just the idea that you would have a voting member like bostic right now.oday on this whole idea. >> he's the only one of the five speaking we had cakashkari this morning. he did not make comments on monetary policy. two this evening, both of whom are not voters but i think the important takeaway is the fed doesn't see this 300 or 400-point bump here or what in total, are we 5% down below where we were at the highs now. on or thereabouts. that is not something right now that is enough for them to take them off of their plans to gradually raise interest rates toward a neutral rate. >> that's a lot of fed speak for sure today thank you very much for that, steve liesman. let's turn to the global picture. the future investment initiative event kicking off in riyadh. saudi arabia today this following weeks of controversy over the death of a prominent saudi journalist that led many business leaders to drop out of this particular event. hadley gamble's live on the ground for us in the kingdom in saudi arabia and riyadh. hadley >> that's right, dom just hours after

atlanta fed president rafael bostic offered an upbeat outlook on the economy. he says he believes the central bank should continue on its path of gradual increases citing the risk of economy overheating. he explained that there is little reason to keep the fed's fo on the gas pedal. >> president trump is pushinge dea of a middle class tax cut. he floated the 8:45 again today duringhoto opportunity in the oval office. >> we're i putting a tax reduction of 10%, which i think will be a net neutral because we are doing other things whi don't have to explain now. but it will be a net neutral. but great for m thedle class. it's going to be a tax reduction of 10%dlor the m class. business will not enter into it. and this will be on top of the tax reduction that the middle gottenas already and we're putting in a resolution probably this week. i think you folks know about it. and kevin brady has been working on it hard couple of months. ee will put that in and start the work sometfter the mid-terms. >> congressman brady chairs the x writing house ways and means committe

rafael bostic is believed to be the first central banker to comment on that case. today, the price of domestic crude climbed although down overall for the week. >>> well china's economic growth is slowing. the world's second largest economy reported the slowest quarterly growthn nearly a decade and some global companies are starting to feel the effects as well. seema mody explains. >> reporter: china's kissimmee cooling down as t u.s.-china trade tensions heat up. chinese officials blamed external rates and trade frictions for drop in growth. the central bank followed with new measures to boost the economy in an t attempto ease investor concern about growthll g. the slowdown in the world's second largest company is ratcheting financial pressure and compani doing business there. >> the truth is it's slowing. and it's really masking i think a bigger problem that's developing. the -- the owners of businesses that i know and investors in china are deciding that the -- the trade war with the u.s. is more offing into a longer term cold war of sorts and that it's not goin

maybe we will put a little more weight on bostic today. in the other camp saying -- what is the argument that they should have double down even more? kathleen: bloomberg economics is saying bank of indonesia this a rupee to get out of the up. you will see five rate hikes since may. stabilized,ee has but you still have a trade were going and concern about the current count rising and not falling. meanwhile they dropped important forward guidance on policy thatg -- no longer saying policy is frontloaded or preemptive, another strong signal. bloomberg economics as they will have to raise rates by another 50 basis points by the end of this year. i want to echo what adam haigh said about china. they're adding liquidity to the credit markets. we had a big story about being u.s. companies looking to move their supply chains out of country -- out of china to other countries. is watching the pboc to see if they get more aggressive but italy's battle with the e.u. over the budget, the prime minister is now involved and that's one of the biggest thin

bostic, we'll get new home sales in an hour u.s.arkets are raising those early losses the dow pointing to a nearly 100 gain in the open, thanks to boeing more than a 100 companies reported on the busiest week of earnings texas instrument, they're all down microsoft and tesla, after the bell the president fights with the fed, he may regret nominating jay powell it is the biggest risk that the economy faces. the jump is due to boeing. upbeat results and guidance. it happens one day after the wild ride on wall street s&p is in the midst of a five-session losing streak jim, if we are down today on the s&p, that's sixth straight we have not done that since last week >> i will tell you, carl, yesterday was the wild ride. if you look at the futures right now, we would have made up for everything we were down 20 at 4:00 and europe was down badly and everything came back xylexempt r the fundamentals other than boeing, were not good when you have one company making up for all the others, i don't know how much power do we have i feel a lot of

keep an eye on raphael bostic of atlanta.ew days ago he said there were no significant dark clouds on the horizon, the u.s. economy is chugging along. but he was the first fed president to bring up the investigation into the murder of washington post journalist jamal khashoggi and what that could mean for our relationship with saudi arabia as a potential geopolitical risk that could derail the strong economic growth so far. he will be speaking this afternoon. we'll be keeping tabs on all the speakers and what they have to say. >> ylan mui, thank you bob pisani has a key look at the stock drivers. >> the stocks hit by geopolitical concerns are the weakest today. semi conductor stocks weak, parallel in china a little bit china up monday, we're up. china down today, we're down "the biggest loser"s in the global wars we're seeing consumer staples stocks relatively flat. procter & gamble, coke, et cetera, down fractionally right now. on the guidance situation, i want to point out, 3m is a disappointment but we're not getting disap

rafael bostic spoke last week. he is speaking today and twice tomorrow.haps they're trying to do the right thing but it just feels like an extra burden for investors, particularly traders. >> the fed should shut up. they should keep their mouth shut and just do their job. they don't do a great job what they do, they have no problem. they have no common sense. they understand what the models say, but the models are not real world. you and i are both from the street. we both grew up in a rough area. of course you had to have common sense. you didn't have time to go back to the manuel to figure out what you were supposed to do next. i had to act at that time. they continue to follow antiquated models that do not relate going on today. charles: i will put todd horowitz down as a maybe on the fed. gentlemen, thank you all very much. always appreciate speaking with everyone of you. it's great. >>> as we continue coverage of market i will answer your questions. you hit me with a bunch of them we're always interested in making money but sometimes we have hold you

but the only voting member of the fomc speaking is rafael bostic, he brought up the murder of jamal khashoggione of the geopolitical risks we will keep you posted on any news out of the speeches >> thank you for that. >>> as we promised, mike santoli has a look at the overall market, what broader themes can be seen. >> big picture, s&p 500 is basically flat, up less than 1%. with earnings growing at more than 20% clearly the market all year has been not willing to put a multiple on this corporate performance. what is the market sniffing out or bracing for, that's the question housing and auto has been weak the trade situation has something to do with that. the late cycle thinking has perfect v pervaded in terms of levels, arguably where we are now, it seems like textbook retest, meaning the market has gone back to levels we saw before, did not go into free fall once it broke through. in february we undercut the first low. who knows. seems like too many people are hoping for a successful retest, so that also comes into the mix as well. right now it is a matter of how the market reacts to this

we had rafael bostic of the atlanta fed yesterday saying the bar would be extremely high for the fed not to raise rates given the atlanta fed's raise forecast for growth for the next couple of years of course the data dependent he says but the likelihood of not taking that path would be very, very low. >> you look at economists consensus right now, the number is 2.5 in 2019 and 1.9 in 2020 versus three plus this year. that's not accelerating growth you look at inflation break evens they are not accelerating. the commentary is one thing but it's anecdotal the question is you look at prices of automobile manufacturers, the stocks yielding 7%, trading on 6 times earnings, are they going to be able to pass on the price increases to the consumer? i think the stocks are telling you that's not going to happen. >> but if you are jay powell at the press conference in december and somebody asks you jay, why did you raise rates in december but effectively issue a dovish statement about future guidance, what data are you seeing what data would you point to that would indicate that there is a rea

. -- raphael bostic of alanna saying that the fed is hashogging the jamal k murder.ase there was some thing like sanctions on oil that would hit that market, raise that price. and i want to conclude on the people's bank of china. friday, the head of the pboc said that the moves in the chinese stock market did not reflect fundamentals. that theso indicated pboc could be ready to take more steps to support corporate credit, support lending. i think those types of comments, amidst all that is going on, will be closely watched on that central-bank watchlist. .aidi: thank you we will be watching china very keenly. -- the vice premier and other officials have come out in a record needed event to shore up sentiment amid the global market selloff. stephen engle joins us from hong kong. is this an indication of how much pressure beijing is feeling from the trade war? stephen: absolutely. talked as well about the calvary coming to the rescue of the stock marketl also, the big. wigs. are not talking up the economy. they are talking up the private economy as well as the stock ma

we have cash curry bostic followed him. tonight two more speakers, charlie from chicago i don't expect a selloff like this or the ones before it to change the feds outlook of a december rate hike and probably three more rate hikes next year as the fed wants to get two neutral. call it to the 3% range. the fed might change its outlook. >> what was the show called? >> car talk. >> car talk. >> it was a call-in show people called about problems getting their car started. >> there we go fed show a new show >> yes >> cars and the fed together >> done. >> steve, thanks very much let's continue our discussion we have nick and jim. good afternoon to you all. i'll start with you, art main reason for selling this morning and what do you think turned it around for us? >> the strongest region was china. they made the statement they were not concerned about trade wars and tariffs it convinced everybody, oh, it doesn't sound like they want to cooperate. it pulled the plug on things we started out with heavy selling in the morning when th

charles evans and rafael bostic have events scheduled.dent trump travels to erie, pennsylvania tonight for a rally. let's check on u.s. equity futures. we are seeing a positive open for the dow jones, up by 31, s&p 500 up in the green indicating an open up 2.5%. the nasdaq looks down about 4%. >>> rising interest rates have equities on edge joining us now with his read on the markets and yields is chris zaccarelli from independent adviser alliance you made the point we have seen a tilt away from growth, a tilt towards value in probably most sharply in the past month. over the past few months does that continue >> i think it will continue in the short run, but by the time we get to the midterm elections you will see a reversion back to growth the economy is strong. corporate earnings have been great. we're heading into the new earnings season. on friday the big banks report and we'll get into the belly of earnings if earnings are positive all the positive news should bode well for stocks there's a lot of fears on the table now in terms of