We got a new stimulus plan and a rate cut from the ecb ahead of the feds meeting next week. Joining us in the next hour, were 130 points on the dow. The high of the session was up 170. Continuing a good week sector wise below that certainly different than the start of the week we had a big value rotation on monday and tuesday. A little bit yesterday giving it up a little bit today. Thats, i think, because he got that ecb news on the Monetary Policy which basically was in line but very accommodating for a long time. Welcome back the fbi reportedly opening an rates rallied because the u. S. Data investigation into myth real a the core cpi is the highest in capital. This session cofounded by peter thiel, thats pretty important. And i think that also the alleging financial misconduct. In a statement to cnbc. Initial claim story remains very strong as well i mean i think you have a the company sayings in a foiled rotation today but i think next plot by a selfserving week if we get less exemployee there is no allegations from any Government Agency or limited accommodating less dovish fed partners then well rally back into nevertheless our attorneys are in contact with government value. When you say less authorities to protect Portfolio Companies and partners to accommodating, less dovish fed against extorgs it behavior. Does that mean rate cut is not joining sus the reporter coming breaking the story, teddy sh i think 25 basis point. The commentary is that the data life from ricoh is not that bad and we have 30 i guess to recap. Thank you. The story itself, how we got here. Central bankers around the world sure, so u. S. Officials have that will be accommodate been talking with some people we have a lot to discuss. Close to the firm if recent lets focus first on the big months looking at what is going stories were watching on at myth real capital a the story mere at rick owe a lot of the ails are around financial misconduct u. S. Officials investigators, including the fbi are rooking into this firm, you know, this kayla ta is an early stage of the reporter for the white house investigation obviously we should say says theres absolutely no that lots of investigations interim deal with china and to be sure theres no deal at this dont actually end with indictment but right now they moment but sources who are close to the are looking into it. Sfo theyve been charged with talks tell me that theres a anything no, no charges filed so far detent happening so and what exactly does the behindthescenes. Theres a desire for misconduct relate to in your deescalation for u. S. And china. Article you sort of imply, for china they want licenses for huawei to do more business to suggesting takes fees when they u. S. And get access to the u. S. Shouldnt have been. Is that what you imply in the pork market with chinese hogs article. I dont want to go beyond what we report in the story. Inflicted with a breakout of the but there have been some african swine fever. Frustrated limited partners in they need u. S. Pork and could be the firm and some of the firm as making those purchases in the funds for a while who sort of coming weeks wondered how exactly the money on the u. S. Side they want to is being spent theyre asking questions avoid selfinflicted wound into the American Economy basically how this works for im told ambassador robert viewers is essentially, a lighthizer, the treasury secretary and kudlow also feel Venture Capital firm raises money and its meant to be spent keeping tariffs on 250 billion on investments but ultimately they can a in chinese goods is a general partner, investor can sustainable status quo going put the money where he or she into the election even as these thinks fit negotiations drag out on the tougher more structural issues and essentially the companys that are at the heart of why this trade war started in the second fund has had a slow pace first place but that getting back to that 250 billion level, of deployment by normal silicon so rolling back some tariffs valley standards that were put in place a couple meanwhile it takes in management of weeks ago and avoiding those fees. That could be the valuations are high a and dont want to prechristmas tariffs is key for waste it on bad investments. Those officials. Whether the midlevel talks to be fair there are some limited partners and other happening in a couple of weeks sources ive spoken with who say time or principle talks in they are thankful the firm has october can get there remains to be seen. A lot of new cycles to get been so parsimonious with through. A lot of things need to happen investments. Its certainly a rational but theres that desire and argument to defend some people feel one way, others thats whats moving the market today. Yeah. That tone definitely key to the another way. To that point, teddy, theres market today sound like youll be staying very busy for the foreseeable been a number of depart yurs future from mithril in the past couple thank you. The dow is on track for its months its a single selfserving seventh straight day of highs. Exemployee is their statement. Bob pisani has more. Is that your sense or are there reporter we are up but a different market today than a last few days. Whats back is the old momentum multiple contributors to. Im not commenting on the names. Source of the story. Paypal and mastercard and visa there were depart yurs youre are moving correct. Some tech names like the firm has a couple of leaders left including obviously mr. Semiconductors are back. Old consumer staple stocks they royan with his sister who is the were momentum. Chief Financial Officer we mention another person in the kimberlyclark is big. Story as well. Whats not moving is energy and tu but there have been a number of depart urts yurs and retail and industrial stocks ultimately in Silicon Valley you banks are kind of flat as well need people to spend the money they had a great run overall but and people in the chairs, right . But there have been there still the rotation still moving very well. Just want to highlight 3027 is have been i think at least six or seven depart yurs in recent the old intraday high for the years which is troubling to some s p 500. People who want to be people in were ten point away from that the chairs out there work working the circuit and making deals. Just to confirm what is the that was also at the end of big accusation they havent july we got an intraday s p chart. Invested sthir known fast enough. Thats what some limited what happened this morning partners believe we were all over the place they believe they are not vechg the money quickly enough, yes. Reporter were going up and down based on bond yields. Teddy, thank you for joining thats what move things. Us. Sure thing. Up next, your wall street last week we bottomed on bone look ahead, the key things every yields wednesday morning as yields started to lift the markets investor needs to watch heading lifted this morning we went up and down into a new tdirang day and the depending on economic numbers and some of the discussions final of the week when closing bell comes back going back and forth on trade. [upbeat action music] thats really the marginal mover in the market. Bob, thank you very much. Those bonds are also moving because of Central Bank Action and the ecb announced its latest moves. Steve liesman joins with us the breakdown. Reporter the European Central bank cutting rates and launching a new round of bondbuying which meant a tweet from the president blafgt the Federal Reserve. Saying visk risk is to the downe mario draghi said to cut rates by 10 basis point to minus 0. 5 . The president tweeted european pilot were going to be on the tarmac central bank acting quickly cuts for another 45 minutes or so. Rates ten basis points they are trying and succeeding depreciating the euro against a strong u. S. Dollar the u. S. Fed sits and sits tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch mario draghi was asked about the president s tweets tell him we need this merger. The answer very simple. in dutch we have a mandate. We pursue price stability and we dont target Exchange Rates. Its happening. just ok is not ok. Especially when it comes to your network. Period reporter not mentioned by at t is americas best Wireless Network the president u. S. Growth is according to americas biggest test. Stronger here than in europe which is thought to be weaker now with 5g evolution. And inflation rising here the first step to 5g. Falling in europe which rates more for your thing. Thats our thing. Suggest rates should be higher in the u. S whai tell clients, etfs can follow an index, the fed has authority over dollar policy. If the president want as weaker but which ones target your goals . Its not about quantity. Dollar he can order his treasury its about quality. Secretary the to intervene no trendy stuff. Steve, the president does i want etfs backed by research. Have a point to some extent is it built for the longterm . About the euro my reputation depends on it. Does he not . Flexshares etfs reporter yes are designed and managed around investor objectives. To the extent that mario draghi so you can advise with confidence. Wants to help the european before investing, consider the Funds Investment objectives, risks, charges and expenses. Economy by helping the export go to flexshares. Com for a prospectus containing this information. Sector and improving the terms read it carefully. Of trade, that would be something that would perhaps and now for their service to the community, help the europeans at our we present limu emu doug with this key to the city. Expense. The trouble is what else should [ applause ] draghi be doing if he has a problem with inflation its an honor to tell you that it suggests that his policy rate Liberty Mutual customizes your Car Insurance is too low, whereas if you look so you only pay for what you need. And now we need to get back to work. Today at our inflation rate as well a last weeks wage gains, [ applause and band playing ] it does not necessarily suggest the policy rate thats too, low only pay for what you need. Especially given the low Unemployment Rate in the united liberty. Liberty. Liberty. Liberty. States steve, there was one other part of that press conference which i just thought was extraordinary where mario draghi essentially said he needs to see fiscal stimulus to really see any kind of turn around in the economic numbers, but short of that theres no other option, sort of desperate ploy to try to for the politicians to give fiscal stimulus. He kind of admitted on its own well back lets get a check wont do enough. On smile direct club which went reporter i thought that was public today at the nasdaq after extraordinary. Draghi has been calling for pricing at 23 a share above the fiscal stimulus for a long time. Expect the range last night it reminded me of the days when finished its first trading day as a Public Company at 16. 67 bernanke and yellen said the central bank cant do it on its down 27. 5 making it the worst former on the first day of trading for a own. Socalled unicorn, a Company Fiscal policy has been type. By the way, hes not the trying valued at more than 1. 0 billion to go back to his 2 in the private market for the year. He said getting near 2 is the big day on tap tomorrow august retail sales and import goal youre right its an extraordinary message prices set to hit at 8 30 a. M. From the central bank they need fiscal help to make it happen. Keep an eye on clour fare as thank you very much very much stephanie your take whether wee first trade as a Public Company opinion tonight investors see a turnaround in the eurozone watching the 23rd democratic any time soon and if thats need for some kind of change in the president ial debate. 8 00 p. M. Eastern time on all momentum for the u. S. Economy. You need chain turn the big players on staj. Youre seeing china stabilize. Interesting to see how it plays that would be positive for the out back to the Broader Markets. United states Global Growth and we saw the sell off toward the even europe but i absolutely close. Agree, you need fiscal stimulus but weak or strong. Drifted lower into the close. And one of the reasons why rates just getting a bit tired with bottomed last week was there was the rally at this point. Rumors that germany was going to just having been up like i said announce some sort of stimulus on the fiscal side 6 since the middle of august. Whether or not they have to be tomorrows numbers could be kind of interesting in a rescission for two quarters i think there is a leaning in the direction of how retail in a row or not i dont know but sales have downside richk. Thats what got people excited that thats what you need. Merle lynch economists have a from the political side in model saying its a soft number. Europe is germany has the room we get Michigan Consumer to stimulate, the likes of italy sentiment last month that was the number among the household dont without breaking very long that took a plunge standing fiscal rules. I think well see if it was a germany is more important fleeting little flutter of worry in august or if it persisted. Anyway germany is more important what did you think of the ipo but its not transformational. Performances today we mentioned smile direct club lets move on to industrials but also 10 x again omices finished up 35 . Sign of a the take away. Discerning public market. We have a pause as the navy here the take away for that is its a choosey ipo market. Are on the floor and well theyre not embracing every new idea smile direct it goes down as one deserved applause. They will be here towards the of the poorest showing are for a close. Well keep an eye on them debut. Raised more than 1. 0 billion i throughout think. Now lets move that does not look good. But i think its a positive that morgan at the highlights of investors are basically being that industrials pretty selective about what they morgan on morgan. Buy and dont. You talked about europe the dow closed higher by 45 that was a theme emerging out of day one of this conference points that does for closing bell. Fast money begins right we had promised a number of now. Live fl from the nasdaq multinationals industrials market site overlook times today. Lets start with general square this is fast money im melissa low. Traders are tim seymour brian electric shares sold nearly 3 billion. Kelly and guy adami. Also chris ver own head of Technical Analysis at strategy i that happened yesterday. Suppose research partners. At the conference ge ceo larry tom lee on why the markets needs bitcoin to go up not down. Culp said ge is talk about he explains. Bringing it down to 3 walmart goes big to go to your china is a watch point for the company operationally home all you can order grocery deliver goes national. Particularly in health care. The desk chous down on that. Culp is keeping an eye on return bu plus blackstone up another 4 service of the 737 max and ge today. But makes the engine for that plane. The Aviation Unit could boost margins there. Stock down fractionally today. Another name in focus, honeywell which is also lower. We saw that stock move down 1 after the cfo warned about more softness in europe in particular germany but backing honeywells projections noting strength in aerospace. Two more, defense contractor raytheon and United Technologies those two companies saying that integration planning are under way for their merger equals and they are expecting to close in the first half of 2020, also saying, guys, that midoctober, october 11th is when they will have their shareholder votes on that merger which is getting a lot of attention from a variety of different folks and people in the industry including most recently president ial candidate and senator Elizabeth Warren there was an article about that earlier today. For the markets staying near session highs up 116 point on the dow. Joining us to discuss, erin brown. Markets markedly higher today despite we had a Major Central Bank cutting rates deep near to negative territory whats driving this continued spike in yields today . I think theres a couple of reasons. First its optimism that maybe were moving closer and closer to some type of trade agreement or at least a detent with china with respect to trade tensions secondarily whats driving this move if you unpack it is the move weve seen in break even inflation particularly today you havent seen a move dramatically higher but theres higher inflation and part of that is being driven by the cpi number that came out earlier today. Also by the accommodative policies through Central Banks where the market is expecting its going to have some impact to rising inflation one thing, you know, i would note and other speakers this morning have noeftd as well is that i think its a fools errand well get close to 2 inflation level but getting a little bit higher in terms of what the market is pricing in right now is what, i think, the market is getting a little bit excited about which is why youre seeing nominal yields rise going back to industrials for a moment between some of the comments we got today from Morgan Stanley conference, what weve heard from some of these companies in general more recently, do you still like names in the space . Are you still bullish on them . I guess what would be a warning sign to you yes i do still like industrials. A lot of it is valuation a lot of it is they lagged substantiately in the last two quarters i think expectations are already set in the stocks prices that earnings are coming down whether they are coming down 5 , 10 , some people think its more than that. The valuations are expecting more of that if you have good exposure in aerospace and defers i like that sector very much i like house i like construction even though its come down you still have a lot of these indicators, sentiment indicators like the dodge index above 50 and thats expansionary its down from 57. To 50. But these companies can put up some good numbers and they are very good on the margin side and i think they will continue a lot have already restructured and taken operation. I like some selfhelp stories.