Developments. Reporter reporters are staged just outside the oval office now ready to go into the oval whenever the president invites them in for his discussion obviously a much anticipated moment at the white house. Do they have a deal . Do they not have a deal . Do they have something in between that might be an interim step along the way to a deal we dont know as we stand here right now. A lot of rumors swirling around washington and wall street but the chinese delegation is here, theyre in the oval office now. We expect to see the president at some point we just dont know exactly what theyre going to stay Stephen Mnuchin came to the Briefing Room a short time ago, i asked him for an update on the talks and whether or not its possible we get to the end of the day today without an announcement of any developments at all we declined to answer the question he said the talks so far have been productive and that time of the day they were going in to brief the president but no specific indication from mnuchin that anything at all had been agreed to. Obviously with the president in the room, hes the decider, the person who can set up the agreement or knock it down well see what happens. What have we heard from the president today . I know most of the tweets on this topic were earlier in the day. But the word deal has appeared in some of those tweets . Reporter right the president s framing on that has been elusive what weve heard from the president so far is that the china deal is a good deal. Hes referred to it as a specific noun, but he hasnt said its been signed or agreed to so the phraseology, there have been a lot of. Marians looking over the phrase olg of the president s tweets today right now no specifics when this meeting ends, what happens next do we know is the entire delegation going home could they be staying over . Reporter we dont know what we think might happen, a likely thing, would be to given some sense of when the next series of talks would be that would be a legitimate thing to expect this afternoon we just dont know theyve been close to the vest throughout the day today kayla has been in the oval offense and wi office and will try to get some questions to the president. Stay close, well be back with you throughout the show we are high by 1. 8 on the do you today. For the week as a whole, about 1. 2, 1. 3 for the s p and the dow. Today erasing the losses weve seen for the week. Joining us is lindsay. Great to see you great to be here. What do you think the market is tying in here, the tariffs . This is very optimistic reaction that were seeing in the market today i think the best were going to get is the october 15th date to increase tariffs on 250 billion from 25 to 30 gets pushed off and maybe just maybe we get the december tariffs pushed out further as well, which would be a great positive for the market of course. I think todays lift is being supported by what were hearing from brexit, the Consumer Sentiment data is good so i think theres a lot out there to be happy about. Which led to a huge move in the tenure, 174 were trading at i think it also goes back to the fact that i think the ten year and 30 year, these notes got really they got the the yield got too low. So youre seeing the market correct here. We get more, potentially a rollback of the october 15th tariffs or the delay of the december, you think theres more room to run here i think the Market Action youre seeing today is telling us that. Look at the action youre seeing, the tech sector, the russell, youre seeing positive sentiment across the board in some of the places weve seen weakness. Thank you lindsay is going to stick with us the dow is on pace for the best performance on june. Some of the trade sensitive names on the move. Only 1. 5 on the new high new breakouts today. Retailers have been good, terrific the last several months a small group breaking out, walmart, new high there, ross stores, new high, tjx new high, target another new high. These have been outperformers along with costco in the retail space. Housing is doing excellent we hired the residential doing well, Equity Residential, home depot new high pulte new high sher winwilliams new high fastenal, core industrial, great guidance, goodnumbers. Good for those concerned that industrial would be low. Were starting on a good foot for the Earnings Base case there is a truce, no more tariffs if they eliminate tariffs in existence, that could lead to a rally going into the close up 466 points on the dow with 54 minutes left. Chip stocks also getting a boost. Lets get to josh lipton if chip stocks move on trade headlines and for good reason, china is a good end market for these companies. They get roughly 40 to 60 of their revenues in china. Now on track for its best year in a decade. The Trump Administration also reportedly planning to allow the sale of some supplies to huawei, that could be a big deal too analysts estimate that huawei spent 10 billion alone on Semiconductor Components mitch steve says if a trade deal gets done, the semisector could surge 10 . We have about 53 minutes left to go in todays trading session. Stocks are high erand theyve been that way most of the session here, sitting close to session highs for the dow, hi higher by 472 points weve seen a high of 500 points for the dow at one point during the session. Joining us is james lucer. Weve seen a nice couple days of a rally, largely on the trade headlines, potentially positive news around brexit and actions from the fed can we trust this rally . We dont know whats going on for sure in washington yet i think you need to wake me up when its over. It will be nice to see a planned break in the escalation or rather a break in planned escalation but theres nothing but substance coming out in the deal the brexit news is good. Consumer news is good. Nice to have positive indicators going into the market. But the market trades on china for no reason. The market moves irrationally, every dig tick drives stock trading even if theres nothing behind the noise. If we get confirmation lets say tariffs were removed, would it be rational for the markets to move higher and by how much i think so. If you saw tariffs come off, that would show that the u. S. Is confident in getting structural changes. The u. S. Wants to see changes in the way that china works, less predatory behavior directored against the u. S. The point of the tariffs is not to decouple the u. S. I think for stalling tariffs going in had effect october 15th, even fore stalling the december tariffs is good news. That means both sides want to back off and cool down it doesnt change the fundamental reality. Its the big risk on day but dont make big fundamental bets on the news. You have a lot of negotiation left to go with china. It seems like any given day we can pick our favorite data points, whether its for arguing for strength or weakening, and the Investor Survey is pessimistic but you dont think we should be too concerned, why not . Its usually a contrary indicator were seeing the bulliness is below where its been and the bearishness is above the historical average also. Youre seeing investors arent feeling too good about the market and usually thats a point you can enter the market. What about earning season next week . Are you confident weve seen expectations come down enough . Were looking for a decline of 4. 2 on Third Quarter earnings this is the thirds quarter in a row were going in thinking were going to see profits decline. I think youll see flat to positive growth in the Third Quarter. The question is whats the outlook. With management teams going into the reporting period not knowing whats going on with tariffs in october and december, i have to imagine theyre going to be somewhat pessimistic. James, thanks for joining us. Thank you we are all over todays massive market rally and the china trade meeting currently under way at the white house after the break well look at the markets range and whether todays surge is just the start of a push to new highs. Later chamber of Commerce ExecutiveMyron Brilliant has been critical of the trade development plans. And a check on our data tracker, an upside surprise with the tracker coming in at 96 versus estimates of 92 the best reads since july. Stay with us closing bell will be right back. Welcome back to closing bell. Weve seen a dramatic market move off new brexit headlines. Wolf hatz the latest whats going on . Sterling has surged 4 in 48 hours as hopes of a brexit deal have improved uk and european risk assets love the news. Especially the domestic focus and the irish market having seen hopes for uk Prime MinisterBoris Johnsons deal lower on monday after reports of a sour phone call with Angela Merkel we saw a turn around in sentiment yesterday following an upbeat between johnson and leo varamka, which was further cemented today at the eu level so what next well, the eu and the uk need to finalize a deal ahead of next weeks eu summit Boris Johnson needs his north ern irish partners and the erg to back him until then and then crucially back him in a parliamentary vote on the deal he could probably survive losing a handful of voters in those groups but not have he lost support of the entire group. The move in sterling to a three month high shows the market is hopeful and theres no comments to destroy the hope today. Though were a long way from confirming it. There are several key dates coming up, what is the likelihood theyll get the progress on any or all of those . I think there are lots of hurdles so you have to expect theres the chance of slippage market three month high. I spoke to a number of strategists today all say if they saw a deal go through we jump to above 135. 126 youre seeing the jump from the lows a week ago 120, were not fully there to be pricing in a deal but its dramatically improved in the course of this week. Pretty major moves in the market. Royal bank of scotland up 10 . Youve seen some big moves so it shows the assets that could go up. We have about 44 minutes left of trade lets send it to mike san tonally. He has todays market dash board. We have a pennant formation thats a hopeful interpretation of the index charts. Playing hurt, thats what one Large Health Care company is doing now, people say maybe thats going to turn for the better in need of relief, one area of the Capital Markets that maybe is looking wobbly. Well look there and then boos from the crowd what does president ial popularity or unpopularity have to do historically with how the stock market does. Looking at a two year chart of the s p 500. Making a nice move today, back to a three week high whats interesting is what has come before. Im not a technician, i dont pretend to be and Something Like that is known as a triangle formation. You have higher lows along this period even though youre not making a new high. If you can break above this down trend level people are going to take that as a positive thing. The big message is, the market has taken on uncertainty, anxious news items, concern about recession. A lot of things that were excuses that could have pulled back more and so far in august, september, october has not done so the s p 500 against the total bond market index, all bonds s p 500 in white you see this big outperformance over very sections of the year by bonds now a rapid coming together of the two. That obviously would mean more of a risk on tone. Were vernging in that direction that means bond prices are falling. To your first chart, if we break out of that particular down trend weve seen, does that take us to new highs all together or just out of the still within the 18month trading range that weve seen . The new highs are so close. Its less than 2 away you would think that would probably be the impetus for a run at those highs then its a matter of deciding exactly what how much energy is behind it keep in mind, go back 20 months and youve had brief periods you got to the new high levels and it pulled back so you have a faint uptrend but one that has not gone off to the races once we touch new highs. We have to see if that pattern changes or not. What do you make of mikes analysis of the technicals, weve been in such a tight trading range. Its important to look at the technicals im not a technician either but its nice to know what theyre thinking seeing, because history does sometimes repeat itself what was interesting to me was the chart of the six month bond and the stock Market Performance, theyve performed the same because of the uncertainty, theres something for everybody in the market. The bond market, theyre benefitting from the low yields around the world but the stock market is also benefitting from the low yields here and around the world, too so its a little more volatile its the paula abdul song two steps forward, three steps back. The dow is higher by 477 points. The s p higher by almost 51. Were still awaiting headlines from the meeting between President Trump and chinas vice premier. Well bring you the latest ahead. Roku outperforming a fresh upgrade from rbc what that analyst says to buy after a 300 run this year. The uaw strike against gm nearing the one month mark but are the two sides closer to a deal well discuss the latest updates anthd e costs to gm and its suppliers. Cnbc unveiling the Financial Adviser 100 list were heavy in technology and we also own a fair amount of the financials. I have a lot of High Net Worth clients. Theyre comfortable having cash reserves i say our short Term Investments are high. We continue to plan accordingly as if if were heading into a recession welcome back to the closing bell. Its time to get the word on the street Morgan Stanley out with retail, calling it peak volumes, and prices that could lead to a structural decline they remain under wait on gap, maisys, kohls apparently in america people buy 65 pieces of clothes per annum. Yes i dont buy 65. I dont either. A pair of dueling notes on square upgrading the stock maintaining a 77 price tag. However initiating square as reduce or the firms sell equivalent with a 49 price target optimistic on increased reinvestment nomura says the stock is overvalued. Roku going from 1. 57 to 1. 05 a share. Roku, the stock is up 4. 5 joining us now the analyst behind the call. Thank you for joining us hello you had a buy, went back down to neutral and now youre back to buy talk us through those steps, why you downgraded and why youre back up to buy. Mostly valuation calls both of these ways. This was a rocketship in the first half of the year got adds high as 170 and pulled back to 100, thats an enormous amount of volatility. But you see that sometimes we liked the story fundamentally for some time and theres a great theme here were entering streaming wars. We know that when we think about the disney launch and the apple launch and time warner launch, et cetera. I like netflix, the stocks hasnt worked well, but i like the stock. Roku theyre going to get advertising revenue as these streaming platforms try to market themselves. If you sign up for a streaming network via roku, roku gets a revenue share for that and anything that leads from the diversification away from the big three is positive for roku we like the story fundamentally we had a pull back we upgrade. Talk us about the evaluation compared to netflix which has pulled back because of valuation fears. Net netflix pulled because of the streaming war. Its the streaming wars that caused people to be nervous about netflix. And they missed sub numbers. We think that created a compelling buying opportunity. Roku is a different matter we havent had any misses here we think numbers are reasonably set, a modest upside but again this is one of the best derivatives you can get you want to be the switzerland during the streaming wars. They are switzerland and the wars are occurring around them they should be paid by a lot of these arms dealers if i didnt ruin the analogy, thats what i meant to say. We understand what you were saying what do you make of roku here . Its a valuation call they have great things going for them, theyre the switzerland like mark said, this is where you want to be when you are in the streaming wars theyre taking share, the revenue is growing hand over fist its an amazing company. I know everyone mentions and youve alluded to it, they are agnostic to which is the most successful but they have the roku channel, is that a thing that you dont want to see be too successful and grow too strongly because then the rivals might think we dont want our apps and content available on rokus platform any more. Yeah, i guess i havent thought about it that way. You reminded me, though, theres one other new element to the story, which is roku has been an entirely north american, u. S. Phenomenon to date theyve announced theyre going to launch into europe. I dont see any reason why they cant be successful as a device vender into smart tvs in europe and the rest of the world but also as a streaming platform so theres new market play here that should help numbers, not any time soon, but next year in terms of the roku channel to date thats been nothing but goodness for the story because that revenue theres no revenue share, no ad revenue share they have to give off of that so its been a nice tailwind to the story. I see your point but i dont think thats a real concern unless that were Something Like 50 of the streaming via roku and i dont think that will happen. Shares of roku rose more than 5 30 minutes to go and the three things driving the risk for action hope for progress on a trade deal with china as we wait for the president to reveal the details from the white house and brexit hope. And sentiment over consumer data it is time for a cnbc news update sue has it for us. Heres whats happening at this hour. U. S. Troops in syria have returned to the area they vacated just days ago to monitor combat operations. Five armored u. S. Vehicles conducted a patrol Bernie Sanders says he believes President Trump should be impeached he made that comment to reporters this afternoon, adding that Senate Majority leader Mi