The president has completed meetings already with russias vladimir putin, the japanese Prime Minister, and indias modi but it is the oneonone with chinas xi jinping that has the potential to be the most marketmoving event. So it will be very critical for wall street, the u. S. Economy and the rest of the world. Bank of America Merrill lynch analyst says if a deal is struck, the s p could sail over the 3100 mark but if President Trump doesnt like the tone of talks and perhaps slaps new tariffs on more chinese goods and materials, the broader index could drop 5 . That would equal roughly 150 points from where we are right now. And there is latebreaking news from osaka. A trade deal could be on the verge of being struck, but its not between the u. S. And china. We will take you there for the up to the minute developments. China, a big topic during last nights democratic president ial debate. Hear what some of the 2020 candidates have to say about the way President Trump is dealing with the trade tensions. Weve got Silicon Valley legend t. J. Rodgers and craig allen here, exclusively, both of them, to game tonights epic showdown. On this final trading day of the week, the month, the quarter, yeah, forget what charles said, thin gains. Were holding on to ground here as financials and Energy Stocks lead the street higher but it is the small cap russell 2000 index that is about to pull off in this final hour a once a year trick. The russell charging ahead by 1. 25 . Less than an hour to the closing bell on this friday. Lets start the countdown. Liz we are just getting this breaking news. Former theranos Ceo Elizabeth Holmes has now been given a trial date. The trial date we are told has been set for august 4th of next year. Next year. 2020. This is video of her entering federal court in san jose just a few minutes ago for a pretrial hearing. Holmes is charged with felony conspiracy and fraud for allegedly misleading patients, doctors and investors who had plowed in millions and millions of dollars. You know, saying that her now defunct blood testing startup theranos could start for all kinds of, hundreds and hundreds of different kinds of diseases and problems, with one drop of blood. That turned out not to be true but of course, she got a lot of attention, known for her black turtlenecks a la steve jobs and a very deep voice. Holmes was once considered a genius for developing a blood test from one drop of blood. She became the youngest selfmade billionaire at the time. That of course was before the company collapsed when it was discovered her claims were untrue, unfounded. All right. You have to wait for another year and a couple of months to see that trial come to pass. Lets get to the markets here. Stocks got a boost early today, thanks to the banks, because they passed their annual stress test, so to speak. The Federal Reserve gave them the aokay to boost dividends and to boost their repurchase programs. Goldman sachs hiking its payout by nearly 50 . Jpmorgan upped its dividend by a dime. Weve got all the financials here moving higher. Look at jpmorgan chase, up 2. 25 . Nice move there. Todays session marks the end of a really shining first half of the year for stocks. The s p up 17 , the best year to date since 1997. Gold and oil not looking too shabby. West texas intermediate, thats what trades here, up 30 for the first half of the year. And gold, the precious metal up 10 , plus gold by the way is on course for its best month in three entire years. One initial Public Offering keeping it real. Luxury online reseller, the real real, jumping right now 42 . Today is its market debut. The stock opened at 28 a share on the nasdaq. Its at 28. 44 right now. But a 40 premium from its offering price. That gives it a valuation of 2. 5 billion. This is the company where people resell their clothing on the site and these are high end names like gucci and all of that. Doing very well right now. Lets fly to osaka, japan. We will bring the show right overseas. We are now call it seven and a half hours away from what could be this major marketmoving meeting between the u. S. And china at the g20. Item number one, President Donald Trump and xi jinping will work to steer trade talks between the worlds two biggest economies perhaps back on track. President trump said he is hoping for a productive meeting but that no promises have been made to ease tariffs on chinese goods. While china, china has already come out swinging. Earlier today, a peoples republic spokesperson said the u. S. Must abandon its quote, outdated cold war mindset. To Edward Lawrence on the ground in osaka. We understand you have major news about china. Making a trade deal, beating the u. S. To any kind of big trade deal announcement, but how could it, what is it, impact tonights meeting between trump and xi jinping . Reporter a lot of news coming out of this g20. We will get to that in just a second. I know you love headlines. The headline here in japan for the local newspaper is trump puts abe on back foot for g20. They are talking about there the Security Risk that the president talked about, saying basically the u. S. Is paying for japans security if theres another war and the japanese would basically watch it on television. Abe, the people in japan not happy about this comment. As far as china, what theyre hoping out of the meeting between President Trump and president xi jinping is for more talks. The chinese would like to see the u. S. Come with a more conciliatory tone. President donald trump optimistic that something, though, could be done. The question of whether or not we do something, i think we have a very good chance. Well see what happens. Ultimately something will happen and it will only be good. Good things happen. Reporter the chinese have been spending their time trying to gather support. Now, the chinese Prime Minister or president , president xi, met with japanese Prime Minister and signaled that those countries are close to finishing a trade deal. President xi also telling leaders here in a speech that he is willing to protect greater protections on intellectual property, lower tariffs and open chinas agriculture market. He seems to be trying to win over other countries, making his economy stronger while taking that hard line against the United States, trying to put the chinese in a good footing to take on the United States. Now, the meeting President Trump will tell us this meeting with President Trump will tell us if this trade dispute is going to be prolonged or something that can be finished in the near term. Its already on shaky ground, with the chinese president saying that President Trump had agreed to hold off on new tariffs as a precondition for the meeting between the two leaders but President Trump publicly pushing back on that. Reporter [ inaudible ]. No, i havent promised. Good question. No. Reporter once u. S. Trade representative wraps up a report thats being done, the final round of tariffs can be imposed by the president. The administration wants a trade deal with japan. I can tell you the u. S. Trade representative says they can have a deal within weeks, however, it seems the chinese are farther along with that deal with japan than the u. S. Is. The japan or japanese trade minister has said they have agreed to speed up those talks with the United States. Well see what happens. Liz . Liz edward, theres a lot of chess maneuvering over there. Glad youre watching as the chess master. We appreciate it. Lets sharpen the focus of this picture as to how the trade war is or is not depending on how you look at it, affecting the u. S. Economy. The Federal Reserves preferred inflation gauge came out today and it appears that for the month of may, it increased the annual change in the pce, the personal consumption expenditure, backing out food and energy held steady at 1. 6 meaning the core. Its not close enough to the feds target of 2 so you could call it benign. Then there is this. We have a measure of Business Conditions in chicago, called the chicago pmi. This one is not so good. It fell into contraction territory, dropping to 49. 7 this month. The level is 50 so anything below 50 indicates theres some concern about whether customers are rethinking purchases. Thats on top of data we got last week which showed a contraction in manufacturing in the midatlantic and new york regions. Philly fed was just about flat but the empire index in new york, contraction. So conflicting numbers here, some good, some not so bad. So much so that even dallas Federal Reserve president , federal Bank PresidentRobert Kaplan said we need more data guideposts before the fed makes a call on rate cuts. Heres what he told maria. Our next meeting is not until july 30th, end of july. Weve got at least a month. I want to, given the deterioration in the outlook has been very recent in the last four to eight weeks, i want to take the next three or four weeks, see what happens with trade, i want to look at the next jobs report. Liz while hes not a voting member, it is important to wonder with this widely watched fed meeting a month away, so it starts of course july 30th, do we have the full picture of whether we will get a rate cut . On the screen, we put together the sort of wheel of fortune type picture, guys. I want to bring in our floor show traders. Tim anderson, will we eventually get the e, a and t for what were expecting in july . Frments i think thats almost 100 certainty. Clearly the market has about 100 probability of 25 basis points into the late july meeting. The fed sent out james bullard, president of the st. Louis fed, earlier in the week to even tamp down the probability potentially of 50 basis point cut. I think a cut is pretty much in the cards. It will very likely be 25 basis points and the market also has priced in at least one more cut after that before the end of the year. Liz phil, i saw an article i believe on market watch where the writer said anybody who thinks it is a sure thing, including the fed funds futures which we just showed, 100 chance of a rate cut in this coming july, are out of their minds because nobody should really know. Theyre not listening to jay powell, the fed reserve chief, because he has said hes watching the data. But the data are not that bad. I listened to jay powell very very closely earlier in the week. He did everything but write down in black and white we are cutting rates in july. Liz okay. I absolutely agree. Whats that song, its too late to turn back now. They cant. They cant go back on it. Jay powell sent the signal to the market. If he does, it will be a sign of weakness, another sign that maybe he doesnt know what hes doing and hes already under a lot of pressure from the white house. Listen, the rate cut is in play right now and it should be. I mean, look at the pce today. Were not seeing the inflation get anywhere close to 2 . We have a lot of uncertainty right now about the u. S. china trade deal and we do have some data that seems to suggest that manufacturing is cutting back. I dont think you can read too much into one months data because there are a lot of question marks as to whether thats a permanent situation or shortterm situation. I think its shortterm. I think there is uncertainty, though, by these companies waiting to see how these things are going to play out. If you take that rate cut away from them, thats going to create a lot of turmoil in the market and jay powell does not want that. Liz yep. You know what, thats what were seeing in these regional purchasing managers indexes which is a fancy name for how these people are feeling about manufacturing and i want to bring in scott here. Scott, the first rate cut that happens when the u. S. Economy is not in recession leads 100 of the time, i was looking at this stat, to higher markets. So if you are a stock investor, you are cheering for this. Do you see any downside the a rate cut . Yeah, i do. I mean, yes, we have seen the numbers weaken but it hasnt weakened enough that we have to cut rates at this point in time. I get it, we are all in line to have this happen in july, but heres what i want to say to everybody. Be careful what you wish for. Because i can remember a time where i was talking about rate cuts with equity prices at alltime record highs. Thats a problem. So if weve got somethings not right. We have equities at alltime record highs, then at the same time we are talking about the economy thats faltering. So either the equities are trading politics and things are so great, i hope to get reelected and weve got other numbers that are telling us hey, its not that great. I say this. I think we are still improving but we are improving at a slower rate. If you are the coach your Basketball Team and improving at a slower rate, do you get rid of your starting five and totally start over . No. I think back to phil flynns idea, the song lyrics should be its too late to apologize, right. Take off that quarter point rate hike that he did in december, then stand pat and wait and see because ultimately, the chinese deal is going to dwarf any Interest Rate cut. Liz im thinking of gypsies, tramps and thieves. Tim, phil, scott, have a great friday. Thank you so very much. We do just want to guide you guys to look at the markets at this very moment. The s p is about 1 away from a record high. You know, your 401 k s, your 529s looking decent at the moment. Dow is up 16. End of an era at apple. With the closing bell ringing in 45 minutes, the tech titan among the dow 30 laggards in this final hour, after the Company Announced its legendary design chief, jony ive, is leaving to start his own independent design firm. Hes been there for years. Ive is widely credited with those innovative designs. Remember the original imac with the blue and the different colors . There it is. That one. He was the guy who put that together. He also put together the ipod, designed the ipad and the iphone. Hes considered one of the most important people at apple and was a close confidant of steve jobs. His new company will be called love from and will count apple as one of its top clients. But thats not apples only news. Up next, Silicon Valley legend t. J. Rodgers is here on apples decision to move production of its mac pro desktop computer from the u. S. To china . This smack in the middle of a trade war. The nevershy founder of Cypress Semiconductor here when countdown comes back. It all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Liz well, just as President Trump pushes u. S. Companies to pull operations out of china, apple now confirming its moving its mac pro computer manufacturing to none other than china. The iconic mac computer had been the only major apple device assembled here in the u. S. , austin, texas, but apple says while the machines will still be designed and engineered in california, it will ship final assembly from austin to china. Apple shares getting pared by 1. 25 but much of that has to do with what i just told you, chief design czar jony ive departing to start his own company. With the trump xi meeting less than seven and a half hours away right now, is apple making a mistake trusting china with its imac assembly . Our next guest is a Silicon Valley legend known for sfubl y successfully cracking the whip on u. S. Tech Companies Including one who got too cozy with china. We have t. J. Rodgers, cofounder of Cypress Semiconductor. Perfect person to talk to on this day. Not sure if apple wanted to let this news out today but the timing is awfully interesting. First, i dont know, you tell us, could xi say well, doesnt appear apples too concerned about doing business in china. My question to you is this. Does this give the chinese leader some type of advantage or not at all as he sits down with President Trump in just a few hours . Well, obviously with a company of apples stature, moving something to china, thats fodder for the news cycle. I will say that a personal computer doesnt have the same sort of intellectual property content that a phone does, and then the last point is that the president of apple, tim cook, you all ought to remember he ran manufacturing at apple before becoming president. Its not a dumb move. Its a calculated move thats been carefully thought out. Liz could this be behind it, that tim cook is so confident that President Trump will strike a deal, you know, the socalled deal maker in chief, that hes confident enough to move that production, at least the final Assembly Part of it, not the whole thing, to china . Apple is extremely sophisticated at dealing with other companies they engage in business with. I mean tough to deal with. Not unfair tough, but very sophisticated. I surmise, im saying what i think here, i dont know, that theyve got themselves a deal that hasnt got any hair on it. Liz really. Do you think that President Trump is go