let's get to rick santelli and get the santelli exchange. hey, rick. >> thanks, carl., the news of north korea headlines and what's going on back and forth between the u.s. and specifically the president and how it's impacting the market is going to be an ongoing topic for the rest of the day, i'm sure, and far longer than that, but we are slipping a bit in yields as the safety of treasuries comes through. the dollar index hasn't changed too much it's up more than a third of a cent dollar index always seems to be a delayed kind of safety vehicle if you're looking for a quick eye catch of exactly if the markets are paying attention to that end, september 24th yesterday and today, how the markets responded to the german elections is really a far cry from november 8th elections and what happened on november 8th on the close on the 9th with respect to u.s. markets. you could see it here in these charts the dow, the dax, pbit of a different picture. the foreign exchange, i had john on and today asked him specifically if the weakness on the euro, and you're looking at the ch

rick santelli has the santelli exchange rick >> thanks, jon fortt you know, everybody, of course, isto the activities at the fed, the geopolitical issues of the day, specifically north korea, context of executive orders, but i will tell you this if you look at market and you need to trade markets through thick and thin we had our highest yield close yesterday. 228 going all the way back to i believe the very last day of july at 2.29 so there's time. maybe we'll take it out and you also notice that the rates have a propepsity to nsity to be on side up like it's been trading all week having said that, key areas are always define by important activities, like central bank meetings, so what i'm saying is pretty much every technician i deal with on this trading floor and those i deal with outside the floor are looking at 2.27 as a pivot in the ten-year notes, so really on a friday where you have north korea in everybody's minds as a flight-to-safety issue, and we can see proof of that, it becomes a game of strategy versus safety and this isn't an easy one as a matter of fact, what i would

thanks so mump, rick santelli.back stock rally pause as they await the fed on interest rate plans. we'll talk more about that when "squawk alley" comes back in a minute not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. live-streat the airport.e sport binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv on every screen is awesome. the xfinity stream app. all your tv at home. the most on demand your entire dvr. top networks. and live sports on the go. included with xfinity tv. xfinity, the future of awesome. federal regulators putting social media under the microscopes, specifically

nice breakdown thank you for that rick santelli.let's look at the commodity desk >> we're seeing that 50 mark as intere because there's dollar low when you meanti vince yesterday more color that it was balanced by the draw on gasoli total petroleum stocks saw a petrol demand rose that's a good sign heading in to typica sluggish season post-s spike still u.s. production over 9.5 that's a little concerning just shieft peak of 6.9 million big slide. takeaw here things are they could offset the rebalance again. >> coming up the bank stocks august we'll get a take on what an "squawk on the str will be i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim, we help investors see the implications of long-term mega trends, like the prime-time of urban expansion, pin-pointing opportunities to capture alpha

let's get to rick santelli and get santoli exchange rick. >> thanks, carl.'m really excited about next wednesday as a matter of fact, i have vacation time coming i'm cutting my vacation short to be here one week from today. it's a big day i'm not exactly sure how everything is going to turn out, and i'm not exactly sure we're going to get information today by janet yellen & company that gives us things we can write down, prepare for with regard to the balance sheet, is it going to be the time line hinted at, quantities of selling off the balance sheet or at least in terms of some of the small liquidation, are the numbers going to hold up one thing i can say for sure, look at the following chart. this is simple we're going to keep it simple. a 20-year chart of s&p 500 versus ten-year note yields. something interesting happened post crisis. right around summer, fall of 2011 you see it two-thirds to the right of that chart where everything went opposite, everything went indirect relationship, the correlation broke down all the money that the central banks creat

an actual win, beat a real time, rick santelli. >> well, let's see how they look next week.time, rick santelli. >> well, let's see how they look next week. time, rick santelli. >> well, let's see how they look next week. one week, ey, we actually are now trading a lower yields than the expanded yield on wefts fed last week. that is key. dollar index same thing. dollar index popped pretty good. now it is above the fed activity that you see on that five day chart. euro versus the dollar, lower than some of its recent trade and definitely could be the lowest price close for the month depending on how the final hour goes and finally, gold. everybody is talking about gold. one week chart shows that even though it made a difference in north korea, not a very large one. listen, there are big call, small calls. don't touch that dial. gsre coming up fr whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest... ...prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices... ...from o

carl >> let's get to sme in the meantime, rick santelli and the santelli exchange. >> thanks, carl.n central banks took on the heavy burden of trying to shield the economy and their specific areas of the globe from the crisis, they stepped out and did things that may not do again, may not be able to do again, and they are tools that janet yellen, and i'm kind of reading between the lines, may not want them to use again. things like quantitative easing. does that mean they won't? i can't say. but one thing i can tell you, when all this was going on, there were big conversations about this distortion is going to make trying to figure out the next move in the market much more difficult and from a fundamental standpoint, i completely still agree with that premise, but i think i was wrong, along with many, in so far as how it would affect technicals, because when you really think it through, technicals are called voodoo by many, yet it's a record of transactions, and it's important. because if you get in in a certain place and out at a certain place, there's something about that that doe

seench >> see you then, thanks, scott rick santelli with the tenure back above 212 rick >> absolutely. as a matter of fact, we now see that yields on three-year notes are up one basis point tens have moved from 211 to 212. long end 30-year bonds move from 272 to 273 why am i making such a big deal? well, for several reasons. first reason, basically yields popped up before the openings here and they've stayed. they've hardly moved at all. now they are creeping up higher. and what's fascinating here and i want you to look at several charts while i'm talking, today is today is a three-year note auction, 24 billion. tomorrow 20 billion and wednesday 20 billion and cumulative 56 billion in coupon supply as you look at a chart starting in november for three-year note yields, something interesting. if you'll in the, yes, everything has been moving lower, but the short end, three specifically did not make a new low yield close for the yore that's still the established 135 from i believe it is the 18th of april of this year now, as you look at 10s and look at 30s, what you'll notice is, of cou

sara, back to you. >> all right, rick santelli, thank you. >>> for more on the massive sports briberynfolding this morning we'll go down to contessa brewer, who's made her way outside the u.s. attorney's office in new york expecting that announcement at noon contessa >> yeah, i'm heading in just after this, but this federal complaint we've just read through details a complicated scheme involving coaches at some of the nation's best known universities, student athletes, agents, financial advisers, and adidas, among the murky twists and turns here, prosecutors say adidas executives arranged bribes to get star high school players into the top school that it sponsors, university of louisville adidas has a sponsorship contract over ten years worth $160 million an executive, jim gatto, director for sports marketing for basketball is accused of arranging $100,000 to a star high school player's family to get him to louisville. another named conspirator says that's the way things happen, how you get them into particular schools. he's also quoted as saying the payment is on the books but not wh

your 401k plan. >>> an interesting dynamic, stronger dollar, higher treasury yields let's go to rick santelliod morning, rick. >> good morning. we have a real character and real expert all rolled into one, writes news letters, broker, dealer, worked in the private sector, every sector it's a pleasure. >> it's always good to be with you. >> let's get to the crux of the matter we saw the german election, not a lot of market movement i'll go on the record saying could be top of the euro for forces to get the right coalition. >> he's probably out. >> he's out. >> that's going to give draghi room here you get macron saying we need to pull the euros together, get a common bond. what he's really talking about is let's take all the debt from everybody and shove it onto the balance sheet of european central bank and wipe it out it. >> he's off camera jumping up and down and agreeing. is there any way to make negative securities disappear? >> that means u.s. will do it. >> let's get to the u.s. >> we get to the next recession, and there's always another recession. i'm not calling for one right now, i'm

but first, rick santelli, what are you watching today never mind we'll talk to rick hopefully, he's watchingis treasury yield bounce, along with the u.s. dollar 'lbeig b im. wel rhtack. not rebalancing your portfolio. pursuing your passion, not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. can we at least analyze can we push the offer online? legacy technology can handcuff any company. but "yes" is here. the new app will go live monday? yeah. with hewlett-packard enterprise, we're transforming the way we work. with the right mix of hybrid it, everything computes. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. >>> dow's up 65 points treasury yields are higher, so is the dollar. let's get to rick with the santelli exchange. >> indeed they

more back and forth on that let's get to the cme group rick santelli in chicago with the santelli exchangeo welcome my guest, charles mellard. welcome, charles >> glad to be here, rick >> listen, we're in an interesting time in the country. we're trying to do tax reform and there's a lot of detail here we want to hear the cbo, many on both sides of the aisle want detail how it will look five, ten years down the road but it looks like an exercise in futility if you learn a lesson from minnesota went through. they changed some rules regarding pension liabilities. tell us, charles >> the government accounting standard and gasby said you could use your expected rate of return to value your liabilities. so almost nobody would actually want to value their liabilities today at 7.5% but most public plans have been at somewhere around 7.5%. for a corporation rates go up, go down, liabilities go up and go down because the interest rate they use changes. so gasby said we can't do that 7.5% is too high so they made it lower. suddenly what looked like, let's say, a trillion of under-funded which is an

rick santelli with the santelli exchange rick >> good morning, and thank you, sarah.k at second quarter gdp this week, and i think what's very interesting is if we look at atlanta gdp now, it's 2.2. so let's just look at the layout of the 2017 thus far the first quarter was 1.2. i will assume the 3.0 that we saw our second look for second quarter gdp, which we're going to see for the last time this week will remain at 3%, and i'll plug in the 2.2. tell you what, you're going to need a spectacular, i mean a spectacular fourth quarter to get into that 3% camp. when was last year we had 3% 2005 q1 was 4.3, q2 was 2.1, q3 was 3.4. so we barely made it it was 3.025 in terms of taking those four quarters, which each one is an annualized clip, putting them together and coming out with an actual year that matched up to 3% i know there's a lot of ways to look at gdp. this is the way i'm looking at it the reason i think it's important is, because i think there's a lot of lessons that we can be learning from the markets. when i looked at today's consumer confidence, university o

the best or nothing. >>> let's get to the cme in chicago, check in with rick and the santelli exchangenk you, carl. you know, once again, a great guest for the times that we're going through right now, all tough do is look at treasuries and see that north korea and the issues there having an impact and like to welcome a special guest, william reince. bill, thank you for taking the time, sir. >> thanks. glad to be here. >> okay. executive order with regard to north korea, of course, china gets pulled into this. although not specifically. anybody who has certain activities that in any way facilitates certain issues in north korea drawn in first tell me your feelings about this executive order and then maybe we can get more into the trade aspects. >> well, like all these, it is hard to make it work the big issue is with financial sanctions because you're right it is not just china it is any rogue bank anywhere. that wants to continue to help north koreans finance their trade and other activities you know, obama and bush made that work, made the sanctions work on iran but it took a lot of

and get the santelli exchange. rickarl i'd like to welcome former ecb president john-claude trichet. thank you for showing up, i know you had travel issues and we have a time delay. angela merkel, of course, looks to be have won a fourth term i was wondering if you would give us your thoughts, being you're on the french side, the second largest economy, what you think of that victory under the context of the last victory, strong euro, monetary policy changes ahead, and the whole notion maybe better shared growth among some of the member states versus germany in the future >> well, first of all, it's a pleasure to be with you, rick. on the election in germany, i would say first it is a victory. we should not forget that. even if the parties of government are losing a lot of ground, and that's obvious it's also obvious for the spd, so we have the shift that we have observed in many other countries, that being at the helm of the country today is certainly difficult and there is some kind of, again, punishment by the people

rick santelli here live on the cme floor.ast number of the week in the quarter university of michigan september final read 95.1. it's a little less than we were looking for. the 95.3 we followed gets tossed. 95.1 stands and equals what we saw in june but to find a lower number than that you have to go back to november when it was 93.8. do keep in mind january kicked off post election 2017 at 98.5 which was the best read since january of '04. that really strong chicago pmi i brought out pushed the dollar index in positive territory. pay close attention to the close. carl back to you. >> a lot of data in the last half hour. good friday morning. welcome back to "squawk on the street." markets got early record highs on the day the russell and transports settling back on a very heavy day. >> that is where our road map for the hour begins. record rally rolling on as we wrap up the third quarter. we will break down what is in store for q 4. >> twitter on the hill. top ranked senator calling it inadequate. >> president trump continue

see you then now out to the cme group, rick santelli with the santelli exchange in chicago. rick >> thank you, sara i'd like to welcome bob, my health care expert bob, it's always great to have you as i talked about in the tease, we have senators graham, cassidy, heller, johnson, and santorum now you can add to that list bernie sanders and why bernie? because none of the above, obviously, have any faith in the current direction in obamacare, all have plans, the first five have a plan presented yesterday, bernie sanders a little different plan why don't you tell us your thoughts on both plans and can we actually see walking dead with respect to legislation to repeal and/or replace? maybe not necessarily in the same calendar month, obamacare >> well, the chances of any action on health care, any big action on health care, are about zero, rick, either on the side of the republicans, the senators you've just mentioned, or bernie sanders and a number of other democratic senators, who yesterday said they are supporting a single payer canadian style plan. what's ironic about all of

. >> >> eamon, thank you very much >>> rick santelli, let's take a look at ten-year did we see a move in the bond market, rick >> absolutely, sully, whether you're looking at two-year hopefully you're looking at charts, ten-year not only our interest rates. since the german elections, bunds. even the equity market our market, to the dax not a new low on the day after it opened it shot up pretty good and is right back on the lows i can't tell you what the war of words means from a foreign policy standpoint or whether twitter should be the vehicle for any of this communication. i can tell you this. it was easy to find this channel and be able to peg it to those headlines. >> certainly the case as well, rick another thing that moved is gold, up about $11 an ounce right now. as these headlines crossed we saw gold shoot sky ward. watch gold, stocks, bonds. with us here is joe terenova, john najarian and peter najarian the market is down but the market is down 89 points are you surprised by the lack of reaction >> no, i'm not let's not make too much of this because if you have had a strateg

sandy spring trust at post nine and sitting next to kenny polcari from o'neill securities and rick santelli, i'm going to start with you, my friend, because tuesday the equity market was standing and this looks a lot like tuesday, a ten-year yield and overseas yields were dropping precipitously and the ten-year hit 2 won 1 for a time today. what do you make of what's going on here? >> you know, the whole world is sort of a potemkin village i get it, if you look at the math, it makes sense why he was happy and co-existing with a lot of growth is a lot of obstacles or asterix, negative interest rates, balance sheets, you for example the big training wheels, and i think that today is another great case in point. the u.s. market, especially in treasuries, isn't telling us anything economic. it followed exactly what you pointed out, bill. bund yields moved from 35 down to 30, shots moved lower and currency moved higher. extensive the markets. the euro goes over 1.20 and our dollar index follow. their bund goes down, our shots, 2s, 5s, 10s and 30s all move down, about the same amount, four basis

susan ox is here with us at post nine, rick santelli is at the cme. and steve leishman, you raced out of the room there. you're already ready to go here. and i'll start with you. no disrespect to the fed chair, but that was an especially wonky news conference i thought. susan disagrees with me. what'd you think >> just fine well, i think the takeaway from this, what i'm sort of surprised about is the certainty with which yellen is forecasting policy third rate hike looks like it's on the table and the extent to which the economy in the chair's opinion, the hurricanes notwithstanding seem able to take or withstand that hike. which i know was wonky, i am telling you i'm sure the trader and investor guys wanted to know that question. is there any sensitivity to the balance sheet reduction plan to income dag that to incoming to changes in the deficit outlook. she really said no essentially the fed fund rate is the way she's going to, the foc is going to respond to economic developments and the reduction in the balance sheet is essentially on auto pilot. >

. >> well done, sara >> thanks, let's get to rick santelli and the santelli exchange at the cme. y, rick. >> hi, carl. you know, i have to weigh in on this quickly steve's right. i talked about the effective tax rate for corporations, but let's not miss the big elephant in the room you know what, small businesses, an engine of growth that's been starved fuel those entities and the subchapter s and all the configurations will give us horsepower we need to really pay attention to that group. they don't vrbahave the money t deal with the huge compliance, but they have huge effects on hiring now let's talk about a couple of channels broadcasting, channels with regard to the fixed income market listen, i'm going to go over things we all know, but in a slightly different way we know there's been four increases since the crisis 2015 december from 25 to 50, we were zeer ro to 25 if we go to may -- >>> deficit neutral in the out years. >> i know you visited and spoke to steve scalise in the hospital many times, but what was it like and what did you say to him when you first saw him in the

craig hodges, keith, rick santelli, as always, my pleasure. >>> up next, jp morgan ceo jamie dimon about to speak at the delivering alpha conference. we'll bring you his comments live as soon as he takes the stage. that should be very instructive. stay tuned she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there. even if it's chasing squirrels, so let me get this straight. you're a rabbit? im vern, the orange money retirement rabbit, from voya. riiight. and that means...? i'm the money you save for retirement. i help you get organized so your money could multiply. see? got it. who's he? he's green money for spending today. you know, paying bills, maybe a little online shopping... makes it easy to tell you apa

gentlemen, thank you all john traynor, peter costa, rick santelli. >>> the s.e.c. as we mentioned earlier was also breached. we'll have more on the fallout from that next >>> plus, google parent alphabet is getting back into the phone hardware business, but not with auionightcqsiti we'll break down the deal coming up usaa to me means peace of mind. we had a power outage for five days total. we lost a lot of food. we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that. we're the webber family and we are usaa members for life. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. >>> so as you've heard the security and exchanges commission revealed it was hacked some of the information could have been used for insider trading purposes let's talk about it, brad bondi from cahill gordon and ryan dell, former counsel at the s.e.c. brian seely, cyber security expert, adviser to john mcafee we should point out, brian, you'

we'll see new 15 minutes >> we'll be watching now let's get to the cme group rick santelli has the santelli thanks, jon i've been watching the euro for quite a while. watching the big rise. it overtook 120. maybe will take an overtake 125. but one thing is for sure after yesterday's ecb meeting, that many around the globe don't understand why the euro is moving higher when quantity take theive quantitative easing may get tapered off. we'll know more information in october. one thing that did come out, a story being passed around, ecb policymakers agreed on stimulus cut at meeting say sources basically what that says is that they are going to do what the fed did. they're going to start removing stimulus most likely in the form after dressing quantitative easing prv purchases, the size and details are on the light side. that would make sense. now when we talk about growth and the reason this is so important is my initial tease general imitation leather, we're always striving to make something man made like nature's original when it come to growth, the growth is real you know, you buy stocks i

with us for the hour, joe terranova, steve wise, pete i a najari najarian, and also rick santelli and onset is paul richards, president of medley global advisers we begin with the markets. stocks are getting a bounce following the worst trading day in week and bochnd yields contie to be the story. ten year is the lowest since november joe, is this time to worry about what is happening with yields? >> i think it's time to be concerned. overly worried, no, because this is something that for the better part of 2017 it's been part of it we've been normalizing rates, but yet the u.s. 10 year has the inability to really lift itself to the surprise of many. so a break below 2 respect about, y 2%, that could be problematic. i think it's problematic for financials for more reasonsect that could be problematic. i think it's problematic for financials for more reasons than just net interest margins. and having the benefit of talking to dave albright quite a bit, it's taking the investment demand away from financial equities and it's going into financial debt because rates are so low and because

with us for the hour, joe terranova, steve wise, pete i a najari najarian, and also rick santelli ands paul richards, president of medley global

rick joins us with a special edition of the santellie change. >> good morning and thank you.o draghi and of course there's going to be a bit of a delay so we'll do our best welcome. i didn't see any specifics on when it would end although december is the date it was implemented. boost demand and raise inflation. on the latter it's doing anything but keeps a limit on import prices. what do you think this far in on quantitative easing and what mario draghi said about it or didn't say about it today, sir >> well he said a very important thing. namely that he would much more explicit in the october meeting. which i have to say the observers in the market was also expecting. another element is the fact that gold in europe is surprisingly dynamic. i say surprisingly dynamic in comparison with previous objections and i was recomputing over the last six months the expectations have been augmented for this year by 4.5%. from 1.7 up to 2.2 or something like that. it's really important and i have to say and it improves as mario draghi said that the monetary policy is operating obviously

. >> thank you for that, bob pisani >>> let's get to the bond pits and check in with rick santelli. >> thank you, carl hotter than expected cpi for august the point four headline read was the highest -- second highest of the read 0.6 was in january that certainly captured the market's attention you could clearly see it on interday of two-year of course, the two-year is short maturity maybe more susceptible to any changes in how this data could affect janet yellen and company. it's already moderated we settled at 205 friday, 222 today, moderated to 220, settle at 219 the numbers aren't huge. as you see on this one-week chart but it's been steady the new way to gauge how wild the treasury complex is isn't necessarily how many basis points it moves. it really is the fact that getting so close to 2% last week and not getting at or below it is really very important, especially in the context of the three auctions that were all mediocre this week and where we're trading right now in terms of yield now, if we look overseas, we know bank of england had their meeting today. boy, it definitel

. >>> fort folio manager at eaten vance, steve grasso from post 9, and rick santelli checks in from the cme as well. so, steve, i should point out the yields have come back as well a little bit. so how do we put this in perspective? yesterday we were concerned about north korea. expectations for irma, what do we say about today >> i they all those are the major concerns that the market is still battling with, but it was the top story and it was d.c. and trump, president trump making a deal with the democrats, which was seen as quite unlikely the republicans can't seem to figure it out among their own parties. >>> and i do believe that the path of least resistance is still higher people are buying dips north korea, and every dip has been viable. >> yana, you agree with that >> i certainly do. i think i agree with the fact there's some level of skepticism that has crept in, which we think is healthy when you think about the sentiment there's few fracturors we follow. one is basically a survey of investors and the markets are six months owl right now 775% of all that responded said they're

. >>> dow is up 217, making it the best day since april back to rick santelli with the santelli exchange like to welcome my first guest. peter, thank you for taking the time it's a solemn day on so many levels, whether it's the anniversary of 9/11 or the human toll, even if irma was less than expected, is all just horrible let's put the human element aside, though, for one minute and speak to the notion of how irma and harvey are going to effect data. will they effect the fed that was most likely not going to come up with the third tightening anyway? your thoughts? >> particularly in the auto sector, oil and gas sector, building materials, construction, home building. we're going to, obviously, see a push and pull of the negative, obviously, in what was lost, the positive in what will be rebuilt. i don't think it's going to move the needle in terms of the fed they seem to be dead set on quantitative tightening next week i think a lot of that is going to be dependent on where the market is and respect to how it handles the quantitative tightening i think the fed still wants to gradually r

rick santelli is tracking the action rickster >> you summarize it.uble the range of today's 10-year. we traded a bit under 10.06. one month chart will show you it certainly has been taking its sweet time to get closer and closer to 2% and what could be called anything but a volatile wild ride. dollar index did have a pop but not near the extent and didn't take it into positive territory like the treasury market index shows a rougher ride and still like treasuries defending lows that we haven't seen in 2017 michelle and melissa lee, back to you >> thank you, rick still ahead, airlines bracing for hurricane irma what you need to know coming up. first, three reasons to buy or ow lchist.is marke "perun" back in two ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing

await the president and emir of kuwait we will bring it to you live when it begins >>> first to rick santellioday's bond report. >> excellent today was all about the ecb and in many ways their markets were our markets. we are drifting or down to 203, we settle at 210 at 205 we're still down 5. you see on this november start that's the last time we were at these levels with you euro down -- with the euro up, the dollar was down as you see on this chart. it continues to make new fresh lows going all the way back to the beginning of 2015. and look at bund deals that's an intraday our market pretty much followed, they're highly correlated. mario draghi was king for a day. we'll have to see how it turns out as we get ready for our big meeting. but before that, of course, we're going to go to a two-minute break on the other side, trump and the emir press conference, so don't touch that dial. ♪ ah the moon belongs to everyone ♪ ♪ the best things in life they're free ♪ ♪ stars belong to everyone ♪ ♪ they cling there for you and for me ♪ ♪ flowers in spring ♪ the robins that sing ♪ the sunbeams that s

. >>> but first, to rick santelli at the cme for today's bond report rick >> reporter: thanks, sullyf you look, you can see it all most the action was based on fed activity we're still up five basis points on the week. but the point is, we're down three on the day call it issues over the weekend. flight to safety, korea, whatever you want. it isn't huge. we want to watch that last half hour to see if it grows a little bit. look at the intraday of the dollar index looks pretty good until you look at the one-week chart. its best chart, of course, was the response on the fed balance sheet, all these issues gave it a bit of a bid year to date chart, not only are we way down from the $1.02 settlement, on the week we're not up much. closed ar ed around 91.90 92.16 now. the dollar even during flight to safety time doesn't seem to get any punch, that's what traders are concerned with watch the dollar index the last half hour as well. "power lunch" will return in two minutes. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your financ

rick santelli, what are your thoughts >> well qualified, intelligent, a steady edy in my opinion, allality that is are good to serve, especially with regard to a central bank, but i also think that there's a culture and it's a global culture of kind of using all the same medicine, kind of using all the same mottos, in for a pence, in for a pound. very difficult to change strategies with the kind of global respect in central banking. and i'm not saying it isn't warranted, but i think this is going to have little effect. i think all the dynamics are in place with regard to the exit that will transpire from, you know, potentially in september for our fed to continue could last for a decade. it could last longer and i do think that the notion of stan fischer, i just think that the sun rises every day we have a lot of smart people that don't seem to want to try anything new and i'm sure that replacements will be cut from the same cost and from the administration standpoint, comments from this administration, they like low rates. there was very little respect for the markets in our fed, rea

ian shepardson jonathan from her rmeridian equ partners at post 9 rick santelli, we're missing you here, rick, he's there at the cme in chicago john, we had a mothot inflation number which didn't seem to spook the markets at all and we follow on these rallies that have put most of the major averages into record territory this week what's going on here in your perspective? >> right i would have figured today would have been a perfect opportunity to take risk off the table right? i mean, we've seen the market hit these highs and we can debate back and forth if there's real muscle behind it. as we get higher and higher, you see these opportunities. start managing your position, your portfolio a little better i think not a ton of economic data we have left coming this week next week virpeveryone's going e focusing on fmoc comments. at this point, i'm surprised we did not see more of a selloff today. any keend of pullback i think would be a good opportunity for investors who missed this market to get back in at this time right now, it just seems like we're in this stable tomorrow. >> we to h

he is not concerned about cord cutting what else did he say we'll hear next >>> first, though rick santellith today's bond report. >>> interesting day, michelle, we had hotter-than-expected cpi, the bank of england sounds as though they have to deal with the issues of the day which are more inflation and better growth so maybe tightening. it will reflect in the charts. one week of two year note yields upward today's data up nine from the lows of the week ten years up 19 from the lows of the week on monday, guilds are up 27 from their intraday lows on monday and finally the dollar index up about 1.25 cents since their lows on monday but still seem to be lagging considering the big push in interest rates hey, "power lunch" can return in a couple minutes, don't touch the dial we'll call on amazon on the other side of this break stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving

rick santelli is tracking the action how is demand?> well, everybody should do their happy auction dan, yeah, it's happy dance we have give an a for demand it's been a long time since we've seen such a called auction. went through the dutch auction process with a yield of 2.13, well below the 2.142 when issued and it w high price, even ice, outside the range, but it doesn't end there. 2.70 bid to cover the third best bid to cover in 3 1/2 years. 70.6, takes out that 69% ten auction average. directs at 19%, the second-best level in three years, and dealers ohm -- primarily dealers only take about 10.4%, a nice a-auction. i know yields have moved up a bit. we'll have to continue to monitor. does this mean rates will stop going up i don't think so, but it's certainty nice to see investors find a level that finally interests them on the current. we're going to go back to melissa lee now. >>> coming up, case dismissed. the s.e.c. losing the high-profile fraud case against lynn tilten. her lawyer says she's been totally vindicated she joins

and rick santelli from the cme rick, let's start with you off the back of janet yellen's comments talk us through what you think the bond market did in reaction to it. >> very ittle. i mean, i know steve's looking at a basis point or two, but, you know, 143 is where we're at. we settle at 142 we could argue about a few base points we also happen to have a had a two-year note action which might have given it a speck more volatility even that auction was just average, considering the last two-year note auction we had about four weeks ago when the yield was 132 instead of 142 that didn't go much better so there's an issue there. maybe it's the topic janet chose. traders on this floor, they don't care about the reasons day like the normalization going on even if that's the right word. slightly higher rates. they've been too low for too long let's balance sheet. it's been too big for too long exactly between the last fed meeting and the long press conference, where there was a lot of head scratching by the group regarding why inflation has been so tame, it seems like all of a sudden, in jus

we talked about that a lot >> we want to get to rick santelli for just a second because he's in the bondking too much of the two year and the ten-year? that intraday looks pretty sharp. >> no, you're not making too much of it i think what's fascinating is the two-year note is up three and the ten-year note when it was trading at 2.27 is up three. everyone is talking about the 30-year bond and settled at 2.82 and unchanged and not too many implications twos to tens. here is a two-day of the fed funds future, the lower they go, the higher of the percentage and beyond 50% if you believe that metric, but what's really fascinating and everybody's been instructed to ignore the dot plots because the record is so deplorable, but i see the months going into next year are down 2.5 and three fed fund points. so the traders are taking it serious and if we look at that two-year we are now at the highest yield since about halloween of 2008. one thing that i hear on this floor and i think it's mr. minerd and he's correct. you ask a trader why that is here's their answer. they're not data dependent beca

steve grassroot who is wearing one, rick, i can't tell, that looks sort of normal to me rick santelli at the cme in chicago. >> i'm skinny, what do you think of the tie now >> good answer, good answer. >> steve, dow's up 76 points right now, the russell up 2% last check, what's going here? >> you have catch-up trades going on dollar mechanism going on here as well. if you think the dollar's rising, it's rebounding from those lows so, the iwms are up 6% in the last month it's been a huge catch-up trade. i do think that a lot of this is month end. i don't know if you should make any business decisions based on what we've seen in the last couple of days this has so much going into the soup it's the stew so to speak right now with tax policy, potential tax policy changes so i think you give if a couple of days, a wait to see if that tech sell-off comes back again before you start putting your money back in all the other value quote/unquote initiatives and investments. >> we're waiting on president trump in indianapolis to really begin selling this plan. how much does the market need tax r

. >> all right rick santelli. way to run an airline let's send it to jonah look at what's coming up on "squawk alley." >> the new apple watch, did it work the way it's supposed to. people are taking delivery of the watch if they preordered last wk.ee we're going to have a reviewer who tested the watch at the top of the hour. >>> a lot of big earnings movers fedex cut outlook, cyber attack and hurricanes weighed on the profits. the stock turned nicely after the opening moving higher. adobe, bed, beth and beyond are lower. general mills had weak cereal and yogurt cells and bed beth is down it's not performed well for earnings for years. >> those 20% coupons are a few too many in the past few years here fedex reported we are sort of questioning the move lower sharply because a lot of the items that the company took on forecast were these temporary items. cyber attack as well as weather. those were transitory. it does look like, at least this morning, wall street has let that go. they are looking past that. >> general

news alert in the bond market everyone borrowing money for 30 years. 30-year bonds up for auction rick santelli is tracking it at the ame. what's the demand like >> demand is straight up for the dutch auction. it was a charlie minus arguably, that is the best to breath not a great set. 56 billion supply done the 12 billion, 29 month, i gave it a grade of c minus. 2.79 was the yield that was basically the high with the issue market, a tail, a third of a basis point if you look at the internals, 2.21 to cover. close to 2.8 to cover. 58.8 on indirect that's the softest since november of '16. not that far from the 63% average. the thing that was spot on was direct at 6.8% so it is done. not only was it a rough three auctions, but there is no noticeable response after supply usually, you get a move after supply the investor didn't seem interested in the concession that pushed yields up to buy in, which might be a statement about future path of rates in the treasury complex tyler, back to you >> rick, thank you very much rebuild or walk away that's a question many homeowners face in the wake of harve

closing bell" exchange, chris johnson from johnson research group steve grasso with us at post 9 rick santelli checks in from the cme in chicago as well it's a mixed day, steve, we've had gains for the week for the most part for a lot of these sectors. financials have done well. but apple has been a big laggard this week. what do you make in the aggregate, what's going on >> i would say the aggregate we're still at 2,500 in the s&p, huge battleground for stocks. >> right. >> in my opinion, it's good breakout or breakdown is good for probably a 2% move we've kept a lot of people on the sidelines. when you have markets that aren't moving as volatile as they would like them to move, you sit on your hands. you don't do anything. but when you look at apple, remember that -- the facial recognition glitch that they had during their presentation, i truly believe that that really opened up the sellers. everyone said, you know what, let's start ripping through it here, no reason to upgrade, let's start looking at numbers if they didn't have that glitch, this stock is at 160 range and that's my personal

we have paul steve grasso from stewart franco on the floor our own rick santelli at the cme in chicago guys, good to see you all. steve, we have, again, the story unfolding for a while, not specifically north korea but even when we get adverse h headlines the market finds a way -- >> shrugs it off -- >> -- to rotate, stay supportive near the record highs. today may be a fumbling of the baton. energy up but the banks and techs both down. where does that leave us with the overall market >> i think you've seen this big tech, sell big tech, sell risk on, sell the growthy names that have been doing so well. remember, mike, you better than anyone knows this, end of september, have the quarter rerebalance, monthly rebalance a lot of this is sell what works, buy what wasn't worked. we haven't yet seen the rotation, to your point, take hold for anything longer than one or two or three different sessions this is a big month for energy and i think it could last a little bit longer, at least until the end of september i think you're going to see this rotation of selling the large cap tech stocks.

part of our closing bell exchange, steve grasso and rick santelli checks in from chicago. steve, watching the sausage being made in washington, and it's a day when the stock market after two decent rallies, days of rallies, is resting here. >> it's resting right on all-time highs i don't think this is, this is a losing day, you can't say that this is a bearish day. even the whole movement in the stock market today was driven by what we just discussed, which was tax policy or the idea that tax reform will take place, but i think this is now from a point of strength. talking about the upper income levels, i don't think that's going to sell with republicans i think that's going to cause more fractures within the republican party and it's not going to be overcome by a handful of democrats going on board with it. if you look at where this is coming from, kevin brady, paul ryan, they introduced border adjustment tax that didn't go over well mortgage interest, that didn't go over well when they floated that balloon, and what about the 401k to kelly's point, there are a lot of thi

winer is with us, brink singer from william blair and steve bliss is with us here at post nine and rick santellirom chicago as well i mean, it's been pretty clear a lot of on markets played few things have been removed but still the safety trade very strong right here. >> you called it perfectly that's exactly what we're seeing, not only when you see the treasury yield curve go down and the price of gold go up and you look at individual sectors, consumer staples as well as health care are the big gainers this week, even though the market is down and you feel a tentativeness about the market with investor and trog be having this conversation on friday because investors are starting to learn going home long on friday can be hazardous to your help you can see the trimming around the edges, and that's the trade we got today. >> i thought that was interesting. you have basically a couple of major hurricanes to worry about, the awful hurricane in mexico. you have a 1. -- you have the 9/9 founders holiday and we haven't been talking about the missile launch today and i'm surprised that the mood isn't w

kelly from jp morgan funds, new york stock exchange trader peter costa from empire executions and rick santellioins us from the cme peter, what'd you make of the quarter? >> what's there to make of it? i mean, you know, it was -- >> with that sub text being your view of the market and whether you've been in it or not >> well, you know what, we're in it, we're not adding to anything because i can't find anything that even entices me a little. you know, we had that short situation, we ended up losing a little money there, we went long a little, we're okay with that you know, it was a solid quarter, based on solid earnings, there wasn't any kind of geopolitical blowup which is still always on the horizon. it's always looking at us. but, you know, it was a good quarter. i think that the one thing that we didn't get, and the traders down here will all tell you to a man, is there was very, very little volatility. and that scares me a little bit. i think that, you know, steady and, you know -- slow and stead wins the race. volatility is where we make our money. coming into october, we might have a lit

rick santelli checks in from the cme. jonathan, i come back, gone three days this week, i come back, yields are much higher but so are stock prices. so what's going on here? >> i mean, we continue to see this market inflate higher right? the headlines that are out there that support the moves headline could put significant pressure on this market as we're trading at the highs, if we continue to consolidate at these levels here and don't get catalyst headlines, think tax reform would move the market all the headlines we've gotten over the last three to six months, nothing moved the market either way in a strong fashion if we consolidate up at these levels here, i think overall con st consens consensus, we're going to move higher earnings season might help the market as we've seen historically, tomorrow, end of the month, end of the quarter. i don't think we need window dressing we've clearly seen the returns in the markets. >> look at the russell, small caps, you're saying that might be one of the beneficiaries. >> big deb

rick santelli at his perch at the cme in chicago steve, we're calling it a relief rally. i mean, all these things we are concerned about going into the weekend didn't quite materialize as feared. north korea being one, of course, and then, you know, the sbimtss fo estimates for irma were maybe as much as $120 billion in damage now looks more like $30 billion to $40 billion you know, not as bad but still bad enough for those affected by this what do you make of this rally today? >> reporter: right, all your point of reference, right, so whether it was $120 billion or $200 billion or the forecast or the estimates, when you look at the rally today, it just stands and speaks to the pent up demand for equities, bill people have to stay invested in this marketplace it's their best bet for a return you don't see rates going anywhere as a matter of fact, it's less likely the fed will do anything other than sit on their hands. you have to be in the markets. you have to not get in the way of this market it's going higher. >> mark, you know, we've heard from a new york fed official,

. >> rick santelli at the cme. >>> as rick mentioned, we ve another news making interview this time withak. let's look at futures one more time after we got the 3.1% final. dow looking to lose 31 at the open, s&p looking to be lower by about four you're watching "squawk box. another day at the office. why do you put up with it? believe it or not you actually like what you do. even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors. analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life. >>> in the month of october, tech >>> take a check on the markets after we got the second revision for second quarter gdp 3.1% was that print. dow jones looking to lose 30 at the open, s&p looking to be down about four, nasdaq looking to be lower by 16 points looking at the reaction in the treasury market, not too much in the yield side still holding on the a 2.33% yield here >>> the gop out with the tax reform blueprint joining us now,