The 100 billion beer deal has been brewing for months is closer now to being a done deal, sabmillers board will recommend that Shareholders Approve a take overby anheuserbusch inbev, boosted initial offer to the postbrexit drop in the british pound. Facebook could you up to an extra billion dollars, a transfer of assets to ireland in 2010 and new york fed is asking the Philippine Central Bank to help recover 81 million stolen by hackers back in february. That 81 million belonged to the bank of bangladesh. Roeuters reports the money was mostly laundered through the casino industry. All right. Tyler, im brian sullivan. Check on your friday, the s p 500 despite that disappointing gdp print briefly hitting yet another new intraday high, it has since pulled back. The magic number to watch for a closing high 2175. In the meantime the nasdaq is trading at a 52week high itself up by big gains in google, amazon, and much more on those names ahead. We are also all over this oil slide. Crude oil back in a bear market. Crude oil popping a little bit right now 0. 3 , opened up lower. It could be a wild next two hours. Lets go or down to three hours, lets go to bob pisani downtown and take us inside the earnings numbers. Oil does seem to be another thing squarely on your radar. Yeah, the important thing here overall is july is shaping up to be a really good month overall. In fact, normally its the best month of the Third Quarter. So far its looking great here. I want to give you a quick recap of whats going on. The important thing is nasdaq tech stocks been doing well. The earnings reports generally holding up with a few exceptions. Small caps are outperforming. Mid caps are outperforming. Oechb the big caps, the s p up 3. 7 but overall still excellent performance. Broad market gains here. Take a look at the sectors here. We got tech, health care, materials, Consumer Staples lagging here. So the group that was a big Market Leader early on, Consumer Staples lagging, others have a problem as brian referenced be up in a month, oil we broke below the 200 Day Moving Average on oil today. We got a very disappointing report overall from exxon and chevr chevron, some big writedowns on major assets they had today here. Another big issue were still dealing with is the dollar. We dont know what direction the dollar is going. The dollar had been rising through much of the month on perceived economic strength in the United States. But in the last few days the dollar has been notably weaker. Overall that weaker dollar has helped most of the big kbhodty names, you can see some of the big commodities freeport freeportmcmoran, but brian, still at historic high despite disappointing gdp and bad oil. Well see where oil goes because we got the weekly rig count numbers, bob. Thank you very much. And yet again were seeing more drilling rigs being put to work. According to baker hughes we gained just three, but we gained three oil drilling rigs. Thats the fifth straight gain, crude oil up 8 cents but not a big move. The dollar playing a role as well. From the rebounding markets to an economy running at just above stall speed, senior economics reporter professor it says here, Steve Liesman here to explain whats holding us back from a robust rebound. Whatever you want to call me, michelle, is just fine. During the day. All you ceos out there wondering why the economy is so weak, dont blame consumers, theyre doing their share. Its your fault, the ceo, why were doing so badly. This is contribution to gdp. All the yellow bars to the right of the blue bar add up to 1. 2 . How did we get there . Surging consumer at 2. 8 , trade its about flat. But then you look at where things like government are down unexpectedly 2 for the quarter, investment down a half a point. And inventories down much more than economists expected. So thats the business side of the equation there. The fixed invest and inventories. After revision to prior quarters announced today we have now just finished a Third Quarter in a row of lackluster growth averaging as michelle said just 1 , half of the weak number we thought we had which was 2 . Barclays says sharp rise in Household Spending should keep the y growth above trend, but Prestige Economics says it confirms our expectations of a coming recession. This makes three consecutive quarters of recession of investment. We have now had those three negative quarters of investment growth and that is before weve seen any potential impact from the u. S. President ial election and the lack of confidence emanating that we could grow worse and the question is can the consumer continue to hold up this economy such as it is . All right, steve, stick around. From the struggling economy to the dog days of summer, were about to start august which over the past ten years has been the third worst trading month of the year. Here to break it down cnbc contributor ron ensan and katie nixon of Northern Trust wealth management. Ron, july has been a very good month for the markets basically. Yep. Maybe it was a relief rally after brexit. Okay. Fine. Yeah, i mean, as far as we know. London is still going through rather serious tremendoas a con. But the wheels didnt come off the cart here. Yes. But now youve got a very weak u. S. Print. Yeah. I think the reason the stock market levitates here because at least from my perspective takes the fed out for this year. Youve had some good earnings from corporations. You have Consumer Spending as steve said stronger than expected. So there are pluses and minuses. Its still very much a mixed bag when you look at the economy. There are pockets of strength, stock market reflects those, pockets of weakness, you see that and then you see it in the bond market where longterm rates remain depressed because they think the fed is in a box. Katie, your Investment Committee has reduced nonu. S. Developed market exposure by a couple of Percentage Points cutting back on high yield as well. Where does that money go . And why that change . So were still very positive on u. S. Equities, tyler. I couldnt agree more with ron though. Youre the first person in my whole life a Key Development here is that the fed is off the table this year. We think its low for long. We think maybe one rate hike in the next 12 months. This gdp print only confirms the fact this is not an economy Strong Enough to withstand a rate hike. And yet, steve, the meeting of the fed on wednesday everybody was talking about how theres a rate hike is back on the table. Everybody was wrong. What can you do . I think they misread it. I think they thought it was way more hawkish than it was. I think if the fed wanted to tell you a hike was coming in september, they have my phone number, they have any number of ways they can say that. I want to create one issue for investors. Economists went into this gdp number here thinking it was going ton to be 2. 5, not because theyre stupid. Because the source data going in, the individual reports still point to a 2 economy. And i think you have a big issue here, do you start thinking on a 1 economy thats weakening or one that with revisions by the way you can go up 1 percentage point easily. Its still a 2 economy. And thats a big difference in how you approach the investment outlook. We think its a 2 economy. So youre not worried about recession . Nothing in this number today suggests that we could go into a downturn, right . You dont get a recession with 4. 7 unemployment. And 2. 8 Consumer Spending growth. And jobless claims of the lowest level since 1973. Yes. On the back of all this stuff, is it possible. Yeah. That the gdp number is misleading . It is. Weve got a lot of research on this. Our Research Shows you plus or minus 1. 3 percentage point on any given quarterly report. So thats one thing. And theyve just sort of substantiated the work that we did looking back 30 years. However, you do have to go, you have that chart just up, its three quarters in a row now. Its something worth noticing. Im not quite sure what to do with it with an economy a lot of economists still has a 2 economy. But its only if ceos spend money could we get to a 3 economy . Absolutely. Nobody thinks this inventory drawdown is going to continue. Thats anomalous in a big way. In a big way. But the other thing this data show is where the deficits exist is exactly where we need the stimulus, infrastructure. Business investment. Capital investment. The consumer is doing fine. And theyre spending on experiences rather than goods. We see this data nonstop. So the consumer is okay. Unemployment is okay. Its good in fact. But, you know, the areas that would really put the economy into overdrive, get us closer to 3 would be as many have suggested how do you see the election play in this . Its a big deal as far as i can tell. The infrastructure component is the biggest to me. Absolutely. I think both candidates have acknowledged that. Ron, to your point, this is nothing the fed can solve. Right. Its a fiscal policy issue. The other way around, this plays into the election. If its really a 1 economy, then i think the opposition has a leg up here. I dont know if 2 is enough to keep the current incumbent in power or the incumbent regime in power, but 1 if peel are feeling that by the way Consumer Confidence not too shabby today. I heard over the last two weeks yeah, you heard a lot. No matter who you get, theyre both reflationary. They both want to spend. Talking people seeing a global move towards fiscal stimulus because Central Banks i wouldnt say theyve run out of bullets because i think that misreads what other feds have at their disposal, but the impact is less but if the election is good for the market. Right, if you think no matter what these two are going to spend money on infrastructure, fiscal stimulus the problem you have is we hear a lot of commentary from some businesses about the republican candidate and the potential change in things for like protectionism. Right. Unclear about the tax regime. So i dont think theres necessarily a negative reaction as much as theyre lets hold back, lets wait and see what happens. That is prima fash negative for the fed. Banks dont have incentive to lend money because theyre not making much money on that money. I wonder if theres thought inside the fed where okay maybe the gdp number doesnt merit the hike, but if we can incent banks a little more to expand credit because theyll make a little more money. A lot of people outside the fed think that. Some people outside the fed think that. Anybody inside the fed . As far as i can tell there is nobody who thinks that changing the rate is one by itself prompt lending. There is no demand for credit either. Thats it. Also more they ought to relax the rules for lending and thats a dodd frank congressional issue. The economy is messed up and there are things that both republicans and democrats know need to be done about it like relaxing dodd frank, and its not done because of gridlock. If the fed were to raise rates, one, two, three times, normalize policy, long rates will go down. The Banking Industry is not going to make money off a fed rate hike because youre going to flatten the yield curve and slow the economy. Even more than its flat already which is really astonishingly flat as we speak today. Youre absolutely right. I think the market would interpret that as a policy mistake if the fed did raise rates. I want to defend brian, there are people out there, smart economists who think that would help the economy. Steve, they have been dead wrong for six years. Then maybe its time to try something new, ron. If they continue to be wrong for six, nine, 12, 30 years, try something new. Thats the point. Yeah, fiscal stimulus, not raising rates. All i heard e from michelles excellent coverage at both conventions was that things are better the democrats especially, things are better than they were five years ago. Heard that over and over again. You heard that from democrats, right. Keep the momentum going. Well, now we got this print. So what story are we supposed to believe . I travel all over the country as im sure we all do, things are not for everybody, but for majority of people things are better in the u. S. Economy than they were five or six years ago. So why are we still in the same fed policy as five or six years ago . Because we have 2 growth. Thats says who . And you have a deflationary world. Says that outdated thats precisely the attitude of esther george. Economy doesnt allow the fed to move the way it would otherwise if we were just Strong Enough on our own. Right. All right, folks, thank you. Katie, ron, steve, appreciate it. Good to have you here. Thank you. Well, your number of the day is 1. 23 trillion, it has nothing to do with the fed. What that rather odd number has to do with some big cap stocks you know and why were talking about it, coming up. Ppening her this is my new alert system for whenever anything happens in the market. But thinkorswim already lets you create custom alerts for all the things that are important to you. 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Ask your doctor about cialis and a 200 savings card. My name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. About 4. 5 in a rather pickup in momentum in terms of trading volumes overall. This on the heels of headlines coming out of the information saying that possibly private equity firms are pondering a buyout of Hewlett Packard enterprise, goes onto name names like apollo management, possibly sniffing around Hewlett Packard enterprise. That is behind the stock move shares up by nearly 6 . Well keep an eye on this, but for right now, brian, thats your story. Thats a big story, dom chu. Look forward to update on that one. Watch hpe, suddenly a stock to watch. Speaking of tech, it is a tech stock world, and we are all just living in it. Did you know that the combined market capitalization of amazon, alphabet, google, and facebook, is 1. 23 trillion . Okay, thats nice. Well, how big is that . That is nearly twice the size of the entire market cap of the s p small cap 600, and it is closing in on the value of the entire s p mid cap 400, tyler, numbers you never cared to know but im bringing them to you. Three companies are worth nearly as much as the 400 biggest mid size public corporations in the United States. You know, the mantle of being the most valuable company in the world or in the country has not been a comfortable place for those companies kind of my point. Didnt pick it out randomly. I think cisco back in 2000. Thats exactly what i was thinking. 79 a share worth what 600 billion back then. Ge, microsoft, exxon, apple just, you know are you saying its a Sports Illustrated cover curse . Im saying its a bit of a curse. Exxon, the cyclical commodities, probably the one that hugs closest to the top of that, all the time, almost when oils very high. The revenue is unbelievable. And by the way facebook has the same roughly market cap as exxon but onetenth the revenue. Not saying anything. Well, these staggering stats and they are fairly big numbers. A lot of commas and zeros in there, folks, raise a question. Is there somewhat of a bubble at least among big cap tech . Joining us owns apple, alphabet, microsoft and not facebook or amazon. So well stick to the first ones, nancy, im not saying theres a bubble but the numbers are getting pretty big. As someone who owns some of these stocks, does it worry you at all . Well, i certainly think about it, brian. I mean, i was on this show when the day that google passed apple as the largest cap stock. And apple was trading around 89 a share. We thought that was a great opportunity to step in. But were more focused on valuation and what are we paying for future unit of sales is the best way we have found to measure technology. So google is an attractive buy at these levels. Apple is attractive not only on a relative pricetosales ratio basis, but also looking at its yield relative to the market in its past. Which probably pains apple executives to think that they are now being measured as Old School Value stock but indeed thats how we look at it. So were still finding value. Are you still adding to your positions . Or just kind of holding onto what you have . Because there are different measures of optimism and confidence those two things, nancy. No, youre absolutely right. Were at a pretty full position in google. We were accumulating holdings in the 510 range. With apple opportunistically we will look for opportunities to trim back our holdings because weve had a nice run with that stock, and microsoft is actually fairly valued. Its not cheap. So were not adding to our holdings in that space. Where were picking away aro