A lot of people think when you and becky and andrew are here thats Stranger Things. Thats very true. How quickly can we show mack. Are we going to do this now at the top the guys that are here wear black and i asked him, magnum p. I. But you finally just rebelled you finally said f it, im sick of the black stuff and im coming in and i like it myself. I like the palms on it. I tried to picture myself in that and thats when i started getting uncomfortable for everyone for everyone involved but it is friday. It is friday. Can you tell . Is that what it is . Casual friday or something its a good look. Man, oh, man. I asked you if you noticed and you said i have eyes, dont i . Lets get to the markets because it was a record close pretty much across the board the dow rallied 227 points to close about 27,000 for the first time ever. Stocks got a boost from the signal that the rate cut could be becoming this month and a year and a half since the dow sit 23,000 the best performing dow stocks have been microsoft and lets get a check on them. The s p looking at 8 points and closed 2999. 9. So shy of 3,000 but a record close there. And the nasdaq looking at 25 that was the only major index. Take a look at the treasury yields being impacted by the cpi data we got here on squawk box and we did see them edge higher along with a soft demand for the 30 year bonds in the auction held yesterday 10 year note yielding 2. 141 and 2 year. Whats the most important thing . In what context happiness. Honesty. Its work place culture. Work place culture. How much do we love mack . Do you see how theres a lot of love. Our show at 5 00, fast money, our crew, i come in and these guys are like Walking Around like pins and needles poor mack, you have taken 30 years off his life hes 17 years old. He looks like hes 90. Thats not very nice. True. He looks great. Not nice to you, actually. For a great grandfather he looks really good. Were going to talk to navaro later. Peter navaro. Yes we are. Overseas in asia, stocks closed slightly higher in japan, hong kong and Mainland China after the close. Now after the close, china reported exports fell less than expected in june and in the first half of the year, total trade with the u. S. Was down just 9 but thats a big number. Well talk more about trade numbers later this hour with the china policy expert and then at 7 30, a life interview with white house trade adviser Peter Navarro but where were going with this is something that i saw on the way in and adami, you follow them occasionally. Sure. Him or her. Were so quick to say him or her. I thought it was brad pitt. From fight club. Anyway, dhl is sounding the alarm shipper. Yes about air and sea freight both and theres numbers that were supposed to be above 50. Theyre like down in the mid 40s for things going to china and things coming out of china from the u. S. And i want to ask navarro about that you were talking about fastenal and caranys in coal mines. Which i feel sorry for. Your job is to die. Its to assertain whether the levels of methane are high enough for human beings to live. If there wasnt a chance that theyre putting you in there to see if you die, guy thats the only time your useful is if you do die like insurance Life Insurance when do you want that to pay off . But we all face the same inevitability. So dhl, fastenal. Canaries potentially. That would depend upon the metabolism of the individual canary. You were like a bio engineering major. Excellent point. We wont go there anyway, what about the frog though in the water. Boiling. How does that work . Thats interesting, isnt it so interesting but lets talk about this tweet. Crypto. President trump making news saying hes not a fan of bitcoin and other crypto currencies. He says theyre not money and theyre highly volatile and based on thin air and can facilitate other unlawful behavior including drugs and illegal activities also taking aim at Facebooks Libra saying it may need to be subject to regulation. He isnt alone in criticizing the plans. Fed chair jay powell and mark carney all voiced their own concerns and so has mark cuban in an interview. Im not a big fan its a big mistake not so much because of what will happen here in the United States but what will happen globally. Theres going to be is on african country that gets upset that they cant control their currency anymore im not a fan of what theyre doing but its only in the talking stage right now so well see what happens. President trump tweeting dependable and reliable dollar should be the only real currency in the usa calling it by far the most dominant currency worldwide saying it will always stay that way. Bitcoin investors are shrugging off the president s comments bitcoin is up more than 2 . I think if you gave me 10 or 15 minutes with trump, i think i could make the case. You could sway him on cryptocurrency. He has become the gospel of bitcoin. Bitcoin specifically. Heres what youre up against. Who has the biggest vested interest in things staying the way they are. The United States of america. The government. They have no control. Thats the whole point of bitcoin. Exactly so this should not be a surprise that that would be the angle that but im going to defer to tyler and he is very we have elected to put our money and faith in a mathematical frame work thats free of politics and human error and its that simple. Think about bitcoin it was born out of occupy wall street, the financial crisis all of this interest where trusts in banks and institutions and government had been eroded. With everything i had seen when you say look at all the stuff you can do with it. Same as cash. Theres so many scams but it does make it easier and better and no one ever really denies that there are certain criminal activities that are better with bitcoin but that doesnt mean its not going to happen. Without question and i dont want to necessarily go down this rabbit hole but it was born out of the wall street movement, theres no question, its also born out of a movement where Central Banks globally are all in a race to devalue their respective currencies. So dont think this doesnt have anything to do with the fact that everybody is trying to torch their currency and President Trump is right to say the u. S. Dollar is the reserve currency but he said on a number of occasions he wants it weaker and quite frankly if the fed is going to go down this path of lowering rates thats what is going to happen. Be careful what you wish you, you might actually just get it. What do you think the average fee on just a transaction is when all youre trying to do is take your, your hard earned money and give it to someone else somewhere else in the world. In the emerging countries like africa, where Money Transfer is very prevalent, its 10 . 10 of principle. Whats the average all the time what would you call it thats the friction . The average is a big number. If you the way that amazon took retail to zero as far as middlemen and everything else, the same thing could be done for currency and trade and commerce and that gives it inherent value. Am i right or am i right . You are right, joe. Do you know who is going to be on today . No idea Peter Navarro. The pomp. Im so far ahead. Im light years ahead of you. Most people are its 5 00 in the morning. This is a guy we want to have on and im telling you, it starts spreading like wildfire i wish wed have the other guy on too have you had him on no. Why not difficult to get. Hes all over the world. This is squawk box. This is it we can get him. Why dont you get al michaels to call him. Thats brilliant, actually. Im going to get him. Anyway a developing story in the gulf of mexico, Tropical Storm barry is hovering just off the coast of new orleans the city has already seen record rainfall in recent weeks the storm could make landfall as soon as saturday the Mississippi River has now been at flood stage in louisiana for longer than any time on record forecasters say it could crest as high as 19 feet after the storm moves through. All right. Coming up, what time is it 6 11 pretty long a block wasnt it . Well, you talked about maxs shirt for like fyffe minutive m. Lets see it again. Can you just do the top button for me. Undo it no, i want him to do it bench chair powells rate cut signals helping drive the market to new highs you can never do that on fast money. Move on move on, move on. What if i scratch myself there. That might take a littl time and then next week earnings season kicks off and then next, later, dont miss our interview with Peter Navarro hell join us live from the white house at 7 30 a. M. Eastern. As we head to break, he has a ph. D. From your school. Harvard no. Heres a look at the biggest winners and losers in the dow. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Closing above the 27,000 level for the first time ever. Hence why its called a record joining us now is the financial analyst at sgh Financial Management and kathie head of research sam. Yes. Are you bullish, still . Or are you scared . Its more neutral i would say bottom line youre going to get a lot out of this i can tell viewers will say i know exactly what to do now after listening to sam. You get an opportunity in just preparing for so tivolatily pe ratios at about 16. 9 are showing being higher than the 5 and 10 year averages it shows slight overvaluation but nothing extreme at this point but with that too theres a psyche issue wednesday there was a sell off of set outflow and neutral funds and domestic equity and you have great news of Interest Rates going down and hitting new market highs and we are seeing huge outflows. Thats the biggest single outflow since 2014 i believe its a difference and i think the sell offs are going to continue throughout the president ial election. Are you expecting 16 in the first half of the year. I wasnt expecting this recovery to come as fast as it did. In the markets from the december low. Correct, yes. I thought it was going to take probably the course of an entire year to get to where we are right now. But with the Interest Rate changes that are imminent, we would think this might just build a bigger bubble in the markets. Again with that pe ratio saying prices go up. You think were in a bubble right now. A very minor one. Nothing to be concerned at at the moment but i dont personally agree with lowering rates. As of today i think that thats not a healthy standpoint. Theres a lot of i know we worry about the slow down globally but domestically, gdp unemployment, Consumer Confidence a lot of things align to explain why were at new highs sometimes i feel like were looking and nitpicking when we cant just we have low rates and low inflation. We have solid growth and low unemployment and wages rising and you can pick out a lot of really bullish things to explain where we are and its therefore not bubblish. Absolutely but bottom line is thats all very high, high thinking and when you get to the people that are actually investing, i would say that the political environment really scares a lot of both sides of the parties and then also, too, just slow down this economic slow down thats coming. Id say that clouds their Decision Making and the republicans are looking to the future what if trump doesnt get elected and we do have tax increase. Hes already been elected oh, you mean reelected. You had a 2915 target at beginning of the year. We hit that, so kudos. Are we going to close at 2950 so youll be exactly right or have you raised your target yeah. I think its important to factor in there are good combination of factors that have gotten us to this point of optimism and asset price inflation. At this point i think that were on a sugar rush. I think theres way too many cuts baked into markets right now and that if your audience wants to protect their gains, a very prudent way to do that is to buy put options on the s p for december expiration over the course of the next month today over the course of the next month, a july 31st rate cut is going to happen thats going to happen but icon tend this is going to be a one and done. So you mean people that are long youre talking about people out of the markets and buying puts. Hold your positions. You dont have to sell it. If youre long, you can buy puts for the next month. Sure, you can relinquish 3. 6 you can buy the december put option and if youre fine with giving up 3. 6 of what you gained so far and it protects against what i think is going to be a market freak out when the fed doesnt cut more than once this year. That might work too thats your maximum output is 3. 6. If it goes up another 10 then you participate in that by holding on to your positions. Precisely. Thats a very prudent way to go, but yes. Does that indicate that near term your bearish or just protecting yourself. The u. S. Economy is not going into recession its something that i came on with you in december saying really this fear is really misplaced so if we do get a rate cut, one rate cut, thats bullish so we should see more upside right after that first rate cut at that point i think its prudent to start hedging yourself and putting on some type of protection for that inevitable down side when the fed doesnt deliver what the fed funds futures market is pricing in 3 to 5 rate cuts from now to year end with more than a 50 probability if we get one rate cut thats going to be positive for markets because we are in an economic expansionary cycle and it simply undoes the december error which many of us think was, in fact, an error for the fed to hike rates in december. If we have strong Economic Growth and one rate cut that is going to be good for growth. Good for growth means wages go higher the fed isnt going to cut further into that. Thank you catherine. Good to see you, thanks. Coming up the dark side of the booming marijuana market a sneak peek into the impact of legal weed from the illegal market squawk box will be right back. Jimmys gotten used to his whole room smelling like sweaty odors. Yup, hes gone noseblind. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. This is his family, the world hes built, for 72 years. This is hals heart. Its been torn. Broken. And put back together. This is also hals heart. This is the cardiologist his brother recommended. And this is hals relief, knowing hes covered. This is hal. His heart and memory keeper, and its beating better than ever. 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What is really going inside these unlicensed dispen eries plagued by our own rules heres our investigation weed killers. Its a weekday afternoon in los angeles, the epicenter of cannabis in the United States. This busy dispensary is open for business. Hi. But if everything looks normal, it isnt this is, in fact, an unlicensed illegal dispensary part of the booming black market in california and around the country. Its what the cannabis industry says could be the biggest threat to sky high expected revenues. Case in point, california. Early projections of more than 1 billion in an yonual tax receipts are far from the 345 million collected. Thats in large part because the illegal market can undercut the costs of running licensed dispensaries its not hard to see how a team of cnbc producers equipped with hidden cameras visited ten illegal dispensaries throughout l. A most arent hard to find and theyre open day and night this is exactly why legal store owners like cameron walt, executive Vice President of project cannabis is outraged at how bold the black market has become were facing, especially in california and l. A. Specifically an elicit market thats extremely strong theyre outnumbered 31 elicit operator to legal operator so we have outrageous price compressi compression. How much easier do you think it is to operate as an illegal dispensary compared to what you go through easier. They have no permitting, no documentation, no legal process. So theyre breaking the law, threatening the health of consumers and threatening your business. Correct. And theyre doing this in plain sight. In plain sight. Our producers did not buy anything from the illegal dispensaries that we visited we did not respopd to ond to ou requests for comment by the way. More than 250 illegal ones in los angeles according to authorities. For a full story go to cnbc. Com but we talk about the weed market all the time and the total market and the rosy projections. Some of the assumption is that some of t