bob pisani is breaking it down at the nyse. >> hi, melissa amazon is the first s&p 500 stock to pass the $2,000 mark. it's in rare company and there are only three companies in the s&p 500 whose shares are trading over 1,000 and amazon and booking holdings and alphabet. the old priceline was the first s&p stock to get $1,000 and followed soon there after by google and these would have been unthinkable a decade ago and that's because companies would split their shares to make it more affordable to investors the dotcom era drove up the price of tech stocks dramatically and the financial crisis and it's never really recovered and you know they were just over 100 stock puts of 1997 and that was five splits for all of last year and why don't they split the stock as much as they used to? a lot has to do with institutional investors like vanguard those institutional guys have 72% of google and nearly 80% of netflix and institutional investors don't really care if a stock is high priced or not. they may be perfectly happy to have high-

here's something i've always wanted to do let's interview bob pisani bob, tricky week what do you think is going on? take a look at kraft heinz remember all the problem with all the consumer stocks, the margin we've seen, the pricing problem, the brand name erosion we've talked about, the commodity inflation, all of it was present in kraft heinz all of it was present in a lot of consumer names. yet something interesting has happened, the stocks have started to bounce. most of them, most of them bottomed out in may or june. and suddenly they've been rising recently kraft is probably 15%, 16%, 17% off of the lows we saw back in may. most of the consumer staple stocks have also bounced as well most of them in the last several weeks. on top of that i would say the consumer sector that has been straight down is probably up 10% at the bottom here i do want to point out something, some of the advances are fairly narrow. listen, it's really apple that's dragging everything. there's about 70 companies in the technology group, but only 20, 22 of them are really up on the week intel had a very goo

bob pisani takes a look at the major issues facing the market. >>> stocks posted their biggest one-dayp since late june. what's going on here? let's call it a double whammy. first there's ccerns that there's a minor crisis in turkey could spread to other countries. at its part, it was a country with a lot of debt and much of it was denominated in dollars and it's keepingnterest rates way too low to continue to stoke growth. the second issue is slower global growth in general and the chinese stocks are 20% behind the highs they hit and it's due to concerns about a slower economy over there in general. toy investor were spooked at the open when they missed earnings expectations and reported its first net profit decline in a decade. chinese tech companies aren't expected to see profit decline. that doesn't happen and much of it is due to a clampdown in games sales 40% of the revenue sales. they all closed lower today. alibaba had its worst trading day since 2016. the combined contagion fears with slower growth and then throw in a strong dollar. that's a recipe for a sell-off innd commodit

for "nightly business report," i'm bob pisani at the new york stock exchange. >> and the qn surrounding the market any time new highs are that close. is there enough support to keep the rally going? mike santoli takes a look. >> the major stock indexes are poised to return to record highs lasting more than six months ago, and one criticism of the rally remains popular. is this true? or is the climb broad enough to support further upside to new record highs? there is some truth to the argument that the largest tech ock such as apple, amazon, alphabet and netflix has driven much of the market's gain. roughly half of the increase of the&p 500 index has valued this grier comes from those four stocks alone and the technology sector as a wle is up more than 16% compared to the s&p 500's 7% rise, but it's not true that those winners can explored pervasive weakness. majority of the stock are all down for the yore and each of the 500 stock has the same influence is up norly 5% for 2018. >> more than twice asany large stocks are up more than 28%, and it has to advance some 10%. while investors ha

bob pisani has more on today's drop. >> stocks were lower much of the morning, but took a dive as tradear fears once k again t hold. both stocks and bond yields immediately sell the session lows on a report saying that esident donald trump says he wants to move ahead with the plan to impose tariffs on $200 billion of chinese imports. that's not good news for the markets. the problem here is the markets levitated itself into believing that in the long run there reallyouldn't be any damaging trade issues on the horizon, but today's neheadhow that the president, in ct, is planning to double down and apply even more trade pressure on china. triple digitsl and of course, it was led by global industrial names lik boeing and caterpillar and they drop on trade war fears. we did see a sudden reversal in momentum names that were pulling the nasdaq to new highs earlier and tech names like apple and nvidia came with new highs along with broader semiconductor china and u.s.-based internet stocks moved lower and alibaba and j.p.com, they dropped and emerging market drops took a turn for the worst lik

. >> bob pisani takes aoo l at what worked and what didn't for invests in july.been another good month for stocks with the s 500 up 4%. the key storykeoving m has been the continued strong economy coupled with strong earnings, they're coming partly from tax cuts and mostly from higher revenues and it's combining to keep the markets just shy of historic highs and there have been a few hiccupsg ale way and companies have been affected with higher costs associated with steel and aluminum tariffs like whirlpool, and concessionary stocks with facebook, twitter and a few others gave disappointing growth guidance and the markets barely budged because the rostors rotated out of th high growth names and into value names like retail stocks, energy, and some banks ant's why the markets have been so strong and why one grkep w and a leadership troup like technology and of the investors don't jell off the whole market, they buy other sectors and trade issues hav continued to move stocks in july which is the rumors that the u.s. and china have restarted trade talks today helpin

for "nightly business report," i'm bob pisani at the new york stock exchange. >> bob rosen blublum joinsand what he means for you and he's the director of exchange-traded funds at cfra. it's great to have you he, todd. welcome back. >> we posed the question in our meetings whether this is a race to the bottom in this particular part of the financial services industry. what do you think? >> yeah, we're there. fidelity offering a zero fund ths will launch tomorrow big deal. the asset management industry has not wanted to break the seal and they've done so and if you're a mutual fund fan you cae get for fnd if you want other product, the fees come down sharply at fidelity the same wayor it has other firms which is great for investors. >> because there is the move anr has been a number of years now toward passive investing, indexnvesting as opposed to active management. what happens to active management now? >> well, we think they really need to differentiate emselves. one, we hope to see fees coming down for actively managed mutual funds. you really need to price yourself against a zero or

i'm bob pisani at the new york stock exchange. >> up, in, help wanted. >>> i'm kate rogers in salt lakeity utah and tonight on "nigly business report," we will tell you how a morsive labor ge in the trucking dustry is imaccoupacting every segment of the economy. ♪ ♪ > o as today's jobs report show the national unemployment rate is back under, but one area that could use more workers industry with about 70% of freight in the country moved by trucks, the demand for drivers hasser in greater. in ou saw, kate rogers i salt lake city with a closer look at that issue. >> the nation's truck driver shortage is so severe its cght the attention of the white house. >> and here representing the american trucking associations, and we are committing to 50,000 new opportunities over the next five years. >> it's big stuff. thank you,an dan. thyou. me for dan england, former president of thecan trucking association, the labor crunchsn't just an industry problem. it's personal. as he looks to find drivers for his family's fourth-generation trucking company. >> we have right now about just a little und 65

bob pisani, explains. >> the markets are at n highs. how is your retirement fund doing? is the val of retirement funds has risen and bothidelity and vanguard has reported that the average retirement fund has rose in the last year. the average 401(k) in their system was worth $104,000 and the second up 6% from a year ago. the ira, the balance increased to $106,900 ask me companies are using out enrollments in retirement accounts an that's helping investors save more. here's the bad news. we're still not saving nearly enough. the average 401(k) account for 65 andlder is $209,984 and that sounds like a pretty good number and it is, it's polled higher by a small number of super savers and high-income earnings. the median balance is what you want. half have more and half have less and here the median balance among those years and older is a measly $64,011. average that out over 20 years and most live into their 80snd that's not a lot to pull out on a yearly basis. 000 or 4,000 a year? why are the savings so low? because many don't contribute the full amount the out to contrib

when "fast money" returns >>> welcome back to "fast money," the cannabis stocks continue to soar bob pisani is at the new york stock exchange with more details. hi, bob. >> hi, melissa marijuana stocks are riding a high some of the bigger cannabis names are up 60% to 80% in six trading sessions and average volumes are up anywhere from 50% to more than 200%. three big drivers are behind the rally. first, regulation, second deal news and earnings. canada announced it will legalize the recreational use of marijuana in october and global companies are all abuzz to get in on that action. that's the main mover. global spending on legal cannabis is expected to grow from $9.5 billion in 2017 to $32 billion in 2020. up 230% and that's according to bbs analytics. they're looking to pair up with pot firms. two weeks ago, constellation brands said it was investing a record $4 billion in canopy growth it will now own roughly 40% of that company that news lit a fire under other pot stocks like afria which is up about 80% since then. that's just one of many booze companies looking to catch a bid from pot

it's what could push the market to new highs and beyond this year bob pisani who no doubt, went to a number of bee gees shows back in the day on roller skates joins us now from the nyse >> no, neil young and nuwave, blondie, talking heads and no, not the bee gees, sorry, brian >> they hit an all-time high and the xrt is up 13% and the last three months hit an all-time high today that's important because the xrt is equal weighted index of about 90 retailers you don't have one big name and you don't have a walmart and amazon pushing it around too much i like this action amazon is on fire this year, but the big retail names like kohl's and abercrombie and 5 below, they're all soaring 30% to 50% this year. what's going on? first, the second-quarter earnings and i don't mean in general. the 108 retailers that retail metrics track are seeing earnings gains of 18% and that's almost as good as the whole s&p 500 gain of 22% so the retailers are making money why is this happening? well, the big box retailers are finally starting to solidify positions and are grabbing some business that amazon

bob pisani is pulling double duty and he's got the details. hi, bob. >> hello, melissa.s the value of retirement funds has risen as the market has risen good news. the bad news is the results are still pretty dismal. fidelity recently reported that the average 401(k) was worth 104,000 up 6% from a year ago. that's a good number the average ira balance includes $106,900 and almost a 7% increase from 2017, but we're still not saving nearly enough for retirement at vanguard, for example, the average 401(k) account value for an investor is 65 years and older was $209,984 this sounds like a good number and it is a good number, but there is a problem and that number is pulled higher by a smaller number of super savers and high-income earners, the median balance where half have more and half have less and that's what you want to look at. among those 65 and older, the $64, 811 average that over 64 years and that's not a lot of money to pull out on a yearly basis, 3,000, $4,000 a year, perhaps? why are the savings so low a lot of participants don't contribute the full amount that

bob pisani is at the new york stock exchange what's the driver there, bob >> tech and health care. definite pockets of weakness lets show you new highs. not a lot of them but almost all in technology and some of the same names we've been putting up for a while. apple, nvidia, microsoft, visa we would like to see a few more of these happening in the absence of that, tech holding up as well health care has just been a monster in the last month or so. right across the board i'll put up a few etfs biotech one, pharmaceutical stocks, health care equipment stocks have been strong, right across the board enormous in health care, another reason that the market is holding up on the down side, strong dollar, weak emerging market currencies, argentina or turkey or south africa weakness in those markets are translating into weaker overseas stock action here in the united states, emerging market, eem, etm. metals in mining when the dollar is stronger we get problems there internet stocks, as i mentioned before, tech holding up. a lot of debate about the dollar and what impact it's having on the

bob pisani has more on this market milestone >> break out the champagne many are saying this will be the longest running bull market of all time it began march 9, 2009 the s&p closed at 676. the bull market turns one day older than the bull market that started 1990 and ended in march 2000 there are two reasons not to get worked up over the headlines there's no universal agreement on what constitutes a bull or bear market and it's a stretch to say we're in the longest running bull market what is a bull market? the standard definition is the 20% rule when the bull market rises 20% from the bear market low another way to define it is the bull market begins when it surpasses the old high in this sense it began in 2013 when it passed the pre-crisis high of 2007 for the average investor, most important takeaway is bull markets last longer than bear markets. three times longer the average bull mar cut, 981 calendar days, 286 for the bear markets. a recession is not on the horizon, the fed has been slow and deliberative raising rates, that's why there's still more bulls than bears out there

turmoil be a threat to the longest bull market ever bob pisani is at the new york stock exchange hi, bob. >> short term, washington is not an immediate threat, at least short term here, so look what we've got right now. we have stable inflation, we've got a neutral fed, no credit stress, strong investment in the form of buybacks, mergers, acquisitions and dividends growing and strong earnings. none of this has changed if economic conditions were to weaken, we might get a pull back so maybe we had a garden variety of correction of 10% in the next three or four months but the bigger worry is what would induce a bear market, a decline of 20% or more now, most strategists are not going to insist that their clients sell on a garden variety 10% correction, but a bear market, if people thought we were heading down more than 20%, you'd be seeing calls to sell out there. this is all very well studied. what kills a bull market and what induces a pair market the two killers of bull markets are one, recession and, two, the fed suddenly raising interest rates. if it were to raise the funds target

let's go bob to bob pisani at the new york stock exchange. how much of this is bought the employment report was not too hot and not too cold. >> three-month average, 224,000, that's amazing for a late cycle. i think that it's a bullish report overall and modestly positive on the stock market it's been a very choppy week here, some winners and losers. we have talked endlessly about the commodity costs. kraft heinz had a decent report. clorox had a decent report this week kellogg -- that's a 52-week high, $72 on kellogg so we bottomed a bit on the consumer staple names. another one i haven't talked about recently is the retail space and real estate investment trusts they had decent numbers overall. they're notably up this week they weren't all reporting today. last couple of days. that's been a real turn-around for that space not helping the stock market is oil. we can't get above $70 we've had supply concerns. it's been crummy for all the big oil names, anadarko, eog playing the selling on the trade fears did not work we are near new lows on v

bob pisani, thank you. >>> coming up, more on the running of this bull market. first, rick santelli, what are you watching today >>> you know, i'm looking at the boards and yields that are far lower than they started out the month of august. why? economic fundamentals seem strong 'lta autheeans after the break. you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ >>> i'm mitchechelle caruso-cab. are stocks about to make a big move out of what we have seen in washington over the last 24 hours? >>> and the u.s. market is no longer the best place to be. see where the firm says is the best place to invest instead >>> and what target's big earnings say about the rest of the market "halftime re

bob pisani has the latest. >> stock pickers are having another business mall year twice a year we getmorning star and we figure out what they're doing we got very poor performances. 36% of active stock managers outperformed their passive fears over the last 12 months according to the report. it wasn't much bet err year ago. 4 % outperformed in 2017 why can't active managers outperform a number of issues they have cash on the sidelines. so underweighting winners is a big issue. if you're underweight apple, third, it's the fees, the highest hurdle an active manager faces is their own fees. active funds that charge the lowest fees were able to outperform their passive peers more than those that charge the highest fees so if you charge 1.5% and your competition charges a half percent you're going to underperform in the long term. ben johnson who co-authored this report had a good conclusion he said investors would improve their odds of success by favoring low-cost funds than high cost funds over the long term melissa, morning star emphasized this includes passive funds as well as active f

under way, and a number of big names haven't been doing so hot following the report let's get to bob pisani stock exchange for more hi, bob. >> earnings growth is still going strong and the quarter's looking great, but a number of stocks have gotten punished in the base of lower guidance and other metrics that missed the mark ta take twitter, for example, they had in-line earnings and expressed weak monthly average users and that took the stock down 20% the day it reported another one, intel beat on the top and bottom line, but delays on new chips and some margin concerns weighed on the stock and they were down 9% the next day. and caterpillar, they sold 3% the day after its report and the company beat on earnings and still finds itself squarely in the crosshairs of a u.s.-china trade war. american express fell more than 3% after missing on revenues due to higher marketing costs and other expenses as far as sectors go, energy had the biggest miss, and about 10%. shares of royal dutch/shell got punished after earnings fell short of expectations and though shell did announce the launch of a m

happy friday bob pisani is with me. we'll get to all those stories in just a moment, but let's check on the markets nice turn around today dow swinging around more than 190 points in today's session. on track now to post the sixth positive week in seven it's been boosted higher by talk of china trade talks we've got all 11 sectors in the s&p positive the debate of the day, i know you know it well, president trump's tweet here the ceo of black rock has been advocating for changes and short-term thinking for a while, he says i'm encouraged to hear paem from both sides of the aisle talking about the need to promote corporate behavior that's more focused on the long-term those the precise policies for getting there need to be thoughtfully examined and debated. so he's not weighing in on whether this is the right solution scrapping quarterly earnings president trump is getting a lot of backing from the business community on this. >> not surprisingly. the ceos claim they want to think great thoughts and all these people that

that they are adequately preventing fraud and manipulation back to you, melissa >> bob, thanks bob pisanie nyse if not now, when are the bitcoin etfs coming? our bitcoin ballers are at the plasma steve? >> we had this rejection the other day and most people, the sentiment was that we weren't going to get any etf to me, february 2019 is probably the likeliest and the earliest that we can get it why do i say that? the van eck decision will come at the end of september. they actually have until february so i would expect in september they push it off we also talk so that's 2019 and also the surveillance, and the sec talked about fraud and manipulation it wasn't so much preventing it, but how do they surveil it do they have an arrangement with other exchanges? are they globally regulated or at a nasa level, regulated exchanges to surveil what's going on and finally, the futures market isn't mature enough and that's probably true at this point in time although it's growing that's why i think as we get into 2019 we get a better shot of it. >> here's cme futures and open interest of large holder

back to you. >> bob pisani down at the stock exchange >> for more, let's bring in dan moorhead, ceo ofra capital and despite the plunge he's still betting and you can see him from san francisco it's good to have you on fast tonight. >> thank you for having me. >> i'm sure you heard pisani's report right now what do you think of the etf trouble and the decline in bitcoin that we've seen? >> oh, i think the main thing to remember is that bitcoin is an early stage venture and it has a realtime price fee and that's a unique thing and people get excited about the price and overreact, i think, to announcements and there have been a couple of big things coming out in the last week and the etf rejection is the same story we've had for five years and the sec has been very cautious with an etf. >> right how much do you think an etf matters to the success of bitcoin or at the very least to help right this what seemingly is a listing ship? >> oh, yeah. it's all perspective bitcoin is up 82% year on year so it's still doing very, very well and the perspective one should have is given that bitcoin i

for "nightly business report," i'm bob pisani at the new york stock exchange. >>> meantime today, wall street keeping aneye, close eye on a courtroom in new york city where president trump's former personal lawyerel micha cohen struck a plea deal with federal prosecutors. he pleaded guilty today to a variety of charges including tax fraud and making false statements to a financial institution. he also and significantly admitted to violating campaign finance laws at the direction of a candidate for federal office. he arranged to make pages for the principal. of influencing the election. that caused stock futures to drop after the market closed and separately, president trump's former campaign manager was found guilty on eight of 18 counts involving financial crimes. so, clearly,s there political risk in this market, but what else could cause the bull to grow claws and turn into a bear? dominic chu takes a look. >> the baseball a analogiesut the market are all over the place. are we in thinearly ngs, the middle or perhaps the ninth inning of a bull market and maybe it's the extra innings

bob pisani joins us with a look at what is moving the markets. >> i haven't seen vix near 15 ninety-two while. we are getting a mini rally. we are dealing with a trifecta of problems. the biggest outline were the big market issues. we have concerns about emerging market contagion out there. we had argentina raising rates to deal with concerns about turkish contagion. saw a big climb in revenues. the third whammy is the stronger dollar we have been dealing with. you can see the impact on the commodity complex. free port down 8% again today after being down double digits in the last couple of weeks. the whole materials complex has been weak. it doesn't matter what you are looking at. the coal complex is down four, five, six. it doesn't matter what you are looking at. everything is down four, five or six percent in that space. bottom line is this. try to keep it in perspective. certain sectors are getting hit. we are -- just take a look at the global market. we are two percent off historic highs. look at the rest of the world. brazil is 30%. china is 30% off. japan is 10%. germany is 10% o

bob pisani live at nyse with details. bob. >> hello, mels oi.tirement and this order tries to make some of the rules modern a good idea. two points stick out first the order would direct the treasury and labor departments to consider issuing regulations could make it easier and cheaper for smaller employees to band together to offer 401(k) plans for workers. right now an individual say a restaurant can't offer the retirement plan to employees very easily. but it's did you have difficult to join with other businesses or restaurants to offer a multiple employer plan provided by a financial services group the idea here is to make it easier for say uber drivers and others in the economy to join the retirement plan. it's a good idea second the president orders a review of rules retiring retirees to take withdrawals after 70 and a half. it's out of date people are living longer, working longer and it should be raised and the mortality tables should be change. it's a good time to take a look at retirement rules. back to you. >> fascinating story here.

bob pisani joins with us the outlines hi, bob. >> good news and bad news.the value of retirement funds has risen as the market has risen the bad news is, the results are still pretty poor. fidelity recently reported that the average 401k was worth $104,000 in the second quarter that's up 6% from a year ago the average ira balance increased to $106,900. that's up 7% from 2017 that's good news but we are still not saving nearly enough for retirement ativan guard, the average 401(k) account for an investor 65 years and older, $209984 the median balance is what you want to look at. half have more, half have less among those 65 and older it is $64,81 average that out over 20 years i mean you can expect to live into your 80s at lease that's not a lot to pull out on a yearly basis $3,0004,000 on the median level. why are the savings so low. >> many part pants don't contribute the full amount they are allowed to contribute. it is amazing. many don't participate at all. only 72% of eligible employees are enrolled in their employer's savings problem. given that emplo

. >> bob pisani at the new york stock exchangor >> thanks staying late for us, bob. >> always good towith you, ll. >> as we just mentioned, the market got a lift on those hopes with a trade truce between the u.s. and china. th follows a standoff between the two countries that saw riffs levied on billions of todays worth of goods and the white house gave us a glimpse into the strategy for those stocks. kayla tausche picks up the story from washington. >> more than two months since their last face to face, economic officials from beijing head to washington next week with more tariffs on tap as soon as thursday unless talks reach anotherruce. china's vice ministers of commerce and finance accepting a nvu.s.ation to meet with the undersecretary of the treasury, signaling lower-level talks than the two nations held before. white house economic adviser larry s kudlowgested the u.s. would havehe upper hand. >> business investment is collapsing in china according to the numbers.du industrial p has fallen and now it's plateauing at a low level. people are selling the currency. there may somebo

bob pisani has more. >> stock pickers a having another dismal year, twice a year, morningstar publishes report that measures the performance of u.s. active stock funds against the passive peers. the latest conclusion, same as years past, they're losing o against the passive brethren. the active u.s.dtock f managers outperform their passive peers over the last 12 months. it wasn't muchetter they year ago and just 43% outperformed in 2017. why can't active managers outperform? they have cash on the side lines and that's the first problem. second, they also have the wrong mix of investments and ei undet has issues. for example, you're going to underperform. third, this is the mos important thing. they charge fees, higher fees and the highest active manager space is their own fees. they charge below its fees were able to outperform their passive peers more often than those who charge higher fees. think about it. it makes sense, if you charge 5% nd your competition only charges a half a percent you are going have a problem performing long term. investors would greatly improv their odd succes

bob pisani is on the floor of the new york stock exchange. bob. >> reporter: i think most traders think it's not a good idea to end quarterly reporting and i don't. i haven't thought so for a long time who wins when there is less information that's actually available out there? my opinion, you get an information asymmetry out there and professional investors would have access to more information eventually reducing information is not going to eliminate analysts' reports or anything like that. if the companies don't set the goals, wall street will set the goals and people will be unhappy with the guesses people are going to make. i'd say let's turn this upside down instead of let's change reporting, let's change the ceo mindset. they all say we want to think great thoughts,we don't want t be bothered with short-term stuff but they themselves are short-termers. the average ceo is under five years' term now. ceo compensation is what drives their behavior and the compensation is based on the stock price. how about we change that around. that's the

. >> bob pisani, that was fun. >> you have been a joy to work with thank you for inviting me. >> you are highly entertaining, as well. that does it for "closing bell" "fast money" begins right now. >> that's right, "fast money" starts right now, we are live at the nasdaq marketsite overlooking times square and i'm michelle caruso-cabrera, and the traders are steve grasso and don nathan tonight on fast, the development in the crypto universe that is a game changer for bitcoin he'll explain. plus disney earnings are on deck and one trader middle it could add magic to your portfolio. first, though, we'll start with the big winners this week. check out some of these names. we talk about apple and tesla all week and pfizer was up 6% and kraft hines up 7% and coarse up 8% and a big week for apple hitting a trillion dollar market cap up 9%. we thought it would be a good time to play trade it or fade it >> i think we understand. >> if you tell us if your trading it, and fading it, aka, selling it >> and we play this gaumme a lo and in this case, fade it is the right thing. fade it doesn't me

let's get to bob pisani.his feels like an environment where people are getting out of the economically sensitive sectors and perhaps into more defensive. >> we have talked about this before the impact of the washington, the political situation, may have an uncertain impact on stocks but china trade does time and time again you put china trade-in the headline, even modest new tariffs imposed today and they are modest you see a predictable result dollar goes up and certain sectors of the u.s. stock market go down. tyler was mentioned steel metal stocks you see u.s. steel free port usually down this happens whatever the tariffs come in. the commodity sensitive country, australia, emerging market countries, anything around china, anything in south africa, anything in brazil, again it's very typical to see 2% drops whenever tariffs come into the headlines. the other one of course is china internet stocks. they have been bouncing recently as the dollar has been a little weaker but today all of them down again. this

bob pisani has more. >> it's not just a big year for earnings.t's also turning out a big year for buybacks. teybacks are exp to rise 46% from last year to a staggering $1 trillio why the buyback binge? partly because of tax reform, but also because o revenue growth, which has been a very big contributor. here's the good news. this is the most popularonth for repurchase execution. it's even possible this recent rally is partly fueled by buybacks. the buyback blaout period has ended for most companies, so companies can resume buying again. not surprisingly, the tech sector in particular will benefit from surge in buybacks. tech has accounted for 40% of the prepurchase authorization. here's the bad news. we tave to points out every time. not all buybacks are created it's share count reduction that you want. companies are indeed reducing their shares outstanding by buybacks, apple is a good example, they have been reducing their shares outstanding by about 5% each year since 2013. that's a lot. but many others are increasing their share count by offe

for "nightly business report," i'm bob pisani at the new york stock exchange. >>> there is also progress being co.e on trade with me a top white house economic adviser said that washington is quotevery, ver close to coming to an agreement. mexico's economy minister mad simila comments today saying he hopes to resolve issues surrounding t renegotiation of nafta by the middle of next week. > now despite the positive news on trade today, there are other issues the market has to contend with and that's one wf the reaso pimco is talking about the potential risk of recession. mahirwara is chief investment oins us at pimco and he with more on that. you're waving a yellow flag in this regard. let's go through indicators you're watching. theirst is inflation. things are picking up, aren't they? >> yeah, we're starting to see inflation pick gup. noth dramatic. inflation's going to end this year around 2.5%, up from 1.5% last year. inflation is a lagging indicator, and the key thing is where we are today, if you're wrong about the 2.5%, all the risks are to the upside. whether it's from a trade war

of course getting very near the $1 trillion market cap bob pisani is down at the new york stock exchange with more. hey, bob. >> hey, michele. apple is a stalwart but the rest of the market has been slipping. apple is doing something and everybody else is stable but all the other faang names were much higher two hours ago elsewhere we're just waiting for the update to show you the shares outstanding because we're getting close to $1 trillion let's show you apple's buyback we call them a buyback monster because every year they buy back with 5% of the stock this is a five-year chart of the shares outstanding in apple. down about 25% as i mentioned. elsewhere, let's take a look at some of the software names earlier in the week they were selling off these software companies. not anymore. they made a nice little comeback here so this growth story is back to a certain extent don't want to push it too far. a lot of pockets of weakness out there. energy has been terrible as we have some supply issues. official has been below $70 for the last few days. retail has been kind of crummy it's held up

but this is dragging everything with it. >> bob, thanks >>> bob pisani and nyse.ussell hit agnew high kevin o'leary has been a big believer in small caps and joins to us discuss that trade and throw in tesla as well kevin, good to see. >> you great to be here melissa. >> small caps caught a bid this year on the thinking that they're more shielded from some of the international macrofactors, the trade issues if the trade issues seem to come to an end or if things become better on the trade front, does that spell the end of the small cap trade? >> no. i'm going to bet and i have continued to stay on this trade, that for the next two years the full impact of tax reform will play out in enhanced cash flows in small caps. because what we have seen now is primarily driven by a deregulatory -- deregulation removal because a lot of the states that were in with california, texas be, florida, new york where the small businesses operator headquartered have had relief of regulations we never talk small things like restaurants and like restaurants in the back and frosted glass

as bob pisani said it's late august another very busy day for earnings iac group, yelp and booking.coms as soon as they are out joining us today, mike santoli victoria disney trailed. michael kors led it higher cimarex energy was down. >> the market held steady. essentially a half of a percent from the high. you don't see indexes essentially hold still much as as they did today. half of all volume up, half down obviously a lot of offsetting action within the indexes not much it's a logical place to pause right up against those highs from back in january >> comfortable but drowsy. >> it felt that way, right, as opposed to outside which is oppressively hot and drowsy. >> victoria what's your take with that sector rotation could that continue over the summer or are we seeing signs the interrogatories is done. >> you'll don't see some people have been in these large tech names not surprising to see them take a little bit off the table start looking for some value stocks where they can have more room to run. i don't think we'll see a huge shift. maybe trimming some positions but definitely

bob pisani has more. >> hello everybody was watching that as it happened. they want more volume.pple, four times more volume than normal. that's good if you're trading apple. the rest of the stocks about average. f.a.n.g. stocks stable, but volume is not going up just because apple evaluation hit new highs. apple's $1 trillion, guess what else florida. >> apple has the same valuation as the gdp of florida. apple is bigger than the entire s&p 500 small cap 600. apple is bigger than the gdp of turkey turkey is the 17th largest country in the world it's bigger than the netherlands. they have a 2$244 billion cash hoard. that's larger than 97% of the s&p 500 on a market cap basis. only 14 companies have a market capitalization than the cash that apple has enough silly comparisons the important thing is they've done it despite nathey've been lowering the market share count for the last five years. it went from 6.4 to 4.4 billion. look how steady that is. they have been remarkable and consistent in the amount of stock they're buying back. that means all other things being equal, apple's

bob pisani with the details.we go again, bob. >> twice a year we do this a report that measures the performance against active u.s. stock funds against their peers. stock pickers are still losing out against their passive brethren now, just 36% of active u.s. funds stock managers manage to outperform their passive peers over the last 12 months. it wasn't much better a year ago. look at that, just 43% outperforming in 2017. so afghanistan it's just getting worse. so why can't active managers outperform consistently? well, there's several problems first, generally too much cash on the side lines. second, often just the wrong mix of investments if you're underweight apple, just as an example this year you're going to underperform the index. and third, the fees they charge. the highest hurdle active managers face is their own fees they charge. active funds that charged the lowest fees were able to outperform their passive peers more than those that charged their higherpeers. if you think about it, you're going to und

bob pisani, let me reiterate, what a difference a day makes. >> it does what the markets are tellingall you want about turkey contagion, but it's china growth stories and china trade resolution that really moves the markets. i want to show you the futures overnight, 10:00 a.m. is when we first got the word that there might be china talks move 12 points in one minute overnight, that's 10:00 a.m. then around noon we got confirmation that china meetings will be set for next week. moved another five or six points you see we've come off of the high the markets, what matters here is resolution of that china trade war issue. that ameliorates, doesn't make it go away, but ameliorates the china growth story second only to the u.s. growth story. turkey contagion, still very real but it's right now an international story. sector movers today the ones that were hit on the stronger dollar the ones with issues with global trade. oil and gas stocks, steel stocks, copper stocks, chinese stocks all moving up as market leaders. look at the s&p this week. more evidence that this is what it's about down

of all the concerns that bob pisani raised, we're comfortable with most all of them. the real concern is the possible trade war. that's the one that we're worried about. watch out for that that will keep popping up. when it does, the market will pull back. pick stocks you like buy in that weakness the best way to make money going forward is to look at the laggards they will be a better place to make money >> i knew you would say that, david katz bob, i remember all the news letter writers back in the day and getting those news letters in the mail. don't you think we're in a complacent period now? the fed is raising rates, but the long end of the yield curve is lower it's not responding to that. the vix is where it is we keep hearing about the trade tensions with china, but the market is sitting near all-time highs, and we have come off one of the strongest earns quaings quarters in about a decade isn't that the definition of complacen complacency? >> you are right i think complacency will carry us to 30 or 40 as we get closer to year end, as we see a shift in senatori

bob pisani, go with mexico in the very near future. >> they are making progress on china.that. we have seen aluminum stocks and we have seen steel stocks rally on those expectations. >> and there it is. closing bell. the s&p down on the day. nasdaq having nice moves. ♪ >>> welcome to "closing bell." david faber rejoining me in just a moment. let's look at how we are finishing up the day on wall street. when the dust settles dow closing lower by a third of one percent down 87 points at the close. s&p 500 i think williford frost would call it bang on flat, totally unchanged shrugging off the political uncertainty that came from both of trump's former campaign manager and former lawyer being guilty. nasdaq composite did manage to close higher. this is the fifth day in a row. russell 2000 index of small caps closing at a new record high. we will discuss this record bull market and whether there are signs that the rally could be nearing an end. joining us michael santoli and nancy tangler is here from heartland financial. leading the dow exon mobile. on the s&p lowe's was the b

let's get to bob pisani for more on the record-setting bull run hey, bob >> and the important thing ist's the longest one unless we drop 20% going into tomorrow starting tomorrow this will be the longest bull run ever here is this really worth celebrating? i think it is, but just bear in mind there's different interpretations of it. first, there's no standard definition of what constitutes a bull market overall. there's that 20% rule, but there's nothing magical about that it says a bull market begins once we rise 20% from the bear market low, but there's amount ti ways of looking at it one simple way of looking at a bull market, you got to pass the old highs. look at this remember we hit the historic highs? that was way back in 2007. october 2007 some people say that's a good way to judge the bull market it begins once we pass the old highs. again, different ways to look at it for the average investor, here's what the most important thing for everybody to bear in mind. bull markets last longer than bear markets, and this is why the stock market keeps going up. the average bull market,

. >>> as the nasdaq clicks to 8100 we have bob pisani here on the desk obviously kind of this sense ofof least resistance we are drifting higher the stock market got a lift when the dollar started to sag. it's been that dynamic for a while. >> what's amazing on a slow august week, trade is the gift that keeps on giving for all of us it's remarkable. we had the canadians foreign minister making generally optimistic comments, leaving, coming back again, that was kind of fun to watch, and the market lifted quietly it's not a huge rally, but we're rallying here again. we're into report territory. i attribute this to optimism on the trade fund so all of this week, what was flattish trading in europe as well as in asia, the incremental mover has been the trade stocks. so china internet stocks, copper miners, material stocks that have been moving emerging markets have been strong global autos have been up. chinese auto stocks up 10% european auto stocks up 4% ford, gm up about 4% this was at the open these are even better now. so it's clear the trade is the mover, marginal mover for the marke

bob pisani is breaking this down >> hello brian, it did not last very long.d it happened before bitcoin is trading back below 7,000. the important thing here is one of the reasons sec gave for denying is fraud and man affiliation. the scc argued they got a big booze today that claims dozens of trading groups are manipulating the price of crypto currencies 175 pump-and-dump schemes involving 121 different digital coins. that's a classic pump and dump this is of course is illegal >> crypto currency exchanges are unregulated market so you can get away with a lot of this kind of activity. now there has not been a lot of good news for bitcoin and friday's news that the continental exchange will be setting up a regulated bitcoin exchange goldman sachs don't believe in the rally either goldman sachs said the price of bitcoin will likely to decline saying they believe crypto currency do not fulfill any of the traditional roles of currencies we know goldman is interested in setting up bitcoin trading operations so there is many different parts of that company and thei

russell hitting an all-time high this morning we are joined by bob pisani and mike santoli, as we lookk in amazement, wonder what's left. >> the strength of the rotation. every time something falls back like tech and smemi conductors, something moves forward. retail is on a tear. health care, biotech, pharma are hitting new highs as well. every time we fall back, the market seems to hold up well until something new goes into the fore that shows underlying strength the market does not historically turn down dramatically with advanced decline line at new high technicals are encouraging the real question, how long is this going to go on for. >> i would say there's a couple of ways you can make the case, you're seeing the age of the market, wear and tear. nothing critical, i don't think it is anything that says this is a top. back in january we had a huge momentum move and then you fell sharply off that everyone said, us included, that's not how market peaks happen they don't run up in a vertical way and crack from an all-time high and it is over. usually you have reapproach of the high, l

. >> i'm bill griffeth bob pisani is ready. >> reporter: i've been standing here here's what's important. we had a nice rally going yesterday. i had my new narratives. hispanic highs and then got interrupted because elon musk sucked all the oxygen out of the stock market since noon yesterday we've gone nowhere, drifted lower enough about my complaining. let's look at the sectors. we have some problems with oil they are down. industrials aren't helping any consumer staples were great until a couple of days ago nothing. a little bit of positive on bank of america and citi. tech modest gains. not enough energy is a problem. weak crude draw down weaker than expected oil's lowest levels in a month all the usual high beta names are down 2%, 3%. commodities have a lot of volume today. elsewhere take a look at some other things, commodity stocks in general, all the steel stocks have been horrible the last few ace. nucor, u.s. steel straight down for a week and a half. a few modest moves google is positive nvidia is positive don't panic. second week of august. vix is sitting at ten, heavens but i

have not been a leadership group, have the financials >> let's get to bob pisani on the floor. >> it'sple story today we have that strong dollar, weak emerging market currencies, and that's at the margins impacting our stock market and having some effect on the global markets let's take a look at the sectors we have. you have that strong dollar, things move up you get emerging markets week, the eem, metals and mining stocks week. the xme. the second one china internet stocks, generally underperforming. banks when the rates are a little lower, banks had been going up but the rates stopped going up so they've been underperforming as well. sectors outside here if you look at emerging markets, where we are in some of the global markets here, china was down indonesia was down thailand was down. all the usual suspects when you get currency pressures that are going on here. these problems with the dollar started really earlier in the year emerging market vs have had a problem. there's the dollar index beginning late march, april, the dollar started rising and that's when these emerging market

let's get straight to what's driving the big sell-off at this hour bob pisani is at the new york stock exchange. >> on the surface a lot of this is about contagion concerns on turkey but overall it's really about slower global growth here's where we stand, the major issues turkey a contagion, indonesia raised rates proactively to stave off any contagion, argentina raised rates it was a big shock when tencent reported a decline in profits year over year chinese tech companies don't do that that reignited concerns. you can see what a strong dollar and slower global growth does to these commodity names. look, this is today. we're way past 20% declines in a number of these names. this has been going on for a while, partly on that strong dollar, but slower global growth energy, we've got oil right at 65 we're ready to crack $65 on oil. it doesn't matter what you're looking at oil services, oil drillers, big oil like conoco, it doesn't matter everything is down 4% to 6%. again, this is just today. i'm not even taking for the whole week emerging markets, we've been talking about that for a lo

our bob pisani has been watching this all day long. joining us from the floor. >> hello, carl really simple. this is a little bit about contagion and maybe a little bit more about slower global growth. let's take a look at two big issues turkey contagion,raised rates. that obviously was to stave off and stop the contagion talk. we had earlier in the week raised rates we had a bit of shock when ten cent, one of the big global tech companies, big one in china, had a drop of about 2% this was partly on concerns about gaming slowdown and crack down on gaming by regulators it was a shock and our futures moved on that. take a look at what happened in terms of the sector laggards it's about emerging markets and commodities. there's your eem at the top, down another 3%. that's down 10% in the last week metals and mining stocks, energy stocks, materials. these are all commodity based and they've had an ugly time as the dollars risen and there's been slower growth concerns over what's the sector leaders here you can see the growth concerns becau

let's bring in mike santoli and bob pisani >> so on the surface this doesn't appear to be existential threat they only get about 8% of their revenues from trading that goes on here. you see how small that is. basically they're a bank they make money on the net interest income and charge fees. there's also that 20-80 rule 20% of the traders do 80% of the trade. i think that underestimates it, i think there's a real problem here i'm concerned about asset gathering. and that's why i think the story is important the ability to bring on and retain assets is the single most important thing out there. if i had a chase account i might have put it into an account to do trading and now i don't have to do that by the way, great story. it got a lot of traction on the street, a lot of talk about it >> what do you think, mike could it increase participation in the markets and how does it change the dynamic in the industry >> i don't know it necessarily introduces people to the idea of trading just because its free. i remember a few years ago when robin hood did launch, you had the incumbents out th