let's get to rick santelli in chicago. >> well, carl, this is the eighth read of the year for this data point set, production and utilization. down 0.4 industrial production which means it's a tie. we've had four negative numbers for 2016 and four positive numbers. if you look at the utilization rate, 75.5, a little less than we were looking for. and that follows sequentially 75.9. so definitely not the type of number we were looking for. we look at the long end, continues to move higher. we're back over 170 in a 10, whether it's lack of confidence in central banks, the retail sales data, or is it just a continued move as fresh longs flee the long and we'll continue to monitor. but even this weak number doesn't seem to be putting a bid back in the long end of the treasury curve. carl, back to you. >> big morning. rick, thank you so much, rick santelli. >>> it's a big moment for twitter as well as it looks to attract advertisers. the company's going to live stream its first nfl game tonight. new york jets versus the buffalo

>>> rick santelli from the santelli exchange. good morning, rick. >> mike, thank you.e, quality credit of the euro zone started to trade up in price, down in yield. do keep in mind, from july the all-time low closing yield is roughly -- loetslets not split bases points here -- around minus 19. today we traded around minus 16, currently around minus 14. a boon swoon. why is it important? because of policy. all central bankers are in reverse mode. but the u.s. central bank has talked about shifting into drive. now, as you look at the chart, a year-to-date chart there's a difference between ten years in bunds. you'll see the all-time difference, outside of a brief period in 1989 has been in the low 170s, 173, 1746789 open the chart up to 20 years, you'll see what i mean. this current little crop at the far right side of the chart are the extremes. why is this important? because if we blow the top off of this 174 area, what it means is that the market and investors, for whatever reason, truly believe that our central bank is going to be in a different gear than all the oth

our rick santelli.s rolling out a krcritic update to the highly criticized autopilot feature. elon musk says the system will be three times safer. what do actual owners think? our phil lebeau is in palo alto, california, with the latest. >> reporter: hard to know what tesla owners think about the software pushed earlier this morning. i've been told not to ex inspect it to come through for a couple of days on the vehicles. here are the changes in the software update. it improves the vision of the road. in other words, the vehicle will be able to see thanks to the onboard radar maybe two vehicles in front if there's sudden brakinging, it will navigate highway interchanges, and enhanced warnings to keep drivers engaged when they're in autopilot mode. we had a chance to see that yesterday and there are clearly greater enhancements visual as well as audio. this system was pushed out in a software update. this will be the safest on the road. those who have been critical will be watching very closely. >> it's

rick santelli in chicago.hen we come back, what do undecided voters want to hear from the candidates in tonight's debate? a strategist will tell us what participants in his focus group are saying. be sure to watch cnbc's coverage of the debate tonight 9:00 eastern time. the dow down 139 and the s&p back to 2150. my business was built with passion... but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet? [baby talk] [child giggling] child: look, ma. no hands. children: "i", "j", "k"... [bicycle bell rings] [indistinct chatter] [telephone rings] man: hello? [boing] [laughter] man: you may kiss the bride. [applause] woman: ahh. [indistinct conversation] announcer: a full life measured in seats starts with the right ones early on. ca

now let's send it to rick santelli with the santelli exchange. >> good morning, david.man, beeterman, beeterman, aloha. >> aloha to you guys, from new york. >> oh, you're in new york. sorry about that. i want to know what are you seeing on the major sectors, bond or fixed income inflows, what are you seeing on the equity side, charles? >> well, the fascinating thing and last month we saw massive outflows from equity mutual funds and not as big an inflow into etfs. so that means that people are taking money out of managed accounts and putting less back into the market via passive etfs, which really means like the same thing like the bond market, there's a hollowing out of capital available to buy when there is a downturn. remember that markets do go down at some point when the central banks stop levitating everything. and when that happens there's no buying power underneath. hedge funds have redemptions. equity mutual funds are losing money. whatever money's going in is going passive. >> all right, now, charles, having said that, and let's remove the biggest fundamental,

let's get to the cme group with rick santelli and the santelli exchange. and thank you. i'd like to welcome my special, always says it straight, yra harris. first of all, lowest level in what, six and a half years for ism, service, nonmanufacturing. you said you hit the buy button for twos. look like they hit the buy button for just about everything. >>> especially for the twos because the twos are being priced off the live board, which is being priced as the circle goes round and round, and priced off the reregs, so nobody knows -- >> so it obviously has fed implications, 78 at 74, and also close to 160, and tens were 155, so it's part the fed and part what says it about the economy, the new normal has a range, manipulate the top of the range is 2% economy, and maybe the bottom of the range is 1 1/2. >> the batdata points are so confusing. they're murky. we got the services number, which was weak. for everybody who didn't worry about the manufacturing number, we're a service economy. now what are we today? the fed has painted themselves -- and more importa

rick santelli with the santelli exchange. hi, rick. >> hi, and thank you, sarah.guest of the week, chris rupke, thanks for taking the time, sir. >> thank you. >> all right. let's set the table here. i look up at the dax, it's given up ground. looks like it's going to be closing at the lowest level since early august. s&ps are about seven points higher meaning they drop seven points from here they could be at the lowest levels since early july. while all that's going on, all of a sudden we're revisiting negative interest rates in europe, our rates are not as upward mobile as they were several sessions ago. and "the wall street journal" today, chris, front page, says bank of japan divided as economy sin sinks, of course talking about negative rates. >> right. >> what do you think? are the markets basically nowe lis itting the response, they always do, you're not giving us enough, draghi's not giving us enough, but see what we're doing to the equity markets because we want more? does that make sense to you? what do you think? >> yeah, i think so. the markets seem to

rick santelli has the santelli exchange. good morning, rick. >> good morning, sarah.e the whole theme. hear what she said? she basically said the celebration goes on. with stocks. >> yes, it does. >> it really does go on with stocks. >> yes, it is. >> first start with bank of japan. we'll get to our fed. >> sure. >> they want to steepen the curve. i respect that. >> yeah. >> i think it's a good thing. but when you nail the 10-year at zero, ira, that means the only way to steepen the curve is with negative rates. basically what they've done is they've gotten super glue now. negative rates are going to be with them for a while. you had a much better idea. >> oh, yeah, listen, i could do this in a heartbeat. if you want to do this, just, you know what, start, roll all the debt forward and issue two years -- >> like there's no tomorrow. >> two years and you'll steepen the curve. i promise you. because if you stop buying the 10-year -- stop buying totally, 10-year yields will go up and short end will go down. >> even if negative rates are still pervasive in that, there is

thank you. >>> now to the cme group, rick santelli, "the santelli exchange." hi, rick. >> hi, carl. things being written about the treasury markets, and indeed, there should be. i'm not sure if we're making a generational low. it seems like a safe bet, but do remember, you know, if you look at 2012, a whisker under 140, look at the recent low this year around $136, there's not a big path in between those two. so, arguably, you could argue that we've made a generational low a couple of years ago, but is it really important? it sounds great. i think it makes people look smart, and indeed, maybe you have to be smart to draw those types of conclusions, but that's not in my opinion what's the most important thing. and i think there's a good example. let's look to the oil market, okay? there was a close to $150 trade, and then there was a $26 trade. does any of that put money in your pocket? because the current range seems to be $40 to $50, and it seems to be pretty comfortable in that range. that's the money range. that's what you need to know, how many times you can buy it against the l

rick santelli has the santelli exchange. hi, rick. >> hi, thank you, mike.to welcome my guest representative and house judiciary committee chairman bob good lost thank you for taking the time this morning. >> good to be with you and your viewers. >> thank you. listen, being in the markets, after the credit crisis there have been billions, billions of dollars of fines collected in many cases, no wrong doing has been admitted. trying to follow the funds hans been complicated. many periodicals and websites have tried. you are sponsoring hr-5063 has a pretty forceful title it's called "stop settlement slush fund act." wow. that's pretty intense. why don't you tell us about hr-3hr hr-5063. >> as you noted a number of people and businesses that are sued, civilry or have criminal actions brought against them and settle for fines or payments, see that money not going to victims who are directly harmed by whatever action they may have taken, and not going into the u.s. treasury, as it's supposed to if it's not going to victims, instead it's going to left leaning orga

see you in a few minutes, thanks. >> check in with rick santelli and get the santelli exchange. ck? >> thanks, carl. ranges are very important. the market has a magnetic personality. just think about magnets, you played with magnets when you were younger, didn't you? north and north, south and south. of course, north and south attract. price structure is very similar. why do we look at so much of price structure? listen, there's two things that are important if you're a technician. one is price structure and it's always deemed the most important. and it should be. there are place markers for positions. that's why they are important. if you have a lot of place markers, a lot of chips at certain prices, when you move away or move towards them, that's critical. especially older price structure in markets that don't have big ranges. now, today's a key today. let's put up a chart. just the month of august for ten-year note yields. there is one session that traded outside of the 150s, and that was exactly one month ago today. the 26th of august when we settled in the low 160s. so, if y

for "the santelli exchange." rickarl. jim bianco my special guest today. off camera we're discussing just about everything that has to do with central banking. in the end, the reason we're talking about the bank of japan more than our fed is because it could have a huge impact on all the relationships between the central banks. so first of all, your notion of will the bank of japan succeed in controlling the markets to the extent they think they can? >> i don't think they can. two reasons. one, what they're doing, what we refer to as an operation twist. the federal reserve has tried this all the way back to the 1960s in various iterations. it's never worked. two, it's not supposed to work because free markets are not supposed to be under the thumb of some kind of overarching federal agency, whether the central bank or overarching governments. all is fungible. >> stop there. this is huge. when we say all stimulus or all central banking activity is fungible, what we're saying is that if the fed doesn't do anything but t

to the cm ex-group and rick santelli and kwet gete "the santelli exchange." hey, rick. >> hi, carl.an movies when the commissioner senses is there's a problem and he needs the batman, puts the sign up in the sky, the bat sign. look at these charts. let's look at charts starting early july for the dax. that's already making its move. it will be closing most likely at the lowest level since early august. look at the nikkei. it's not quite there, but it's not far. s&p here, fairly close, too, six, seven points, and we've dropped to levels we haven't seen since the beginning of july. those are the market's version of the bat signal. why? because i'm telling you, soft equity markets seem like they're working their magic again. of course it's right on cue. it probably started when mario dragge failed to deliver more even though he didn't say he was going to do less. even today's "wall street journal" points to the second guessing, rethinking of negative rates, but that is all will most likely disappear. chris ruppke, who knows as much about the japanese markets as any, was my guest today.

thank you so much, rick santelli. come back, a basketball hall of fame erica ream r karee abdul-jabbar out with a new book and join us live at post nine. meanwhile, dow up 78 points in advance of that fed decision just a few hours away. don't go away. ♪ ♪ ♪ experience the thrill of the lexus is f sport. because the ultimate expression of power, is control. this is the pursuit of perfection. >>> from colin kaepernick to donald trump, writing on the wall is kareem abdul-jabbar's new book discussing the growing unease over inequality in america today. joining us now is the author of that book as well as of course the nba's all-time leading scorer, kareem abdul-jabbar, nice to see you. >> nice to see you. >> thanks for coming down. why did you write the book, kareem? >> i'm really concerned about all the division that's taking root in america. i think that if we could get to a point where we can discuss these issues and try to figure out some solutions taking everybody's point of view into consideration, i think we could

. >>> first, rick santelli, what's on your mind today?well, as i watch rates hover at what are for the most part the highest yields on a closing basis since june for most maturities, i wonder what the fed thinks as they look at these rates, maybe more importantly, what does the fed think about how the market has become a sin no anyone for the state of the economy. all that after the break. upgrade your phone system and learn how you could save at vonage.com/business >>> on the half-time report today, the biggest bull on wall street says the s&p 500 will be at least 10% higher in just three months. he'll explain why he's so sure this is a great buying potential. >>> plus, a key fed governor speaks shortly. one of the last hints we'll get on whether we'll see a rate hike next week. >>> and the bond market flashing warning signs according to a top executive. his view of what's to come is today at noon only on the half-time report. carl, we're going to see you in about 20. >> sounds good, scott, thanks so much. let's get to the simi group in

thank you, rick santelli. and when we come back, talk about making an entrance.anix making its wall street debut today. check out the action, up about 85%. first on cnbc interview with the ceo is next. we're drowning in . where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. >> welcome back. one of the largest tech ipo's in 2016 opening for trading at the nasdaq today. take a look at that chart. the stock is up 86% at the moment. joining us now first on cnbc is founder and ceo of nutanix. welcome, and congratulations. >> pleasure. thank you. >> is this what you expected? >>. >> not really. i mean, obviously the end of the day we respect the fair market value all i want is a healthy stock. looking for the true health of the stock ichts, where it lands. >> after everything we've been through this year and last with all the valuation c

let's get to the cme group, rick santelli and "the santelli exchange." orning, rick. >> good morning and thank you, kayla. well, i got a lot of e-mails between about 1:00 a.m. eastern and 2:30/2:45 a.m. eastern. of course, the latter was the comments by the japanese regarding what they had done earlier in their monetary policy meeting. to me, the only way to kind of consider what's going on is to think that the fix is in in fixed income. they want to fix the ten-year. their jgb, japanese government bond, they're sovereign at zero to steepen their yield curve. so, let's ponder this. let's look at their two-year, because we look at 10s and 2s to be a reflection of the yield curve. looking at the two-year note over 20 years, we can see that even in the minus 20s, it has been more negative. if you close that chart up to year-to-date, you can see in were at some point minus 35 basis points. and today, actually, on the announcement, subsequently we did see that two-year note yield move less negative. now, this is key. this is key. because in order to steepen a

let's hop over to rick santelli and get the santelli exchange. >> thanks, carl. all or none. maybe it's a good order, but it's bad policy and bad politics. all or none. 100 or 0, all or none. those used to be orders in the pit. some electronic platforms let ewe used use them. all it means is, if you don't get all 100, you don't get any. that is used in politics. we hear it in the political season all the time. think about it, regs, this side doesn't want regs. or when it comes to terrorism. we don't want any terrorism. or, when it comes to immigrant, we don't want any immigrants! trade especially. we're going to tear up the trade deals now? the world should be afraid. those are strong arm arguments. it shouldn't be all or none, it should be finding the best one. you don't want more or don't want all of them, you don't want none. straw man should be knocked down, bad way to run a government. especially, especially when it comes to some of the big, big themes that i've just discussed. think about it, we need policy tune-ups. how often has nafta been tuned up? i'm not saying it

to rick santelli who has the numbers for us. rick?we saw a nice reversal in fakts orders up 1.9 for july, follows a slightly revised more negative minus 1.8. our final read on july for durable goods and remained at up 4.4 which isn't bad. ex-transportation take that out, of course, to get more solid read on what aircraft are doing, they're volatile, up 1.3. and that follows 1.5. but maybe the money ball is capital goods orders, nondefense, ex-aircraft, proxy for business, capital spending, and that number was up 1.5. 1.5 isn't bad when you consider this is, what, the eighth number that we've had in this series and we've had -- i'm sorry the seventh and we've had minus 3, negative three numbers, and this balances it out, putting four numbers in positive territory. it's always an important number to try to give us a better glimpse ahead. it's not a big positive, but it's positive nonetheless. top of the range for 10s hovering below 1.60 and the stoems are quite happy -- stock markets are happy today as the data on the spongy side probab

bond pits rick santelli at the cme group in chicago. take it away, rick. >> thanks, david.now, long end, 10s, toying with the top of the recent range. august is the range basically. two day of 10s maybe more appropriate the one week. yes, we are touching the top. bunds no different. they've sold all the way off to minus 4 basis points. but dollar index, one week of that chart has been more on the firm side. it looks like treasuries are actually catching up with the dollar which may have had it right and investors psyche and some of the fed speak last week. dollar/yen, this is fascinating. we have one session under 100. 18th of august. today could be the seventh session in a row the dollar is doing better. the last chart this is the pound versus the dollar from february to give it some distance. the double bottom is in place. still for the most part think the pound will be improving against the greenback. back to you. >> thank you very much. rick santelli. >>> a preview of tonight's cnbc documentary "ground zero rising" reported by jim cramer after this break. ♪ with this le

rick santelli, the one and only. that decision now out of the way.ion highs here with the s&p up by 10 points. counting down to janet yellen's news conference at the bottom of the hour. bill gross joins us next. hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. vern from voya? yep, vern from voya. why are you orange? that's a little weird. really? that's the weird part in this scenario? look, orange money represents the money you put away for retirement. save a little here and there, and over time, your money could multiply. see? ah, ok. so, why are you orange? funny. see how voya can help you get organized at voya.com. narrator:kubo: est place come on, this way.e... narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you. >>> we're under ten minutes away from fed chair janet yellen's news conference. we'll take you there live. and y

over to the bond pits, rick santelli at the cme group in chicago. orning, rick. >> good morning, sarah. well, the treasury complex is for the most part kind of holding steady with friday's closing yields. but remember, again, we're over 30 basis points off of very significant june and july levels, no matter if you look at our 10-year or the japanese 10-year. let's pick june, june 1st, 2-year note yield look at the left side compared to the way the right side is trading. there's a lot of similarities. next one is the 10s. you can see 30s more behaved, yields haven't popped quite as much. yield curve implications. bunds have had a good run indeed as they hover now three, four basis points in positive territory. the 10s the historic low of 1.35 earlier so 68, over 30 basis points there. look at jgbs since june, february i believe the low yield was close to minus 30, 29ish, now they're trading, what, basically right around zero or a little bit better. so you could clearly see that 30 basis points, 33 basis points are rather large moves. and the euro vers

over to rick santelli. good morning, rick. >> good morning, carl.etting our final read on wholesale inventories for july. our mid-read was unchanged. guess what? our final read is also unchanged. when it comes to wholesale trade for the month of july we're looking for a number slightly positive. we ended up with a number slightly negative. down 0.4 and last month we lost a couple tents from originally 1.9 to 1.7 and that 0.4 actually is the second worst trade number of the year outside of january which was down 1.9. we are breaking out of ranges in all sovereigns, pay close attention, especially if europe. carl, back to you no thank you for that. rick santelli. it's been a busy morning in terms of fed speak. to steve liesman sitting down in washington with a special guest, good morning steve. >> good morning, carl. thanks very much. i'm here with federal reserve governor dan tarullo. thanks for joining us. >> good to be with you, steve. >> unfortunately, with your brief, i'm going to displease half the audience wherever i start but i am going to sta

and send it over to rick santelli who has the santelli exchange for us this morning. it away, rick. >> good. thank you. and andy brenner, welcome. thanks for taking the time. >> rick, always a pleasure. glad to see you, buddy. >> all right. now, as janet yellen talks and of course always on the optimistic side of the job scene, but jobs without productivity and growth really is kind of a dead end in certain ways. your thoughts on anything she's saying before i get into the meat of this? >> rick, all i got to say is if the economy's doing just okay, which i think it is, there's no reason for us to be at the rates we are. i mean, the fed lowered rates in 2008 to zero and it made sense at the time. but you've seen s&p triple, unemployment rates cut in half, we shouldn't be here. we should be at higher rates right now. it would be better for the economy. >> all right. now, let's talk about it. today, a german 2-year note auction garnered 90 basis points, not too far from where the old guy was trading and is trading. an andy, would you buy at an auction if you had the chan

rick santelli at the cme in chicago. hey, rick. >> hi, carl.ou know, when counterintuitive moves reign supreme, it's very confusing to investors, and it ought to be. it's because policy is hard to control when you're trying to control outcomes. i'll give you an example. when we look up at the board, we see yields have moved rather dramatically. this is to the upside at a time where certain central banks have pushed rates negative to keep rates low, played with currencies to keep rates low. but the dollar versus the yen we see it didn't work out well as they had negative rates, their currency was going up. so is it with the long end especially. if you look at the short end first though, everything comparing back to brexit, look at two-year note rates. now, we're not at the highs but we're hovering at the high zone. here's where it gets interesting. let's look at the u.s. 10 and look at all these maturities under the context of off their most recent extreme low how much have they moved higher? for the u.s. it's about 35 basis points from around t

thank you so much, rick santelli.we come back, a lot more on today's news surrounding twitter. once again, a tweet from a salesforce executive saying why twitter, personal learning network, best realtime context rich news, democratized intelligence, great place to promote others. salesforce the worst performer on the s&p and dow down 49. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. to growing businesses cdw broacross the city,tration increasing productivity like never before, which is amazing, unless you're a barista. cdw implemented dell poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. so nobody wants coffee?! hey, can i get a couple copies? enhanced mobility by dell. i.t. orchestration by cdw. now that fedex has helped us we could focus on bigger issues, like our pass

meanwhile let's get out to chicago cme group and rick santelli with the santellie change. >> thanks johnwe had an ecb meeting and i don't see huge moves and there really wasn't anything new but do we need anything new to have a very indepth discussion just on policy in general? the new issue lately are corporate securities with regard to the european central bank they already beat everybody to that punch plus more. not only is it about corporates but about potentially moving into other things like equities and when it comes to the u.s. there's been hint abts the former, maybe a little aprehengs about the latter but in the end, what is value. there was a time when value represented something that a set of rules were quantity fly ball. if you wanted to predict value for security and you look at the company. you encourage, you know, whether the rate of return was worth the risk that something bad would happen at the company bringing the price of that security down but ultimately the real real des should that occur, would the corporation be so impacted they would go out of business or would

art, jeff, and our rick santelli. monday is the first presidential debate. today i sat down with bruce berkowitz to discuss his investments and get his take on the presidential race. >> come november, are you voting for donald trump? >> why'd you ask me this. i'm going to be in such trouble with so many of my friends. so here's how i'm looking at it. and i can't believe i'm telling you this. i'm not looking at the candidates, okay? i'm looking a to the people that will be doing the major work for the candidates. so i'm taking away the pertinents of the presidents and treating them as the chairwomanpeople for the pr. but i'm looking at the people who do the hard work. reforming financial systems, welfare benefits. and when i make that comparison, between who's goung to be working thon side and who's going to be working on that side for the president, right now i'm picking the people that donald trump is picking to do the heavy lifting for the country. and that's -- and i'm -- you know, that can change. but i want to see who's going to be in charge of the trea

glen mead, kenny polcari and rick santelli from chicago. kenny, you sensed a move to the downside. what do you think? one-day wonder or beginning of a trend? >> i'm not so sure the beginning of a trend but the market exhausted. trying and trying. it needed something, a reason to kind of have some profit taking. rosengren typically a dove. went to the hawkish side and gave it what it needed. then you start pulling in every piece of commentary that anyone makes about why rates no ed to go up and then you have this market. look. we are down 2% today. not necessarily very pleasant but only 2% off the all-time highs and not start, you know, nailing the kofb shut yet. down 5%, 8%, that's a different conversation. i think more of a daily wonder right now. i think next week -- i don't think they raise rates in september and then stabilizes and moves higher and december is earliest bet. i don't see how they do it in front of the election. >> jason, what do you think about rates globally here? >> you know, i think this is -- this situation with the fed, this is a little bit of noise we are g

rick santelli tracking the action at the cme. ck. >> well, there's a bit of a storm in the marketplace post-ism. anybody who isn't watching, service sector dropped to the lowest level since february of 2010. if we look at how the markets responded, it was swift and it was global. if you look at twos, they were at 78. they dropped five basis points. 10s were at 159. they dropped five basis points. bunds at minus 8, they dropped three basis points. and dollar index maybe the best weather vane to keep it simple, dropped three quarters of a cent. what does this mean on the long end? probably means more of a growth indicator, short end more policy central bank indicator. when you put it all together it's a glide path indicator as now many recall for recession. i think that's a little extreme, butted market did move extremely aggressively after that weak number. melissa lee, back to you. >> thank you, rick santelli. interesting news out in the auto world. you think that people with top credit scores in the market for a new car would ind

now to the bond market, rick santelli is tracking the action from the cme. ck. >> if the word moderate meant b-plus or a-minus, maybe that would mean something, but it was kind of lost on the marketplace. moderate isn't good, and we're less than moderate as of some of the most current data points. and when it comes to wage pressures, traders have talked about this issue along with hours worked, but it doesn't seem to be pushing the envelope. it doesn't seem to be giving the fed kind of that breakout feeling. so when you look at the marketplace, the dollar index hardly moved. it's up about a fifth of a cent today, but it's really been getting drilled as of late especially the last couple sessions. as you look at the multiday charts on the short end twos and the longer end tens, they are basically -- they aren't basically, they are unchanged after big drops yesterday. doesn't look like the beige book is changing anybody's mind with regard to strategy to the upcoming fed meeting. back to you. >> all right. rick santelli, thank you. and back to kayla tausche at t

rick santelli tracking all the action at the cme. rick. >> i tell you it's one of these days where it's pretty easy to see coming. after all the central bank meetings are done, seems like revisiting ranges of august. we're heading back up towards that 2190 in the s&p. look at 10-year. 10-year yields are down. they're about ready to get back in the august range which was already in the 1.50s. but it isn't only that, it's the whole risk-on trade. look at september 1st to a chart like the hyg or lqd, they look an awful lot like the s&p 500. they are also getting back towards the toppy action that we had in august. it's totally risk off. when you look at the dollar index today on a september 1st chart, it isn't horrible. but it is getting to the lower part of that range. and you really want to pay close attention to we breach 94.5. and the yield curve, 2s haven't moved much. there is something to be said for the fed's microphone. makes the short end a bit paralyzed. so while all the action is on the long end, look for it to continue. reme

rick santelli has found his way to the microphones. let's check in with him for a bond report. hi, rick. >> hi. well, tyler, we had had two options, we had a three year auction and nine year, 11 month auction, fancy for ten year auction, adding to because the first issuance was last month or adding to reopening this month. we'll start off with the three. 24 billion of those, one issue market was trading around 95.95, that is. at the auction, .947. darn close. lower yield, higher price, that's one of the bright spots. 277 on bid to cover close, but below 10 auction average, 58.8 indirects is the only metric above average. 4.7 on directs is really weak, weakist since december of '09. c minus on that one. now to the ten-year, nine year, 11 month, 20 billion in terms of the size of the auction. yield at auction, a whisker under 170, 1.699. looked like 168 1/2 for trading. a little bit of a bad mark there on pricing. 2.35 bid to cover, less than ten auction average. like last auction, the three year, i mean, 62.1 close on the indirects. the weakness here, just slight, three year note

thank you very much, rick santelli. let's get to capitol hill.n stumpf is preparing to testify from the senate banking committee. wi willfred? >> i had time to catch up with him in the corridor. he seemed calm and collected. calm enough, jim, to send his best regards to you. this is a very important hearing for him and his company due to start in about ten minutes. his opening marks are expected to increase the level of apology he's made thus far and then of course face tough questions from the banking committee. we'll have all of that live when "squawk on the street" returns. >> all right. thank you. we'll have stop trading with jim after this. what i love most about tempur-pedic mattresses is that they contour to your body. it keeps us comfortable and asleep at night. (vo) soft, firm, or hybrid... our three collections pair up to create the perfect bed for two. there's more than one tempur-pedic. just like that, a moment turns romantic. so why pause to take a pill? and when you're having fun why stop to find a bathroom? with cialis for daily us

rick santelli. >>> bob pitman has one of the longest and most glittering ceo resumes around, co-found irofer mtv, time warner enterprises and one of the most powerful guys in music, head of iheart media, a streaming and live entertainment service with over a quarter of a billion followers. just announced a new plan to take on the likes of pandora and spotify. and bob joins us from las vegas where the iheart music festival kicks off today. it is a big event. we'll talk about it in a minute. welcome. you've got some of the biggest headliners in music lined up for the weekend event. let me get, however, to the new services that you're rolling out. iheart radio plus and iheart radio all access. i've read the press release. you're going to have to explain to me what the heck it does. i don't get it. what can i do with this new service that is new and easy to use? >> if you look at iheart radio today, you got all the radio stations and you can make custom stations. but iheart plus or all access, what you can do is take that on demand experience and move it to the radio experience. so if you

now to the bond market, rick santelli knows a little about rising interest rates tracking the action at the cme. hi, rick. >> hi, tyler. indeed we can debate what central banks are going to do, not do, what they should have done, but in the end the market is voicing a bit of an opinion here. especially with the catalyst of mario draghi yesterday. stimulus and low interest rates, we're all tied at the hip with all central banks. so did mario draghi give us a glimpse into his future, or did he give us a glimpse into what he thinks the fed's future, what their rise in rates? i can't tell you that but look at a two-day of twos, two-day of tens, a week ago we settled 1.60 on the tens. more importantly start out in early june, we have broken through a range. we have been putting weights on a spring with regard to much of the sovereign market now for the last six weeks. now the spring is about to pop. and keep in mind there's margin calls going on here that may have started in europe. so as you look at six-month charts of the bunds, gilts and what you want to understand is they've added ping

. >> to the bond market, rick santelli. join in here, buddy. >> well, i'll tell you, if you look at the markets, it is fascinating. one day of two year, you can clearly see the hotter inflation on cpi ten months of core, 2% or higher. took a toll. one week charge shows two years aren't near the highs of the week. matter of fact, a lateral week for them basically unchanged f you look at one day of tens, though, they had the same bounce in yields on the hotter than expected data, but a one week chart clearly also shows they're not near the highs of the week. however, we are up two basis points on the week on tens. this doesn't sound like a market that necessarily is looking for near term fed activity, but it is looking for potentially ongoing activity by central banks, but maybe just not solving the problem. if we look at fed funds for december, forget percentages, keep something simple in mind. when the chart price goes up, there is less of a chance of tightening, goes down, more of a chance. so, yes, we're going down a littl

rick santelli is with the santelli exchange. hello, rick. >> good morning and thank you, mike.ld like to welcome my ecb day guest, jim. your thoughts on mario draghi, what he read, what we all read in the transcripts and the press conference? >> i think the market's takeaway is a little negative and disappointed. there's, obviously, a problem that draghi wants to continue to do qe at 80 billion euro a month through march of in exyear except he's running out of issues to buy and might be hitting physical limitations and he didn't address it and said in the press conference they didn't bring it up in their meeting as well. the market was expecting a little bit more. >> many people i talk to, they're trading the european markets, said, hey, this is pretty good. they're running out of runway, the programs are basically run their course, and i think that they think that's a good thing. i look at it exactly the opposite. because if ecb and all central planners aren't going to give up the reigns of the galloping horse and they run out of crazy things, doesn't that mean they're going t

ste and rick santelli joins us from chicago. what is this rally about today? >> you know, the standard and poorz 500 level is significant. we have seen staunch support there coming into today. you see how quickly it was gained. it so we are hitting -- the level here is 21 at the same time you have some of these waves from what is happening with deutsche bank and germany if you said why is the yield low again would you argue is go back to -- >> one would expect. even though the yield is lower the differential or the spread between our yields and yields were spending. and that tells me there is inurgea to the dynamics. on a much bigger scale. what the ecb is doing, what mario drawima i can't do this on my own, we are running out of run way here. the notion that these negative rates are going to help deutsche bank or help any of the european banks is very critical and i'm sure it was a driver to push yields within three basis points of their lowest closing rate ever. we should have been lower. we really want to pay attention here because if the bank of japan stay

joining us keith bliss is on the floor here and rick santelli from chicago. yesterday we had a rally because opec may have a deal. today sell off with talk about deutsche bank. very reactionary market. >> very typical for a market that is directionalest. it is getting buffeted from all angles with different view points and talking points. i think the big story is deutsche bank and the financial sector. i think a lot of people are missing the picture here as it relates to deutsche bank. this is not ordinary hedgefund activity. there is hedgefund run going on. as you were pointing out the eu is disallowing any kind of bailout so shareholders will head for the hills and will not be taken down. deutsche bank is not systemically important inside the european market but across the globe. this is a big issue when it comes to the financial sector. as it relates to the broader market when you are getting buffetted and have a crazy presidential election and monetary policy and 15 fed presidents, governors and others having speeches. one piece of bad news. >> right now

eastern m fim -- keith fitzgerald of mondaymorning.com is with us, and rick santelli checks in from the cme in chicago. steve, what do you make of the pop in oil, the impact it had on the oil stocks and then the overall market right here? >> oil and the whole oil patch has been torqued to go higher. if you look at where oil is now, bill, still struggling to get back above $50 a barrel, that's still extremely bearish. if you look at what opec says, even if it's a non-official opec, what does that mean to the overlay? what does that mean to the environment? you can't take it for face value anymore. they always disappoint. it doesn't matter. you don't need production limits, you need production cuts, drastic cuts to be bullish oil. if oil is not going to be bullish, the market is not going to be bullish. oil should be bullish on global growth. there is no global growth. our gdp is lacking and ever shrinking. that's why i'm still bullish. >> keith fitzgerald, it's interesting to look at this potential seating of 300 million barrels. again, what would you see as the significance of these ann

next to him is peter costa of empire executions and rick santelli, a rare monday appearance for rick joining us from chicago. don't think i don't notice. everybody is thinking about the debate tonight. is there anything in the market that is anticipating it or debate to have an impact on markets tomorrow? >> i think the debate will have an impact tomorrow. i think today is more about deutsche bank and is there going to be a problem, a larger problem in europe, a systemic problem in europe going forward after this decision? i think tomorrow we'll see that. maybe a little bit of this market is a little bit about the uncertainty. i think it is more about the financials. they are very heavily waited in the s&p and dow. i think that is where the pressure is or most of the pressure. >> steve, what happens if deutsche has to raise more capital? >> i think it is obviously a significant issue. what we are seeing happening in the european banks, the capital raise up and that will add to uncertainty. what the federal reserve set up in terms of high probability of december rate hike to my mind i

rick santelli tracking the action at the cme. rick. >> hi. in order to, in my opinion, understand what's going on in the markets, you need to understand the expression that all stimulus, all central bank policy is fungible. so if europe's going more easy, that makes a difference in the spread between us and europe. well, we didn't get any more claws. many think mario draghi has not only run out of runway, he's on grass. so everything's moving up that would have moved down, like yield. so if you look at a two-year here, it's up. if you look at the curve in the ya eurozone, twos were up -- fives were up five basis points. and the ten-year was up six. if you look at our ten-year, you can see yields have moved higher. there's your bund, up about six basis points. it makes sense. if we're closer to potentially normalizing, at least talking about it, it would make sense. that the opposite of more central bank policy should show up in the market. and indeed, it is. when it comes to foreign exchange, that's the one that's a little weird. if you look

rick with the santelli exchange. hi rick. >> hi kelly.re all paying very close attention to this morning's number and that's an oddity that is normal. we have been paying attention to nonpharm and gdp productive numbers. it's taken on added importance because of jobs and how one of the pillars so well intersect. today's number you can call it what you want. it's better than the lowest number of the year which is in the 20s. >> now many said look at the yield curve. well 80 base points in a two year. 160 in a ten year and 15el in front of the number. two basis points for each. i don't know that i walk away more educated on that but one thing is for sure. how many people have you heard reference the idea that the fed is a-political and make them touch each other there. disinterested? not interested. not driven by politics. i cry foul. don't believe t it. don't believe it for a second and i'll tell you why. let's be logical and really try to be objective here does anybody remember how the baton hand off went after the credit crisis for the 2

rick santelli tracking the action at the cme. it's been so interesting this week. >> oh, it has.as and there was a lot of clues today. even though aren't really the markets they used to be, when you ghet number, you knee jerk reactions that enlighten. what happens? the short end gives up ground. that makes sense a weak retail sales number put that goal f farther away. but also have pushed rates down on the long end, which isn't the case. mario draghi helped incite the long end, but today was no exception. you saw tens an 30s moving higher in yield. short end not moving higher in yield. just a diss to the fed. they have lost sponsorship of the long end of the market. what did you think of elizabeth warren? >> you didn't hear me, rick? >> i did, but didn't know if you could say it louder. i had some observations. regulation, i'm italian. regulation is a lot like all the special spices i put in any italian sauce. if you put in too many, it doesn't kasey good. not enough, it's not good. unfortunately, i think mrs. warren, senator warren truly believes that more is always better. >> s

rick santelli tracking the action at the cme. ct bidders were absent here, rick. >> yes, they were. but they have been more largely absent just three auctions agone. but we had 33 billion five year notes hitting the market not many minutes ago. 1.129. so 1129. the pricing was a business messy. i saw 112 1/2, 239, close to ten auction average. as melissa lee just referred to, the direct bidders 4.4, about half the ten auction average. but as you look back in time, we had 3.7 in june, so i gave it a c minus, charlie minus, like yesterday, all that is left is seven-year notes and everybody should continue to monitor the big move in boons toward the negative yield side. >> one debate down, two to go. the next one less than two weeks away. what do they need to do to deliver? inside both campaigns next. the one thing you can do on social media that will make airlines listen to your complaint. we want to hear that. that's still ahead. back in two. [loud techno music playing] announcer: if you drive buzzed, it could cost you around $10,00

. >>> we have john down here over at post nine and our own rick santelli. jonathan, there is a couple of ways to look at this, right? it looks like everything is coming up roses but is this because there is this sense that the federal reserve is stepping back here to let it rip. >> it is the same sentiment felt. the concept of raising interest rates in 2016 is not completely off the table. they have dangled language in front of us. i think that kept people complacent and the market complacent for a very short time. we are looking forward to december as to what is going to happen. it seems the fed a year ago said let's raise rates now and address again in a year. we have december '16 on the calendar. the market is back into the range that we saw for six weeks during the summer time. 2,150. i think we will stay here for a little bit. the only catalyst i see coming could be the debate on monday. i think we have all been waiting for that to come into play. we have seen different poll numbers and jockeying of position there. maybe there might be something out of

let's get to rick santelli. how did it go, rick?n't a very notable auction in any regard other than average weakness. i gave it a c minus. charlie minus is the grade. 26 billion two year notes hit the streets moments ago. the yield at auction, .75. 3/4 of 1%. if you look at the metrics, 2.65 bid to cover, pretty light. the only metric that was remotely above its ten auction average and not by much was direct bidder at 19% versus 18% ten auction average. dealers take a rather large 44.4% primary dealers of the auction. so c minus tomorrow fives followed by sevens, an important auction, but longer maturity, the more important. back to you. >> rick, thank you very much. stocks are jittery ahead of tonight's debate. the dow down triple digits, let's bring in julian emanuel and jonathan gollof. great to have you here. let me start by asking, is there anything tonight on the debate that could really destabilize the market? i can't think of two candidates we know better than these two. we're familiar with them. >> well, so our expectation

so is steven sarge and rick santelli checks in with chicago as well. sarge, we had the beige book, apply named beige book. what did we learn, if anything? >> how frustrating is the federal reserve bank. really. john williams, which he has been doing lately, and she is no joe namath but i like her. she thinks the economy is at full employment. >> 4.9%. >> you know what is not growing modestly or moderately? gdp, wage growth, auto sales, worker productivity, ism manufacturing and ism nonmanufacturing. >> isn't this the way it is going to be a for a while? >> what it means is that they are unable to raise interest rates like jawboning at this meeting in september. can you imagine the perception in the perception if we went into a recession? we never have gotten that far away from recession. if we went into recession after raising rates, you think they lost credibility at this point, could you imagine it that point. >> let's talk about areas you like including mid cap value space. pretty specific. but what are your ideas for this environment? >> i think th

steven from stewart franklin and look it's rick santelli. is it simple to say friday was a selloff and today it is a rally? is that what is going on here? >> it is kind of remarkable that i find myself agreeing with brander at this point because i'm normally quite hawkish. you have to ask if the fed had normalized interest rates when they had the golden opportunity 2013-2014, not now when growth is slowing would they be talking about easing rights or raising rates? let's say the fed's rate was 2.5% they would be talking about cutting interest rates. >> how as a long-term investor do you read these comments and major moves we are seeing breaking out of the summer lull of volatility based on some fed comments around september, december. how do you tune it all out? >> i don't read the comments. we have been in a market regime for about the last seven years. u.s. stocks and bonds beating everything else. now we have the market environment where foreign stocks have been doing much better. you have brazil up 70%. russia up a great deal. most impor