Statement he made midday today which well talk about. Meantime, how about stocks. The s p could see its third 1 gain this year just in that territory right now. Just under well tell you whats behind the move higher and see whether we can hold the gains were drifting down a little bit in the final hour here. And this should be very interesting. After the bell, james damore, the engineer fired from google because of his internal memo on diversity. Hell be talking to kelly oneonone to give his side of the story. Looking forward to that an hour from now. He hasnt been shy about it so far. Right. Let begin at the white house where President Trump is about to address chinas trade practices. Onlion javers eamon javers is standing by. Reporter should see that live on camera in a couple of moments. The president will sign a document which directs the u. S. Trade representative to determine whether or not to investigate any china laws or policies that may be unreasonable or discriminatory related to intellectual property and technology transfer, so thats the official designation here of what the president is doing. Obviously the symbolism here in terms of the relationship with china is so very important officials here at the white house though saying this is totally unrelated to the north korea talks that are going on simultaneously that the chinese are so important on, and they are also saying with this memo hand what the president is doing here is standing up for American Companies and workers, and speaking of American Companies, we saw this flareup of tensions earlier today between the ceo of merck and the president of the United States in response to how the president handled the racist violence we saw in charlottesville, virginia over the weekend. The ceo of Merck Ken Frazier putting out a statement earlier today in which he said our countrys strength stems from the diversity and contributions made by men and women of different aiths, races, sexual orientations and political beliefs. As ceo of merck road a matter of personal conscience i feel a responsibility to take a stand against intolerance and extremism. With that frazier resigned from one of the president s ceo Advisory Councils. The president responding within the hour on twitter saying that now that ken frazier that is resigned from the president S Manufacturing council, hell have more time to lower ripoff drug prices so the president deciding to go after merck, go after the pharmaceutical industry and go after ken frazier directly in response to ken fraziers statement of conscience about how he felt about the way the president handled the violence in charlottesville. Meanwhile throughout the day, weve seen other ceos reacting, also denouncing that violence but many of them saying that they are going to stay on the ceo Advisory Council here at the white house including jeff immelt of ge, Andrew Liveris of dow, Stephen Schwarzman of blackstone hand michaand michae dell, all indicating they are likely to stay on the council now. Divided opinion in the wake of the president s handling of that racist violence in virginia. Guys eamon, back on the trade investigation. That is within the rules of the World Trade Organization as i understand it, yes yes. They are not violating any rules by conducting this investigation. Reporter no, its simply authorizing u. S. Trade representative to determine whether or not he wants to conduct an investigation under the terms of the u. S. Trade act, but, yes, you can emergency that the usd r will look at the president s announcement and decide to investigate. What they do from there is an open question, but i think the important thing today is the symbolism of the president doing this in the white house today, especially in the wake of his criticisms of the chinese for not being forceful enough in terms of north korea the officials here saying trade is trade and National Security is National Security, and these two things are not related, but the president himself has linked the two things over the course of the past year saying that the United States needs north korea needs chinas help in terms of north korea and is willing to be a little bit more flexible on trade. If that help is forthcoming, the president is very frustrated with china and hasnt gotten the help that we would like to see and now were seeing a very symbolic signing ceremony at the white house in just a couple of minutes time. Eamon, a few hours back when the president came out with a strongly worded statement about what happened over the weekend hell now have the opportunity if he chooses to answer questions thrown at him, right he made a statement and walked out. Theres been a couple of hours now for him to gauge the reaction and for him to say anything further now, correct . Youll see reporters in the room there will be Pool Reporters in the room and they will try to throw some questions at the president as they always do and its up to the president whether he answers those or not. Typically president s try not to answer them because they dont want to encourage the press to shout at them all the time but the president came under intense criticism for not responding to questions about White Nationalists and nazis and not specifically denouncing them the president might want to go further out of his way to do that today, or his team might feel that hes very much cleaned that particular problem up today and they are ready to move on here okay. Eamon, thank you see you later. You bet. Well wait for that event to get underway here at the white house and well take you there live when that does happen we have come off the highs here we go the go to the white house. They have been looking out for their interests. They have not been looking out at all this is what i promised to do as a candidate for this office, and this is what im doing right now as president ambassador leithowser, you are able to look at all the trademarks, patents, trade secrets and other intellectual property that is so vital to our security and to our prosperity we will uphold our values. We will defend our workers, and we will protect the innovations, creations and inventions that power our magnificent country. Thank you and god bless america. Thank you all very much. Its a very big move thank you. And this is just the beginning, i want to tell you that. This is just the beginning wheres raytheon raytheon, congratulations. Mr. President , can you explain why you did not condemn those haters over the weekend . They have been condemned. And why are we not having a press conference you said on friday wed have a press conference. We had a press conference we just had a press conference. Can you ask me some more questions, but it doesnt bother me at all. Doesnt bother me at all i like real news not fake news. Mr. President , havent you spread a lot of fake news yourself, sir . All right well, theres the answer to kellys questions, no answers on the issue over the weekend eamon javers, the president saying that hes said apparently all hes going to say on the issue in charlottesville and then the process begins now on the trade investigation with china, and im curious he pointed out raytheon to begin with, i guess. Thats one company thats been identified that may have been hurt by trade practices with china. Is that the idea reporter yeah, thats right. They have talked about intellectual property and a lot of companies have had trouble in terms of intellectual property in china, and you heard the president there speaking to that issue as well. Likes the signing ceremonies what he was signing there, of course, not a law. Hes signing an executive memorandum that directs the u. S. Trade representative to determine whether to investigate any of chinas laws that might be contrary to u. S. Trade. This is a symbolic step and important and important for the president to do it on camera and also important for the president not to answer questions from the reporters. I think that was jim acosta of cnn who was in there as the designated Pool Reporter today the president denouncing him or the media generally saying as fake news. Saying weve already held a press conference you get a sense of the president s mood there as he left the event. By the way, raytheon shares up a third of a percent today under their alltime high. Eamon javers at the white house. Lets get to the Closing Bell Exchange with the market up 129 points. Back below 22,000. Joining us right now, thats Oliver Porsche with us at post nine and so is steven sarge gill foy and holly liss from btig sarge, you and i were talking earlier, do we call this a relief rally today whats your answer after last week the markets struggled when it did, seemingly as tensions grew with north korea. How do we define todays market option they will throw something in the water near guam and all bets are off. If the threat is truly starting to abate, then we can get back to worrying about earnings per share and central banking, and the next big bumper and tomorrow we have retail sales tomorrow as far as home depot and walmart and theres a lot to look at next week and that really should be our focus all get near vows with things like global thermonuclear warfare are discussed. We had a 2 meltdown of the market last thursday, and then we stabilized friday and came back today i dont think the market is real el focusing on this all much i think they are focusing more on what happened with the investigation into chinese trade and lets not forget the industries into the steel industry, steel dumping based on National Security concerns theres a lot there and that probably has more to do with north korea than anything else. Oliver, i was looking at some of the stocks, dont know if you used the selloff yesterday to increase or add to positions, smuckers on here, cisco, adp. Not a lot to add other than new client money hand maintain our stance that right now after secondquarter earnings season things are looking pretty solid for the market youve got an environment where you had tenplus person, growth for the adp and an environment where inflation is very low, certainly below the 2 target of the fed meaning that further Interest Rate hikes could be put off as a result. You know, youve got a decent growing economy. Youve got some good data. Youre heading into the latter part of the year at this point which tends to be one of the Fourth Quarter tends to be one of the strongest quarters of the market of all time generally speaking theres lots of reason to be optimistic, and we think that the market judged it right hon friday by shrugging off north korea and understanding so far the geopolitical events tend to fizzle out over time. Holly, on the fed, new york president bill dudley said about an hour ago he would imagine in their september meeting that they will begin the process of selling off some of the bonds on the feds Balance Sheet. Do you think the market is ready for that is that priced in at that point, or what are you seeing i dont think its entirely priced in yet, bill, although he did make those comments and we saw treasury markets sell off a little bit hon those comment, though if you look at it he didnt say anything really different from what hes been saying regarding his outlook for the economy. He still expects one rate hike by the end year if you expect a lot of fed members, they will say a lot of the same thing and whether the market is pricing that, its the same story im not quite sure if they said they will start reducing the Balance Sheet in september or they will start laying more groundwork and details for them for the markets to digest. Even though a lot of the fed members have said they dont think that theres going to be big repercussions, big market moves, volatility regarding their Balance Sheet drawdown, i dont know that i would agree with that statement. After all, we did see a big impact when they grew the Balance Sheet. I dont know why we wouldnt see an impact when they start curtailing the side of it, and maybe it doesnt come immediately. Maybe it comes a little bit down the road as they start doing more plus, i dont know that they are going to start rates or continue to raise rates while they are drawing down the Balance Sheet at least to start, so maybe once we see both of those take place simultaneously, then you could see more volatility and more Market Movement naff. All right we dont have much time, oliver, but were you looking at adp before bill ackman we were looking at it and we increase it had when bill got involved. Riding coattails. Yes, exactly. Whats your support level 2458. We didnt get that close got a little support at 2462 2469 on the s p has been an absolute stop sign get up there well stop like we did earlier this morning 2458 is where you have to worry. Numbers to keep an eye on appreciate your thoughts on todays market action. 46 minutes left in the trading session. Here we go into the close with the dow up 129 points, and whatever were calling it, a relief rally weve got plus signs today disney announced of course last week it was pulling its movies from netflix soon and now netflix is stealing a top hitmaking producer at disneys abc unit a little tit for tat up next, what this means for netflix future. James damore, the Google Engineer fired for his controversial diversity memo, hell join us and explain why hes exploring legal action against the tech giant. We love hearing from you, folks. Reach out to the show on twitter, on facebook send us an email. Youre watching cnbc, first in business worldwide a used car, truck, suv. Okay plus signs today the dow now up 133 points. Was up 160 that was our peak for the day and above 22,000 for a time. The big gainer, look at, that the russell, the nasdaq is no slouch either. A gain of 1. 25 today. And netflix scoring a big win after scoring producer Shonda Rhimes from abc. Reporter one of the most successful names in broadcast tv which makes this such a big win for netflix as it works to reduce its reliance on hollywood company. Her Production Company will bring new shows to netflix while their hit shows greys anatomy and scandal and how to get away with murder will continue to air an abc they have announced deals with David Letterman and the Cohen Brothers and its also the latest split between netflix and abcs parent disney after last week disney announced its pulling films from netflix in 2019 to create its own streaming service. That news pushed netflix shares down 5 last week. Abc studios president Patrick Moran saying the network will continue to benefit from shondaland recognizing the success of their abc shows and other products in development. The shondaland imprint will be always be a important part of the abc studios. We wish them the best in the new endeavor netflix has a reputation for big production budgets and allowing a lot of creative freedom. Well very to see how this can help netflix grow its Subscriber Base guys, back to you. We shall. Be barrons out with a harsh cover story saying shares could fall substantially by 2020. Netflix not only faces competition from disney, facebook and amazon, but that it really doesnt have the cash to create enough original contempt you know. I just realized the blockbuster sign there im slow to the uptake. It was pointed out to me, too. Full disclosure. With me here is the interim editorinchief of barrons. Com. They dont have a problem attracting toplevel talent like Shonda Rhimes and David Letterman. Miller world, its the stuff they need to do if they are going to survive and less than the individuals or the individual company, what it means is suddenly netflix is conflicting with its distribution partners. Thats a big problem. Yes. If you think about back to the days when, you know, blockbuster was filing for bankruptcy because of the netflix competition, it was a wonderful new platform for disney and anybody else. Now suddenly it has to fight for every one, and thats why burning cash at an increasing rate is really disturbing. I mean, its a fairly mature company, but they went from 100 million, you know, in 2015 to 1. 7 billion last year to a rate possibly 2. 5 billion this year, an heres amazon looming which sneezes at Free Cash Flow all the time. I now the commonality was interesting. You look at how viacom had super high debt levels and it has a movie studio so is the idea that netflix is kind of making the wrong decisions now while everything looks great that are going to leave it effectively paralyzed five or ten years down the road in fact, not only are they not making the wrong decisions, i think they are making a lot of right decisions. I think the problem is the market has assigned them this insane multiple. I realize this level is not that meaningful but, you know, we pegged it at 207 times this years earnings, and frankly those are kind of aggressive earnings, as we point out in the article whereas time, hbo, takes a writedown when it discontinues a show and netflix keeps it on the books, arguing, that, well, well continue top stream t. Fair enough even, if youre looking at industry comparisons its not a great directional that all these things are moving in. What about the recent acquisition they made ofthis small comic book company i mean, this would seem to try and get around losing some of their inventory that they have from some of these partners that they have had in the past. Buy your own. Thats the point i made. This is what they absolutely need to do, but i sort of challenge anyone to name five miller world characters. Its not marvel. What that does is theoretically lowers their production costs, right . Absolutely, but are you going to continue to pay for netflix so one of the things were seei