bob pisani has more on today's bounce back. . >> reporter: the bulls were back in charge today. stocks rebounded after a string of sloppy trading days to close higher with the dow up nearly 200 points. that's the best day in nearly four months. tax reform talk set the stage early on after sources at the white house said lawmakers and president donald trump's economics team were closer to orchestrating tax cuts and are reaching a consensus on how to pay for those cuts. the markets rose because there's some finally meat on a tax cut proposal though some say short term tax cuts are far from full on tax reform. regardless, risk is back on the table. banks, biotech, semiconductor stocks are all higher on the day and more defensive sections like utilities, real estate, consumer staples were all down on the day. it's been a very rough year for infrastructure stocks. they rallied thinking this will allow companies to repatriate. now tomorrow we'll get data on new home sales plus earnings from lowe's, express, and american eagle outfitters among others. for "nightly business report", i'm

bob pisani watching all of that on the floor bob?> the question is are the markets in trouble here? the answer is not yet. but there is some cracks developing so we've seen something in the last two weeks we haven't seen in a long time a selloff last week and another one this week. that's starting to do some technical damage several elements have really come together. so first, there's leadership doubts about president donald trump emerging and the ability to get tax cuts through. traders have been alarmed by the dramatic decline of the small cap rustle 2000. it's down 7% from the historic high about a month ago so it's now flat for the year. with the s&p 500 up 8% for the year the russell is almost all companies with earnings in the u.s. so it looks like some are downgrading the hopes of pro growth policies coming from the trump administration look at that that is a one month chart. the stock market is not cheap. leadership looks a little tired. this is a valid point. amazon, for example, 11% off the high but still up 28% for the ye

bob pisani explains. >> here's a rare event. stock concerns about north korea, but also on the state of poor earnings. so far, this summer has been a -- market. nothing has offered to slow upward course of stocks. ife mart shifting focus? for the moment, the market seems are small.that the risk of this major indices were down fractionally and markets here and volatility roaming elevated. so, north korea, the problem is is, is not the only big issue. had authorized an increase in the debt ceiling when it returns from its recess in december. raising the ceiling is not a big issue, it's been done before, chance congress plicated this wo pass a clean bill. they might pass a bill with all sort of conditions on it that will create g is mott raised, there's a small possibility could default. without default, a long fight over raising the debt ceiling is a bad idea. this happened in 2011. a similar fight led standard & poor's to downgrade the credit rating of the united states. it's di tint from adopting the u.s. budget and that, too, h

bob pisani looks at how u.s. investors are being helped by markets worldwide. >> the global markets are improving with the global economy. in the middle of an economic turn around. spanish is up 12%. up more than if it wasn't for the fact that the ur o euro has been rallying big time. this makes exports more ek pensive. it's still 6% off its highs of two months ago. emerging market economies have improved. south korea, vietnam, philippines, indonesia, all up double digits this year and the chinese economy, despite co mandated concerns has stabilized. hong kong is up 25%. stocks have been rallying beca the global economy has been improving. earnings for the s&p 500 companies are expected to be up 11% for the second quarter. stocks trade off of future earnings prospects. you can see this in rally for the dow. of the thousand pointns gains that we saw in the dow recently. boeing, mcdonald's, and caterpilla of the five have 50% of earnings overseas. only united health did not. for "nightly business report", i'm bob p

for "nightly business report", i'm bob pisani at the new york stock exchange. >> weak coffee sales hurt results at smuckers and that's where we begin tonight's market jiffy peanut butter sate it negatively impacted deman and contributed to the lower than expected revenue. earnin missed the mark. shares fell more than 9%. hormel slashed its forecast for 2017 saying higher raw materials cost would eat into profits. the meat producer reported disappointing earnings and revenue as lower sales result. hormel shares were off 5% to $32.09. beacon roofing supply is buying crh's distribution business for more tha billion. it will allow it to enter more markets and help growth in key product categories. shares to 43.54. crh shares rose more than 3% to 35.56. and after the bell ulta reported profit and revenue that grew more than expected as shoppers spent more online and higher priced cosmetics. same store sales picked up gains. also sees earningings for the current quarter below street estimates and that pressured shares in afterhours trading, but they ended the day up fractionally to 233.71. >>

but as bob pisani tells us, the hope is this time, there's a >> could we get an august swoon in august is beat a typically a lousy month for stocks. the second to worst month of the year. it's only been up five times in the last 20 years. that's terrible. e hope is that any cross at taking at technology after apple's strong numbers will clos to rotate to the forefront. rotation centers rrnd two groups. energy and financials. is this going to work? maybe. for oil stocks to get moving, we need oil c or $50 a barrel. we haven't had that. but after being stuck in the 42 to 45 range for several months, oil is trading at a regular 45 to $50 channel and energy has gun to respond. they're up there, july low, but it's still tentative. the key to getting financials going is to get a modest breakout in short-term interest rates and get president trump's administration to talk more about deregula key, so expectations for bankses like bb&t since earnings ended, but this, too, is is tentative. ownership of bank std not a lo of confidence in the trump agenda at the moment. that's the biggest problem

i'm bob pisani at the new york stock exchange. >>> so, what should you do when wall street is divided over the future of the stock market? tim mauer is director at bam alliance and joins us now to talk to us about that. nice to have you with us. welcome back. >> great to be here. >> there's always kind of a divide. that's what makes the market. you have some wh so bearish. however, when you get a divide like we're starting to see on wall street, what should the individual investor do? >> well, the individual investor a natural part of the market process. there's always going to be a buyer, a seller. it's not even just a zero sub somebody's going to be m game losing. tlen there we shouldn't be surprised of se opposing forces. wall street has often been on both sides because they're selling investment products that benefit from being on both sides of those transactions. what you need to remember as an financial plan, investment plan, not necessarily the plan of these bigger corporationcorpora. >> i have good news since the last time we spoke. i have learned thousa eed how tn bow tie. >>

bob pisani takes a look at what worked for investors and what didn't in july. >> reporter: was a good month overall. s&p up about 2%. up nearly 11% for the year. tech's been the leader and it was again in july. the demand for semiconductors to power cell phones and appliances keeps going up. oil had a big rally going from $44 to nearly $50, but didn't help a lot of oil stocks. exxonmobil hit a 52 week low on friday. banks were mostly down for the knot. they benefit when interest rates are higher and traders have been surprised rates have not been rising despite the improving economy. inflation, for example, remains below the federal reserve's target levels. one major issue, transports are diverging from the rest of the market. dow industrials up 3 % for the month. transpor it's not one sector. right across the board. airlines, railroads and truckers all down. meantime, money continues to flow into stocks. investors are increasingly using etfs to get in and out of the market. july saw $23 billion in inflows, lower than the first six months of the year but still on pace for a record yea

bob pisani is back on the floor with us as well. b, there's been quite a move on the market related to this news. >> let's take a look at the s&p 500. remember, scotty, we were talking about this there was another report that ban would be fired we were down about 5 points. as you see, we've rallied up 8 points that's a 13-point move since the initial headlines came out that's quite a move. i just want to point out the market is a lot more stable. a long of fang names were looking tired. now they're fractionally in positive territory amazon is up as well we've also had one heck of a move in the energy complex i want to put up oil if we can natural gas and oil moved more than a dollar. look at that rally this was right around the time the headlines came out a big refinery in texas. the exxon baiten refinery was shut down. there may be fundamental news as well we saw energy stocks going down every day. new lows on all the northwestern names. there you see the xle which is the main etf overall a lot more stable. the important thing is we

back over to you >> eamon javers, thank you very much now let us get to bob pisani at the new york stock exchange. the dow posting one of its worst days in week is it about politics, about earnings, about something else >> risk-off day. and it's two events we have been talking about all morning have clearly influenced the market, brian. let me tell you, the s&p 500 circled two points here where news events came in. first around just before 10:00 al eastern time, see that first circle there that's when reports came in that -- false reports, it turns out, that gary cohn might be leaving. of course, you heard eamon say that cohn intends to stay. then the second circle, that's when we had reports of the terrorist attacks in spain first coming in. and you see the market again drifting lower so outside events clearly influencing the stock market today. as always happens, the market leaders are the first ones to move down and they are the weakest ones biotech has been a market leader, semiconductor has been a market leader, banks has been a market leader. all among the weakest sectors right now

bob pisani. >> reporter: it was the biggest thing on the streak. can the president really claim credit for the answer and the answer is partly yes look at bank stocks. everyone wanted regulatory relief in bank stocks. when president trump right at that election, bank stocks rallied 30% in less than a month. that's clearly hopes for regulatory relief, and they haven't done too much this year elsewhere. take a look at industrials, infrastructure spending and regulatory relief. that was a big part of the industrial rally loo being at that, right after the election, up 9%, 10% and industrials up another 9%. there's obviously something else going on besides the trump rally. take a look at technology stocks interestingly they barely fudged right after the president was elected in november, but they have been up 28% this year and the reason, of course, is because a number of companies have had outsized earnings and revenue gains, and that's the clear gainer in this year to the s&p 500. look at this earnings up 50% in the first quarter. now, earnings are u

you have bob pisani. you had a 150-point swing.hen the bannon report began to come out, the dow was down we've still got a 150-point swing. we're negative now i'm putting you on the spot, buddy, i know it is it because of this breitbart editor's tweet, which one can read into clearly steve bannon, a dangerous man in certain circles, may be now to go after the president. >> #war is a very serious declaration, and i'm with you on that i want to tell you a couple of things traders cheered at roughly 11:18 that the white house was prepared to fire bannon. the s&p was down five points at that time. there you see it circled they promptly rallied seven points in a manner of minutes and another five points over the next hour. when "the new york times" confirmed he had been fired at 12:40, there's another one the markets have clearly preferred cohn for the stability he provides. they've rallied today that his arch nemesis bannon is gone. they cheered when it was reported that bannon was out they want a concerted effort to race a debt ceilin

it's a whole new world i'm bob pisani, new york >>> is facebook finally going to have to admit it's a media company? it has just launched a rival video platform to youtube called watch which would feature original content from its partners ceo mark zuckerberg said the platform is all about finding programs that bring fans together but some critics say tv have been doing that for decades. >>> tesla is developing electric freight trucks that can drive themselves and move in platoons. that's according to reuters, the tesla commercial trucks are expected to be unveiled in september. long haul trucks are seen as a prime target for driverless technology because of their relatively consistent speeds and the need to allow drivers to rest >>> south korea is making moves to bring in a robot tax due to worry about machines replacing human workers. it plans to downsize tax incentives for automation as part of a shakeup of its financial loss. they will make up for lost income by workers who have been replaced by machines >>> as you may have noticed, we've been talking about the rapidly changing fu

our bob pisani. >>> president trump losing ceo and gop support s.today is today's selloff a sign he's losing wall street support today? guy adami joins us after this. that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse you house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your home. ally. do it

sinking 7% so far this month it is tracking for its worst month since december of 2015 let's get to bob pisanie new york stock exchange for more on energy. bob? >> reporter: hello, buy wrriabr. another ugly day for big energy with many of the biggest names again at or near 5 2-week lows what's going on? another epic miss on oil prices is causing traders to push down their earnings expectations for oil. they're not done yet back in january analysts predicted oil would be close to $60 by the third quarter instead, it's been mired in the $45 to $50 trading range, with oil well below expectations, analysts have been aggressively taking down third-quarter estimates. so, at the beginning of april, energy earnings were expected to be up a whopping 222%. not a typo 222% for the period ending september 30th now they're expecting to be up only a little more than half that at 131%, that's a huge cut. you got two problems now with the energy complex first problem, despite the price drops, there's still not a compelling valuation for oil companiy ies because no one knos where oil is going to go, up or down

bob pisani has reaction on wall street to the events in d.c. >> it was a very nervous open trading was mixed early on, but at 11:18 eastern time. word came from washington that the white house was prepared to fire steve ban p. the s&p which was down five promptly rallied in minutes and another five point over the next hour. n fired e new yo about 12:40 p.m. eastern time, stocks rose further. the markets have spoken and they clearly prefer white house economic adviser, gary cohn, for the stable ility he provides. ho, ss dropped yeste on reports cohn might leave the white house and have rallied on confirmation bannon is now gone. important thing here is traders waned a concerted effort to raise the debt ceiling and pass a resolution then move to tax cuts. today's rally is the market's way of saying they bel are sti alive. now, the p weakened after a 1:00 p.m. after breitbart's editor tweeted hash tag implying bannon or breitbart may want a tax against cohn as well as treasury secretary. still, the s&p finished lower, but there's no clear turn around this is still very much a see what hap

for "nightly business report," i'm bob pisani at the new york stock exchange. >> the president didn't just take on north korea. he is also taking on his own party. and he has this to say when asked whether mitch mcconnell should step down. >> i'll tell you what, if he doesn't et repeal and replace done and taxes done, meaning cuts and reform and if he doesn't get a very easy one to get done infrastructur done, th can ask me that question. >> john harwood is following the story for us from washington and program, that a division could emerge between t mea for tax reform and infrastructure spend iing and the like? w seen a president who has gotten to the august break without major accomplishments. who is katrina icasting blame o leaders of his own party who have been trying to help him. this is not going to help him on infrastructure. that's not an easy situation. democrats have no incentive to help him. re interested. i think tax cuts are a different story. republicans have a strong survival instinct. they've got midterm elections coming up in the 2018. republican lawmakers on the hill

bob pisani has more. >> reporter: august is typically a down month, you know, the s&p 500 has dropped an average of 2% this month since 2010 and right on schedule, the august slowdown is sort of emerging right now. so, the issue is whether this will morph into something a little bit bigger. right now, after an exceptionally strong june, the s&p 500 has gotten stuck and is treading water really for the past t weeks. high momentum technology shares, though, have slowed down and fallen off the new high list. so f.a.n.g. stocks, amazon, netflix, alphabet, all lost steam. semiconductors, another big momentum play, also weakened. semiconductor etf topped off in juc june, 7% off its strikes. energy stocks expected to be part of the earnings quarter, this week we've seen apache, oasis, noble energy all down on earnings. is the loss of no men hum namo mean t no, it doesn't. other sectors may rotate into leadership positions. seen financials make modest moves on the upside recently. that's good news. so much money is in these momentum names that investors got to be very careful. when you're dea

bob pisani is here on the floor of the stock exchange to wrap up another week for the dow. >> anotherwhere the dow has been a superstar far outperforming the other indices and select stocks are moving up. let me show you boeing was the big mover. it kept pushing the dow forward. boeing falling back this week and it has come to the fore and this is a great remarkable rotation week. apple up $6 in the last six days or so and 3-m up about $7, for the last five or six trading sessions home depot up about $4 and goldman up 7 some of the banks have been doing well put it together and a nice little move up in several different stocks and sectors at the same time we've had the big market movers in the dow, this in the last few weeks have fallen back so boeing was the big mover last week. it's actually down for this week mcdonald's was a huge mover. it's actually down this week so is microsoft in the prior couple of weeks. it's also down this is what i keep going on, the rotation is what's going on. the close at the moment. the bizarre rally we've been seeing in the dow industrial the last six

bob pisani has more. >> reporter: stocks going mixed today but the dow is still on track to post its worst monthly performance since october of last year. you know, we've seen something we haven't seen in some time. we saw a selloff in the last two weeks followed by no bounce. that's strange. traders just aren't buying stocks after a decline like they used to. so this worrisome? we don't know. one particular red flag some market experts have been pointing to is the russell 2,000, an index of small cap companies. it fell into negative territory for the year at the open this morning and is now down 7% from its all-time high it hit just in july. the big cap s&p 500 is still up 8% for the year, so what's going on? some believe it's due to leadership doubts about president donald trump, and the ability to get his tax cut program through. the russell really has been failing ever since the health care bill failed. that's an issue. so, smaller cap companies tend to get most of their revenues from within the united states. they don't have the luxury of parking their profits overseas a lot of

and bob pisani watching the market reaction on the floor of the new york stock exchange. eamon, let's start it off with you. >> reporter: here's the official statement as it came through from the white house earlier today, saying that steve bannon, was, in fact out the white house saying white house chief of staff, john kelly and steve bannon have mutually agreed today would be steve's last day we are grateful for his service and we wish him the best this continues what has been a tumultuous year for white house staffers and high-level officials, both low-level folks and high-level folks in this white house have been booted out during the course of the year. take a listen to this sound bite from steve bannon, earlier this area, talking about the white house team, and listen for all the names he mentions here of people who have since departed this trump white house >> if you look at the opposition party and how they portrayed the campaign, how they portrayed the transition, and now how they're portraying the administration, it's always wrong. on the very first day that ke

let's get to bob pisani on the floor. >> good morning, carl. happy tuesday, everybody very strong open 5-1, advancing to declining stocks seem to have an appetite for risk on again. forget about utilities, telecom. forget about the defensive stuff here retail is back a little bit. we had news on dsw that's strong. macy's, management changes that's helping all the retailers are up semi conductors, leaderships group for most of the year that's strong. banks have not been. there have been attempts of that generally not. it is today. and materials are doing really well right now here. we've been talking about this for a while. copper yesterday we talked about it near a three-year high. it's very important. global economic expansion is being reflected in the earnings reports. v bhp announced their profit was higher and still shy of the estimates overall. copper miner based in london, antofagasta. they had earnings that were also very strong. spilling over into europe to all the miners rio tinto. we've been making a lot about selling their sha lchell

let's get to bob pisani on the floor right now. oh, we're going to go right to intel. sorry, chip. you take us there. >> okay. now, the acquisition for mobile eye, mentioned on the conference call, it was going to close early and this is intel's way to boost the company's autonomous driving efforts. this is a really important -- david, this is all about machine learning it's all about autonomous driving. it's all about the future. and that's why i'm so thrilled that we're going to have a ceo of intel, brian right now. great to see you >> yeah, jim, it's great to see you, too, on such an important morning. >> absolutely. brian, i want you to put this in context. mobileye is a market leader in what david faber, who is here, and i think may be the world's largest market which is autonomous vehicles. but there aren't a lot of people in mobileye and you did pay a high price, $15 billion. how can it be rationalized and what do you think awaits intel >> well, you know, we look at it as mobileye as being the leader, jim, in the computer vision side of autonomous driving. intel is also the

. >> the dow is inching ever closing to that 22,000 25 points away bob pisani in the middle of the action on what's driving it. bob? >> the good news is the dow is on fire. the bad news is the advances kind of narrow we're essentially at 22,000. let's not quibble, 21,000 first back in march. what made 19,000 points what, was the leadership take a look i'll show you the numbers. you'll be started. mostly boeing. 400 of 1,000 points was bogues, mcdonald's had a healthy contribution cat florida, unitedhealth. 26 other stocks in the dow only responsible for 150 of the 1,000 points that we've seen remember, dow is a price-weighted index here. last four trading sessions, here's another weird thing the dow industrials are up 240 points wait a minute. the s&p is down four points, and that's because you get the big moves up in the stocks, so, for example, boeing has had a huge move up in the last few days first down day in a while for boeing, but it's up almost ten points in the last few days here that's about 70 points in the dow. we're also seeing a little bit of rotation. some of the other lag

>> let's continue that discussion with the chief investment officer from tatan asset management bob pisani was talking about the strength of the financials, you like financials, too in the u.s. do you think their strength and leadership can continue even if we don't get that third rate hike by the fed later this year? >> it is a bit predicated on the rate hike. i'm pretty sure we will get the rate hike but it's also around the broader picture of the yield curve. not just the interest rates moving higher, it's the financial conditions overall in the u.s. doing well on that side. >>> when it comes to the earnings season in the u.s., as of friday 79% of the companies that reported beat expectations. as always that's a good number eps growth at 8.2% as you pointed out in a haven't note, much of that is driven by pretty narrow leadership, such as technology. why does that worry you so much? >> we want broad leadership in the eps growth, but generally we are pleased to see compared to expectations, which were pretty low, that's also why we got such a big beat, earnings are not disappointing. the

>> let's get to the market with the dow down 120 points, the third straight down day for stocks bob pisani has more on the action of the floor here bob? >> so far the monticello are showing signs. today we're seeing f.a.n.g. turn, amazon, facebook, take a look, some of the other big f.a.n.g. names down to the downside this has been going on for a couple of days biotechs and semis week. another group having problem all week are bank stocks keycorp, down 2%, maybe 4 has for the week in addition to the selloff, we've had, of course, lower bond yields that's an issue for them and then we're seeing some of the oil names not getting anything going, even with oil holding in around $49 to $50. a any, another 52-woke lows, is one of the big oil service names. down about 2%, and you want to know how some of the infrastructure plays are, the trump plays, going nowhere vulcan was huge earlier in the year it's been down for a while now down another 2%. their guidance wasn't good a short while ago but the plays, the infrastructure plays all dead as the trump agenda has been essentially going nowhere we

bob pisani is live on the floor of the new york stock exchange tracking the numbers and you've been raising the flag on this. >> i am. and there is a notable diversion occurring. let's show you what is going on. in july the dow industrials were up 3%, transports down 4%. this is after the transport hit new highs in the middle of the month. i think sectors within transports are having specific problems for example the railroads are down today and for several week on concerns about volume and pricing. the rails also still have significant exposure to energy that is also weighing on them as well so look at the auto sales today. ford, general motors, xrisl mot reported below expectations. that is not good for the railroads overall. and airlines have had capacity issues and margins are at cyclical highs right now you could always throw in pricing issues you see this little war between united and frontier and other airlines that is an issue truckers and shippers have had lingering concerns about capacity growth, there has been weaker pricing poor state of retail is not helping. two other issues,

. >> let's check in with bob pisani hi, bob. >> technology will continue to be the leader. weaker sectors will head to the forefront. energy and financials, the trick here for energy, oil stocks get them over -- get oil over $50 for oil stocks to move forward after being stuck in that 42 to 45 range for several months, oil is trading at a 45 to $55 channel and energy stocks have begun to respond look here, names like chevron and eog, it's still very tentative. the key to get financials going is to get a modest breakout and get the trump administration talking about deregulation expansion. expectations for a modest rise in rates has begun to move the big regional groups like citigroup and fifth third bank and pnc financial. bank stocks are up this year and there's not a lot of confidence in the trump agenda, at least at the moment several sectors have been badly beaten up this year. look at this, new leadership in august at&t and verizon have been great. retailers like target and gap are finally getting over their amazon funk. the momentum right now remains on the side of th

lot of cross currents here let's get to bob pisani. bob?market leadership of the semi conductors and biotech sector leading us banks are now resuming a leadership role. i think that's a very important factor goldman down second day in a row as tensions ease in north korea. we talk about advance auto parts, o'reilly, auto zone, dick's, home depot we're weak across the board. not just earning reports have been down. look at these retail stocks. there's so many of them essentially at 52-week lows. urban outfitters, finish line, burlington, l brands i could go on and on and on. the whole sector is essentially suffering through what may be a secular -- not just psycyclical decline that we're on. two-day pullback and essentially the whole global market is looking really well. just look at the shanghai. we talked about slowdown in china three months ago it's a not showing up in the charts here. we're just off an 18-month high in shanghai. emerging markets, a big theme all year global economy improves. dollar has been weaker eem. emerging market. w

lets get to bob pisani >> hi bob. >> so of course, look at the faaang stocks.n netflix are having problemsand pharmaceutical and airlines, these are all leader groups a few weeks ago. moving to the downside we talk a lot about the retail earnings the porn thiimportant thing is nice rally in these retail stocks these are hoping for improving sales. the sale numbers were less bad and they were still down yes, they were better expected so macy's and kohl's already still down they sell off on the news and some of the other names out there not having any earnings out there like ascena and urban outfitters we are a small numberoff of th historic high, only 1.2% of the s&p 500. guys, back to you. >> bob, thank you very much. >>> if we are on edge in north korea right here imagine how they may feel in south korea. bill neely is in seoul looking at that country. >> reporter: in seoul, this is a deeply unsettled city after president trump's threats and new threats from north korea south korea's president is saying the country's defenses need to be strengthened and they also had a message for north k

here with bob pisani no coincidence, bob, thatty we're standing at the former post of jimmy maguire srassed away. >> passed away here this morning, and 86 years old. that was his post. perhaps most famous as the specialist for berkshire hathaway a very good friend of warren buffet who messaged me in the middle of the day. reader at tradertalk.cnbc.com and called jimmy the world's greatest specialist and appreciative of the time he spent with him a dear friend and beloved on the floor. when i came down here 20 years ago i spent hours standing behind him watching hick trade berkshire and very patient with me understanding how things work. >> every time i came down here filling in for you on occasion i would stop here always and say hi to jim el just that kind of guy. sweet, soft-spoken man. >> i was thinking about his family clearly today. >> i am. >> and three sons also work on wall street. what a wonderful man and a great legend. >> interesting question as to whether the rally is just resting or getting tired enough to get sick. >> i think it's important that we have this sort of sidew

let's get to bob pisani. >> i think that the discussion of building a wall and particularly the commentsbout probably terminating nafta, that did have negative effect on the market let's look at the s&p featuet fs going into the 9:00 speech, we were on the upside from the close. once that speech, there's the circle on left side, markets started drifting lower there's the open since then we have really turned around right now there's 3 to 2 advancing to declining stocks. more advancing than declining and the reason that's happening, we're getting a rally in the russell 2000 the small caps have outperformed the big caps this is a good sign. i've been talking about how much trouble the russell has been in recently and the transports still an absolute mess the airlines are having a horrible month let's look at them today here. we've seen double digit drops in jetblue and united southwest isn't better here. this is a big issue here, there's been concerns about pricing and concerns about capacity and large issues that are continuing to affect them today. i want you to keep an eye on the russel

bob pisani explains. >> hello, tyler.p getting calls from my wall street friends who are getting laid off it's a summer of misery, because employment keeping shrinking the head count among wall street traders is now 21% in the last six years and continuing to shrink what's behind it first, another record year of low volume tilts stocks may be at new high. in the old days volume would pick up as stocks would pick report highs volatility is now 41% in the second quarter it's down even more. look at this, inup and japan it means let trading that's according to virtue look at this, it's even worse, in japan, throwing oceans of money that are leave active management, and the growing use of artificial intelligence they're getting paid let. >> so is it all over for a wall street career? well, it's not necessarily so, but forget about traditional analysts and trades jobs if you're a 22 years old, ubs says they're hiring psychologists and pricing and shipping experts others are hiring social media consultants and computer geeks wh

july, that was, since back in february let's get back to bob pisani. >> not 22,000 but still nice gainsest sectors leading you're going to get a move up no matter what's going on banks are doing better and tech, which is the leader, doing well we're seeing a little bit of flatness on the part of materials. transports, again, are not doing much at all. this sort of lagging again this is one of the things i've noticed in the last couple of days couple of strange divergences going on here. dow industrials up 3%. transports down 4% rs that's a little strange couple of things going on here first, the etf for this, we had a huge move up in the iyts in the november elections after the trump play on infrastructure that's been moderating a little bit recently second, there are opportunities elsewhere in the industrial space. most of the transports set for the airlines, they're basically u.s. plays look at the big global industrial players caterpillar and boeing, for example, they've been knocking the cover off the ball because they're overseas where there's opportunities and better growth in tho

. >> hampton, thank you very much for the summary of the fed minutes, to bob pisani on the floor for reaction to those minutes. bob? >> and fairly modest i think the key phrase down here, i heard a couple people say were struggling to reconcile the desire to increase rates, the inflation issues being below expectation, of course, how to reduce their bond portfolio. struggling is the keyword here that stood out to me you saw the brief drop about an hour ago that of course was on the reaction to the president disbanding the business council. cost us about 50 points on the dow jones industrial average, make five points on the s&p 500. we did see a slight move to safety, so bond prices went up, yields went down as you look at the ten-year down into negative territory, also more po flight to safety evidence the dollar weakened a bit gold moved to the up side a bit. gold moving into positive territory now after being down recently, and then we saw, of course, bank stocks also moving down as the bond yields move to the down side. kbe in negative territory. guys, back to you. >>> bob, thank y