It was up 517 point early in the session. Im melissa francis. Connell he always say happy friday. Im connell mcshane. Both s p 500 and dow ending up more than 1 . Look at apple. It is in record territory for the first time this year, 236. 21. President trumps meeting going on with chinas vice premier at oval office. Once that wraps, well bring any comment from that. Maybe additional comment from the president as he leaves the white house. Were all over it. Fox Business Team coverage. Deirdre bolton at the white house. Grady trimble on the ground in chicago. Deirdre, youre where all the action is. Reporter exciting here. Tons of correspondent running in and out as you can imagine. I want to highlight the question of vocabularily. We heard President Trump talk about a substantial phase one deal. Notice the world deal. A friend of mine who speaks mandarin, that the Chinese Press is transpiring what is transpiring here, as a pause, a pause in the trade war. Not necessarily a deal. So just a difference perhaps of vocabularily. One worth pointing out all the same. From what we understand, from phase one, which will be written in the next three to five weeks. So this is not immediate by any stretch of the imagination. But the two sides, china and the u. S. , reaching some sort of understanding on ip, on Financial Services and on the purchase of between 40 and 50 billion from china of u. S. Agricultural products. We also heard from the treasury secretary Steve Mnuchin who was also in the oval office at this debriefing. Saying that he has reached between the u. S. And china an agreement on Foreign Exchange and on currency and Financial Services, which he says they are almost in complete agreement right this second right now. So we did talk a little bit earlier about you who the fact that the chinese agencies have put out this word that if a u. S. Financial Company Wants to open on the mainland, as of january 1st, 2020, that American Company will not be forced to partner in sort of jv, joint venture with a local chinese company. That is as we know, how the i. P. Theft happened. So the fact that the chinese acknowledged that as well is seen as huge progress. Quick note here of course. As we have been discussing, the tariffs. That were scheduled to go into place on tuesday. This coming tuesday will not happen. So they stay at the 25 level. They do not go up to the 30 level. But the december 15th tariffs at 160 billion worth of tariffs on chinese goods still up in the air according to u. S. Trade rep Robert Lighthizer. Back to you guys in the studio. Melissa thank you for that. The dow ending up for the third day in a row. We lost a lot of ground into the close there, gerri. That was a wild ride. What happened . Reporter that was a wild ride. Let me tell you all day long traders down here have been telling me, gerri, doesnt matter what kind of deal we get, we dont care, we want a piece of paper. What they got the president said it was a deal. The chinese said its a pause in the trade war. What does that mean . I think you see that replayed in the dows 319 point close here. We came back about 180 point from the highs of the day. I have to tell you though, we do have dow winners. Dow, caterpillar, 3m, industrial materials, energy, those are the three sectors trading higher. That also the tale of the tape which is that it was about trade today. So it could be this was buy on the rumor. So you saw the dow trade as high as nearly 500 points up. Then sell on the news. That could be what is going on here. But i do think this is a reassessment what we really get . Will it be really meaningful . People are pouring through the comments and numbers, trying to get a sense of this. All day long people were fascinated, riveted by the headlines. At one point the main chinese trade rep, got up, left the table for five minutes. The s p five hupp 500 sold off 15 points. I think well have more follow through as wees specially start to think about, this is plan one. What comes next . Two, three, as we push on into this, how long will it take . Well start thinking about those kind of issues. Melissa, back to you. Gerri, thank you for that. Connell lets bring it all to the market panel. Ken oakley, and were also joined by deon rabowen. Almost selling on news is a predictable market reaction. Up 500, down to 320 i dont know if we read too much into that. That is what happened into the close. The Bigger Picture the president says we have a substantial phase one deal. The chinese apparently are saying, we have a pause in the trade war. What is your takeaway. What do we know so far . I dont know a whole lot so far, were waiting to hear more. The big question what does the phase one trade deal mean. We know the october 15th tariffs will be pulled back. Really what the market want is all the tariffs pulled back. Weve seen the damage done from the trade war, from the tariffs, from both sides. The market want to see those come off. Trade getting back to where it was. We have got that. 60 billion from the fed. Got stock buybacks up 27 from last year. Market is getting everything it wants. The only thing it really want to see some progress, some movement on getting all the tariffs taken off. We can go to the moon. Connell could and back, right . Ted, let me try to bring you into the room. Deion said were no inside the room. We arent. Blake burman is, our reporter. We saw Deirdre Bolton on the north lawn. Blake is inside of the room. I know he just told us he asked a question in the room. I think its a very good question. I think its of the president. It may have been of Steve Mnuchin. He said, mr. President , is this what you envisioned what you talked about what had happened . Well see playback of this i would think in a little while but the president said to blake. You know what, it is phase one . China opened up Financial Services. That is a tremendous thing. Then he went on to say he got ip. A lot of agreement on that. More of that will be in phase two. I get the put the question, ted, from what you know, is this what you envisioned as a face one . Well i think, connell what happens is it becomes somewhat after bandaid as far as i can see. I think heavier part will have to be later on. The administration they needed good news. They got news from this for sure. But i dont know. I think the jury is out on that. If you looked at volume, it was only half what it normally is. It wasnt what it quite looked like it was. Connell thats fair deion, my question whether this fades one, whatever you want to call it or pause, whether this speeds up the timetable looking at a more comprehensive deal, whether it slows down and both sides can use this to buy themselves some time and push things out past the election . How do you rethat timetable. You saw buy the rumor sell the news, this could have been everything you wanted. Phase one deal means all the tariffs will come out or the recent three rounds of tariff will come off. Got a deal on ip. There is a lot thrown around the networks. People were talking about this and that. Once we found out this will not be in there, that will not be this could be. You saw a selloff, the market want some kind of deal. It wants the tariffs to stop being accelerated. The back and forth to cool down. Looks like we got that. This is definitely good news. Hard to find bad news this with especially the announcement from the fed, 60 billion a month until we decide to stop. Melissa deon i want to make sure the audience understands were hearing from what going on inside the room and hear the intonation and when we play the tape, and get it in. That is different way people take down notes in a room, versus what everybody is talking about versus how things are actually said. That could be a different impression. We saw some conflicting things coming out. How much did you read into the fact we had a head fake where all the reports were, the chinese delegation is leaving. They cut the trip short. Theyre leaving, getting on the plane. No, wait, no, theyre still here . Made it feel like both sides as much as theyre trying to protest really want to get something done. Do you agree with that or no . Absolutely. This is a trade deal both sides need to get done. Youve seen the numbers. China seeing numbers in the u. S. Manufacture something taking a dive. Manufacture something moving in a lower direction for the manufacturing numbers. Good reason for both sides to get something done. Especially with President Trump impeachment scandal over his head or the impeachment inquiry. Hong kong situation and both sides want to get this done and move on to other issues. This is weighing on the economy and weighing heavily. I heard economists and Fund Managers saying this is good on the neck of the economy. If you get the boot off. We can sky and take off. We can get is investment and capex going. Melissa yeah. People want this taken care of one way or another. I dont think the market really cares what kind of a deal. They want some deal to get the tariffs taken off. Melissa ted, wouldnt you say this is the number one issue for markets, for the economy . There are some things going on right now. Whether its impeachment. Whether its fighting. Or even the election or near term. This is really what matters. Do you agree with that . I do agree with it. There is some sort of a myopic Magnetic Attraction to this whole thing. They zero in every day on it. Theyre either really disappointed or really excited. And every time they think something is happening, it has been a long time since one thing like youre talking about had a big impact daily on the marketplace. I think they keep looking at it. Some days are exciting like today. You never know monday, they could go right back. Melissa this is the driver without question . Yeah. Melissa deon, do you agree with that . There are huge things going on. Turkeys move into syria, reaction to that, different political stories it is almost too much to take. On this channel we come back to it every day. This moves the markets the most. Do you agree with that . Absolutely. There is no question. The question whether it is a good thing or a bad thing. I wrote this week in the axios markets letter, from a economist at a Deutsche Bank securities, if you look at fundamentals, market is completely divorced from the fundamentals. Growth in the u. S. Is trending down. Expectations in the third and Fourth Quarter is trending down but the stock market keeps going up. We hope if we get some kind of a deal, that will take the boot off the leg of the economy and get that ceo confidence back and that will allow the market to take off. This definitely is the big story in the market. Whether that is fundamentally sound or not doesnt really matter. That is driving purchases because stock investors want it to happen. Melissa ted, deon, thank you for that. Connell u. S. China Business Council senior government director joins us with her perspective on all of this. You heard from ted and dion, at least in part what theyre saying, your perspective couched from the u. S. Side, phase one of a china deal . I think ted and dion offered a lot of good analysis. From our members perspective, this is a positive step forward. It is a huge relieve to a lot of people to have tariffs pending next week going up to 30 , to have those taken off the table for the timebeing. And significant purchases for farmers that is a huge relief for farmers. They have been really hurting. Consumers are certainly going to be a lot happer about this. Businesses are a lot happier. What is doesnt do, based on details we dont have yet it, doesnt fully relief uncertainty. You will still see Companies Holding back on future investments an sort of waiting to see what happens before they move forward with planning. That affects employment. So i hope that at the next big Inflection Point in midnovember, that the president s will meet on the sidelines of apec and truly, be able to cement more progress. Connell that big meeting in chile will be a chance for two principals, xi xinping and donald trump a chance to get together facetoface. Ed, details as we know it. You mentioned no tariffs next week is a big deal. No decision made from what Robert Lighthizer apparently said in the oval office on the detariffs. The president made comments. We should have play back in a few minutes. The other thing, the meeting between liu he. The president was asked about huawei. What do you make about putting issue like that off . He was asked about huawei being blacklisted. He said well talk about that one later. What do you make of the way that is being handled . Just because he hasnt announced anything about huawei doesnt mean there hasnt been some sort of progress between u. S. And china on huawei. It just means it it is being dealt with separate from trade negotiations. This is appropriate. This is supposed to be separate from National Security. There are a lot of people on the hill dont want to see any perception of a negotiation where National Security is being compromised for the sake of a trade deal. Connell let me go back to the first point on uncertainty, you said that businesses even what we learned here. Is blake ready, guys at the white house . Melissa yes he is. Connell blake burman back on camera. Take it away. Reporter youre about to hear from the president momentarily. Let me set the scene from the ovals office. He described a trade deal from the United States and china which will be broken up in phases. A phase one that still needs to be as he put it papered. Needs to be written down which he says could take place three, four, five weeks, which that whole process getting it on paper. Then there will be a a phase two after that. Which would have to be negotiated. The president also says potentially they might need a phase three. From what the president outlined and we didnt get very many specifics, what he outlined seems like a comprehensive deal at least from some of the big picture items. The president saying that Financial Services is going to be a big winner and part of phase one. That there will be massive amounts of ag buys to the tune what he projected could be 40 to 50 billion. He said that i. P. Theft will be covered as well. Some of that will be in phase one. Some of that will be in phase two. Forced transfer technology as well. Some of that in phase one. Some of that in phase two. The president seems to suggest in this big winners would be ag and Financials Services with that market being broken up. Foreign and Currency Exchange is in the deal as well the president said. I asked him, well, how can you assure the American People that what you have agreed to will eventually be implemented as there still needs to be a month or so to actually get this thing quoteunquote papered . The president said to me think it is a possibility they dont end up getting to the finish line with it but not his expectation at this time. You will hear towards the back end of this tape, connell, some pretty interesting comment from the president he says this is not just about a trade deal. He says this is also about peace. The president making the case that tensions between the United States and china ad not been the best at one point. The president said they have planes, we have planes. They have ships, we have shins. The president said this is more than just a trade deal. He expands on that. Other issues, the tariffs that were expected to go in place on tuesday will not go into iaea effect, increase of 25 on 350 billion worth of goods. The second batch of december is still tbd. My read from being in the oval office, by which the president pingponged back and forth between secretary mnuchin, Robert Lighthizer. My read that is kind of a buffer. That decision about the next batch of tariffs on december 15th hasnt been made. Seems theyre giving some sort of a little bit of a leeway to potentially impose sanctions or impose tariffs, rather should this not break up. Another component, connell, cut me off when you get the two minute i understand. Another component is apec conference in chile in about, what is today, lost track, october 11th. About five weeks time. That is kind after target day, when potentially papering, getting all details down and fleshed out could be signed by the u. S. And china down apeck in chile. Whether that is signed by Robert Lighthizer, Steve Mnuchin or President Trump signing that with xi as well. Either way to step back for a second. This is what the president describes the very first words, one of the first words you will hear from him, as a substantial deal. Has multiple issues what the president and his team have been talking about. The exact details . We dont know. One sheeter. I will leave you for this, what is interesting, president has been talking about, he want as big deal. He was asked, what about phases . Why are you doing faces. This is just too complicated and important they have to take it piece by piece. Melissa when you were saying the apec Conference Date in chile was target for paper, that is phase one . The president said it will take three, four, five weeks to get this down on paper. Connell were getting tape. Melissa lets listen to the president. Thanks, blake. Yep. Hold this for china. There is nothing bigger than what were doing with china. I think it is important that these are questions that are asked. As you know we have the vice premier of china, one of the most respected men in all the world. We have Great Respect and great friendship with him and weve come to a substantial phase one deal. I will go through some of the points. Then i will ask the vice prepare mere to say a few words, any comments he may have. We come to a deal pretty much subject to getting it written. It