Transcripts For CNBC Closing Bell 20170814

Statement he made midday today which well talk about. Meantime, how about stocks. The s p could see its third 1 gain this year just in that territory right now. Just under well tell you whats behind the move higher and see whether we can hold the gains were drifting down a little bit in the final hour here. And this should be very interesting. After the bell, james damore, the engineer fired from google because of his internal memo on diversity. Hell be talking to kelly oneonone to give his side of the story. Looking forward to that an hour from now. He hasnt been shy about it so far. Right. Let begin at the white house where President Trump is about to address chinas trade practices. Onlion javers eamon javers is standing by. Reporter should see that live on camera in a couple of moments. The president will sign a document which directs the u. S. Trade representative to determine whether or not to investigate any china laws or policies that may be unreasonable or discriminatory related to intellectual property and technology transfer, so thats the official designation here of what the president is doing. Obviously the symbolism here in terms of the relationship with china is so very important officials here at the white house though saying this is totally unrelated to the north korea talks that are going on simultaneously that the chinese are so important on, and they are also saying with this memo hand what the president is doing here is standing up for American Companies and workers, and speaking of American Companies, we saw this flareup of tensions earlier today between the ceo of merck and the president of the United States in response to how the president handled the racist violence we saw in charlottesville, virginia over the weekend. The ceo of Merck Ken Frazier putting out a statement earlier today in which he said our countrys strength stems from the diversity and contributions made by men and women of different aiths, races, sexual orientations and political beliefs. As ceo of merck road a matter of personal conscience i feel a responsibility to take a stand against intolerance and extremism. With that frazier resigned from one of the president s ceo Advisory Councils. The president responding within the hour on twitter saying that now that ken frazier that is resigned from the president S Manufacturing council, hell have more time to lower ripoff drug prices so the president deciding to go after merck, go after the pharmaceutical industry and go after ken frazier directly in response to ken fraziers statement of conscience about how he felt about the way the president handled the violence in charlottesville. Meanwhile throughout the day, weve seen other ceos reacting, also denouncing that violence but many of them saying that they are going to stay on the ceo Advisory Council here at the white house including jeff immelt of ge, Andrew Liveris of dow, Stephen Schwarzman of blackstone hand michaand michae dell, all indicating they are likely to stay on the council now. Divided opinion in the wake of the president s handling of that racist violence in virginia. Guys eamon, back on the trade investigation. That is within the rules of the World Trade Organization as i understand it, yes yes. They are not violating any rules by conducting this investigation. Reporter no, its simply authorizing u. S. Trade representative to determine whether or not he wants to conduct an investigation under the terms of the u. S. Trade act, but, yes, you can emergency that the usd r will look at the president s announcement and decide to investigate. What they do from there is an open question, but i think the important thing today is the symbolism of the president doing this in the white house today, especially in the wake of his criticisms of the chinese for not being forceful enough in terms of north korea the officials here saying trade is trade and National Security is National Security, and these two things are not related, but the president himself has linked the two things over the course of the past year saying that the United States needs north korea needs chinas help in terms of north korea and is willing to be a little bit more flexible on trade. If that help is forthcoming, the president is very frustrated with china and hasnt gotten the help that we would like to see and now were seeing a very symbolic signing ceremony at the white house in just a couple of minutes time. Eamon, a few hours back when the president came out with a strongly worded statement about what happened over the weekend hell now have the opportunity if he chooses to answer questions thrown at him, right he made a statement and walked out. Theres been a couple of hours now for him to gauge the reaction and for him to say anything further now, correct . Youll see reporters in the room there will be Pool Reporters in the room and they will try to throw some questions at the president as they always do and its up to the president whether he answers those or not. Typically president s try not to answer them because they dont want to encourage the press to shout at them all the time but the president came under intense criticism for not responding to questions about White Nationalists and nazis and not specifically denouncing them the president might want to go further out of his way to do that today, or his team might feel that hes very much cleaned that particular problem up today and they are ready to move on here okay. Eamon, thank you see you later. You bet. Well wait for that event to get underway here at the white house and well take you there live when that does happen we have come off the highs here we go the go to the white house. They have been looking out for their interests. They have not been looking out at all this is what i promised to do as a candidate for this office, and this is what im doing right now as president ambassador leithowser, you are able to look at all the trademarks, patents, trade secrets and other intellectual property that is so vital to our security and to our prosperity we will uphold our values. We will defend our workers, and we will protect the innovations, creations and inventions that power our magnificent country. Thank you and god bless america. Thank you all very much. Its a very big move thank you. And this is just the beginning, i want to tell you that. This is just the beginning wheres raytheon raytheon, congratulations. Mr. President , can you explain why you did not condemn those haters over the weekend . They have been condemned. And why are we not having a press conference you said on friday wed have a press conference. We had a press conference we just had a press conference. Can you ask me some more questions, but it doesnt bother me at all. Doesnt bother me at all i like real news not fake news. Mr. President , havent you spread a lot of fake news yourself, sir . All right well, theres the answer to kellys questions, no answers on the issue over the weekend eamon javers, the president saying that hes said apparently all hes going to say on the issue in charlottesville and then the process begins now on the trade investigation with china, and im curious he pointed out raytheon to begin with, i guess. Thats one company thats been identified that may have been hurt by trade practices with china. Is that the idea reporter yeah, thats right. They have talked about intellectual property and a lot of companies have had trouble in terms of intellectual property in china, and you heard the president there speaking to that issue as well. Likes the signing ceremonies what he was signing there, of course, not a law. Hes signing an executive memorandum that directs the u. S. Trade representative to determine whether to investigate any of chinas laws that might be contrary to u. S. Trade. This is a symbolic step and important and important for the president to do it on camera and also important for the president not to answer questions from the reporters. I think that was jim acosta of cnn who was in there as the designated Pool Reporter today the president denouncing him or the media generally saying as fake news. Saying weve already held a press conference you get a sense of the president s mood there as he left the event. By the way, raytheon shares up a third of a percent today under their alltime high. Eamon javers at the white house. Lets get to the Closing Bell Exchange with the market up 129 points. Back below 22,000. Joining us right now, thats Oliver Porsche with us at post nine and so is steven sarge gill foy and holly liss from btig sarge, you and i were talking earlier, do we call this a relief rally today whats your answer after last week the markets struggled when it did, seemingly as tensions grew with north korea. How do we define todays market option they will throw something in the water near guam and all bets are off. If the threat is truly starting to abate, then we can get back to worrying about earnings per share and central banking, and the next big bumper and tomorrow we have retail sales tomorrow as far as home depot and walmart and theres a lot to look at next week and that really should be our focus all get near vows with things like global thermonuclear warfare are discussed. We had a 2 meltdown of the market last thursday, and then we stabilized friday and came back today i dont think the market is real el focusing on this all much i think they are focusing more on what happened with the investigation into chinese trade and lets not forget the industries into the steel industry, steel dumping based on National Security concerns theres a lot there and that probably has more to do with north korea than anything else. Oliver, i was looking at some of the stocks, dont know if you used the selloff yesterday to increase or add to positions, smuckers on here, cisco, adp. Not a lot to add other than new client money hand maintain our stance that right now after secondquarter earnings season things are looking pretty solid for the market youve got an environment where you had tenplus person, growth for the adp and an environment where inflation is very low, certainly below the 2 target of the fed meaning that further Interest Rate hikes could be put off as a result. You know, youve got a decent growing economy. Youve got some good data. Youre heading into the latter part of the year at this point which tends to be one of the Fourth Quarter tends to be one of the strongest quarters of the market of all time generally speaking theres lots of reason to be optimistic, and we think that the market judged it right hon friday by shrugging off north korea and understanding so far the geopolitical events tend to fizzle out over time. Holly, on the fed, new york president bill dudley said about an hour ago he would imagine in their september meeting that they will begin the process of selling off some of the bonds on the feds Balance Sheet. Do you think the market is ready for that is that priced in at that point, or what are you seeing i dont think its entirely priced in yet, bill, although he did make those comments and we saw treasury markets sell off a little bit hon those comment, though if you look at it he didnt say anything really different from what hes been saying regarding his outlook for the economy. He still expects one rate hike by the end year if you expect a lot of fed members, they will say a lot of the same thing and whether the market is pricing that, its the same story im not quite sure if they said they will start reducing the Balance Sheet in september or they will start laying more groundwork and details for them for the markets to digest. Even though a lot of the fed members have said they dont think that theres going to be big repercussions, big market moves, volatility regarding their Balance Sheet drawdown, i dont know that i would agree with that statement. After all, we did see a big impact when they grew the Balance Sheet. I dont know why we wouldnt see an impact when they start curtailing the side of it, and maybe it doesnt come immediately. Maybe it comes a little bit down the road as they start doing more plus, i dont know that they are going to start rates or continue to raise rates while they are drawing down the Balance Sheet at least to start, so maybe once we see both of those take place simultaneously, then you could see more volatility and more Market Movement naff. All right we dont have much time, oliver, but were you looking at adp before bill ackman we were looking at it and we increase it had when bill got involved. Riding coattails. Yes, exactly. Whats your support level 2458. We didnt get that close got a little support at 2462 2469 on the s p has been an absolute stop sign get up there well stop like we did earlier this morning 2458 is where you have to worry. Numbers to keep an eye on appreciate your thoughts on todays market action. 46 minutes left in the trading session. Here we go into the close with the dow up 129 points, and whatever were calling it, a relief rally weve got plus signs today disney announced of course last week it was pulling its movies from netflix soon and now netflix is stealing a top hitmaking producer at disneys abc unit a little tit for tat up next, what this means for netflix future. James damore, the Google Engineer fired for his controversial diversity memo, hell join us and explain why hes exploring legal action against the tech giant. We love hearing from you, folks. Reach out to the show on twitter, on facebook send us an email. Youre watching cnbc, first in business worldwide a used car, truck, suv. Okay plus signs today the dow now up 133 points. Was up 160 that was our peak for the day and above 22,000 for a time. The big gainer, look at, that the russell, the nasdaq is no slouch either. A gain of 1. 25 today. And netflix scoring a big win after scoring producer Shonda Rhimes from abc. Reporter one of the most successful names in broadcast tv which makes this such a big win for netflix as it works to reduce its reliance on hollywood company. Her Production Company will bring new shows to netflix while their hit shows greys anatomy and scandal and how to get away with murder will continue to air an abc they have announced deals with David Letterman and the Cohen Brothers and its also the latest split between netflix and abcs parent disney after last week disney announced its pulling films from netflix in 2019 to create its own streaming service. That news pushed netflix shares down 5 last week. Abc studios president Patrick Moran saying the network will continue to benefit from shondaland recognizing the success of their abc shows and other products in development. The shondaland imprint will be always be a important part of the abc studios. We wish them the best in the new endeavor netflix has a reputation for big production budgets and allowing a lot of creative freedom. Well very to see how this can help netflix grow its Subscriber Base guys, back to you. We shall. Be barrons out with a harsh cover story saying shares could fall substantially by 2020. Netflix not only faces competition from disney, facebook and amazon, but that it really doesnt have the cash to create enough original contempt you know. I just realized the blockbuster sign there im slow to the uptake. It was pointed out to me, too. Full disclosure. With me here is the interim editorinchief of barrons. Com. They dont have a problem attracting toplevel talent like Shonda Rhimes and David Letterman. Miller world, its the stuff they need to do if they are going to survive and less than the individuals or the individual company, what it means is suddenly netflix is conflicting with its distribution partners. Thats a big problem. Yes. If you think about back to the days when, you know, blockbuster was filing for bankruptcy because of the netflix competition, it was a wonderful new platform for disney and anybody else. Now suddenly it has to fight for every one, and thats why burning cash at an increasing rate is really disturbing. I mean, its a fairly mature company, but they went from 100 million, you know, in 2015 to 1. 7 billion last year to a rate possibly 2. 5 billion this year, an heres amazon looming which sneezes at Free Cash Flow all the time. I now the commonality was interesting. You look at how viacom had super high debt levels and it has a movie studio so is the idea that netflix is kind of making the wrong decisions now while everything looks great that are going to leave it effectively paralyzed five or ten years down the road in fact, not only are they not making the wrong decisions, i think they are making a lot of right decisions. I think the problem is the market has assigned them this insane multiple. I realize this level is not that meaningful but, you know, we pegged it at 207 times this years earnings, and frankly those are kind of aggressive earnings, as we point out in the article whereas time, hbo, takes a writedown when it discontinues a show and netflix keeps it on the books, arguing, that, well, well continue top stream t. Fair enough even, if youre looking at industry comparisons its not a great directional that all these things are moving in. What about the recent acquisition they made ofthis small comic book company i mean, this would seem to try and get around losing some of their inventory that they have from some of these partners that they have had in the past. Buy your own. Thats the point i made. This is what they absolutely need to do, but i sort of challenge anyone to name five miller world characters. Its not marvel. What that does is theoretically lowers their production costs, right . Absolutely, but are you going to continue to pay for netflix so one of the things were seeing is for this disaggregation suddenly espn is something youve got to bicep ratley kids any you have to bicep ratley, so in my house hold and i should tell you my son is becoming a world war ii buff we watched the longest day on netflix over the weekend how old is he . Hes 10. Wow. Pointed out the things that they got wrong, big history kid. Im going to hang at your household. But the point is netflix will just be one of many so he wants star wars. His little sister wants muwana and am i going to continue to pay . Are they charging enough sirius charges up to 20 bucks a month. Whether you went to jack or jack came to you and said barrons is going to shorten netflix. How many times have you had to say no this is kind of call tearing peoples faces off for years now. Were not arguing to short netflix. What were seeing is we sure at heck wouldnt put money to work at 207 times aggressively stated earnings. That would be jack otter. Youll find him at bearoarrons. Of the mag zone. And send our greetings of your 10yearold. I have a feeling hell be watching. I think well be working for him some day, too. Thanks, jack. Great to be here. 35 minutes to go. The dow is up 140. The s p up about 1 . Were looking to see if this could be the only 1 gain in the index this year despite what a strong year its been for the market 1. 3 higher for the markets and 1. 4 higher for the russ well a year when its only been about hitting singles, no home runs. Maybe this will be a grand slam never mind merck ceo ken frazier resigning from President TrumpS Manufacturing council over how trump handled the racial violence and trump attacking him and drug prices. Ahead, whether trumps relationship with the Business Community is starting to erode. First though, target is making a deal to expand its Delivery Services and ttbeer compete with amazon and walmart. Well get details on that when kelly and i come back. Whoooo. Looking for a hotel that fits. Your budget . Tripadvisor now searches over. 200 sites to find you the. Hotel you want at the lowest price. Grazi, gino find a price that fits. Tripadvisor. Shares of target up 1. 7 after announcing its going to acquire Transportation Technology Company Grand junction, a Company Based in san francisco. Its currently working with target on its new york city sameday delivery pilot program. The deal is expected to expand targets delivery capabilities target will report earnings on wednesday, by the way. Heres my question. Sure. What does this do withups and fedex . And when you consider that amazon is also exploring ways to deliver its own stuff as well . I was looking into this company which was unfamiliar to me. Yes. And it looks like they provide software that helps maximize the speed. Its a logistics company. A coordinator. Yes. Locks like they might partner with any number of different types of firms and perhaps this is a recognition on targets part that it doesnt have the Software Infrastructure to be able to do this for all of its existing stores. Here heim connecting two dots that you never thought might be connected and probably shouldnt be, but youve got now programmers like disney and cbs and everybody. They are coming up with their own skinny bundle and companies and retailers like target and amazon are coming up with their own Delivery Services. Its a doityourself kind of economy right now. Whats that good . Diy economy. Were going to build an etf for that. No doubt thats coming. Lets get to a cnbc news update now with sue herera. Hi, guys. Vice president pence in colombia today speaking exclusively to nbc news about the situation in venezuela. The United States of america is committed to bring all of the resources of our nation, economically and diplomatically to bear, to bring venezuela back to the point where its people can restore democracy. No bond for the man accused of driving his car into a crowd of counterprotesters in virginia killing one person james alex fields jr. Appeared Via Video Conference in a charlottesville courtroom. He told the judge he understands the charges against him. And Justin Thomas picking up his first major Golf Tournament win and a cool 1. 2 million. His putt on the 10th hole will forever mark the moment. Watch this he had a routine eightfoot putt for birdie, but the ball hung on and hungon and there it goes for 12 seconds before dropping in. Thomas birdied two more holes on the back nine and won the pga championship by two strokes. I could not be more thrilled for the kid. We had him on the show in january. Went out to chelsea pier here on the hudson river and hit balls with him had i may be misremembering this, i dont know, we have video of this day. Right. But it seems to me i recall justin saying to me, would you take a look at my swing, bill. Im sure thats exactly what happened, i dont know. Im sure you gave him a couple of tips. And since that day he has gone on to win four tournaments this year, including yesterdays major, and hes up for player of the year, so, i dont know, coincidence . No, i dont think coincidence. I think you were a major influence on him thats my take on all of this. Thank you, sue. And the patience. Youre a very patient person. Oh, well. And he had a lot of patience. Yes, he did. He did that. Why is kelly chuckling in the background im attesting to his patience, and i think any wouldbe golfer, come hit with bill thats your ticket. Thats exactly right. Thats your ticket into the big leagues. Thank you, sue. See you next hour. See you next hour here on the floor here with Matt Cheslock weve opened strong and even with dudley speaking and so much else going hon. There is a lot going on, this is the quietest retracement rally weve seen in a long time. Break out the dow 22,000 hats for another day here, but the market is just showing although were not getting intraday volatility were getting preand postmarket volatility. Is that an etf phenomenon the etfs are a prevalent part of this market so youll start putting more and more of the blame for the volatility on the etf market but its really not more a washington volatility thing. Anything that comes out of washington has seemed to send the markets moving and now that were out of earnings season its more and more in focus. And weve stopped watching the price of oil for directions about this market. Has the market left it behind . I dont think its left it behind i thought markets thought wed see a retracement back to this level hand thats in the middle of everyones range of 45 to 50 and now were smack in the middle and now we need it to go higher opec has given us their best shot as far as taking oil higher its not working, at least in the short term, so i would think oil might be soft until we start that back in the fall. And well see if it takes the market with it, too. I hope not. The matt, thank you very much Matt Cheslock. Bill thank you 27 minutes left in the trading session. The dow up 139 points, just under 22,000 some Silicon Valley companies are shutting down accounts used by hate rally attendees like we saw in charlottesville over the weekend. Um next, a look at how some startups are filling the void by Offering Services to the altright and he was fired by google on writing the memo why he thinks biology is one of the reasons why there arent as many foe mail engineers in technology and coming up hell join kelly to defend that ctreral ewn an interview you do not want to miss thats an interview coming up on closing bell. Plus signs for the market. Call it a relief rally what do we want to do . A good start for the week after a rough week last week the dow up 137 points right now. Just under the 22,000 mark. And tensions are heating up between some Silicon Valley companies and some members of the altright community. Our deirdre bosa has more. Reporter hi, kelly and bill. Tech companies struggling to find a balance between allowing for expression and also not providing a platform for hate speech take today, the neo nazi website daily stormer moving to google remains after go daddy said they would kick them off their platform, google since cancelling its registration there saying it violated their terms of service facebook, too, in a statement just now telling cnbc that they are actively removing any posts that glorify the horrendous act committed in charlottesville guys, there are an increasing number of platforms and services outside the Big Tech Companies for far right activists to use, amounting to a shadow Silicon Valley some right wing activists banned from twitter or facebook have joined another social network called gab and theres a crowdfunding platform which has served as an alternative to patriot. Voat is for people who cant on reddit and theres a wikipedia alternative where editors scrub elements of ideological bias. 20 minutes to go until the close. Nasdaq is one of the best performers on the session. The smallcap russells are the strongest and still 50 points off their record high. And a ways to go there. And President Trump is taking aim at high drug prices in response to mercks ceo resigning from hiS Manufacturing council. Up next, well hear from the head of another drug company on whether he owes worried about trump going after his industry again. Plus, home depot has been outperforming the dow this year. Coming up, a debate on whether you should be buying this blue chip stock ahead of the earnings it reports tomorrow morning. And then fired Google Engineer james damore is here to defend his controversial memo on gender diversity in Silicon Valley thats coming up in the next hour h. Back in a moment. And the wolf huffed and puffed. Like you do sometimes, grandpa . 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We have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Tand the alzheimersf association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. Whether its connecting one of or bringing wifi to 65,000 fans. Campuses. Businesses count on communication, and communication counts on centurylink. Welcome back strong day dow hanging on to a gain of 139 points its record high is 22,118. The s p up is on the nose see if it can have a rare 1 gain, only the third one this year Danish Pharmaceutical Company lundbeck is teaming up with 23andme. Approximately 350 Million People are living with depression around the world. And these two companies are hoping to be able to better develop drugs for the treatment of these disorders joining us in a cnbc exclusive were pleased to welcome the ceo of lundbeck here at post nine and also meg tirrell need to be part of this joining us from our headquarters thank you for joining us youll find 25,000 people that you want to study. I also thought there is already known that theres a genetic connection to depression so what are you hoping to learn with this coined of a study beyond that . Well, its known theres some connection but we dont know exactly what it is so we dont know what genes are triggering it and under what circumstances. Identifying the specific genes involved there. 23andme is to provide the logistics. Also to measure online to measure from people how they feel and how the disease is progressing so they get the combination of live still factors and gentics. I see. Meg this is meg tirrell and sorry im not there with you in person i want to ask you about the companys focus on Central Nervous system disorders, depression, alzheimers, that kind of thing, but a there hasnt been a ton of focus on that recently among Major Pharmaceutical Companies what do you see as sort of a landscape for developing drugs in that space. Do we have enough of an understanding of whats going on in the brain to really make moves forward . Well, we are a 100yearold research and developmentbased Pharmaceutical Company and weve always focussed in psychiatry and neurology so we focus on depression, schizophrenia, parkinsons and alzheimers. These are very, very difficult areas to do research in, but we believe they are so huge that needs are met there that we need to do it for the betterment of the patient. We struggle on even though we have many defeats we have many successes and were able to bring drugs to the market which makes it easier for these people suffering from the devastating diseases. Are these expensive because this morning the president was tweeting at merck about how he was displeased about high drug prices if theres more focus in washington would that hamper you guys in these efforts . We see long term and have been in this for many, many years. We assure well get a fair value for our innovation it does cost billions of dollars to make a new drug but, of course, theres also patent expiry and drugs become very cheap and thats the case with antidepressants where generics are 80 of the market. We have very cheap therapies and new innovative therapies which will be a higher value and also higher cost per patient. There was a story in the New York Times yesterday. Very interested. You probably read it about the number of fda trials going on involving geneticbased drugs because all Companies Want to be able to patent their own getticbased drug so there are hundreds, thousands of these trials going on, and they cant find enough patients to fulfill those. Are you having that problem as well no. We are having more broad testing of our product we have in development so we dont really go for specific genetic profiles, depression, schizophrenia are broad diseases and very many patients in need so we dont target it on the genes but the broad population. I see. And this is meg again kind of coming at you from all sides here, that your biggest market is the United States despite you being a european company. When you see the president of the United States taking aim as he did today at one of the Biggest Companies in the space merck and calling their drug prices ripoffs, how do you respond to that . Are you concerned . Well, from moy point of view, from lundbecks point of view we believe we provide value in all the products we bring to the market so we dont think weve ever seen ripoff prices i know there has been episodes with other Smaller Companies in the United States which is very regrettable, but in our case we believe weve brought true value to the patients. Mr. Schultz, well let you go now. Thank you for joining us now. Thank you very much. The ceo of Danish Pharmaceutical Company lundbeck and, of course, meg, thank you youve had your busy day as well well be seeing you a little bit later, thanks. Were heading to the close 14 minutes left in the trading session. The dow up 137 points. When we come back, well debate whether you should be shopping for shares of home depot before the Home Improvement retailer reports its earnings tomorrow morning. And dont miss the oneonone interview with the engineer fired the by google for his memo on why there are not as ennes. Emale gier james damore will join us. Were back with more in just a moment top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested art cashin stopped by a moment ago to show an imbalance to the sell side of 400 million. Well see if any of that is met, paired off there, but right now the dow is up 135 points meantime, home depot is set to report its earnings tomorrow morning. That stock is up 15 so far this year is the there still rom to buy it notably its up in this kind of year. Yes, exactly. Retail apocalypse. Tough year for retail. Joining us our guests, one with an overweight on the stock and a contributor from s. J. Retailer advisers and is much more cautious on home depot. Im interested from your point of view, tracy, why you dont think home depot is a good valley. Yeah, kelly, i have no doubt that home depot will be just fine during the report torme and heres the problem here. Home depot hasnt missed in five years and they are at a point where gross margin has peaked. In addition, im going to say the thing in the room, amazon and everybody is going to roll their eyes at me, but with the kenmore appliance deal on amazon it shows you that the space is at risk. And ecommerce at home depot is growing 23 . That tells you that the amazon door is open so its not immune here. All right david, bearing all that in mind why are you as positive on home depot as youve been we think there are structural advantages and differences between Home Improvement and home depot even within Home Improvement relative to the rest of retail. Stacy is right to point out that amazon is a risk for all parts of retail. Home depots ecommerce business is driven by its holistic approach to omni channel youre talking about a company with 60 better return on capital than your average retailer, about twice the growth rate of the core driver, gross profit dollar on a comp base, sore for either double or 60 better in the key metrix youre looking at were paying a 20 premium and we think a lot of risks that stacy is talking about is in the stock at these prices. David, i wonder if home depot at some point has a moment of reckoning if they always of a sudden have a choppy quarter or its soft or theres a hiccup or a blip in other words, how consistent of results do you need to see to be assured that amazon isnt eroding this business . Sure. You know over a long enough period of time theres always going to be rocky quarters or blips. First of all, we think the quarter was just fine so i agree with stacy there probably started a little stronger than it ended some of that is weather and how they will talk about the fall. You know, the consistency that they have built really comes from reinvesting in their employees, reinvesting in their relationship with the customer and being very patient as they approach the shareholder they talk a lot about the threelegged stool and we think they talk the talk and walk the walk around that, and that builds consistency never say never, but that sort of buffers some of the volatility from the business. Stacy, im not exactly rolling my eyes on the amazon comparison, but, you know, it occurs to me, and this is from personal experience, maybe youve had the same thing, but whether im going to a home depot or lowes or whatever, its almost an impulse buy i realize i need a certain tool or a part or something, and i dont know that i need to wait 24 i dont want to wait 24 hours for amazon to deliver it to me. I want it know and youve got to run to the local hardware store, right . No, i think there definitely is some of that and certainly, you know, home depot is very exposed, you know, 40 of the business to the pro business which is less at risk, but i would also see with prime if you think the night before, you broke something or something is falling apart in your house, can you get it, you know, the next day typically on prime, so i do think that theres risk and also, you know, when you look at amazon and you look at a space like Home Improvement where the returns are so high, to think that amazon wouldnt really chase that down at some point, there is a major opportunity there, you know, they will figure out how to get it to your door next day and dont forgot these kenmore appliances are, are you know, have the echo in them so you can just speak to your appliances and replenish your needs and have them show up at your door. Thats pretty cool, i will say. David and stacy, thank you both. Home depot reports its earnings first thing tomorrow morning. With the dow up 144, were coming back with the closing countdown in just a moment. And fired Google Engineer tmes damore defending his memo onech and saying what legal action hes considering of action hes considering of taking against his forme were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like itrs a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. So you can get business done. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested two and a half minutes with the dow up 139 now its monday, typically i dont look back over a period of time i usually do that on friday, but i want to do it today for a reason call it a snapback rally or relief rally lets just see the magnitude of this go back six trading days can all of last week and today starting with the dow. Well see what kind of a move we had. All know the problems were incurring last week, the rising tensions with north korea, and then we had this bit of a snap back rally today with the dow up 137 points so weve gained back some of what weve lost in the past week or so. Same thing with the vix. It had been down for a while and then it moved higher we got to, what, 15 or 16 and now were back down again. Were at 12 at change with that decline of three points today and gold itself considered, of course, a safe haven play and had been rising a bit. Im not sure that the decline today is that much in the scheme of things after the rise weve seen the past six days and then weve got the dollar index popping midday with these comments from bill dudley that maybe the fed at its september meeting will be starting the process and laying the groundwork for paring back its bond portfolio. You were talking about art cashin speaking of the sell imbalance and speaking about why the market is the way it is. You have to look at things on the horizon, jackson hole, central bankers making their comments and also what will haep happen on the context of Interest Rates towards september towards the end of the year and all of that in the grander scheme of things weve gotten back half of what we lost during the melee surrounding north korea last week if you look at the dow transportation stocks and look at the smallcap stocks and up 1. 5 for both of those guys here if you look at the small cap russell 2000 index traded fund, the exchangetraded fund t. Basically came to a technical level, the 50day average price for that particular asset and it bounced right off of this so as people talk about the buy the dip mentality, a lot of charts indicate that that could be the case. And as we wait for the retail earnings which should be very important. Home depot, walmart, target, all of them. Stay tuned for that as well we go out with a gain of 133 points on the dow and even better gains for nasdaq and the russell. Stay tuned as kelly goes oneonone with james damore, that fired engineer at google for that controversial memo. Coming up on the second hour of closing bell with kell el evans and company. See you tomorrow, kell thank you, bill welcome to closing bell. Heres how were finishing up the session. Looking at record highs. Were not there, but we did have a strong session the dow is up 132 points 21,990 its record high close is 22,is 18 so well well below that level. S p 500, look at this. Looks like a 0. 99 gain. The dow up, by the way, twothirds of 1 well see if the s p shakes out a little bit were looking to see if maybe it would have the third 1 gain so far this year, but its teasing up and looks like its getting close to that level with a 24point gain. Nasdaq up better than 1 1. 33 to 6340 and the russell 2,000s have been much harder hit staging a comeback of 1. 5 , still up 56 points off of their record high closing levels those are the markets for you on the bell and in a few minutes james damore, the Google Engineer fired for his controversial memo on gender diversity will join us to give his side of the story. In the meantime sara hunt on set, Portfolio Manager at alpine funds and kevin oleary joins us good to see you both overall, sara, a strong rebound today. What do you think is really driving these markets . I think you had a relatively good earnings season and people were using the excuse of what would happen in korea. Really hart to say whats going on there and when everything seemed to calm down a little over the weekend i think you just resumed where the market had been headed prior to there being a little bit of of a dip there. Where do you guys still think is the place to be as everyone looks at the fact that were near alltime highs and seem to shake off every possible thing that you throw the markets way . I think it does make it a little bit tricky. I think theres some areas where you see growth defense stocks at alltime highs and you are starting to see growth for the first time in a while and fortunately a lot of whats going monin the world doesnt make it look like that scenario thats going to be in focus for quite some time so theres places there and places in energy beaten up badly as well. And you own raytheon and when he was signing his executive order giving the trade office the opportunity to investigate china over stealing u. S. Ip he gave the pen he signed that with to raytheon. I would say theres a lot of issues about ip and there have been for a long time the question is how are we using this, and how is that going to be used and from the defend companys standpoint we like raytheon and they are in a very good place they do a lot of consulting and outsourcing work and we think that will continue to be more prevalent. Kevin, broadly speaking youre bullish on asia as a region so youve got the north korea issues to deal with, china in the mix there, whether we we are pushing back on their stealing of ip or whether just their involvement with helping north korea or not, and then overnight arguably strong japanese Growth Numbers that helped get us to where we are at the close today. Certainly beating the s p, its been the place to be in the last 12 months i think it will stay that way for the next year. The negotiations going on with china are health el. The dialogue were having regarding intellectual property makes it best for the companies more than 50 of which are playing in china the fact that were discussing trade and not healthcare i think is also good what lit up the markets this morning is trump talking about a quasitimetable for tax, and i think this is the next big thing. If we can get some tax reform in the first or Second Quarter of 2018, the market will move on it in the next two quarters, and my sense is we may not get 15 , but if we get 22 , its going to bring the market up another 10 to 15 , thats what im betting on. All right im looking at the nasdaq as well today some of the biggest point gainers, no surprise given their size including the f. A. N. G. Names, facebook, amazon, alphabet by the way the end today might be nvidia with a strong bounceback after its earnings beat last week, and it had an upgrade today f. What youre talking about is right, a lot of investors want to rotate out of the growthy tech names and into something more ecofocused, industrials, materials and so forth, but today it didnt quite feel like we got there they are not quite buying it yet i guess is what im saying no, but i think healthcare and industrials and technology will continue to perform the big question mark sectors that everybody is waiting for the big move is energy which had a horrific earnings season just terrible, so what we wanted to see is an increase in the commodity price and a decrease in cost and we got exactly the reverse. Costs are up and prices are down and thats bad and then theres the hope springs eternal forever on the financials, and so those are the two big question mark sectors going into this quarter, and well see how they do. In fact, sarah, they started the year off super strong. We started using the terms finergy. Weve since run into roadblocks. Where are you when it comes to energy and oil kind of moving back down and financials with Interest Rates moving back down again. Well, on the energy side, we like dividends. Bp is a pick of ours were staying with actually held up better than some of the energy picks, and the hard thing right now in energy is exactly that point youre not seeing what you want to see and youre also looking in the financials, you were looking for higher Interest Rates across the board because you were looking for races that went on all year long and now it looks like were pausing there and dudley came out and made some comments that sounded like december goes back on the table. Seemed like in the last couple of weeks that the rest of the year was probably off the table and what happens with the Balance Sheet. That is the financials thats lost the plot. He said if conditions play out, aswe expect thats a trillion dollar if with this economy and this fed. President trump has mentioned making an announcement on china trade practices. Eamon javers joins us with more. The president announced steppedup trade action with china here at the white house. Heres how he expressed just a few hours ago. Today im directing the United States trade representative to examine chinas policies, practices and actions with regard to the forced transfers of American Technology and the theft of American Intellectual property we will stand up to any country that unlawfully forces American Companies to transfer their valuable technology as a condition of Market Access so what the president did today was sign an executive memorandum heres what the mum dumb would do it directs the u. S. Trade representative to determine whether or not to investigate any chinese laws or policies that will may be unreasonable or discriminatory related to intellectual property and force Technology Transfers as you heard the president say there. The officials here at the white house are saying this is not linked to north korea. They are saying its totally unrelated to the president s memorandum, but, of course, north korea and trade with china have been very much linked in the president s comments publicly as he worries about how to get the chinese on board with the United States in negotiations with the north koreans. Also the president saying or officials here at the white house saying that the president is standing up for American Companies and workers with this trade action today kelly, i also want to give you an update in response to that ken frazier decision from merck to step off the ceoS Manufacturing council. We now have a statement from the aflcio in terms of their membership on the council. They are saying were aware of the decision by other members of the president S Manufacturing council which has yet to hold any real meetings and are assessing our role so not clear yet whether Richard Trumpka will stay on that Manufacturing Council or not aflcio saying hes assessing his role kelly . Yeah. They had somewhat of a meeting on some labor issues eamon javers with more on the trade relationship between the u. S. And china lets bring in the president of chinas beige Book International and also with us at post nine. Your whole approach is kind of gather stats on the ground about whats really going on in the country. Just speaking about this issue of theft of u. S. Intellectual property, what happens if the u. S. Starts to take a harsher stance on that well, i think the Glass Half Full version of this is that everyone agrees its a problem, republicans, democrats theres no question that this is a major issue, the chinese know it, and the last few administrations have promised movement on this, and they havent gotten it soy with a problem. We have solutions that hasnt worked and a status quo that hasnt worked. What trump is doing here saying were putting another trade bullet in the gun. Were not firing it yet. Starting an investigation. Look at what the we have, holding it over your head and we want movement on this or else. What would the or else be its effectively chinas m. O. And did this when we were developing, stole trade secrets from the uk and built our own factories and china doing the same thing and this being as widespread and pervasive as it seems, if they prove that in certain cases, what is the United States going to do about it they will prove it because its happening anything can happen or nothing can happen it could be part of a large grand bargain with trade hes got china and north korea and broad trade relations and what hes trying to do is force china to the table and is going to say we want movement on this, want movement on that and when the chinese get together with the americans there would theoretically being move president without having used section 301. Just the threat of it is what hes hoping. He may be hoping that and even ceos who are vulnerable and victims of this behavior are afraid to do much about it because china is such an important market to them in a way they are probably pleased that the u. S. Is trying to step up and play cop, but they will have to step up, too, arent they . This is the glass half empty side of this there needs to be something done and this is giving the United States the opportunity to do that this was replaced by the wto in 1995 no movement on this. People like Scott Lincicome at cato are putting out a paper and its a very good overview of how useless this law was prewto its not as effective. The threat is more effective than the sanctions itself. Mr. Asia, kevin, what are your thoughts and reaction here as you look, you know, as excited as you are about the region i think the markets actually voted. It knows all of this coming. Trump broadcast this during the campaign he was very xestic on tspecificd china. Made it very clear, doing exactly what he said the chinese knew this. The reason the market hasnt really reacted at all is they expect this to be a very long drawn out negotiation because part of is t is also going to be the dismantling of tpp, the complete overhaul of nafta with the canadians and the mexicans this is going to take much longer than trumps mandate, and if he only has one term. If hes a twoterm president which many people feel he might be, hell actually oversee the change of this, but this isnt happening any time soon. This is years and years away, and the market, frankly, doesnt care and well have plenty more time to talk about it. Well let you guys go there. Kevin oleary, sarah hunt and leland miller. Thanks so much recall have breaking news on pandora. Whats happening, julia . Reporter pandora announcing that roger lynch will join the company as ceo and president and a member of the board effective support 18th the companys interim ceo will continue in his role at chief executive officer. The company also announcing that michael linton, ceo of Sony Entertainment and now as chairman of snap will be joining the board of directors so just a little bit of bc ground on roger lynch, he was ceo of sling founded member of slingtv, and is also a musician himself he plays lead guitar in a band called the merger, so some commentary here about how the company has how roger lynch has had great experience Guiding Companies through critical transformation periods back over to you the band is called the merger reporter thats right. Hes hes a musician playing lead guitar in a band called the merger seems appropriate for a ceo. All right he said he worked on acquisitions julia, thank you very much pandora shares responding positivelily, about 2 . Up next, ill talk to james damore, the Google Engineer fired for writing that memo on diversity. We would like to hear from you send us an email over to closingbell nbcunip. Com. Youre watching cnbc, first in business worldwide 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 time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Welcome back last week Silicon Valley was rocked by a critical memo written by a Google Engineer about diversity at the search giant and what he called googles ideological echo chamber. The memo looked at what the author referred to as biological differences between men and women as a potential reason for fewer women living in the tech sector and criticized google for not accepting differing views. After the memo was leaked, the Ceo Sundar Pichai fired the employeeization portions of the memo violate our work ethic at google and rarsless google and joining me now via skype is the author of that memo james damore thanks for joining us. Thanks. For many people who arent familiar with the back story here, why did you decide to write this memo three and a half years into your work at google yeah. Ive just noticed any problems in googles culture and i really wanted to fix them. Well, thats a Pretty Simple reason, but i just mean was there you had gone through some Workplace Diversity training or Something Like that. What was your, you know, moment that kind of made you say i have to write this now and i have to put this out there yes about a month and a half ago i attended a private diversity summit, and they revealed a lot of policies that i disagreed with, where we were pressuring individual managers to increase the diversity of their team, and we were really treating people differently based on their race or gender, and i felt that that was really misguided because it can cause a lot of actual intergroup conflict thats ultimately bad for everyone. James, that goes to one of the questions ive received about your memo. There are people that says why does someone feel the need to share personal political views in the workplace . Why do you believe this is a workplace issue rather than a political personal belief . Many of the things i addressed were are the actual terms and conditions of the working environment and there are certain people who when were actually using someones race or gender to decide how or when they will be promoted or what team they will go on, that is affecting everyone at google, and thats creating negative stereotypes which is a real problem, and weve already seen it in academia and its only going to get worse. I think you mentioned that you had worked on the memo with others or at least spoken to them about its contents before this were those other people at google who felt the same way as you . Yes this is all within google. And and, yes, there was go ahead. There was a lot of so is it that people had felt that way all along, or its gotten much worse lately, and was the intension of the memo to change the companys culture and is that going to happen now that youre no longer at the company . So i think that its probably gotten worse over time for many of the reasons that i state where people dont feel like they can express a differing viewpoint, and so these policies only get more extreme so i do hope that google does address a lot of the issues that i mentioned and real ly empower people to express their opinion. That decreases employee output not being able to exprus your views has decreased worker output. And what kind of input have you gotten from other Silicon Valley Companies Since this publication . Ive gotten a lot of support and it doesnt seem that google is an outlier in this. It happens in many other companies. If you worked at apple or amazon or whatever, do you expect it would be the same type of internal culture that youre aware of and that they would have responded the same way . Its possible i honestly cant say about any individual company, but ive heard a lot of feedback that it is very similar. I saw you were surprised that you were actually fired, and are you pursuing a lawsuit against google as a result of that yeah, i was very surprised because i was pointing out actually problems in our culture and potentially illegal practices that we were doing, and so i was really just trying to help us, and i never meant for it to be leaked at all i am pursuing legal remedies at the moment. What kinds of legal remedies are you available to you im still exploring that. Is there anything about the memo that you would have said differently, omitted or included in retrospect . Yeah. So i think i definitely wouldnt have used the word neuroticism though thats the actual term used and though the actual data i havent seen disputed or proven false and hopefully there is a lot of good that happens from this so its hard to really regret anything you mentioned neurotcism and one of the points is that women tend to be more quote unquote neurotic in the workplace. Do you want to elaborate on that what you meant by that, or do you want to walk back from making that point at all neurotc ri sm measures, for example, how prone one is to anxiety, and so we had googlewide surveys that showed women were showing more anxiety at google, and we were using that as evidence that were being sexist against women, but i was simply pointing this out to say that maybe we should control for someones innate neuroticism and we can give a Personality Test to everyone and see if were treating someone different or if its someones innate tendency to have anxiety. Now, as you know, theres been huge reaction not only to what you said but also to the way that google has handled it in fact, theres been some altright sites calling for a boycott of google, and i think there might be some boycotts planned for the end of the week. Do you support those efforts. I support google and i real do want google to improve i dont surprise efforts to try to hurt google directly. I think that googles culture really needs to change if it wants to do whats best for its employees and users though are you involved with any of the prance for the protests or boycotts or anything like that no, not really. Do you think that those shouldnt move forward then . I i honestly dont know much about them, so i cant really comment. Is that i know in some again, i use the tomorrow atright loosely and i notice those are the kinds of people you spoke to is it you felt like that was the best praise to go to support your cries i have given interviews to many places, just gave an interview to cnn im not trying to favor one side or another ill really trying to bridge the divide between the two sides and showing what the perspective is between, for example, the left and the right and how they can can be complementary to each other and how we shouldnt just see each other as mortgage al enemies that need to be destroyed. I dont think anyone is accusing cnn of being altright. Thats for sure. I mentioned the fallout for some of your colleagues the ceo spinch yeah planned to hold a town hall after this memo became public and he cancelled it because of quote, unquote, doxing meaning that people who disagreed with you were being targeted and did not feel safe do you regret seeing your colleagues, your former colleagues being treated that way . Yeah, definitely. I dont think anyone should be treated like that, and i and i think it was largely cancelled because there was still a lot of emotional tension happening at goingnd and they wanted people to calm down before that because they could have made the kemess anonymous show there was really no threat. I think that it was people who were against me because those were the people on twitter exposing internal google problems to the world and then they were the first ones to talk to ghizmodo and the it was said that the ceo should step down because of his handling of this issue. I dont know if his handling of this situation is cause for firing him theres many things in upper management, for example, no one in upper management felt like they could support me in any way because the end game would have gone against them so the whole structure of how things at google work needs to change. James, what are you about you . Are you going to valley to work. Are you brewinging on some of your undergrad work. Whats next for you, do you think . Im stilling that i this out. Im looking forward to that, but i still like tech so ill look for a job there if im not bl k blacklisted from a lot of these major companies. On that front, what message would you give to women at google or in tech in general who think youve created a household Work Environment for them . I would say that those really a distraction from the real issues that i was pointing out, and the real hostile environment that is currently happening at google and has been happening in many Silicon Valley companies where people that arent in the left ideology cant express any of their viewpoints. We cant express any viewpoint that doesnt fall in line with the lefts ideology and thats a real shame and thats really causing a hostile Work Environment. James, last question. Did you vote for donald trump . Are you a supporter of the president s . I im not really a i dont really Pay Attention to actual politics very much, the daytoday politics. Im mostly interested in the ideas and how we can bridge the divide between the two sides, and whats happened recently is just increasing partisanship which i really dont support. Now you get work partisanship to deal with. Thanks so much. James damore. The tragic death of heather higher over the weekend have hit many in business asft moneys guy adami joins us with our fast take next. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Steve, other than making me move stuff, im here at the Td Ameritrade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Welcome back we have breaking news on Berkshire Hathaway whats happening there. Reporter digging into Berkshire Hathaways quarterly filing, interestingly buffets Investment Company disposed of 10. 6 million shares it held in general electric, a pretty small stake for berkshire. Only 250 million worth. Hes held that stake for a few years, and if you remember the history here with this company, jeff immelt, stepped down in midjune right before with the quarter ended, and buffet during the financial crisis lent ge 3 billion which they, of course, paid back in 2011. That stake was as a result of warrants related to that loan. Also in the filing, buffet took a new stake in sync any financial. Those shares have been moving quite a bit on this news, as you can see there from the chart he took 17. 5 million shares, worth about 521 million and also increased his stake in bny melon by 52 to it a. 2 million leslie picker, thanks so much now over to sue herera. French police say an 8yearold girl was killed and at least five people injured when a driver slammed his car into the sidewalk cafe of a pizzeria in a small town east of paris. The driver was arrested soon after. Prosecutors are saying the incident is not terrorrelated a 23yearold man was arrested Early Saturday Morning in connection with a plot to detonate a vehicle bomb at a downtown Oklahoma City bank. The complaint says Jerry Varnell initially wanted to blow up. Federal reserve in washington, d. C. Private attorneys hoping to represent mexican drug lord Joaquin El Chapo guzman failed to get assurances that they will get paid during a hearing in federal court, they were told there is no guarantee that prosecutors would not seize their fees if they could show that this money came from guzmans drug profits. And in just a few days big ben in london will go silent for perhaps as long as four years. Its due to major renovation work on the clock. It will be part of a 38 million repair project on Queen Elizabeth power which houses big ben. Youre up to date. Back downtown to you, kelly. Thats a tricky renovation project. I know, it is. And it just doesnt seem right that you dont hear big ben. I know. Its iconic yes. Good luck to them. Sue, thank you very much. You got it. Sue herera. Time now for today owes fast take joining me is the one and only mr. Guy adami to do the honors guy, thanks so much. Kell, whats up great to be here. Ill tell you whats up, the price of bey coin. We have to bin with this over 4,300. I follow like its a frenzy. Im worried people are going to get burned what do you say . Because thats what you do. You do worry and should worry. What do i say . First of all, soothesayer, are you familiar with that term. Shakespeare spoke and wrote at soothesayers. Fortune tellers. Why do i mention this, our brian kelly has been on us for a couple of years. Im not brian and i dont know about 4,300. If youre speculating at bitcoin, by definition theres a very good chance youll be burned, your words, not mine, but than doesnt impugn the Technology Behind it. I know. Its a Transformative Technology its here to stay. Im telling you it aint going away. I hope block chain helps with buying a house, transferring title ock sglumts whuments. Whoa, whoa, whoa, you bring that up . Moving on. Moving on. Aldi is not only mavisly expanding in the u. S. And testing a delivery nor partnership with instacard is walmart far enough ahead on this thread and when can i get my groceries on amazon prime i dont use this technology, should come at no great surprise the Walmart Technology is sort of a hybrid, right you order online and then you drive your little pacer or whatever you have to the local walmart and the little guy or gal comes out with your groceries and puts them in the back of your car fantastic, lost on me. Fantastic. All right. The aldi, one in rockaway, new jersey ive seen, it crazy, right and they have their own food so unless walmart starts making stuff, their own brand, the walmart brand. They may have to. They already do, great value. I grew up with that stuff. Weve got to move on to our last and final one here and weve got to talk about angry birds because, guy, 2 billion the Finnish Company behind that hit game of angry birds is planning an ipo that could value the company at that amount, 2 billion. Guy, weve seen Gaming Companies go public before they Good Investments . Madness, biggest thing to happen for finland since the 1962 summer olympics rovio, youre out of here. The pleasure as always. Buy. Fill you in on the back story later. President trump calling white spremp sifts quote, criminals and thugs this afternoon for some like merck ceo ken frazier who quit a white house advisory post. Up next well speak to former ceo bill simon on how the president s handling of the weekends events is impacting his relationship with American Business my name is Cynthia Haynes and i am a senior Public Safety specialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Welcome back the country is still trying to recover from the weekends deadly protests in charlottesville, virginia. Our Kayla Tausche is in the small Virginia College town for a look at the impact these events have had. Kayla . Reporter kelly, theres a police press event going on right now. They have said theres a hotline open for any witnesses who may have seen some of the events unfolding on saturday, but this community is in healing mode right now. Local businesses are opening their doors right now and the community is about to expand by tens of thousands of people when the university of virginia students come back to charlottesville in just a matter of days to that end the president of the university is doing outreach to both incoming students as well as alumni h. One of the statements said, quote, as a Public Institution we value diversity, inclusion and mutual respect. We value an environment in which learning happens the view of many of the groups who converged on charlottesville are in direct conflict with this such rhetoric is not intended to bring us together. Its intended to drive us apart. Local businesses are united in their solidarity to stay open and to keep growing and to remain committed to this community and to the roots that they have put down here. We spoke to one business leader, a partner of an app Company Called willow tree earlier this afternoon, and heres what he told us. This is a macro thing i know the micro focus is on charlottesville right now, but these themes that the rally, these bigots brought to this town, is a national if not global thing fact that they chose charlottesville to come and do their rally and bring their hate is telling they brought it to this town because this is a community about diversity, about inclusion. Reporter and it is not just charlottesville. Just about an hour ago the Associated Press reports that White Nationalist groups are currently seeking permits for events forth coming to be held in richmond, virginia, college station, texas, where texas a m as well as gainesville, florida, the home of the university of florida. Well see what those communities decide in terms of the permits. Thanks, kayla. The president being criticized how he responded to the violence this weekend. Ren rensi now speaking out the president of the United States works for us and we ought to challenge him i wish hed put me on the council and im sure mcmast per and kelly and those guys, they are tough people, and im sure privately they are giving him a Performance Review we better get together as a country and celebrate our diversity, celebrate our differences and celebrate the wonderfulness that comes out of all of that, so id be challenging him every minute of every day, and we should, and if he doesnt do a good job well boot him out of office mr. Rensis comments coming before the president spoke about that cleanse this afternoon, but his handling overall of the situation is what prompted m merck ceo ken frazier to resign from the president s council lets bring in john mcnabb, vice chairman of the American Leadership council and bill simon, former ceo of walmart usa. Gentlemen, thank you both for joining us mr. Simon, as a former ceo yourself what do you make of the decision that mr. Frazier chose here hand mr. Rensis criticism . Well, its a difficult situation, as you can imagine. You know, i dont i certainly respect what mr. Frazier did, but the times that were in are very, very difficult and we really need everybody pulling. Certainly understand his comments and i appreciate his statement right up until the end when he resigned we really need everybody to engage and if the Business Leaders, the great Business Leaders withdraw or disengage because they dont like what the president is doing, and i agree, he should have responded much more quickly and much more forcefully, we wont achieve the things that we need to achieve i tend to side with what m mr. Rensi just said and said stay on the council and battle him every single day thats how we get the progress that we need. Youre actually saying that the executives because theres going to be more pressure put to bear on them our colleague Andrew Sorkin writing the only reason they are staying on the council is they dont want their business relationship with the government to be to be hurt here youre saying theres a legitimate reason to stay on the council even if you disagree with the president and certainly abhor the violence this weekend. You know, absolutely. We have to stay engaged. Its really, really important to if you disagree with him had i was a supporter of jeb i was jebs treasure im not a trump guy and hes the president of the United States and we have difficult issues to deal with, both domestically and internationally and every one of those solutions will have to go through the president. The best way to do this is to engage and battlep and get your point across dont fold and walk away its really important for us to stay engaged. All right john mcnabb, whats your response and advice to executives grappling with this issue . Well, thanks, kelly the advice that i would have is lets stay engaged we need to all be americans, and we should not fall into the trap of identity politics what we need to do as leaders is focus on civil discourse i take a little bit of exception with some who have talked about how quickly or how slowly the president responded to the situation in charlottesville having been in a couple situations similar to that, stressful flying over north vietnam, i can tell you that it isnt easy to respond on the spot, and as charlottesville unfolded, the facts were unfolding themselves, and i think now theres a much better view of what is going on the attorney general has talked about a full investigation and getting to justice, and my sense is with the president i thought he handled it very well. If you go back eight years, go back eight years and then up until this current election, there was a lot of quick talk on situations that turned out to be not accurate, so jumping to the gun is one thing, and i dont think this president has been doing that all right gentlemen, thank you both today. John mcnabb and bill simon, appreciate it. Now talk about a dropoff two years ago venezuela boasted profits in oil of more than 7 billion. Those profits have now fallen far short of just 1 billion it seems impossible, but were going to breakowthe mbs ghafr is dn os rophone feedback listen up, heart disease. You too, unnecessary er visits. And hey, unmanaged depression, dont get too comfortable. Were talking to you, cost inefficiencies and data without insights. And fragmented care stop getting in the way of patient recovery and Pay Attention. Every single one of you is on our list. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Appreciate it. The governor has declared a Winter Weather emergency. Extreme risk of burst pipes and water damage. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back venezuela is a country deep in crisis, but its long been thought oil reserves to keep it afloat after going through the numbers our Michelle Carusocabrera is here to tell us thats not even the case michelle reporter hey there, kelly. Venezuelas oil Company Finally released their long overdie financials profits were to only 828 million. Thats after the company says they sold 42 billion worth of oil. Thats a margin worthy of a supermarket, not of a major oil company. And the auditors kpmg raised numerous concerns. We also learned Energy Company rosneft, 50 owned by the russian government, has given them 6 billion since 2014 the cash injections are labeled as prepayments for oil that rosneft will receive in the future however, slowly but surely as venezueezuela struggled, theyv begun giving rosneft ownership stakes in the oil fields instead and now collateralized 49. 9 of venezuelas refineries in the u. S. Meaning if they default, a russianowned company could lay claim to u. S. Based refining assets Pretty Amazing keeps getting worse the more you learn about it, michelle thank you. Michelle carusocabrera. One week from today, millions of eyes will be looking up at the sky and the sun. The countdown to eclipse mania is well under way. If you havent made your plans already, forget it if you havent gotten on the amtrak train already, youre not going to be able to rent a car well tell you after this. So who sent you . New guy. What new guy . Watson. My analysis of sensor and Maintenance Data indicates elevator 3 will malfunction in 2 days. There you go. You still need a pass. Welcome back maybe youve heard nothing about it or maybe you think youve heard everything about next weeks eclipse jane wells has news for you, right, jane . Reporter oh, gosh, kelly, turns out all 50 states even alaska and hawaii are going to have partial eclipse if youre in the band where it all goes dark, the hype is eclipsing expectations weird ways peoplare e cashing in when the closing bell returns. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Evena girl with golden locksls, broke into a house owned by three bears. She ate some porridge, broke the baby bears chair, and stole some jewelry, a flatscreen tv, and a laptop. Luckily the Geico Insurance agency had helped the bears with homeowners insurance. They were able to replace all their items. Including a new chair from crate and barrel. Call geico and see how easy it is to switch and save on homeowners insurance. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested with at t you can get your entertainment right here. Right now, when you get the incredible iphone 7 from at t you can get unlimited data and live tv. The channels you love. Your favorite shows and movies. Making your iphone into more of a. Oh my tv is ringing. Hey. Im in the middle of a. A second iphone from at t . Okay right now when you buy a new iphone 7 from at t youll get a second iphone 7 on us. And power both with unlimited data and live tv. Welcome back were just a week away now from a rare total Solar Eclipse in the u. S. And most americans are only within about a day of the eclipses path jane wells looks at all the prep going into whats turning out to be a very special and highdemand event. Jane reporter well, kelly, we are going to see this weekend a migration across america, the likes of which we havent seen since the gold rush. As people invade a swath of the country starting in oregon, all through south carolina, to see the full e clims on mondclipse y colorado warning of traffic nightmares the population of wyoming could double yours truly and the cnbc team will be camping in madris, oregon, a million tourists could hit that state hotel rooms in goregon where the full eclipse is, going seven, eight times the normal prices. People are renting out their backyards on airbnb for hundreds or thousands and of course companies are trying to cash in. Criskrispy kremes glazed dought will go dark next weekend. A special eclipse train to carbondale, illinois, immediately sold out airlines have specially chartered flight to chase the eclipse. Hertz overbooked cars in portland and is trying to apologize and ae coccommodate customers. Goes on and on sales of Solar Eclipse glasses amston trying to reach out to customers who may have bought counterfeit fake ones. That would be bad. For example, do not wear these to look at the eclipse it will be bad for you and finally, kelly, states which depend on solar energy from california to North Carolina are trying to make plans so the grid, the lights will stay on when the world goes dark next monday back to you. Now, i did not think about that one those are your sunglasses, jane, right, those wont cut it, protect . Reporter no, we are allegedly going to have real solar safe glasses when i report live on monday, and heres my prediction, kelly. Emergency rooms across america, especially in that path, are going to be filled with people who looked up then were like, oh, my god, i cant see. Especially in states where pot is legal i hope it doesnt make me unpatriotic to think, i dont need to see it in person, i can kind of get the feel from pictures and things of whats going on im supposed to be doing a tv show during that time here in new york, anyway by the way, the krispy kreme doughnut might get me out of it. Chocolate . This is new. Then i think id get in a car, i would pay 1,000 for someones backyard so that i could get to a chocolate krispy kreme reporter kelly, you know what, even where you are, there will be a partial eclipse. The whole country will at least get a piece of it. Only in that swath will it go dark and at midday, it will be crazy. And how long is it going to last, about a couple minutes, right, for those even if youre directly in the math, you only get two, three minutes of it, right . Reporter right it starts around where i will be in oregon, around 10 19 pacific, 1 19 nr tiyour time for two min. South carolina, an hour and a half later it actually moves pretty quickly while its happening you better not blink or youll miss it. Dont look at the sun without the right glasses. Ill see you in a week, jane, i cant wait. Reporter okay. Jane wells. That does it for closing bell. Fast money starts right now. Fast money starts now, live from the Nasdaq Market site overlooking new york stis times square im melissa lee. Pete that jarn, karen finerman, tim seymour, guy adami netflix and disney heats up, approaches a top