Electrovehicles. They publish everybodys income tax returns. Should we publish that here . How much everyone makes, what their house is worth . And the corn is this high in kansas right now. Everything is very very green, by the way. You are not allowed to take another vacation. Neither are you. The markets seem to be celebrating today. Stocks up nearly 1 . Dow up more than 200 points. More focused on earnings than the volatility in the Chinese Market. Energy stocks leading the charge today with the S P Energy Sector up nearly 3 and some big gains in names like exxon. Take a look at twitter, rallying ahead of its earnings report. Weve got an analyst saying twitter is his least favorite stock he covers. Find out why. See if they wait until 4 00 to release twitters earnings unlike last time when they were leaked early. Homeownership hitting its lowest level since 1967. We have a former fed official with us who will tell us why she thinks Monetary Policy could be to blame, and it may be pricing not only one generation but maybe two generations out of homeownership. Tesla knockoff in china. Can you guess . Which one of these is the real thing . Well reveal the answer and discuss whether or not elon musks empire could be in jeopardy because of this. Lets get to business. Joining our closing bell exchange. We have kim forest ben willis on the floor of the New York Stock Exchange and Rick Santelli somewhere out there in chicago. Ben, i kept hearing about the problems with the u. S. Stock market. We are up 200 points today. Whats the problem . Is this for real or more pain to come . You were not here that was the problem. Welcome back. Thank you. The u. S. Stock market was pricing in the chinese economy, not the chinese stock market. I dont know how to say it more directly than that. The chinese stock market is a symptom of their own manipulation of their population, if you will. What we were pricing in the United States and throughout the world was the chinese economy realizing that at 7 gdp published by the peoples bank of china wasnt going to line up with the other information we had at hand. We were discounting that taking 25 , 30 off that 7 . Thats where you wound up. Where are you guys seeing opportunity here . Are you buying china . Not directly. We are looking to add names that have more growth. That would be industrials and telecom. We think the economy continues to get stronger just very very slowly at this point. The u. S. Economy, kim . Yes. The u. S. Economy. Im thinking through some of the data weve gotten. Consumer confidence number was disappointing. Durable goods was stronger. What parts in particular do you think are going to carry us forward . Well we have some investments in aerospace and that is somewhat based on china that we still believe the developing world is going to continue to buy our high value equipment like planes and all the stuff that goes to service those. You have to you might be surprised by my answer. When i tell you my time frame which is three to five years, that might explain some of our calculations that we still think the American Economy is getting stronger and we should buy low and sell high. We have time to do that. Rick what is on your radar screen . What is moving for you these days . Well i think the stability and actual quiet ranges of the fixed income market in my opinion, speaks volumes. I know that mr. Willis talked about china. There used to be a time before markets were manipulated, managed and central planned where comments used to be made. You look at stocks and that gives you a glimpse in the economy a couple of quarters down the road. Im not sure we can say that about any market this point in time. The reason i bring it up is yes, if you see a stock market up or down in a country, that does give you a glimpse, a correlation into the underpinnings of the economy. We know china is slowing. There is no debate on that. The extent to which we talk about china and the extent to which the central planners try to take that market signal as depicted by equity prices and make it do something speaks volumes. I still contend looking at the yield curve, whether the fed normalizes or not may be an exercise in futility. As i started, the compact nature of treasuries tells me that the Global Economy most likely is looking at the type of growth we are going to see, maybe even a glide path lower, over the next several years. I think thats the true story in how markets and countries and economies make that adjustment. By the way, it behooves me since the fed began two meetings today, to ask you, rick do you expect them to raise Interest Rates tomorrow . I dont expect them to do it tomorrow. I dont suspect theyll do it in september. December is a bad time to do it. Having said all that i made bets that they are not going to. These are bets i wish i lose. Were speechless. Lets pick up on this china point, dont you think . Absolutely. Weve got more volatility overnight in the Chinese Markets. The shanghai was down almost 2 . That is a good day, after it was down as much as 5 it rose even 1 midway through the trading session. The smaller shenzhen index closed lower by over 2 . Ken brown, the Hong Kong Bureau chief for the wall street journal. Happens to be in town. Thanks good. To be here. Weve seen this incredible runup and virtual collapse in chinas market. You are saying this is not uncommon . Chinas market have a history of wildness. When they opened 25 years ago this year in the first two years when brought them up 1,200 and fell by 50 . That is extraordinary. The market is controlled by the government. The government is always pushing a rally, pushing up big ipos and things go overboard and the market crashes. Its a battle between the government pushing it up and investors saying im going to ride it while its good. When im nervous, im pulling out. You see this wild volume tight. How do you think this blend of communism in the government and capitalism in the markets is working at this point . Is it seen as a setback for the government having to prop up the market the last few weeks or just the way its going to be . This has happened before but never to this extent. The government is throwing everything to keep up the market. If you think about it there hasnt been much going well in the chinese economy. The economy was slowing down. They boosted up a real estate bubble. Got the real estate markets going in and that was supporting the economy. That started to die and they started to get the stock market booming. The huge amount of margin lending. Stock market goes up. Thats not working. One of the bright spots is not there any more. There is a ton of debt in the chinese economy. Its quadrupled in the last five years. If you are a company with a lot of debt sell equity. Nice stock market rally. None of this is good for the chinese government. And there is a great point how there is no face like a ben bernanke or mario draghi in china. If anything this is the country run by one figure. What kind of person what reassurance would you expect . Who are the chinese looking to at this point beyond the peoples daily for direction . Theres been no real Government Official coming in there saying we are doing this we are doing this. The spokesman for the Regulatory Commission has come out there a couple of times no one has. There has been no one. Its a weird thing because the underlings dont want to Say Something wrong so they are not willing to step out. The senior guys are not showing up. Do you expect 7 is an accurate representation of the growth in china . You are smiling already. I wish i knew. The Second Quarter responded better than the First Quarter which was 7 . A lot of other indicators say no, it isnt. One interesting thing is the Second Quarter was boosted by the stock market rally. Some people estimate 1 to 1. 5 growth came from brokerages and lending and trading. Thats going to be gone in the Third Quarter. They have to make that up somewhere. You mentioned this has a lot to do with volatility weve seen in this market in the past. In your hong kong. People say that market held up much better relative to whats happened in china. How much knockon effect does this have on the economy broadly speaking across asia . Its having a big effect. Chinese slowdown is having a big effect across asia. All the commodity exporters are getting hurt. Singapore had a bad quarter. Theres a bunch of ripple effects from the chinese economy. Then there is this loss of confidence. Theres been an underlying confidence. Chinese leadership is smart. Theyve done well with the economy. Gibb them credit for that. Now they are losing direction. This is a vote of no confidence. Thats got people worried. You can see currencies are down across asia. In hong kong theres been more volatility than weve seen. Interesting thing is the Hong Kong Market joined up with shanghai earlier. Money was slowing up there. Now the money is flowing back into hong kong. Forever we heard that china is the place to be long term. Investmentwise. Are we starting to see cracks in that though at this point or are these just growing pains for the Sleeping Giant . Well the markets been around 25 years. Its still young. This was a key moment for china. They were opening up their Financial System. They wanted to be in the global indexes. They wanted Global Investors to come in. This is a key moment. They wanted to put this on a show. 2008 they had the olympics. There was a big show. This was similar for the Financial System and is just not working. It is pretty embarrassing. Are we expecting this trading link with the shenzhen to continue . Everyone says its on schedule. You can open up the link. No one has to use it. Its in some ways more interesting because a lot more Innovative Companies are traded in shenzhen. Western investors, those are the companies you want to be in china. You dont want to be in stateowned banks. They are loaded down with debt. They know how to build bridges. China doesnt need more bridges. They are not in good shape. You want to be in health care and tech. It might work. Monday the only sector that was in the green was the restaurant space. There is an opportunity somewhere, just not the one that has been. Thanks so much. Good to see you. Thank you, ken brown. With just under 50 minutes to go until the close, markets staging a nice rebound until yesterdays losses that were the longest losing stretch since january weve seen. Dow up 189 points s p 25 nasdaq almost 50. Get the popcorn ready. Another earnings palooza after the bell. Twitter, Gilead Sciences, yelp panera. Well bring them to you the second they hit the tape with that instant analysis. Latest cnbc survey showing wall street pros lowering their Economic Growth forecast next year. Steve liesman has a special report. Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again, with aleve pm. What if there were only one kind of dog . Then it would be easy to know everything about that one breed. But in fact, there are over three hundred breeds of dogs. Because no one can be an expert in every one. An app powered by ibm watson will help vets tap Specialized Knowledge in the cloud for every breed. And whatever else walks, flies or slithers through the door. Ibm watson is working to make medicine smarter every day. Welcome back. Bill griffeth here at the New York Stock Exchange to carry me through the programming for the rest of the hour. You aint heavy. How was kansas . Kansas was lovely. It was hot, as you all in the midwest can attest to. It was very green and fun to go home. We have 66 cousins. The oldest was 96 years old. Weve got a rally on wall street. Industrial average up 187. Transports are also on pace for their biggest gain since january today with a gain of 2. 6 . The ups earnings hit a fire under the transports today. Weve seen a good rally in that sector today. Lets look at some of these movers. Ups giving a lift after earnings topped street estimates. That is due to falling revenue with Foreign Exchange rates. Growth in the International Segment will help ups achieve the upper end of its earnings guidance. Micron among the biggest gainers on the nasdaq 100. It was hammered yesterday. Intel higher. Two chip giants micron that is anyway. Intel higher unveiling the chip category since nanflash in 1989. 3dx Point Technology is 1,000 times faster than nan and condenser than conventional memory. Twitter numbers out after the bell. Shares higher despite low expectations. Especially that user growth number. Ben schachter says its his least favorite stock. Great to have you here. They dont know who they want to be. They dont know where theyre going. Certainly, the numbers not a lot of confidence on the street where numbers will go close to call. Yet it is such an important or has become an important social media. They havent figured out how to monetize this thing, right . If you think about who they are versus Facebook Facebook has done a tremendous job in terms of monetizing its users, figuring out what those users are interested. Twitter has not executed. They havent done those things facebook has done so well. What numbers this afternoon would tell you that perhaps they are finding traction and turning things around . The main thing people are going to look for is what are the Forward Guidance numbers on revenue . People want to understand what is the strategy where are they trying to go with the company . The number themselves in general, this is a storied stock, not valued on nearterm numbers. How big can this company be over time . Can they execute and be a company that looks more like a smaller version of facebook over time . Not having a permanent ceo is a key issue here. When they finally figure out who that ceo will be what should his or her strategy be . What would you do to try to make this work . One thing they can do in some ways attempt to be more like facebook and google. Dont try to recreate everything themselves. If you think about one of the most important metrics is the number of advertisers they have in their system. Facebook has north of 2 million, twitter last time had 60,000. When you are looking at ad fares, they are not well targeted. Who is your favorite in your coverage universe . We continue to like facebook and amazon the most. The story is there for them. They continue to build. Thinking through, again, the reports yesterday about instagrams monetization in terms of its ad display surpassing twitter within a couple of years. That is what emarketer was saying. How many quarters does twitter have to turn things around . I dont know if they have one or two quarters. Its over the long term where do they want to go . If they dont get the strategy right, the stock will take another leg down. If you have a ceo that cant turn it around or the street loses confidence, that would be another problem. They still have over 300 million years and an opportunity to turn it around. We want to see the distribution and what they want to become. Shouldnt google buy them and call it a day . They have been talking about it forever. I think its unlikely to happen. Google is looking for different businesses. They are trying to change the world in a different way. Regulator was have a much more difficult time with that. Google is fighting this battle with one hand tied behind their bag because i dont think regulators would allow them to buy twitter. Thank you for joining us. Thanks for having me. Heading toward the close. Youve got to back time pay six, all those things. 39 minutes left in the trading session. Dow up 188 points right now. Wall street pros cutting Economic Growth forecasts for next year. Steve liesman tells us how low they are going and why main street needs to pay attention. It was only a matter time a chinese manufacturer coming up with a tesla wannabe. It has a lower Sticker Price than the real tesla. Can you tell which one is which . Weve got a fake one and real one up there. Phil lebeau will weigh in. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. Isnt it beautiful when things just come together . Build a beautiful website with squarespace. Little more than a half hour to go. Thats a lot of green on the screen. Dow up 181 points. S p is bouncing by 1. 25 today. Energy up 3 after its been hammered. Oil went back below 50. Turned on a dime this morning. They were expecting because it was in oversold territory to come back. When it did, it caught them off guard. Not bulls are going to like the extent its snapping back today. Wall street economists have bone reducing growth estimates for next year. Steve liesman joins us with the results of our latest fed survey. This is not a story of a oneoff reduction. What we found in the july survey a story about cons