S p 500 hitting record levels. Were about ten points below our intraday high. Trying to close at a record high for the first time in more than eight months all three avrnls on track for a Third Straight week of gains we begin this hour in washington President Trump explaining why he called off a strike against iran just minutes before it was scheduled. Eamon javers has the latest from the white house. Thats right. The president sat down with chuck here and went through his thinking last night as he contemplated the idea of issue ing the order to begin this attack on iran heres what he said. I said how many people are going to be killed sir, id like to get back to you on that. Great people, these generals came back, said sir. Approximately 150. And i thought about it for a second they shot down an unmanneded drone, plane, b whatever you want to call it, and here we are sitting with 150 dead people that would have taken place probably within a half an hour after i said go aahead and i didnt like it i didnt think it was proportionate. So the president cast iing h decision last night in strictly human terms, terms of the casual theties that could have resulted where that leaves us is not clear in the standoff, but for now, the president indicating hes not willing to take military actions that could result in the loss of rain yawn life ch. Thanks. So with tensions rising, what are the next steps for the u. S. And iran . Lets bring in blaze, a fellow at the Hudson Institute. Blaze, do you think, does this give iran the upper hand here because now there has been no u. S. Response or is the president mentioned sanctions last night, is that the appropriate channel . Thanks for having me. I think President Trump played this exactly right it was a calculated decision to send the message to iran and put the ball back in its court what irans been trying to do is provoke the United States into some sort of disproportionate response that it could then blame on the u. S. And say the u. S. Is the provocateur here were just a peaceful nation hes sent a clear message this he can use force but hes giving iran one last chance so what hes done is put the ball back main their court to s how they can react that now raises the question, in the first place, there were these mines, targeting ships in the gulf of oman now theyve shot a drone out of the sky. Cost about 150 million to farce i understand our sanctions an appropriate response and isnt the iranian aggression a response to earlier sangs . Is the tension across the middle east likely to continue ratcheting up . I think thats the proposition that the administration is trying to test iran is under pressure the regime is feeling the pap of economic sanctions that the Trump Administration has put on it. And its trying to find a way out and t doing that by lash in out. I think the calculation in tehran is if we can do something bad enough that the u. S. Wont be able the tolerate it anymore, theyll say okay, well take our sanctions down if you stop shootishoo ing missiles at our trones or stop international shipping. But washington has a different calculation which is were not going to play that game. But were going to at wup point say you can stop this and well give you an out or theres goin to be consequences so tell me if im understanding what youre sort of differences are upg iran is going to say, okay, well stop i think the sort of the fork in the road that the administration is trying to present to iran. The question is does it keep on doing things that are just below the u. S. Response. Maybe blowing holes in ships lobbying some mizells that dont really have people i hope thats not the case clearly, the administration h e hopes thats not case, but i guess well have to find out so finally, if the president looking to make a deal with the iranian, what kind of deal are you expecting to come out of this it used to be that secretary pompeo talked about these 12 big demands that they have iran, but now President Trump just says stop the Nuclear Program thats all im really asking so what those back Channel Communications are lets cut out this tengs and lets figure outa way to improve on the the nuclear deal that president obama negotiated, which is what President Trump wants and leave Everything Else to figure out. Okay. Thanks appreciate i from the Hudson Institute ch. Forget about a 25 basis point rate cut, how about a 50 point cut. One key fed member doubles down. Steve liesman sheer with some details and context. Neel kashkariy staking on one of the most dovish positions, saying he abdicated for a 50 basis point rate cut at the meeting on wednesday kashkari who doesnt vote now, wants them to commit to not raisie ining Interest Rates untl inflation hits 2 . He said i advocated the rate cut. An aggressive policy action such as this is is required to reanchor our target. You will remember kashkari last voted in 27 and dissented against all three rate hikes now Jerome Powell expressed some sympathy this week he noted research that shows its best for the fed to cut more deeply when its close to zero rates he said an ounce of prevention is worth a pound of cure host the market . Here we go 100 probability of a rate cut. Here we go 78 probability. And a 22 chance of a 15 a basis point cut. The fed did do basis point cuts out of the box in 2001 and 2007. 1998 so 15 out of the box, not that unusual. Real fed men and women but in terms of how this that i think chaing and how it presented this data, how was it before what did we show before . What was that nuanced data before it was 50 was 50 a possibility i believe it was Late Wednesday or thursday i had the possibility of 46. And before that, not much. Really wasnt there. We were able to show that there was a greater than 50 probability of three rate cuts this year, but we werent really looking at this until 50 came along and said we have to take a look at this thats how were going to do it. I think this is the story right. You can wake up, read your journal. Now that it now that its an l possibility. New graphics. S p 500 hitting record highs. Major averages up between 2 and 3 the dow has moved 2,000 points in three weeks and this past week saw the biggest inflows into equities since march. Yields on the benchmark ten year treasury falling below 2 this week lets find out what investors do joining us is margaret, clear bridgeinvestment up 20 this year strategist for peoples United Advisers thanks for being with us appreciate it. I want to start with you in terms of what the different markets are telling u, they seem to be conflicting, you got the bond market with the yield going 2 s p pretty much at r record highs at the same time, we have high yield, weve got all the different part of credit actually acting pretty well. So corroborating with the equities markets how do you read it right now well, the issue is those two markets are not telling two different of a story i know that they look like theyre really di vir gent, but they arent. Bond market is price ng lower growth b and expectations and a rulgt in fed policy response where as the stock market again youre pricing cash b flows off these lower rates. Youve got an accommodative fed and thats positive for risk asset. Looking at two sides with the same coin. Thats the same story in credit as well. Right an the impact in equity, thats always been the argument that lower bond yields can pave the way for higher valuations, but does that break down, is there a limit to which lower rates will actually help and indicate theres something wrong with the economy we have to remember why rates are going down in the first place. Because fundamentals are weakening. We have 17 in the s p 500 and if you said is it going to be another 15 , probably not. And so i mean as we look at it, i think the big difference for us is that were looking at last year, things were expensive, too. Right . Fundamentals were good gdp growth was close to 30 . Now we have a market where things are still good but not as great as they were last year thats important to understand the context for these record highs and the previous highs very different context last year, remember we were benefitting from tax reform. Of course earnings were up really strong. I pulled some numbers the other day, 81 of the tech names in the s p 500 beat in the Second Quarter of 2018 on revenue not even betting from tax reform the fund mamentals are still go. But not quite as good as last year when we wake up to headlines of global bond yields are as low as they are, is there any value left in your space well, there is, you have to remember, too, the bond market is supposed to be the balance. The quality we need because Global Growth has pushed bond Market Performance to extremely strong numbers if i could give you an anecdote on that rick was on Halftime Report yesterday. He said in europe maybe to some extent here, people buy bonds for the upside and equities for carry. There could p some truth to that look at developed marks outside of the u. S 20 of debt is now yielding. That leaves the u. S. Market and the u. S. Corporate credit market like some of these markets are some of the only places you can get yields again a scarcity of other avenues out there. Thats whats going gone there is a search here if you look for at longterm treasuries, those are returned well over 10 year to date which is really striking ladies, thank you coming up, hurricanndred rs companies are coming out against tariffs against chip up nt, aex Business Leader in favor of them. Shell make her case next on power lunch. Xfinity mobile is a Wireless Network designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. Welcome back the Vice President president making statements on china it comes as major u. S. Companies include uing apple are filing. But our next guest supports those. Joining us now is kim glass. Who recentlied bf the u. S. Trad representatives. Welcome and were glad to have you here wed love to know why you think these tariffs would be good for a for business we think that we strongly support President Trump using the mechanism to address intellect yul property abuses that have so impacteded our industry and many other industries were asking the u. S. Trade Representatives Office and this administration to move forward in putting tariffs on finished products come out of china right now, 93 of our imports into the United States from this particular sector are coming in on end products and these products are not any retaliatory from this administration in your industry, were talking about yard and fabrics, which seem like poster children of outsource industries some place where they go to super low costs, the technologies follow. The importers benefit from those cheaper materials. How much of yarn and tech tile industry is left in this country . We have a very vibrant industry. In fact, we are the sec largest textile exporter in the world. Our industry has invested our 20 billion in new plants and technology so we are a vibrant industry and all were asking for is to level the Playing Field with china we support free and fair trade where are most end users located . Im wobder federal government the people who buy the yarns and fab ribs and use them, if theyre located in china and in that part of the world so therefore it makes more sense for that part of the spry chain to exist there we export all over the world, but our primary destination is our western hem streer trade partners 70 go to mexico and Central America and some trade preference partners. So we believe by putting tariffs on chinese end products that are using violating our International Trade measures, that we can bring nor sourcing back to our western hemisphere and provide opportunities for our u. S. Man fufacturing base to dwroe. Is the pap would be born by the manturers and not the industry if there were the tariffs placeded on these companies that produce the finisheded goods so you get the best of both worlds because youre trying to drive that part of the supply chain back here to the western hemisphere and where you dont have to pay the price. In the wempb hemisphere, we have free trade agreements and we have certain rules the chinese have long distorted trade measures from their subsidy, intellectual property theft and what were asking for the administration to do is to apply tariffs to the products that are most hurting our industry were ready to compete with any country in the world and any industry in the world. With respect to this sector, but we need to take advantage of the opportunity. How many jobs . Nearly 600,000. Thanks for joining us kim glass joining us from the National Counsel sill of textile organizations. Shares of fedex down more than 40 in the past year. Can the Company Deliver next week and a wild week for oil continuing utop day 10 . How high could it go if tensions continue to escalate driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. 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Im mike san tolly stocks at record but transports are still stuck in neutral fedex, the biggest loser down more than 30 from its recent highs ahead of the Earnings Report next week. Jb hunt, American Airlines and avis sharp off their 52 week highs. Your trading nation team today, so craig, fedex obviously Global Economic proxy trade r war, potential victim and obviously the stock has had a rough road of it. Do you think its taken enough pain by now or not i think it has. I look at fedex as bottom fishing candidate in the fek cal world. As i look at the stock, has pulled back about 44 off of the highs you can see it in january of 2018 and looks like youre forming a Double Bottom in here. Got really good support. Id be a buyer of this stock here and i think a lot of the bad news is baked into these shares steve, what are the big questions, what to make of the laggered behavior of the transports do you think its time for a rotation into that type of area and how do you see the tupts at the moment we think it make sense. We know the business sector has been weak. We see that in the freight volumes. The overhang from trade and uncertainty around that. Sentiment. But ultimately, and the fed talked about ha in their press conference this week so we think when they do eventually cut for those reasons, its going to help have a reacceleration in the economy. Its going to benefit all cyclicals, transports in particular only thing for us the is we prefer ups over fedex. Little bitter yields, i think the whole group can improve here zpl all right. Yeah if the fed play book pli apply, that should be a beneficiary craig and steve, thank you very much for more, head to our website or follow us on twitter kelly, back to you thanks. Ahead on power lunch, gasoline prices surge iing after a mass v explosion at one of the biggest refineries are prices at the pub headed higher well find out plus, the soaring cost of drug prices and health care the ceo of mt. Sinai and sldilem for Young Workers paying off debt and saving for the future how a company has come up with a real solution that works stay with us this is my headquarters. This is where i trade and manage my portfolio. Since i added futures, i have access to the oil markets. And gold markets. Ok. Im plugged into equities. Trade confirmed. And i have Global Access 24 7. Meaning, i can do what i need to do. Then i can focus on what i want to do. Visit your Online Broker today, to learn more. Heres the krbz news update. A judge orderinging on a decision on charges against jessee smollett who was accused of lying to the police by claiming he was the victim of a racist and home foeb eck attack. By 72 the Supreme Court says prosecuto prosecutors, the decision could affect thousands of pr prosecutions the u. S. Soccer federation and the u. S. Womens soccer team have tentatively agreed to pursue mediation for their pay dispute after the world cup e s ends it could resolve issues deed in the players lawsuit over pay discrimination and a years long lawsuit u between the two sides. Its been tested at one drive through in chicago and it is part of the companys plans to speed up service when ordering youre