider when you look at silicon valley. those days are gone. their growth stock these are gone because they don't have

that great genius but they can be a great investment for people. charles: look at [inaudible] i think it's one of the cheapest docs in the market. eric, they give you much. great talking to you. >> great to talk with you too, charles. charles: coming up, a businessman winning tennessee's republican governor primary. is this proof right now in this political climate that anything can happen?

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charles: now to the upset in tennessee. president trump congratulating businessman bill lee uninfected victory over congressman diane black. bill mcgurn is on whether we will see more of these political outsiders because this has been the reports of our.

>> right. in this case there were special circumstances and that there were three candidates and the combined total of the two losers would've defeated this guy in the election. he went from third place to first place when they were sniping at each other but it shows you the political endorsements don't matter as much as they once did. charles: who did congressman diane black - >> vice president pants. this is a conservative battle. it was a conservative battle between they were always trying to please their . charles: it always comes out of nowhere and maybe we can compare it to the jordan republican governor race where for five months ago they were way back set to win but he had asked nine or something in in hindsight now but maybe a trump endorsement could made the difference here?

>> possibly. look, i don't think any of them were particularly antitrust. my understanding is the two leading candidates darted to snipe at each other at the end and one wasn't the place and he failed to first place because of the war between the other two. he was able to not respond in a way that turned off voters. look, the larger point i think is who is able to connect with voters today and they're looking for people in the normal political resume of a compliment and achievement does not necessarily amount for as much. charles: could be a detriment. >> it could be in some cases but in this case, interesting thing is at least as far as i can see they were trying to prove they were conservative so it wasn't a charles: insider versus outsid outsider. >> right. people are in the mood for disruption and they're very unhappy with the status quo. charles: this could continue to play out in the general

elections and - >> voters are looking and they're looking for something they feel is authentic and who understands their views. in the larger case of donald trump we all know the disruptions he brings and some of the ill-advised things he has said or done. however, the fact that people voted for him and still stick with them at least in there about the party shows the heat that status quo more than they dislike what the president is saying. charles: they also sincerely believe he sincere. >> yes. charles: and when these career politicians are polished and know what to say and i just don't think we know that there sincerely in our corner anymore. >> i think one of his advantages was as a businessman he came through is authentic in his way in his. he traversed the state and did not speak in the usual clichés about things.

look, president trump this is what he does at his rallies and a lot of people laugh at his rallies but i think he's connecting in a way that previous republicans do not ha have. charles: what is this mean for the establishment power in both parties because i'm seen it more and more endemic side and i saw clybourn push back against ocasio-cortez and president obama did not even put on his endorsement list and people were saying wait your turn and there's a lot of internal friction and a lot of republicans who were against president trump are opting out and if you like summer getting ready and there's a report out that larry hogan may want to run in 2020 and he said never trump. for the most part they been redefined and - >> i think the case is different in the republican case. one of the difficulties now is that president trump's very successful certain things including the 4.1% growth

growing economy. they give him room for even some of the things i worry about with were in china. politically that may benefit workers who think this guy is standing up and democrats have a different problem and they have an aging leadership and there's a disruption. charles: and there's a complete disconnect. 400,000 manufacturing jobs from january until last month and that's a big deal. i could talk to you all day but they been asking me to go for 15 minutes. take you and have a good weekend. rudy giuliani reportedly saying the trump decision on whether to sit down with robert mueller is coming very soon. what does this mean for the ongoing investigation, next. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings

estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

charles: trump attorney rudy giuliani saying he will decide

within the next ten days to meet with robert mueller. the question is, should he? john, every political expert i've ever spoken to on this topic is a the answer is absolutely not but it's obvious the president trump and his inclination and urge us to do the meeting and to get it over with. what you think the right move would be? >> great question, charles. i thank you should testify because there is a difference between donald trump the private citizen and donald trump the president of the united states. private citizen you would be worried and they're walking into a perjury trap where the fbi or prosecutors are trying to trick trump to contradict himself in some small way. president trump, head of the executive branch, is in charge of all the law enforcement in the country and sworn to uphold the loss. it looks terrible for him to refuse to cooperate with law-enforcement when that's his court constitutional duty. that's why ultimately i thank you should and will cooperate and sit down for an interview

with mr. mueller. charles: john, do you think will use the same techniques to try to trick him and put push certain funds to get him to savings. in other words, wouldn't they use the same tactics they used against a citizen trump? >> yeah, i think that's right. if you are the mueller prosecutors and you look at what can start and is a message did with bill clinton to use those same kind of prosecutorial cross examination techniques that all lawyers know to trip up a witness to get them to contradict themselves to press on all abilities. what president trump could do to correct for those is something more based in his television career but i was a i would have conditions. i want the thing carried life and i want bob mueller to conduct the investigation and the questioning and i want her to be a time limit. charles: what about there's been talk about some of these questions been presented in writing and maybe limiting the

questions? could those three parts of the final arrangements? >> i think that is what rudy giuliani and the defense team will want to do but no prosecutor is going to agree to limit themselves only to those questions. they always want the ability to ask follow-up questions and in those follow-up questions who knows were president trump is going to go. he has a habit of talking at great length and sometimes saying things that may or may not be true and that's when prosecutors will want to jump on them. there's nothing once the interview starts that giuliani and the defense team can do to stop president trump from going down some new road. charles: is because of that, you mention kenneth starr. when people hear the term witchhunt there's a political connotation to it but it does feel like these investigations start to take on a life of their own.

will we get back to the original intent of this was the idea pepper president trump find any vulnerability and go down any path where robert mueller can declare victory even though it may have nothing to do with collusion between trump and russia? >> charles, you're right. look at the man for trial going on right now. in the end it might be dollars biggest gout. trump's campaign manager. whether he cheated ukrainians or cheated the irs what manafort was up to have nothing to do with collusion between the trump campaign which was later and russian attempts to interfere with the elections. it's a genuine worry and you can see giuliani and the defense team are trying to limit the questioning particularly to whether there were contacts between trump in the russians but not to obstruction reasons why he fired james comay. on the other hand, he didn't think anything wrong so don't blame him for wanting to go before the mega people and show that he's not afraid of mueller

and willing to tell the truth under oath. charles: i'm not sure who manafort cheated but i can tell you, the cheated him with those prices. >> you look great in an ostrich - [laughter] [inaudible conversations] charles: thanks a lot. the president sending his top intelligence team to speak to the media about russian election meddling. is this enough to satisfy critics who insist the president trump is not tough enough on russia? the media director kevin phillips and sarah fisher are both here in the studio. i was shocked and i didn't plan to see all the heavyweights and having a candid discussion about the threats going on right now with a plan to do does this take us even further away from that helsinki press conference? >> that was the goal.

using them get pressure particularly for members on capitol hill who are saying we see this as an disinformation campaign in our own district. this is their way of reassuring capitol hill including republicans that we've got this under control. charles: >> it's interesting to note the distinguishing way between the president and his staff are talking privately about putting and russia and now they're coming out strongly. we know he wants to be liked and have put in be his buddy and doing that as a way to broker long term pistol and now coming out with opinion it's important to lead up to midterms if republicans hold on to the house and senate and there are questions about whether the russians the meddling if they went, you know the line from the left will be . charles: even the term meddling, people are saying it's not tough enough or strong enough because they attacked our election process whether they were successful or not. it might be a moot point which

is the notion stated that they continue to do it are bewildering that right at this very moment we are under attack perhaps by russia and what we do about it? >> senator coates who is now said this is now the biggest red alert since 911 of an attack on our country of the skill. i thought it was interesting this week he did not say it was any attack but said eight messaging attack. we never heard it framed in that regard. charles: what does that mean? >> it we know they tried to pack our election software and try to get to photo booth but this is different. it's a distinguished social media and messaging campaign and information warfare. it's startling because you never say something to that scale here in the country. it's up to the intelligence committee to convince, not only congress and the mega people, we know you are all on social media and were know you're part of the

system and we got it under control. charles: also that we need social media to step up. facebook made big news and i thought those ads were intriguing. they certainly did not seem like pro trump avenue. we don't know who the actors were behind it but we would assume that some of them back to russia so it gets to me the notion that they were trying to get any particular candidate to win just to disrupt and delegitimize the nation. charles: >> and it's trying to so division and a lot of times the question now is do the american people care? are they concerned? people have been bombarded with so much information about what they should be concerned about and they been hit with this is the end of the world and biggest thing to forget the past but this is the beginning. at a certain point he will become numb to be told they should be worried even something serious is this. the media has cried wolf. charles: i don't think anyone

thinks it's change the outcome of the election but i know the polls are low. the gallup poll recently of all the topics russia was at a low single digit point. what about going further than that and been able to get into the system themselves? that's a legitimate concern. >> you concern. if there eber to temple with the systems the reason for elections that could sway the elections then some discord campaign on facebook but getting back to the point about whether people care. there's a ton of information and that's why when you see a huge presence from the intel community at the white house press briefing room for trying to cut through the noise and signal to everyone is not the time to be fatigued. we need to be on high alert. charles: i hope you are not fatigued. we are fatigued and a lot of different ways when it comes to the political drama because we know it's overhyped and they are stoking the fear and anger and

there so many parties responsible. cap it, what role do we play because we look at this and say some of the stuff should not sway anyone to vote any kind of way. >> i think - you're a pretty smart guy so i don't know if i compare you to the general electorate has been informed or uninformed. it comes down to individual people and make sure that as americans we do our part to defend our democracy. that could should concern everyone. will there be follow-up or are these just words? it would be important to keep the american people informed about what measures being taken he saw house pass legislation to fund individual districts and combat the thing. that's a step in the right direction. comes down to president trump restoring faith in the intelligence committee. when he comes out against the intelligence committee publicly alex credence that saying we

can't trust the cia because where they . charles: that's beyond these issues. they have hopefully they will be resolved but trump has worked hard in the demonstration since helsinki to reiterate over and over because we know that the men and women at these intelligent agencies do work very hard and there have been questions in this appointment over people with key positions in the last election. >> yeah, that's right. at the end of the day when it comes down to whether or not donald trump is doing enough to combat the things that in helsinki he realizes he can't do it alone. that's right you see his kid visors step in. it's hard to come back from something that was epic. charles: it was reassuring to see you both. thank you very much. economy is booming, and employment rate plummeting and the atlanta federal reserve says we canat keep the streak rollin. will tell you4. about it, next.

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charles: >> low inventories high demand for all kinds of equipment and is that going to get you five? i don't know that and i will not forget that but i will say like the atlanta said it's a plausible number.

charles: that was national economic counselor to doctor larry kudlow optimistic about third-quarter gdp growth following that robust 4.1% growth that we saw in the second quarter jeff is here on - is a proof that the economy is not only blooming but nice to see you, jeff. >> pleasure, charles b1 these numbers are bouncing around in the long way to go but the atlanta fat a few days ago was 5% and therefore .4% and nothing but certainly showing the volatility but is it possible that we could actually see the sustained growth quarter after quarter because over the last ten years we had the occasional spike in the we collapsed? >> yeah, i don't think it's a blip. i know the media stations are calling it a blip but a better indicator of the strength of the economy they came out with the gdp was real final sales. it's a better indicator because it excludes net exports and

excludes inventory. it was an eye-popping 5.1%. we think the economy is sustainable and is set it on the show before and i think the economy is stronger than a garlic milkshake. [laughter] charles: okay. give me a moment to get that one out of my head. i can taste it. that's what's bothering me. i also thought and you can tell me looked at the gdp report closely and it's 30 billion in inventory and that will have to be made up, to. >> that's a fact. that took one full percentage point off the gdp numbers so if inventories would've been in line you would had a 5.1% print in gdp. the economy is strong and everywhere i travel and i travel all of the world and it looks to me like a global signalized economic recovery. charles: but the rest of the world is starting to slow vis-à-vis america. does that concern you. helsinki nice does it have to be

for us to get the levels we thought were impossible anymore? >> well, i think the us will be fine. stock market is telling you that the huge military operation by iran in the persian gulf is a nonevent and it's possible that the trade tariffs won't be as onerous as people expect and they may not even stay in place for very long. charles: i don't think that would be the case either. again, we will see the game and the battle we not seen before. what about domestically - to me the dollar, oil inputs, federal reserve they matter so much more than a temporary trade battle? >> i absolutely agree with that. i think the earnings drive that we got and will have 20 plus% earnings growth over the next three or four quarters and people are still scared to death and you had a huge reduction in the amount of publicly traded

companies. the wilshire 5000 has 3600 stocks in it now and ought to be called the wilshire 3600. charles: is there something wrong with that? if so, does it mean are we skewing the markets with a limited amount of stock out there to buy and the buybacks in those things? >> a lot of people point to the earnings growth and say it's only driven by what the japanese would call cytec which is financial engineering and by share buybacks. i think it's more than effort using revenue growth pick up in the past few quarters. you've seen the earnings drive come to the fore and you see the individual investor is still scared to death because they did not manage the risk in 2000-2003 or in zero seven-zero nine. charles: look at the investors and 40% neutral witches and in different reading and it's absolutely shocking that that

many people would be indifferent to this market rally. the pro per se we are going higher. jeff, you're one of the best pros out there. >> you bet b1 mortgage rates on the rise. are we about to see a slowdown in the housing market because there are several warning signals out there. be right back. copd makes it hard to breathe. so to breathe better, i go with anoro. ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way

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charles: mortgage trends hitting a two-month highest momentum in housing market seems to be slowing. fannie mae executive and

chairman of the collingwood group on all of this. tim, it's not just the mortgage rates but applications and numbers and some of the more recent water economic data and housing data, is something wrong? restarting see cracks in housing market here? >> nice to see you, charles. if your seen volume and momentum come out of the housing market but bearing in mind within six years of blistering pace and looking at one measure if you get home price appreciation are still looking at a six and a half% procedure he on a year-over-year basis. permits slow and start slow and existing homes feel slow but it's a result of a couple different things. one is the inventory that is out there is obsolete for most of the buyers. not something that we could buy. the there too far out needs to much work and affordability continues to be an issue. of course, again 35% appreciation rates last five or six years catches up to you and that's also with the outpacing

rate of income increases. those are major things. interest rates are more of a psychological thing than they are financial barrier. charles: let's talk about the prices because to me it feels like we have found the natural high at least for the moment where americans are willing to go pay for these homes. if that is the case do they sell correct? >> i think they will. the housing market is well-balanced and there's a lot of different lovers that buyers can throw to make house more affordable so people in the market better qualified can take an adjustable-rate mortgage to make a home more affordable and borrow money from mom and dad take the property more affordable or move out a little bit. in the tertiary markets is a little bit of drive to comply and until they find something affordable but it will moderate. it's been doing this for the

last two years. it's a paradox. you need more home price appreciation in order to get more inventory because there still a lot of folks with tens of millions of people with equity constructed or underwater and canceled the house. you need that home price and that new inventory to draw people on the sidelines. charles: what about the starting home area? it seems like it's been completely abandoned. if so, is it that in one part of the entire cycle where you get folks who bother the starter homes into the more extensive homes but it feels like that area has been completely abandoned by the industry. >> it's true unfortunately. you're breaking off the first leg of the letter in homeownership so you don't create the first opportunity to become a homeowner and get that wealth creation opportunity and use that equity in the future to buy a home. by defining is on the low end there's no doubt affordability is a real crisis.

they probably need someone to step in and make a policy change to her arrest some of this affordably issues. builders can build level homes. using 80% fewer new builds in that 200,000 below then you did ten years ago. there's no rational way to make the economic builders to build the entry-level home. they're looking at creative ways to get into it for the challenges serfdom is not a great long-term strategy.. well healed investors, private institutional investors, hooked on conveniences of renting that doesn't play out well in the long term. charles: rents are rising faster than homeownership. i think a lot of these younger folks, millenials have gotten caught in the rent traps, they can't save enough money to put a down payment if they indeed wanted to move out. pushing their age when they finally do to much higher age. tim, thank you very much appreciate it. >> thanks, charles. charles: that is it for "coast

to coast." join me tonight on "making money." we'll talk about the market rally where the opportunities are and we'll cover all the big news for trade. but for now, here is trish regan. she will take you through the next hour. trish. trish: charles, thank you. we have market trading higher, near the highs of the session. nice to see, on the heels of a labor department report showing the u.s. economy added 157,000 jobs last month. not quite as many as expected but still 3.9% unemployment, that is pretty good. i'm trish regan. welcome, everyone, to "the intelligence report." ♪ trish: today's jobs report showing modest growth for the month of july. payrolls rising by 157,000. that many jobs were added. unemmoment rate