Want to call it, it has aheived for market. Investors are looking for clarity on two major issues Interest Rates and trad thisweek, the Federal Reserve policymakers meet to decide whether t now is time to lower the benchmark rate. Most say it is not, but some say it is. The market wants a rate cut. Some economists argue its not necessary. If a rate cut doesnt come at this weeks meeting, investors will be looking for clues as to when it will, given the escalating geopolitical and trade nsions, as well as slowing global growth. And with that as a backop investors were in waitandsee mode today. The dow jes industrial average rose 22 points to 26,112. The nasdaq added 48. And the s p 500 was uptwo. Bob pisani starts us off tonight from the new york stock exchange. Stocks are off toui a start so far, but theres no shortage of marketmoving catalysts to comen the week ahead. Thats whats important. Trade talks and the Federal Reserve will be front and center all week with President Donald Trump set to meet with chinese present xi jinping next week at the g20 meeting in japan. But earlierrc today, com secretary wilbur ross downplayed prospects of a major tde deal getting done. Its very hard to put a timetable on things. I think that we willy eventua probably make a deal, but if we dont, the president is perfectly happy with continuing the tariff movementshatre weve aly announced, as well as imposing the new ones that he has temporarily suspended. We saw aderelated sectors like semiconductors, materials, industrials, all weaker today, generally, as a rest of that on the flip side, we did see some strength in communications services, like facebook, netflix, and google pent alphabet, all turning around a bit. The other big issue for the week is the Federal Reserve. They kk off a twoday meeting on Interest Rates tomorrow. The question now is, c the fed set the stage for a new easing cycle when it meets on wednesday . Many traders are expecting fed chair jay powell to leave the door open for a rate cut later this summer, maybe even next month, without sounding the alarm about a Global Economic slowdown. It wont be easy to get the tone right on that. Right now, interest sttesensitive groups like utilities and reale are essentially at historic highs as rate cuts make them more attractive investments for investors who have been starving for yields. Ter in the week, by the way, well also get key data on housing and otmanufacturing, of which will paint a clearer picture of just how healthy the economyeally is. For nightly Business Report, im bob pisani at the stock exchange. So, theres a lot to come. A slew of economic data, the fed, the ongoing trade talks. Will these be catalysts that move the market higher, or will they be road blocksh that pt lower over the next couple of weeks . Joining us right now, jack avolon, Founding Partner and chieftnvestment officer crescent capital. Jack, i cannot recall a wider spectrum of forecasts for a Federal Reserve meeting. Plenty of people are saying its not goinge to happen this t around, but a few highprofile people, economist diane swonk, jim graham, theyre saying they could cut rates this week. What do you thinks going on here . Well,ou know, it matter of what they should do and what they you know, wha they should do and what they will do. And i think if it comes to either nourishing theconomy or feeding a very hungry sto market, my sense is that they ultimately willke cave to m pressure and lower rates. I dont think they want to do it this week. Remember, if we look at the economy right now, were coming off one of the strongest quarters weve had in the last ten year l thor markets the best its been in ten years. Confidence is running high. So youknow, from an economic, purely economic standpoint, theres actually very little justification for lowering rates. In fact, its really just sort of a consequence ofhis stalemate going on with trade thats causing problems, and thats where we need to focus next. Which puts the focus directly on the g20 meeting, does it i mef were going to get not . Any progress with trade, the presiden and the chinese premier are reportedly going to meet. That change, certainly. But might the fed want to wait and see what the outcome of thas meeting yeah. I mean, if i were a member of the federal open market committee, id say, absolutely, ts take a waitandsee. Fact is, we have this, you know, potential for an agreement, albeit, i would say its remote, to perhaps wipe away these tariffs, move back tness as usual, and you know, carry on. That said, you know, most investors or most americans believe this is a trade this really is really more about the global dominance in technology and life science. And the president is using trade as really one of his only weapons to get beings attention. So, the fact that theres such a gaping difference in philosophy suggests toe that, y know, a sweepingat trade negon, a deal around the corner still seems pretty unlikely. Well, get the popcorn ready. Its going to be an interesting thats for sure. Jack with crescent capital, thanks for joining us. Thank you. Goldman sachs is raising some questions aut the tech sector today. The firm says the valuation for Growth Stocks is high, and if so, what could that mean for the overall market . Joboing us to talk that is paul meeks. He is the lead Portfolio Manager for the wireless fund. Welcome, paul. Nice to have you here. Thanks, sue. You know, Goldman Sachs made some pretty compelling arguments, but you think theyve taken it a little bit too far. U not as bearish on that particular sector of the market. Why . Now, im valuesensitive. I typically only buy stocks when theyve really come down a lot and theyre still embracing m longterm themes. I think goldmans call today was far too broad, because when you take a look at the tech sector, its actually made up of a number of component industries. And there are a couple of industries, such as rs semiconduc that looked actually quite cheap to me because theyre the ones that have beeneaten up t most by the ban on huawei and also the continuing trade and tariff battles with china and the u. S. We, thats a issue that needs to be addressed. I mean, fundamentally, you may find some of these fihighp Technology Companies arent cheap, but they faceer some big political head wundz in washington when we the antitrust investigations that are going on that go after some of the big faang stocks right now, right . Thats true. It will be interesting to see what happens with these ongoing investigations. The ftc andhe department of justice, with at least four of the Major Tech Companies and both of the major social media companies. But the way i look at this is, particularly the ftc investigation thi tis somethints been going on for a long time. I dont think thaew that is news. As it pertains to the department of justice, something more new, something more interesting, something that we have to be wary of, but i also think its a lot of pressure going into the president ial election in the next couple years, wherell of both sides of the aisle are interested in showing their strengmp versus these ies. I dont want to say its much ado about nothing, but i do think tt once we ghrough with this, there wont be that many changes and far less consequential than some people think right now. So, given the broad swath that weve talked about here, where are you still findingel cong value in the tech sector . So, sue, what ive done is i do think you need to play some defense in the near term, and so, i have a little bit higher cash than usual, and ive bee hiding in a couple of, i call them techish names,re that are ecure and stable. And these are Companies Like the payment processors mastercard, visa, paypal. I even bought some disney recently with its videore ing entree, and trying to stay away from some of the big, cyclal companies, particularly those that are tied up in the geopolitical mess. On that note,pa , thank you so much. Paul meeks thank you. Witel the ws fund. We have deal news today. Pfizer bought oray f biopharma more than 10 billion. It beefs up the drugmakers portfolio of cancer treatments just as it faces an increase in generic competiti for som of its popular drugs. Shares soared by 56 today. Pfizer gained a fraction as well. Meg tirrell hor more us tonight. Pfizer is making a 10 billion bet in an area known as Precision Medicine. The idea thatde intifying the drivers of disease can lead to more effective Array Biopharma makes tarerted canc drugs, an approach thats garnered increasing attention from investors in biotechnology. We think that targeting the root cause of disease is the best way to approach drug development. Big pharmaceutical companies agree. Pf ers acquisition of array is just the latest focused on targeted therapies for cancer. Earlier this year eli lil purchased Loxo Oncology for 8 billion and glaxosmiteline m an acquire. In array, they get a lint of experi medicines for different forms of cancer as well as a combination of drugs that treats melanoma a has potential in other cancers, something that Mike Caldwell said drew his firm to the stock. What got us really excited was their data in colorectal cancer, which is a market that th will have a bestinclass profile as well because right nowhe are no competitors there and nobody thats on their heels. So thats a market that pfizer will be able to own thats substantiara and where s data are really compelling. The deal also spurred speculation about more biacquisitions of ech companies, driving up shares of others developing targeted cancer drugs like brupt medicines and miradi therapeutics. And while the Precision Medicine approach isnt a cureall, ers investment in the space, according to caldwell, is evidence of its promise. For nightly Business Report, im meg tirrell. A number of disappointing economic reports to tell you about. A key gauge of manufacturing nactivity the new york region saw a record decline in june and fell into negativ territory for the first time in two years. Any rding below zero indicates a contraction in activity. The reportuggests that Business Sentiment around tariffs is starting to sour, particularly because manufacturers tend to be extra sensitive not jt to the actual implementation of tariffs, but also to the threat of new ones. Meanwhile, sentiment ang the nations homebuilders dipped in june. That industry is sll plagued by some familiar concerns like the high costf Construction Materials and a continued lack of skilled labor. Trade issues also dont help. Tariffs are adding to t cost of lumber, and thats been going up anyway. The latest sovey als cited excessive regulation for the downturn in confidce. Ahose tariffs are one of the reasons why the nations executives are feeling less optimistic about the economy. Dominic chu breaks down the latest survey thateasures ceos moods. Reporter Business Leaders in america are losingonfidence in the outlook for business in america. Thats according to a new survey released by the chief executive group, which asks hundreds of ceos across the country about their concerns and challenges, and the month of june saw ceo confidence fal to the rowest level since december of last year. 384 ceos representing varioussized businesses collectively feel less confident ab t futureconditions. One of the biggest reasons for the drop in confidence has to do withne heigh trade tensions between not just the u. S. And of the t also because recent issue surrounding trade relationships with mexico. That drop in confidence is also showing up in whateos think will happen with their Company Financials in the coming year. While nearly threequters of survey respondents felt like they would see an increase in sales and profits when may numbers were collected, this month those numbers dipped. The same themes bear out when comes to how much they expect to spend onng thi like hiring and investing in buildings a production facilities. Only around half expt to hire more workers or spend more on capital expenditures. The good news is that much of the drop in optimistic is due the uncertainty around trade and tariffs. If those overhangs were to towards eventual resolutions, ceo confidence may very wellee turnaround. For nightly Business Report, im dominic chu. Time to take a look at some of tays upgrades and downgrades. We begin with shares of disney. Y ere cut to inline from outperform at imperial capital. The analyst citedoc the s big runup this year so far, saying shares are now what hes cat a record multiple. Price target, 147. That stockct fell a fn today to 140. 97. Dow inc. Was downgraded to market perform from outperform at bmo capital markets. The analy says the global trade issues and weaker growth worldwide will make 19 a challenging year for this material science company. Price rg, 52. Shares fell 3. 5 today to 49. 35. Deere was upgraded to troutperform from n over at baird. The analyst cites higher prices for some crops, which should help drive farms a equipment demand. The price target is 175. The stock rose more than1. 5 to 154. 37. Curing dr. Pepper was upgraded to outperform from market perform, citing a potential for earnings growth. The price target is 3 shares were up nearly 5 to 30. 04. Still ahead, boeing and airbus go head to head. Reporter aroded 737 max and a new airplanfrom basairbus the two stories dominating the Paris Air Show. Im phil lebeau in paris. That story coming up on nightly Business Report. There are reports tonight suggesting that the faa will soon begin certification flights to test the chaes boeing made to t the 737 max Flight Control system, but boeing says those flights have yet to be actually scheduled. Meanwhile, the future of the max has been in focus at this years Paris Air Show, where Aviation Companies historically book some big orders. This year, thatsxa ectly what airbus did, but boeing did not. Phil lebeau is there. Reporter the roar of planes soaring above the Paris Air Show could nrown out the two big stories swirling on the tarmac the changin fortunes of airbus and boeing, more specically, the 737 max and whether boeing can get the grounded plane drecertifie and erck in service by early september, or whet will be closer to the end of the year. Well, certainly we expect to ore the endappen b of the year, as weve said. I cant give you a specific timetable. That will beoverned by the regulators. Were keeping our Airline Customers very much in the loop so they know exactly whats going on. Reporter what many are unclear about is exactly how much thedi gro of the max will hurt boeings business long term, and by extension, hundreds of companies building parts for the plane. Thess primary that everybodys focused on, whether it be the oems, not just ,boei but also airbus, because its an interesting issue, and then its obvisly hangi over every supplier and every disvession and investment people are looking at. Thats the biggest issue, certainly. Reporter the other big story in paris is the new airbus 321 xlr, a longerrange, narrowbody ane, designed to connect smaller cities f that arether apart. Air lease corps, which leases hundreds of airplanes to airlines around the world, is buying the first batch of xlrs scheduled to start lying in 2023. Theres huge demand there, and the eat advantage of the 321 xlr to an airplane is not having to fly a widebody on some of these city pairs that d reallyt demand it. Reporter the launch of the xlr, while que ions swirl around the 737 max, means airbus gill easily rack up more orders than boe in paris. But overall, there will be far fewer new airplanes oered at this years show, the fewest in three years, as airlines wait t see when the max will get back in the air. Phil lebeau, nightly Business Report, paris. Today, shares of boeing rose more than 2 , but thetock is down 16 since the deadly Ethiopian Airline crash in march. The 737 max was grounded worldwide shortly after. Going once, going twice, sold s sothebits the block. Thats where we begin tonights market focus with bid air usaa thats private Group Controlled by french media entrepreneur and art collector patrick drahy. He bought the auction house for more than 3. 5 billion. If approved by deshareh, sothebys will return to private ownership after 30 years. Shares soared to 56. 13. C j energy and keen group have agreed to a merger of equals in a deal valuedne at ly 2 billion. That merger will create a diversified oil fie services mpany with more than 4 billion in annual revenue. C j eney rose 20 to 12. 87, while keen rose 7 to 7. 48. And at that Paris Air Show, General Electric notched a 20 billion engine order from indias budget carrier indigo a Company Jointly Owned by ge and Francis Safran will make engines that power nearly 300 airbus aircraft for indigo. Ares of ge fell more than 1. 5 to 10. 05. Grubhub is teaming up withs dunkin brao allow people to order online at 400 Dunkin Stores in new york city through seamless, which is grubhubs new york brand. After the big apple, that service will then expand to boston, chicago, and philadelphia in the coming months. Grubhub cmbed more than 2 to 72. 01. Dunkin rose a fraction to 80. 50. The Chinese Ecommerce Company alibaba is proposing an 8 for 1 stock split, a move designed to increase flexibility in raising capital. Under the proposal,he number of ordinary shares would increase from 4 billion to 32l n. A vote will be brought up at ali