Unexpected rant about gridlock in washington. Boy, was he well hear what he said. Well let you listen to it. And wells fargo shares are under pressure after the banks disappointing revenue numbers. The companys cfo will join us. And after the bell, paypals chief executive officer will join us in a cnbc exclusive. That stock hitting an alltime high earlier in the wake of its new apple partnership. Well get more details in the next hour. Lets start though with this news that broke in the last hour regarding sprint dow jones reporting that the Telecom Giants chairman engaged with Warren Buffett and cable mogul john malone about a cable investment those talks reportedly happened in sun valley, idaho, at the ellen and Conference Company conference where Julia Boorstin has been packing up and getting ready to go and hang around, julia. There may be more news breaking here so we all know that they were there but you havent been able to confirm whether the conversations we were talking about there happened in sun valley, right . Reporter yes we know all the players are here and we mow that john malone has been taking meetings hes been having them behind closed doors and we saw them arrive what we expected going into this week in sun valley is the telecos, the at t, verizon and sprint are the ones those are the ones that have the most pressure on them to make moves now that at t is buying time warner that deal, of course, pending, there are a lot of questions about what verizon is going to do to try to differentiate its pipes. Discovery ceo david zazlov talked to us earlier in the week about how thereby pressure for the telecos to bundle everything together, to make sure if youre selling cable and Internet Service youll be selling wireless which is why weve seen comcast and charter have these talks that they are having right now with sprint. The reason why sprint would be interested in bringing in money from Warren Buffett is so it can better compete with at t and verizon. A huge infusion of cash from Warren Buffett would make a big difference and really allowing them to add customers without having to worry about the pressure on their bottom line. Julia, i guess theres several questions here i mean, first of all the idea that sprint is approaching them suggests that its coming from a place of weakness, not strength. This is not Warren Buffett swooping in with a deal for a company who he thinks is attractive and undervalued also sounds like the talks were separately held according to the journal with buffet and not malone and not sure what form this would take and its a question of whether theres an injection of capital as a way to say theres a number of suitors, wink, wink, nod, nod to tmobile this is the first guy to show up at trump tower this is a guy who knows how to work it for his company. Reporter yeah. Look, sprint is definitely in a position where its under pressure right now facing competition from its two biggest rivals, at t and verizon, and both those companies have diversified and made big investments. Verizon, you know, in the form of acquisitions of both yahoo as well as aol and then also with at t you have this time warner deal you no i think we have to remember that as you mentioned sprint and tmobile were having those merger talks, but those talks were tabled just while sprint had talks with both charter which, of course, john malone is a big investor in as well as comcast cnbcs Parent Company so charter and comcast are trying to figure out how to bundle Wireless Service into the package of what they sell to consumers so theres a lot of different Major Companies involved here, but sprint has definitely put itself in the middle of a lot of these conversations as it tries to figure out how its going to compete in this very crowded landscape so its really one of the smaller players now. We have to remember that we did have the tmobile talks. Those are put on hold and they are already in talks with charter and comcast and apparently the term in which they can negotiate with charter and comcast is just a couple weeks longer, so they are probably setting the stage here for whats going to happen next. We were talking earlier about whether this was to to try and impress tmobile that they have got other options out there. This is a heck of a bluff, very elaborate if in fact thats what they are trying to do, hu . Well, look, i think something thats really interesting about sun valley is everyone is here its the telecoowners, media giants and investors this is probably a great place for sprint to be talking not only to its rivals but also to all these potential investors just to see what these options are because sprint has been the center of so many different talks over the past six months or a year that it seems like its all kind of converging here now as they try to figure out what the next plan is going to be or if they want to resolve the current talks they are having with charter and comcast in offering Sprint Mobile service to charter and comcast subscribers. One of the worst performing sectors in the market this year so far, telecom, and they try to figure things out. Julia, thank you Julia Boorstin with an unscheduled appearance from sun vale. And while the bank stocks are lower, the bank healedine is actually this rant by Jpmorgan Ceo Jamie Dimon during his firms Conference Call earlier today. Will fred frost was on that call and hes got details for us right now. Thats right, bill. Heres the main part of the aforementioned rant. Dimon referring to the excessive gridlock in washington. You have one. Most bureaucratic, confusing, will i tijous societies on the planet its almost an embarrassment being an american citizen traveling around the world and listening to the stupid [ no audio we have to deal with in the country. Dimon is always colorful but the level of phraseology is far, far elevated than what we would expect on an Earnings Call why is he so annoyed because on recent trips to china and france hes seen what can be achieved. Every single one of those countries understands that practical policies that promote business and growth is good for the average citizens of those countries, for jobs and wages, and somehow this Great AmericanFree Enterprise system we no longer get it. Its important to note his criticism of washington was referring to the last decade broadly, not specifically the new administration, and his main point was actual lay it growth is resilient r since the great recession, okay, which is now eight years old, weve been growing at 1. 5 to 2 in spite of stupidity and political gridlock because the American Business sector is powerful, and its going to grow regardless what im saying it would be much stronger growth had we made Intelligent Decisions. Bank stocks, bill, as you said down though because of earnings, not the dimon comments we just listened to. Guys is it also because of Interest Rates we saw, you know, the tenyear yield move down after the inflation and retail Sales Numbers exactly right, kelly. That accentuated the moves but fair to say as the numbers came out before the numbers that we saw the stocks react in the premarket for jpmorgan the negative was less impressive knelt Interest Income than people expect. They lowered the guidance from 4. 5 billion to 4 billion for wells fargo it was less good loan growth than expected, and for citi there was nothing really specific. I think just among all of the banks they ran up quite well into the earnings and didnt quite perform as expected and the Interest Rate point us a rightly say, kelly theres jpmorgan and wells down about 1 . An eventful day for you, unexpectedly so. Thank you, see you later jamie was clearly not in a very good mood because he was also taking the Financial Press to task. And a half. They were asking about the minutia of their bondtrading business who carries about that you should be worried about the gridlock in washington. They are on the own, Conference Call. I agree not the treasury secretary could have been but is not. Theres been indications lately that wall street is starting to bet on wall street again. Michael, do tell. Its a little bit selfreverential just look at today, kell you have the dow at record highs, in a sense feasting on those weak numbers for main street, so wall street over main street has been a familiar trade for a while now and even within that its parts of the market that are benefiting the most thats the wall street part, the investment banks, brokerage houses, securities exchanges and Asset Management firms that have really been quiet leaders, and its really the markets way of saying this is where we think you have to kind of hide here as main street economy struggles a bit. I put this chart back of blackrock against discover financial. Two stocks going two Different Directions discover basically a consumer lender that thrives on lending money to average people out there, and you can see basically wall streets verdict is good for one, not for the other, and in a broader sense this is the way the market is reacting to this disappointment on the growth front, the idea that the fed is going to go slower, so heres what wall street likes. Slower growth. Low Interest Rates, voracious appetite for credit junk bonds doing very well. High corporate Profit Margins. Thats what weve had now. Thought there would be an intermittent story and the economy would run higher main street wants the faster growth and wants to see wage growth pick up a little bit, perhaps meaning higher Interest Rates and maybe not good things for wall street. While its not a zero sum game have you to ask the question how much further can you stretch this right now and i will say, guys, youre seeing inklings that people on the street are saying maybe the retail stocks, for example, have gotten just a little bit too depress the maybe weve been too dim on the prospects for main street. Upgrades of walmart and gap stores and had the news from target as well. If the pendulum swings in both directions. Any wonder that janet yellen is as dovish as she is. Exactly. Clearly shes looking at that second part, the main street part right now, dont you think . Exactly, and weve been kind of stuck on this treadmill for a while where you say the fed wants to do more and wants to get into a mode of more normal Interest Rates and wall street fears that for a while main street data doesnt support in a and then wall street kind of celebrates it so, you know, until further notice i think thats where we are. Im just wondering about some we talk so much about the banks, you know, the big ones, regionals, more on that in a moment, but there are these other pockets of the Financial Sector especially as the whole thing is undergoing change. I think the asset manager is very interesting all the technical analysts are saying look at this group that really wants to go harder. Hard to get bearish in the overall market when thats actually a leadership group. Kind of like a leverage play of the market itself. Thanks, mike see you next hour. Mike santoli. Lets get to our Closing Bell Exchange the dow up 86 points putting us in record territory. Joe durand is with us today, New York Stock ExchangeTrader Peter Costa from empire executions is out there on the floor somewhere and Rick Santelli is in chicago at the cme peter, it do we still lay this at the feet of janet yellen, do you think, this rally that began after the testimony came out on wednesday before the House Financial Services committee and we havent really looked back since. And it pains knee say it, but, yeah, i think we have to lay it at the feet of janet yellen and a lot of what has happened in the market over the last two years the fed has been guiding it and continue to guide it thats not really a bad thing. I think they have done a fairly good job i know people will disagree with me, but i think they have done a fairly good job of trying to manage this and Going Forward i think there will be some issues coming into september because, you know, some people will be calling for another rate hike. Im not. I dont think the economy wants it, but i dont see in those hallowed walls in washington, d. C. And i dont make that decision, but, you know, i think thats what people are looking at and her getting more dovish and, you know, for the financials might be the greatest thing but i think the financialses are in a totally different footing right now. By the way, joe, its pushed the dollar weaker. The u. S. Dollar index is down around 95 now and look at whats happening with oil today and gold and silver and the gold miners, so what do you make of of it . Is this a oneday move we were up at is. 03 on the dollar index its the unwind of the trump trade that occurred from october, november all the way to january and everything has basically reversed out we were hoping to reach a 2. 5 to 3 growth rate and were hoping to make two were seeing that reflecked in Interest Rates and on the dollar were seeing it in the performance of stocks. Small caps way behind the International Large caps and the Growth Companies so everything we thought was going to be true at the beginning of the year, invest in small caps and invest locally has turned out to be the polar opposite because of the gridlock and the mess thats happening with the Trump Administration dialogs that are occurring and their ability to get anything done to actually increase growth so i think what youre seeing is a reflection of a continued unwind i think will continue to year end. I do not think were going to get another rate hike because what were seeing is a very flooding u. S. Economy. Ever . All the on the smimp there and the behavior in the market and the growth in gdp is not following through. Well never have another rate hike or just this year its just the International Markets are really setting the pace, and youre seeing that with the performance of Large Companies and how they will we are doing and the relative underperformance of small caps so until small caps start to catch up i think its really hard to put another rate hike through unless we start passing quality changes that will increase growth, reduce regulation and put the infrastructure bill in and none of that appears to be on the horizon. And, rick, then we add the very tame Consumer Price data this morning, inflation data yield came down. I saw one forecast that said maybe the tenyear could go back to 210 at some point i feel like weve seen the lows for years in terms yields but what do you make of whats going on right now well, obviously, you know, anything is possible, and you always have to be openmined any trader that makes up his mind and doesnt change what the times, the fundamentals and the economics and all the flows, you know, youre never going to make money. Ill still virtually stick with that comment though. I think peter actually has it right out of everybody take it up with management hes talking about he thinks they are managing things well. Well, heres the deal, and can you say whether its good or its bad but its trying to have three, maybe four monster Central Banks, not all on the same page, owning so much and managing so much, so janet yellen was on a clear path draghi kind of hints he wants to join that path rates go up. You know, we were down at this range before that two weeks ago. Draghi tries to walk it become a little bit janet yellen is dealing with the data, the weak retail sales, you know, all of this making it very difficult, and i dont think its going to get any easier listen, peter is right they are doing a pretty good job of managing, but the problem is they never manage to accomplish the policy mission which is to get better growth productivity and higher prices. Weve had the same growth weve had for many, many quarters and the problem is weve got all the collateral to go along with it big Balance Sheets and rates artificially low and europe will skyrocket and the currencies also do well the way we did during the heart quantitative easing, but at some point doesnt somebody have to look at the negative rates and the fact that none of them can make money which is holding them which is mostly Central Banks in Southern Europe guaranteed by the ecb i dont know now will end, but one thing i feel pretty confident of, its not going to end any time soon so the market seems pretty happy as evidenced by the equity markets. I would add one thing, rick what the inflation picture is doing is allowing the fed to concentrate on deleveraging its Balance Sheet rather than rates. Thats where they will concentrate, getting rid of some of the liabilities that they have built up, the trillions of dollars they have built up over the last few years. Joe, i think thats a great idea totally great idea it will be less disruptive so i dont have a problem with it, but issue i have and janet says we dont have pricings or growth to productivity, i dont see how any of the policy, after al