Target practice. Given all the volatility weve seen, are wall street strategists s p targets about to change. Do you have an answer, mandy . Theat least i have some very smart people joining me through the course of the hour with their answers. Welcome back, brian. We missed you. Begin with the wild swings in oil. Those prices were down bigtime earlier but weve seen a massive rally to the tune of about 6 now building on the two previous big up days, keep in mind. But crude has now completely obliterated all of the losses it saw in august. It was down about 20 . Jackie deangelis joins us with more from the nymex. What was the major spark in this turnaround . Crude, jackie, and do people believe in it . When you look at session lows, 43. 60, were up more than 4. No one was looking for it in the morning. But the headlines came out that producers are now willing to talk about production globally. Opec saying that it stands ready to talk to other producers about the market but that it wants to do it on a level playing field. Also coming out of the kremlin, that venezuela and russia will also have conversations to stabilize global oil prices. Add to that, the eia data shows production declined in june. It sends these prices higher. Black swan events, mandy. Back to you. Stocks are just only slightly to the downside now. The dow is only down by about 50 points on this final trading day of august. Weve cut those losses substantially. Havent we . We were down triple digits. It is odd to see oil react so violent violently. A lot lf traders are skeptical on why the market moved up like that. 1 1 advancing to declining stocks, we were notely declining to advancing early on but that rally helped drags stocks up into positive territory. Volume the low side of heavy. Were heavy for a day in august, last day in august. But compared to last week, decidedly moving to the moderate side. Volatility has been very narrow, only threepoint range in the vix. That would have been a lot two weeks ago but still elevated today. The xop, apropos what jackie was talking about. Youll see the big rally weve had in the last few days, we were up almost 20 , but particularly strong today, up 2. 7 . A lot of strong exploration and Production Companies started risely very quickly this morning on some of these vague discussions on opec that they should be talking to other countries about oil. Oasis, consol, denbury, northern oil. Some of these are up 15 , 20 in the last several days. Nobody group going green today, global industrials. Why they would go up on the oil is not clear but they rallied in the middle of the day. These stocks have been dramatically oversold, most down double digits in the month of august. Finally, im seeing a lot of end of month volume in some big what you would call s p sector names. Industrial, energy, financials. You can buy the whole market with these essentially. Volume is very heavy. Like 250 of normal. Were only halfway through the day. This tells me there are guys at the end of the month who are probably out selling these as a hedge against positions they already have. That would make sense when considering the declines that theyve had. Feels to me like you are pea a little skeptical about the overall move today, the comeback. Opec says well maybe we should be all talking to other countries. Up 10 . Thats a pretty violent move. A lot of people think is that really sustainable, can they make a deal with somebody else. Well get back to you later on. Domini chu has a quick market flash. Mandy, technology is the secondbest performing sector in the s p 500 today just behind energy. The only positive sectors on the day so far. Chip stocks are among the winner winners, sandisk, micron and intel almost all up 3 . Most of the tech stocks are down by 10 or more. This is up from 97 last week. Some stocks in technology catching a little bit of that bid. Well see if it continues in the next hour. We got pretty gbig news out of google. Trying to woo android owners with an app that works on the iphone. Josh. Brian, in the smart watch wars, remember apple has enjoyed this relatively strong start. But now google taking aim at its big rival in cupertino. Today google announced its created an ios app for android wear. Iphone users can now use android smart watches. The app, free. Rolls out today to apples app store. When the androidwear smart watch is connected to the iphone, users can get notifications, voice queries and google created apps like google fits. There are though some caveats. The app only supports the lg watch urbane, along with all future android wear watchers. Users need i phone running ios 8. 2 or higher. Third party apps wont be supported at least right now. According to idc, apple shipped 3. Million watches in q2. In all of the last year acorpsed to a Tech Research firm, only 700,000 android wear watches shipped. The question is whether this news today will move that needle for android. Brian, back to you. Unless you build more outlets in your home it could be hard to charge one more item every single day. Big kudos to our own steve leisman. Comments by fed vicestand Stanley Fischer to steve in jackson hole, wyoming over the weekend. Earlier this week, near fed president bill dudley called the case for a september rate hike less compelling. Would you agree with that . I think it is early to tell. In the change in the circumstances which began with chinese devaluation is relatively new and were still watching how it unfolds. So i wouldnt want to go ahead and decide right now what the change what the case is more compelling, less compelling, et cetera. I didnt get a chance to interview bill, so my question to you then is did you find the case for september previous to be compelling . There was a pretty strong case, but it was not a conclusion yet. It was a case. When we had a chance to chat in february, you were fairly blunt, as sometimes you are, said its time to raise rates. I said that . You said that. I can get you the quotes. But my guess is you wouldnt disagree. Do you still feel that way . Were heading in that direction. Whats happening in particular with the labor markets and well have to see if that continues when we get the data next week. Has been impressive and the economy is returning to normal. Were not certain were there yet. Wouldnt you think there would be an overwhelming case though, one way or the other, that you would be sure and confident that, look, theres this unimpeachable case that it is time to go forward . When the case is overwhelming, if you wait that long, youll be waiting too long. So its always a bit of a confidence theres always uncertainty. And we just have to recognize that were beginning a process that we anticipate, when we do it, will be relatively slow, and that the first move presumably will be from 0 to 25 basis points, to 25 to 50. Were not moving from a wonderfully extremely expansivi Monetary Policy to a tight one. Weve been adjusting slightly and well probably wait a while before doing something else. Zblm let let us now bring in that guy, steve leisman. Credit where credit is due. Nearly every Market Research note that i got this morning, strategy piece, whatever, referenced that interview. Great work, as always. The stuff that he said about, well, if you wait too long youve probably waited too long. That is interesting. Im going to just back off that. Kudos to fischer. He wanted to talk and i thought he was really interesting. And if you do nothing else but listen to those what was that, minute and a half, two minutes of sounds, to understand where fed policy is going in september. I thought he was a pretty clear. Ill just say i was the guy that asked a couple of questions and got out of him some really interesting answers. He said, ill paraphrase, if you wait for perfection, youve waited too long. So many notes i got this mornings referenced this is hawkish, this is indicating a bias toward a september rate hike despite everything thats going on. Would you read it that way . In the first instance it is reality. Right . The data you are getting now is data in the rearview mirror. To me when i look at that, brian, it tells me about the decision the fed has to make. It is a judgment call. Here we are in the middle of this, Congress Wants it to be a rule. But what fischer is saying hes the guy who wrote this textbook on Monetary Policy essential essentially. Hes saying at some point you have to take a leap of faith in the impressive u. S. Economy, in the direction of inflation, and in your belief in what the right policy is and thats the way it happens. Awesome interview, as always. Thanks, brian. Lets bring in joe into this conversation. Chief u. S. Economist for Deutsche Bank. Do you think, joe, the markets hawkish reading of fischer is the right reading just because he didnt rule september out . He just basically laid out the fed tendency on where rates are going. The market thishnks theres onla 40 chance the fed goes in september. I thought fischer played it right down the center. To me dudleys comments are more interesting, because less compelling means obviously the probability in his mind a september move has declined. Dudley has given a lot of interesting speeches over the years and hes tended to be very consistent and predictive of the general committee. Here is a way of putting it. How do you think the Financial Markets are going to behave between now and the September Fomc meeting . And if they are rocky, how much do you think the fed is going to take that into account . Based on data the fed should have hiked a while ago. But your question on the markets is pertinent because that will determine whether the fed moves. If the market doesnt have it priced or sake of argument with be say the market goes down to 30 . Fed will have a Real Communications problem raising rates even if the fundamentals warranted if the Financial Markets dont expect it because this fed has been loathe to disappoint markets. Its been their tendency and this it almost feels like those 0 rates are more in the interest of the stock market. Or the bondholder. Steve . I was just going to say, i think thats exactly why fischer spoke and why he said what he said which was to redirect the needle back to the center. If it moved towards not moving in september after dudley, what fischer said moved it back toward the center. Maybe it is a 50 50 chance irrespective of what those fud funds futures probabilities say. The reason is because if they do decide to move in september, they do no the want an outsized and negative Market Reaction. By talking about the case and the situation right now, he moves them back to the center, gives them flexibility to move. Steve, look. I had them going in september. I hope they go in september. The point is, why were arguing and debating this move is to me such an insignificant its remarkable. The intellectual company tal that weve dispensed as an industry on the feds first move is just totally absurd. Fischer should have basically said, yes, were going to move. I dont know why were debating these 25 basis points. Because, joe, the Federal Reserve is kind of like sports radio. Right . The predictions for the next seasons super bowl winners start the day after the last super bowl. We have been talking about the Federal Reserve for months. I was joking with steve that if they dont raise in september i may not shave until we get an Interest Rate hike but i dont think ill be allowed to do that. As long as you shower. You can maybe not shave. The thing is, employment rate is 5. 3 . Everything i see says it is going to be below 5 by year earned, yet the fed is still worried about Market Reaction to one or two hikes. Unemployment rate was me, 64. Now the Unemployment Rate is man mandy 53. To what degree does the seasonality make it a little bit misleading . I wrote a piece over a month ago that talked about august being historically soft. I said i hope the fed has the courage to look past it. Im not so sure. Thank you very much. I think stably was being a grownup, looking at the market turmoil and saying, you know what . This is not decisive for us. Looking at the data and saying we have to make a bold step here. If the fed was reliant on market moves big hedge funds can move the market around and directly affect the fed. Thats the problem. That should have been gone a long time ago. And it was reliant on the height of anchors with which to make decision on policy, wed be in big trouble. Its come down to that. By the way, bottom line, you expect september as well. I still have it. Mandy, joe, thank you. Steve, thank you as well. It has been nearly a month since puerto ricos historic debt default. Appears things could get much, much worse. Morgan brennan is on that story. Thats right, brian. So more pain for puerto rico. There are three key deadlines looming. Were going to break down what investors need to know. Thats as Tropical Storm erika moves out and the fiscal storm moves in in for puerto rico. More when power lunch returns. My name is peter tran. Im a gas service representative. Ive been with pg e nine years. As an employee of pg e you always put your best foot forward to provide reliable and safe service and be able to help the community. We always have the safety of our customers and the community in mind. My family is in oakland, my wifes family is in oakland so this is home to us. Being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. Together, were building a better california. Welcome back to power lunch. Phillips 66 moving higher today. Warren Buffetts Berkshire hathaway disclosing a roughly 11 stake. Phillips up 10 this year despite oil prices. Today it is up by nearly 3 . Planet fitness is also on the move today with jeffries beginning coverage of the fitness chain with a buy rating calling it a well managed company that continues to gain market share and expand its profit margins. Shares up by 5. 5 . If there wasnt already enough going on around the world, do not forget about puerto rico. We are coming off a big weekend for puerto ricos debt crisis. Lets find out why with morgan brennan. Thanks, brian. As the heavy rains of Tropical Storm erika are pounding puerto rico, the commonwealth is calling for a rain delay in its debt restructuring proposal which was supposed to go to the Governors Office yesterday. The governors chief of staff extendeded deadline to september 8th. Investors and analysts had been eagerly awaiting this proposal by the u. S. Commonwealths 72 billion in debt was called unpayable. A month after that announcement on august 3rd, puerto rico failed to make the majority of a 58 million payment issuing only a small partial payment on its Public Finance corporation bonds. Flashforward to this week. Today there is a deadline for the islands water and Sewage Authority to make a 90 billion bond payment. This is on the heels of a failefailed 50 million bond sale. Then tomorrow this will be the biggest deadline to watch this week. Prepa, the port rekae electric Power Authority must have a restructuring deal with its creditors. This isnt a payment. But if a deal isnt reached, the creditors, including bond insurers, assured guarantee and mbia as welling a some hedge fund heavyweights could head to u. S. District court which could trigger even more financial pain for the deadladen u. S. Territory that cannot declare chapter 9 bankruptcy. We have a lot of deadlines looming this week to keep an eye on with puerto rico. Forget San Francisco, guys. This American City is turning into a redhot place for startups. Plus, a number of stocks are in bear market territory off 20 or more from their highs. Well look at some names that you might be interested in at these levels. Youre watching cnbc, first in Business Worldwide. Dont change the channel. 7 [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Shares of online Home Furnishings retailer wayfair are sinking after sit krcitron rele report saying this is way below the current price. Despite the decline, shares still above the october ipo price. Wayfair declined to comment on the report. To the bond market now where Rick Santelli is looking at all the action at the cme. How are things shaping up at the start of the week . Its a lot like the discussions going on with the fed. Half the people think theyre going to do one thing, the other half think theyre going to do another. With the yield curve, the front half like the following intraday of 3year note yields, have been higher. Its been a flattening day. When you on long end, theres some doubt. An intraday of 10s. But i want to point out that 10s and 30s which really lagged early, or at least moved up in yield toward unchange, 2day dollar index. Yeah, down about oneeighth of a cent but were off the lows that we idle waiting for the data on what to expect with that september meeting with the fed. Gold prices getting ready to close. Slightly to the downside. Currently sitting around 1,132. Down by 0. 1 . Over the course of the month gold is up 3. 5 for august. The dollar meantime, the dxy, is down. Thats on track for a monthly loss of about 1 . Moving in opposite directions there. Dxy at 95. 93 as we speak. You can forget San Francisco and silicon valley. Who cares . Another American City is firing on all cylinders when it comes to new business startups. One could say it is a true lone star. Kate rogers here now with that story. Well, its austin, texas. At age 14 Isabella Rose taylor is one of austins rising Small Business stars. This year she was awarded emerging lone business woman of the year. She graduated high school at 11 and went on to show at both new york and austins fashion weeks even landing her clothes in nordstroms stores. It all started with art for me. Ive be