Cutting the cord for the Cable Companies. Well hear his surprising report as power lunch begins right now. All right, let less give you a check on the markets they are up by more than 11 for the dow. 289 points the dow up 300 points. At one point as the bond market stabilizes still though on a track, the dow that is for its third week in the red, nasdaq up a buck and three quarters all right, thanks we are looking to close out a wild week on wall street with 100 point swings in every direction. The dow still down about 3 on the week the big culprit, yields. Check out the ten year fall tog aing to a three year low. For more on whats been driving the action, lets go to dom chu at the New York Stock Exchange so kelly, we have a bit of a reversal over the past of the last couple of days and whats leading the charge with the dow, the s p 500 and nasdaq, right now, the dow is underperforming there. The s p 500 is up about 43 points stays here at session highs for now and the tech heavier north america dak if you will, getting more because theres a return by some traders to risk an sippeape the best performers, you mentioned the yield kcurve. As rates start to stabilize and it goes up even more positive, the financials, banks are starting to get more recovery in place. Also watch large and megacap tonl stocks. Those are getting a bit of a bid in this voirenvironment as well. You might suspect that ewe it will tillties, defensive sectors are the ones leading at least maybe i shouldnt say declining. Underperforming on a day like today. Those are things to watch and one other place were going to take a close eye on is whats happening with the Energy Market because crude oil prices have been b moving high er alongside the rest of the market, but not playing nearly as much as an upside as the rest of the eckqut markets are. The reason why is because opec has trimmed its demand forecast for Global Oil Demand as such, Oil Price Gains have been cappeded i want to call your attention to post 8 thats where chevron and exxon both trade exxon, somewhat par tticipating up by one and a quarter percent. Those oil companies, both members of the Dow Jones Industrial average, so well watch to see if these trades start to play catch up a little bit with the rest of the Risk Appetite but for now, back to you guys thank you dom chu. President tru speaking with three Bank Executives this week about the stock markets big drop. Kayla has the details. The ceos of three of the biggest u. S. Banks, bank of america, citigroup and jpmorgan, were all in washington for a previously scheduled meeting on regulatory issues. When the treasury secretary ushered the group into a room and said the president would like to speak with you about the economy. What followed according to two people familiar with the call was an impromptu roughly 20 minute discussion about the market and big picture issues facing the economy the ceos told President Trump the u. S. Consumer remains strong, but trade issues are hurting Business Outlook and Capital Investment one source says the president was receptive, but that quote he likes the tariffs. The group discussed the global flash points everything from hong kong to brexit to mexico and said those were the negatives on the board while the u. S. Was still a positive story and finally, the Federal Reserve. The executives told the president the quarter point rate cut isnt enough to spur capital flows and wont really be notice bable to every day americans that led the president to his familiar criticism of jay powell and something im told none of the executives on the call really wants to take the bait on thanks very much. With the news about bank execs meeting with the president with recession fears cooling off at least for this day, how should investors navigate the volatile market . Mark, steven, Portfolio Manager with fed rated cough man funds and ron insanaa. Welcome to all mark, ron, im going to begin with you about the tiresome subject of yield curve if i might again we havent talked enough about it all week long is is there an argument that the signal the yield curve ever briefly flashed this week is is different this time because the cause of the yield curve inversion is slightly different this time . Than in prior occasions. Do i have enough time to take that question apart. No, youre shaking your head i dont know. So the actual, the yield curve the Federal Reserve looks at which is ten years to three months, began its inversion if late march and has been inverted since then a longer term signal of impending recession. As to the reasons of this most cent inversion two year versusthe ten. Argentina blew up this week. There was r more selling of argentine bonds that prompted some Mutual Fund Managers to buy u. S. Treasuries. Yields are negative so youre seeing forced buying of u. S. Treasuries not necessarily a sign that investors are panicked about the pace of growth expect that the Global Economy is slowing down in china, italy, germany, u. Kchl argentina. Germany absolutely. Worth mentioning twice. Biggest economy in europe so i think you ignore it at your own peril. Everyone says this time its different and all recessions weve seen since 1967 have been b proceeded by an inversion of the yield curve. Mark, let me turn to you and get your reaction to what ron said and more pointedly, tell us how youre positioning your portfolios in view of whats been going on in the economy globally and in the markets over the past couple of weeks sure. Its a relief to rons comments. I agree its always dangerous to say its different, but theres some static in this signal and it has everything to do with the fact theres nearly 16 trillion of sovereign debt that is is yielding less than nothing at the moment and the gravitational pull and that pool of bonds thats growing is weighing on the tenyear bond by way of the fact that today it sports a negative 1 term premium, which is unprecedented. Were we to normalize the premium u, that would take our ten year yield to over three. Now i dont suggest we should be at three but anything above a two would at least flatten that if not resteepen it as a consequence, im not taking my marching orders from the aversion that occurred this week its u. S. Over nonu. S. Large cap over small cap small ball from a sector perspective. We want some offense with areas like consumer facing industries. Home billers, for instance, in addition to that, the hyper markets, but as well, some of the defensive sectors like staples zwrous keep an even keel with record to this volatility, which we dont expect to receive anytime soon i was going ask whos your steph curry, but steven, ill ask you. You also have some particular picks here you see plenty of opportunity in this environment youre not worried about the you know sort of big, scary csignal were talking about . Were very worried about those big, scary signals and look, you can debate Interest Rates all day long, but just listen to the deere Conference Call and hear the effects the trade war is having on them or just look at every macro indicator out there. Whether rail car, everything is slowing on the year over year basis after one of the most historic inflections of growth where you had nine quarters in a row of accelerating gdp growth on a year over year basis. Thats behind us were in the hangover phase of the party. For 30 years, weve been looking for enduring Growth Stocks companies that create their own momentum no matter whats going on because frankly hoping for a trade deal is not an investment thesis an we look companys ideas that can grow in any environment. So its really stock picking and you have several stocks that you like none of which frankly i have ever heard of. They are Smaller Company stocks, which doesnt mean theyre bad and your fund is up 25 this year or there abouts and why dont you just pick one thats a stand out for you. Sure, lets look at inspire ticker insp. This is a company thats noncyclical. Theyre a med Device Company focused on sleep apnea they have the only approved device that goes inside your body to help cure it right now, the Current Technology is a 40yearold pressurized mask and hose which is not really great to sleep with and heres something i dont use it anymore because you cant sleep. Its worse than having sleep apn apnea. There you go, ron but this is a company we think can grow for a long time and its really what we focus on at fed rated kaufman fund theres always opportunities out there for innovative small cap companies, but if youre hoping for some macro acceleration right now, i think youve got to wrong trade. Theres one interesting thing about this i think people have to think about when trying to position around it. Going into the 07, 08 crisis terrible, generational event still hanging over us today. Where is the u. S. Ten year we were probably upwards of 4 , maybe higher if we are going into a downturn, thats not as severe with our bond yields already at 1. 6 , how are people supposed to position for that do we just assume things keep going ever lower in other words, are we just saying we assume this event is is going to happen its going the play out a certain way, but yields are way below where they were before one of the worst Global Crisis weve ever seen. This is the concern the feds run out of u bullets as people like to say. If youre going in quarter point increments, they have eight cuts to zero or four to zero if they go 50 points and look, with rates this low, assuming you could get congress in the white house on the same page, you have some latitude for fiscal stimulus because it wouldnt cost nearly as much from an Interest Rate perspective. But you could do more. Now what happens here is the big question cowe do we remain an oasis in an area of trouble or are we going to catch the contagion around the world and force the fed and fiscal policymakers into doing something more we have some latitude. We are not out of bullets. The fed could go negative if themted t they wanted to the its a tax on depositors presumably forces money back into the system. No, no im not advocating for this. But thats one of the possibilities it seems extreme because were not in crisis. Back to quantitative ease in, too. There may be a country that will go into crisis. You dont know if its italy, were not in crisis. Were stronger, but rates are our tenyear is starting at 1 1. 6 tha all im saying mark well give you the final word on this what will you say to people who want bonds well i think bonds should play a role in our clients portfolio in proportion to the risk bugts just because yields are low doesnt mean we cant ask a governor on the volatility on a portfolio thats going to incur by way of all these cross currents were experiencing, not the least of which, trade. I think they can still be a part of it. I would be reluctant to chase longer duration securities because if we get some kind of reflation somewhere in the u. S. Or elsewhere, the duration f these instruments with such low yields are going to create a decline in bond prices not unlike you would expect to experience in the eck quity mart thank you very much coming up, two stocks making industrial sized rebounds today. First General Electric the street reaction to those bombshell accusations that hit the stock yesterday and deere took a big hit after cutting its outlook again, but its now higher lteou whats driving these turn arounds power lunch is is cocoming rit back two big industrializedbacks today. This after ge suffered the biggest drop its had since april of 2008 when madoff whistleblower just yesterday called the company a bigger fraud than enron and deere is up near ly 7 despite an ugly quarter. Here to discuss these topics are Morgan Brennan and anesh gupta ges ceo buying more shares yesterday which combined with his big purchase u tuesday nearly doubling his stake in ge. That plus a number of analysts and investors including citron batting down conflicts of interest, conclusions, also the rhetoric used in the report used yesterday. All thats helping to support shares today William Blair arguing it has adequate resources citi perhaps capturing it the best quote allegations have holes, but do highlight ongoing concerns we think the market left ges march insurance teaching with a bert understa better understanding of the companys liability. But also weary of the potential for another shoe to drop heres how leslie sideman responded yesterday. When i saw the report this morning and had a chance to just flip through it, by initial reaction was that i thought it was full of misleading, inaccurate and inflammatory statements so culp calling that report quote market manipulation as well but i would just caution gas price, this is a company been very hard hit. A lot of skeletons that have come out of the closet over the last couple of years its in the midst of an attempted turn around right now. I dont think any of this is is to say there arent accounting issues here. The sec and doj are both investigating some of f the practices at ge, but the claims that this could be a a company that could go into bankruptcy, the allegations of fraud, those are in question. The ris b ks around ge, is that priced in or not thats what investors are trying to wrap their heads around now to discuss ge and deeres earnings miss. That company has been caught in the trade war, but the shares are rebounding if you dont mind, just begin with General Electric. What are the main things you think investors need to be focused on there in terms of next questions and next steps . Thanks, kelly General Electric is outside of our coverage i focus primarily on heavy machinery stocks so agriculture, construction, mining and trucks. More so like caterpillar and john deere on deere, ask you b about their latest Earnings Report so basically, there was a lot of negative macro issues affecting the company. The poor crop season, the flooding, soybean sales coming way down from previous levels. Why are the shares rebounding today . I think youre seeing a little optimism around corn and soybeans both are up along with the stock market and you know perhaps there were some positioning issues into the quarter with people more negatively inclined. Maybe the results werent as bad even though sales mismissed, earnings missed. From our perspective t the reward is is neutral looking at the trade war and the larger than expected crop which we found from the usda last week off set by potential that that crop is is actually overstated in size and perhaps you could get prices of corn moving back up as we look into the later part of the year and were in an environment where the u. S. And brazilian tractor markets are relatively depressed related to history would you rather deere or cat pill lear. Guessing youre going to see deere in part because there are more pressure points for caterpillar. If Global Economy is slowing, they would be more exposed to that kind of business than i would guess deere not to mention the china trade issues yeah, thats 100 right, tyler. We think cat is in negative earnings revision cycle up to this point we have a slow rating on the stock and you know you could kind of point to price to earnings and saying maybe the stocks cheap here, but what happens when you get into these negative cycles is that earnings are tough to forecast so you end up needing to look at the price to sales multiple. And that would kind of be somewhere around a 0. 6 to 0. 7 times, which would imply about 30 lower from here. We dont know how quickly things are going to deteriorate so were not that negative yet. The overwhelming risks are to the downside we dont see drivers of demand improvement outside of mining. Its heavily reliant on global Macro Holding up on the side of deere, which we would be more inclined to be president obaositive on, 30 ofe from construction. 70 from agriculture and turf. Within agriculture and turf, you have the north american, brazilian markets, we think theres room to be more positive and if we got a rebound in corn and soybeans based on potential for a trade deal or a small rer than forecast crop, we would be inclined to get more positive. Well see if that comes around the pike. Thanks very much joining us to talk deere and caterpillar. Thank you there was a retail route on wall street this week even with the days rebound. E the tf tracking that group is still down 4 . A busy week of retail reports coming out take a look. Home depot, kohls, target, gap, theyll all report and those and many more. Can the earnings reverse down trend . Well talk retail after this by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Whlets do it. . Come on. This summer, add a new member to the family. Hurry in and lease the glc 300 suv for just 419 a month with credit toward your first months payment at the mercedesbenz summer event. Going on now. Welcome back retail gearing up for a bigger week theyre all among the retailers set to report results after macys quarterly win and walmarts, who will be the big winner next week craig johnsonand boar ris are your trading nation team gr craig . Well, i brought two charts in today. Look like were going to have more close outsales ahead. If you look at this etf, its trailed by 20 i got support that comes in, support needs to hold. If not sh , you could be comingk and retesting th inthe lows in 7 one stock thats standing out is tj max its tried to break out three times failed and at this point in time, 47 is the key level to hold if it doesnt hold, next support is going to come in around 45. So thats about 12 lower than where we are now doesnt look like a great risk reward se