Board. Cac is the biggest gainer of the three major averages up by 1. 1 the dax, up by 0. 9 . The dollar, take a look. Youll see that the dollar is up against the euro, trading at 1. 17 up against the yen at 110. You can check out crude oil prices yesterday a down day for oil you saw oil stocks come under significant pressure this morning wti up by 33 cents to 47. 88 a couple of big stories were watching in the business world, well get to the politics of it all in a second, wells fargo announcing big changes to its board after a tumultuous year for the company. The chairman, Stephen Sanger will be stepping down at the end of this year former fed governor Elizabeth Duke will replace him. Wells fargos two longest serving Board Members are also stepping down. Last night wilfred frost asked incoming chair Elizabeth Duke whether she was confident the banks recent turmoil was over she said its hard to say but what were finding is the better we get at Digging Deeper and looking at various processes the better we get at risk management, the more issues we might identify overtime the new information revealed will lessen, but its not the time to say weve found everything and its all behind us a lot of people reading into that, that that means theres more to come re code reporting early uber investor calling on benchmark capital to leave ubers board. Pishevar is accused of working with another major investor to remove kalanick and huffington from the board pishevar is suing kalanick and then in earnings news, shares of Urban Outfitters moving higher. The retailer posting earnings of 44 cents per share, compared to 33 cents samestore sales fell 4. 9 that was better than the 6. 4 drop that wall street expected that stock up close to 18 off the lows. On the agenda july Housing Starts and building permits, both out at 8 30 a. M. Eastern. At 2 00, well get the minutes from the fed meeting on the earnings front. Target is expected to report at about 6 30 a. M i have no idea what to expect there with target. Theyre in malls some standalones, but some malls. Do you think theyre okay . Are they multi channel thank youing up ithumbs up target according to the sorkin family feel, its Getting Better thats our own good place to go. Their estimate is 1. 19 versus 1. 23 a year ago. And i should tell you theyre moving to the upper west side. Just like you youre already there all right. After the close well hear from cisco with a c. Sysco is the other one. And l brands. President trump doubling down yesterday on his initial response to charlottesville during an explosive back and forth with reporters late yesterday. Eamon javers is with us on set in person. He was there yesterday good morning. The president dramatically reversal here yesterday from where he was the day before. You remember that the weekend qai came, the president was criticized for saying there were blame on many sides for that violent rally over the weekend then he specifically called out the kkk and White Supremacists yesterday at a press con freps at trump tower the president went back to both sides rhetoric that he was criticized for over the weekend. Heres what he said yesterday. I think theres blame on both sides. I have no doubt about it you dont have any doubt about it either. Only and if you reported it accurately, you would say it you can see the frustration, emotion in the president s face there. This was an angry President Trump who felt like hes been criticized hes been fed up had enough of that criticism, lashing out at some of the ceos who left his Manufacturing Council over the way he handled events in charlottesville. He said they were grandstanders. Yesterday he offered another explanation for why some of them left his council some of the folks will leave, theyre leaving out of embarrassment because they make their products outside ive been lecturing them about you have to brick it back to this country you cant do it necessarily in ireland, all of these other places you have to bring this work back to this country. Thats what i want the president s remarks including remarks he made about robert e. Lee were widely criticized by republicans on all sides of the aisle in the house the Senate Paul Ryan saying we must be clear, White Supremacy is repulsive. This bigotry is counter to all this country stands for. There can be no moral ambiguity. Well see where the rest of those ceos who were on the Manufacturing Council will go. A number said they will stay on the council. A number said they will withdraw the larger bulk said they had no comment whatsoever the number of emails i received from ceos, in part because i think i had written the column the day before, most off the record, people writing this is beyond the pale, the whole lot of it. Any of them from people staying on the council unfortunately yes at least at the moment they have not pulled their names off of some of the councils i should say theres a variety of councils now. I dont want to mix them up. Theres the Manufacturing Council. Innovation. Im people who emailed, they were on some other councils. Nonetheless, you have david duke supporting what the president says whats going on inside the whits house . You see reports that some of the staffers were perplexed, stunned. This press conference was supposed to be about manufacturing, infrastructure in the United States. They had a topic that they wanted to discuss. The president was prepared with hearts to discuss it but he wanted this he wanted people to ask questions. He said are there any questions, if anybody has any questions, please go ahead. He knew he would get questions about the ceos resigning you could see the anger. This is something he feels deeply about he had a statement in his breast pocket, in large letters the original statement by the way, we had trumka, we had andrew liveros hes staying. Trumka is out is there any sense that the people inside the white house are going to say anything . I was watching gary cohn. Gary cohn and Steve Mnuchin standing right next to him all the screen shots of general kelly. They made a big deal out of that i dont know what was in his mind they said his body language was obviously anging i was watching gary cohn closely. Watching his body language he is the one most taxed with tax reform he was looking down, looking to the side i couldnt get a good read on where he stood to this elaine chao, shes married to Mitch Mcconnell who the president has been attacking she said she stands by both her men. Im not sure if well see statements of protests, riz z resignations, but the damage he did to his own political standing, when he talked about there being fine people on both sides of the debate. There were people marching with swastikas at that rally, people chanting about the jews at that rally. Its a tremendously difficult thing for the president of the United States to say there were very fine people marching alongside the White Supremacists the daily news lays this out. Sim sympathy for the devils. The New York Post says they were not all nazis, calling it out. Is this. Reporter the Republican Party wants to be . Do they want to litigate robert e. Lee versus George Washington . Do the ceos and mainstream Business Community want to be here all these businesses have to deal with a broad swath. After north korean and the news that could have been positive, why did trum want to relitigate any of this yesterday . How in his mind does he feel what he did yesterday serves his own cause in any way, i dont know very defensive. Weve seen it again and again. But yesterday was a day when you could have focused on infrastructure say i finished what i was saying yesterday. Im on the record saying theres no ambiguity here. This is ambiguity bringing this back up thats what im saying. He should have said theres no defense of White Supremacy then gone on to they blinked in north korea because i was showing a sign not a single question on north korea. Not a single question on north korea. He wants to talk about robert e lee fshg t lee, the confederate general, and mention him in the same sentence as George Washington. Where do you think he ultimately will land on steve bannon sounds like he will land on steve bannon yesterday he called him mr. Bannon three times he very much distanced himself from steve bannon. Saying he came in late he already cleared the republican field he said well see what happens with mr. Bannon. Bannons departure would be something that people who are critical of the president s links to the all the rigtright is alt right based on White Nationalism . Ill have to look that up to see if there was fine individual there inherent in all the altright stuff, is na is nationalism. Steve bannon has been the chief strategist, so did we really have a good feel for what the altright stands for i dont know. I dont know what is in Steve Bannons heart the president came to bannons defense in that defense. I thought it was populism, americanism, nationalism. Itits a spectrum with 0 shades of gray along the way when you have people carrying torches and giving nazi salutes and youre doing anything if youre anywhere near that. Right youre in very, very tough moral territory. We were talking about this earlier. Im not sure i would fire him. Youre very machiavellian just hear me out. Keep your enemies close yes there would be headlines in the shortterm, but i think for him litical icalpolitically in m it would be difficult for him. They already fired Reince Priebus. Would you be afraid of Reince Priebus versus steve bannon . Theres an old phrase in politics, would rather have them inside the tent looking out rather than outside the tent looking in theyre not talking about looking in that statement. Do you want steve bannon inside the tebt or outsitent or outsid tent and you are embracing something that is getting dark every by the day the president is awake, lehes tweeting you see this no. Ill read it. Prp ju President Trump just tweeting amazon doing great damage to tax paying retailers, towns, cities states throughout the u. S. Being hurt many jobs being lost jeff bezos, not a new target, but a target nonetheless i did not see the headline in the Washington Post. Jeff bezos personally owns the Washington Post. If youre a president who is concerned with jobs, you have to be looking at the Retail Sector now. The Retail Sector has been taking it on the chin. An enormous amount of loss there. I dont know how the president comes back from what he did yesterday. I dont know why he chose to do what he hose to do yesterday the anger and emotion is there his idea was cocondendemn vie on both sides, then you get into a crack mire quagmire. It doesnt mean mean everybody on the left side was a person you want to associate with either i dont think they were all pushing back against racism, if they were, protesting racism, thats clearly good verse evil i dont know if there were fine people on the over side. Thats a tough one if david duke really believed that he was getting defended, you have a problem which is what john oliver said nazis are like cats, if they like you, its because theyre feeding you. So anything that looks like an endorsement, theyll grasp at straws why would an american president want to be there this goes back to something we talked about on the show yesterday. The two sides of the country pulling each other apart t and traditionally you run in the middle were seeing two sides pulling further apart. The extremes are getting larger on both sides, this president has cast his lot with the far right. He did it again yesterday. He will govern from there. We have never seen that in our lifetimes from an american president. We will see what happens the effect of it on corporations and people in boardrooms across the country is theyre being forced to make a decision about where they stand we saw a statement from walmart yesterday, which i have never seen anything like that. Putting out a statement criticizing the president for the way he handled that racist violence in charlottesville. Was there reporting where bannon said dont go tough on these guys there was some reporting i cant rer verify that. I tonight know if we seen reports of that. Nazis vote, too dont be too tough on these guys effectively that was the reported message. I dont think you can put this on steve bannon, there are also reports that the presiden has not talked to steve bannon has him in the dog house so to speak. This is the president of the United States saying what he wanted to say in front of a microphone, in front of the cameras and in front of the world. This is what he chose to say just stuck with condemning violence on both sides, just stick with that. This was a layup politically. Ceos do care about this issue, the markets not so much its personal you canter pret the marke cae markets. Spiro agnew had to retire for tax things nixon was left markets got nervous. Now people are saying pence is waiting in the wings whats different now, too, the country was divided in 1968, in watergate weve seen this movie before i feel we havent. That was in an era of centralized mass media now we are seeing a part sb pli partisan politicized media. Especially with social media. But the markets are up big. Up again today sharply you look at the coverage last night, maybe these guys know something. What the president said has nothing to do with earnings. No, but if your country is being pulled apart at the seams, you would think at some point it would affect the zeitgeist of the stock market joining us now is doug cote. Nuclear destruction is not imminent maybe we got that going for us Steve Whiting also joins us. We didnt even talk about iran they said they would restart their Program Within hours didnt see that comment yeah. Why are you bullish today absolutely. Why Global Economy. We are in a synchronized global expansion. 4 gdp for japan when have we seen that they were the highest Second Quarter gdp of any of the g7 Europe Europe the consumer breaking records. All thetime record high retail sales for europe germany, Second Quarter gdp high manufacturing, europe is the big surprise story big contributor to Global Growth the u. S. , retail sales yesterday, knocked the cover off the ball lets get into earnings. Earnings corporate earnings on the s p 500, half the revenue is from overseas thats the canary in the coal mine that says the Global Economy is very good this is what the markets are reacting to. Many investors are getting confuseded between politics and economics. Fundamentals drive markets thats the end of the story. At this point in time, what im seeing in corporate earnings, consumer, manufacturing is investors should be fully invested one thing that tax reform and these things were not necessari necessarily it had to happen for the market look this does seem to lessen the problem. This is great to have these comments we are in the fastest Global Growth rate we dont need tax reform. Mexican peso is up 20 this year were seeing eamericans market, equity returns up double digits. In the United States, were up as much as earnings. This is a strong Global Growth rate equities are following up corporate profits. Were starting with a low Interest Rate level. And earnings are going up. These are the things that are driving markets. Now, if it was entirely dependent on the effectiveness of congress, we wouldnt be here its not just the effectiveness of congress. At this point theyll be bogged down in either we havent mentioned ru e ed russia today r at some point maybe 2018 does loom, maybe some of these guys, you know, are less elections the 2018 is looming we could have some people in the president s own party not going to work as hard. Which sectors, which groups, we were Strong Enough to get through this with all those strong policy expectations for the United States fading. There was enough strength in the World Economy and the United States i think few poem would have belie people would have believed that. There are not going to be risks that are going to occur. This was a meaningful effect on markets last week and into the rebound this week. Its amazing, after that two, threeday pull back, were back to why today . Another 70 points. Youre still hitchhiking at tua at the turnpike. We had a stealth tax cut. Whats the prospect of health regizati regulation zero when you look at the future tax and health regulation, its downwards. You shouldnt have expected tax cuts to go through this quickly, but it will happen tepper said its not overvalued nothing close to 99 thats right. 30 times is not 90 times for nasdaq 100 right back then there were no nasdaq earnings any way right you see Failing Companies underperform steven, doug, thank you both. When we come back, Business Leaders departing President Trump