For future Public Offerings. Plus, the infamous biotech ceo Martin Shkreli was back in court today. He now faces eight counts of fraud and conspiracy to commit fraud charges. He has a trial date has been set. Well have the latest developments from the courthouse in just a few minutes. And larry kudlow has bold plans in a Federal Reserve restructuring, the whole thing. He says janet yellin and everyone else should be thrown out. Find out who he thinks should and its not larry. He doesnt think himself should be at the helm here, but he has some ideas about who should be. Coming up. Lets start with Jpmorgan Chase earrings beat. Kayla tausche is standing by on the floor of the stock exchange. The stock has been up close to 2 all day and it is really boding well for the rest of the banks as well, having a halo effect, not only on the other big Money Centers that still have to report, but also on visa, after positive data on credit card spending from the bank. That was just one data point among a slew of positive data about the consumer, which was very resilient this quarter. Loan growth was strong, as rates are low, sfosts are up, and the banks are being slightly more cautious on credit. That was a very slight comment there. On the corporate side, not quite as rosy. Lower fees, fewer mergers, and not as many ipos, despite the fact we had a big one today. Trading was a bright spot. There was a spike around the time of that brexit vote at the end of the vote. Cfo marianne lake says that trading activity will return to normal. She and Ceo Jamie Dimon says the uncertainty around brexit isnt going anywhere anytime soon. Take a listen. We will continue in every single country to serve our clients day in, day out. Im not really worried about it. You know, i recently it would be nice if it doesnt create, you know, huge turmoil. So im hoping the eu, you know, is sensible, but were going to be prepared. As marian mentioned. You know, anyone will reach each one of them. But were not going to pull back from serving people in italy, germany, france, or spain. Certainly that range of outcomes will take time to figure out exactly what it looks like. But investors are breathing a sigh of relief that at least the impact immediately from brexit, guys, isnt noticeably negative on the financials. Yeah, an excuse that could have been used, i guess. What about overall revenues. You know, the larger trajectory of where the business is going to be able to increase that line going forward. Well, certainly q, kelly, th fact that rates have been pes peskily low is going to continue to hurt the banks. Jpmorgan did turn in much better than expected revenues overall, beating wall street estimates. In most of the units, revenues were up, if even slightly slow, but the margins were down about five basis points. The first time that margins contracted in about a year. So certainly, the fact that rates are staying low is going to continue hurting the amount of money that they can bring in from what their loans are yielding. But theyre managing to do pretty well despite that. Quick question. A lot of people probably noticed the quality of his voice, as he was speaking. Is he okay . Just laryngitis . What was that about . A spokesman from the bank said that hes been suffering from a summer cold throughout the week, that he is on the mend. But one of the reasons investors were concerned about is he did have throat cancer several years ago. He has made a full recovery from that. But you never want to hear a ceo as a company as large and important to the Global Economy as Jpmorgan Chase sounding like this, but we wish him a speedy recovery. Thanks, kayla. Larry fink joined squawk box earlier today and gave his thoughts on the equity market and the recent rally. Here we are, were seeing investors worldwide pausing. We have seen quite a large sum of money being pulled out of equities over the last year. And yet were at record highs. This rally, in my mind, is not i dont think we have enough evidence to justify these level in the equity market at this moment. Well, lets talk about that, shall we . Its a good jumping off point for our Closing Bell Exchange today. With us, jeffrey sod from Raymond James is sitting here at post mine, so is rob morgan of Citi Financial Group is out there in the ether somewhere. Jonathan is here at post nine. And Rick Santelli is in chicago. Jeff, youve been through enough bulls and bears markets. Larry fink probably is not alone in his feeling that we really dont belong at these levels, given all the head winds that the market faces right now. Yeah, weve been with bulls all week at goldman sachs, over at lord abbott and deutsche asset management. And even they dont believe the 134 estimate, bottomup operating earnings estimate that s p has. They think its more like 125. Even if its 125 at the low at 1995, youre trading at normalized 15. 2, 15. 3 times earnings. So you can rationalize these levels . Thats what youre saying request. Yeah. I think the stock market is going to go a lot higher. Jonathan, what about you . Were not seeing the rush of money coming back into this market just yet. There hasnt been this fear that youve missed this rally so far. We have seen opportunities recently where the market has pulled back 2 or 3 . I think investors are looking for that to happen one time again. The issues that have moved our markets in both ways are still here on the table. So the uncertainty about brexit will definitely play a major role in the near future. Rob, you agree with jeff that the rally is not over yet, but what do you i guess its a contrary indicator, when you have the number of dollars coming out of the market, the individuals took out, between january and june this year, and those reports from bank of america, merrill lynch, and ubs about the nearrecord cash levels that their customers are holding right now. You may take that as a comfort, as a bull. Is that the idea . Absolutely, bill. I think thats just the ammunition for the continued rally. I would agree with jeff that stocks really arent expensive here and the rally really is going to be continued with improved earnings. Facts says earnings will be down 5. 6 this quarter, but they should be breakeven next quarter and a slight pause in the quarter after that. And the uncertainty over brexit is just going to keep the fed on the sidelines, along with the president ial election. Theyre not going to raise rates until after the election at the earliest. So this just seems to be the perfect storm for a meltup in stocks. Rick santelli, the bank of england this morning decided not to cut, or to do more stimulus at this point. Maybe they still will. But is that an acknowledgement to you that things out there arent as bad as they were feared when britain voted to leave the eu . I dont think its that at all. I think its more a kin to a broken clock being right twice a day. The last thing we need is more easing. I dont understand the value of it i know that the bank of england and the uk may be a special case, so ill just leave it at, i think keeping his powder dry was a very, very good decision and im tired of hearing about brexit having this effect. The only effect it had was putting people in the wrong camp at the wrong time. And in terms of fate, welcome to the club. Of course the fundamentals dont match. Negative Interest Rates, its all going to be a positive for stocks. Whether its built on a Solid Foundation or not, and i dont know what other guest it was, maybe it was rob, there is a lot of cash on the sidelines. And human nature never changes. If this keeps continuing, that money will find its way back into stocks, fundamentals be damned. I cant wait to hear larry kudlow. Hopefully hes arrived at what weve all arrived at. Less micromanagement, more microprocessors in terms of the fed. You get my drift there, dont you . Yeah, we got that whole thing there. Jeff sad, to this point, this year, the leadership of this market has been very defensive. In other words, people are reaching for yield. Theyre not necessarily voting for growth in this economy. Is that the kind of leadership you want to see . Well, they came out with an acronym the other way, s. T. U. B. , staples, utility, and bonds. And when you hear an acronym like that, you should be rotating away from it. To what . I think tech is cheap. Rogers, years ago, when they asked him how he makes money, he said, he buys fear and sells greed. And he said, i wait until you see gap appearing in the chart price. Go look at the tlt chart. It gapped all the way to the upside. I think dougie cash has got it right. I think youre making generational lows and yields here. And if we are, jonathan, whats that mean for stocks . If people are forced out of fixed income, do they go into stocks, or if rates are moving higher, does that bring down equity valuations . I think we see that rotation from fixed incomes into equities. And there are plenty of stocks out there that are relatively undervalued. And investors have to get rid of this fear of the market trading at its alltime highs. Just because its at its alltime highs, doesnt mean theres not good values out there. What would you buy, rob morgan . Talking about what jeff just mentioned, i guess i would buy the stu part of that, the staples, technology, and utilities. And the reason there is an acronym is probably a bad thing, but im sticking with them for now. Youre sticking with stu, why . Why, rob . When you look at those sectors, not only do they have great yields, but visible earnings growth, the peu ratios are in line, technicals look great. Its not just the attraction of yields, theres certainly that, uh be its a lot of other factors, especially when compared to other sectors, as well. John, whats the catalyst youre watching right now . Is it just the earnings . Oil doesnt seem to be wagging the dog right now . It is. And oil has taken a few steps back in the major focus everyones looking at. But i think it is earnings season. Clearly, jpmorgan was a nice way to get started. But jpmorgan is really the strongest in that peer group there. Its going to be interesting to see if the next reports that we get, citi, wells, goldman next week, will they be table to keep their heads up with that jpmorgan report. And by the way, rick, we havent talked a lot about the dollar. I guess thats because the biggest moves in currency markets, again, were concentrated a couple of weeks ago. As things shake out here and the fed may be, i dont know, are they on the horizon or are they not . Wheres the dollar headed for all of these companies when theyre talking about their earnings . The dollar has so many implications. Of course, if we look at normalization, which we should be looking at, especially considering today, you have the highest headline ppi. To find a higher number, you would have to go to the fall of 2012, okay . I think the dollar is not a pillar of the fed, okay . And i think its about time we talk more about this. Youre going to have stronger dollar if some central bank breaks ranks and does the right thing. Thats just the physics of finding it. And in terms of the effects its going to have, it will be emerging market, dollar denominated, weve heard it all before and weve seen it all before. But theres no way to allude that in terms of being part of the fix. Its the collateral damage. And if it isnt a pillar, i dont know when the fed created or when the fed gave up being the babysitter of the dollar. And along those lines, jeff, do you sense any notion of inflation yet in the economy . We do have gold doing what its doing lately, but i dont know if thats an expectation for higher inflation or not, but do you see it at all right now . Youve got a tightening of the labor force. Youre getting a tick up in wage growth. I think inflation is coming. I dont think it will be anything strong, but you cant find an economy in the history of the world thats had this much cash thrown at it and not had inflation come out the other side. So eventually, but just not now. Yeah, but i dont think youll get back into the 80s or 80s type inflation thing. I think it will be very manageable. A nice goldilocks outcome for everybody. Nice to see you. About 45 minutes to go. Were looking at stock staging yet another effort to close at record highs here. The dow is up by 152 points today. The s p up 13. The nasdaq is up 30. Great. Up next, the initial Public Offering of the year in technology, making a huge splash here on wall street today. Well have the latest on the market debut of the messaging app company, line. And the man known as the bad boy of the pharmaceutical industry, Martin Shkreli, hes back in court. Were live at the courthouse. Well have more. Youre watching cnbc, first in business worldwide. My name is fred and i carve heads out of cheese. Its not easy. I was once working on a bust of Shaquille Oneill in swiss. I havent worked in swiss since. Everyone called me crazy. Things really took off when i got my domain name headsofcheese. Com from godaddy and now theyre selling like hot cakes. Made of cheese. Got a crazy idea you think you can turn into a success . We know you can and weve got a domain for you. Go you. Godaddy. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Welcome back. 45 minutes left in the trading session. Youre looking at all 30 of the dow components today. Goldman sachs, the leading stock, even though it was jpmorgan thats getting the glory for its earnings. Thats number three on the list of the best gainers. The three companies in the red today, among the dow components, exxonmobil, verizon, and united health. Financials, by the way, coming off a sevenday win streak. I mean, really just trying to participate as we move to new highs in these markets. How about line today making a huge splash on its market debut here in the stock exchange. The japanbased messaging app, this years biggest tech ipo, its right behind us, too. We can look at how its doing right now, over 27 trading at 40 bucks a share. Bob pisani has more. And were learning a lot more about this company here in this country. And getting quite an education. Im just happy to start saying the ipo is finally starting to open up. The storys getting a little old. Its been a few months, finally were getting some evidence that shes right. Heres line at 32. 84. That was the offering price. That was in tokyo priced that at monday. Price, at 42, opened at 32, theyre happy about that. Line itself, biggest ipo of the year. Biggest tech ipo since, you remember that, alibaba, yeah, thats a big one. And first dual listing with japan. I had to check that. Thats a fact. We havent seen many from japan in a long time. They do have competitors, and you know what they are, whats app, biggest one, facebook, and theres we chat, which is primarily over in china. Ka cao is another one. Over in south korea. Many people wanted it. Its a very popular brand over in japan. And most importantly, the important thing is, our markets have been doing very well recently. Thats the most important thing for an ipo market. This morning, we had nyse chief tom farley on and he told me theres finally some signs that the ipo market is opening up. Lets face it, the ipo market for the last year has been very, very slow. However, the machine is creeking back to life. We had a day in may where there were four ipos, including u. S. Foods, which was over a billion. We had an exciting tech ipo two weeks ago with twillio. Their stock is about 43 bucks a share, three times the midpoint of their range. The number of Technology Companies were talking is increasing. And its about time. Theyre running out of excuses. So remember, the most important determination of the ipo market is the stock market. The s p is at an historic high. If you dont have time to go public, if you dont want to go public now, youve got some real issues. So im not expecting a lot of the big unicorns to go, but we are going to see some names starting to open up, and well talk a little bit more about that tomorrow. Theres going to be some other interesting ones next week and a big food company. Its just interesting. As we emphasized, before some of the last two, the companies were actually doing better when they had priced at the lower end of the range over market uncertainty. So we can share the fact that lines up 27 and its good to here that twillio is still doing well, but is actually the risk that the better these markets get, the worst overtime in the performance of those that are having a great debut. The companies were seeing going are not moon shots, theyre companies that are generally making money or have clear paths to profitability. Maybe theyre not fading miss unicorns, but Companies Investors are interested in and i think can put a reasonable valuation. That was going to be my point. Its the quality of the companies that are making it through the ipo window right now. They are quality companies. Youre not seeing a lot of fluff. Yeah. So next week, for example, were going to have one of the big Biotech Companies in the world go public. Were going to see some other companies in the next few weeks, might be a couple of retailers that are out there. And tomorrow, big food company that will be going public. The bottom line is, were finally starting to see things that why theres ice cream on the floor . Good humor over here. Guys, look, were going to get the strawberry shortcake. Unilevers ringing the closing bell. I dont know about you, but i have some things to do. In a little while, guys. Thanks so much, bob. Take care. 40 minutes left in the trading session, while we watch bob eat his strawberry shortcake. We should leave the mike on for that, too. Pharmaceutical bad boy Martin Shkreli back in court. Meg terrell is on the scene for us and shell have the latest developments in the accused fraudsters case in just a moment. Also ahead, battle royal, our larry kudlow makes the case for replacing the top brass at the Federal Reserve with people who are more in touch with the economy, like farmers. And Steve Liesman takes the other side of that trade. You dont want to miss that, coming up on closing bell. That looks so good. Turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or n