Community. Do not let up the pressure we saw what happened in the house. We need to keep fighting and were going to, and democrats will be right there fighting along with all of you. Senator stab now. Im very proud to stand here with a group of people and with a caucus that understands so the democratic side leadership of the Senate Speaking out after the Republican Leadership announced a delay in the vote of the Health Care Reform bill, and we welcome you to closing bell now for this tuesday with the dow done about 40 points right now. Im Bill Griffeth along with kelly evans. Lets go to washington for the latest in the twist for the Health Care Bill that up until the last hour or so we thought might get done as son as this weekend. Thats right. We heard senator john cornyn say this morning, a vote was on this week and a few hours later Senate Leaders reversing course essentially acknowledging they dont have the votes, at least not yet, to get this passed. Mcconnell had said that the white house has been very involved in these negotiations, but Law Enforcement simply need more time to get this done it has been a very dramatic day with mcconnell meeting with Vice President pence on capitol hill while senator rand paul went up to the white house in order to meet with President Trump. After that meeting was over, he tweeted that the president was open to creating a better bill is Republican Leadership now one of the issues that has been contentious is the expansion of medicaid and how long that expansion might continue and how long we might see federal dollars go toward that program governor kasich of ohio had said earlier today that he wants his state delegation to hold out for a better bill. He said that its like republicans are the dog that caught the car and now they dont know what to do. They need to make sure that they can work perhaps even with democrats in order to get this done guys, if you remember, the house had to pull its version of the bill before it actually got it passed well see if the same thing happens over in the senate. All right ylan, thank you. Joining us toss discuss more of this is Chris Krueger from cowan. We appreciate you being with with us. What a day we were asking you how likely it would be if Health Care Gets done before the july 4th recess. Now we know the answer to that how significant is this delay . Its pretty significant the exact wrong place for republicans where they wanted to be at the beginning of the year. The august recess was originally the deadline for tax reform and they are still sort of stuck in the mud of health care with really no end in sight for either the budget or taxes right after this all right timing aside, lets talk about the issues that divide them. I mean, clearly the democrats and the republicans are not talking to each other. They are talking to the press with what they would like to see the new bill look like the issues here are medicaid primarily, and the expansion or the cuts in spending is there a middle ground in that at all that you can see . Well, i mean, medicaid is sort of the issue du jure ajouru have planned parenthood and health care all wrapped into one bill here. This is not an issue that tends to lead to a lot of moderation with republicans every republican vote on this that you pick up on sort of the more moderate spectrum you lose one more on the tea party spectrum so its very difficult to see how mcconnell it thread in needle, and time is not going to help. This is not a bill that will age well, particularly over the recess, so its its tough with a lot of republicans sort of i think wanting to move over to the budget and to taxes, one of the few issues that still has some Common Ground with republicans. And we see a very mixed bag for the big insurers, for the hospitals on the back of this. Clearly people are trying to figure out the odds and also, you know, where this leaves them, and for tax reform how much will this halfer major reform if they cant use any of the changes from the Health Care Legislation to make bigger overhauls there . Well, i mean, there are sort of two things on the table, tax reform and tax relief. Tax reform is sort of a big, structural, comprehensive paid for tax policy, and thats thats i think basically gone, really what is under discussion is sort of another version of the bush tax cuts, sort of bush tax cuts 2. 0, individual cuts, passthrough cuts over a tenyear, particularly if you dont get the Health Care Bill through. You also have to deal with all of the Obamacare Tax cuts that total in the neighborhood of about 700 billion over ten years. Even the democrats, we heard this from chuck schumary little bit ago, know that there can be some changes made to observing abe to strengthen it and improve it, whatever do you suspect that that they will have a role in this eventually if they cant get the republican bill through, that somehow something is done to obamacare . Can you can we maintain the status quo at this point oh, i think the key thing to watch here is going to be post labor day because you have on september 30th a host of bills expiring, all of which were require 60 votes in the senate mainly schip, basically medicaid for kids. The thinking was at the beginning of the year if they hadnt gone down the repole and replace place, maybe use that schip bill which by definition has to be bipartisan as sort of a repair mission to prop up some of the exchanges, to prop up some of the counties that wont have insurers next year a lot of which are in trump counties, so that so keep an eye on october, that september 30 october 1 is. The unfortunate part of that is its wrapped up in the Government Shutdown negotiations along with the debt ceiling, so after labor day you do have a legislative vehicle to work on these things, but you also have a lot of cross currents that really dont blow well for bipartisanship chris, that all sounds pretty disheartening for the trump agenda and the dow is down 58 points as we discuss this. If the republicans look set to lose at least maybe the house in the midterm elections next year, what kind of impetus do you think that will ultimately give to pass some kind of Health Care Bill, to pass some kind of bigger tax reform . Is there no path to get there from where you sit right now well, look, i mean, the three president ial predecessors, two of the three started with health care in their first year and both of them lost the house in the mid terms. Having said that, i mean, were in a situation, a political environment right now, where republican candidates are literally body slamming reporters the day before elections and then winning election so the and you also had the most expensive congressional race in the atlanta suburbs finish last week with the democrats underperforming hillary clinton, so i think the its not clear what happens with the mid terms which are in 500 day disease, but no question the trump agenda has stalled out on capitol hill. All right chris, thanks for joining us Chris Krueger from cowen. Lets get to the markets today. Generally youve had Energy Prices higher, Energy Stocks are higher, health care has been lower. Technology is lower led by google, and with the dow down 56 points lets get to our Closing Bell Exchange larry glazer from mayflower advisers and Kenny Polcari sitting next to us at post 9 and Rick Santelli is at the Chicago Mercantile Exchange or the cme in chicago there kenny, you know, clearly wall street is watching whats going on in washington, but its, you know, not much is coming out of there right now. Not much coming out of there, but you can sense, though theres low volume, you can sense the building anxiety the market is off half a percent, not a huge number, but they are taking money out of, profits out of some of the high fliers and tech names and Cyber Security names considering whats happened over in europe im surprised cybersecurity is up, not down. People are getting nervous about the overall market so they are taking money out of some of these higher performers. Energy for sure because oil is up a little bit of a rally. Nothing really new there and whats going to happen as we move through the summer and Chris Krueger just said it, theres a stall there and not good for the trump agenda and not good for where he wanted to be at this point in the summer and the days ahead in the summer are going to be thats a great point about the cyber names, and even a name like alta which has been such a strong performer is having a down day. Trade remembers taking money out of it. Larry, where are you looking to put money to work for the second half of the year . Look, i think kenny made some great points days like today were reminded forget the summer doldrums and forgot the barbecue and cookout and fireworks. The fireworks are right here at the end of the quarter and the fireworks will continue into the second half of the year if we see the rotation out of some of the Technology Names like we saw today, out of the expectsive names and more into valuationconscious areas and we can see the circus out of washington the investors have been reminded all year that you buy f. A. N. G. On a dip and what happens in washington stays in washington and it wont affect us, and both of those israel challenged in the second half of the year. Well rotate, like today, you see energy and financials doing much better. Big Expensive Technology not doing so well. Thats the playbook for the second half of the year, look for more values out of domestic into international. Before we get to rick larry, i get you heard mark benioff out there at this summer davos event saying he feels like the f. A. N. G. Stocks are still undervalued right now. Sure, sure, yeah, and he doesnt have a conflict of interest, does he . I mean, its not like hes talking his own book as the single largest share holder in any Technology Stock i mean, you know, whats good for him is good for him, right and my investors, i need to protect their capital. I dont need to worry about what hes doing in Silicon Valley i think hes doing just fine well protect our capital and look for income second half of the year. Netflix down 4 today. Rick, let me steer you to what im sure youve been focusing on today, the skyrocketing yields in europe starting, you know, the ten years, whether its in germany or france or italy or wherever it was and the impact its had on our own yields in the United States what do you make of some of the hawkish talk from mario draghi this morning well, everybody is focusing on whats going on in d. C. And its having these outsized effects in stocks. Oh, my god the dow is down 50 the fixed income world isnt even paying attention to that. Its looking at the big show in center stage, Central Banks. Is there a taper do they have the nerve will they do it, and i hit all the right names. Lets show some twoday charts germany, which is called the euro zone because its the best credit up a dozen basis points, italy up 16 and france was up 14 spain was up a dozen and even canada was up 10 were the lag yards, were only up 6 the relative value trade isnt a oneway street like in chicago it goes both ways. Now were experiencing some of the traffic in the other set of lanes. This is a huge story doesnt mean its going to be linear or that Mario Draghis first words on the topic of a taper are actually going to happen in a timely fashion, but it does give everybody a clue as to whats really driving some of the money globally, especially some of the money in the fixed income space, and we all want to pay close attention to this, especially considering how it seems to overlook some of the other issues that others find so important on a daily basis a lot of them politically denominated. Kenny, that seems to feed right back into the rotation talk we were having because look at jpmorgan leading the dow. Look at bank of america, a 3 , Charles Schwab having a nice day. The financials say what you want have not really performed the group as a whole is up 3. 5 from the beginning of the year therefore, in fact, they have not really kept up, and so as as they said in the and the other guest said, thats true. Investors are going to start to move out of some of the high flyers and move into the value, so energy for sure in financials certainly lead the pack you mentioned energy. Granted, oil prices were up 2 today, but right. But look what oil has done. In a bear market and oil stocks down 17 , 18 . Weve got to go, because now the white house, we have Sarah Huckabee saunders who is beginning her the q a process at the white house lets see what they ask about health care. Stay tuned here. The target of this one of the target stories except the president went on twitter and repeat that had cnn was fake news why isnt their response good enough for the president i dont know that its that the response isnt good enough for the president. I think its that the constant barrage of fake news directed at this president probably that has garnered a lot of his frustration. You point to that report there are multiple other instances where that outlet that you referenced has been repeatedly wrong and had to point that out or be corrected theres a video circulating now, whether its accurate or not, i dont know, but i would encourage everybody in this room and frankly everybody across the country to take a look at it i think if it is accurate, i think its a disgrace to all of media, to all of journalism. I think that we have gone to a place where if the media cant be trusted to report the news, then thats a dangerous place for america, and i think if that is the place that certain outlets are going, particularly for the purpose of spiking ratings, and if thats coming directly from the top, i think thats even more scary and certainly more disgraceful, and i hope that thats not the direction were headed i hope that outlets that have continued to use either unnamed sources, sometimes stories with no sources at all. Weve been going on this russia trump hoax for the better part of a year with no evidence of anything. Things like that the success at the v. A. Barely get covered. They may get covered for an hour at a time, but this story gets covered day in, day out, and i think america is frankly looking for Something Better they are looking for something more, and i think they deserve Something Better from our news media. Does the president actually expect im sorry. Does the president actually expect us not to report on stories of a foreign country trying to influence the president ial election . I i dont think that its expected that youre not to report on, again, actually news if theres something there, but, again, i think that there are a lot of things that happen in this world that frankly a lot of people would like to hear about, whether thats job growth, whether its deregulation, whether its tax reform, health care i think a lot of those things deserve a lot more coverage than they get, and all were saying is, you know, i think that we should take a really good look at what we are focused on, what we are covering and making sure that its actually accurate and its honest. If we make the slightest mistake, the slightest word is off, it is just an absolute tirade from a lot of people in this room, but news outlets get to go on day after day and cite unnamed sources, use stories without sources, have, you know you mentioned the scaramucci story where they had to have reporters resign. Come on youre claiming to everybody right here with these words this administration has done as well. Why in the name of heavens, any one of us, right, are replaceable and any one of us if we dont get it right, the audience has the opportunity to turn the channel or not read us. I think you have been elected to serve for four years at least. Theres no option other than that were here to ask you questions. Right. Youre here to provide the answers and what you just did is inflammatory to people all over the country who look at it and say, see, once again the president is right and everybody else out here is fake media and everybody in this room is only trying to do their job. Well, i i disagree completely, first of all i think if anything has been inflamed its the dishonesty that often takes place by the news media, and i think it is outrageous for you to accuse me of inflaming a story when i was simply trying to respond to his question kevin. Thank you, sarah. Just rapid fire because weve had a bit of a long briefing here would it be fair let me ask you this way how would you describe the president s mood on health care, concerned, still encouraged, and what did you make of the cbo score, if you talked to him about that, and secondly i want to ask you about the warning to syria. Whats the message that the administration wants to convey, not just to the World Community but also to the American People who see headlines like that and wonder are we hurtling headlong into a major situation in that part of the world . Ill start with health care, first. Were continuing to be optimistic the president is committed, he said, and all of the members of the administration have said repeatedly to repealing and replacing obamacare, working with the senate, working with the house, making sure we get the best bill. For us its never been about the time line but about getting the best piece of legislation that helps the most americans, and thats what were continuing to do, day in day out thats the reason the president has asked members of the senate to come here today so that they can talk through that, so that they can