President Dennis Lockhart live in studio on the cha could that be a clinton coronation . Not if Bernie Sanders has anything to do with it. Hes wrapping up a News Conference just moments ago vowing to stay in the race no matter what the outcome in california. All the while, donald trump fighting off attacks from both parties now over what some say is a massive unforced error. A selfmade campaign blunder about the judge in the Trump University case. Our Political Panel reacts to trumps judgment problem as some are calling it. Former democratic governor of california gray davis along with former republican governor of virginia, george allen, both live on what all of this means. Plus, well tell you exactly where Tropical Storm colin is right now and where its heading. The winking whos twins make a megamove, and charlie is about to break big news on the battle for viacom. Were less than an hour to the closing bell, lets start the countdown. Liz breaking news, the s p and the nasdaq have both hit brand new 2016 highs in Late Afternoon trade following fed chair Janet Yellens economic speech in philadelphia. Just a short time ago. So this is what people wanted to know just how much influence last fridays ugly may jobs report will have during the upcoming fomc meeting. Listen. Although this recent labor Market Report was, on balance, concerning, let me emphasize that one should never attach too much significance to any single monthly report. Liz okay. But either way is a june rate hike now dead on arrival . Atlanta Federal Reserve president Dennis Lockhart in the house. We will ask him, if not june, is the july hike still alive, and was that shockingly weak labor report just a oneoff or a sign the u. S. Economy is about to grind to a halt. Hes with me in just a minute. The market moving on yellen but also on oil which flirted, didnt quite make it to 50 a barrel. That mark . Look, weve crossed that level twice in the last week and a half, but oil settled at 49. 69 as the Energy Stocks are also zooming higher. Were still at 49. 69 right now. The last time crude closed above 50 was last year, july. So coming up on a year. But financials rebounding after fridays jobs report are. Look, on friday it was just an ugly picture, down about 1. 5 for pretty much the big sector there on a stunningly paltry number, but look at banks right now. Theyre one of the Top Performing sectors, jpmorgan,the sanders, whos stepping up his verbal grenades against her. The vermont senator, at 74 years old, has outlasted all. Robert gray is inside hillarys event, waiting on her like we are. What does she need to wring to the speech bring to the speech, robert . Reporter clearly, shes going to be talking to a partisan crowd here, liz. Were in linwood, california, and, you know, basically weve already heard people warming up the crowd here, if you will. Elected officials and others speaking out to this very large immigrant and latino community. Weve heard Donald Trumps name a number of times, references to the wall the crowd here as well. Perhaps some more talk about the judge as well which i know youre going to be talking about in a new moments. Hillary clinton has fewer than 300 delegate lead. Clearly, she needs to inspire the vote, get more people out to vote. And speaking of that, liz, theres a Record Number of voters in california heading into a primary. 17. 9 million signed up in the last six weeks that they were allowed to before this election and 76 of those signed up to be democrats. Have to wait and see whether that favors her or bernie. Liz from california, and im getting a lot of emails i happen to be on the chain with. No matter what the party, people are saying vote, get out there and vote in this primary. Youve got to make your voice heard on this, robert. Thank you so much. Robert gray reporting. Weve got much more on the 2016 race. A couple of our favorite governors from both sides of the aisle. Were turning our attention to the republicans and donald trump on the defensive from even his own party. We have former virginia governor, republican george allen, and former california governor, democrat gray davis. Both with us. 19 minutes away, please dont move. In the meantime, its the markets that are on the move. They behaved dramatically as janet yellen articulated where she sees the economy. You can see from this intraday picture right around 1 p. M. The dow cut its gains in half, but the minute janet yellen mentioned that Interest Rates were still on the table, at least tiny hikes, the markets blasted back to previous levels and then hit session highs. We should also look at crude oil futures, because they had a pullback after yellen spoke, still coming, oh, so close to the 50 a barrel level. Check out some Energy Stocks. Transocean, chesapeake, ensco, those were certainly helped by a move of more than a dollar to the upside. Anywhere from 1113 gains. Make the bank jumps look like nothing. Lets get to the floor show, our traders at the New York Stock Exchange and the cme group have been watching all of this. Scott redler, i guess the question is janet yellen spooked the markets for about 38 seconds, and then the market seemed to be fine with it. I think they wanted to hear she wasnt as dovish as she might be. I think the markets getting comfortable with the thought of maybe one rate hike. So on a friday when the report came out that was so weak, i think the market first had a reflex moved lower and closed okay, and then after she was done speaking and she was kind of not as dovish as people thought, you saw the banks continue to hold their bid, you saw oil be okay, you saw tech still rally, russell was strong, and we took out 21. 05. It rooks as if that 2130 alltime high could happen this week. Liz yeah, i think youre absolutely right. I think people thought she would come in all nervous and, oh, things she said, hey, were still marching toward a rate hike, although she did take out certain words like in the coming months. Phil flynn, to oil. There are a couple of headwinds and tailwinds on this. Oil is up more than 2 in the aftermarket session which surprised me, because iran is pumping oil. The exports are surging by hundreds of thousands of barrels moment but moment. And yet we still see oil climbing. Why . I never thought id say this, liz, but thank goodness they are, because theyre replacing outages other places in the globe right now. Look at whats happening in nigeria today. There was another terrorist attack on a major oil platform. That could reduce nigerias oil exports to a trickle right now, so thats a big issue. Were still beginning to feel the impact from those canadian wildfires. Were going to lose probab couple Million Barrels a day, and thats going to show up in this weeks report. All of that is coming together at the same time. But the other thing, of course, is were looking at Tropical Storm colin. You know, right now its not a threat to oil industry, but youve got to watch this storm. If it turns just a little bit, we may shut down operations in the gulf. Another reason to support oil. Liz you have got to watch that. I would like to say one thing about nigeria, they now have a terrorist team called the avengers. Theyre actually putting on scuba gear and blowing up undersea pipelines near nigeria, underwater. We saw what appeared to be some lakes and rivers, but it is a very touchy situation which leads me to Alan Knuckman at the cme. As we look at these crosscurrents for the markets, where do you see us going . In june normally wed be calming down just a bit, but it still feels moment by moment, very exciting. The dows up 126 right now. Right. Yeah, theres still a lot more upside, you know . If you look at the markets and to summarize for phil, he had a lot of great fundamental information, but it comes down to the u. S. Dollar. The u. S. Dollar decline on friday, because they went from no rate hike possibility to slim hike possibility back to no hike possibility in june, thats really what drives the market, and youre seeing a delayed reaction in oil. Right now i like natural gas. I think that could be a hot, hot market for the summer. Its at the highest levels since january, and youve got to remember natural gas was at 4. 50 just at the end of 2014. But to get back to the macro market, a push above this range and to new highs would be a full v recovery which would target 2400 in the s p which is a healthy number up above. But thats the direction, and thats the measure move target based on what were told. Liz gentlemen, weve got to go on a busy day, thank you so much for making our viewers a lot smarter in this final 40 minutes of trade are. Well, about 50 scott, alan, phil, good to see you. 49 minutes. Please keep an eye on the s p 500. It has hit a seven month intraday on the lower ticker band, you see the 9111 2111, up nearly 13 points. Whole foods getting the barrons bounce, barrons saying the upscale supermarket could see that stock rise in the next year after cutting costs to make its prices oh, we should like this more affordable at whole foods . Up two and twothirds percent. Up next, fridays may jobs report did nothing to inspire conferred in the american economy, but did the grim numbers put off a fed rate hike for the entire summer or just a month . Atlanta Federal Reserve president Dennis Lockhart in the green room. Hes here on exactly what he thinks the fed should do next, youve got to hear what he has to say. Countdown coming right back. This just got interesting. Why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card one development that could shift Investor Sentiment is the upcoming referendum in the united kingdom. A u. K. Vote to exit the European Union could have significant economic repercussions. Liz thats Federal Reserve chair janet yellen earlier this afternoon outlining a bunch of issues, but there you see her talking about the one unfolding very soon from now. Global uncertainty from the british, perhaps, exit from the European Union and how this could affect u. S. Markets and your money. How will those types of Global Developments but also fridays ugly jobs report influence the fed on june 14th and 15th when the socalled decision may come down for a rate hike . Joining me now, Federal Reserve bank of atlanta president Dennis Lockhart. Great to have you in studio. Thank you, liz. Liz just, i want to say less than 20 days ago you said that things started to look pretty good, and if they continued, were on track for a june rate hike. Well, i didnt exactly say that, but i said something close. Liz youd entertain the policy move in june. Exactly. Liz has that all but vaporized for june . Well, i can only speak for myself. I dont know how my colleagues are going to process this, but the weak jobs report that, importantly, had revisions from the previous months, plus the too close to call brexit situation, if i look at those two things, i think the scales tilt in the direction of being patient. Liz so let me push it to july. Is july on life support, or is it a better possibility that once we see sort of that volatility in the wake of what may be a dramatic vote in britain to exit from the European Union, and then that calms down and dies down, could we see july . Well, that global risk associated with brexit will be clarified. Now, if they vote to leave, there will be uncertainty as to how its going to unfold. Its a multiyear process. But at least the immediate decision will be clarified. And well know a little bit more about the u. S. Economy. Well perhaps have the ability to interpret fridays jobs report with a little bit more sense of whether its just an interlude or whether its something more serious. Liz was that an anomaly . 38,000 jobs seems very paltry, very tiny compared to what we had been seeing, 162,000 here, there, even with the verizon strike. It looked very bad. So do you think thats just a oneoff . I really, this may be a little early for me to say because i would like to see what subsequent ed looks like liz whats your gut though . I think there are two or three ways we can interpret it. The first is theres a slowdown occurring in the u. S. Economy. I dont buy that view, so i dont interpret the jobs report as signaling a slowdown. Liz okay, thats news. You do not buy the slowdown even further from what were seeing at the moment. Im still believing that the economy is chugging along at using round numbers about a 2 annualized gdp growth rate. Liz is that enough . I have to ask you, you probably leave a lot of these interviews thinking why didnt they ask me about this or that. What really was at the forefront of your mind that you feel our viewers, right now or who are watching, should really be thinking about 2 growth . Well, 2 as opposed to what . Is it liz 5 . Wed love 3. Is it possible we could have 3 growth . The difference between 2 and 3 growth could be very, very significant for many things we care about in our society, for infrastructure, for entitlements that are going to take care of me and others as we get older, for education. We have a lot of Serious Problems that 3 growth can help liz how come we cant get just 1 more . What is standing in the way . Weve had a history over the last several years of various headwinds and various drags. Some of those are just episodic, they come and go, but there are some fundamentals at work as well. Let me just point out one demographics. We have an aging population. Were going to have more and more people going into retirement. More and more people who, in effect, are being carried by the working population. And and demographics are unrelenting. We know quite specifically what the demographic situation is, and you can predict, i think with reasonable accuracy, what that mix of workers and nonworkers is going to look like. Liz dang millennials. [laughter] its very hard, its very hard liz we love our millennial viewers. Its very hard to grow at a really robust rate if your work force is very flat. Liz the election. Obviously, janet yellen would not even did you see that when she was asked about donald trump, and there are people who believe we might see a market crash if hes elected . She said i got nothing for you on that. Those were her exact words on that. But the election does tend to ramp up rhetoric, and its not this election. Weve seen in the past where we had representative ron paul saying the fed should be audited. Donald trump has tweeted out he really believes the Federal Reserve should be audited. There are a lot of smart people who dont think thats the case. Where do you stand on the fed being audited . Would it bother you . Well, first of all, the fed is audited in a number of different ways. In any given year there are, you know, two or three dozen audits going on. My bank is audited, every reserve bank is audited, the board of governors is audited, there are various studies done by the gao. The expression audit the fed means really one thing, and that is to look after the fact, after our policy decisions at Monetary Policy decisions of the to federal open Market Committee of the federal open Market Committee. That would undermine, in my opinion, the independence of the fed in formulating Monetary Policy. Independent Central Banks are, globally thats a standard that Capital Markets rely on for good sense and economic policy. I think it would be a slippery slope to politicize Monetary Policy by audit the fed idea. Liz yeah. They dont like when the irs audits them, but they say audit the fed. Thank you so much for joining us. My pleasure. Thank you. Liz Dennis Lockhart, president of the atlanta fed. Be sure to watch todays claman confidential, lizclaman. Com, for an exclusive look on how mr. Lockhart sees the china slowdown. Please, check that out. Closing bell, 37 minutes away. The dow is Still Holding onto gains of about 129 points. Up next, florida in a state of emergency right now as Tropical Storm colin heads straight for the gulf coast, bringing with it high winds, flooding and possibly even tornadoes. Its latest path straight ahead. And remember the hoodie ceo . Yeah, i gave him that name. Back in court today to face more charges. Adam shapiro is there in Brooklyn Court with a live report on what the vilified pharmaceutical ceo Martin Shkreli is accused now of doing. Countdown coming right back. 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